Financial and Operating Results (Excerpt) for the Second Quarter, Ended March 31, 2009

[Qualitative information, financial statements, etc.]

1. Qualitative information regarding operating results
As SHL-JAPAN Ltd. (the “Company”) merged its sole consolidated subsidiary as of January 1, 2008,
the operating results of the Company for the year ending September 2009 will be reported only on anon-consolidated basis. For the interim term, or two cumulative quarters, ended March 31, 2009
(October 1, 2008, through March 31, 2009), net sales advanced ¥23 million, or 2.8% year over year,operating income increased ¥44 million, or 13.9%, ordinary income rose ¥48 million, or 15.3%,
income before income taxes increased ¥19 million, or 6.3%, and net income for the interim termadvanced ¥10 million, or 5.9%, compared with the corresponding consolidated figures for theinterim term of the previous fiscal year. Consequently, the Company secured increases in revenues
and profits.
The following describes the operating results for the interim term ended March 31, 2009,
compared with the corresponding interim term of the previous fiscal year on a non-consolidatedbasis.
Net sales for the interim term under review advanced ¥31 million, or 3.9% year over year, to ¥848
million. By business segment, “Product sales” improved 1.3% to ¥286 million and “Consultancysales” increased 6.5% to ¥545 million, whereas “Training sales” decreased 22.7% to ¥16 million.
Above all, “Consultancy sales” increased ¥33 million year over year due to favorable sales ofcustomized versions of the “Web Aptitude Test.”
Operating income for the interim term under review totaled ¥361 million, up 15.5% year over year.
Although selling, general and administrative expenses increased ¥3 million, or 1.0%, to ¥369 million,operating income for the interim term under review advanced ¥48 million year over year due to adecrease of ¥20 million, or 14.6%, in cost of goods sold to ¥117 million and an increase of ¥31
million in net sales.
Ordinary income for the interim term under review totaled ¥364 million, up 16.1% year over year.
This ¥50 million increase in ordinary income reflected a year-over-year increase of ¥5 million innon-operating income in addition to a rise in operating income, which were partly offset by ayear-over-year increase of ¥3 million in non-operating expenses. The rise in non-operating income
was primarily attributable to the recording of a ¥7 million return premium for cancellation of certain
life insurance contracts, whereas the rise in non-operating expenses was mainly due to a ¥6 million
loss on investment in capital of a limited liability investment partnership for venture enterprises.
Income before income taxes for the interim term under review decreased ¥32 million, or 8.8%

-1-year over year, to ¥335 million. Major contributors to this decline were a ¥54 million gain on
extinguishment of tie-in shares, which was derived from the merger of a subsidiary, under
extraordinary gains that was recorded in the corresponding interim term of the previous fiscal year,
and the recording of a ¥28 million loss from the integration or abolition of sales bases (recorded as a“loss on retirement of noncurrent assets” and “office transfer expenses”) under extraordinary losses.
After taking into account the above factors and income taxes—current and income
taxes—deferred, net income for the interim term ended March 31, 2009, decreased ¥43 million to¥197 million.

2. Qualitative information regarding financial forecasts
As the full-year financial forecasts for the year ending September 30, 2009, based on the operating
results for the interim term under review are expected to fall short of the previously released
projections, we are revising our full-year financial forecasts at this time.
Net sales
Previous
projection (A)Revisedprojection (B)Increase/decrease(B – A)
Rate of change(%)
Non-consolidated
operating results
for the year ended
September 30,
2008
Consolidated
operating results
for the year ended
September 30,
2008

Operating income

Ordinary income(Millions of yen)
Net income

1,840

754

752

437

1,710

693

694

386

(130)

(60)

(58)

(51)

(7.1)

(8.1)

(7.7)

(11.7)

1,668

689

691

473

1,677

693

693

419

As described in “1. Qualitative information regarding operating results” above, the Company
secured increases in revenues and profits for the interim term ended March 31, 2009. However,according to an analysis of the Company’s management indices, sales to the top 100 customers rose
only 8%, which was below our expectation, although sales of Web-based assessment tools(Internet-related service) remained relatively firm with a year-over-year rise of approximately 15%.
These tendencies likely indicate the weakened intention of our customers to engage newemployees, considerably affected by the current stagnant economic environment globally, and werecognize that this harsh business climate will continue. Consequently, we anticipate a more cautious-2-and reluctant approach by corporations to large-lot agreements in the fourth quarter, during which
the recruiting of new graduates for the next fiscal year will be a main management theme at many
corporations, accompanied by a continued tendency toward requiring more time to conclude ouragreements.
Taking into account the above factors, we have revised our previous projections for the fiscal year
ending September 2009 to the following: ¥1,710 million in net sales (up 2.5% year over year), ¥693
million in operating income (up 0.6%), ¥694 million in ordinary income (up 0.5%) and ¥386 million
in net income (down 18.5%).
The Company plans to distribute an annual dividend of ¥6,800 per share without revising thepreviously released projection.

Note: Compared with the consolidated operating results for the previous fiscal year, the above
financial forecasts for the year ending September 30, 2009, correspond to ¥1,710 million in
net sales (up 1.9% year over year), ¥693 million in operating income (up 0.0%), ¥694 million
in ordinary income (up 0.2%) and ¥386 million in net income (down 8.0%).

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