To Shareholders and Investors

TEMP REPORTBusiness report for the first sixmonth period of the fiscal year
ending March 2016
April 1, 2015 to September 30, 2015

Temp Holdings Co., Ltd.
(Securities code: 2181)

Message from Management
Overview of the first six-month period of FY 2015

Create social
infrastructure forpeople andorganizasion thatcatalyze growthand innovation.

On the other hand, in the media division, we announced a partial
suspension of publication of the popular free-paper version of an, apart-time job opening information magazine that had been in circulation
for a long time, to consolidate it into a web version mainly in the Tokyo
Metropolitan area. By integrating the various media with the Internet, we
will improve our information provision system to better meet users’ needs
that change over time.

The Japanese economy continued to show a recovery trend, with demandfor Human Resource services becoming increasingly vigorous. Favored by
the robust economy, we endeavored to implement various forms ofbusiness, and consequently, net sales and operating income for the firstsix-month period of the fiscal year under review were 246.1 billion yen and13.2 billion yen, respectively. This result represents a record-highperformance since the foundation of our Group.
Progress of the Mid-term Management Strategy
We believe that this extraordinary business result is mainly attributable
The three-year Mid-term Management Strategy that started in theto our earnest efforts to satisfy the needs of our customer companies andprevious fiscal year has demonstrated steady progress, thanks to the tailusers of our services in the temporary staffing and recruitment support
wind of the market and the M&As we implemented. Among others, net
businesses, amid growing sentiment of labor shortage in some areas andsales are expected to achieve the target by the end of the current fiscal
job types. In the Human Resource service business, information is the very
year. Toward the next step forward, we are now putting into practice asource of our competitive edge, and both job seekers and customer
renovation of the Mid-term Management Strategy with the aim of further
companies gather in a place where a volume of attractive information is
improvement of corporate value.
concentrated. Based on such concept, we are certain that our favorable
results are also attributable to the expansion ofscale and the service domain by way of M&A in
Highlights of the six-month period
the Temporary Staffing division, investments inof the consolidated fiscal year ending
March 2016 (FY 2015)
brand and IT in the career-division, and theRecord-high performance on both net sales
enhanced operational system, due to the increase
and operating incomein the number of internal staff members. Toward
Trend of operating
Operatingthe future, we will continue investments for the26
results for the past
Income (forecast)purpose of reinforcing information power while
Net sales
Operating Income
five years
23.4
pursuing further improvement of the service(Billion yen)billion yen
billion yen
quality we offer.
18.5

Financial Highlights

515*(forecast)

Masamichi Mizuta
President and Representative Director
Joined Tempstaff in 1988. Became Head of the Sales Headquarters andDirector in 1995, Head of the East Japan Sales Headquarters andExecutive Managing Director in 2006, Executive Vice President in 2010,and Executive Vice President and Representative Director in 2012. He has
been in charge of the sales division throughout his career. In 2013, heassumed the post of President and Representative Director. He has also
served as Chairman of the Japan Staffing Services Association andCouncil Member of the Health Insurance Society for Temporary Workers.
His motto is “Little Things Make a Big Difference.”Jobcreation

Corporate Philosophy
Individual Contributing
growthto Society

8.1
233.1

9.8

362.4

401

247.2

Y-O-Y

UP 28.0%

13.2
Y-O-Y

UP 29.9%

Net income*Interim dividend
per share

8.1 billion yen

18 yenY-O-Y

Net sales
FY 2011246.1

UP 41.4%

FY 2012FY 2013

FY 2014

FY 2015(forecast)* “Net income” represents “Net income attributable tothe shareholders of the parent company.”* On November 6, 2015, the Company made an upward revision to the full-year forecast. The revised figures are shown in the chart above.

1

TEMP REPORTTEMP REPORT

2

Message from Management

The Mid-term Management Strategy
continued to proceed steadily.

Announced two M&As of overseas
companies for the expansion of
ASEAN markets

Operating income

Net sales

Steadily grew despite investments
for future growth

Expected to achieve the target
one year ahead of schedule(Billion yen)(Billion yen)

515*

26

30

(forecast)

23.4
20

Target18.5

Target500

30billion yen

500billion yen

401
400

First
six-month
period(forecast)

362.4
First
six-month
period

300

246.1

13.2

200
10
100

0

FY 2013

FY 2014

FY 2015 FY 2016
(forecast)0

FY 2013 FY 2014 FY 2015 FY 2016
(forecast)

The acquisition of Capita, a major Singaporean
Human Resource service company, was announced.
Capita is a Human Resource service company that has maintained apartnership with the Temp Group since 2012. By converting Capita
of the Temp Group, we will seek a wider range of Human Resource
services for Japanese, European, US, and of course Singaporean
companies, while combining the business bases and know-how ofboth companies.

The acquisition of First Alliances, the largest
Human Resource service company in Vietnam,
was announced.
Vietnam: a country attracting more and more Japanese companies
for business expansion. First Alliances is the largest local Human
Resource service company in Vietnam. We will seek a larger market
share in this region by combining the business bases of First Alliances
and the Human Resource service know-how of the Temp Group.

* On November 6, 2015, the Company made an upward revision to the full-year forecast.
The revised figures are shown in the chart above.

Towards the Expansion of Asian Markets

Amendments to the Worker Dispatch Law Enforced

The ASEAN market is where significant growth is expected from a medium-The proposed amendments to the Worker Dispatch Law were passed on
September 11, 2015, and enacted on September 30, 2015. The
amendments abolished the former upper limits of the dispatch periodthat had varied depending on job type, newly establishing upper limits ofthree years for dispatching to each business establishment and for anindividual worker. While the clarification brought to the system iswelcomed, Temporary staffing companies must assume new obligations
to implement “Employment stabilization measures” for the continued
employment of Temporary workers in addition to establishing a “Careerdevelopment support system” with the aim of career enhancement of
Temporary workers. We sense that this movement has marked one solid

to long-term point of view. One of our priority themes requiring continuous
focus is to enhance our provision of services in this market. Among others,
we consider that Singapore where enterprises are gathered from aroundthe world and which is viewed as a hub for Asian strategy, and Vietnam
where more and more Japanese companies are establishing businesses,
are the key strategic countries for us. The Temp Group announced theacquisition of two major Human Resource service companies in thosecountries. Thus, we are focusing on strengthening our business bases
toward medium- to long-term growth in the ASEAN market.

3

TEMP REPORTKey points of the amendments tothe Worker Dispatch Law

For a further leap ahead by establishinga new “Vision” and “Action Guideline”

The upper limit of the dispatch period is three
years, regardless of the classification of work.
– The limit of the period is determined on an individual basis anda company basis.
The Law will be clearer for both Temporary workers and companies.

“Employment stabilization measures” shall be
implemented, and the establishment of a“Career development support system” is required.
– The provision of education and training programs as well as
career consulting to those who wish to receive it, together with
the implementation of Employment stabilization measures atthe end of the dispatch period became obligatory.

A license system has been introduced for all
Temporary staffing business operators.
– The notification system was abolished. With the aim of improving
the quality of the Temporary staffing business, a sounderTemporary staffing market is pursued.

step forward toward the improve of more attractive labor markets.
“Adding Value to the Individual” is one of the corporate philosophies of
the Temp Group. With the new three-year limit set by law, workers will beable to acquire a long-term vision for their career. It is our hope tobecome their partner who can help and support them plan their future
career formation.

New Visions Set for the Future

VisionCreate social infrastructure
for people and organizasion
that catalyze growth and innovation.

Action Guideline
Sincerity:

Respond every issue sincerely.

Customer-oriented:

Always be a reliable partner and strive to go
beyond our customer's expectations.

Professionalism:

Have high spirit and keep on shining.

Teamwork:

Respect the diversity and maximize
the achievement of organizations.

Challenge and Innovation: Think, act and joy in chaging.

management of business organizations may change, the fact that
“Humans grow through working” will remain unchanged. We provide
places for working people to add more value concurrently with a wide
range of services that may contribute to the growth of the organization.
The growth of people will bring growth to the organization, and thegrowth of the organization will bring further opportunities for the growthof people. The Temp Group hopes to continue to be an indispensable
contributor to society by generating such virtuous circles of growth.

We have set new visions this autumn with the aim of sharing one unified
sense of values among all of the Temp Group workers: “Becoming
infrastructure that creates the growth of human resources andorganizations.” However much people’s ways of working and the
TEMP REPORT

4

Business Overview by Segment

Net Sales

Temporary Staffing/BPO Segment

396.8*(forecast)(Billion yen)

Full-year

Net sales surged significantly, reflecting robust demand arising from continued brisk corporate activities, in addition to the favorable
effects of our business expansions through share acquisitions of Panasonic Excel Staff Co., Ltd. and P&P Holdings Corporation, etc. In
terms of profits, operating income also grew significantly due largely to the increase in sales, despite a temporary increase in expenses
relating to share acquisition, and labor costs incurred in the business expansion and busy periods, as well as an increase in the burdenof expenses borne with respect to social insurance premiums for Temporary workers and employees of the Group companies.

295.9

192.8
First
six-month
period143.7%
UP 34.2

FY 2014* On November 6, 2015, the Company made an upward revision to the full-year forecast. The revised figures are shown in the chart above.

ITO segment

Net Sales
Full-year

We observed continued strong demand for SI-related
services, sales outsourcing, etc., reflecting the heightened
appetite for investments in system-related services, etc.,
by our customer companies. Robust sales were recordedon the back of increases in demand in the highly
professionalized sales marketing services, and rises incontract unit prices. In terms of profits, operating income
was 0.55 billion yen due to the impact of several measures
including newly hiring, and the securing and retaining ofengineers to respond to the increase in demand.

24(Billion yen)First
six-month
period(forecast)

22.4

11.2

10.6

UP 5.1%

FY 2014

FY 2015

0.55 billion yen

5

TEMP REPORTDOWN 2
3.6%(Billion yen)
Full-year

We continued to receive vigorous demand from our customers in the automobile and electronics industries, mostly reflecting theheightened demand for design and development. While operating results recorded steady growth with the stable assignment of
newly graduated employees, net sales fell below the results of the previous year due to a transfer of some businesses to the ITO
segment. As to profits, operating income was 0.49 billion yen, as a result of hiring more new graduates in response to the market
environment in which inquiries increased, and giving them pre-assignment training to better fit the market needs, and due to theimpact of decreased sales as a result of business transfer, etc.

FY 2015

First
six-month
period23.3

23.8(forecast)

11.5

11.3

DOWN
1.7%

FY 2014

FY 2015

Operating Income

Operating Income

8.23 billion yen

0.49 billion yen%
UP 35.9

Recruiting segment
On the back of the continued brisk economic environment, net sales
grew steadily as a result of receiving robust demand in the careerand media division. As for profits, operating income soared,reflecting a change in the timing for promotions such as commercial
messages to the second half of the fiscal year and an increase in net
sales, although we increased personnel to expand contact points
between our customer companies and job seekers, and invested in
websites in pursuit of higher convenience and improved visibility.

First
six-month
period%73.7(Billion yen)

Full-year

DOWN 1
8.7

TopicsNet Sales(forecast)

62.2

P&P Holdings Corporation became a consolidated
subsidiary through share acquisition.

“DODA Agent Service for new graduates” started
operation.

27.9

In June 2015, P&P Holdings joined the Temp Group. By
combining the P&P’s strengths in the marketing support
system domain and the Temp Group’s capability andknow-how in the provision of human resources, we willraise our positioning in those domains.

Benesse i-Career Co., Ltd., established in April 2015
jointly with Benesse Holdings, Inc., started operation of“DODA Agent Service for new graduates” in October
2015. It will support the younger generation responsible
for the future Japan by providing new graduates with theknow-how accumulated by the DODA career-change
support service, which has helped 20,000 people annually
who wished to change their career.

32.2%
UP 15.4

FY 2014

FY 2015

Operating Income

Operating Income

Net Sales

Engineering segment

3.08 billion yen%
UP 52.2

The number of registered members of “LINE Baito”
exceeded 6 million. New functions were released.
“LINE Baito” is a new service released in February 2015.
In eight months from the launch, the number ofregistered members exceeded 6 million. New functions
using the LINE Talk function were released one after
another for more convenient service.

TEMP REPORT

6

Overview of Consolidated Financial Results
Please visit our website for more detailed IR information.
The website of Temp Holdings Co., Ltd.

http://www.temp-holdings.co.jp/

Balance Sheet
Net Sales

Operating Income(Billions of yen)

Net Income(Billions of yen)(Billions of yen)

515*

26

30

(forecast)

401

25

400

13.4

23,400
23.4
12

20
300

246.1
192.2

13.2

15

8.1
8

10.2

200

5.7

Year-end

10
100

0

8.0%

UP 2
FY 2014

FY 2015

Reflecting busier operations and more
intensified recruitment activities brought
about by increased corporate earnings,
the employment-related indicescontinued to improve, maintaining
demand for Human Resource services
centering on temporary staffing andrecruitment support on an upward trend.
Under these circumstances, net sales
showed a year-on-year increase of 28.0%,
to 246.1 billion yen for the first six-month
period under review as a result of ourefforts to further improve the segment
functions and enhance services andbusiness expansion by centering on
collaboration with the Group companies
and M&As.
* On November 6, 2015, the Company made an
upward revision to the full-year forecast. The
revised figures are shown in the chart above.

7

TEMP REPORT

5
0

9.9%

UP 2
FY 2014

FY 2015

Operating income for the first six-month
period under review was 13.2 billion yen,a 29.9% increase on a year-on-year basis.
While we increased the number ofinternal staff members in an effort toenhance the business of each segment,
and invested in our website to improvethe convenience and visibility of ourservices, sales soared significantly mainlyin the Temporary Staffing/BPO and
Recruiting segments, together withimprovement of the operating margin in
the aforementioned segments. The
increase in operating income isattributable to the abovementioned factors.

4

0

First
six-month
periodFY 2014

FY 2015

14.00

18.00

18.00

6.00

1.4%

UP 4
FY 2014

FY 2015

Net income for the period under review
surged 41.4% year on year, to 8.1 billion
yen. This was mainly attributable to thegrowth of operating income, as well as
to extraordinary income generated fromthe amendment to the retirement
benefit system.

* The forecast for the year-end dividend
was revised due to a stock split.
The Company implemented a 3-for-1
stock split for shares of common stock,with October 28, 2015 as the base dateand October 29, 2015 as the effective
date. Accordingly, the year-end dividendof 6 yen per share represents
substantially the same amount as 18 yen
per share in the case where the stock
split would not have taken place.

Considering the steady growth of ourbusiness, we decided to increase thedividend per share for the first six-month
period from 14 yen in the same period
last year, to 18 yen, a 4 yen increase.

(Billions of yen)

Decreases in cash anddeposits due to M&A andpayment of income taxes
payable and accrued
consumption taxes

1

PO IN T 2
Decreases due topayment of income taxes
payable and accrued
consumption taxes

September 30,
2015

228.6

219.9

–8.6

Current assets

130.6

121.6

–9.0

Cash and deposits

60.6

53.0

–7.6

Non-current assets

97.9

98.2

0.3

Right of trademark
and goodwill

77.0

76.2

–0.8

124.6

95.6

–29.0

86.5

73.8

–12.7

38.1

21.8

–16.2

Liabilities
2 Current liabilities

Non-current liabilities

1.1

–13.6

Long-term loans payable

13.9

11.6

–2.3

103.9

124.3

20.3

Owner’s capital

98.5

118.3

19.7

3

Capital stock

10.0

16.8

6.8

3

Capital surplus

13.6

20.3

6.7

PO IN T 4
Increase of 8.1 billion yen
in net income* “Net income” represents “Net income attributable
to the shareholders of the parent company.”[Reference]

Net Assets

4

Retained earnings
Minority interest

200

130.6

121.6

50

97.9

98.2

0

March 31, 2015

September 30, 2015

150

100

Liabilities and Net Assets(Billions of yen)

14.7

3

Decrease due to theconversion of convertiblebond-type bonds withstock acquisition rights,
and increases in capitalstock and capital surplus

ChangeConvertible bond-type bonds
with stock acquisition rights

PO IN T 3

Non-current assets

250

March 31,
2015

Assets(*)(forecast)

AssetsCurrent assets

PO IN T 1

(forecast)

16(Billions of yen)

(Yen)

15.2

(forecast)

500

Dividend Per Share

73.4

80.2

6.7

5.4

5.9

0.5

The Temp Group has applied the “Accounting Standards for the Presentation of Comprehensive
Income” since the fiscal year ended March 2011. “Comprehensive Income” is calculated bymarking assets and liabilities to market and adding the profits or losses to net income.

Comprehensive
IncomeCurrent liabilities

Non-current liabilities

Net assets

250

200

86.5

150

38.1

73.8
21.8

100

50

0

103.9

March 31, 2015

124.3

September 30, 2015

First six-month period of
FY 2014First six-month period of
FY 2015

5.02 billion yen

8.17 billion yen
TEMP REPORT

8

The Temp Group’s CSR Activities

Information

The Temp Group is engaged in CSR (Corporate Social Responsibility) activities through the human resource business,while implementing a wide range of social contribution activities.

Company Outline(As of September 30, 2015)

For Regional Revitalization
For regional revitalization through human resources services.
Regional revitalization is one of the Japanese government’s policies.
The Temp Group is engaging in regional revitalization through the humanresource business: promotion of regional employment or helping university students
become farm workers; helping adults and students change career by finding a job intheir hometown or work in a region other than their hometown, or change career byfinding a job back in an area near their hometown; helping senior people find asecond career in a province; and holding seminars relating thereto.

Company Name

Temp Holdings Co., Ltd.

Established

October 1, 2008

Head Office2-1-1 Yoyogi, Shibuya-ku,
Tokyo, JAPANType of Business

Management planning,
administration, and operations
related to subsidiary andgroup companies that handle
temporary staffing andplacement services

Capital16,893.14 million yen

For giving assistance to women’s challenges
Call for entries started for the Temp Group Challenge Women
Scholarship for FY 2016.
This scholarship program was established by the Temp Group to assist adults instudying abroad, and was upgraded in 2013 to give particular assistance toadult women.
Call for entries started for FY 2016, and we received many inquiries withfavorable recognition.

9

TEMP REPORTMembers of the Board(As of September 30, 2015)

Chairman and Director

Stock Information

Distribution of Shareholders(As of September 30, 2015)(As of September 30, 2015)● Authorized number of shares:

240,000,000● Total number of shares issued:

78,480,803● Number of shareholders:Foreign companies,
etc.

Name of shareholders

Number ofshares held

Yoshiko Shinohara

19,277,200

24.69

The Yoshiko Shinohara
Memorial Foundation

4,100,000

5.25

The Master Trust Bankof Japan, Ltd.
(Trust Account)

3,185,600

4.08

Kelly Services Japan, Inc.

3,035,600

3.88Japan Trustee Services
Bank, Ltd. (Trust Account)

2,875,000

197,693(0.25%)

Shareholding
ratio (%)

3.68

2.45

Yoshimi Iyadomi

1,812,800

2.32

Hirotoshi Takahashi

BNYM TREATY DTT 15

1,477,732

1.89

Director

Takao Wada

For career formation of the younger generation

Director (external)

Carl T. Camden

CHASE MANHATTANBANK GTS CLIENTSACCOUNT ESCROW

1,258,843

1.61

Full-time Auditor

Hiroshi Shimazaki

Providing assistance for career development from various angles, including
delivering lectures at universities, and organizing business contests.

Auditor (external)

Kaoru Arai

The Bank of TokyoMitsubishi UFJ, Ltd.

1,232,000

1.57

Auditor (external)

Ryosuke Tamakoshi

We have implemented various measures of career development for the younger
generation by delivering lectures concerning career development at universities in Japanand Korea, and organizing a business contest in an , a part-time job opening information
magazine to enhance measures of character recognition.

Auditor (external)

Naoshige Shindo

Masamichi Mizuta

Executive Vice President
and Director

Financial
instrumentbusiness
operators● Major shareholders

1,918,900

President andRepresentative Director

14,278,600 (18.19%)

6,121

THE BANK OF NEW
YORK, NON-TREATYJASDEC ACCOUNT

Mikihiko Hibino

Financial institutions

25,622,181 (32.65%)

Treasurystock
429,089(0.55%)* The shareholding ratio is calculated based on thenumber of shares (78,051,714) obtained by deducting
the number of shares in the treasury stock from thetotal number of shares outstanding.

Individuals, others
28,318,054(36.08%)Other
companies,etc.
9,635,186(12.2%)

Shareholder Information
Business year

From April 1 to March 31 of the following year

Annual general
meeting ofshareholders

Late June

Record dates

Annual general meeting of shareholders:March 31
Year-end dividend: March 31
Interim dividend: September 30

Yoshiko Shinohara

Vice Chairman
and Director(Shares)

Administrator ofshareholders’ register
Mitsubishi UFJ Trust and Banking Corporation
Special accountmanagement institution

Contact

Stock listing
Public notices

Custody Service Department
Mitsubishi UFJ Trust and Banking Corporation
7-10-11 Higashisuna, Koto-ku, Tokyo
137-8081, JAPAN
Telephone: 0120-232-711(Toll free available only in Japan)
URL: http://www.tr.mufg.jp/daikou/
Tokyo Stock Exchange, First Section
Electronic public notice
URL: http://www.temp-holdings.co.jp/(When electronic public notices are notpossible due to accidents or other unavoidable
circumstances, announcements will appear in
the Nihon Keizai Shimbun newspaper.)

TEMP REPORT

10

Procedures for Shares
Shares registered in the accounts of securities companies, etc.
Procedures, inquiries, etc.

Contact

Inquiries about the sending and returning of mails
Inquiries about dividends after expiration of the payment period
General inquiries about administrative work relating to shares

Administratorof shareholders’registerProcedures and inquiries other than those stated above, such aschanges in address, name, etc.

Please contact your securities company.

Shares registered in the special accountProcedures, inquiries, etc.

Custody Service Department
Mitsubishi UFJ Trust and Banking Corporation
7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081, JAPAN
Telephone: 0120-232-711 (Toll free available only in Japan)

Contact

Requests for transfer from a special account to a general account
Changes in address, name, etc.
Inquiries about account balance
Designation of method for receiving dividends (*)

Special accountmanagement
institution

Inquiries about the sending and returning of mails
Inquiries about dividends after expiration of the payment period
General inquiries about administrative work relating to shares

Administratorof shareholders’register

Custody Service Department
Mitsubishi UFJ Trust and Banking Corporation
7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081, JAPAN
Telephone: 0120-232-711 (Toll free available only in Japan)
Method for requesting procedural documents
Request using the automatic answering phone system:
0120-244-479 (Toll free available only in Japan)
Download documents online: http://www.tr.mufg.jp/daikou/(*) Shareholders holding shares registered in the special account may not choose the method of receiving dividends in proportion to the number of shares held.

Stock split concluded (One share of common stock of the Company was split into three.)
The Company implemented a 3-for-1 stock split of shares of common stock, with October 28, 2015 as the base date and October 29,
2015 as the effective date, with the aim of expanding the investor base by raising the liquidity of the shares. As a result of this stock
split, the stock price per share of the Company changed to one third of its previous value.
Custody Service Department
Mitsubishi UFJ Trust and Banking Corporation

Telephone:

0120-232-711 (Toll free available only in Japan)

Temp Holdings was selected as a component of the JPX-Nikkei Index 400 in August 2014.
What is the JPX-Nikkei Index 400?

It is a new stock price index composed of stocks of companies that meet the requirements of global investment
standards, including the effective use of capital, an investor-conscious management viewpoint, etc., which wasestablished with the aim of promoting the attractiveness of Japanese companies to investors at home and abroad.

Temp Holdings Co., Ltd.
Shinjuku Maynds Tower, 2-1-1 Yoyogi, Shibuya-ku, Tokyo, JAPAN Telephone: +81-3-3375-2220* Matters stated in this report include statements concerning the Company’s plans and forecasts for the future.
Actual earnings may differ materially from the statements due to a variety of factors, and the statements do not mean that we promise to achieve these figures.

This printed product uses FSC®-certified paperand vegetable-oil-based ink.