SHL-JAPAN Ltd.

Year Ending September 30, 2010
Financial and Operating Results (Excerpt) for the First Quarter, Ended December 31, 2009
January 29, 2010

Listed Company Name:SHL-JAPAN Ltd.
Registered on Osaka Securities Exchange
Securities Code4327
URL:
http://www.shl.co.jp/
Representative:
Manabu Nara, Managing Director
Naohiro Nakamura, Executive Director
TEL.;+81-3-5385-8781
Contact:
Date to submit the Quarterly Securities Report: February 15,2010
Date to start distributing dividends:―1. Qualitative information regarding operating results
During the first quarter of the year ending September 30, 2010 (October 1, 2009, through December
31, 2009), uncertainty persisted with the potential risk of a double-dip recession due to the so-called
Dubai shock and concerns about yen appreciation although the domestic and global economies
showed signs of bottoming. Meanwhile, the domestic employment situation remained difficult. The
employment of new graduates for Japanese enterprises, a measure that is generally considered to bea typical lagging indicator of the overall economy, was severely affected across the board.
In such a harsh economic climate, net sales of SHL-JAPAN Ltd. (the “Company”) for the firstquarter decreased ¥47 million, or 19.5% year over year, to ¥195 million partly due to the fact that thefirst quarter is regularly a work-in-process period for subsequent business operations in the businesscycle of our fiscal year. By business segment, “Product sales” decreased 8.2% to ¥68 million and“Consultancy sales” declined 26.4% to ¥122 million, whereas “Training sales” increased 150.9% to¥4 million. Above all, “Consultancy sales” decreased ¥43 million year over year, reflecting
unfavorable sales of customized versions of the “Web Aptitude Test,” a Web assessment tool, and“Tamatebako,” an Internet-based screening system.
An operating loss of ¥24 million was recorded for the quarter under review. This was primarily
attributable to ¥180 million in selling, general and administrative expenses (a year-over-yearincrease of ¥6 million, or 3.9%) in addition to the decline in revenue, although the cost of goods solddecreased ¥5 million, or 13.2%, to ¥39 million.
An ordinary loss of ¥24 million was recorded for the quarter under review. This figure wasalmost the same as the operating loss because both non-operating income and non-operating
expenses were relatively small.
After taking into account the above factors and income taxes—current and income
taxes—deferred, a net loss of ¥14 million was recorded for the first quarter under review.
2. Qualitative information regarding business forecasts-1-

SHL-JAPAN Ltd.

As described in “1. Qualitative information regarding operating results,” we recognize that the toughmanagement environment surrounding the Company continues and will linger in the foreseeable
future.
Nevertheless, in terms of current customer trends, we are encouraged by favorable signs such as
the resumed employment of new graduates especially among certain customers mainly in the
manufacturing sector and the fact that many customers have not yet determined their employment
plans. We therefore believe that our projected performance for the year ending September 30, 2010,is achievable by proactively matching such potential customer needs with the reception of orders in
the days ahead. Consequently, we are not revising our financial forecasts at this time.

All forecasts in this document are based on various assumptions with information available at thistime and therefore involve known and unknown risks and uncertainties. Actual results to differ
materially from these forecasts.

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