Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2016
(Based on Japanese GAAP)
November 11, 2016
Company name:Temp Holdings Co., Ltd.
Stock exchange listing: Tokyo
Stock code:2181
URL http://www.temp-holdings.co.jp
President, Chief Executive Officer, andRepresentative:
Masamichi Mizuta
Representative DirectorExecutive Vice President, Chief FinancialInquiries:
Kiyoshi SekiOfficer, and Director
Scheduled date to file Quarterly Securities Report:
November 14, 2016
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

December 5, 2016
Yes

Holding of quarterly financial results meeting:

Yes

TEL

03-3375-2220(for analysts and institutional investors)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2016 (from April 1, 2016 to September 30, 2016)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2016
Six months ended September 30, 2015
Note: Comprehensive income

Millions of yen
276,790
246,106

Percentages indicate year-on-year changes
Profit attributable toOperating income
Ordinary income
owners of parent% Millions of yen% Millions of yen% Millions of yen%
12.5
16,66025.3
16,945
26.9
9,865
21.7
28.0
13,29829.9
13,355
28.1
8,104
41.4

Six months ended September 30, 2016
Six months ended September 30, 2015

¥8,974 million [9.8%]¥8,170 million [62.6%]

Earnings per share

Diluted earnings per share

Yen
42.05
36.10

Six months ended September 30, 2016
Six months ended September 30, 2015

Yen
41.91
34.43

Note: The Company conducted a stock split at a ratio of 1:3 of common shares on October 29, 2015. Earnings per share and diluted earnings per
share have been calculated on the basis that the stock split had been effective at the beginning of the year ended March 31, 2016.
(2) Consolidated financial position
Total assets
As of September 30, 2016
As of March 31, 2016
Reference: Equity

As of September 30, 2016
As of March 31, 2016

Net assets

Millions of yen
256,333
236,238

Millions of yen
147,765
133,501¥134,300 million¥127,205 million

1Equity ratio
%
52.4
53.8

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
18.00
8.00

Yen–

Yen
7.00

Yen
25.00

–

8.00

16.00

Year ended March 31, 2016
Year ending March 31, 2017
Year ending March 31, 2017 (Forecast)

Total

Note: Revision of cash dividend forecast most recently announced: YesNotes:(1) The Company conducted a stock split at a ratio of 1:3 of common shares on October 29, 2015. Year-end dividends for the year ended March31, 2016 is provided after taking into consideration of the above stock split.
(2) If the above stock split is not considered, year-end dividends and total of dividends for the year ended March 31, 2016 is 21 yen and 39 yen
respectively.
3. Forecast of consolidated financial results for the year ending March 31, 2017 (from April 1, 2016 to March 31, 2017)
Net sales
Full year

Millions of yen
590,000Percentages indicate year-on-year changes
Profit attributable toEarnings per share
Operating income
Ordinary income
owners of parent% Millions of yen% Millions of yen% Millions of yen%Yen
14.0
32,50015.9
32,80016.4
20,10015.8
85.67

Note: Revision of consolidated financial results forecast most recently announced: Yes
4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2016(changes in specified subsidiaries resulting in the change in scope of consolidation):
Newly included: 1 company

Yes

Kelly Services (Singapore) Pte. Ltd.
Excluded: –(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2016

236,376,605 shares As of March 31, 2016

235,791,100 shares

Number of treasury shares at the end of the period
As of September 30, 2016

1,289,232 shares As of March 31, 2016

1,288,875 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2016

234,607,754 shares Six months ended September 30, 2015

224,496,119 shares

Note: The Company conducted a stock split at a ratio of 1:3 of common shares on October 29, 2015. Number of issued shares (common shares)
has been calculated on the basis that the stock split had been effective at the beginning of the year ended March 31, 2016.
* Implementation status of quarterly review proceduresThis quarterly financial results report is exempt from the quarterly review procedures in accordance with the Financial Instruments andExchange Act. At the time of disclosure of this quarterly financial results report, the review procedures for consolidated financial statements inaccordance with the Financial Instruments and Exchange Act have not been completed.
* Proper use of earnings forecasts, and other special matters
The above forecasts of consolidated financial results are based on information currently available to the Company and on certain assumptions
deemed to be reasonable. However, the Company makes no guarantee that these forecasts will be achieved. Consequently, actual business andother results may differ substantially due to various factors.

2

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2016

As of September 30, 2016

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade51,227
69,52465,29173,178Deferred tax assets
Other

3,987
6,006

4,191
6,762

Allowance for doubtful accounts

(134)

(435)

130,611

148,988

2,106

2,249

1,123
803

1,298
803

476

322

4,510

4,673

Trademark right
Goodwill

10,11070,302

9,522
71,084

Other

5,774

7,638

Total intangible assets

86,187

88,245Investment securities
Guarantee deposits

7,228
5,597

6,706
5,649

Deferred tax assets
Other

1,534
716

1,559
657

Allowance for doubtful accounts

(146)

(146)

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, netTools, furniture and fixtures, netLand
Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Total investments and other assets
Total non-current assets
Total assets

3

14,92914,426105,627

107,345236,238

256,333

(Millions of yen)
As of March 31, 2016

As of September 30, 2016

Liabilities
Current liabilities
Accounts payable - trade

902

1,379

Short-term loans payable
Current portion of long-term loans payable

787
4,640

538
4,640

Accounts payable - other
Income taxes payable

33,152
5,321

42,358
7,326

Accrued consumption taxes
Provision for bonuses

7,664
8,242

7,431
8,347

Provision for directors' bonuses
Other

139
6,632

74
5,521

Total current liabilities

67,482

77,619Non-current liabilities
Convertible bond-type bonds with subscription rights toshares
Long-term loans payable

851

307

24,99322,738Deferred tax liabilities
Net defined benefit liability

3,638
2,657

3,326
1,054

Long-term accounts payable - other
Other

3,017
97

3,382
140

Total non-current liabilities

35,25530,948102,737

108,568

Shareholders' equity
Capital stock

17,055

17,327

Capital surplus
Retained earnings

20,52088,13420,01996,358

Total liabilities
Net assets

Treasury shares
Total shareholders' equity

(327)

(328)

125,382

133,376

1,945
72

1,515
(590)

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

(194)

–

Total accumulated other comprehensive income

1,823

924

Non-controlling interests
Total net assetsTotal liabilities and net assets

46,295

13,464

133,501

147,765

236,238

256,333

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

September 30, 2015

September 30, 2016

Net sales
Cost of sales

246,106
187,900

276,790
208,786

Gross profit

58,20668,003

Selling, general and administrative expenses

44,90851,342

Operating income

13,298

16,660Interest income
Dividend income

849

456

Subsidy income
Compensation income35–

101
55

Share of profit of entities accounted for using equity method
Gain on bad debts recovered–
78

56
–

Non-operating income

Other

80

117

Total non-operating income

252

392

Interest expenses
Share of loss of entities accounted for using equity method

70
60

66
–

Foreign exchange losses
Other

31
32

24
16

Total non-operating expenses

195

107

13,355

16,945Gain on sales of shares of subsidiaries and associates
Gain on transfer of business

30
157

–
–

Gain on revision of retirement benefit plan

460

187

Total extraordinary income

648

187

24–

–422Early extra retirement payments–207

Total extraordinary losses

24629

Profit before income taxes

13,97916,503

Income taxes - current

4,708

6,437

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary losses
Loss on sales of shares of subsidiaries and associates
Impairment loss

Income taxes - deferred

625

(403)

Total income taxes

5,334

6,033

Profit8,644

10,469

539

604

8,104

9,865

Profit attributable to non-controlling interests
Profit attributable to owners of parent5Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2015

September 30, 2016

8,644

10,469Valuation difference on available-for-sale securities
Foreign currency translation adjustment(495)
20(431)(1,257)

Remeasurements of defined benefit plans, net of tax

0194

(474)

(1,494)Comprehensive income

Total other comprehensive income

8,170

8,974

Comprehensive income attributable toComprehensive income attributable to owners of parent

7,601

8,486

568488Comprehensive income attributable to non-controllinginterests6Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

September 30, 2015

September 30, 2016

13,97916,503

Depreciation
Impairment loss

1,419–

1,965
422

Amortization of goodwill
Increase (decrease) in net defined benefit liability

2,519(1,621)

2,943(1,419)

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses

99(49)(143)(64)

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income

(236)
(57)

5(61)

7066

60(56)

Interest expenses
Share of (profit) loss of entities accounted for using equity
methodLoss (gain) on sales of shares of subsidiaries and associates(5)–

Loss (gain) on transfer of businessSubsidy income

(157)
(35)

–
(101)

Compensation income
Decrease (increase) in notes and accounts receivable - trade

–
4,376

(55)
2,643

Decrease (increase) in inventories
Increase (decrease) in operating debt

(1,486)(2,827)(1,405)
4,565

Increase (decrease) in accrued consumption taxes
Increase (decrease) in long-term accounts payable - other(10,913)
1,322(691)364

Decrease (increase) in other assets
Increase (decrease) in other liabilities

(401)
(249)

466
98

Subtotal

5,802

26,045Interest and dividend income received
Interest expenses paid

66
(68)

71
(65)

Proceeds from subsidy income
Proceeds from subsidy income

131
35–
101

Proceeds from compensation
Income taxes paid–
(6,189)55(4,892)

Income taxes refund

1,500

1,267

Net cash provided by (used in) operating activities

1,279

22,584

7

(Millions of yen)

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Payments for sales of shares of subsidiaries resulting inchange in scope of consolidation
Payments for transfer of businessSix months ended

Six months ended

September 30, 2015

September 30, 2016
(144)

(1)

286
(790)

–(649)(1,165)(309)(2,943)(89)

3–(2,621)

(391)

54

–

(10)

–

–

(13)

Proceeds from transfer of businessCollection of loans receivable

157
4–
10

Payments for guarantee deposits
Proceeds from collection of guarantee deposits

(634)
228

(139)
192

Other, net
Net cash provided by (used in) investing activities

121

103

(4,821)(3,921)(23)(2,320)(172)(2,320)

60

–

(260)

–

Cash flows from financing activities
Decrease in short-term loans payable
Repayments of long-term loans payable
Proceeds from share issuance to non-controlling shareholders
Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation
Purchase of treasury shares

(8)

(0)

(1,316)(19)(1,641)
(118)

(56)

(36)

Net cash provided by (used in) financing activities(3,943)(4,288)

Effect of exchange rate change on cash and cash equivalents

16(305)

Net increase (decrease) in cash and cash equivalents(7,469)14,069Cash and cash equivalents at beginning of period

60,205

51,138Cash and cash equivalents at end of period

52,736

65,208Cash dividends paid
Dividends paid to non-controlling interests
Other, net8