Aug 10, 2017

Non-Consolidated Financial Results (Excerpt) for the Third Quarterof Fiscal 2017 [J-GAAP basis]
Listed Company Name:
SHl-JAPAN Ltd.
Registered on Tokyo Stock Exchange
Securities Code:4327
URL:http://www.shl.co.jp/
Representative:
Manabu Nara, Managing Director
Contact:
Naohiro Nakamura, executive director        Tel: +81-3-5385-8781
Date to submit the Quarterly Securities Report:
Aug 10, 2017
Date to start distributing dividends:
ʊSupplementary documents for this summary of financial statements
NoneResults briefing for financial results:
NoneThe original disclosure in Japanese was released on Jul 28, 2017 at 15:15 (GMT+9)
1. Non-Consolidated Financial Results for the Third Quarter of Fiscal 2017 (October 1, 2016 to Jun 30, 2017)(1) Non-Consolidated Business Results(The percentages indicate the rate of increase or decrease compared with the same period of the previous fiscal year.)Net sales
Millions ofFirst nine monthsof Fiscal 2017
First nine monthsof Fiscal 2016

Operating income

Yen%

Millions ofYen

Ordinary income%Millions ofYenNet income%Millions ofYen%

2,205

9.2

1,091

11.5

1,091

11.175015.5

2,021

19.3

979

32.6

981

30.5

649

36.6

Fully diluted
net income per share

Net income per shareFirst nine monthsof Fiscal 2017
First nine monthsof Fiscal 2016

Yen

Yen

247.00245.86214.34213.22(2) Non-Consolidated Financial Position
Total assets

Net assets

Millions of

Jun 30, 2017
Sep 30, 2016
(Reference) Equity capital:

Yen

Equity ratio

Millions of

4,766
4,398
Jun 30, 2017: ¥4,084 million

Yen%

4,087
3,789
Sep 30, 2016: ¥3,785 million

85.7
86.1

2. Dividends
End ofFirst quarter

Fiscal 2016
Fiscal 2017
Fiscal 2017 (forecast)

Dividend per share
End ofThird quarterEnd ofSecond quarter

Year-EndAnnual

YenYenYenYenYenʊʊ

49.00
55.00

ʊʊ

61.00

110.0055.00

110.00(Note) Revisions to recent dividends forecast: None
3. Non-Consolidated Forecast for the Year Ending September 30, 2017 (October 1, 2016 to September 30, 2017)
Net sales
Millions ofFiscal 2017

Operating income

Yen%

2.570

6.2

Millions of

Ordinary income

Yen%

1,111

9.2

Millions of

Net income
per share

Net income

Yen%

1,109

8.7

Millions ofYen%

752

12.8

Yen247.78(Note) Revisions to recent business forecast: Yes
With regard to net income per share, as the Company is currently in a period of acquisition of its treasury shares, it is difficult to calculate theaverage number of shares outstanding for the full-year period. Accordingly, net income per share is calculated based on the average number of shares
outstanding for the nine-month period (3,038,247 shares).

-1-(1) Application of particular accounts procedures to the preparation of quarterly non-consolidated financial statements:Yes(2) Changes in accounting policies and changes or restatement of accounting estimates(i) Changes in accounting policies caused by revision of accounting standards:
None(ii) Changes in accounting policies other than(ხ) :None(iii)Changes in accounting estimates:None(iv) Restatement:
None
(1)

Number of shares outstanding (common stock)(i) Number of shares outstanding(including treasury shares)

As of Jun 30, 2017

3,047,279

As of Sep 30, 2016

3,040,979(ii) Number of treasury shares

As of Jun 30, 2017

28,840

As of Sep 30, 2016

33(iii)Average Number of shares outstanding

First nine monthsof Fiscal 2017

3,038,247

First nine monthsof Fiscal 2016

3,031,569* Implementation status of quarterly review proceduresThis financial results summary is not subject to quarterly review procedures.

* Explanations and other special notes concerning the appropriate use of financial results forecasts
1.

2.

The forward-looking statements regarding financial results forecasts, etc., appearing in this financial results summary have been preparedbased on information currently available to the Company and certain assumptions that the Company believes to be reasonable. TheCompany makes no guarantee as to their realization. Actual financial results may differ substantially from the forecasts due to variousfactors.
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. Accordingly, the Company’s performance management is conducted on an annual basis.

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Qualitative information regarding the quarterly settlement of accounts(1) Explanation of operating results
During the first nine months of the year ending September 30, 2017 (October 1, 2016 through June 30, 2017), net
sales of SHL-JAPAN Ltd. (the “Company”) increased ¥184 million, or 9.2% year over year, to ¥2,205 million. By
business segment, “Product sales” increased 13.2% to ¥1,284 million, “Consultancy sales” increased 2.1% to ¥850
million and “Training sales” increased 35.4% to ¥70 million.
During the nine-month period under review, the self-imposed regulations regarding the employment of new
graduates* were left unchanged from those for previous fiscal year, and the media reported the current situation inwhich corporations are notably apt to secure students at an early date, given the tight labor market that favors
students. The situation is exemplified by increases in the job offers-to-seekers ratio and the early unofficial job
offer rate for new graduates who are expected to graduate in March 2018. In such an environment where thepositive sentiment of corporations continued, reflecting their favorable operating performance, the Company
conducted aggressive marketing activities in line with customers’ needs. The Company believes that this effort
contributed to year-over-year increases in net sales in all the business segments, which was also supported byorders received for large-scale employee assessment services.
Operating income for the nine-month period under review increased 11.5% year over year to ¥1,091 million.
Although the cost of goods sold increased ¥36 million, or 12.2% year over year, to ¥333 million, and selling,general and administrative expenses increased ¥36 million, or 4.9% year over year, to ¥780 million, operating
income increased ¥112 million year over year due to the increase in net sales. The increase in the cost of goods sold
was primarily attributable to an increase in subcontracting costs resulting from the increase of orders for hall tests.
The primary factors for the increase in selling, general and administrative expenses were the increases in royalty
and taxes and dues, despite a decrease in sales promotion-related expenses.
Ordinary income for the nine-month period under review increased 11.1% year over year to ¥1,091 million.
Ordinary income increased ¥109 million year over year, reflecting the increase in operating income, while theamounts of non-operating income and non-operating expenses were roughly the same.
Income before income taxes for the nine-month period under review increased ¥113 million, or 11.6% year overyear, to ¥1,094 million, due to the reporting of a ¥3 million gain on sales of investment securities as extraordinary
gains.
Net income for the nine-month period under review increased ¥100 million, or 15.5% year over year, to ¥750
million, mainly due to the increase in income before income taxes and the reduction in the corporate tax rate.
* The industry has self-imposed controls regarding the employment of new graduates, under which industrygroups agreed not to start employment PR activity and the screening process for new graduates prior to a fixed
date in light of the academic schedules for students. The Keidanren (Japan Business Federation) stipulated in
its “Guidelines for Recruiting and Employing New Graduates” that corporations’ PR activity for newgraduates who will enter corporations in fiscal 2017 onwards shall commence on and after March 1 of the year
just preceding the year of graduation or post-graduate completion, and screening activity on and after June 1of the year of graduation or completion.
-3- <Reference1: Sales by business segment>
ProducConsultancy
Training
Total

First nine months of Fiscal 2016
Millions of Yen
Component ratio
1,135
56.2
833
41.2
52
2.6
2,021
100.0

 <Reference2: Sales by quarterly basis>
First Quarter
Second Quarter
Millions ofFiscal 2015
Fiscal 2016
Fiscal 2017

Yen

260
280
278

Millions ofYen

First nine months of Fiscal 2017
Millions of Yen
Component ratio
1,284
58.2
850
38.6
70
3.2
2,205
100.0

Third Quarter

Year-End

Millions ofMillions of578
744
896

Yen n855
995
1,030

Rate of increase(decrease)
13.2
2.1
35.4
9.2

AnnualYen584399
̿Millions ofYen

2,279
2,420
̿

*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.

(2) Explanation about future prospects such as business forecasts
The operating results for the nine-month period under review showed increases in both revenue and profits
compared with the same period a year earlier. Operating income, ordinary income and net income for thenine-month period under review surpassed the forecasts for the full fiscal year ending September 30, 2017.
Meanwhile, the fourth quarter (July 1 through September 30, 2017) is projected to result in decreased revenue
and profits compared with the same period a year earlier, due to a heightened trend among corporations toward
accelerating activities for recruiting and screening new graduates who are expected to graduate in March 2018,leading to the practical completion of their activities for recruiting and screening. In light of the operating
results for the nine-month period under review and the business forecast for the fourth quarter, the Company
has revised its financial forecast for the full fiscal year ending September 30, 2017.

-4-