February 15, 2016

Non-Consolidated Financial Results (Excerpt) for the First Quarterof Fiscal 2016 [J-GAAP basis]
Listed Company Name:
SHl-JAPAN Ltd.
Securities Code:4327
Representative:
Manabu Nara, Managing Director
Contact:
Naohiro Nakamura, executive director
Date to submit the Quarterly Securities Report:
Date to start distributing dividends:
Supplementary documents for this summary of financial statements
Results briefing for financial results:

Registered on Tokyo Stock Exchange
URL:
http://www.shl.co.jp/       Tel: +81-3-5385-8781
Februry 15, 2016
NoneNone

The original disclosure in Japanese was released on January 27, 2016 at 15:15 (GMT+9)
1. Non-Consolidated Financial Results for the First Quarter of Fiscal 2016 (October 1, 2015 to December 31, 2015)(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
Millions ofOperating income

YenFirst three monthsof Fiscal 2016
First three monthsof Fiscal 2015%

Millions ofYen

Ordinary income%Millions ofYen

Net income%Millions ofYen%

280

7.7‫ڹ‬6ʊ‫ڹ‬6ʊ‫ڹ‬4ʊ260‫ڹ‬16.8‫ڹ‬19ʊ

‫ڹ‬19ʊ

‫ڹ‬12ʊ

Fully diluted
net income per share

Net income per shareFirst three monthsof Fiscal 2016
First three monthsof Fiscal 2015

YenYen‫ڹ‬1.44

ʊ‫ڹ‬4.15ʊ(2) Non-Consolidated Financial Position
Total assets

Net assets

Millions ofDec 31, 2015
Sep 30, 2015
(Reference) Equity capital:

Yen

Equity ratio

Millions ofYen%

3,564
3,237
4,005
3,386
Dec 31, 2015: ¥3,231 million Sep 30, 2015: ¥3,379 million

90.6
84,4

2. Dividends
End ofFirst quarter

Fiscal 2015
Fiscal 2016
Fiscal 2016 (forecast)

Dividend per share
End ofThird quarterEnd ofSecond quarter

Year-EndAnnualYenYenYenYenYenʊʊ

46.00

ʊ

52.00

98.00

49.00

ʊ49.0098.00(Note) Revisions to recent dividends forecast: None

3. Non-Consolidated Forecast for the Year Ending September 30, 2016 (October 1, 2015 to September 30, 2016)
Net sales
Millions ofFiscal 2016

Operating income

Yen%

2,368

3.9

Millions of

Ordinary income

Yen%

962

3.9

Millions of

Net income
per share

Net income

Yen%

962

2.5

Millions ofYen%

Yen6398.7

211.29(Note) Revisions to recent business forecast: None
Net income per share has been adjusted based on the average number of shares outstanding (3,028,355 shares) for the year ending September 30, 2016, which wascomputed taking into account the number of shares issued during the first quarter of the year ending September 30, 2016, to address the exercise of subscription rights
to shares as a stock option.

*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(ϸ) :None(iii)Changes in accounting estimates:None(iv) Restatement:
None
(1)

Number of shares outstanding (common stock)(i) Number of shares outstanding (includingtreasury shares)

As of Dec 31, 2015

3,029,579

As of Sep 30, 2015

3,023,079(ii) Number of treasury shares

As of Dec 31, 2015(iii)Average Number of shares outstanding

First three monthsof Fiscal 2016

ʊAs of Sep 30, 2015

ʊ3,024,708

First three monthsof Fiscal 2015

2,988,458* 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 thesefinancial results.

* 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 results summary have been preparedbased on information currently available to the Company and certain assumptions that the Company believes to be reasonable. TheCompany makes no guarantee as to their realization. Actual financial results may differ substantially from the forecasts due to variousfactors.
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.

Qualitative information regarding the quarterly settlement of accounts(1) Explanation of operating results
During the first quarter of the year ending September 30, 2016 (October 1, 2015 through December 31, 2015), net sales ofSHL-JAPAN Ltd. (the “Company”) increased ¥20 million, or 7.7% year over year, to ¥280 million. By business segment, “Productsales” increased 5.7% to ¥154 million and “Consultancy sales” increased 13.1% to ¥120 million, whereas “Training sales” decreased
29.5% to ¥5 million.
The increase in net sales for the first quarter was attributable to a large number of test takers for this season, leading to increased
volumes of marking and other score processing duties, which we believe was due to reasons such as the prolonged period forrecruiting and screening at leading corporations and small to medium-sized corporations as a result of a delay of the schedules
concerning recruitment and screening of new graduates expected to graduate from universities, etc., in 2016 mainly at the Keidanren(Japan Business Federation) member companies and the increased demand for screening for internships.
Operating loss for the first quarter under review totaled ¥6 million (compared with ¥19 million operating loss for the same period of
the previous fiscal year). The loss was mainly attributable to a rise in selling, general and administrative expenses of ¥10 million, or4.9% year over year, to ¥227 million despite an increase in revenue and a decrease in cost of goods sold of ¥3 million, or 5.5% year
over year, to ¥59 million. The decrease in cost of goods sold was primarily attributable to the decrease in amortization of productmaster. The primary factor for the increase in selling, general and administrative expenses was increased sales promotion-relatedexpenses.
Ordinary loss for the first quarter under review totaled ¥6 million (compared with ordinary loss of ¥19 million for the same periodof the previous fiscal year). This figure was almost equal to the operating loss because both non-operating income and non-operating
expenses were small.
Loss before income taxes for the quarter under review totaled ¥6 million (compared with ¥19 million loss before income taxes forthe same period of the previous fiscal year). This figure was equal to the ordinary loss because there were no extraordinary gains andlosses to be reported.
After taking into account the above factors and income taxes—current and income taxes—deferred, net loss for the quarter underreview of ¥4 million was reported (compared with net loss of ¥12 million for the same period of the previous fiscal year).

(2) Explanation about future prospects such as business forecasts
As described in “(1) Explanation of operating results” above, the screening market for new graduates is in progress in line with theimpact of self-imposed controls newly introduced by industry groups.
With the Japanese economy following a moderate recovery undertone due to a set of economic policies and other factors and with arising sense of a crunch in the labor market, the Company believes that the employment environment will remain steady. Corporations
have started to conduct aggressive screening of students who are expected to graduate from universities, etc. in 2016. At the same time,
the amounts of expected orders for the fourth quarter (July 1 through September 30, 2015) have been successfully accumulated.
Under the recognition that our sales are likely to be concentrated in periods different from those for the previous fiscal years andbased on our analysis of the prospective orders and other managerial administrative data for the current situation, followed by ourcareful considerations of business forecasts, the Company is not, at this time, revising its financial forecast for the year ending
September 30, 2015, which was released on October 27, 2014.
Note: Net income per share has been revised based on the “Average number of shares outstanding” (3,004,623 shares) for the year

ending September 30, 2015, which was calculated by taking into account the number of shares issued through the exercise of stockacquisition rights as stock options by the end of the third quarter of the year ending September 30, 2015, and the number of treasury
shares that were retired on May 13, 2015.