A Message from GROUP CEO Yasuyuki Nambu

TO OUR SHAREHOLDERS

It is now almost six months since Japan was devastated by the Great East Japan Earthquake. I would again like to take this opportunity to convey my heartfelt condolences to those who lost their lives to this disaster and my sympathies to all who continue to suffer hardship and difficulty.

I am pleased to announce that all of the Group's offices and branches are fully operational. We are working in unison to help create employment across the hardest hit areas and to provide nationwide opportunities for work for disaster victims.

Disaster Relief and Support in the Wake of the Earthquake
Since March 11, 2011, both the Company and its employees have thought long and hard about how best to contribute to relief and support efforts aligning their actions accordingly.

In the immediate aftermath of the earthquake, a designated division, Disaster Work Rescue, was established at the end of March to help provide employment assistance to those who lost their jobs in affected areas. In the ensuing period, and as a part of the Group's reconstruction support efforts, we have continued to visit evacuation centers and local commercial and industrial associations to provide wide-ranging assistance. Among a variety of initiatives, steps have been taken to set up inquiry counters to help individuals and businesses continue their work. We are also striving to encourage victims of the disaster through health and nursing care as well as musical activities. Shortly after the earthquake disaster, our focus was on the delivery of relief supplies and essential items including meals. Together with a broad spectrum of volunteer activities, we also continue to conduct charity events and engage in donation activities in and outside Japan.

As one example of the depth and scope of the Group's support activities, we participated in plans to bring the festivals of six prefectures in the Tohoku region to Sendai and to be held collectively as the Tohoku Rokkon Festival on July 16 and 17. In addition to convening a charity flea market, steps were also taken to help plan the Tohoku Rokkon Festival Smile Bus Tour enabling victims of the earthquake living in evacuation centers to attend the Festival.

Renewed Initiatives Focusing on Human Resource Training and Revitalizing Regional Areas
Under contract from the prefectural government, the Pasona Group launched Cococala Mura, an initiative aimed at revitalizing local communities beginning with Awaji Island in Hyogo Prefecture from April 2011. Cococala Mura provides a new human resource training framework to help young aspiring artisans to follow their pursuits in such fields as music and the performing arts. By taking ownership of efforts to hone their skills and abilities, young artists are encouraged to obtain a variety of specialist knowledge and to help revitalize the region.

Cococala Mura has also accepted young adults from areas affected by the earthquake disaster. In addition to artistic pursuits, zones within Cococala Mura include business, agriculture and tourism. The goals are to help the next generation obtain useful skills and to nurture Tohoku reconstruction producers who can return to their respective regions and help in recovery efforts. Armed with the skills gained in revitalizing Awaji Island, it is our wish that these individuals will play a leading role in reenergizing areas devastated by the recent disaster.

Furthermore, the Pasona Group is working actively with regional public authorities across the length and breadth of Japan including the cities of Osaka, Kobe and Sapporo to help victims of the earthquake to find employment.

Activities in the Current Fiscal Year
Following the Great East Japan Earthquake, affected and surrounding areas were newly confronted by related issues including shortfalls in the supply of electric power. This is expected to further accelerate the shift of operations by the corporate sector to offshore locations and moves to decentralize domestic networks as a countermeasure against future disasters.

Under these circumstances, the Pasona Group will pursue the following strategic priorities during the fiscal year ending May 31, 2012 while upgrading and expanding its solutions.

First, we will proactively develop our Global Sourcing business. While redoubling our efforts toward promoting overseas-related businesses, we will aggressively establish new branches and bolster our service content and lineup. At the same time, we will commence internal global human resource training and foster personnel who are able to genuinely excel on the world stage while meeting the wide-ranging needs of the corporate sector.

Second, we will strengthen and expand the Insourcing business. While taking full advantage of our accumulated know-how, we will further expand the scope of our business and promote the establishment of specialist subsidiary companies to better consolidate and pool our expertise in marketing and sales as well as patent-related fields.

Third, we will expand our Business Process Outsourcing (BPO) business. The Pasona Group will set up a new BPO Center in Osaka to respond to the growing need for risk diversification following the earthquake disaster and expand business activities in the Kansai area.

Since its foundation, the Pasona Group has maintained an unwavering corporate philosophy and commitment to providing "Solutions to Society's Problems." Our business activities are accordingly grounded in the drive to build a society in which individuals can create their own comfortable lifestyles and freely choose the kind of work they wish to do irrespective of age and gender.

Our mission is to harness the potential of the individual. Put simply, our aspirations lie in achieving a society in which its members can create a rich and fulfilling life plan. In order to achieve this overarching mission, we are working to help build a new social infrastructure and to engage in business activities that reinforce our position as an integral member of that society. As we work toward achieving our goals, we kindly request your continued support and understanding.

August 2011