Feb 12, 2020

Non-Consolidated Financial Results (Excerpt) for the First Quarterof Fiscal 2020 [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:
Feb 14, 2020
Date to start distributing dividends:
㸫Supplementary documents for this summary of financial statements:
NoneResults briefing for financial results:
NoneThe original disclosure in Japanese was released on Jan 30, 2020 at 15:15 (GMT+9)
1. Non-Consolidated Financial Results for the First Quarter of Fiscal 2020 (October 1, 2019 to Dec 31, 2019)(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 three monthsof Fiscal 2020

40517.4

73465.1

73453.749447.1

First three monthsof Fiscal 2019345

15.612㸫

13㸫

9㸫

Fully diluted net incomeper share

Net income per share
Yen

Yen

First three monthsof Fiscal 2020

8.32

㸫

First three monthsof Fiscal 2019

1.53

1.52

(2) Non-consolidated Financial Position
Total assets

Net assets

Millions ofYen

Equity ratio

Millions ofDec 31, 2019
5,104
Sep 30, 2019
5,539
(Reference) Equity capital: Dec 31, 2019: ¥4,583 million

Yen%

4,583
4,761
Sep 30, 2019: ¥4,761 million

89.8
85.9

2. Dividends

Fiscal 2019
Fiscal 2020
Fiscal 2020 (forecast)

Dividend per share
Q3 EndYear-End

Q1 EndQ2 EndYenYenYenYenAnnualYen㸫㸫

34.00

㸫37.00

71.00

36.00

㸫

36.00

72.00

(Note) Revisions to recent dividends forecast: None
3. Non-Consolidated Forecast for the Year Ending September 30, 2020 (October 1, 2019 to September 30, 2020)
Net sales
Millions ofFiscal 2020

Operating income

Yen%

3,022

3.7

Millions ofOrdinary income

Yen%

1,269

3.2(Note) Revisions to recent business forecast: None

1

Millions ofNet income
per share

Net income

Yen%

1,267

3.0

Millions ofYen%

Yen861

2.5

143.89

*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(ⅰ):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 Dec 31, 2019

6,141,158

As of Sep 30, 2019

6,141,158(ii) Number of treasury shares

As of Dec 31, 2019

150,972

As of Sep 30, 2019

150,972(iii) Average Number of shares outstanding

First three monthsof Fiscal 2020

5,990,186

First three monthsof Fiscal 2019

5,951,409* 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.

2

Qualitative information regarding the quarterly settlement of accounts(1) Explanation of operating results
During the first three months of the year ending September 30, 2020 (October 1, 2019, through December 31,2019), net sales of SHL-JAPAN Ltd. (the “Company”) increased ¥60 million, or 17.4%, year over year to ¥405
million. By business segment, “Product sales” increased 15.7% to ¥258 million, “Consultancy sales” increased
17.0% to ¥133 million and “Training sales” increased 67.3% to ¥13 million.
“Product sales” increased ¥35 million compared with the same period of the previous fiscal year. This wasprimarily attributable to the favorable sales of “GAB,” Web test of general abilities. Moreover, “Consultancy sales”
increased ¥19 million compared with the same period of the previous fiscal year. This was primarily due to thefavorable sales of customized versions of the “Web Test” and the favorable orders received for analysis projects.
“Training sales” increased ¥5 million compared with the same period of the previous fiscal year, primarily due tothe increase in orders received for in-house seminars.
Operating income for the three-month period under review increased 465.1% year over year to ¥73 million.
Although selling, general and administrative expenses increased ¥7 million, or 2.9%, year over year, to ¥274
million, operating income increased ¥60 million year over year thanks to the year-over-year decrease in the cost ofgoods sold by ¥7 million, or 11.9%, to ¥58 million as well as the increase in net sales. The primary factors for theincrease in selling, general and administrative expenses were an increase in royalties. The decrease in cost of goods
sold was mainly attributable to a decrease in manufacturing expenses.
Ordinary income for the three-month period under review increased ¥59 million, or 453.7%, year over year to¥73 million because both non-operating income and non-operating expenses were small as in the same period of theprevious fiscal year.
Income before income taxes for the three-month period under review was equal to ordinary income, because noextraordinary gains or extraordinary losses were recorded as in the same period of the previous fiscal year, andincreased 453.7% year over year to ¥73 million.
After taking into account the above factors and income taxes̾current and income taxes̾deferred, net income forthe three-month period under review increased ¥40 million, or 447.1%, year over year to ¥49 million.
<Reference 1: Sales by business segment>
ProductConsultancy
Training
Total

First three months of Fiscal 2019
Millions of Yen
Component ratio
223
64.6
114
33.0
82.4
345
100.0

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

First three months of Fiscal 2020
Millions of Yen
Component ratio
258
63.7
133
32.9
133.4
405
100.0

Second Quarter

Third Quarter

Year-End

Millions ofMillions ofMillions ofYen

Yen nRate of increase(decrease)
15.7
17.0
67.3
17.4

AnnualYen

Millions ofYen

Fiscal 2018
299
987
986
431
2,704
Fiscal 2019
345
1,190
938
439
2,914
Fiscal 2020
405
㸫
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. In recent years, sales have tended to concentrate in the second and thirdquarters of the fiscal year.

3(2) Explanation about future prospects such as business forecasts
In the year under review, economic trends are somewhat uncertain due partly to the impact of the US-China tradetensions, the situation in the Middle East, and the outbreak of the new coronavirus. However, as corporations
remain highly motivated to hire more employees, the Company projects that screening activities by companies
seeking to hire new graduates will remain as active as they were in the previous fiscal year. The Company intends
to continue enhancing its operating performance by swiftly providing optimum services based on a precise analysis
and understanding of corporate customers’ needs while taking fully into account that such screening activities
might end early as in the previous fiscal year.

4