May 15, 2018

Non-Consolidated Financial Results (Excerpt) for the Second Quarterof Fiscal 2018 [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, Executive Director        Tel: +81-3-5385-8781
Date to submit the Quarterly Securities Report:
May 15, 2018
Date to start distributing dividends:
Jun 1, 2018
Supplementary documents for this summary of financial statements:
YesResults briefing for financial results:Yes (for analysts and institutional investors)
The original disclosure in Japanese was released on April 27, 2018 at 15:15 (GMT+9)
1. Non-Consolidated Financial Results for the Second Quarter of Fiscal 2018 (October 1, 2017 to March 31, 2018)(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 six monthsof Fiscal 2018

1,286

9.55928.4592

8.4

405

7.6

First six monthsof Fiscal 2017

1,175

14.6

546

30.6

546

30.1

377

35.5

Fully diluted net income
per share

Net income per shareYenYen

First six monthsof Fiscal 2018

68.20

67.84

First six monthsof Fiscal 2017

61.95

61.67

The Company conducted a two-for-one stock split of common shares on October 1, 2017. However, net income per share and fully diluted net income
per share has been calculated under the assumption that the stock split was conducted at the beginning of the year ended September 30, 2017.

(2) Non-consolidated Financial Position
Total assets

Net assets

Millions ofYen

Equity ratio

Millions ofMar 31, 2018
4,735
September 30, 2017
4,591
(Reference) Equity capital: March 31, 2018: ¥4,081 million

Yen%

4,085
3,894
September 30, 2017: ¥3.890 million

86.2
84.7

2. Dividends

Fiscal 2017
Fiscal 2018
Fiscal 2018 (forecast)

Dividend per share
Q3 EndYear-End

Q1 EndQ2 End

Yen

Yen

Yen

Yen

Annual
Yen

㸫
㸫

55.00
32.00

㸫

72.00

127.0

㸫

32.00

64.00

(Note) Revisions to recent dividends forecast: None
The Company conducted a two-for-one stock split of common shares on October 1, 2017. However, the actual amount of dividend distributed isrecorded for the year ended September 30, 2017.

3. Non-Consolidated Forecast for the Year Ending September 30, 2018 (October 1, 2017 to September 30, 2018)
Net sales
Millions ofFiscal 2018

Operating income

Yen%

2,692

4.5

Millions ofOrdinary income

Yen%

1,117

1.1

Millions of

Net income
per share

Net income

Yen%

1,116

1.1

Millions of

Yen%

Yen7711.7

129.69(Note) Revisions to recent business forecast: NoneNet income per share has been adjusted based on the average number of shares outstanding (5,947,185 shares) for the year ending September 30, 2018,
which was calculated taking into account the number of shares issued during the second quarter of the year ending September 30, 2018 through theexercise of share subscription rights as a stock option, and the number 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 Mar 31, 2018

6,098,358

As of Sep 30, 2017

6,096,358(ii) Number of treasury shares

As of Mar 31, 2018

150,844

As of Sep 30, 2017

150,844(iii)Average Number of shares outstanding

First six monthsof Fiscal 2018

5,946,855

First six monthsof Fiscal 2017

6,087,134

The Company conducted a two-for-one stock split of common shares on October 1, 2017. However, calculations were made under theassumption that the stock split was conducted at the beginning of the year ended September 30, 2017.

* 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.

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Qualitative information regarding the quarterly settlement of accounts(1) Explanation of operating results
During the first six months of the year ending September 30, 2018 (October 1, 2017, through March 31, 2018),
net sales of SHL-JAPAN Ltd. (the “Company”) increased ¥111 million, or 9.5%, year over year to ¥1,286 million.
By business segment, “Product sales” increased 20.1% to ¥680 million, “Consultancy sales” decreased 2.3% to¥557 million and “Training sales” increased 28.8% to ¥48 million.
The increase in income was primarily due to the factor that both students and corporations started job seeking
and recruiting and screening activities more actively than in the previous year as reported by the media. According
to the media, among students who are expected to graduate in March 2019, the rate of those who had started job
seeking activities as of March 1, 2018 was higher than a year earlier. In addition, the rate of early unofficial job
offers given by companies as of the end of March 2018 to prospective graduates in March 2019 was also higher
than a year before. The Company believes that its marketing activities in line with customers’ needs were effective
under these circumstances.
Operating income for the six-month period under review increased 8.4% year over year to ¥592 million.
Although the cost of goods sold increased ¥16 million, or 11.9%, year over year to ¥154 million and selling,
general and administrative expenses increased ¥49 million, or 10.0% year over year, to ¥539 million, operating
income increased ¥45 million year over year due to the increase in net sales. The increase in the cost of goods sold
was primarily attributable to an increase in subcontracting costs resulting from an increase of orders. The primaryfactors for the increase in selling, general and administrative expenses were increases in royalties, labor expenses
such as salaries and executive compensation, and an increase in job offering expenses.
Ordinary income for the six-month period under review increased 8.4% year over year to ¥592 million. Ordinary
income increased ¥45 million year over year due to the increase in operating income because both non-operating
income and non-operating expenses were small as in the same period of the previous fiscal year.
Income before income taxes for the six-month period under review increased 7.6% year over year to ¥591
million. Income before income taxes increased ¥41 million year over year due to the increase in ordinary income
although extraordinary gains decreased ¥3 million year over year. The decrease in extraordinary gains was due tothe reporting of ¥3 million of gain on sales of investment securities as extraordinary gains for the same period of
the previous fiscal year.
Net income for the six-month period under review increased ¥28 million, or 7.6% year over year, to ¥405 million,primarily due to the increase in income before income taxes.
<Reference 1: Sales by business segment>
ProductConsultancy
TrainingTotal

First six months of Fiscal 2017
Millions of Yen
Component ratio
566
48.2
571
48.6
37
3.2
1,175
100.0

3

First six months of Fiscal 2018
Millions of Yen
Component ratio
680
52.9
557
43.4
48
3.7
1,286
100.0

Rate of increase(decrease)20.1‫ڹ‬2.328.8
9.5

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

Second Quarter

Third Quarter

Year-End

Millions ofMillions ofMillions ofYen

Yen nAnnualYenMillions ofYen

Fiscal 2016
280
744
995
399
2,420
Fiscal 2017278896
1,030
369
2,575
Fiscal 2018
299
987
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. Moreover, the rate of fluctuation may at times increase due to changes in therecruiting and screening periods and other reasons. In recent years, sales have tended to concentrate in the second and thirdquarters of the fiscal year.

(2) Explanation about future prospects such as business forecasts
In the year under review, the Company believes that the screening market environment for new graduates willcontinue to grow steadily, because corporations remain firmly motivated to hire more employees despite concerns
over the rapidly developing situation on the Korean Peninsula and growing trade friction in the markets. 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 fully taking into account the possibility of earlier
completion of corporations’ activities for recruiting and screening new graduates during the current fiscal year thanthe previous year.
In light of the above, and based on our analysis and study of the business results, financial position and otherbusiness management materials for the six-month period under review, no changes have been made to the business
forecast for the year ending September 30, 2018, which was released on October 27, 2017.

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