A Message from GROUP CEO Yasuyuki Nambu

TO OUR SHAREHOLDERS

This year marks the 35th anniversary of Pasona Group Inc.'s founding. As we celebrate this historic milestone, I would like to thank each and every shareholder for their invaluable support and kind understanding.

From a "Company-dependent Society" to a "Self-reliant Society"
Both from a social and economic perspective Japan today stands at a major turning point. After completing its recovery in the aftermath of the Second World War, the domestic economy enjoyed a period of high growth between 1967 and 1968. It was at this time, that the nation realized full employment. Underpinned by an established employment system that for economic reasons favored lifetime employment and promotion by seniority, Japan's social structure was at this time distinguished by its male-female division of labor.

With the onset of a global recession in 2008, and the burden of a declining birthrate coupled with an aging population, Japan's social and employment system that was grounded in the assumption of steady growth came under severe pressure for a major overhaul and review.

The era of joining one company and being secure for life is now all in the past. Henceforth, the structure of society must undergo a radical transformation, one in which individuals rather than entrusting their futures solely to the corporate sector endeavor to hone their own skills and capabilities to carve out independent lifestyles and purpose. Breaking away from a "company-dependent society," it is imperative that governments and companies support efforts to realize an "individual-centric, self-reliant society." In this regard, I am convinced that we are entering a period in which society must and will undergo a major evolution. No longer will individuals rely on the corporate sector to fashion the way in which they live. Taking ownership, individuals will choose their own life- and work styles to create a more conducive and flexible society.

Confronted as we are by this critical period of social and economic change, Pasona Group is reassessing its role, purpose and purport. With a newfound resolve, we are therefore pushing vigorously forward with efforts to create new and innovative employment opportunities.

Pasona Group's Role Going Forward
Employment conditions in Japan today remain extremely harsh. Buffeted by a declining birthrate and aging population as well as contraction in the overall workforce, the effective application of women, who will play a vital role in both the service and intellectual industries, the reemployment of the middle-aged and elderly, who possess outstanding expertise and experience, and support for young career-oriented employees, who are highly susceptible to fluctuations in the environment, are issues that will become increasingly important. At the same time, initiatives that help to promote work life balance as well as workforce diversity will form a more critical component of a company's management going into the future.

In this context, Pasona Group will this year merge the temporary staffing and contracting operations of Pasona Inc. with the placement, recruiting and outplacement activities of Pasona Career Inc. With the rebirth of a newly constituted Pasona Inc., we plan to provide to our client firms speedy, one-stop human resources services as a "Human Resources Solution Partner."

Complementing this endeavor, we will consolidate certain Group companies at a freshly established Pasona Group headquarters located in Otemachi, Tokyo. Harnessing the full prowess of the Group's infrastructure and resources, this headquarters will be staffed with Group career counselors whose responsibilities will be to provide comprehensive support to job seekers and employees wishing to further develop their careers. Our mission extends well beyond the mere introduction of employment opportunities. Our mandate is to deliver in partnership with customers the necessary infrastructure that allows individuals to design an optimal work and life style. The Pasona Group's role is therefore to provide lifelong assistance, delivering support that allows job seekers to work with vitality and well-being.

An Employment Creation Company with a Strong Sense of Passion and Mission
At the beginning of the year, I mentioned in a written address the concepts of "Wisdom, Benevolence and Bravery," drawing from the words of the Chinese philosopher Confucius "The wise have no delusion. The benevolent have no worry. The brave have no fear." With wisdom and knowledge, we gain a steadfast purpose and direction - conviction. With a pure and open heart, we are not swayed by the irreverent voices of others - devotion. With determination and courage, we have nothing to fear - peace of mind. Marshalling the wisdom accumulated over the past 34 years, each and every member of the Pasona Group is dedicated to meeting the challenges that lie ahead. With a strong sense of mission, we will strive passionately to realize a truly prosperous society that positions the individual as the principal. Our goal is to ensure an environment in which all employees can excel working with a true spirit of excitement and vitality. As we work toward achieving these objectives, we kindly request your continued support and understanding.

February 2010