SHL-JAPAN Ltd.
Year Ending September 2014
Non-consolidated Financial and Operating Results (Excerpt) for the Second Quarter Ended
March 31, 2014 (J-GAAP basis)
May 7, 2014

 Registered on Tokyo Stock Exchange

Listed Company Name: SHL-JAPAN Ltd.
Securities Code4327

URL:

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

Representative:

Manabu Nara, Managing Director

Contact:

Naohiro Nakamura, Executive Director

Date to submit the Quarterly Securities Report:

May 15,2014

Date to start distributing dividends:

June 2,2014

TEL:+81-3-5385-8781

The original disclosure in Japanese was released on April 28, 2014 at 15:15 (GMT+9)

Qualitative information regarding the quarterly settlement of accounts(1) Explanation of Operating results
During the first half of the year ending September 30, 2014 (October 1, 2013, through March31, 2014), net sales of SHL-JAPAN Ltd. (the “Company”) increased ¥104 million, or 8.9%,
year over year to ¥1,280 million. By business segment, “Product sales” increased 15.8% to ¥614
million, “Consultancy sales” increased 2.6% to ¥643 million and “Training sales” increased
23.1% to ¥22 million. The increase in Product sales was primarily attributable to favorable salesof the “GAB,” which is used for the screening of new graduates recruited for the main career
track and for which the effect of launching new services was considerable. The increase inConsultancy sales mainly reflected favorable sales of “Tamatebako,” a Web assessment tool forthe screening of new graduates.
The Company is confident that the increase in revenue for the first half in all businesssegments was mainly attributable to our aggressive marketing activities that fit well withcustomers’ needs in view of the positive posture of corporations toward employment. The mediahas reported an increase in the informal job offer rate for new graduates this year with asignificant rise in the ratio of job offers to applicants due to a considerable increase in the
anticipated number of new graduates to be employed next year, against a backdrop of general
expectations of economic recovery.
Operating income for the first half under review increased 7.5% year over year to ¥682
million. The cost of goods sold rose ¥39 million, or 34.8%, year over year to ¥152 million, andselling, general and administrative expenses increased ¥17 million, or 4.0%, year over year toSHL-JAPAN Ltd.
¥445 million. However, operating income increased ¥47 million year over year due to theincrease in revenue. The increase in the cost of goods sold was primarily attributable toincreases in subcontract cost and the amortization cost for product masters of newly developed
software associated with the provision of new services, as well as the increase in deliveries ofour products ordered. The increase in selling, general and administrative expenses was mainly
attributable to the year-over-year increase in labor costs largely due to the expansion centeredon sales personnel despite decreases in several account items such as research and development
expenses.
Ordinary income for the first half under review increased ¥44 million, or 7.0%, year over yearto ¥682 million. Although non-operating expenses were as small as they were in the same
period a year earlier, non-operating income decreased ¥2 million year over year. The decrease in
non-operating income was mainly attributable to the recording of ¥2 million in gains on
investments in a limited liability partnership for venture businesses for the same period a year
earlier.
Income before income taxes for the first half under review totaled ¥683 million (up 0.3% yearover year). Income before income taxes increased ¥1 million year over year, reflecting ayear-over-year decrease of ¥50 million in extraordinary gains despite a year-over-year decreaseof ¥7 million in extraordinary losses and an increase in ordinary income. The decrease in
extraordinary gains was primarily due to the recording of ¥52 million in insurance income
arising from the passing of a Director despite the recording of ¥1 million for the same period ayear earlier as reversal of allowance for doubtful accounts for golf club memberships. The
decrease in extraordinary losses was due to the recording of ¥7 million in directors’ retirement
benefits for the same period a year earlier.
Net income for the first half under review amounted to ¥418 million (up 5.4% year over year).
Income taxes—current decreased ¥19 million year over year to ¥264 million as the estimatedeffective tax rate was set to 38.74% (compared with 41.7% for the same period a year earlier)pursuant to a change in the corporate tax rate, in addition to the increase in income before
income taxes. As a result, net income increased ¥21 million year over year.

(2) Explanation about future prospects such as business forecasts
As mentioned earlier in “(1) Explanation of Operating results,” given theforward-looking posture of corporations toward employment against a backdrop ofgeneral expectations of economic recovery, screening and employment activities ofcorporations targeting new graduates next year are expected to reach a peak in thethird quarter (April 1, 2014, through June 30, 2014). However, due to the impact of
the raised consumption tax in April 2014, the sense of uncertainty in the near-term

SHL-JAPAN Ltd.
economic environment cannot be cast aside and the Company recognizes that themarket for screening and employment might be affected by future economic ups anddowns.
Under such a business environment, we intend to continue increasing our operating
performance through enhanced efforts to strengthen our business quality for the purpose ofspeedily providing optimum services based on our precise analysis of corporate needs.
Under the recognition described above and based on our analysis of the operating results,financial position and other managerial administrative data for the first half ended March 31,
2014, followed by our careful consideration of business forecasts, the Company is not at thistime revising its financial forecast for the year ending September 30, 2014, which was releasedon October 25, 2013.

(Note)* Implementation status of quarterly review proceduresThis financial results summary is not subject to quarterly review procedures under the Financial
Instruments and Exchange Act, and the quarterly financial statement review procedures based on
the Act were in progress at the time of the disclosure of these financial results.

* The forward looking statements regarding financial results forecasts, etc. appearing in thisfinancial results summary have been prepared based on information currently available to theCompany and certain assumptions that the Company believes to be reasonable. The Company
makes no guarantees as to their realization. Actual financial results may differ substantially fromthe 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. In recent years, our sales have tended to beconcentrated in the second quarter, during which screening for theemployment of new graduates is often conducted by many corporate
customers.

Document and entity information
Sep 2014

Mar 2014

Company information
Company information
FASF member marktrue╙䋲྾ඨᦼ᳿▚⍴ା䈀ᣣᧄၮḰ䈁(㕖ㅪ⚿)Document name
Filing dateCompany name
Stock exchange listings
Tokyo
Tokyo 1st section
Tokyo 2nd section
Tokyo Mothers
Tokyo JASDAQTokyo PRO MarketTokyo Others
NagoyaNagoya 1st section
Nagoya 2nd section
Nagoya Centrex
Nagoya Others
SapporoSapporoSapporo Ambitious
Sapporo Others
Fukuoka
Fukuoka
Fukuoka Q-Board
Fukuoka Others
Green SheetJapan Securities Dealers AssociationSecurities code
URL
Business category
General BusinessSpecific Business
Fiscal Year End
Quarterly period
Representative
Title
Name
Inquiries
Title
Name
Tel
Other
Quarterly statement filing date (as planned)
Dividend payable date (as planned)
Supplemental material of quarterly results
Way of getting
Convening briefing of quarterly results

2014-04-28
SHL-JAPAN Ltd.
truetrue43270
http://www.shl.co.jp/true2014-09-30
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2014-05-15
2014-06-02
truetrue⸽೛䉝䊅䊥䉴䊃䊶ᯏ㑐ᛩ⾗ኅะ䈔㩷

Target for briefing of quarterly results(⊖ਁ౞ᧂḩಾᝥ䈩)

Note to fraction processing method

Business Results-Quarterly operating results(in millions of yens)
Mar 2014
Quarterly operating results
Quarterly operating results
Operating results
Income statements information
Net sales
Net sales% change
Operating income
Operating income% change

Mar 2013

1,280
8.9

1,176
12.0

682
7.5

635
24.5

Ordinary income
Ordinary income% change
Net incomeNet income% change
Other operating results
Net income per share (Yen)
Diluted net income per share (Yen)
Note to operating results

682
7.0

637
24.7

418
5.4

397
36.1

135.05133.87128.17-(ᵈ)ᒰ␠䈲䇮ᐔᚑ25ᐕ䋴᦬䋱ᣣઃ䈪䋱ᩣ䉕100ᩣ䈫䈜䉎ᩣᑼಽഀ䉕ⴕ䈦䈩䈍䉍䉁䈜䈏䇮ᐔᚑ25ᐕ䋹᦬ᦼ䈱ᦼ㚂䈮ᒰ⹥ᩣᑼಽഀ䈏ⴕ䉒䉏䈢䈫઒ቯ䈚䈩䋱ᩣᒰ䈢䉍྾ඨᦼ⚐೑⋉䉕▚ቯ䈚䈩䈍䉍䉁䈜䇯㩷

Note to operating results

Business Results-Quarterly financial positions(in millions of yens)
Mar 2014
Quarterly financial positions
Quarterly financial positions
Financial positions
Total assets
Net assets
Capital adequacy ratio (%)
Note to financial positions
Owner's equity
Note to financial positions

Sep 2013

3,918
3,319
84.5

3,532
3,046
86.1

3,309

3,040

-

Business Results-Note to quarterly business results
Mar 2014
Quarterly note to business results
Quarterly note to business results
Note to financial results
Note to financial results-Quarterly Dividends(in millions of yens)Sep 2014
Quarterly dividends
Quarterly dividends
Dividends
Dividend per share (Yen)Dividend per share (Yen)First quarter
ResultSecond quarter
ResultThird quarter
ResultForecast
UpperLower
Year end
ResultForecast
UpperLower
AnnualResultForecast
Upper
Lower
Correction of dividend forecast from the most recent dividend forecast

Mar 2014-

Sep 2013

45.00

3,700.00
-

53.00
45.00
90.00
-

Correction of dividend forecast from the most recent dividend forecast
AnnualNote to dividends
Note to dividends-(ᵈ)ᒰ␠䈲䇮ᐔᚑ25ᐕ䋴᦬䋱ᣣઃ䈪䋱ᩣ䉕100ᩣ䈫䈜䉎ᩣᑼಽഀ䉕ⴕ䈦䈩䈍䉍䉁䈜䈏䇮ᒰ⹥ᩣᑼಽഀ೨䈱㈩ᒰ㊄䈮䈧䈐䉁䈚䈩䈲ታ㓙䈱㈩ᒰ㊄䈱㗵䉕⸥タ䈚䈩䈍䉍䉁䈜䇯㩷

AnnualQuarterly Forecasts(in millions of yens)Sep 2014
Quarterly forecasts
Quarterly forecasts
Title for forecasts
Preamble to forecasts
Preamble to forecasts
Main table of forecasts
Net sales
Net sales
Forecast
Upper
Lower
% change
Forecast
Upper
Lower
Operating income
Operating income
Forecast
Upper
Lower
% change
Forecast
Upper
Lower
Ordinary income
Ordinary income
Forecast
Upper
Lower
% change
Forecast
UpperLower
Net income
Net income
Forecast
Upper
Lower
% change
Forecast
Upper
Lower
Net income per share (Yen)
Net income per share (Yen)
Forecast
Upper
Lower
Note to forecasts
Note to forecasts
Correction of financial forecast from the most recent financial forecast
Correction of financial forecast from the most recent financial forecast
Forecast䋳䋮ᐔᚑ26ᐕ䋹᦬ᦼ䈱ᬺ❣੍ᗐ䋨ᐔᚑ25ᐕ10᦬䋱ᣣ䌾ᐔᚑ26ᐕ䋹᦬30ᣣ䋩㩷
-

2,045
3.9-

898
4.7-

899
4.2-

553
0.1-

178.35--

Notes, Quarterly-Applying of specific accounting of the consolidated quarterly
financial statements
Mar 2014
Applying of specific accounting of the consolidated quarterly financial statements
Applying of specific accounting of the consolidated quarterly financial
statements
OthersApplying of specific accounting of the quarterly financial statements
Applying of specific accounting of the quarterly financial statements
Note to applying of specific accounting of the quarterly financial
statements
Note to applying of specific accounting of the quarterly financial
statements

true-Notes, Quarterly-Changes in accounting policies and accounting estimates
retrospective restatement
Mar 2014
Changes in accounting policies, accounting estimates and retrospective
restatement
Changes in accounting policies, accounting estimates and retrospective
restatement
OthersChanges in accounting policies, accounting estimates andretrospective restatement
Changes in accounting policies based on revisions of accounting
standard
Changes in accounting policies other than ones based on revisionsof accounting standard
Changes in accounting estimatesRetrospective restatement
Note to changes in accounting policies, accounting estimates andretrospective restatement
Note to changes in accounting policies, accounting estimates andretrospective restatement--Notes, Quarterly-Number of issued and outstanding shares common stock
Mar 2014
Number of issued and outstanding shares (common stock)
Number of issued and outstanding shares (common stock)
OthersNumber of issued and outstanding shares (common stock)
Number of issued and outstanding shares at the end of fiscal year(including treasury stock)
Number of treasury stock at the end of fiscal year
Average number of shares
Note to number of issued and outstanding shares (common stock)

Note to number of issued and outstanding shares (common stock)

Sep 2013

Mar 2013

3,101,800

3,101,800

21
3,101,779

21(ᵈ)ᒰ␠䈲䇮ᐔᚑ25ᐕ䋴᦬䋱ᣣઃ䈪䋱ᩣ䉕100ᩣ䈫䈜䉎ᩣᑼಽഀ䉕ⴕ䈦䈩䈍䉍䉁䈜䈏䇮ᐔᚑ25ᐕ䋹᦬ᦼ䈱ᦼ㚂䈮ᒰ⹥ᩣᑼಽഀ䈏ⴕ䉒䉏䈢䈫઒ቯ䈚䈩ᦼਛᐔဋᩣᑼᢙ䉕▚ቯ䈚䈩䈍䉍䉁䈜䇯㩷This information is a summary of the earnings report. It does not contain all details included in the earnings report disclosed in Japanese.

3,101,800