Year ending September 2011
Non-consolidated Financial and Operating Results (Excerpt) for the Second Quarter Ended
March 31, 2011 (in accordance with the GAAP of Japan)
April 28,2011

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:
Date to start distributing dividends:

Registered on Osaka Securities Exchange

TEL:+81-3-5385-8781

May 16,2011

June 1,2011

1. Qualitative information regarding operating results
For the second quarter of the year ending September 30, 2011 (October 1, 2010, through March 31,2011), net sales of SHL-JAPAN Ltd. (the “Company”) increased ¥15 million, or 1.7% year over year,to ¥930 million. By business segment, “Product sales” increased 5.9% to ¥355 million and“Consultancy sales” decreased 0.6% to ¥556 million, whereas “Training sales” decreased 6.8% to¥18 million. After the Great East Japan Earthquake on March 11, 2011, many clients suspended orpostponed their schedules for recruiting and selecting new graduates, which delayed our services forjob applicant testing and the provision of our Human Assessment Services.* This was a significant
factor that reduced net sales during the second quarter under review. Despite such an environment,
the Company achieved a slight increase in net sales, which was primarily attributable to favorable
sales of the “GAB” in “Product sales.” The “GAB” is used for the screening of new graduates whowant to be recruited on the main career track.
Operating income decreased 0.5% year over year to ¥412 million. Despite the increase in revenue
during the second quarter under review, the cost of goods sold of ¥114 million (up ¥1 million, or1.0%, from a year earlier) and selling, general and administrative expenses of ¥403 million (up ¥16million, or 4.2%, year over year) resulted in operating income declining ¥2 million from a yearearlier. The increase in selling, general and administrative expenses was primarily attributable to anincrease of ¥23 million in labor costs due to the expansion of sales personnel.
Ordinary income decreased 0.2% from a year earlier to ¥414 million. Non-operating income
increased ¥2 million, which was offset by a decrease in operating income, resulting in ordinary
income almost at the same level as a year earlier. The increase in non-operating income was mainly
due to a ¥2 million gain on investments in a limited liability partnership for venture businesses.
Income before income taxes decreased ¥3 million, or 0.9%, year over year to ¥410 million for the㩷㩷㪄㩷㪈㩷㪄second quarter under review due to an extraordinary loss of ¥3 million on the retirement ofnoncurrent assets for office renovation at the head office.
After taking into account the above factors and income taxes—current and incometaxes—deferred, net income for the second quarter under review decreased ¥2 million, or 0.9%, froma year earlier to ¥243 million.
*Through our Human Assessment Services, professional trained assessors observe, record, classify
and evaluate the examinees’ behavior in group discussions or simulated scenes, provide feedback to
examinees and submit reports on individuals’ talent to the client.

2. Qualitative information regarding business forecasts
Luckily, the direct impact of the Great East Japan Earthquake that occurred on March 11, 2011, on
the Company was insignificant. However, unlike other years when the Company’s second and thirdquarters were the peak for our clients recruiting and selecting new graduates, many clients havesuspended or postponed their schedule due to the impact of the Great East Japan Earthquake. We
anticipate that the period for recruiting and selecting new graduates from among those who
graduated in March 2012 will be prolonged.
Despite such an environment, the Company believes that clients’ need for services to help themrecruit and select new graduates will remain strong. Based on this belief, we will focus on continual
customer follow-up activities so that we will not miss any business opportunities. By developing
aggressive sales activities, the Company intends to improve business performance.
Under the aforementioned recognition and based on our analyses of the operating results, financial
position and other managerial administration data for the second quarter ended March 31, 2011,
followed by our careful consideration of business forecasts, the Company is not at this time revising
its financial forecasts for the year ending September 30, 2011, which were released on January 31,2011.
Notes: Of the financial forecasts released on January 31, 2011, net income per share has changed
because the delivery date of the Company’s own shares that it purchased was determined at a later
date, but there is no change in the other forecasts.

*Status of a quarterly review- This financial summary does not need to undergo a quarterly review under the Financial Instruments andExchange Act. The quarterly financial statements under the Financial Instruments and Exchange Act have notbeen reviewed at the time of the announcement of this financial summary.

*Explanations and other special notes concerning the appropriate use of business performance forecasts- All forecasts in this document are based on various assumptions with information available at this time andtherefore involve known and unknown risks and uncertainties. Actual results to differ materially from theseforecasts.
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