Year Ending September 2005
Overview of Interim-Term Financial Results and Performance (Excerpt)
April 25, 2005(a) Operating Results
Net sales for the interim term (October 1, 2004, through March 31, 2005) increased 4.1% year over year to ¥573
million. This relatively low growth-rate of 4.1% in net sales was mainly caused by the delayed timing forrecording net sales due to the increased number of corporations that approve of the “Ethics Charter on theEmployment of New Staff”—a common consent for a freeze on hiring new staff issued by the Japan Federation ofEmployers’ Associations that allows corporations to start screening university graduates only in and after April inview of scholastic curriculums that end in March. By service segment, Product sales increased 5.4% year overyear to ¥227 million and Consultancy sales from rose 3.5% to ¥331 million, but Training sales fell 2.0% to ¥14million.
Product sales, the Company’s standard commercialized product, increased ¥11 million for the interim term underreview compared with a year earlier. This sales rise was primarily attributable to ¥8 million in sales of “e Hito,” anew “Online Feed-back Counseling System” for “Internal” corporate customers. Consultancy sales advanced ¥11million over a year earlier, primarily due to favorable sales of “Tamatebako,” an Internet screening system.
Training sales remained almost flat year over year.
Operating income for the interim term ended March 31, 2005, totaled ¥110 million, up 3.9% year over year. Theyear-over-year rise in operating income totaled ¥4 million, taking into account such factors as a ¥22 million
increase in net sales; a rise of ¥4 million, or 4.4%, to ¥112 million in cost of sales; and a ¥13 million increase inselling, general and administrative expenses. Major contributors to the increase in selling, general andadministrative expenses were increases of ¥5 million in personnel expense and ¥4 million in sales promotion
expense, as well as the newly recorded ¥3 million in tax and public dues in the form of pro forma standard
taxation, which was newly introduced effective from the interim term ended March 31, 2005.
Ordinary income for the interim term under review declined 2.3% year over year, or ¥2 million, to ¥102 million. Ayear-over-year increase of ¥6 million in non-operating expenses was attributable to ¥4 million in new stock
issuing expense and a ¥3 million as loss on the devaluation of investment securities (investment in limited
partnership for investment business). An extraordinary loss of ¥6 million resulted from a loss on the retirement ofobsolete test texts.
After taking into account income taxes—current and income taxes—deferred, net income for the interim term
ended March 31, 2005, decreased 11.9% year over year to ¥55 million.
(b) Full-Year Overview (October 1, 2004, through September 30, 2005)
Consolidated net sales for the SHL Group in the interim term under review edged up 4.1% compared with
nonconsolidated net sales a year earlier. This low growth-rate was mainly caused by the delayed timing forrecording net sales due to the increased number of corporations that start screening university graduates only inand after April (as described in 3 (a) of this attachment), which had been anticipated. Consolidated ordinary
income for the interim term decreased 2.3% compared with nonconsolidated ordinary income a year earlier,mainly due to increases in such nonoperating expenses as new stock issuing expense. Meanwhile, consolidated
operating income increased 3.9% year over year.
As for an overview of the consolidated performance of the SHL Group, net sales of ¥1,508 million (up 20.0% year1

over year), ordinary income of ¥518 million (up 39.8%) and net income of ¥299 million (up 43.8%) are projected
for the year ending September 30, 2005, as per our previous guidance. A sizable increase of 20% in net sales isexpected because 1) recruiting for new university graduates has become active and longer term as corporations
rally to increase employment; 2) sales activity by major agencies that serve as a marketing channel has become
successful; and 3) a sales increase from a sales subsidiary that handles an employee-assessment service (called“Internal”) is highly expected.
The Group’s income structure has a feature that the rate of increase in profitability tends to be higher than that innet sales as the ratio of variable expenses is higher than the ratio of fixed expenses. Accordingly, ordinary income
and net income are expected to increase 39.8% and 43.8%, respectively, on a consolidated basis over thecorresponding previous interim term a year earlier, reflecting the predicted 20.0% rise in net sales.

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