Nippon New Market – “Hercules”
30 January 2003
Company Name:
Representative director:
Location of Headquarter:
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 first quarter of the year ending 30 September 2003
The Company’s results for the first quarter of the year ending 30 September 2003 are summarized
as below.
Some figures in the financial statements included in this report have not been prepared as part ofthe formal closing of accounts as at 30 September 2003. The financial statements have not been
audited.
1． Operations(1) Summary of the results for the first quarter of the year ending 30 September 2003

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

1st quarter ended
31 December 2002
JPY in million
194

Percentage
Increase％
15.8

1st quarter ended 31
December 2001
JPY in million
168

Year ended 30
September 2002
JPY in million
1,173

6-

(2)

385

6-(37)

350(2) Turnover by service delivery

Products
Training
Consultancy
Total

1st quarter ended 31
December 2002
JPY in%million5327.7
2
1.2
138
71.1
194
100.0

Percentage
Increase
15.9
349.2
14.3
15.8

-1-

1st quarter ended 31
Year ended 30December 2001
September 2002
JPY inJPY in%%millionmillion
46
27.7
507
43.3
0
0.3
17
1.5
120
72.0
647
55.2
168
100.0
1,173
100.0

(3) Major fluctuations of the main assets and liabilities
Account（Assets）
Cash（Liabilities）
Income taxes payable
Consumption taxes payable
Accrued expenses
Deposits received
EquityShare capital
Retained earnings

As at 31 December2002
JPY in million
692Increase(Decrease)
JPY in million(151)

As at 30 September
2002
JPY in million
844

153218(84)
(14)
(12)
1585
2044
3560
300

12(60)

548361（Notes）
1. Only accounts with over \ 10 million fluctuation from the 2002 year-end balance areexplained below.
2. “Cash” decreased due to payments of taxes, year-end dividends and bonuses.
3. “Income taxes payable” and “Consumption taxes payable” decreased as a result of thefinal payment of the previous year’s tax.
4. “Accrued expenses” decreased due to payment of bonuses.
5. “Deposits received” increased by the amounts of taxes withheld on year-end dividends
and bonuses.
6. “Share capital” increased due to exercise of warrant rights and stock options.
7. “Retained earnings” decreased as a result of the profit appropriation.

2． Summary of operations
In the first quarter of the year ending 30 September 2003, Japanese economic conditions
became even more severe than before because of the prolonged problems from bad loans heldby banks, inability to exit from the deflationary spiral, and the increased tensions concerning
Iraq and North Korea.
Such economic conditions led to reduced employment and education by corporations, which
in turn negatively affects the human resources assessment industry, and causes a decrease inturnover.
However, we aggressively developed new products and actively marketed them to acquire
new, large customers based on our strengths in information technology and energy derived
from our younger employees.
As a result, turnover increased to JPY 194 million for this quarter, a 15.8% increase from thesame quarter in the prior year. Turnover from Products was JPY 53 million (15.9% increase),turnover from Consultancy was JPY 138 million (14.3% increase), and turnover fromTraining was JPY 2 million (349.2% increase).
The increase in turnover from Products was resulted from “HURMIS,” a simulation softwarefor employment acceptance, and human resource allocations. The increase in turnover fromConsultancy was due to the favorable progress in market development, a continuation fromlast year that promoted customization and exploitation of aptitude testing over the Internet.
The turnover from Training was derived from the introduction of a new service “Competency
Measurement Center” used for the assessment of company management.
-2-

“Cost of sales” and “sales and general administrative expenses” totaled JPY 187 million(9.7% increase from the same period in prior year), compared to the current quarter’s
turnover of JPY 194 million (15.8% increase). As a result, both operating profit and ordinary
profit amounted to JPY 6 million, a positive result in the first quarter.

3． New service information
The main new products in this quarter were “Competency Measurement Center” as describedabove, along with completion of the product development of “Tamatebako III”, which is theInternet-enabled version of our best-selling product “Images”. Both of them are now beingsold.

4． Research and development activities
Research and development activities were focused on development of training materials foruse with “Competency Measurement Center” used for assessment company management,along with the Internet version of existing training courses. All of these are expected to be thecore products for our business in the future, and we regard them as the momentum for thegrowth of our company.

5． Office circumstances
No significant movements occurred during the quarter.

6． Prospects for the current periodForecast for the year ending 30 September 2003
TurnoverOrdinaryNet profit
profit
JPY in million
Year ending 30
1,440470272September, 2003

-3-

Dividend per share
InterimYear End
Yen
5,000.00
10,000.00

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

Share capital

Share premium

ChangeinnumberEndingbalance

Change inamountEndingbalance

Change inamountEndingbalance

SharesShares

JPY inthousandJPY inthousandJPY inthousandJPY inthousand

At 30 September 2002

-8,259-548,067-309,820

In November 2002

108,2691,500

549,567-309,820

1.

In December 2002

76

8,345

10,860560,427

1,285

311,105

1.

Notes（Notes）
1. Due to the exercise of warrant rights and stock options under the Commercial Code article
280-19(2) Summary of dilution of shares

At 30 September
2002
In November 2002
In December 2002

Warrants
Decrease inEnding balance
numberShares
Shares
106
12106
94

Stock options
Decrease inEnding balance
numberShares
Shares
150
1064

14076

（Notes）
The decrease in number and the ending balances are disclosed on the basis of the number ofshares which can be issued through the exercise of rights.

(3) Change in director
Two directors, Shigeru Kiyota and Paul Basil, and a Corporate Auditor, Akinori Okata wereappointed at the shareholders’ meeting on 20 December 2002. A director, Scott Ruhfus
resigned from the board on 15 November 2002.

-4-