NASDAQ Japan Market
25 January 2002
Company Name:
Representative director:
Location of Headquarter:
Contact:

Japan SHL 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 first quarter of the year ending 30 September 2002
The Company’s results for the first quarter of the year ending 30 September 2002 are summarized
as follows.
Some figures in the financial statements included in this report have not been prepared as part of
the formal closing of accounts as at 30 September 2002. The financial statements have not been
audited.
1． Operation(1) Summary of the results for the first quarter of the year ending 30 September 2002

TurnoverOperating
Profit / (Loss)
Ordinary
Profit / (Loss)

1st quarter ended
31 December 2001
JPY in million
168

Percentage
Increase％
19.6

1st quarter ended 31
December 2000
JPY in million
140

Year ended 30
September 2001
JPY in million
950

(2)

-8312

(37)

-8312

(2) Turnover by service delivery

Products
Training
Consultancy
Total

1st quarter ended 31
Percentage
December 2001
Increase
JPY in(Decrease)%million4627.7(0.4)
00.3(48.4)
120
72.0
30.5
168
100.0
19.6

-1-

1st quarter ended 31December 2000
JPY in%million4633.3
10.7
9266.0140
100.0Year ended 30
September 2001
JPY in%million
491
51.7
20
2.2
438
46.1
950
100.0

(3) Major fluctuations of the main assets and liabilities
Accounts（Assets）
Cash
Trade debtors（Liabilities）
Income taxes payable
Deposits received
EquityShare capital
Share premium
Other retained earnings

As at 31 December
2001
JPY in million
701
155

Increase(Decrease)
JPY in million
154
55

As at 30 September
2001
JPY in million547
99419(95)
14100
5542
305
159

185
251(136)

356
54296

（Notes）
1. Only accounts with over \ 10 million fluctuation from the year-end balance of 2001 are
explained.
2. “Share capital”, “Share premium” and “Cash” increased due to a capital injection during
the year.
3. “Trade debtors” increased due to higher volume of sales in December 2001 compared with
September 2001.
4. “Income taxes payable” decreased as a result of the payment of the previous year’s taxes.
5. “Deposits received” increased by the amounts of taxes withheld on dividends anddirectors’ bonus.
6. “Other retained earnings” decreased as a result of the profit appropriation and theoperating losses for the first quarter.

2． Summary of operation
In the first quarter of the year ending 30 September 2002, economic stagnation andSeptember 11th attack in the US has damaged the Japanese companies’ results, causing areduction in exports. In addition, the unemployment rate is at a record high, and employment
problems have decreased personal consumption. The Japanese economy continues to be in asevere situation.
Such economic stagnation has decreased employment of new graduates and resulted inJapanese companies spending less on hiring of staff compared to previous years. This has
been the main factor leading to profit decreases in the assessment of human resourcesindustry.
However, the assessment test, which we launched last year, matches the needs of large
companies in relation to recruitment process efficiency and is growing to be an amazing
success, which we have never experienced. In addition, the Osaka office (a sales office) has
continued to attract new clients since the operation commenced.
These factors increased sales by JPY 27 million for this quarter (JPY 168 million, 119.6% ofthe last year’s quarter) compared to that for the same quarter last year.

-2-However, administrative expenses increased as a result of rent expenses etc. (JPY 8 million)
and personnel costs of the Otemachi office (Corporate Culture Measurement Center) which
will begin sales operation in April, 2002, and the rent increase by moving from the Shinbashi
office to Kudanshita for expansion of business, resulting in an operating loss of JPY 2 million.
The stock listing expenses (JPY 33 million) within non-operating expenses increased theordinary loss to JPY 37 million.
The ordinary loss arose from stock listing expenses, investment expenses to enlarge the sales
location, and the seasonal changes in sales.

3． New service information
The main new products in this quarter were “Tamatebako 2002” and “Meyasubako ver.2.”“Tamatebako 2002” is the 2002 version of the on-line tool using the Internet to select newgraduates. This tool ranks applicants applying through Internet, by going through a large
number of application documents by computer based on certain standards.
“Meyasubako ver.2” is a new version of the tool to measure employees’ satisfaction
objectively, using the Internet. The purpose of this tool is to assist organization development
by measuring changes in employees’ loyalties, trustfulness, and anxiety.

4． Research and development activities
Research and development activities were focused on Corporate Culture Measurement tool.
This tool is the Japanese language version of the Corporate Culture Questionnaire (CCQ) ofSHL UK. The tool facilitates specific suggestions on how to create a strong corporate culture.
The tool is still being developed and sales are expected to begin in April, 2002.

5． Office circumstances
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 forInternet services. The Osaka office is operated for the purpose of developing new customers
in Kansai area.
Furthermore, the Shinbashi office was moved to Kudanshita, renamed the Kudanshita office,and has been operated to strengthen agency sales.

6． Prospects for the current period
We intend to disclose a result of each quarter, but not in respect of future prospects.

-3-7． Others(1) Summary of issued shares and dilution of shares.
Issued shares

Share capital

Share premium
Notes

Change innumberEndingbalance

Change inamountEndingbalance

Change inamountEndingbalance

SharesShares

JPY inmillion

JPY inmillion

JPY inmillion

JPY inmillion30 September 2001

-7,092

-356

-

54

10 December 2001

1,000

8,092

170

526248302

1.

In December 2001

378,12935303305

2.

In December 2001

80

8,209

12542-305

3.

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

30 November 2001
In October 2001
In November 2001
In December 2001

Warrants
Decrease inEnding balance
numberShares
Shares189
5 Note 1184
5 Note 1
17937142

Stock options
Decrease inEnding balance
numberShares
Shares24424424480
164（Notes）
1. Due to the lapse of rights resulting mainly from resignation of employees.
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.

(3) 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.

-4-