The Presentation of Interim Period (FY Ended Sept. 2003) Financial

Ｊ200305

People FULLCAST Jobs

Review of Fullcast’s Consolidated Operating Results Interim Period, Fiscal Year Ending September 2003 AgendaAgenda ■ Ｈｉｇｈｌｉｇｈｔs of the Second Quarter (January-March), Fiscal Year Ending September 2003

■ Operating Results by Business Segment for the Second Quarter (January-March) of the Fiscal Year ending September 2003 ・Spot Business ・ Factory Business ・ Technology Business ■ Operating Results and Progress for the Second Quarter (January-March) of the Fiscal Year ending September 2003 ■ Management Objectives Highlights Consolidated Net Sales 2 (2nd qtr., FY ending Sep. 2003)

Percent change compared to same period of prior fiscal year

49.0% 33.8%33.8% 55.7%55.7% 47.7%47.7% Unit: Million yen 8.9%8.9% -0.1%-0.1% -0.5%-0.5% -1.0%

10,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000 9,651 5,666 6,140 6,198 6,401 7,581 9,067 2,000 6,152 6,230 5,877

1,000

0 Oct.-Dec. Jan.-Mar. Apr.-June July-Sep. Oct.-Dec. Jan.-Mar. Apr.-June July-Sep. Oct.-Dec. Jan.-Mar. 2000 2001 2001 2001 2001 2002 2002 2002 2003 2003 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr.

FY ended Sep. 2001 FY ended Sep. 2002 FY ending Sep. 2003 Highlights （2nd Qtr., FY ending Sep. 2003) Consolidated SG&A Expenses 3

SG&A expenses Unit: Million yen as a % of net sales

23.1%23.1% 28.3% 28.3% 28.3% 28.3% 26.8% 26.1% 24.8%26.8% 26.4% 26.4% 26.1% 30.0% 24.8% 21.4% 22.4% 22.2% 22.4% 22.2% 5,000 21.4% 20.0% 4,500 SG&A expenses decreased as a 4,000 percent of net sales, despite an increase in the number of offices. 10.0% 3,500

3,000 0.0%

2,500 2,229 2,014 2,000 1,760 1,663 1,634 1,669 1,701 1,500 1,518 1,520 1,318 1,000

500

FY ended Sep. 2001 FY ended Sep. 2002 FY ending Sep. 2003 Highlights Consolidated Operating Income 4 (2nd Qtr., FY ending Sep. 2003)

Percent change compared to same period of prior fiscal year Unit: Million yen 900 47.1%47.1% 800 59.4%59.4% 50.0% -6.8% 52.0%52.0% 833 -6.8% 700 0.0% -49.7% -49.7% 600

-41.9% 637 -50.0% 500 -41.9% 593 540 400 419 399 300 367 372 308 200

100 179

0 Oct.-Dec. Jan.-Mar. Apr.- July-Sep. Oct.-Dec.Jan.-Mar. Apr.- July-Sep. Oct.-Dec.Jan.-Mar. June June 2000 2001 2001 2001 2001 2002 2002 2002 2003 2003 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr.

FY ended Sep. 2001 FY ended Sep. 2002 FY ending Sep. 2003 Analysis of Factors Causing Highlights 5 (2nd Qtr., FY ending Sep. 2003) Change in Operating Income

Unit: Million yen

Other Technology -6 60 Business +34 Eliminations or Company Total 50 -88 Factory Business ＋163 40 Spot Business +120 30 ＋593 ＋372 20 (Spot Business) Increase in outsourcing needs at existing customers and successful strengthening of business plan 10 (Factory Business) Contribution of Fullcast Central Co., Ltd. contracting automobile production line 0 (started business operations on April 1, 2002) FY ended Sep. 2002 FY ending Sep. 2003 2nd Quarter 2nd Quarter operating income operating income Consolidated Operating Highlights 6 (2nd Qtr., FY ending Sep. 2003) Income Margin (%)

16.0% P 6 連結営業利益率

14.0% 13.5%

12.0%

10.0%

8.0% 7.0% 6.1%

6.0% 6.8% 6.0% 7.1% 6.4% 6.5%

4.0% 5.2%

2.0% 2.8%

0.0% Oct.- Jan.- Apr.- July- Oct.- Jan.- Apr.- July- Oct.- Jan.- Dec. Mar. June Sep. Dec. Mar. June Sep. Dec. Mar.

2000 2001 2001 2001 2001 2002 2002 2002 2003 2003 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr.

FY ended Sep. 2001 FY ended Sep. 2002 FY ending Sep. 2003 Highlights Financial Results 7 (2nd Qtr., FY ending Sep. 2003) Comments on financial results for the second quarter, Fiscal Year ending September 30, 2003 Operating results for the second quarter, FY ended Sep. 2002 (Jan. to Mar. 2002) (Spot Business) ◆ Increased needs for effective use of outsourcing, and trend 2.8% towards oligopoly (streamlining of clients’ distribution centers, 12.2% etc.) ◆ Obtained orders as a result of aggressive opening of branch and 65.5% staffing offices that conform to clients’ needs 19.5% ◆ Obtained orders from existing customers as a result of providing services unique to FC group (Factory Business) ◆ Withdrew from unprofitable orders at FC Factory Co., Ltd. ◆ Achieved steady growth at FC Central Co., Ltd. (Technology Business) Operating results for the second quarter, FY ◆ Maintained high capacity utilization in technical expert ending Sep. 2003 (Jan. to Mar. 2003) dispatching (Q2 average: 96.9%) ◆ Adjusted unprofitable businesses of contractual development services and strengthened marketing activities 2.5% 2nd Qtr., FY ended Sep. 2002 2nd Qtr., FY ending Sep. 2003 Compared to 10.8% (Jan. - Mar.) (Jan. - Mar.) prior FY Net sales % Net sales % ■Spot 4,062 65.5% 5,555 57.6% 136.8% 57.6% ■Factory 1,202 19.5% 2,805 29.1% 233.4% 29.1% ■Technology 759 12.2% 1,043 10.8% 137.4% ■Other 176 2.8% 248 2.5% 140.9% Consolidated total 6,199 100.0% 9,651 100.0% 155.7%

Unit: Million yen Operating Results by Segment Second Quarter (Jan.-Mar.), Fiscal Year Ending September 30, 2003 Spot Business

Expansion of Branch Network and Stable Operating Results Growth Spot Business Earnings Comparison (02.2Q-03.Q2) 9

Net sales Operating income (loss)

Unit: Million yen Unit: Million yen

37％UP

5,626 5,555 750 709 26％UP

576 4,062

500 6,000 456

5,000

4,000 250

3,000

2,000 0

1,000 FY ended第2四半期 Sep. 2002 FY ending 第2四半期 Sep. 2003 FY ending Sep. 第1四半期 2003 2nd Quarter 2nd Quarter 1st Quarter 0

FY ended第2四半期 Sep. 2002 FY ending Sep. 2003 第2四半期FY ending Sep. 2003 第1四半期 2nd Quarter 2nd Quarter 1st Quarter Operating income margin

11.2% 10.4% 12.6% Spot Business Net Sales Compared to Prior Year 10 Fullcast’s monthly net sales results compared to prior year Unit: % Non- Consolidated consolidated Results of business FY ended Oct. △ 4.5 △ 15.5 Sep. 2002 Nov. 4.5 △ 8.2 reorganization Dec. △ 1.0 △ 12.0 completed in April

Jan. 0.2 △ 9.6 Consolidated Feb. △ 1.2 △ 5.8 Non-consolidated/Spot Mar. △ 0.4 △ 6.1 Apr. 4.2 △ 4.2 May 9.3 △ 6.2 80.0 70.0 June 13.4 1.7 60.0

July 16.6 △ 2.2 50.0

Aug. 39.6 28.5 40.0 Sep. 49.0 33.7 30.0 20.0 FY endingOct. 47.9 ※38.1 10.0 Sep. 2003 Nov. 45.0 ※35.1 0.0

Dec. 50.2 ※35.9 -10.0

Jan. 71.6 ※50.9 -20.0 Feb. 54.9 ※33.2 Consolidated Oct. Nov.-4.5 Dec. 4.5 Jan. -1.0 Feb. 0.2 Mar. -1.2 Apr. -0.4 May 4.2 June 9.3 July 13.4 Aug. 16.6 Sept. 39.6 Oct. 49.0 Nov. 47.9 Dec. 45.0 Jan 50.2.Feb.Mar. 71.6 54.9 46.8

Mar. 46.8 ※31.6 Non-consolidated/Spot -15.5 -8.2 -12.0 -9.6 -5.8 -6.1 -4.2 -6.2 1.7 -2.2 28.5 33.7 38.1 35.1 35.9 50.9 33.2 31.6 ※Indicates Spot Business prior-year comparison Number of Registered Spot Business Customer Companies 11 Number of spot transaction customer companies compared to prior year

140.0% P11 スポット顧客登録社数122.8% 130.1% 117.6% 120.0% 104.8% 100.8% 99.8% 124.9% 123.0% 99.1% 100.0% 114.4% 114.2% 106.9% 97.5% 104.7% 80.0% 99.2% 60.0%

40.0% During the first half (October - March), 20.0% Fullcast focused on uncovering latent 0.0% demand at existing clients. 1月Compared 2月 to prior year 3月 4月 5月 6月 7月 8月 9月 10月 11月 12月 1月 2月 3月 Number of newly registered spot business companies compared to prior year

160.0% 150.6% 140.0% 120.0% 109.7% 111.1% 101.3% 113.0% 98.7% 100.0% 114.0% 100.0% 106.6% 93.8% 80.0% 78.8% 73.6% 60.8% 55.3% 60.0% 71.6% 40.0% 20.0% 0.0% Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.

Compared to prior year 2002 2003 Spot Business High-quality Solutions 12

Net sales and number of offices Change in customized client solutions

Unit: Offices Unit: Million yen Unit: Offices Unit: Million yen 400 160300 40 Net sales 350 140 Number of client companies Change in net sales 35 120 300 Total number of locations 250 250 100 30 200 80 200 150 ◆ 60 ◆ 25

100 ◆ 40 50 20 150 20 0 0 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. 15 2001 2001 2001 2002 2002 2002 2002 2002 2002 2002 2002 2002 100

Provision of high-quality, 50 value-added services 5

0 0 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Replacement of regular 2002 2002 2002 2002 2002 2002 2003 2003 2003 employee operations Spot Business Change in Number of Branches 13

P13 スポット拠点推移（+1） Other regions

80 （+1） Kansai Location of branches 8 to respond to orders 70 received （+2） Tokai10 7 60 10 9 50 8 Focus on staff

40 hiring Kanto 30 （+11） 45 36 20

0 60 73 2002年9月末 2003年3月末 Sep. 30, 2002 March 31, 2003

Registered Staff Members: Registered Staff Members: 628,987 701,718

Includes Fullcast Office Support Co., Ltd.. (formerly Fullcast Lady Co., Ltd..) Operating----- Results ファクトリー事業 by Segment Second Quarter (Jan.-Mar.), Fiscal Year Ending September 30, 2003 Factory Business

Stable Growth in the Automotive Sector and Improvement of Operating Income Margin Factory Business Earnings Comparison （02.2Q-03.2Q) 15

Net sales Operating income (loss)

Unit: Million yen Unit: Million yen

133％UP 887％UP 200 181 2,805

2,458 150 3,000

99 100

2,000 1,202

18 1,000 0 FY ended123 Sep. 2002 FY ending Sep. 2003 FY ending Sep. 2003 2nd Quarter 2nd Quarter 1st Quarter

0 FY ended第2四半期 Sep. 2002 FY ending Sep. 2003 第2四半期FY ending Sep. 2003 第1四半期 Operating income margin 2nd Quarter 2nd Quarter 1st Quarter 1.5% 6.5% 4.0% Analysis of Factors Causing Factory Business Change in Operating Income 16 Earnings contribution from Unit: Million yen Fullcast Central Co., Ltd.

Decrease in gross profit 150 at Fullcast Factory Co., Ltd. +86

-26 +84

-23 100 Increase in SG&A expenses +126 at Fullcast Factory Co., Ltd. +181

50 Increase in net sales at Fullcast Factory Co., Ltd.

+18 0 FY ended Sep. 2002 FY ending Sep. 2003 2nd Quarter Steady growth in earnings 2nd Quarter operating income operating income

※Because Fullcast Central Co., Ltd. was established on April 1, 2002 only its earnings contribution is shown. Factory Business Percentage of net sales by industry 17 Sales contribution by industry, First Half （Oct. 2002 - Mar. 2003) of Fiscal Year ending Sep. 2003 (Comparison of First Half FY 2002/First Half FY 2003)

Automotive Food products 18.1％ 19.5％ 20.1％ 5.9％ 13.0％ 23.5％ Electronics Semiconductors FY 2002 1st Half Warehouse Other

FY 2003 1st Half

42.2 14.2％ 11.5％ 2.8％ 2.5％ 26.9％％

0 1,000 2,000 3,000 4,000 5,000

Percent accounted for by the top Steady growth of Fullcast 20 companies Central Co., Ltd. FY ended Sep. 2002, 58.3％ FY ending Sep. 2003, 62.3％ First Half First Half (Oct. 2001-Mar. 2002) (Oct. 2002-Mar. 2003) Operating Results by Segment Second Quarter (Jan.-Mar.), Fiscal Year Ending September 30, 2003 Technology Business

Maintain high capacity utilization in technical staff dispatching Technology Business Earnings Comparison （02.2Q-03.2Q) 19

Net売上高 sales Operating income (loss)

Unit: Million yen Unit: Million yen

37％UP

1,043

887

759 25 17 FY ended Sep. 2003 FY ending Sep. 2003 2nd Quarter 1st Quarter 10 Technical Business Technology Business 1,000 FY Ending Sep. 2003 2nd Quarter -5 Technology Business

-20 -17 500

-31 -35

Operating income margin

0 - 1.6% - FY ending Sep. 2003 FY ended第2四半期 Sep. 2002 FY ending Sep. 2003 第2四半期第1四半期 2nd Quarter 2nd Quarter 1st Quarter Technical Business Technology Business Technology Business Remark: The results for Fullcast System Consulting Co., Ltd., which were included in the Other Businesses segment until the fiscal year ended September 2002, appear under Technology Business following a merger completed in October 2002. Earnings Analysis by Technology Business Business Segment (Interim)-Part 1 20

Net sales Operating income (loss)

Unit: Million yen Unit: Million yen Breakdown 80 70 66 FY ending Sep. 2003 FY ending Sep. 2003 Contractual development services 1st Quarter 2nd Quarter 1000 （Oct.-Dec. 2002）（Jan.-Mar. 2003） and other businesses 60 || || 1Q 2Q 363 40 Technical staff 800 dispatching business 223 20 17

600 1Q 2Q 1Q 2Q 0 FY ending Sep. 2003 1Q 2Q 2nd Quarter -5 （Jan.-Mar. 2003） Contractual -20 Eliminations 400 development or indirect services and business 664 695 -31 -40 other businesses -44 FY ending Sep. 2003 -48 200 Technical staff 1st Quarter -53 dispatching business -60（Oct.-Dec. 2002）

Improvement as a result of 0 887 1,058 synergies from disposition or FY ending Sep. 2003 FY ending Sep. 2003 merger of unprofitable divisions 1st Quarter 2nd Quarter （Oct.-Dec. 2002） (Jan.-Mar. 2003） Earnings Analysis by Technology Business Business Segment (Interim)-Part 2 21

Operating income (loss) Percentage-of-completion basis 80

Unit: Million yen 60 Technology Business work-in- process inventory (Mar. 31) 40

¥184 million ※1 20

-5 Additional net sales on a work- 0 74 in-process basis FY ending Sep. 2003 First Half ¥264 million ※2

※1 The company booked work-in-process for the Group in the amount of Additional gross profit on a ¥173 million. The effect of additional gross profit attendant on the work-in- work-in process basis process inventory on consolidated results is negligible. ※2 ※3 Delivery of work-in-process and the booking of sales and gross profit is planned by September 2003. However, there is risk of the work-in-process ¥79 million ※3 not being reflected in the results for the fiscal year ending September 2003 on account of a delay in the booking of sales or other reasons. Technical Expert Utilization Rate Technology Business and Order Unit Prices 22

Capacity utilization ratio Order unit prices 102.0% 120.0% 101.7% 100.0%

98.0% 100.0%

96.0% 80.0% 94.0% 97.3%

92.0% 60.0% Maintained order unit 90.0% prices, and increased capacity utilization ratio 88.0% again 40.0% 86.0% New graduates joined company 84.0% Capacity utilization ratio 20.0% 82.0% Order unit prices (Using average order prices in FY ended Sep. 2001 as 100)

80.0% 0.0% . . n e g. p. t. v. e ly g. . t. . . a n u e c o n n u c n J Feb. Mar. Apr. May July Ja Feb. Mar. Apr. May J u Ju A S O N Dec. Ju A Sep O Nov Dec. Ja Feb. Mar. 2001 2001 2001 2001 2002 2002 2002 2003 2003 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr.

FY ended Sep. 2001 FY ended Sep. 2002 FY ending Sep. 2003 Operating Results and Progress for the Second Quarter (January to March) of the Fiscal Year Ending September 2003

Growth in Operating Results Based on Group Strategy Forecast of Operating Results and Progress Fiscal Year Business Forecast 24

(Unit: Million yen)

FY ending Sep. 2003, full-year (Forecast)

FY ending Sep. 2003 Interim (Results) Net sales 18,717 （51.7％） 35,800 （＋36.0％）

Operating income 1,296 （59.3％） 2,550 (＋71.8％）

Net income 540 （102.4％） 1,170 (＋237.3％）

EPS: Yen 12,393. 73 26,685 .83

ROE: ％ - 14.5

Avg. shares O/S 43,582 43,843 .5 Capital investment 223 800

Depreciation exp. 103 250

Figures in parentheses show the percent change Note: The above plan is the Company’s forecast at the present time; actual results are not guaranteed and may vary. from prior year Reference Materials Company Profile 28

As of March 31, 2003 Company name Fullcast Co., Ltd. P28 会社概要 Established September 14, 1990

Operations commenced October 1, 1992 IPO June 15, 2001 Capital \3,269.9 million Shares outstanding 44,674 shares Head office Fullcast Building, 2-6 Sakuragaoka-cho, Shibuya-ku, Tokyo, Japan CEO Takehito Hirano Business objective Human Resources Solutions Provider

Group Data

Description of business I. Spot Business II. Factory Business III. Technology Business IV. Other Services

Employees 1,009 (Technical staff : 370)

Registered spot staff 701,718

Office network Head office and a national network of 115 branches※

will grow as a human resources solutions company, with workers as the nucleus. Reference Materials Group Overview 29

Company name Fullcast HR Fullcast System Fullcast Factory Co., Fullcast Central Co., Fullcast Sports Fullcast Co., Ltd. Fullcast Lady Co., Ltd. Consulting Co., Ltd. Fullcast With Co., Ltd. Consulting Co., Ltd. Ltd. Ltd. Co., Ltd. Established Sept. 1990Oct. 1997 Mar. 2000 Oct. 1998 Nov. 1999 Sept. 2000 Apr. 2002 June 2000

Segment Spot BusinessSpot Business Technical Business Technical Business Other Businesses Factory Business Factory Business Other Businesses

ST contractual work Executive search and Technical support Computer system Factory line contracting Factory line contracting Strengthening ST contractual work placement services development work work work recruitment ■Logistics Outsourcing Office Division ■Temporary staff ■Business system ■Precision machinery, ■Automobile bodies ■Warehouse work Division ■General agency specializing in development & consulting Electrical machinery and parts Business ■Sanitation & cleaning ■Logistics temporary help technical staff ■Logistics system ■Steel & metals lines ■Events ■Warehouse work ■OA data entry ■Semiconductor development & consulting ■Chemicals & rubber ■Sanitation & ■Filing engineers in particular ■Provision of information ■Textiles, pulp, etc. cleaning ■Reception security services ■Events

Net sales for FY ended Sept. 14,815 mil. yen 3,070 mil. yen 621mil. yen 194 mil. yen 3,113 mil. yen 621mil. yen 4,885 mil. yen - 228 mil. yen 2002 Percentage -Consolidated 100% Consolidated 100% Consolidated 82.4% Consolidated 100% Consolidated 100% Consolidated 55% Consolidated 100% ownership

October 2002 merger January 2003 merger October 2002 merger

Company name Fullcast Factory Fullcast Central Fullcast Sports Fullcast Co., Ltd. Fullcast Office Support Co., Ltd. Fullcast Technology Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Segment Spot Business Spot Business Technology Business Factory Business Factory Business Other Businesses Office-related ST contractual work Business Factory line Factory line Strengthening ST contractual workand temp services Total technical services business lines contracting work contracting work recruitment Executive search and placement services ※ Net sales for Interim period 11,303 mil. yen 659 mil. yen 1,969 mil. yen 3,359 mil. yen 1,920 mil. yen 85 mil. yen of FY ending Sept. 2003 Offices 70 offices 3 offices 13 offices 17 offices 12 offices - Employees 285 22 550, including 370 engineers 93 56 3 ※Remark: Results for the personnel placement business appear under Other Businesses. As of March 31, 2003 Commitment 30

P30 コミットメント

Fullcast’s goal is to be the company with the best disclosure in the liberal HR markets

Inquiries: IR Executives +81-3-3780-9500 President & CEO Takehito Hirano Corporate Officer & GM, Management Planning Dept. Yutaka Kubo IR Manager Shingo Tsukahara

Fullcast’s IR materials have been prepared for the purpose of providing information about the company, and are not a solicitation for investment. Readers are advised to use these materials at their own discretion and are solely responsible for all decisions based on such use. Although every effort has been taken to ensure the accuracy of the information provided herein, Fullcast Co., Ltd.. makes no guarantees with regard to the contents. Fullcast Co., Ltd.. assumes no responsibility for any damages resulting from the use of this information, either directly, indirectly or to any extent, which originates from any cause including but not limited to the accuracy, reliability and safety concerning the text, data or other information herein. Fullcast’s IR materials are copyrighted and use without Fullcast’s express written consent is strictly prohibited. New large-scale buildings Spot Business completed or under construction

New large-scale buildings recently completed or under construction

Ward Project name Completion Floor area (Total ㎡）

Chiyoda-ku Marunouchi Building Sep. 2002 159,838

Sep. 2002 Shinagawa-ku Shinagawa Seaside Forest 188,800 July 2003 Shinjuku-ku Shinjuku Shin-Toshin Project Nov. 2002 163,996

Minato-ku Izumi Garden Tower Nov. 2002 157,379

Minato-ku Shiodome City Center Jan. 2003 187,845

Shibuya-ku Shinjuku Bunka Quinto Building Jan. 2003 87,911

Chiyoda-ku Nihon Kogyo Club Kaikan Eiraku Building Feb. 2003 111,000

Minato-ku Shinagawa East One Tower Mar. 2003 118,387

Chiyoda-ku Jimbocho Mitsui Building Mar. 2003 115,830

Chiyoda-ku IA Garden (Garden Air Tower) Mar. 2003 93,224

Minato-ku Roppongi Hills Apr. 2003 379,944

■Projects managed by Fullcast (Source: Office Market Report 2002, Vol. 23, Ikoma/CB Richard Ellis Corporation) Survey report concerning use of Reference Materials on-premises contract work

Are you considering using dispatch services when contracting for Which do you want to use as a basic service, contract services or product manufacturing is possible? dispatch? 0 204060 0 204060 Want to use only for operations where 30.5% Want to replace all with 7.6% we now use contract services 24.8% dispatch services 13.3% Want to use only for operations where 13.3% Want to continue contract as 67.6% we do not now use contract services 2.9% a base and also use dispatch 69.5% Want to use for operations where we now 20.0% Want to continue dispatch as 7.6% use and do not use contract services 58.1% a base and also use contract 11.4%

17.1% When period is limited to one year (※) Do not want to use No response 10.5% 5.7% When period is not limited 8.6% No response When period is limited to one year (※) 3.8% When period is not limited ※Cannot accept dispatch services continually for over one year for same work in same operation

Issues when accepting contract workers Main products manufactured by sections responding to survey

0 10203040 Medical Protecting worker safety and health 21.9% Automotive products (Final product) Improving dispatch worker skills 32.4% Other products Automotive Increased labor management burden Food products 41.0% Chemical (Parts) Fast, accurate response to changes in production volume 43.8% products （Intermediate Electrical & Maintaining productivity 24.8% products) electronic Cooperation among workers on the line 31.4% Chemical equipment products (Final products) Protecting confidential matters 13.3% （Final products) Other 1.9% Housing & Electrical & construction electronic No particular issues 11.4% materials equipment Iron, steel & (Parts) No response 1.0% metal products

【Summary of the survey】【 Survey objective 】・Survey period - October/November 2002 To survey current use of on-premises contract work, use-based issues and the effects ・Survey method - Distributed the survey form to managers of manufacturing divisions at user firms. Forms were returned by mail of eliminating ban on worker dispatch for production line activities at production facilities after recipients input their responses. in manufacturing industries. ・Target firms - Ten member firms of the Research Study Group Concerning On-premise Contract Firms (Chairman: Hiroki Sato) that agreed to cooperate with the survey (distributed a total of 241 survey forms, ranging from 10 to 50 copies depending upon First Survey Concerning the Use of On-premise Contract Firms at < firm size), and firms under the auspices of the Japan Production Skill Labor Association, excluding 18 firms that are members of the Research Study Group (distributed a total of 200 copies, ranging from 3 to 20 copies depending upon firm size) Report >; conducted by University of Tokyo Institute of Social Science in March 2003 ・Response ratio - received 105 valid responses, a response rate of 23.8% Source: Monthly HR Business (2003.5.1/Vol. 202)

Production Sites Spot Business: Percentage Reference Materials of net sales by industry

Percentage of net sales by industry, 2nd Quarter

FY2002 2nd Qtr. (Jan.-Mar. 2002) FY2003 2nd Qtr. (Jan.-Mar. 2003)

Food products Food products 12.5% 9.6% Miscellaneous Miscellaneous Clothing goods Other goods 3.0% 32.0% 4.0% Clothing Other 6.8% 4.7% 36.3%

IT, consumer IT, consumer electronics and electronics and precision precision equipment equipment 15.4% 24.1% Construction and Transportation and moving equipment Automotive Automotive 9.6% Construction 8.8% 4.1% Transportation Appliances2.4% and moving 6.8% and equipment Appliances 12.6% 4.1% 3.3%

Cellular phones with Parts manufacturers cameras, etc.

Other （Events/Bookbinding and printing/Cleaning/Cosmetics/Pharmaceutical products/Bars & Restaurants/Retail/Office/Leisure/Graphics and music/Sales promotion/Games/Other Group Strategy and Risk Factors and Business Forecast Positive Factors

At FY At FY start Uncertainty (risk) factors start Positive factors ◆ Spot Business ◆ Slowdown in U.S. markets ・More freelance part-time workers ◆ Domestic financial market instability ・Large office building completions ◆ Factory Business Effect on consumer sentiment ・Full-year contribution to earnings from growth of Fullcast Central Co., Ltd. Slump in logistics and manufacturing? ・More orders received as result of brand power

Today Today ◆ 30% medical expense deductible ◆ Plunge in overseas travel because of SARS Total compensation system changes Stimulating domestic travel and consump- Weakening consumer sentiment tion of large-ticket items towards durable goods purchases? Avoid slump in logistics industry Slump in logistics and manufacturing? ◆ Spot Business ・ ◆ Relocations spurred by lower rents after Slowdown in U.S. markets completion of large office buildings ・Weaker North American auto market ・Increased outsourcing as part of firm ・Difficulty in projecting orders for reorganizations including logistics center semiconductor manufacturing consolidations products made in Japan ◆ Factory Business ・ Manufacturing opened to temp staffing Spot Business Freight Movement Index I Business Forecast

Actual and projected domestic shipment volume (by industry)

Jan.-Mar. 2003 actual Apr.-June 2003 projection Freight Freight Firms Breakdown (%)Firms Breakdown (%) Movement Movement Industry responding Incr. Flat Decr. Index responding Incr. Flat Decr. Index Foods and beverages 87156025△ 10872065155 Textiles and clothing 52 12 48 40 △ 28 52 8 54 38 △ 30 Wood products, furniture 41 17 32 51 △ 34 41 12 37 51 △ 39

Manufacturing industries Manufacturing Pulp and paper 48 25 46 29 △ 4 48 21 52 27 △ 6 Chemicals and plastics 93 15 57 28 △ 13 93 14 69 17 △ 3 Ceramics and cement 47 13 28 59 △ 46 47 11 38 51 △ 40 Iron, steel and non-metals 89 34 41 25 9 88 22 51 27 △ 5 Metal products 55 31 38 31 0 55 25 33 42 △ 17 General machinery 91 29 39 325 △ 3 90 14 49 37 △ 23 Electrical machinery 151 30 44 26 4 150 19 43 38 △ 19 Transportation machinery 110 28 56 16 12 110 18 53 29 △ 11 Precision machinery 27 22 63 15 7 27 19 66 15 4 Other 76 22 52 23 △ 4 76 14 58 28 △ 14 Total 967 24 47 29 △ 5 964 17 52 31 △ 14 Wholesale Manufacturing materials 67 9 51 40 △ 31 67 9 60 31 △ 22 Consumables 61204436△ 1661184834△ 16 Total 128 14 48 38 △ 34 128 13 54 33 △ 20 Grand total 1,095 23 47 30 △ 7 1,092 17 52 31 △ 14

Total for main industries that affect the Spot Business △ 43 △ 56

Source: Nittsu Research Center, Inc. (Survey of Firms’ Short-term Logistics Trends, March 2003 ) Spot Business Business Forecast Freight Movement Index II 40 Freight Movement Index for freight movement forecast and actual (expected) results Freight Movement Index ForecastOutlook Second Half plan Actual Risk of an 20 17 anticipates FY initial plan 11 industry 14 downturn 15 13 9 included. 6 1 1 2 2 0 4 △ 6 Fullcast’s △ 8 business △ 11 △ 5 forecast △ 13 △ 7 △ 20 △ 21 △ 8 △ 23 △ 13 △ 12 △△ 2522 △ 14 △ 26

△ 40 △ 34 △ 33 △ 32 Positive effects △ 39 △ 40 1. Increase in outsourcing needs △ 42 △ 48 △ 48 2. Obtain orders based on high quality solutions services 3. Receive orders to handle △ 60 relocations to large buildings

H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 ⅠⅡⅢⅣⅠⅡⅢⅣ Apr.-Sep. Oct.-Mar. Apr.-Sep. Oct.-Mar. Apr.-Sep. Oct.-Mar. Apr.-Sep. Oct.-Mar. Apr.-Sep. Oct.-Mar. Apr.-Sep. Oct.-Mar. Apr.-Sep. Jan.-Mar. Apr.-June July-Sep. Oct.-Dec. Jan.-Mar. Apr.-June July-Sep. Oct.-Dec. Fiscal 1996 Fiscal 1997 Fiscal 1998 Fiscal 1999 Fiscal 2000 Fiscal 2001 Fiscal 2002 Fiscal 2002 Fiscal 2003

Note) Until 2001, the survey was conducted in the first half and second half of each fiscal year. Since Fiscal 2002 the survey has been conducted quarterly. The dotted line is the Freight Movement Index forecast at a point in time before entering each period (the Freight Movement Index for 2003 H2 is the forecast at the time of the current survey). The solid line is the actual and expected Freight Movement Index determined at a point in time during each period (the Freight Movement Index for 2003 H1 is the judgment for the current survey) . Source: Nittsu Research Center, Inc. (Survey of Firms’ Short-term Logistics Trends, March 2003 ) Factory Business Business Forecast Automobile Production Automobile production

(D.I . “Good” - “Bad” % points) 30 Future 25

-5 Already incorporated into -10 Fullcast Central’s plan

-15

-20 ⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡ 2000 2001 2002 2003

Source: Bank of Japan, Short-term Economic Survey of Enterprises in Japan (Large Enterprises: Automobiles) Spot Business Market Share

Industry ranking for the past three years

2000 2001 2002

Market Market Market Rank Company name Net sales Rank Company name Net sales Rank Company name Net sales share share share

％％％

1 Fullcast Co., Ltd. 13,089 23.8 1 The Goodwill Group, Inc. 21,004 32.8 1 The Goodwill Group, Inc. 25,664 35.6

The2 Goodwill Group, Inc. 12,422 22.6 2 Fullcast Co., Ltd. 16,750 26.2 2 Fullcast Co., Ltd. 16,39122.8

3 LINE-UP Co., Ltd. 6,138 11.2 3 UNITY Co., Ltd. 4,323 6.8 3 UNITY Co., Ltd. 5,895 8.2

4 UNITY Co., Ltd. 3,597 6.5 4 ABC Service, Inc. 2,655 4.1 4 ABC Service, Inc. 3,768 5.2

5 ABC Service, Inc. 2,009 3.7 5 Trustwork Co., Ltd. 2,576 4 5 Trustwork Co., Ltd. 3,538 4.9

6 Procast 1,524 2.8 Procast 1,600 2.5 Procast 1,712 2.4

－ Subtotal 38,783 70.5 ― Subtotal 48,908 76.4 ― Subtotal 56,968 79.1

－ Other companies 16,217 29.5 ― Other companies 15,092 23.6 ― Other companies 15,032 20.9

Estimated market size 55,000 100 Estimated market size 64,000 100 Estimated market size 72,000 100 (Notes) 1. Time period (fiscal year) The time periods used for each company vary because each firm uses a different accounting period. Fullcast Co., Ltd. and Procast (September 30); The Goodwill Group, Inc. (June 30); LINE-UP Co., Ltd. (March 31); UNITY Co., Ltd. (December 31); ABC Service, Inc. (August 31); Trustwork, Co., Ltd. (May 31)

2. Scope of target companies Companies in the same industry for which Fullcast has information and that have annual net sales of ¥1.0 billion or more.

3. Survey material sources and publication dates Financial reports released by each company and summaries of materials from Teikoku Databank Ltd. (dated February 2003) for firms that do not publicly disclose operating results.

4. Market share Based on figures calculated by Fullcast.

5. Net sales unit Net sales in the table are shown in units of million yen because of the difficulty obtaining sales data in units of thousand yen. Factory Business Market Share

Industry ranking for the past three years (Unit: Million yen) 2000 2001 2002 Market Market Market Rank Company name Net sales Rank Company name Net sales Rank Company name Net sales share share share ％％％ 1 Crystal Co., Ltd. 108,679 31.5 1 Crystal Co., Ltd. 165,274 41.6 1 Crystal Co., Inc. 137,491 30.1 2 NIKKEN SOGYO Co., Ltd. 50,573 14.7 2 NIKKEN SOGYO Co., Ltd. 75,423 19 2 NIKKEN SOGYO Co., Ltd. 60,821 13.3 3 Keitem Co., Ltd. 25,000 7.2 3 Keitem Co., Ltd. 30,000 7.6 3 Keitem Co., Ltd. 40,000 8.8 4 Nisso Corporation 32,816 9.5 4 Nisso Corporation 46,716 11.8 4 Nisso Corporation 34,787 7.6 5 FUJIWORK Co., Ltd. 17,300 5 5 FUJIWORK Co., Ltd. 21,220 5.3 5 FUJIWORK Co., Ltd. 19,330 4.2 6 Haneda Tuttle Services, Inc. 12,039 3.5 6 Haneda Tuttle Services, Inc. 13,285 3.3 6 Haneda Tuttle Services, Inc. 12,000 2.6 7 Fuji Outsourcing Co., Ltd. 8,000 2.3 7 Nihon Ligament Co, Ltd. 7,758 2 7 Fuji Outsourcing Co., Ltd. 11,603 2.5

－ Fullcast Factory Co., Ltd. 1,509 0.4 － Fullcast Factory Co., Ltd. 3,460 0.9 － Fullcast Factory Co., Lt.d 5,824 1.3 00 － Subtotal 255,916 74.2 Subtotal 363,136 91.5 Subtotal 321,856 70.5 － Other companies 89,084 25.8 Other companies 33,864 8.5 Other companies 134,644 29.5 Estimated market size 345,000 100 Estimated market size 397,000 100 Estimated market size 456,500 100 (Notes) 1. Time period (fiscal year) The time periods used for each company vary because each firm uses a different accounting period. Fullcast Co., Ltd. and FUJIWORK Co., Ltd. (September 31); Crystal Co., Ltd., NIKKEN SOGYO Co., Ltd., Nisso Corporation,Haneda Tuttle Services, Inc. and Fuji Outsourcing Co., Ltd. (March 31); Keitem Co., Ltd. (August 31).

2. Scope of target companies Companies in the same industry for which Fullcast has information and that have annual net sales of ¥1.0 billion or more.

3. Survey material sources and publication dates Financial reports released by each company and summaries of materials from Teikoku Databank Ltd.. (dated February 2003)for firms that do not publicly disclose operating results.

4. Market share According to Asahi Business Plaza Magazine total net sales for the 15 largest companies in fiscal 1999 were approximately ¥260 billion, and Fullcast estimates the total market size was about ¥300 billion. Although the magazine assumed annual market growth to be 17.7%, considering recent economic circumstances the estimated market size shown assumes annual market growth of 15%.

5. Net sales unit Net sales in the table are shown in units of million yen because of the difficulty obtaining sales data in units of thousand yen. Technology Business Market Share

Industry ranking for the past three years (Unit: Million yen) 2000 2001 2002 Market Market Market Rank Company nameNet sales Rank Company name Net sales Rank Company name Net sales share share share ％％％ 1 Meitec Corporation 50,773 12.3 1 Meitec Corporation 55,542 11.6 1 Meitec Corporation 55,637 11.1 2 Forum Engineering Inc. 14,272 3.4 2 Forum Engineering Inc. 18,478 3.9 2 Forum Engineering Inc. 21,080 4.2 3 Altech Corporation 8,352 2 3 Altech Corporation 10,521 2.2 3 Altech Corporation 12,320 2.5 4 Japan Outsourcing Inc. 6,837 1.7 4 Japan Outsourcing Inc. 6,914 1.4 4 Japan Outsourcing Inc. 6,992 1.4 5 General Engineering Co., Ltd. 3,829 0.9 5 General Engineering Co., Ltd. 4,344 0.9 5 General Engineering Co., Ltd. 4,453 0.9 6 Fullcast Technology Co., Ltd. 1,998 0.5 6 Fullcast Technology Co., Ltd. 3,045 0.6 6 Fullcast Technology Co., Ltd. 3,284 0.7 7 Nihon Technical Group 1,210 0.3 7 Nihon Technical Group 1,865 0.4 7 Nihon Technical Group 1,500 0.3 － Subtotal 87,271 21.1 ― Subtotal 100,709 21.1 ― Subtotal 105,266 21.1 － Other companies 326,729 78.9 ― Other companies 377,291 78.9 ― Other companies 394,734 78.9 Estimated market size 414,000 100 Estimated market size 478,000 100 Estimated market size 500,000 100

(Notes) 1. Time period (fiscal year) The time periods used for each company vary because each firm uses a different accounting period. Fullcast Co., Ltd. (September 30); Meitec Corp., Forum Engineering Inc., Japan Outsourcing Inc. and General Engineering Co., Ltd. (March 31); Altech Corporation (December 31); Nihon Technical Group (May 31)

2. Scope of target companies Companies in the same industry for which Fullcast has information and that have annual net sales of ¥1.0 billion or more.

3. Survey material sources and publication dates Financial reports released by each company and summaries of materials from Teikoku Databank Ltd.. (dated February 2003) for firms that do not publicly disclose operating results.

4. Market share Fullcast assumes the estimated market size in 2000 was ¥500 billion, and has calculated the estimated market size shown for each year in proportion to the market shares of the annual net sales of the top 7 companies shown in the table.

5. Net sales unit Net sales in the table are shown in units of million yen because of the difficulty obtaining sales data in units of thousand yen. ----- 経営目標 Management Objectives

FY ending Sept. 2004

・Consolidated return on equity (ROE）: 20％・Consolidated net sales: 50.0 billion yen Conclusion Market Projections 26

Deregulation Actual & projected size of the domestic outsourcing & services market

Unit: 100 mil. yen, % Fiscal year Summary Mgmt. & info. systems 20,390 29,570 41,450 59,100 76,840 92,200 % of prior 100year - 145.0% 140.2% 142.6% 130.0% 120.0% 1999/12/1 Sales/Marketingmillion 6,210 7,310 8,790 10,990 14,290 19,280 % of prior year - 117.7% 120.2% 125.0% 130.0% 134.9% OtherOther yen 2000 2001 2002 2003 2004 2005 In principle, total deregulation of Personnel/HR/Welfare10,790 13,370 22,390 32,620 44,030 57,240 Facility management the HR business % of prior year - 123.9% 167.5% 145.7% 135.0% 130.0% Facil

Admin./Acctng./Finance1,930 2,150 2,390 2,670 3,070 3,680 % of prior year - 111.4% 111.2% 111.7% 115.0% 119.9% Mfg./Dev. & Mfg./Devel. & 2000/12/1 Mfg./Dev. & design/Log.12,140 12,710 13,680 15,040 17,300 20,760 design/Log. % of prior year - 104.7% 107.6% 109.9% 115.0% 120.0% design/Logistics Facility management 360 380 430 650 1,030 1,750 % of prior year - 105.6% 113.2% 151.2% 158.5% 169.9% Full opening of the Admin./Acctng./ Other 180 180 200 220 250 300 Admin./Acctg./Finance % of prior year 100.0% 111.1% 110.0% 113.6% 120.0% Finance temp-to-perm business 250,000Total 52,000 65,670 89,330 121,290 156,810 195,210 % of prior year - 126.3% 136.0% 135.8% 129.3% 124.5% Personnel/HR/ 2003/4～ PersonWelfare

300 200,000 Sales/Marketing 1,750 ・Expected lifting of restrictions 20,760 on factory line contracting 3,680 Mgmt. & 250 Mgmt. & information ・Easing of fixed-term labor 1,030info. systems systems 17,300 150,000 contract 57,240 3,070 220 650 15,040 44,030 2,670 19,280 100,000 200 430 32,620 13,680 14,290 180 2,390 10,990 380 22,390 180 12,710 360 2,150 50,000 12,140 13,370 8,790 92,200 1,930 76,840 7,310 10,790 59,100 Annual growth 6,210 41,450 29,570 20,390

rate of about 15% 0 2000 2001 2002 2003 2004 2005 Source: Outsourcing and services market size―Fuji Chimera Research Institute, based on total related sales of firms covered by the survey, and estimates Earnings and Market Conclusion Share Objectives 27

Actual & projected size of the domestic outsourcing & services Source: Fuji Chimera Research Institute, estimates manufacturing, development and design and logistics market

100 mil. yen 20,000 Fullcast Group’s market share 3.0％ 3.0% 2.1% 1.9% 2.5% 15,000 1.8% 2.0% 1.4% 17,300 15,040 10,000 13,680 1.5% 12,710 12,140 1.0% 5,000 0.5%

0 0.0% (Million yen) 2000年Consolidated 2000年 2001年 2002年 2003年 2004年 Profit margin 60,000 SG&A expenses 35.0 31.1 50,000 （%） f 30.0 50,000 26.1 n o 25.0 25.5 tio ue iza val im er v ax old 25.0 40,000 M reh Consolidated sha Net sales current income 20.0 30,000 35,800 15.0 26,319 20,000 23,925 10.0 16,934 10,000 5,000 10,275 1,764 1,484 2,550 5.0 22 1,524 0 0.0 1999 2000 2001 2002 2003(Proj.) 2004(Proj.) Note: The above plan is the Company’s plan at the present time. Actual results are not guaranteed and may vary.