February 5, 2015

Non-Consolidated Financial Results (Excerpt) for the First Quarterof Fiscal 2015 [J-GAAP basis]
Listed Company Name:
SHl-JAPAN Ltd.
Securities Code:4327
Representative:
Manabu Nara, Managing Director
Contact:
Naohiro Nakamura, executive director
Date to submit the Quarterly Securities Report:
Date to start distributing dividends:
Supplementary documents for this summary of financial statements
Results briefing for financial results:

Registered on Tokyo Stock Exchange
URL:
http://www.shl.co.jp/Tel: +81-3-5385-8781
February 16, 2015
ʊNone
None

The original disclosure in Japanese was released on January 29, 2015 at 15:15 (GMT+9)
1. Non-Consolidated Financial Results for the first Quarter of Fiscal 2016 (October1, 2014 to December 31, 2014)(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 three monthsof Fiscal 2015
First three monthsof Fiscal 2014

Operating income
Millions of%Millions ofYen

Net income%260‫ڹ‬16.8‫ڹ‬19ʊ

‫ڹ‬19

ʊ‫ڹ‬12ʊ

313

11.0

48

29.3

48

28.930‫ڹ‬38.1%

Millions ofYen%

Fully diluted
net income per share

Net income per shareFirst three monthsof Fiscal 2015
First three monthsof Fiscal 2014

Yen

Ordinary income

YenYenYen‫ڹ‬4.15

ʊ

9.74

9.67

(2) Non-Consolidated Financial Position
Total assets

Net assets

Millions of

Dec 31, 2014
Dec 31, 2013
(Reference) Equity capital:

Yen

Equity ratio

Millions of

3,179
3,589
Dec 31, 2014:¥2,863 million

Yen%

2,876
3,116
Sep 30, 2014: ¥3,104 million

90.0
86.5

2. Dividends
End ofFirst quarter

Fiscal 2014
Fiscal 2015
Fiscal 2015 (forecast)

Dividend per share
End ofThird quarterEnd ofSecond quarter

Year-End

AnnualYen

YenYenYenYenʊʊ

45.00

ʊ47.00

92.00

46.00

ʊ46.0092.00(Note) Revisions to recent dividends forecast: None

3. Non-Consolidated Forecast for the Year Ending September 30, 2015 (October 1, 2014 to September 30, 2015)
Net sales
Millions ofFiscal 2015

Operating income

Yen%

2,181

5.1

Millions of(Note) Revisions to recent business forecast: None

Ordinary income

Yen%

895

0.7

Millions of

Net income
per share

Net income

Yen%8950.1Millions ofYen%

Yen575

3.5

185.44

*Note(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(ϸ) :None(iii)Changes in accounting estimates:None(iv) Restatement:
None
(1)

Number of shares oustsanding (common stock)(i) Number of shares outstanding (includingtreasury shares)

As of Dec 31, 2014

3,106,300

As of Sep 30, 2014

3,101,800(ii) Number of treasury shares

As of Dec 31, 2014

121,321

As of Sep 30, 2014

81,921(iii)Average Number of shares outstanding

First three monthsof Fiscal 2015

2,988,458

First three monthsof Fiscal 2014

3,101,797* Implementation status of quarterly review proceduresThis financial results summary is not subject to quarterly review procedures under the Financial Instruments and Exchange Act,and the quarterly financial statement review procedures based on the Act were in progress at the time of the disclosure of thesefinancial results.
* Explanations and other special notes concerning the appropriate use of financial results forecasts
1. The forward looking statements regarding financial results forecasts, etc. appearing in this financial results summary havebeen prepared based on information currently available to the Company and certain assumptions that the Company believes tobe reasonable. The Company makes no guarantees as to their realization. Actual financial results may differ substantially fromthe forecasts due to various factors.
2. As the Company’ s services are often used for the screening of new graduates to be employed by corporate customers, oursales inevitably involve seasonal fluctuations. In recent years, our sales have tended to be concentrated in the second quarter,
during which screening for employment of new graduates is often conducted by many corporate customers. However, the actual
timing for the screening and employment of new graduates varies depending on the year. Accordingly, we have not presented
cumulative performance forecasts for the first two quarters.

Qualitative information regarding the quarterly settlement of accounts(1)

Explanation of Operating Results

During the first quarter of the year ending September 30, 2015 (October 1, 2014 through December 31, 2014), net sales ofSHL-JAPAN Ltd. (the “Company”) decreased ¥52 million, or 16.8% year over year, to ¥260 million. By business segment, “Productsales” increased 5.3% to ¥146 million and “Consultancy sales” decreased 37.5% to ¥106 million, whereas “Training sales” increased
231% to ¥7 million.
The decrease in net sales for the first quarter is attributable to a massive decline in Consultancy sales. Consultancy sales mainly
accounts for the sales of screening tools for leading corporations employing new graduates. However, as self-imposed controls
regarding the employment of new graduates* were introduced by industry groups, many of the Company’s target customers among
Consultancy sales delayed their schedules concerning recruitment-related PR activity and screening compared with previous years,
causing the Company to delay its period for provision of services, which was the primary reason for the decrease in revenue.
Meanwhile, the employment environment continues to be steady, with corporations maintaining the aggressiveness with theiremployment activities for new graduates for 2015 who are not subject to such self-imposed controls as well as for experienced staff,
along with increases in orders for employee assessment services associated with standardizing assignment, training, and employment
within corporations. These factors contributed to secure increases in Product sales and Training sales revenue.
Operating loss for the first quarter under review totaled ¥19 million (¥48 million operating income for the same period of theprevious fiscal year). The loss was mainly attributable not only to a decrease in revenue but also a rise in cost of goods sold by ¥7million, or 13.2% year over year to ¥63 million; furthermore, selling, general and administrative expenses rose ¥7 million, or 3.7%,year over year to ¥217 million. The primary factor for the rise in cost of goods sold is an increase in subcontract cost associated withthe provision of new services, whereas the increase in selling, general and administrative expenses was mainly attributable to theyear-over-year increases in labor costs largely due to the expansion centered on sales personnel and in rent due to increased sales floorspace.
Ordinary loss for the first quarter under review totaled ¥19 million (ordinary income for the same period of the previous fiscal year
totaled ¥48 million). This figure was almost equal to operating loss because both non-operating income and non-operating expenses
were small.
Income before income taxes for the quarter under review totaled ¥19 million (income before income taxes for the same period of theprevious fiscal year totaled ¥49 million). This figure was equal to ordinary loss because there were no extraordinary gains and losses tobe reported.
After taking into account the above factors and income taxes-current and income taxes-deferred, net loss for the quarter underreview resulted in ¥12 million (net income for the same period of the previous fiscal year totaled ¥30 million).
* The industry has self-imposed controls regarding the employment of new graduates, under which industry groups agreed not tostart employment PR activity and 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 NewGraduates” that corporations’ PR activity shall commence on and after March 1 (previously, it had been December 1 of theyear prior to graduation or completion), and screening activity on and after August 1 (previously, it had been April 1 of theyear of graduation or completion), respectively, of the year just preceding the year of graduation or post-graduate completionfor new graduates who will enter corporations on and after fiscal 2016.
 (Illustration of new graduates)
Graduating Year
Students scheduled tograduate in 2015
Students scheduled tograduate in 2016

Junior StudentsDecember 1䋻㻼㻾㻌㻭㼏㼠㼕㼢㼕㼠㼥Senior Students
April 1䋻㻿㼏㼞㼑㼑㼚㼕㼚㼓㻌㻭㼏㼠㼕㼢㼕㼠㼥March 1䋻㻼㻾㻌㻭㼏㼠㼕㼢㼕㼠㼥August 1䋻㻿㼏㼞㼑㼑㼚㼕㼚㼓㻌
Activity

(2) Explanation about future prospects such as business forecasts
The screening market for new graduates is anticipated to progress in line with the impact of self-imposed controls newly
introduced by industry groups. However, corporations are anticipated to aggressively conduct their recruiting activities for new
graduates and experienced staff, since the economy is moderately recovering due to a set of economic policies and other factors,
whereupon the employment environment continues to be steady, with a rising sense of crunch in the labor market.
We intend to improve our business performance by precisely analyzing the needs in the screening schedules for employment of
new graduates which have been delayed by each corporation, thereby aggressively promoting sales activities to avoid loss of any
opportunities.
Under the recognition described above and based on our analysis of the operating results, financial position and other managerial
administrative data for the first quarter ended December 31, 2014, followed by our careful consideration of business forecasts, theCompany is not at this time revising its financial forecast for the year ending September 30, 2015, which was released on October27, 2014.