SHL-JAPAN Ltd.
Year Ending September 2013
Non-consolidated Financial and Operating Results (Excerpt) for the Third Quarter Ended
June 30, 2013
August 2, 2013

 Registered on Tokyo Stock Exchange

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:

August 14,2013

Date to start distributing dividends:

㸫TEL:+81-3-5385-8781

The original disclosure in Japanese was released on July 29, 2013 at 15:15 (GMT+9)(1) Qualitative information regarding operating results
For the third quarter of the year ending September 30, 2013 (October 1, 2012, through June 30,2013), net sales of SHL-JAPAN Ltd. (the “Company”) increased ¥165 million, or 11.3% year overyear, to ¥1,631 million. By business segment, “Product sales” increased 12.8% to ¥824 million.
“Consultancy sales” increased 10.3% to ¥775 million and “Training sales” decreased 1.3% to ¥30
million. The increase in Product sales during the third quarter under review was primarily
attributable to favorable sales of the “GAB,” which is used for the screening of new graduates
recruited for the main career track. The increase in Consultancy sales mainly reflected favorable
sales of customized versions of the “Web Test.”
During the third quarter under review, against a backdrop of general expectations of economic
recovery following the new economic policies launched by the government, the Company conducted
aggressive marketing activities mainly to develop new customers in view of the forward-looking
posture of corporations toward employment, on which the media has reported a year over year
increase in the informal job offer rate for expected graduates at the end of March 2014.
Consequently, the Company’s operating performance was successful with double-digit growth inrevenue compared with the same period a year earlier.
Operating income for the third quarter under review increased 20.4% year over year to ¥802
million. The cost of goods sold increased 0.1% year over year to ¥184 million, remaining almost thesame as the corresponding amount a year earlier, and selling, general and administrative expenses
increased ¥29 million, or 4.9%, to ¥644 million. However, operating income increased ¥135 million
from a year earlier due to the increase in revenue. The increase in selling, general and administrative
expenses was primarily attributable to year over year increases of sales promotion related expenses,

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supplies expenses, royalties arising from the increase in revenue and labor costs mainly due to theexpansion of sales personnel and share-based compensation expenses.
Ordinary income increased ¥136 million, or 20.5% year over year, to ¥804 million, mainly due toa year over year increase of ¥1 million in non-operating income in addition to the increase inoperating income. The increase in non-operating income was mainly attributable to a year over year
increase of ¥1 million in gains on investments in a limited liability partnership for venturebusinesses.
Income before income taxes for the third quarter under review totaled ¥847 million (up 28.7%year over year). Income before income taxes increased by ¥189 million year over year mainly due toa year over year increase of ¥50 million in extraordinary gains and a year over year decrease of ¥2million in extraordinary losses, in addition to the increase in ordinary income. The increase inextraordinary gains was primarily due to the recording of ¥52 million in insurance income arisingfrom the passing of a director under extraordinary gains. The decrease in extraordinary losses wasprimarily due to the recording of a ¥10 million valuation loss on golf club memberships for the same
period a year earlier, in addition to the recording of ¥7 million in directors’ retirement benefits and a¥1 million impairment loss on idle assets.
After taking into account the above factors and income taxes-current and income taxes-deferred,
net income for the third quarter under review increased ¥136 million, or 35.6%, year over year to¥521 million.

(2) Qualitative information regarding results forecasts
The operating results for the third quarter under review surpassed the initial projections of theCompany. We recognize that the business environment as described in “(1) Qualitative information
regarding operating results” above is anticipated to remain for the near term. As for the effects of theindustry’s self-imposed controls regarding employment of new graduates (under which industry
groups agreed not to start the screening process for new graduates prior to a fixed date in light ofacademic schedules for students), although having been wholly experienced, we recognize that salesof screening tools for next year’s graduates could be affected to a certain degree in the fourth quarterof the year ending September 30, 2013 (July 1, 2013, through September 30, 2013) because theperiod of the self-imposed controls corresponds to the start of sales of such screening tools. We
therefore intend to continuously increase our operating performance though focused efforts on
cultivating new customers.
In light of the above and based on our analysis of the operating results, financial position andother managerial data for the third quarter ended June 30, 2013, followed by an examination ofresults forecasts, we intend to revise our financial forecasts for the year ending September 30, 2013,
as follows: net sales of ¥1,940 million (up 5.5% year over year), operating income of ¥852 million

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(up 10.1% year over year), ordinary income of ¥852 million (up 9.7% year over year) and net
income of ¥549 million (up 25.2% year over year).

* 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 theAct were in progress at the time of the disclosure of these financial results.

* The forward looking statements regarding financial results forecasts, etc. appearing in this financial
results summary have been prepared based on information currently available to the Company andcertain assumptions that the Company believes to be reasonable. The Company makes no guarantees
as to their realization. Actual financial results may differ substantially from the forecasts due tovarious factors.

*As the Company’s services are often used for the screening of new graduates to be employed bycorporate customers, our sales inevitably involve seasonal fluctuations. In recent years, as sales ofour employment screening tools to help Japanese corporations employ new graduates have tended tobe concentrated in the second and third quarters, during which screening for employment is basicallyconducted by corporate customers, and in the fourth quarter, during which sales of the relevant
screening tools start, net sales for the second quarter tend to be higher and net sales for the firstquarter tend to be lower than those for other quarters.

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