NASDAQ Japan Market
26 July 2002
Company Name:
Representative director:
Location of Headquarters:
Contact:

SHL Japan Ltd. (code #: 4327)
Yuzo Shimizu
5-38-16 Chuo Nakano-Ku Tokyo
Naohiro Nakamura, Director,
Office Management Team Leader
Tel: 03-5385-8781

Summary of results for the nine months ended 30 June 2002
The Company’s results for the nine months ended 30 June 2002 are summarized as follows.
Some of the financial information included in this report has not been prepared as part of theformal closing of accounts as at 30 September 2002. The financial information has not beenaudited.
1． Operation(1) Summary of the results for the nine months ended 30 June 2002

TurnoverOperating
ProfitOrdinary
ProfitNine months ended
30 June 2002
JPY in million
902

Percentage
Increase(Decrease)％
11.4

Nine months ended
30 June 2001
JPY in million
809

Year ended 30
September 2001
JPY in million
950

311(6.8)334

312

276(17.2)

333

312

(2) Turnover by service

Products
Training
Consultancy
Total

Nine months ended
30 June 2002
JPY in%million
421
46.7
14
1.6
466
51.7
902
100.0

Percentage
Increase(Decrease)
0.3(21.7)
25.7
11.4-1-

Nine months ended 30
June 2001
JPY in%million
420
51.9
18
2.3
371
45.8
809
100.0

Year ended 30
September 2001
JPY in%million
491
51.7
20
2.2
438
46.1
950
100.0

(3) Major fluctuations in assets and liabilities
Accounts（Assets）
Cash
Trade debtors
Intangible assets: productmaster work in process（Liabilities）
Income taxes payable
Accrued expenses
EquityShare capital
Share premium
Other retained earnings

As at 30 June 2002
JPY in million
840
216

Increase(Decrease)
JPY in million
293117As at 30 September
2001
JPY in million
547992617936(100)(30)

100
66

545
309
373

189
255
77356
54296

（Notes）
1. Only accounts with over \ 10 million fluctuation from the 2001 year-end balance areconsidered.
2. “Share capital”, “Share premium” and “Cash” increased due to a capital injection during
the nine months ended 30 June 2002.
3. “Trade debtors” increased due to higher turnover during the quarter ended 30 June 2002
compared with the quarter ended 30 September 2001.
4. “Product master work in process” increased mainly due to higher volumes of materials forgroup discussions to be used for assessment centers.
5. “Income taxes payable” decreased as a result of the final payment of tax for the previous
year and the interim payment in the current year tax.
6. “Accrued expenses” decreased due to decrease in accrued bonuses and advertisement
expenses. The accrued bonuses for the nine months ended 30 June 2002 were computed
based on a two month service period, while those for the year ended 30 September 2001
were based on five months.
7. “Other retained earnings” increased as a result of the favorable operating result for thenine months ended 30 June 2002.

2． Summary of operations for the nine-months ended 30 June 2002
In the nine months ended 30 June 2002, global slow demand in the Information Technology
sector and slowdown in the stock market, has caused the Japanese economy to remain in asevere condition. Also the expected full recovery of the U.S. economy continued to remain to
be seen.
Employment, which is the focus of our business, continues to be in a difficult period. The
level of unemployment has been higher than that for the corresponding month of the previousyear, exceeding 5 percent. Although the ratio of job openings to applications by newgraduates as at March 2002 (based on research conducted by Recruit Works R&D) improved
slightly from the previous year from 1.09 times to 1.33 times, it continues to remain at a lowlevel.
Current economic conditions has led to reduced employment of new graduates and resulted inJapanese companies spending less on hiring of staff. This has been the main factor leading toprofit decreases in the human resources assessment industry in the period. However, we haveco-hosted a number of seminars, such as “Challenge to recruitment using the Internet” with-2-agencies and have also held a number of our own seminars, such as “Human resources, Bigchallenge” and “Commemorative seminar for establishment of the corporate culture
measurement center” in order to expand sales of various assessment services, such as theassessment test, which will be used for recruitment of applicants who will graduate in March
2003. In addition, we have also conducted active proposal type marketing activities towards
leading companies that employ a large number of new graduates, in order to develop business.
Psychometric testing using internet technology is becoming a “hit service” as a result ofleading companies’ wish to make recruitment examinations more efficient.
Sales for the period increased 11.4 percent over the corresponding period last year to JPY 902
million. Product sales increased 0.3 percent to JPY 421 million, consultancy sales increased
25.7 percent to JPY 466 million and training sales, such as seminars, decreased 21.7 percent
to JPY 14 million. Product sales remained stable compared with the corresponding period
last year. Consultancy sales increased drastically as a result of increased use of internet
technology for tests and success of tailored services requested by customers compared withthe corresponding period last year.
Operating income for the period decreased 6.8 percent over the previous period to JPY 311
million. This was mainly due to an increase in selling, general and administration expenses
resulting from implementation of plans to reinforce the sales & marketing function. One
development was the establishment and move of service branches, which resulted in a JPY 49
million increase in expenses (excluding personnel cost) including JPY 37 million for
Otemachi office and JPY 12 million for Osaka office. Another development was theincrease in employee numbers, which resulted in a JPY 42 million increase in personnel costsin the sales & & marketing function.
Ordinary income for the period decreased JPY 57 million to JPY 276 million, a 17.2 percent
decrease compared with the previous period. Most of this decrease was attributable to stocklisting expenses (JPY 33 million) in non-operating expenses.

3． New service information“Meyasubako ver.2.” (a tool to measure employee satisfaction), “Tamatebako 2002” (a tool
using the Internet to select new graduates) and “HOME SAVER” (materials for groupdiscussions) have been completed and launched in this period.

4． Research and development activities
Research and development activities were focused on the introduction of internet technology
in order to make human resource assessment services more effective assessment centermaterials, a tool for measurement of management skills and a corporate culture measurement
tool. We regard the assessment service using these tools as our main business.

5． Office development
We opened the Otemachi office and the Osaka office in August and October 2001,respectively. The Otemachi office is currently used as a demonstration room mainly for
psychometric testing with Internet technology and also for public presentations about
assessment centers and OPQ. The Osaka office operates to develop new customers in theKansai area.
In addition, the Shinbashi office was moved to Kudanshita, and has operated to strengthen
agency sales.
-3-6． Prospects for the current period
Estimation for the year ending 30 September 2002
SalesYear ended

1,300

Ordinary
income
JPY in million
375

Dividend per share
Year ended
Yen
5,300.00
10,000.00

Net income

214

7． Others(1) Summary of issued shares and dilution of shares.
Summary of issued shares
Issued shares

Share capital

Share premium
Notes

Change innumberEndingbalance

Change inamountEndingbalance

Change inamountEndingbalance

SharesShares

JPY inthousandJPY inthousandJPY inthousandJPY inthousand30 September 2001

-7,092-356,302-54,00210 December 2001

1,000

8,092

170,000

526,302

248,000

302,002

1.

In December 2001117

8,209

15,885542,187

3,962

305,964

2.

In January 2002

28,211210542,397

214

306,178

2.

In February 2002

14

8,225

1,560

543,957

1,285

307,464

2.

In March 2002

13

8,238

1,455

545,412

1,178

308,642

2.

In June 2002

58,243525

545,937535

309,1772.

（Notes）
1. Due to capital increase resulting from stock listing
2. Due to the exercise of warrant rights and stock options under the Commercial Code article
280-19 before amendment below
Summary of dilution of shares

30 September 2001
In October 2001
In November 2001
In December 2001
In January 2002
In February 2002
In March 2002
In June 2002

Warrants
Decrease inEnding balance
numberShares
Shares1895 Note 1
184
5 Note 1
17937142
214012128
11117
5112

Stock options
Decrease inEnding balance
numberShares
Shares
244
244
244
80
164
164
2
162
2160160（Notes）
1. Due to the lapse of rights resulting mainly from resignation of employees.
-4-2. The decrease in number and the ending balances are disclosed on the basis of the numbersof shares which can be issued through the exercise of rights.

(2) Change in director
A director, Shuichi Yamada, was appointed as the managing director at the meeting of theboard of directors on 26 December 2001.
Naohiro Nakamura and Masaki Sanjo were appointed as directors in the shareholders’meeting on 26 December 2001.
A director, Masaaki Hori resigned from a director on 31 March 2002.
(3) Change in organization
Corporate culture measurement center was established in the head office in Nakano todevelop new consulting business for enhancement of customer’s organization on 1 April
2002.

-5-