To Shareholders and Investors

Business Report
Report for the fiscal year ended March 2012

April 1, 2011 – March 31, 2012

(Securities code: 2181 )Top Message
the fiscal
Highlights ofarch 2012
year ended M
Both sales and profits increased year on year.
Given steady earnings results, the year-end
Takingthetobyprepare
for changes
dividend
willinitiative
be increased
2 yen per sharefromthe 6 yen initially planned.
UP
yoy
Sales: 233.1 billion yen

Operating Income:

yoy

UP

8.1 billion yen
Net Income: 3.4 billion yen yoy

UP

Term-End Dividend per Share: 8 yen

After the Great East Japan Earthquake, the Japanese economy recovered
steadily during the fiscal year ended March 31. Demand continued to be strong forexternal human resources, especially those related to reconstruction from thedisaster.
Meanwhile, some companies refrained from using staffing services due to theuncertainties over the future outlook for laws and regulations and theadministration surrounding human resource services. In addition, there were
unfavorable factors such as a risk of further economic downturn because of thestrong yen.
Under such circumstances, the Temp Group expanded the Outsourcing
business, a new key to growth, and proactively conducted sales activities. As aresult, consolidated sales for the current fiscal year were 233.1 billion yen andoperating income was 8.1 billion yen, both exceeding the initial forecasts.
Accordingly, we have decided to pay a year-end dividend of 8 yen per share, up 2
yen from the initial plan.

Use Changes as the Strength for Progress
Taking the initiative to prepare for changes

Our steadfast mission

In April 2012, the revised Worker Dispatching Act, which had been longdebated, was promulgated.
The revision was more in line with the actual situation than had been
expected initially, and the uncertainties about conditions of temporary
workers were settled, which we regard a positive factor for our business.
The Temp Group has expanded the Outsourcing business andproposed various methods for using external human resources from anearly stage. Hence, the latest revision of the law seems to have only alimited impact on our business performance.

“To support the growth of individuals and contribute to society throughjob creation” is our corporate principle and our actual business activity as
well. We strongly want to provide workplace for those who have the“willingness” to work and the “potential” for given work.
Today, when the business environment continues to change, it will be
increasingly important for companies to utilize external human resourcesin order to strengthen their competitiveness while holding down
employment risk.
The Temp Group will continue to create employment at home and abroadas the best partner of companies seeking employees and people seeking
jobs.

Temp Holdings
ement Strategy
Mid-term ManagStrengthening localized services
Regional companies will provide community-based, finely tuned
services. We will work to expand our market share in each region.

Developing business in specialized fields and new job
categories
To meet sophisticated and diversified needs, we will expand new job
categories, services and networks.

Expanding our presence in the global market
We will concentrate our resources on global networks, particularly in
Asia, to establish bases and actively develop our businesses.

Providing job assistance to women
Women are the key to eliminating labor shortages in this aging society
with fewer children. We will offer overall support their employment by
supporting child-raising mothers, holding seminars and giving counseling.

Improving management efficiency

Yoshiko Shinohara, Chairman & President
Sets up Tempstaff Co., Ltd. in 1973;
Ranked among the “50 Most Powerful
Women in Business: International” by
the US magazine “Fortune” for the 12th
consecutive year since 2000; Invited to“ADVANCE WOMEN’S LEADERSHIPSUMMIT” in Australia as one of the 50
FOR THE FUTURE in March 2011.

We have increased the efficiency of ouroperations by building a holding company
system and reduced costs radically. We will
firmly maintain solid earnings growth and asound financial position.

Creating Jobs

Corporatephilosophy
AddingValue to theIndividuals

Contributing
to SocietyOverview of business results by segment
Temporary Staffing and Recruitment Services
Sales(unit: million yen)(forecast)UP
UP

2011/3

2012/3

2013/3Full-scale
Increases both in sales and profits achieved recovery
despite adverse factors
achieved;furtherachievements
eyed
Although demand for human resources continued to be steadyalong with the normalization of the economic activities after theGreat East Japan Earthquake, the pace for a full-scale recovery
was slow amid the uncertainty over the business environment forthe staffing business. Under such adverse circumstances, weaggressively promoted new sales activities, implementing thestrategy for increasing the number of clients. We also conductedthorough cost control. As a result, operating income for the current
fiscal year jumped 42% year on year to 6,220 million yen (*). We
will continue to strengthen the customer base that is regionally
rooted and expand specialized services.

The Temp Group has got on a recovery
track faster than expected. We will report
our earnings results and initiatives for thecurrent fiscal year.
Acquisition of two companies, which have unique sales bases, through M&A
Synergy effects being generated
We converted two companies into subsidiaries
through M&A as part of measures in the mediumterm management strategy, including “enhancementof regional strategies” and “active expansion into
specialized fields and new job areas.” We will further
develop the two companies’ unique client bases by
substantially improving job-matching accuracy
through the use of the Temp Group’s capability tosupply abundant human resources.

TOPICS

Converting the following
companies into subsidiaries
through M&A in November 2011
- Kobelco Personnel Co., Ltd.
- Tempstaff Media Co., Ltd.
(former Nikkei Staff Co., Ltd.)*In the earnings results of each segment, sales are those after eliminating internaltransactions, and operating income is that before eliminating internal transactions.

R&D Outsourcing
Supply capability increased significantly
More supply capability eyed

Sales
(unit: million yen)(forecast)

DOWN

2011/3

2012/3UP

Demand for human resources was strong from companies in thedesign and development sectors, including auto manufacturers, andthe utilization rate of personnel remained significantly higher. Given
this robust demand is expected to continue, we are enhancing thecapability to supply personnel mainly by recruiting a large number of
new graduates. Meanwhile, we established a highly profitablesystem through business restructuring, such as sales of subsidiaries.
As a result, operating income for the current fiscal year was 177
million yen (*).

2013/3

JAPAN TECSEED CO., LTD. made into a wholly owned
subsidiary in August 2011
Temp Holdings converted JAPAN TECSEED, which is engaged in
the R&D Outsourcing business, into a wholly owned subsidiary.
This resulted in establishing a structure that allows groupcompanies to cooperate with each other more freely and smoothly.
Under the structure, we can now meet strong needs for technicalhuman resources from many sectors at a high matching accuracy.
Furthermore, we will boost customer satisfaction by providing total
human resource solutions through the utilization of clerical, ITrelated and R&D support personnel.

TOPICS

Overview of business results by segment
Full-scale start of the whole-out typebase Miyazaki Outsourcing Center!

In October 2011, the Miyazaki Outsourcing Center was
established through a partnership among three companiesof the Group. The center, with a 330-seat call center facility
and a business processing space, provides services on a
one-stop basis while combining the know-how of the threecompanies. It has already begun to implement a number oflarge projects, including business support for a major
pharmaceutical company.
Miyazaki Outsourcing Center
Provides call center services,various administrative work
services, etc.

Tempstaff

HOWCOM

Japan IDEX

Outsourcing

TOPICS

Has the capability to manage
human resources and match
human resources to humanresource needs, know-how
about recruitment and sales
networks.

Has a wealth of know-how
about IT-based help desk
service, and boasts highquality operations.

Has a plenty of know-how
about operational processes,
and boasts high-quality
operations.

Aiming for further growthYear-on-year double-digit percentage
increase both in sales and profits achieved
Needs for outsourcing are rising due to changes in theenvironment surrounding human resource services. To meetsuch needs, the Temp Group concentrated group firms’
specialized know-how about outsourcing and formed a groupwide cooperation system. Through these efforts, we could
expand related service menus and accumulated related knowhow, resulting in increasing the scale of the Outsourcing
business. As a result, operating income amounted to 1,421
million yen (*). In the market, the Group is strengthening its
presence as an outsourcer that can meet the pursuit of highquality and deal with any scale of undertaking. We will aim tofurther develop this business.

(forecast)

Sales(unit: million yen)

PV Next, a contracting firm in thepharmaceutical field, established
Demand is growing for pharmacovigilance (PV) service,
which compiles cases of side effects, etc. of a new
medicine under development. In response, the Temp
Group established a joint venture PV Next Co., Ltd.,
specializing in undertaking PV service, with IUK INC. in
May 2012. We will promote the “active expansion into
specialized fields and new job areas” which is focusedon in the medium-term management strategy.

UPUP

2011/3

2012/3

2013/3

Business Expansion Overseas

Other Business

Sales(unit: million yen)(forecast)

Further increases in bases
and personnel in Asia
To prepare for the advancement ofJapanese companies into the rest of Asia,
which is projected to increase in the future,
the Temp Group is strengthening its structure.
In line with this, we opened the Tsim Sha
Tsui branch office in Hong Kong, the secondbase there, in May 2011, and the Shenzhen
branch office in Guangdong, China in
December 2011. Furthermore, we arereinforcing the personnel system at offices in
Asian countries, aiming to enhance sales
abilities there.

UP
DOWN

2011/3

2012/3

Signs of recovery for the next fiscal
year seen
Demand is recovering in the outplacement support
business due to the deterioration of the external
environment such as the yen’s appreciation. As for theeducation and nursing care businesses, we will expand
their growth potential and strive to secure profits inthem, by accurately responding to market needs.

2013/3GlobalFacility for both children and the elderly opened to realize“coexistence of children and old people” and “local coexistence”

Facility for both children
and the elderly

Exchanges

Local communities

Group home for cognitively impaired elderly people-Daily life
-Participationin events

Ivy Home Futaba
Tempstaff Welfare Co., Ltd.
Exchanges

Attached

Exchanges

Oimachi Nozomi Hoikuen-Visits by children of the day
Tempstaff Wish Co., Ltd.
care center to the elderly in theirrooms
Tokyo-government authorized day care center-Exchanges through events-Exchanges that occur
spontaneously*In the earnings results of each segment, sales are those after eliminating internaltransactions, and operating income is that before eliminating internal transactions.

TOPICS

As one of new efforts to create a society, where the elderly can live without anxiety
and women find it easy to work, the Temp Group has established a facility that takes
care of both children and old people, which consists of a group home for cognitively
impaired elderly people and a Tokyo-government authorized day care center.
Through the facility, we will aim to realize not only exchanges between different
generations - infants and cognitively disabled old people, but also exchanges withneighboring residents, that is, local coexistence.

Overview of Consolidated Financial Results
Dividend Per

Share

ome
Operating Inc

Net Income(unit: yen)(unit: million yen)Sales

(unit: million yen)(unit: million yen)(forecast)(forecast)(forecast)(forecast)(forecast)

UP

UP

UP

2011/3
Full
year
2Q

2012/3UP

UP

UP

2013/3(forecast)

2011/3

2012/3

2013/3

2011/3

2012/3

2013/3

2011/3

2012/3

2013/3(forecast)

We have decided to pay 8 yen per
share as a year-end dividend for thecurrent fiscal year, up 2 yen from a year
ago, due to favorable businessperformance. This will bring the annual
dividend to 14 yen per share, including
an interim dividend of 6 yen per share.
For the fiscal year ending March 2013,
we plan to increase an interim dividendby 2 yen to 8 yen per share, resulting inan annual payout of 16 yen, including a
year-end dividend of 8 yen per share,given earnings results are forecast to
increase steadily.

In the current fiscal year,
extraordinary loss was recorded due
to a one-time write-off of goodwill.
However, the extraordinary loss wasless than the fiscal year ended March
2011, when the accounting standard
for asset retirement obligations wasapplied. As a result, consolidated net
income rose substantially.
For the fiscal year ending March
2013, we expect consolidated net
income, as well as sales and operating
income, will climb to the highest levels
since the establishment of Temp
Holdings.

Consolidated operating income forthe current fiscal year rose sharply
due to an improvement in sales,
combined with the favorable results ofconcentrating management resourcesin growth fields and the effects ofcontinued cost control.
For the fiscal year ending March
2013, we expect consolidated
operating income to increase 10.2%
year on year as every business is
forecast to continue to grow.

During the current fiscal year,
business performance continued to
improve as the effects of theearthquake and tsunami attenuated.
Earnings of the mainstay Temporary
Staffing and Recruitment Services
business picked up, and theOutsourcing business advanced
rapidly. As a result, consolidated sales
increased 3.5% from a year earlier.
For the fiscal year ending March
2013, we expect to post the highest
consolidated sales since theestablishment of Temp Holdings.

For more detailed IR information, please visit our website.
Website addresstBalance Shee
(unit: million yen)

Assets(unit: million yen)

2011/3Current assets

2012/3

ChangeNoncurrent assets

AssetsCurrent assets
Cash and deposits
Cash and deposits increased
as earnings continued to bestronger than anticipated.

Noncurrent assets

Liabilities
2011/3

assetsLiabilities/Net

2012/3(unit: million yen)

Net assets
Current liabilities Noncurrent liabilities

Current liabilities increased due tothe transfer of convertible bondstype bonds with stock acquisitionrights, whose maturity became lessthan one year, from noncurrent tocurrent liabilities.

Current liabilities
Noncurrent liabilities

Net assets
Temp Holdings converted JAPANTECSEED into a wholly owned
subsidiary in August 2011, andbought back its own shares in
November 2011 and March 2012,
which resulted in changing
shareholders’ equity.
2011/3

Shareholders' equity
Treasury stock
Minority interests

2012/3【Reference】】
The Temp Group applied “Accounting Standards for Presentation of Comprehensive Income” in thefiscal year ended March 2011. “Comprehensive Income” is calculated by marking assets and liabilities tomarket and adding the profits or losses to net income.

Comprehensive
Income2011/3

2012/32,825 million yen

3,131 million yen

CSR
icallyFor the physand mentallychallenged

For women

Promoting the pink ribbon campaign

Supporting physically andmentally challenged athletes

The Temp Group supports women from various
perspectives, for example, by operating businesses in thechildcare field.

Activities for the current fiscal year
Holding of the “Breast Cancer Palpation Model Caravan” in Tokyo
Installation of the “Pink Ribbon Donation-type Beverage Vending Machines,”
which also can be used for guaranteeing beverage at a time of disaster
Distribution of “beverage with a message” in the caravan
Implementation of outdoor advertising with pink ribbon messages

We support physically and mentallychallenged employees so that they can wellcope with both their athletic activities andtheir work. Such athletes continued toperform brilliantly in the current fiscal year,
too.

●Yuya Kimura (track & field; mentally impaired)
Oct.
2011

For people’s growth

Nov.
2011

Supporting study abroad programs
Hoping to develop personnel who can play a key role
globally, the Temp Group supports study abroad
programs. We are recruiting new scholarship students
this fiscal year, too.
Mar.
2012

We started to invite people to the IBP Global Scholarship
Program for Study Abroad.

We are fully backing up disaster victims who seek jobs,
hoping for the restoration of their lives and the reconstructionof disaster-hit areas at the earliest possible time.

Brilliantly won thechampionship at theJapan ID Full Marathon
Competition

Athlete Y

Support for reconstruction after the Great East Japan Earthquake

Let’s work! Reconstruction projects continuing.

Won the championship withflying colors at the Kanto
Athletic Meet for the Physically
Disabled

Contents
of support

Wishingfora bettersociety
The Temp Group will fulfill its
corporate social responsibility(CSR) through its staffing
business, and conduct various
social contribution activities tohelp realize a world where
everyone feels happy.

uya Kimura

Provision of employment opportunities for people in thedisaster-stricken areas
Provision of recruitment information for people living in
makeshift housing
Undertaking of reconstruction-related works
Provision of various seminars for job seekers and recruiting
companies
Provision of various consultation services for those who feel
worry and anxiety about employment

Information
Distribution of shareholders As of March 31, 2012

Stock Information

Company Outline

As of March 31, 2012

As of March 31, 2012

(Unit: shares)●Authorized number of shares: 240,000,000

Company Name

Temp Holdings Co., Ltd.

●Total number of shares issued: 65,521,500

Established

October 1, 2008

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

Management planning,
administration, and operations
related to subsidiary and groupcompanies that handle
temporary staffing andrecruitment services.

Capital2,000 million yen●Shareholders: 9,172●Major shareholders (top 10)

Shareholder Information

Name of shareholders

Shares held
(shares)

votingrights(%)

Yoshiko Shinohara

23,377,200

39.82

State Street Bank andTrust Company

5,658,610

9.63

Kelly Services Japan Inc.

3,000,000

5.11

Yoshimi Iyadomi

1,812,800

3.08

Temp Holdings

1,574,382

2.68

Employee Shareholders●Business year
Association
From April 1 to March 31 of the following year
●Annual general meeting of shareholders
Nikko Cordial Securities
1,300,000
2.21
June every year
Investment
Enterprise●Record date
Partnership
Annual general meeting of shareholders March 31
Term-end dividend March 31
The Bank of Tokyo1,232,000
2.09
2nd quarter dividend September 30
Mitsubishi
UFJ,
Ltd.
●Administrator of shareholders’ register /Special account management institution
Woman Staff Ltd.
1,206,000
2.05
Mitsubishi UFJ Trust and Banking Corporation●Contact
Nanako Yamamoto
1,108,800
1.88
Mitsubishi UFJ Trust and Banking Corporation
Custody Service Department
Taro Iyadomi
1,108,800
1.88
7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081, JAPAN
Tel: 0120-232-711* Voting rights is calculated based on the number of shares(toll free number available only within Japan)(58,703,769) excluding shares in the treasury stock from the●Stock Listing
total number of shares outstanding.
Tokyo Stock Exchange, First Section●Website address of public notice
http://www.temp-holdings.co.jp/
When electronic public notices are not possible due toincidents or other unavoidable circumstances,announcements will appear in the Nihon Keizai Shimbun newspaper.

Board of Members

As of June 22, 2012

Chairman & President

Yoshiko Shinohara

Executive Vice-President

Mikihiko Hibino

Executive Vice-President

Masamichi Mizuta

Executive Director

Toshio Saburi

Director

Takao Wada

Director

Kazuomi Morimoto

Director

Carl T. Camden

Full-time Auditor

Hiroshi Shimazaki

Auditor

Kaoru Arai

Auditor

Ryosuke Tamakoshi

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

Contact

Inquiries about the sending and returning of mails
Inquiries about dividends after completion of the payment period
General inquires about administrative work related to shares

Administrator ofshareholders’register

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

Procedures and inquiries not included above

Please contact your securities company.

■Shares recorded in the special accountProcedures, inquiries, etc.

Contact

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

Special accountmanagement
institution

Inquiries about the sending and returning of mails
Inquiries about dividends after completion of the payment period
General inquires about administrative work related to shares

Administrator ofshareholders’register

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

Method for requesting procedural documents
Request through the automatic answering system: 0120-244-479(toll-free number available only within Japan)
Download online: http://www.tr.mufg.jp/daikou/(*) Shareholders who own shares recorded in the special account may not choose the method for receiving dividends in proportion to the amount of shares held.

Internet

Launch of “TEMP NAVI for Individual Investors”
http://www.temp-holdings.co.jp/individual/This website publicizes various information such as the Temp Group’sbusinesses and earnings results in an easy-to-understand manner.

Shinjuku Maynds Tower, 2-1-1 Yoyogi, Shibuya-ku, Tokyo 151-0053, JAPAN

Tel: +81-(0)3-3375-2220(*) The items in this report include descriptions of future plans and forecasts.
Actual performances may differ substantially due to various factors, and hence,
we cannot guarantee the described performances will be surely achieved.