Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

Nov 22, 2022

Non-consolidated Financial Results
for the Fiscal Year Ended September 30, 2022
(Under Japanese GAAP)
Company name:
SHL-JAPAN Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
4327
URL:
http://www.shl.co.jp/
Representative:
Manabu Nara, Managing Director
Inquiries:
Naohiro Nakamura, Director
Telephone:+81-3-5385-8781
Scheduled date of annual general meeting of shareholders:Dec 17, 2022
Scheduled date to commence dividend payments:
Dec 19, 2022
Scheduled date to file annual securities report:
Dec 20, 2022
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes (for analysts and institutional investors)
The original disclosure in Japanese was released on October 31, 2022 at 15:15 (GMT+9)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Non-consolidated financial results for the fiscal year ended September 30, 2022 (from October 1, 2021to September 30, 2022)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended

Operating profit

Ordinary profit

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%Sep 30, 2022

3,463

ʊ

1,555

ʊ

1,556

ʊ

1,066

ʊ

Sep 30, 2021

3,300

11.3

1,475

6.0

1,474

5.9

1,010

5.2

Basic earnings
per share
Fiscal year ended

Diluted earnings
per share

Return on equity

Ratio of ordinary
profit to total assets

Ratio of operating
profit to net sales

YenYen%%%Sep 30, 2022

178.06

ʊ

18.5

22.8

44.9

Sep 30, 2021

168.69

ʊ

18.4

23.1

44.7

Reference:

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended Sep 30, 2022:
ʊ million
For the fiscal year ended Sep 30, 2021:
ʊ million

As the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc., have been applied since the beginning of thefiscal year ended September 30, 2022, the figures provided for the fiscal year ended September 30, 2022, are figures to which said accountingstandards have been applied. The rates of increase or decrease compared with the same period of the previous fiscal year are not provided. As a resultof the application of said accounting standards and other standards, net sales, operating profit, and ordinary profit provided for the fiscal year underreview decreased by ¥4 million each compared with the figures calculated using a method to which these accounting standards are not applied.

(2) Non-consolidated financial position
Total assets
As ofNet assets

Equity-to-asset ratio

Net assets per shareMillions of yen

Millions of yen%

Yen

Sep 30, 2022

7,028

5,808

82.7

969.75

Sep 30, 2021

6,623

5,704

86.1

952.29Reference:

EquityAs of Sep 30, 2022:
As of Sep 30, 2021:¥5,808 million¥5,704 million(3) Non-consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Sep 30, 2022

1,071

ᶭ51

ᶭ629

4,661

Sep 30, 2021

1,087ᶭ29ᶭ586

4,270

2. Cash dividends
Annual dividends per share
SecondThirdFirst
quarter-end quarter-end quarter-end
Fiscal year ended

Sep 30, 2021
Fiscal year ended

Sep 30, 2022

Fiscalyear-end

Total

Total cash
dividends(Total)Payout ratio

Ratio ofdividends tonet assets%%

Yen

Yen

Yen

Yen

Yen Millions of yen

ʊ

38.00

ʊ

62.00

100.00

599

59.3

10.9

ʊ

43.00

ʊ

62.00

105.00

628

59.0

10.9

ʊ

45.00

ʊ

45.00

90.00

Fiscal year ending

Sep 30, 2023

48.7(Forecast)
The year-end dividends for the fiscal year ended September 2021 and the fiscal year ended September 2022 both include a special dividend of ¥15.00.

3. Non-Consolidated Forecast for the Year Ending September 30, 2023 (October 1, 2022 to September 30,2023)
Net sales
Fiscal year ended
Sep 30, 2023

Operating profit

Ordinary profit

Basic earnings
per share

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

yen

3,602

4.0

1,603

3.0

1,602

3.0

1,106

3.8

184.78The figures for basic earnings per share are calculated based on the number of shares (5,989,996 shares) as obtained by subtracting the number oftreasury shares (151,162 shares) from the total number of shares outstanding as of the end of the fiscal year ended September 2022 (6,141,158 shares).

* Notes(1) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(2) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of Sep 30, 2022

6,141,158 shares

As of Sep 30, 2021

6,141,158 shares(ii) Number of treasury shares at the end of the period
As of Sep 30, 2022

151,162 shares

As of Sep 30, 2021

151,029 shares(iii) Average number of shares outstanding during the period
Fiscal year ended Sep 30, 2022

5,990,068 sharesFiscal year ended Sep 30, 2021

5,990,141 shares* Implementation status of quarterly review proceduresThis financial results summary is not subject to annual review procedures.
* Explanations and other special notes concerning the appropriate use of financial results forecasts
1. The forward-looking statements regarding financial results forecasts, etc., appearing in this financial resultssummary have been prepared based on information currently available to the Company and certain
assumptions that the Company believes to be reasonable. The Company makes no guarantee as to theirrealization. Actual financial results may differ substantially from the forecasts due to various factors.
2. 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 without presenting performance forecasts for the first half.

Overview of operating results, etc.
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March31, 2020; hereinafter the “Revenue Recognition Standard”), etc., since the beginning of the first quarter of theyear ending September 30, 2022. As this will affect net sales, etc., the year-on-year yen and percentage changes in
the qualitative information for the first nine months of the fiscal year ending September 30, 2022 (October 1, 2021,through September 30, 2022) are not provided.
(1) Overview of operating results
For the year ended September 30, 2022, net sales of SHL-JAPAN Ltd. (the “Company”) were ¥3,463 million.
By business segment, “Product sales” were ¥2,370 million, “Consultancy sales” were ¥996 million, and “Trainingsales” were ¥97 million.
Sales of the Web test of general abilities “C-GAB plus” and the employee assessment tool “MANGEKYO” for“Product sales” showed strong growth. For “Consultancy sales,” the sales of customized versions of Web tests andmultiple choice tests as well as the testing system “TAMATEBAKO” using the internet were stagnant, while salesof the agency service for assessment and various analysis projects were brisk, as were sales of in-house seminars,etc. for “Training sales.”During the year under review, despite the continued spread of the novel coronavirus, the rate of new graduates
who are set to graduate next spring and have already received job offers rose for the first time in four years. On
the other hand, the rate of new graduates receiving job offers to the number of hires companies originally planned,on an unofficial job offer basis, reportedly plunged to a 10-year low. The recruitment and screening activities ofcompanies seeking to hire new graduates who are set to graduate next spring took place even earlier than before,
particularly among firms that are offering internships, suggesting that companies are in an increasingly fierce
competition for talents. Against such backdrop, the overall demand for our assessment services continued toincrease on the back of more proactive recruitment and screening activities for ready-to-go career roles bycompanies that have the objective of alleviating chronic labor shortages and reinforcing human resources for
digital transformation (DX), as well as more proactive student screening activities related to internship programs,
which are becoming firmly established in the corporate world, in addition to the upward trend in orders received
for our employee assessment tools aimed at revitalizing existing employees. Under these circumstances, theCompany believes that it was able to achieve an increase in net sales by gaining support from its customers forservices with low risks of the “Three Cs” (Closed spaces, Crowded places, and Close-contact settings) or services
that can avoid those risks, mainly online assessment tools.
Operating profit for the year under review was ¥1,555 million. The cost of goods sold was ¥462 million, while
selling, general and administrative expenses were ¥1,445 million. As a result, the operating profit margin was44.9%.
Ordinary profit for the year under review was ¥1,556 million. This is almost equal to operating profit because
both non-operating profit and non-operating expenses amounted to ¥1 million.
Profit before income taxes for the year under review was ¥1,556 million, which is equal to ordinary profit
because no extraordinary gains or extraordinary losses were recorded as in the same period of the previous fiscalyear.
As a result of deducting income taxes from the above figure, profit for the year under review was ¥1,066
million.

<Reference 1: Sales by business segment>
Fiscal 2022
Millions of YenProductComponent ratio

2,370

68.4

Consultancy

996

28.8

Training

97

2.8

Total

3,463

100.0

<Reference 2: Sales by quarterly basis>
First Quarter

Second Quarter

Third Quarter

Year-End

AnnualMillions ofMillions ofYen

Millions of Yen

Millions of Yen

Millions of Yen

1,120
1,375

1,063
969

681
482

3,463
3,300


Fiscal 2022
Fiscal 2021

Yen
597
472

Fiscal 2020
405
1,233
845
479
2,964
*Note 1: For the fiscal years ended September 2020 and 2021, performance figures to which the Revenue Recognition Standard,etc. have not been applied are provided.
2: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, sales have tended to concentrate in the second andthird quarters of the fiscal year.

(2) Projected performance(Projected performance for the year ending September 30, 2023)
In the next fiscal year, as we enter a period known as “living with COVID-19” and despite the growing
prospect of recession fueled by a worldwide rise in prices and interest rates and the yen’s rapid slide, themotivation of companies to hire new employees is expected to remain strong with an eye to life after COVID-19,
thanks to stronger uptake of vaccinations and advancements in the development and approval of drugs for treating
the disease. In this environment, the Company intends to further continue to implement thorough measures toprevent the spread of novel coronavirus to ensure the health and safety of its employees and business associates,
and to enhance its operating performance by swiftly providing optimum services based on a precise analysis andunderstanding of corporate customers’ needs.
In light of the above, the Company projects net sales of ¥3,602 million (up 4.0% year over year), operating
profit of ¥1,603 million (up 3.0% year over year), ordinary profit of ¥1,602 million (up 3.0% year over year) andprofit of ¥1,106 million (up 3.8% year over year) for the financial results forecast for the year ending September
30, 2023. Although the Company has at present not completed the renewal of its license agreement with SHLGroup Limited (United Kingdom), which is due to expire on March 31, 2023, the current royalty rate of 9.0% wasused in preparing the financial results forecasts for the year ending September 30, 2023.

(Basic policy regarding profit distribution and dividends for the year ended September 30, 2022, and the year
ending September 30, 2023)
The Company considers the return of profits to shareholders to be one of its mainstay management tasks.
Consequently, the Company intends to maintain a basic policy of ensuring stable and proactive profit distribution
to shareholders with a benchmark payout ratio of 50% (more specifically, total dividends of 50% of profit for theyear) while maintaining an internal reserve for the future reinforcement of its business structure. As foracquisition of treasury shares, the Company’s dividends from surplus are distributed twice per annum as aninterim dividend and a year-end dividend. The internal decision is made by the Board of Directors for the interimdividend and by a general meeting of shareholders for the year-end dividend.
With regard to the financial results for the year under review, net sales (¥3,463 million) are ¥53 million higher
than the forecast (¥3,410 million), and operating profit, ordinary profit, and profit exceeded the forecast by ¥60
million, ¥61 million, and ¥35 million, respectively. For context on these results, please refer to “Overview ofoperating results, etc., (1) Overview of operating results”.
In consideration of the above basic policies and the financial results for the year under review, the Company
plans to distribute an annual dividend per share of ¥105 for the year ended September 2022, consisting of ¥62 pershare for the year-end dividend, which is the sum of an ordinary dividend of ¥47 and a special dividend of ¥15,and ¥43 per share for the interim dividend. This constitutes an increase of ¥5 per share, or 5.0% year over year,
over the annual dividend per share of ¥100 for the year ended September 2021.
The Company intends to reinforce its management foundation by allocating the internal reserve to IT-related
investments for ensuring higher safety of its information systems and R&D projects for new assessment tools.
With regard to the dividend of the next year, the Company intends to maintain the amount of annual (ordinary)
dividend per share and distribute an annual dividend per share of ¥90.