Review of

Fullcast

Consolidated Operating ResultsFirst Quarter, Fiscal Year Ending September 2003

People FULLCAST Jobs

Ｅ

AgendaAgenda■ Highlights of the First Quarter (October to December), 　　Fiscal Year Ending September 2003

■ Operating Results and Progress for the First Quarter

(October to December) of the Fiscal Year Ending September 2003

■ Operating Results by Business Segment for the First Quarter (October to December) of the Fiscal Year Ending September 2003

・

Spot Business

・

Factory Business

・

Technical Business

■ Conclusion

6 ,152 6 ,2305 ,877 5 ,666

6 ,140 6 ,198 6 ,401

7 ,581

9 ,067

0

1 ,000

2 ,000

3 ,000

4 ,000

5 ,000

6 ,000

7 ,000

8 ,000

9 ,000

10 ,000

Oct.-Dec . Jan .-Mar . Apr .-June Ju ly-Sep. Oc t .-Dec . Jan .-Mar . Apr .-June Ju ly-Sep. Oc t .-Dec .

2HighlightHighlight1st Qtr., Fiscal Year Ending September 2003

19.6%18.4%

-5.7%-3.6%

8.4%

0.9%3.3%

1.3%

-20.0%

0.0%

20.0%

Consolidated Net Sales

Percent change

compared to same period of prior year

Unit: Million yen

20001st Qtr.

20012nd Qtr.

20013rd Qtr.

20014th Qtr.

20011st Qtr.

20022nd Qtr.

20023rd Qtr.

20024th Qtr.

20021st Qtr.

FY ended Sep. 2001 FY ended Sep. 2002 FY ending Sep. 2003

1,318

1,760 1,6631,518 1,520

1,634 1,669 1,701

2,014

0

500

1 ,000

1 ,500

2 ,000

2 ,500

3 ,000

3 ,500

4 ,000

4 ,500

5 ,000

Oct .-Dec . Jan .-Mar . Apr .-June Ju ly-Sep. Oc t .-Dec . Jan .-Mar . Apr .-June Ju ly-Sep. Oc t .-Dec .

22.2%22.4%

26.1%26.4%24.8%

26.8%28.3%

21.4%

28.3%

0.0%

10.0%

20.0%

30.0%

3Consolidated SG&A Expenses

FY ended Sep. 2001 FY ended Sep. 2002

20001st Qtr.

20012nd Qtr.

20013rd Qtr.

20014th Qtr.

20011st Qtr.

20022nd Qtr.

20023rd Qtr.

20024th Qtr.

SG&A expenses decreased despite an increase in the

number of offices.

20021st Qtr.

FY ending Sep. 2003

HighlightHighlight1st Qtr., Fiscal Year Ending September 2003

Unit: Million yenSG&A

expenses as % of net

sales

833

399

308

367

419

372

179

540

637

0

100

200

300

400

500

600

700

800

900

Oct .-Dec . Jan .-Mar . Apr .-June Ju ly-Sep. Oc t .-Dec . Jan .-Mar . Apr .-June Ju ly-Sep. Oc t .-Dec .

UP 18％

4

Unit: Million yen

FY ended Sep. 2001 FY ended Sep. 2002

20001st Qtr.

20012nd Qtr.

20013rd Qtr.

20014th Qtr.

20011st Qtr.

20022nd Qtr.

20023rd Qtr.

20024th Qtr.

20021st Qtr.

FY ending Sep. 2003

Consolidated Operating IncomeHighlightHighlight1st Qtr., Fiscal Year Ending September 2003

5

0

20

40

50

60

70

80

＋540 ＋637

SpotBusiness ＋239

FactoryBusiness

＋2 OtherBusinesses－77

TechnologyBusiness－59

Eliminations or Company Total

－8

Spot BusinessThe 11 offices opened in the fourth quarter of the previous year fully contributed to first-quarter results.

Technology BusinessThe task is to increase

operating income.

FY ended Sep. 20024th Quarter

Operating income

FY ending Sep. 20031st Quarter

Operating income

Analysis of Factors CausingChange in Operating Income

HighlightHighlight1st Qtr., Fiscal Year Ending September 2003

Unit: Million yen

7 .0%

6 .5%

5 .2%

13 .5%

6 .4%6 .8% 6 .0%

2 .8%

7 .1%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

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

6Operating Income Margin (%)

FY ended Sep. 2001 FY ended Sep. 2002

20001st Qtr.

20012nd Qtr.

20013rd Qtr.

20014th Qtr.

20011st Qtr.

20022nd Qtr.

20023rd Qtr.

20024th Qtr.

20021st Qtr.

FY ending Sep. 2003

HighlightHighlight1st Qtr., Fiscal Year Ending September 2003

27.1%

9.8%

1.0%

62.1%

67.2%

2.2%

13.3%

17.3%

Commentary on financial results for the first quarter, FY ending Sep. 30, 2003

(Oct. to Dec. 2001)

(Oct. to Dec. 2002)

7Financial Results

Operating results for the first quarter, FY ended Sep. 2002

Operating results for 1Q of FY ending Sep. 2003

Net sales % Net sales %■Spot 4,127 67.2% 5,626 62.1% 136.3%

■Factory 1,060 17.3% 2,458 27.1% 231.9%

■ Technology 819 13.3% 887 9.8% 108.3%

■Other 134 2.2% 95 1.0% 70.9%

Total 6,140 100.0% 9,066 100.0% 147.7%

FY ending 9/2003(Oct.-Dec.)

FY ended 9/2002(Oct.-Dec.) Compared to

prior FY

Spot Business

◆ Client streamlining of physical distribution centers ◆ Increased needs for effective use of outsourcing and 　

trend toward oligopoly 　　　　　　　　

◆ Provision of services unique to the Fullcast Group

Factory Business

◆ Opening of new recruitment offices (five locations) 　

Favorable growth at FC Central

Technology Business

◆ Recovery in capacity utilization in technical expert dispatching

◆ Poor showing for the contractual development services business

First Quarter

■ Increase sales by adding strategic, highly cost-effective offices

■ Expand business territories through M&A, business alliances

■Strengthen governance functions

　　・Monitoring of operations by outside directors

　　・

Increase disclosure speed, etc.

Future strategies Unit: Million yen

HighlightHighlight1st Qtr., Fiscal Year Ending September 2003

Operating Results by Segment First Quarter, Fiscal Year Ending September 30, 2003

Spot Business

Provision of High Value-Added Services and Transition to a

Healthy Revenue Trend

9Spot BusinessSpot Business

4,426

5,626

0

1,000

2,000

3,000

4,000

5,000

6,000

第4四半期 第1四半期

470

709

0

250

500

750

第4四半期 第1四半期

UP 27％ UP 51％

FY ended Sep. 20024th Quarter

FY ending Sep. 20031st Quarter

FY ended Sep. 20024th Quarter

FY ending Sep. 20031st Quarter

10.6% 12.6%

Earnings Comparison （02.4Q・03.1Q)

Operating incomeNet salesUnit: Million yen Unit: Million yen

Operating income margin

10

Oct. -4.5 -15.5

Nov. 4.5 -8.2

Dec. -1.0 -12.0

Jan. 0.2 -9.6

Feb. -1.2 -5.8

Mar. -0.4 -6.1

Apr. 4.2 -4.2

May 9.3 -6.2

June 13.4 1.7

July 16.6 -2.2

Aug. 39.6 28.5

Sep. 49.0 33.7

Oct. 47.9 ※38.1

Nov. 45.0 ※35.1

Dec. 50.2 ※35.9

Conso lidated

2002

※Indicates Spot Business prior-year comparison

-20.0

-10.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Consolidated

Non-consolidated/Spot

FY ended Sep. 2002 1Q of FY ending Sep. 2003

Oct. Nov. Dec. Jan. Feb. Mar. Apr . May June July Aug. Sep. Oct. Nov. Dec.

Effect of sales organization reforms implemented in April

Fullcast’s monthly net salesresults compared to prior year

FY ended Sep. 2002

FY ending Sep. 2003

Non-

consolidated

Unit: %

Net Sales Compared to Prior YearSpot BusinessSpot Business

11

0

50

100

150

200

250

300

July 2002 Aug. 2002 Sep. 2002 Oct. 2002 Nov. 2002 Dec. 2002

0

5

10

15

20

25

30

35

40

45

50Net sales

Number of client companies

Replacement of regular employee operations

Change in customized client solutions

Provision of high-quality value-added services

0

50

100

150

200

250

300

350

400

Oct. 20 0 1

Nov. 20 0 1

Dec . 20 0 1

Jan. 2

0 0 2

Feb. 20 0 2

Mar . 2 0 0 2

Apr. 2 0 0 2

May 2 0 0 2

June 2 0 0 2

Ju ly 20 0 2

Au g. 20 0 2

S ep. 20 0 2

0

20

40

60

80

100

120

140

160

Change in net sales

Total number of locations

◆

◆

◆

High-quality SolutionsSpot BusinessSpot Business

Net sales and number of officesUnit: Million yen Unit: Offices

Unit: OfficesUnit: Million yen

97.5%

100.8%

99.2%

99.8%

104.7%

104.8%

106.9%

122.8%

123.0%124.9%

117.6% 114.4%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

111.1%

100.0%

113.0%

93.8%

78.8%73.6%

71.6%55.3%

114.0%101.3%

106.6%

109.7%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec.

12

During the first quarter (Oct. to Dec.), Fullcast focused on uncovering latent demand at existing clients.

2002

Number of RegisteredCustomer Companies

Number of spot transaction customer companies compared to prior year

Number of newly registered spot business companies compared to prior year

Compared to prior year

Spot BusinessSpot Business

Compared to prior year

Stable Growth in the Automotive Sector

Operating Results by Segment First Quarter, Fiscal Year Ending September 30, 2003

Factory Business

9799

0

50

100

第4四半期 第1四半期

14Factory BusinessFactory Business

1,999

2,458

0

500

1,000

1,500

2,000

2,500

第4四半期 第1四半期

UP 23％UP 2％

4.8% 4.0%

Net sales Operating incomeUnit: Million yen

FY ended Sep. 20024th Quarter

FY ending Sep. 20031st Quarter

FY ended Sep. 20024th Quarter

FY ending Sep. 20031st Quarter

Operating income margin

Earnings Comparison （02.4Q・03.1Q)

Unit: Million yen

15

FY ended Sep. 20024th Quarter

Operating income

0

25

50

75

100

125

+96 +99

+26

Decrease in gross profit at Fullcast Factory

Increase in SG&A expenses at Fullcast Factory

－40

－31

+84

+11

－47

Personnel reinforcement attendant on business expansion

Analysis of Factors CausingChange in Operating Income

Increase in net sales at Fullcast Factory

Increase in net sales at Fullcast

Central

Fullcast Central expansion of business and

higher SG&A expenses

FY ending Sep. 20031st Quarter

Operating income

Unit: Million yen

Factory BusinessFactory Business

Increase in gross profit at

Fullcast Central

Warehouse

4.3%

Automotive

22.4%

Wood

products

18.6%

Machinery

10.9%

Electron

16.6%

Technical

4.8%

Other

22.5%

Machinery9.8%

Warehouse3.0%

Automotive40.8%

Foodproducts

15.9%

Electron11.6%

Technical2.9%

Other15.8%

16

Sales contribution by industry, FY ended Sep. 2002

Sales contribution by industry, 1Q (Oct. to Dec.) of FY ending Sep. 2003

FY ended Sep. 2002, full year

FY ended Sep. 2002, Oct. to Dec.

Favorable growth at Fullcast Central62.2％ 61.8％

Increased diversification of client companies

Percentage of Net Salesby Industry

Percent accounted for by the top 20 companies

Factory BusinessFactory Business

Disposition of Unprofitable Divisions as a Rapid Response to a Slump in the

Contractual Development Services Sector

Operating Results by Segment First Quarter, Fiscal Year Ending September 30, 2003

Technology Business

28

-31

-40

-20

0

20

40

第4四半期

18Technology BusinessTechnology Business

896 887

0

500

1,000

第4四半期FY ended Sep. 20024th Quarter

Technical Business

FY ending Sep. 20031st Quarter

Technology Business

3.2% -

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 on account of a merger conducted in October 2002.

Earnings and Operating IncomeComparison （02.4Q・03.1Q)

Net sales Operating income (loss)Unit: Million yen Unit: Million yen

FY ended Sep. 20024th Quarter

Technical Business

FY ending Sep. 20031st Quarter

Technology Business

Operating income margin

-31

191Q Income Analysis by Business Segment—Part 1

887

0

500

1,000

Net sales Operating income (loss)

FY ending Sep. 20031st Quarter

Technology Business

FY ending Sep. 20031st Quarter

Synergy from disposition or merging of unprofitable divisions to come!

664

223

Breakdown

Contractual development services and other businesses

Technical personnel dispatch business

-44

-53

66

-55

-35

-15

5

25

Breakdown

Elimination or indirect business

Technical personnel dispatch business

Technology BusinessTechnology Business

Unit: Million yen Unit: Million yen

Contractual development services and other businesses

-31

1Q Income Analysis by Business Segment—Part 2

Operating income (loss)

FY ending Sep. 20031st Quarter

20

0

20

Additional gross profit on a work-in- process basis

Percentage-of-completion basis

Technology Business work-in- process inventory (end-December)

Additional net sales on a work- in-process basis

173 million yen

224 million yen

51 million yen ※3

※1 Work-in-process inventory for the Group in the amount of 170 million yen

has been booked. The effect of additional gross profit attendant

on the work-in-

process inventory on the consolidated results is negligible. ※2, ※3 Delivery of work in process and the booking of sales is planned by September 2003. However, there is risk of the work in process 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.

※1

※2

20Technology BusinessTechnology Business

Unit: Million yen

80.0%

82.0%

84.0%

86.0%

88.0%

90.0%

92.0%

94.0%

96.0%

98.0%

100.0%

102.0%

10月 11月 12月 1月 2月 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 4月 5月 6月 7月 8月 9月 10月 11月 12月

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

稼働率

受注単価

21

96.0%

99.0%

Capacity utilization ratioMaintained order unit prices, and increased

capacity utilization ratio

Order unit prices

Technical Staff Utilization Rate and Order Unit Prices

New graduate employees joined company

FY ended Sep. 2001 FY ended Sep. 2002

20001st Qtr.

20012nd Qtr.

20013rd Qtr.

20014th Qtr.

20011st Qtr.

20022nd Qtr.

20023rd Qtr.

20024th Qtr.

20021st Qtr.

FY ending Sep. 2003

（Using average order prices in FY ended Sep. 2001 as 100)

Capacity utilization ratio

Order unit prices

Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec.

Technology BusinessTechnology Business

Operating Results and Progress for the First Quarter (October to December) of the Fiscal Year Ending

September 2003

Continuous Growth in Operating Results from the Fourth Quarter of

the Previous Fiscal Year

23Operating Results Operating Results and Progressand Progress

1Q of FY ending Sep. 2003Full year, FY ending Sep. 2003 (forecast)

Net sales 9,066 【28.3%】 32,000 （＋21.5％）

Operating income 672 【29.9%】 2,250 (＋51.6％）

Net income 331 【28.2%】 1,100 (＋217.9％）

EPS: Yen 7,637 【30.2%】 25,318

ROE: ％ - 13.8

Shares O/S 43,446 ※ 43,446 ※

Capital investment 59 800

Depreciation exp. 46 【18.4%】 250

※

No. of shares O/S on Sep. 30, 2002

Fiscal Year Outlook

Unit: Million yen Figures in parentheses show the percent change from prior year.

Note: The above plan is the Company’s outlook at the present time. Actual results are not guaranteed and may vary.

Figures in parentheses show change from prior year.

24Group Overview Reference InformationReference Information

Company nameFullcast Co., Ltd. Fullcast Office Support Co., Ltd. Fullcast Technology Co., Ltd. Fullcast Factory

Co., Ltd.Fullcast Central

Co., Ltd.Fullcast Sports

Co., Ltd.

Segment Spot Business Spot Business Technology Business Factory Business Factory Business Other BusinessOf f ice-related ST contractual work and

temp serv ices

Executive search and placement service※

Net sales for 1Q of FYending Sept. 2003 5,633 mil. yen 310 mil. yen 912 mil. yen 1,568 mil. yen 899 mil. yen 36 mil. yen

Employees 62 2 15 17 11 -

Offices 282 18 564, including 490 engineers 94 53 3

Factory linecontracting w ork

Strengtheningthe

recruitmentBusiness lines ST contractual w ork Total technical services business

Factory linecontracting w ork

Company nameFullcast Co., Ltd. Fullcast HR

Consulting Co., Ltd.Fullcast With Co., Ltd. Fullcast System

Consulting Co., Ltd.Fullcast Factory

Co., Ltd.Fullcast Central

Co., LtdFullcast Sports

Co., Ltd.Commenced

operationsSept. 1990 Mar. 2000 Oct. 1998 Nov. 1999 Sept. 2000 Apr. 2002 Jun. 2000

Segment Spot Business Technical Business Technical Business Other Business Factory Business Factory Business Other Business

ST contractual w ork Executive searchand placement

Technical supportserv ices

Computer sy stemdev elopment work

Factory line contractingwork

Factory line contractingwork

Strengthening therecruitment

■Logistics■Warehouse work■Sanitation & cleaning■Ev ents

Outsourcing Div ision■Logistics■Warehouse work■Sanitation &cleaning■Ev ents

Of f ice Div ision■Generaltemporary help■ＯＡ data entry■Filing■Reception

■Temporary staf fagency specializing intechnical staf f■Semiconductorengineers in particular

■Business sy stemdev elopment and consulting■Logistics sy stemdev elopment and consulting■Prov ision of inf ormationsecurity serv ices

■Precision machinery■Steel & metals■Chemicals & rubber■Textiles, pulp, etc.

■Automobile bodies andparts

Net sales forFY ended Sept.

200214,815 mil. yen 3,070 mil. yen 621 mil. yen 194 mil. yen 3,113 mil. yen 621 mil. yen 4,885 mil. yen - 228 mil. yen

Percentageownership - Consolidated 100% Consolidated 82.4% Consolidated 100% Consolidated 100% Consolidated 55%

Consolidated100%

Employees 48 10 2 - 14 - 16 6 -

Offices 242 39 20 13 481, including 431engineers

64 97 35 3

Oct. 1997

Spot Business

ST contractual w ork

Fullcast Lady Co., Ltd.

Consolidated 100%

Business lines

October 2002 merger January 2003 merger October 2002 merger

※Remark: Results for the personnel placement business appear under Other Businesses.

25CommitmentCommitment

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

http：//www.fullcast.co.jp／e-mail：IR@ms1.fullcast.co.jp

IR Executives

　

Takehito Hirano

Yutaka KuboIR Manager:　　　　Shingo Tsukahara

President & CEOCorporate Officer & GM,Management Planning Department