May 12, 2016

Non-Consolidated Financial Results (Excerpt) for the Second 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
May 16, 2016
Jun 1, 2016Yes
Yes (for analysts and institutional investors)

The original disclosure in Japanese was released on April 28, 2016 at 15:15 (GMT+9)
1. Non-Consolidated Financial Results for the Second Quarter of Fiscal 2016 (October 1, 2015 to March 31, 2016)(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 ofFirst six monthsof Fiscal 2016
First six monthsof Fiscal 2015

Operating income

Yen%

Millions ofOrdinary income

Yen%

Millions ofNet income

Yen%

Millions ofYen%

1,025

22.2

418

55.7

419

48.8

278

55.9

839

‫ڹ‬34.4268‫ڹ‬60.6282‫ڹ‬58.7

178‫ڹ‬57.4

Fully diluted
net income per share

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

Yen

Yen

91.89

91.40

59.65

59.16

(2) Non-Consolidated Financial Position
Total assets

Net assets

Millions ofMar 31, 2016
Sep 30, 2015
(Reference) Equity capital:

Yen

Equity ratio

Millions ofYen

%

4,037
3,543
4,005
3,386
Mar 31, 2016: ¥3,538 million Sep 30, 2015: ¥3,379 million

87.6
84,4

2. Dividends
End ofFirst quarter

Fiscal 2015
Fiscal 2016
Fiscal 2016 (forecast)

Dividend per share
End ofThird quarterEnd ofSecond quarter

Year-End

AnnualYen

YenYenYenYenʊ
ʊ

46.00
49.00

ʊ52.00

98.00

ʊ

49.00

98.00

(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 of

Fiscal 2016

Operating income

Yen%

2,368

3.9

Millions of

Ordinary income

Yen%

962

3.9

Millions ofNet income
per share

Net income

Yen%

962

2.5

Millions of

Yen%Yen639

8.7

210.96(Note) Revisions to recent business forecast: None
Net income per share has been adjusted based on the average number of shares outstanding (3,033,107 shares) for the year ending September 30, 2016, which wascomputed taking into account the number of shares issued during the second 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(including treasury shares)

As of Mar 31, 2016

3,037,679(ii) Number of treasury shares

As of Mar 31, 2016

ʊ(iii)Average Number of shares outstanding

First six monthsof Fiscal 2016

3,028,535

As of Sep 30, 2015

3,023,079

As of Sep 30, 2015

ʊFirst six monthsof Fiscal 2015

2,991,636* Implementation status of quarterly review proceduresThis financial results summary is not subject to quarterly review procedures under the Financial Instruments and Exchange Act, and thequarterly financial statement review procedures based on the Act were in progress at the time of the disclosure of these financial results.

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

2.

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.
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.
.

Qualitative information regarding the quarterly settlement of accounts(1) Explanation of operating results
During the first six months of the year ending September 30, 2016 (October 1, 2015, through March 31, 2016),
net sales of SHL-JAPAN Ltd. (the “Company”) increased ¥186 million, or 22.2% year over year, to ¥1,025 million.
By business segment, “Product sales” increased 21.5% to ¥479 million, “Consultancy sales” increased 22.1% to¥525 million and “Training sales” increased 40.6% to ¥20 million.
During the six-month period under review, the Company conducted aggressive marketing activities against a
backdrop of the positive sentiment of corporations for which the media reported an increase for the fifth
consecutive year in the job offers-to-seekers ratio of new graduates who are expected to graduate in March 2017. Inaddition, as the self-imposed regulations regarding the employment of new graduates* that were introduced byindustry groups were again revised, many corporations hastened to accelerate the recruiting and screening schedule
for new graduates who will graduate in 2017 earlier than the previous year, which enhanced the trend of the earlyprovision of our services on a year-over-year basis. The Company believes that these circumstances contributed toyear-over-year increases in net sales of 20%-plus in all business segments.
Operating income for the six-month period under review increased 55.7% year over year to ¥418 million.
Although the cost of goods sold increased ¥3 million, or 2.9% year over year, to ¥127 million, and selling, generaland administrative expenses increased ¥32 million, or 7.3% year over year, to ¥479 million, operating incomeincreased ¥149 million year over year due to the increase in revenue. The increase in the cost of goods soldprimarily was attributable to increases in labor expenses and subcontracting costs resulting from the increase oforders despite a decrease in amortization of product master. The primary factors for the increase in selling, generaland administrative expenses were increases in sales promotion-related expenses and in labor expenses largely due
to an expansion of sales personnel.
Ordinary income for the six-month period under review increased 48.8% year over year to ¥419 million.
Ordinary income increased ¥137 million year over year, reflecting a small amount in non-operating expenses
similar to that for the same period a year earlier and the increase in operating income, although non-operating
income decreased ¥12 million year over year to ¥1 million. The primary factor for the decrease in non-operating
income was the reporting of ¥12 million as gains on investments in a limited liability partnership for the same
period of the previous fiscal year.
Income before income taxes for the six-month period under review increased ¥138 million, or 48.9% year overyear, to ¥420 million, which was almost equal to ordinary income because extraordinary gains were small and there
were no extraordinary losses to be reported.
Income taxes—current and income taxes—deferred increased ¥38 million, or 36.9% year over year, to ¥141
million, for which the estimated effective tax rate was 33.8% due to the change in the corporate tax rate (36.8% for
the corresponding six-month period a year earlier). Net income for the six-month period under review increased¥99 million, or 55.9% year over year, to ¥278 million due to the increase in income before income taxes.
* The industry has self-imposed controls regarding the employment of new graduates, under which industry
groups agreed not to start employment PR activity and the screening process for new graduates prior to a
fixed date in light of the academic schedules for students. The Keidanren (Japan Business Federation)
stipulated in its “Guidelines for Recruiting and Employing New Graduates” that corporations’ PR activity
for new graduates who will enter corporations in fiscal 2017 shall commence on and after March 1 of theyear just preceding the year of graduation or post-graduate completion and screening activity on and afterJune 1 of the year of graduation or completion (it had been August 1 of the year of graduation orcompletion for new graduates who will enter corporations in fiscal 2016).

(2) Explanation about future prospects such as business forecasts
Despite several concerns such as the slowing trend of the emerging countries including China and the impact of
the Kumamoto earthquake, the Company believes that corporations’ willingness to employ will remain steady andthat the market environment for recruiting and screening new graduates will remain strong in the second half of theyear ending September 30, 2016. The operating results for the six-month period under review showed considerable
increases in both revenue and income compared with the same period a year earlier. As was described in “(1)Explanation of operating results,” this is a marked effect of the accelerated period of recruitment and screening
activities occurring earlier than in the previous year.
We intend to continue enhancing our operating performance by speedily providing optimum services based on
our precise analysis and understanding of corporate customers’ needs while appropriately responding to the recentchange in the self-imposed regulations regarding the employment of new graduates.
In light of the above and based on our analysis of the operating results, financial position and other managerial
administrative data for the six-month period under review, 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, 2016,
which was released on October 29, 2015.