IR Presentation Material ：Briefing on Consolidated Financial Results
for the Fiscal Year Ended March 31, 2017
Temp Holdings Co. Ltd.
May 18, 2017

Copyright © since 2016 Temp Holdings Co. Ltd. All Rights Reserved.

Contents

Part.1 :Financial Highlights on Financial Results
for the Fiscal Year Ended March 31,2017Part.2 :Progress of
Mid-term Management Strategy

Part.3 :Forecast for the Fiscal YearEnding March 31, 2018

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1

Part.1 :Financial Highlights on Financial Results
for the Fiscal Year Ended March 31,2017

Copyright © since 2016 Temp Holdings Co. Ltd. All Rights Reserved.

2017/3 : Summary of Consolidated Business Results(Unit: billion yen)

Achieved the highest results for 5 years in a row,
due to steady growth of the existing businesses and M&A+14.4%+19.3%+19.1%
591.9

+2.7%

517.5
36.4

43.4
28.0

33.4
17.3

Sales

EBITDAOP income

17.8

Profit attributable toowners of parent

2016/3 Full Year2017/3 Full Year

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2017/3 : Sales Analysis(Unit: billion yen)Contribution from the M&A,
in addition to increase in the revenues from the existing businesses-3.0+32.5+1.9+2.5+4.3+2.6+33.2

591.9

517.5

2016/3Full Year

Organic growth+44.8
Temporary
Staffing・BPO

ITOEngineering Recruiting

M&A+32.5
Otherbusinesses

M&A

Adjustment

2017/3Full Year

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2017/3 : EBITDA Analysis(Unit: billion yen)

Increase in EBITDA from the existing businesses+0+0.1+0.4+0.6-0.4+2.5+3.6
43.4
36.4

2016/3Full Year

Organic growth+6.8
Temporary
Staffing・BPO

ITOEngineering Recruiting

M&A+0.6
Otherbusinesses

M&A

Adjustment

2017/3Full Year

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2017/3 : OP income Analysis(Unit: billion yen)

Increase in OP income from the existing businesses+0+0.2

+0.4

-0.4

-0.5

+2.1

+3.4
33.4

28.0

2016/3Full Year

Organic growth+6.3
Temporary
Staffing・
BPO

ITO

Engineering Recruiting

M&A-0.4
Otherbusinesses

M&A

Adjustment

2017/3Full Year

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6

2017/3 : Consolidated Balance Sheets
As ofMarch 31,2016
Results(Unit: billion yen)

As ofMarch 31,2017
Results

Change

236.2

268.3

32.1

Current assets

130.6

165.2

34.6

Non-current assets

105.6

103.1

-2.5

Asset

102.7

114.5

11.8

Current liabilities

67.4

87.9

20.4

Non-current liabilities

35.2

26.6

-8.6

133.5

153.8

20.3

127.2

139.1

11.9

6.2

14.6

8.4

Liabilities

Net assets
Owner’s capital

Minority interests＜Current assets＞

Increase in cash and deposit,
due to an increase in profit＜Current liabilities＞

Increase in account payable,
unpaid corporation tax etc.

＜Non-current liabilities ＞
Decrease in long-term loanspayable＜Owner’s capital＞

Increase due to an increase inprofit
Decrease due to the purchaseof treasury shares＜Minority interests＞
Increase due to M&A

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2017/3 : Consolidated Statements of Cash Flows(Unit: billion yen)
2016/3Full Year
Results
Cash flows fromoperating activities

13.2

Cash flows frominvesting activities-15.0

2017/3Full Year
Results

39.6＜Increase (decrease) in
operating debt＞

Change26.3∟ 2016/3： 2.3∟ 2017/3： 13.3
＜Increase (decrease) in
accrued consumption taxes ＞∟ 2016/3： -9.4
∟ 2017/3： 1.3

-9.7

5.3

＜Purchase of investments in
subsidiaries＞∟ 2016/3： -10.4∟ 2017/3： -2.5

Cash flows fromfinancing activities

-7.2

-11.6

-4.4

＜Purchase of treasury shares＞∟ 2016/3： -0.01∟ 2017/3： -3.0

Increase (decrease)in cash and cash
Equivalents

-9.0

18.2

27.3

Cash and cash
equivalents
at end of period

51.1

69.3

18.2
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8

Dividend Policy
Stable dividend payment will be continued according to the progress of businessresults, while enhancing our business structure to be able to expand businessin growth areas swiftly and aggressively.

2016/3

Dividendper ShareDividend Ratio（Consolidated）

2017/3

InterimYear-end

InterimYear-end

6 yen*

7 yen

8 yen

9 yen

17.2％

22.4%

（※）Temp Holdings conducted the 3-for-1 stock split for the common stock of the company
in 29th Oct. 2015. Figures have been applied retrospectively to the Stock Split.
Copyright © since 2016 Temp Holdings Co. Ltd. All Rights Reserved.

9Part.2 :Progress of Mid-term Management Strategy

Copyright © since 2016 Temp Holdings Co. Ltd. All Rights Reserved.

Outline of Mid-term Management Strategy
We set 5 strategies for our Mid-term Management Strategy

Strategy 1

Enhancing Awareness of the PERSOL Group

Strategy 2

Investing in IT Systems and Enhancing Productivity for
Further Business Growth

Strategy 3

Creating Group Synergies and Promoting GroupManagement

Strategy 4

Enhancing Our Presence in the Asia-Pacific Region

Strategy 5

Strengthening Business Platform and Expanding
Service Domains through M&A
Copyright © since 2016 Temp Holdings Co. Ltd. All Rights Reserved.

11Strategy 1：Enhancing Awareness of the PERSOL Group
Expanding our group awareness by trade name change for eachcompany with “PERSOL”
Holding company
PERSOL HOLDINGS CO., LTD.

July, 2017～（tentative）

Group company
Temporary
Staffing/BPO

Recruiting

ITO

Engineering

Tempstaff Co., LtdIntelligence, Ltd.

Intelligence Business
Solutions, Ltd.

Japan Tecseed Co. Ltd.
DRD Co,. Ltd.

PERSOL TEMPSTAFF
CO., LTD.

PERSOL CAREER
CO., LTDPERSOL PROCESS &TECHNOLOGY CO., LTD.

July 2017～

July 2017～

July 2017～PERSOL RESEARCH &DEVELOPMENT CO., LTD.
April 2017～※We are planning to change Holdings name under the assumption that it will be approved at General Meeting of Shareholders
Copyright © since 2016 Temp Holdings Co. Ltd. All Rights Reserved.
※We will continuously use “Tempstaff”,”DODA”,”an” for our service brands

12Strategy 1：Enhancing Awareness of the PERSOL Group
Aiming to create group synergies through expanding groupawareness , we started large scale advertisement on MarchTV advertisement
Vol1：March 25~
Vol2：April 22~

Newspaper adOn Nikkei newspaper
published on April
3rdOutdoor/Transit ad
Tokyo, Osaka,Sapporo, Sendai（Total 63 media）

https://www.persol-group.co.jp/special/iconicworkers/index.html

Special WEB site
Opened on March 24Copyright © since 2016 Temp Holdings Co. Ltd. All Rights Reserved.

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Strategy 2：Investing in IT Systems and Enhancing Productivity
for Further Business Growth
Aiming to enhance productivity through system investment
Invest in core system of existing main business• Invest in core system of Temporary Staffing/Recruiting business└Enhancing quality and speed for matching results in higher productivity

Productivity improvement for back office• Invest on data center(reinforce the foundations for the increaseand effective use of information)• Integration of human affairs and accounting related system• Integration of group communication tool by introducing Office 365• Reinforcement of information security
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Strategy 3：Creating Group Synergies and Promoting GroupManagement
Aiming to provide various solutions beyond the existing businessarea by utilizing group asset
Case1：Expanding placementbusiness nationwide

Case2：Solving client’s recruiting
problem with group total power××We succeed in supporting customer’s
career change all over japan bycombining placement business ofIntelligence with Temp staff’s
nationwide branches.

Providing a total support for part timeworkers recruitment in SKYLARK CO., LTD.
with our group services such as“an”, ”LINE-Baito”, ”HITO-Manager”, andcustomer support center※an, LINE-Baito ＝advertising business for part time worker)※HITO-Manager ＝recruiting management system

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Strategy 4：Enhancing Our Presence in the Asia-Pacific Region
Due to the growing importance in our business, we separate oversea business from 2018/3
We will invest in workforce, system, and organization this year
2018/3～
5 segments

2017/3
4 segments

1

Temporary
Staffing/BPO

2

12
ITO

33Engineering

44
Recruiting

Sales Forecasts(billion yen)Temporary
Staffing/BPO

485.4

Recruiting

78.1

Overseas

63.1

ITO

29.4

Engineering

28.1(Overseas)

5

Current events
By expanding business scope, we
aim to be a global humanresources company＋
Future plan
We will invest in each area forfuture growth・ Invest in workforce and system
・ Improve productivity byintegrating organization andsystem
etc
Copyright © since 2016 Temp Holdings Co. Ltd. All Rights Reserved.

16Topic：Corporate governance（recent events）
Aiming at transparent and sound management structure, we willcontinuously enhance our corporate governanceOct 2008 : Establishment of Temp Holdings Co., Ltd.
Jun 2016 : Transition to the form of“Company with an Audit & Supervisory Committee”
By separating the role of execution and supervision, we are aiming at further soundmanagement structure.
Accordingly, 10 directors (including 4 directors on the Audit & Supervisory Committee) and4 outside directors (including 3 directors on the Audit & Supervisory Committee) wereassigned.

Feb 2017 : Establishment of Nomination and Remuneration Committee

To ensure greater objectivity and transparency, thereby further enhancing ourcorporate governance platform.
To be discussed laterMay 2017 : Decided to introduce Stock compensation plan
at a Board of Directors meeting
To enhance our enterprise value with long-term perspectives and have thesame point of view with shareholders
To be discussed later
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17

Topic：Corporate governance（details）
Established voluntary committee to ensure greater objectivity andtransparency

NominationandRemuneration
Committee（Feb 2017~）＜Objective＞
To ensure greater objectivity and transparency, thereby further
enhancing our corporate governance platform＜Role＞
Deliberate and provide the board with advice andrecommendations regarding of nomination and remuneration＜Member＞
2 internal directors, 3 outside directors (including the chair)Stockcompensationplan（May 2017~）＜Objective＞
To enhance enterprise value with long-term perspectives andhave the same point of view with shareholders＜Outline＞Introduce Stock compensation plan for executives based on
the goal attainment of Mid-term Management Strategy etc.

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18

Topic：Corporate governance（board members）
Reason for election
Masamichi Mizuta
President,
Chief Executive Officer

Hirotoshi Takahashi
Deputy President,
Chief Operating Officer• Abundant experiencesin US and other regions
Takao Wada•
Expect for opinion andSenior Executive Vice President
advice for our oversea
Director Temporary Staffing/business
BPO SegmentCareerNEWToshihiro Ozawa
Executive Vice PresidentChief Information Officer

Kiyoshi Seki
Executive Vice President
Chief Financial Officer

Peter W. Quigley
External Director
Kelly Services
executive vice president• ＜Nov 2002＞
Joined Kelly Services asa key member of seniorleadership team
• ＜May 2017＞
President and chief
executive officer ofKelly Services(currentposition）

Hiroshi Shimazaki
Director

Ryosuke Tamakoshi
External Director

Naoshige Shindo
External Director

Naohiro Nishiguchi
External Director(Member of Auditand Supervisory Committee)(Member of Auditand Supervisory Committee)(Member of Auditand Supervisory Committee)(Member of Auditand Supervisory Committee)

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19

Financial Target
To achieve mid-term financial target, we will expand our businessscope continuously(Unit: billion yen)
Sales

750.0

677.3

591.9
43.4

2017/3

Assumption

47.1

33.4

36.0

2018/3 (Forecast)～EBITDA OP income

60.0

45.0

2020/3 (Target)

GDP growth
ratio

Moderate Growth (around +0.0~1.0%)

Effective opening
to application ratio

Continuing strong demand based on economic growthand structural demand (around 1.0~1.2)
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20

Part.3 :Forecast for the Fiscal YearEnding March 31, 2018

Copyright © since 2016 Temp Holdings Co. Ltd. All Rights Reserved.

2018/3 Action plan

Trade name change/
Expansion of group brand awareness
Investment in existing business
Creating Group Synergies
Continuous investment in oversea
business
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22

2018/3 Consolidated forecasts of Results(Unit: billion yen)

2017/3 Results
Full year

2018/3 Forecasts

Ratio (%)

Full year

Ratio (%)

YoY (%)

Sales591.9100.0677.3

100.0＋14.4

EBITDA

43.4

7.3

47.1

7.0+8.5

OP income

33.4

5.6

36.0

5.3+7.8

Profitattributable toowners of parent

17.8

3.0

22.2

3.3+24.6

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23

Appendix

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Appendix： 2018/3 Consolidated forecasts of Results：Sales by Segment(Unit: billion yen)

2017/3 Results
Full year
Temporary
Staffing/BPO

2018/3 Forecasts

Ratio (%)

Full year

Ratio (%)

YoY (%)

440.674.4485.4

71.7+10.1

Recruiting

66.1

11.2

78.1

11.5+18.1

Overseas

37.1

6.3

63.1

9.3

+70.0

ITO

26.6

4.5

29.4

4.3+10.3

Engineering

26.6

4.5

28.1

4.1+5.4

591.9

100.0

677.3

100.0+14.4

TOTAL

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25

Appendix： 2018/3 Consolidated forecasts of Results：EBITDA by Segment(Unit: billion yen)

2017/3 Results
Full year

2018/3 Forecasts

Ratio (%)

Full year

Ratio (%)

YoY (%)

Temporary
Staffing/BPO

23.8

54.8

26.2

55.8

＋10.4Recruiting

13.1

30.4

13.1

27.8

-0.7

Overseas

0.3

0.7

0.9

2.1＋202.3

ITO

2.7

6.3

2.9

6.4＋8.9

Engineering

2.5

5.8

2.8

6.1＋13.0

43.4

100.0

47.1

100.0＋8.5

TOTAL

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26

Appendix： 2018/3 Consolidated forecasts of Results：OP Income by Segment(Unit: billion yen)

2017/3 Results
Full year
Temporary
Staffing/BPO

2018/3 Forecasts

Ratio (%)

Full year

Ratio (%)

YoY (%)

20.7

62.1

22.7

63.1

＋9.4

Recruiting

9.3

28.0

9.526.4＋1.5

Overseas-0.8-2.6-0.6-1.7-ITO

2.0

6.3

2.4

6.7

＋14.5

Engineering

1.9

5.9

2.2

6.1

＋11.2

33.4

100.0

36.0

100.0

＋7.8

TOTAL

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27

Appendix：Supporting various work-style
Aiming to become a partner in each of our client’s growth byproviding various work-style

Women's labormarketparticipation

Start “Job Share Center”
to support people with child care or nursing
where one can work near home

Effective use ofthe elderly
labor resourcesUtilize the elderly’s knowledge
to support small‐to‐medium‐sized enterprisethrough ”i-common”

Careerdevelopment
supportSupport career development withpermanent recruitment service ”funtable”
which we hire permanent staff
and dispatch to client’s company
then encourage direct recruitment
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28

In 2025, Japan will suffer from a shortage ofabout 5.83
million workers.
Supply-demand gap in 2025 (by industry, million workers)
ShortSurplus

IT Services

Wholesaleand retail

Agriculture
and forestry

Transport

BuildingFinance,
Real EstatePublicUtilities

Manufacturing

Government

-4.82

-1.88

-0.57

-0.49

-0.39

-0.31

-0.02

+0.19

+2.45

Source : PERSOL RESEARCH AND CONSULTING CO., LTD.
http://hito-ri.inte.co.jp/roudou2025/

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29

4 solutions for the labor shortage

promoting the employmentof womenpromoting the employmentof elderly people

Improve productivityof workers

promoting the employmentof foreign people

Source : PERSOL RESEARCH AND CONSULTING CO., LTD.
http://hito-ri.inte.co.jp/roudou2025/

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30

Corporate Philosophy, Group Vision＜Corporate Philosophy＞

Job creation, Individual growth, Contributing to Society＜Group Vision＞
Create social infrastructure for people and organizationthat catalyze growth and innovation

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31

Job to applicants ratio
Job to applicants ratio (= number of positions ÷ number of applicants) is an indicator of thedemand for human resources. Basically correlated with the economy.
400

2.00

(10 thousands)

350

1.75

300

1.50250

1.25

200

1.00

150

0.75

1000.50

50

Japanese asset
bubble collapsed

Oil crisis
01970

1975

1980

1985

Number of positions (left axis)

Source : Ministry of Health, Labour and Welfare

1990

1995

Number of appricants (left axis)

0.25

Bankruptcy ofLehman Brothers
2000

2005

2010

Job to appricant ratio (right axis)

0.00
2015(Year)

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32

“Labor shortage” by decreasing population
Working age population（aged 15~64）: 77,080 thousand of person,decreasing since 1997. Labor shortage will be more serious.
Trends and future prediction of population composition(10 thousand person )14,000Future prediction
12,00010,000~15 years old

65 years old~

8,000

6,000

4,000

15~64 years old（Working aged population）

2,00001950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060
(year)
Source : National Institute of Population and Social Security Research
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33

To solve the structural problem
We have to improve productivity of the existing labor force, and promote Quantitative increasedue to the labor market participation of non-labor force, to achieve economic growth.
Population aged 15 years old and over（2016 ave）
Executive of company or corporation,
self-employed worker 1,068

Labor force
6,648
Population
aged 15 years
old and over
11,078

Employed
personRegular employee
3,355

6,440
Part-time worker

1,398

Improving productivity
ofthe existing labor force
Dispatched worker from temporary
labor agency 133
Contract and Entrusted employee 486
Unemployed person 208

Attending School 677
Non Laborforce
4,423House keeping 1,524Improving the labor
participation rate

Others 2,281

Source : Statistics Bureau, Ministry of internal Affairs and Communicaitions（December 2015, 10 thousand of persons)
34
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Change in Society
Society is changing significantly in all aspects;
the labor market is becoming more and more important.

Globalization

Evolution oftechnology

Revisions/changes
in laws andregulations

Changes in thevalues for “work”

Widening Labor
mismatch

The extension ofthe retirement age

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35Topic４：Expand JV with Kelly Services in APAC
We will continue to provide our global clients with seamless, cross border HR
solutions in Asia Pacific with the goal of becoming the most trusted talentmanagement brand in the region.
Candidates

Talent Supply-chain
management

Clientcooperate

RPO,CWO,BPO
Consulting etc.

CEO,CFO,Management

Executive
SearchPlacement

GlobalCompany

SeniorMiddleTemporary
Staffing
HR Consulting

LocalCompany

JuniorPayroll

TempJapaneseCompany

BPO*For the detailed information, please refer to the Press Release of TS Kelly ASIA Pacific.
https://www.tempstaff.co.jp/english/corporate/pdf/20160408_01.pdf

Copyright © since 2016 Temp Holdings Co. Ltd. All Rights Reserved.

36Disclaimer•

The statements concerning the Company’s future businessperformances in this material such as earnings forecasts are
based on information available as of May 18, 2017 andcertain assumptions deemed to be reasonable by theCompany, and do not mean that we promise to achievethese figures. Actual earnings may differ materially from thestatements due to a variety of factors.

•This briefing is only for better understanding. Please notethat numbers and indexes in this book are not audited.

August 2014 : Temp Holdings was added to the JPX Nikkei Index 400
What is the JPX
Nikkei 400？

It is a new stock price index that consists of companies that meet various requirements for global
investment, such as the efficient use of capital and a management perspective that is conscious ofinvestors, for the purpose of boosting the appeal of Japanese companies domestically andinternationally.

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37