Feb 17, 2021

Non-Consolidated Financial Results (Excerpt) for the First Quarterof Fiscal 2021

[J-GAAP basis]

Listed Company Name:SHL-JAPAN Ltd.
Registered on Tokyo Stock Exchange
Securities Code:4327
URL:http://www.shl.co.jp/
Representative:
Manabu Nara, Managing Director
Contact:
Naohiro Nakamura, Director            Tel: +81-3-5385-8781
Date to submit the Quarterly Securities Report:
Feb 15, 2021
Date to start distributing dividends:
㸫Supplementary documents for this summary of financial statements:
NoneResults briefing for financial results:
None
The original disclosure in Japanese was released on Jan 29, 2021 at 15:15 (GMT+9)
1. Non-Consolidated Financial Results for the First Quarter of Fiscal 2021 (October 1, 2020 to Dec 31, 2020)(1) Non-consolidated Business Results(The percentages indicate the rate of increase or decrease compared with the same period of the previous fiscal year.)Net sales

Operating income

Millions of Yen%

Millions of Yen

Ordinary income%Millions of Yen

Net income%Millions of Yen%First three monthsof Fiscal 2021

472

16.5

9733.29733.26734.6First three monthsof Fiscal 2020

405

17.4

73465.1

73453.749447.1

Fully diluted net incomeper share

Net income per share
YenYenFirst three monthsof Fiscal 2021

11.20

㸫

First three monthsof Fiscal 2020

8.32

㸫(2) Non-consolidated Financial Position
Total assets

Net assets

Millions of Yen

Equity ratio

Millions of Yen

Dec 31, 2020
5,587
Sep 30, 2020
6,143
(Reference) Equity capital: Dec 31, 2020: ¥4,993 million

%

4,993
5,288
Sep 30, 2020: ¥5,288 million

89.4
86.1

2. Dividends
Q1 EndFiscal 2020
Fiscal 2021
Fiscal 2021 (forecast)

Q2 EndDividend per share
Q3 EndYear-EndAnnualYen

Yen

Yen

YenYen㸫㸫36.00㸫60.00

96.00

38.00

㸫38.0076.00(Note) Revisions to recent dividends forecast: None
The year-end dividend for the fiscal year ending September 2020 includes a special dividend of ¥20.00.

3. Non-Consolidated Forecast for the Year Ending September 30, 2021 (October 1, 2020 to September 30, 2021)
Net sales

Fiscal 2021

Operating income

Ordinary income

Net income
per share

Net income

Millions of Yen%

Millions of Yen%

Millions of Yen%

Millions of Yen%

Yen

3,100

4.61,394

0.2

1,393

0.1

961

0.1

160.52(Note) Revisions to recent business forecast: None
Net income per share has been adjusted based on the average number of shares outstanding (5,990,152 shares) for the year ending September 30, 2021,
which was calculated taking into account the number of shares issued during the first quarter of the year ending September 30, 2021 through thenumber of treasury shares held.

1*Note(1) Application of particular accounts procedures to the preparation of quarterly non-consolidated financial statements: Yes(2) Changes in accounting policies and changes or restatement of accounting estimates(i) Changes in accounting policies caused by revision of accounting standards:
None(ii) Changes in accounting policies other than(ხ):None(iii) Changes in accounting estimates:None(iv) Restatement:
None(3) Number of shares outstanding (common stock)(i) Number of shares outstanding(including treasury shares)

As of Dec 31, 2020

6,141,158

As of Sep 30, 2020

6,141,158(ii) Number of treasury shares

As of Dec 31, 2020

151,006

As of Sep 30, 2020

151,006(iii) Average Number of shares outstanding

First three monthsof Fiscal 2021

5,990,152

First three monthsof Fiscal 2020

5,990,186* Implementation status of quarterly review proceduresThis financial results summary is not subject to quarterly review procedures.

* Explanations and other special notes concerning the appropriate use of financial results forecasts
1.
2.

The forward-looking statements regarding financial results forecasts, etc., appearing in this financial results summary have been prepared basedon information currently available to the Company and certain assumptions that the Company believes to be reasonable. The Company makes
no guarantee as to their realization. Actual financial results may differ substantially from the 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. Accordingly, the Company’s performance management is conducted on an annual basis.

2Qualitative information regarding the quarterly settlement of accounts(1) Explanation of operating results
During the first three months of the year ending September 30, 2021 (October 1, 2020, through December 31,2020), net sales of SHL-JAPAN Ltd. (the “Company”) increased ¥67 million, or 16.5%, year over year to ¥472million. By business segment, “Product sales” increased 20.5% to ¥311 million, “Consultancy sales” increased
9.2% to ¥145 million, and “Training sales” increased 13.1% to ¥15 million.
“Product sales” increased ¥52 million compared with the same period of the previous fiscal year. This wasprimarily attributable to the favorable sales of “WebGAB,” Web test of general abilities, and “WebCAB,” Web testof computer aptitude. Moreover, “Consultancy sales” increased ¥12 million compared with the same period of theprevious fiscal year. This was primarily due to the favorable sales of customized versions of the “Web Test.”“Training sales” increased ¥1 million compared with the same period of the previous fiscal year, primarily due tothe increase in orders received for in-house seminars.
Operating income for the three-month period under review increased 33.2% year over year to ¥97 million.
Although the cost of goods sold increased ¥15 million, or 26.5%, year over year to ¥73 million and selling, generaland administrative expenses increased ¥27 million, or 10.0%, year over year to ¥301 million, operating income
increased ¥24 million year over year thanks to the increase in net sales. The increase in cost of goods sold was
mainly attributable to increases in labor costs and subcontracting costs resulting from an increase of orders received.
The primary factors for the increase in selling, general and administrative expenses were increases in labor
expenses mainly due to the increased number of staff in the sales department, royalties, and costs related to sales
promotion.
Ordinary income for the three-month period under review increased ¥24 million, or 33.2%, year over year to ¥97
million because both non-operating income and non-operating expenses were small as in the same period of theprevious fiscal year.
Income before income taxes for the three-month period under review was equal to ordinary income, because noextraordinary gains or extraordinary losses were recorded as in the same period of the previous fiscal year, andincreased ¥24 million, or 33.2%, year over year to ¥97 million.
After taking into account the above factors and income taxes—current and income taxes—deferred, net income
for the three-month period under review increased ¥17 million, or 34.6%, year over year to ¥67 million.
<Reference 1: Sales by business segment>
ProductConsultancy
Training
Total

First three months of Fiscal 2020
Millions of Yen
Component ratio
258
63.7
133
32.9
133.4
405
100.0

<Reference 2: Sales by quarterly basis>
First Quarter
Millions of Yen

Second Quarter
Millions of Yen

First three months of Fiscal 2021
Millions of Yen
Component ratio
311
65.814530.915
3.3
472
100.0

Rate of increase(decrease)
20.5
9.2
13.1
16.5

Third Quarter

Year-End

AnnualMillions of Yen nMillions of Yen

Millions of Yen

Fiscal 2019
345
1,190
938
439
2,914
Fiscal 2020
405
1,233
845
479
2,964
Fiscal 2021
472
㸫
㸫㸫
㸫
*Note: As the Company’s services are often used for the screening of new graduates to be employed by corporate customers, oursales inevitably involve seasonal fluctuations. In recent years, sales have tended to concentrate in the second and thirdquarters of the fiscal year.

3(2) Explanation about future prospects such as business forecasts
In the year under review, although economic trends are uncertain due to another declaration of a state ofemergency in response to the spread of the novel coronavirus, the Company projects that screening activities bycompanies seeking to hire new graduates will be carried out by proactively taking measures necessary to avoid
risks of the “Three Cs” (Closed spaces, Crowded places, and Close-contact settings). In this environment, theCompany intends to enhance its operating performance by swiftly providing its optimum assessment services basedon a precise analysis and understanding of corporate customers’ needs.
In light of the above, and based on our analysis and study of the business results, financial position and otherbusiness management materials for the three-month period under review, no changes have been made to thefinancial results forecast for the year ending September 30, 2021, which was released on October 30, 2020.

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