Non-consolidated Financial and Operating Results (Excerpt) for the Year Ended September 30, 2012
(J-GAAP basis)
Oct 25,2012
Listed Company Name:SHL-JAPAN Ltd.

Registered on Osaka Securities Exchange

Securities Code:4327

URL:http://www.shl.co.jp/

Representative:

Manabu Nara, Managing Director

Contact:

Naohiro Nakamura, Executive Director

TEL㧦81-3-5385-8781

Scheduled date for the ordinary general meeting of shareholders: Dec 22,2012
Scheduled date for commencement of dividend payment:

Dec 25,2012

Scheduled date for filing the securities report:

Dec 26,2012

The original disclosure in Japanese was released on October 25, 2012 at 18:10 (GMT+9)(1) Analysis of Operating Results(Operating results for the year ended September 30, 2012)
During the year ended September 30, 2012 (October 1, 2011, through September 30, 2012), net sales ofSHL-JAPAN Ltd. (the “Company”) increased ¥86 million, or 4.9% year over year, to ¥1,839 million. By
business segment, “Product sales” increased 23.0% to ¥880 million, “Consultancy sales” decreased 7.8% to¥924 million and “Training sales” increased 1.0% to ¥33 million.
Product sales for the year under review increased ¥164 million year over year. This increase was primarily
attributable to favorable sales of the “GAB” and the “OPQ,” which are used for the screening of new graduates
recruited for the main career track. Meanwhile, Consultancy sales decreased ¥78 million year over year. Thisdecrease was primarily attributable to unsatisfactory sales of customized versions of the “Web Aptitude Test,” aWeb assessment tool, and the “Marksheet Test.”
During the year ended September 30, 2012, particularly until the third quarter ended on June 30, 2012
(October 1, 2011 through June 30, 2012), Product sales were favorable due to the firm support by corporate
customers for our easy-to-implement products following the shortened period for recruiting and screening due
to the adoption of the industry’s self-imposed controls on the screening of new graduates (under which industry
groups agreed not to start the screening process and recruitment-related PR activity for new graduates prior toa fixed date in light of academic schedules). Meanwhile, net sales of the Company for the fourth quarter (July1, 2012, through September 30, 2012) were low, decreasing ¥59 million year over year to ¥373 million. TheCompany’s fourth quarter falls under the period on which sales of screening tools for the coming year’s newgraduates are concentrated. Regarding the fourth quarter of the year ended September 2012, Consultancy sales
decreased because sales of screening tools for next year’s new graduates were affected by the industry’s
self-imposed controls on the screening of new graduates including the postponement of the sales period.
Operating income for the year under review increased 4.2% year over year to ¥774 million. Although thecost of goods sold increased by ¥26 million, or 12.3% year over year, to ¥237 million, and selling, general

1and administrative expenses increased by ¥28 million, or 3.6%, to ¥826 million, operating income for the year
increased by ¥30 million year over year due to the increase in revenue. The increase in the cost of goods soldreflected such factors as the year-over-year increase of ¥7 million in labor costs inclusive of temporary
bonuses, numerous deliveries of our products ordered and the increased amortization for the current version of“Master” in association with the completion of the new version of “Master.” The increase in selling, generaland administrative expenses was attributable to an increase of ¥31 million in personnel expenses mainly due
to the expansion of sales personnel workforce and the granting of temporary bonuses despite year-over-year
declines in many disbursement categories.
Ordinary income for the year under review increased by 3.6% year over year to ¥777 million. This ¥27
million increase in ordinary income reflected a year-over-year rise in operating income. Non-operating income
decreased ¥5 million to ¥2 million, and non-operating expenses decreased ¥1 million year over year. The
decrease in non-operating income was mainly due to a decline of ¥4 million year over year in gains on
investments in a limited liability partnership for venture businesses. The decline in non-operating expenses
was mainly attributable to ¥1 million in commissions for the purchase of treasury stock that had been recorded
for the previous fiscal year.
Income before income taxes for the year under review totaled ¥764 million, up 2.3% year over year. Income
before income taxes increased ¥17 million year over year mainly due to increased ordinary income despiteextraordinary losses of ¥14 million, a year-over-year increase of ¥11 million, which was partly offset byextraordinary gains of ¥1 million, a year-over-year increase of ¥1 million. The extraordinary gains
corresponded to a ¥1 million gain on sales of investments in securities, whereas the extraordinary losses
mainly corresponded to a ¥10 million loss on sales of golf club memberships and a ¥3 million on impairment
loss.
After taking into account the above factors and income taxes-current and income taxes-deferred, net income
for the year under review decreased ¥2 million, or 0.6% year over year, to ¥439 million.
(2) Basic policy regarding profit distribution and dividends for the year ended September 30, 2012, and theyear ending September 30, 2013
The Company considers the return of profits to shareholders to be one of its mainstay management tasks.
Consequently, the Company intends to maintain a policy of ensuring stable and proactive profit distribution toshareholders with a benchmark payout ratio of 50% while maintaining an internal reserve for the future
reinforcement of its business structure. The Company will celebrate its 25th anniversary on December 22,
2012. We appreciate the support and guidance of our stakeholders including shareholders and the customers
who utilize our services.
In line with this policy, the Company plans to distribute an annual dividend per share of ¥8,575 for the year
ended September 30, 2012, consisting of ¥5,000 per share for the year-end dividend and ¥3,575 per share forthe interim dividend. The ¥5,000 per share year-end dividend will be composed of a ¥3,575 ordinary dividend
per share and a ¥1,425 commemorative dividend per share. This is a dividend increase of ¥1,425 (up 19.9%)2

compared with the previous fiscal year.
At this time, the Company intends to increase the annual dividend per share for the year ending September 30,
2013, to ¥7,400, up ¥250 from ¥7,150 annual ordinary dividend per share for the year under review.

* Presentation of the status of auditing procedures implemented
This financial summary (Financial and Operating Results) is not subject to the auditing procedures under theFinancial Instruments and Exchange Act. The auditing procedures for financial statements under the FinancialInstruments and Exchange Act have not been completed at the time of the announcement of this financialsummary.

* Explanations and other special notes concerning the appropriate use of business performance forecasts• All business forecasts in this financial summary are based on information available at this time and assumptions
deemed reasonable by the Company. Actual operating results, etc., could therefore differ materially from suchbusiness forecasts depending on a variety of 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. In recent years, as sales of our employment
screening tools to help Japanese corporations employ new graduates have tended to be concentrated in the fourthquarter, during which the relevant screening tools are sold, and in the second and third quarters, during whichscreening for employment is basically conducted by corporate customers, we have not presented cumulative
performance forecasts for the first two quarters.
• The Company has scheduled a results briefing for institutional investors and analysts on November 1, 2012.
Please refer to the IR Information for details of the materials that will be distributed at the session. The materials
will also be posted on the Company’s Web site immediately after this meeting.
URL: http://www.shl.ne.jp/ir/index.asp

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