SHL-JAPAN Ltd.
Year Ending September 2014
Non-consolidated Financial and Operating Results (Excerpt) for the Third Quarter Ended
June 30, 2014 (J-GAAP basis)
August 11, 2014

 Registered on Tokyo Stock Exchange

Listed Company Name: SHL-JAPAN Ltd.
Securities Code4327

URL:

http://www.shl.co.jp/

Representative:

Manabu Nara, Managing Director

Contact:

Naohiro Nakamura, Executive Director

Date to submit the Quarterly Securities Report:

TEL:+81-3-5385-8781

August 14,2014
㸫Date to start distributing dividends:

The original disclosure in Japanese was released on July 29, 2014 at 16:10 (GMT+9)
1. Qualitative information regarding the quarterly settlement of accounts(1) Explanation of operating results
During the first nine months of the year ending September 30, 2014 (October 1, 2013, throughJune 30, 2014), net sales of SHL-JAPAN Ltd. (the “Company”) increased ¥98 million, or 6.0%, year
over year to ¥1,729 million. By business segment, “Product sales” increased 11.0% to ¥914 million,“Consultancy sales” increased 0.9% to ¥782 million and “Training sales” increased 4.4% to ¥32
million. The increase in Product sales was primarily attributable to favorable sales of the “GAB,”
which is used for the screening of new graduates recruited for the main career track and for which
the effect of launching new services was considerable. The increase in Consultancy sales mainlyreflected favorable sales of “Tamatebako,” a Web assessment tool for the screening of newgraduates.
The Company is confident that the increase in revenue for the nine-month period under review
was mainly attributable to our aggressive marketing activities that fit well with customers’ needs inview of the positive posture of corporations toward employment. The media has reported an increasein the informal job offer rate for new graduates this year, as well as a rise in the ratio of job offers toapplicants and a projected increase in the informal job offer rate due to a considerable increase in the
anticipated number of new graduates to be employed next year, against a backdrop of theimprovement of economic trends and other positive signs.
Operating income for the nine-month period under review increased 2.1% year over year to ¥819
million. The cost of goods sold rose ¥54 million, or 29.6%, year over year to ¥238 million, andselling, general and administrative expenses increased ¥26 million, or 4.2% year over year, to ¥671
million. However, operating income increased ¥17 million year over year due to the increase inrevenue. The increase in the cost of goods sold was primarily attributable to increases in subcontract- 1-

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cost and the amortization cost for product masters of newly developed software associated with theprovision of new services. The increase in selling, general and administrative expenses was mainly
attributable to the year-over-year increases in rent due to increased floor space and in labor costs
largely due to the expansion centered on sales personnel despite decreases in several account items
such as research and development expenses.
Ordinary income for the nine-month period under review increased ¥14 million, or 1.8%, year
over year to ¥819 million. Although non-operating expenses were as small as they were in the same
period a year earlier, non-operating income decreased ¥2 million year over year. The decrease in
non-operating income was mainly attributable to the recording of ¥2 million in gains on investments
in a limited liability partnership for venture businesses for the same period a year earlier.
Income before income taxes for the nine-month period under review totaled ¥820 million (down
3.3% year over year). Income before income taxes decreased ¥27 million year over year, reflecting ayear-over-year decrease of ¥50 million in extraordinary gains despite a year-over-year decrease of¥8 million in extraordinary losses and an increase in ordinary income. The decrease in extraordinary
gains was primarily due to the recording of ¥52 million in insurance income arising from the passingof a Director despite the recording of ¥1 million for the same period a year earlier as reversal of
allowance for doubtful accounts for golf club memberships. The decrease in extraordinary losses
was due to the recording of ¥7 million in Directors’ retirement benefits and a ¥1 million inimpairment loss for the same period a year earlier.
After taking into account income taxes—current, net income for the nine-month period underreview decreased ¥18 million, or 3.6%, year over year to ¥502 million.

(2) Explanation about future prospects such as business forecasts
The operating results of the Company for the nine-month period under review have been favorable
overall. However, we recognize that our performance could be affected to a certain degree in thefourth quarter of the year ending September 30, 2014 (July 1, 2014, through September 30, 2014),
due to the industry’s self-imposed controls regarding the employment of new graduates*, which will
be implemented next year. Meanwhile, in the current fourth quarter, given the rising sense of acrunch in the labor market, aggressive employment activities to hire new graduates and experienced
staff are expected to be reinforced among middle-ranking, and small and medium-sized companies.
Under such a business environment, we intend to continue enhancing our operating performanceby speedily providing optimum services based on our precise analysis of corporate needs.
Under the recognition described above and based on our analysis of the operating results, financial
position and other managerial administrative data for the nine-month period ended June 30, 2014,
followed by our careful consideration of business forecasts, the Company is not at this time revising
its financial forecast for the year ending September 30, 2014, which was released on October 25,2013.

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(Note)* The industry has self-imposed controls regarding the employment of new graduates, underwhich industry groups agreed not to start the employment PR activity and screening process for newgraduates prior to a fixed date in light of the academic schedules for students. The Keidanren (JapanBusiness Federation) stipulated in its “Guidelines for Recruiting and Employing New Graduates”
that corporations’ PR activity shall be allowed to start on and after March 1 and the screening
activity on and after August 1, respectively, of the year just preceding the year of graduation or
post-graduate completion for new graduates who will enter the corporations on and after fiscal 2016.

2. Significant subsequent event
The Company, at the Board of Directors meeting held on July 29, 2014, resolved mattersconcerning the purchase of treasury stock as described below, in accordance with the provision ofArticle 156 of the Companies Act, which is applied instead of the Article 165, Paragraph 3 of thesaid Act.
ձReason for the purchase of treasury stock
The Company intends to maintain a policy of quickly and flexibly conducting purchases oftreasury stock with due consideration to the market environment and capital conditions as part ofits profit distribution and capital policy. Taking into account this policy, the Company endeavors
to ensure the return of profits to shareholders and the improvement of capital efficiency.
ղContent of the purchase

Type of shares purchased

Common stock

Total number of purchasable

130,000 shares (upper limit)

shares•4.19% of the total number of issued shares (excluding treasurystock)Total acquisition value of¥290,000 thousand (upper limit)

the purchased shares
Period for purchase

From July 30, 2014 to March 24, 2015

Purchasing method

Market buying at the Tokyo Stock Exchangeձ Buying on the ToSTNeT-3 (Tokyo Stock Exchange Trading
NeTwork System) at 8:45 a.m. on July 30, 2014, at the closing
price of July 29, 2014
ղ Market buying on the auction market with the upper limit of thenumber of shares after deducting the number of shares to bepurchased by the method from the total number of purchasable
sharesNote: The number of shares in the table above shall not be revised. A part of or the whole of theintended purchase of shares may not be conducted depending on market trends.

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(Note)* Implementation status of quarterly review proceduresThis financial results summary is not subject to quarterly review procedures under the Financial
Instruments and Exchange Act, and the quarterly financial statement review procedures based on
the Act were in progress at the time of the disclosure of these financial results.

* The forward looking statements regarding financial results forecasts, etc. appearing in thisfinancial results summary have been prepared based on information currently available to theCompany and certain assumptions that the Company believes to be reasonable. The Company
makes no guarantees as to their realization. Actual financial results may differ substantially fromthe forecasts due to various factors.

* As the Company’s services are often used for the screening of new graduates
to be employed by corporate customers, our sales inevitably involve
seasonal fluctuations. In recent years, our sales have tended to beconcentrated in the second quarter, during which screening for theemployment of new graduates is often conducted by many corporate
customers.

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