Summary of Consolidated Financial Results for the Third Quarterof the Fiscal Year Ending March 31, 2019
(Nine Months Ended December 31, 2018)[Japanese GAAP]
January 31, 2019

Company name: QUICK CO., LTD.
Listing: First Section, Tokyo Stock Exchange
Stock code:
4318
URL: https://919.jp/
Representative: Tsutomu Wano, President
Contact:
Yasuhiko Hirata, Director, Executive Officer,
General Manager of Administration and Accounting Division
Tel: +81-6-6366-0919
Scheduled date of filing of Quarterly Report:
February 13, 2019
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: None
Holding of quarterly financial results meeting:None(All amounts are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2019
(April 1, 2018 – December 31, 2018)(1) Consolidated results of operations(Percentages represent year-on-year changes.)
Net sales
Millions of yen

Operating profit%

Millions of yen% Millions of yen

Nine months ended Dec. 31, 201814,252 16.6
2,279 19.4
Nine months ended Dec. 31, 201712,218 14.8
1,909 13.0
Note: Comprehensive income (millions of yen) Nine months ended Dec. 31, 2018:
Nine months ended Dec. 31, 2017:%

Millions of yen

2,305 16.2
1,983 13.2
1,513 (down 5.6%)
1,603 (up 26.5%)

Net income per share

Diluted net income per share

Yen

Yen

82.38
74.07

-

Nine months ended Dec. 31, 2018
Nine months ended Dec. 31, 2017

Profit attributable toowners of parent

Ordinary profit

1,550
1,391

%

11.5
17.5

(2) Consolidated financial position
Total assets

Net assets

Shareholders’ equity ratio Net assets per share

Millions of yen

Millions of yen%

As of Dec. 31, 2018
11,0307,846
10,451
6,977
As of Mar. 31, 2018
Reference: Shareholders’ equity (millions of yen)
As of Dec. 31, 2018: 7,845

Yen

71.1
66.6
As of Mar. 31, 2018: 6,964

416.06370.72

2. Dividends
1Q-end2Q-endYen

Fiscal year ended Mar. 31, 2018
Fiscal year ending Mar. 31, 2019
Fiscal year ending Mar. 31, 2019 (forecast)
Note: Revisions to the most recently announced dividend forecast: Yes

Dividend per share
3Q-endYear-end

Total

Yen

Yen

Yen

Yen

17.00
19.00

-

18.00

35.00

21.00

40.00

Regarding revisions to the dividend forecast, please refer to the “Revision to Earnings Forecast and Year-end Dividend Forecast(Dividend Increase) for the Fiscal Year Ending March 31, 2019 (Japanese version only)” that was announced today (January 31, 2019).

3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2019 (April 1, 2018 – March 31, 2019)
Net sales
Millions of yen(Percentages represent year-on-year changes.)
Profit attributable to
Net income
Ordinary profit
owners of parent
per share

Operating profit%

Millions of yen%

Yen

Full year
18,970 13.1
2,573 17.0
2,794 21.4
Note: Revisions to the most recently announced consolidated earnings forecast: Yes%

Millions of yen%

Millions of yen

1,828

12.3

97.06

Regarding revisions to the consolidated earnings forecast, please refer to the “Revision to Earnings Forecast and Year-end Dividend Forecast(Dividend Increase) for the Fiscal Year Ending March 31, 2019 (Japanese version only)” that was announced today (January 31, 2019).

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
(2) Application of special accounting methods for presenting quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(4) Number of shares outstanding (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Dec. 31, 2018:19,098,576 shares

As of Mar. 31, 2018:19,098,576 shares

As of Mar. 31, 2018:311,127 shares

2) Number of treasury shares at the end of the period
As of Dec. 31, 2018:

241,173 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2018:18,826,872 shares

Nine months ended Dec. 31, 2017:18,787,530 shares* The current quarterly financial report is not subject to quarterly review by certified public accountants or accounting firms.
* Explanation of appropriate use of earnings forecasts, and other special items
Forecasts and forward-looking statements in these materials are based on assumptions judged to be valid and information
available to the Company’s management at the time the materials were prepared. These materials are not promises by theCompany regarding future performance. Actual results may differ significantly from these forecasts for a number of reasons.
For discussion of the assumptions and other factors considered by the Company in preparing the above projections, please referto page 3 of the attachments “1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation ofConsolidated Forecast and Other Forward-looking Statements.”

QUICK CO., LTD. (4318) Financial Results for the Third Quarter of FY3/19

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first nine months of the fiscal year ending March 31, 2019, the Japanese economy continued
recovering at a moderate pace, along with ongoing improvement in corporate earnings, employment and personal
income, as well as a recovery in consumer spending. However, a range of factors made the economic outlook
remain uncertain, such as the impact of a series of natural disasters including the torrential rain that hit westernJapan, as well as concerns over the trade conflict between the U.S. and China, the management of the U.S.
administration, and uncertainties in overseas economies represented by the slowdown in the Chinese economy.
In Japan’s labor market, a shortage of workers is becoming more severe in a wide range of sectors, includingtransportation, construction, as well as medical care and welfare. In November 2018, all the employment-related
indicators reflected Japan’s labor shortage. Among others, the seasonally adjusted job openings-to-applicantsratio was 1.63, the seasonally adjusted job openings-to-applicants ratio for full-time employees was 1.13, and theseasonally adjusted unemployment rate was 2.5%.
During the first nine months, the QUICK Group reinforced existing services, expanded operations in new
strategic market sectors and developed new services. All activities are aimed at differentiating the QUICK Group
from competitors and increasing customer satisfaction by helping solve recruiting and other labor-related
problems at client companies. Furthermore, the Group has been building a stronger foundation for business
operations by aggressively recruiting people with outstanding skills and making other investments in humanresources.
Under the situation mentioned above, the personnel placement category of the Human Resources Services
Business continued enjoying strong recruiting demand for employees in the construction, civil engineering, andmanufacturing sectors, as well as for nurses at hospitals and nursing care facilities. As a result, the category
enjoyed a solid expansion in the placements of professionals and technical staff to companies and those of nurses
to health care related facilities.
As the competition against other companies for obtaining job applicants has become increasingly severe, theGroup focused on distinguishing itself from other competitors, enhancing the brand awareness, and improving
registrants’ satisfaction. For that in mind, we conducted more effective promotional activities and website
management, expanded our range of services, and provided better support for the registrants.
In the temporary staffing, temporary-to-permanent staffing, and business contracting categories, strong demand
continued for the temporary placement of workers in the medical and welfare sectors and of childcare workers.
Because of the labor shortage associated with a declining unemployment rate in Japan, many companies are still
having difficulty securing personnel who can work full-time as a regular employee, temporary staff, or thoseworking in any other form of employment. Therefore, demand also remained strong for our part-time staff
placement.
Overall, the segment sales increased 16.6% year-on-year to 8,804 million yen and operating profit increased
13.8% year-on-year to 1,898 million yen.
In the Recruiting Business, the volume of recruiting advertisements for full-time employees and registeredtemporary staff in the mid-year hiring category continued increasing against the backdrop of the persistentseverity of the labor shortage in a wide range of sectors in Japan. The volume of recruiting advertisements forhiring part-time workers also remained firm.
In the new college graduate category, the volume of business remained steady mainly for recruiting
advertisements targeting new college graduates, website advertisements targeting students who are searching for
an intern position, and services involving joint information meetings, exhibits and other recruiting events.
Furthermore, the category also enjoyed a solid performance for consulting services to help enhance theeffectiveness of various recruiting advertisements, as well as outsourcing of HR functions such as recruiting andservices involving suitability examination.

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QUICK CO., LTD. (4318) Financial Results for the Third Quarter of FY3/19

Overall, the segment sales increased 11.7% year-on-year to 2,648 million yen and operating profit increased
15.9% year-on-year to 600 million yen.
In the Information Publishing Business, we continued achieving solid performance for life-style magazines thanks
to increased revenue of “Kanazawa Joho,” a free-paper distributed for mainly Kanazawa City, and “Takaoka
Joho,” which was newly published this fiscal year. The solid performance was also driven by the success of“Kanazawa Enkai Bugyo,” a separately issued information magazine for party organizers, published in exact
timing with year-end and new-year party seasons.
Moreover, in the services other than media, sales from posting services including flyers inserted in newspapers
increased steadily as a result of entry into Takaoka area and price revision. Moreover, the concierge services we
operate under the “Cococolor” brand expanded in all the service lines of career change, house designing andwedding.
Overall, the segment sales increased 12.0% year-on-year to 1,447 million yen and operating profit was 97 million
yen (111.9 times its operating profit for the same period of the previous fiscal year).
In other businesses, the advertising revenues at “Nihon no Jinjibu” (Japan’s Human Resources Department), an
information portal site for human resources and labor relations, continued expanding steadily in theInternet-Related Business, driven by increased demand from human resources service providers who seek topromote their services and attract more attendants to their seminars. Furthermore, we held the “HR Conference
2018 Autumn,” one of Japan’s largest human resources event, in November 2018 with 11,772 attendants, whowere mainly corporate executives and HR professionals. This event was highly successful as it provided
approximately 130 seminars and workshops. During the event, attendants were able to collect and experience thelatest HR-related information and know-hows, which in turn contributed to raising awareness of the “Nihon no
Jinjibu” brand and expanding business performance.
In the Overseas Business, QUICK USA, Inc. continued to be faced with a seller’s market for legal foreign
workers due to such factors as further intensified competition for acquiring job seekers with working qualification
within the U.S., which was caused by tightened labor visa acquisition for foreigners. Under these circumstances,the company successfully increased its business performance in personnel placement and remained strong in
temporary staffing as it focused on providing services finely tuned to cater for both recruitment companies andjob seekers and improving contract terms and conditions.
Shanghai QUICK CO., LTD. substantially increased its business performance of recruitment consulting services
as well as personnel and labor consulting services including education and training, personnel system design, andproper compensation analysis. This is because corporate demand remained high for acquiring, retaining, andfostering competent human resources and for developing personnel systems to support such functions even in theeconomic environment represented by weakening business confidence in China and uncertainty over its future
due to the trade conflict between the U.S. and China.
QUICK GLOBAL MEXICO, S.A. DE C.V. continued enjoying strong demand from locally operated Japanese
automakers for interpreters and salespeople and production controllers. In addition, the company stepped up its
efforts to attract new registration of job seekers by holding job change seminars that targeted Mexican individuals
who are bilingual in Japanese and Spanish. Furthermore, the cases of personnel placement began to produce
results after suffering from protracted consulting periods. Thanks to these favorable factors, the businessperformance started to recover.
Centre People Appointments Ltd continued expanding the business of personnel placement by consistently
strengthening the sales structure amid strong demand from local Japanese companies for recruiting.
QUICK VIETNAM CO., LTD. also continued showing an excellent performance of personnel placement for local
Japanese companies, notably in the apparel, construction, and IT industries.
Moreover, QUICK GLOBAL CO., LTD. provided support services to expand our foreign operations including
support for the overseas subsidiaries and affiliates to acquire new registrants and provision of trainings before

2

QUICK CO., LTD. (4318) Financial Results for the Third Quarter of FY3/19

being assigned abroad.
Overall, sales of other businesses increased 34.5% year-on-year to 1,352 million yen and operating profit
increased 30.8% year-on-year to 238 million yen.
As a result of these factors, sales and earnings set a new first nine-month record just as in the same period of theprevious fiscal year. Net sales increased 16.6% year-on-year to 14,252 million yen, operating profit increased
19.4% year-on-year to 2,279 million yen, ordinary profit increased 16.2% year-on-year to 2,305 million yen, andprofit attributable to owners of parent increased 11.5% year-on-year to 1,550 million yen.
(2) Explanation of Financial Position
Total assets at the end of the third quarter of the fiscal year under review were 11,030 million yen, which was 579
million yen more than at the end of the previous fiscal year. This was mainly the result of increases in cash anddeposits despite a decrease in notes and accounts receivable-trade.
Total liabilities were 3,184 million yen, which was 289 million yen less than at the end of the previous fiscal year.
This was mainly the result of a decrease in accounts payable-trade despite an increase in income taxes payable.
Total net assets were 7,846 million yen, which was 869 million yen more than at the end of the previous fiscal
year. This was mainly the result of an increase in retained earnings due to the booking of profit attributable toowners of parent. Consequently, the shareholders’ equity ratio improved 4.5 percentage points from the end of theprevious fiscal year to 71.1%.
Effective from the beginning of the first quarter of the current fiscal year, the Company applied the Partial
Amendments to Accounting Standard for Tax Effect Accounting (Accounting Standards Board of Japan (ASBJ)
Statement No. 28, February 16, 2018) and other related pronouncements. Accordingly, the financial position iscompared against the values at the end of the previous fiscal year after applying retrospective treatment.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
As a result of reviewing the results of operations for the first nine months of the current fiscal year and the future
outlook, and we have revised the full-year consolidated earnings forecast for the fiscal year ending March 31,
2019 that was announced in the “Summary of Consolidated Financial Results for the Fiscal Year Ended March 31,2018 (Japanese GAAP)” on April 27, 2018.
For more details, please refer to the press release titled “Revision to Earnings Forecast and Year-end Dividend
Forecast (Dividend Increase) for the Fiscal Year Ending March 31, 2019 (Japanese version only)” that wasannounced today (January 31, 2019).

3

QUICK CO., LTD. (4318) Financial Results for the Third Quarter of FY3/19

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/18(As of Mar. 31, 2018)(Thousands of yen)
Third quarter of FY3/19(As of Dec. 31, 2018)

AssetsCurrent assets
Cash and deposits

5,044,883

6,060,844

Notes and accounts receivable-trade

1,997,915

1,335,568

Other

380,119

340,809

Allowance for doubtful accounts(1,443)(1,231)

7,421,474

7,735,991

531,709

838,864

6,838

7,482

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Vehicles, net
Tools, furniture and fixtures, net

90,012

95,567

Land

276,869

276,869

Leased assets, net

8,022

11,753

Construction in progress

70,811-

Total property, plant and equipment

984,264

1,230,538

143,708

129,383

Intangible assets
Goodwill
Leased assets

6,224

1,036

Other

192,428

227,489

Total intangible assets

342,361

357,910Investments and other assets
Investment securities

1,100,759

992,382

Lease deposits

510,491

581,974

Deferred tax assets

40,67042,676

Other

62,25094,554

Allowance for doubtful accounts(11,105)(5,112)

Total investments and other assets
Total non-current assets
Total assets

4

1,703,065

1,706,476

3,029,691

3,294,924

10,451,165

11,030,916

QUICK CO., LTD. (4318) Financial Results for the Third Quarter of FY3/19(Thousands of yen)
Third quarter of FY3/19(As of Dec. 31, 2018)

FY3/18(As of Mar. 31, 2018)
Liabilities
Current liabilities
Accounts payable-trade655,473

204,502

Short-term loans payable

188,300

242,000

Accounts payable-other889,392

919,168

Accrued expenses

442,178

518,887

Income taxes payable

342,450446,361

Accrued consumption taxes

235,419

269,807

Provision for bonuses

359,642

288,972

Provision for repayment

17,10011,500

Other

190,049

98,812

3,320,007

3,000,011

Deferred tax liabilities

90,871

94,374

Asset retirement obligations

55,31078,336

Total current liabilities
Non-current liabilities

Other

7,886

11,603

154,068

184,3143,474,075

3,184,325

Capital stock

351,317351,317

Capital surplus

307,998

391,392

Retained earnings

5,723,382

6,553,403

Treasury shares(19,223)(14,965)

Total shareholders’ equity

6,363,475

7,281,146

Valuation difference on available-for-sale securities

586,784

550,457

Foreign currency translation adjustment

14,62914,212

Total accumulated other comprehensive income

601,413564,669

12,201773

6,977,090

7,846,590

10,451,165

11,030,916

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

5

QUICK CO., LTD. (4318) Financial Results for the Third Quarter of FY3/19(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Nine-month Period)First nine months of FY3/18(Apr. 1, 2017 – Dec. 31, 2017)(Thousands of yen)First nine months of FY3/19(Apr. 1, 2018 – Dec. 31, 2018)

Net sales

12,218,193

14,252,227

Cost of sales

4,905,534

5,348,872

Gross profit

7,312,658

8,903,355

Selling, general and administrative expenses

5,403,563

6,623,595

Operating profit

1,909,095

2,279,759

Non-operating income
Interest income

77

109

Dividend income

13,444

11,465

Book sales commission

16,363-

Subsidy income

20,495-

Other28,102

17,235

Total non-operating income

78,48328,809Interest expenses

1,849

1,463

Foreign exchange losses

2,286

1,638

177

188

Non-operating expenses

Other
Total non-operating expenses

4,313

3,291

1,983,266

2,305,278

Loss on sales of non-current assets

50-

Loss on retirement of non-current assets

-

2,539

Ordinary profit
Extraordinary losses

Total extraordinary losses

50

2,539

1,983,215

2,302,739

Income taxes-current

457,666

736,193

Income taxes-deferred

132,082

15,870Total income taxes

589,749

752,063

1,393,466

1,550,675

1,915

(250)

1,391,550

1,550,925

Profit before income taxes

ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

6

QUICK CO., LTD. (4318) Financial Results for the Third Quarter of FY3/19

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)First nine months of FY3/18(Apr. 1, 2017 – Dec. 31, 2017)(Thousands of yen)First nine months of FY3/19(Apr. 1, 2018 – Dec. 31, 2018)

1,393,466

1,550,675

206,247(36,326)

3,840

(625)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income

210,088(36,952)

1,603,555

1,513,723

Comprehensive income attributable to owners of parent

1,601,276

1,514,181

Comprehensive income attributable to non-controllinginterests

2,278

(458)

Comprehensive income
Comprehensive income attributable to7

QUICK CO., LTD. (4318) Financial Results for the Third Quarter of FY3/19(3) Notes to Quarterly Consolidated Financial Statements
Going-concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Additional Information
Application of Partial Amendments to Accounting Standard for Tax Effect Accounting, etc.
Effective from the beginning of the first quarter of the current fiscal year, the Company applied the Partial
Amendments to Accounting Standard for Tax Effect Accounting (Accounting Standards Board of Japan (ASBJ)
Statement No. 28, February 16, 2018) and other related pronouncements. Accordingly, deferred tax assets anddeferred tax liabilities have been presented in the investments and other assets section and the non-current
liabilities section of the consolidated balance sheet, respectively.
Segment Information
I. First nine months of FY3/18 (Apr. 1, 2017 – Dec. 31, 2017)
1. Information pertaining to net sales and profit/loss in reportable segments
Reportable Segment
Human
Resources
Services
Business

Recruiting
Business

Information
Publishing
Business

7,549,825

2,370,490

1,292,453 11,212,770 1,005,423

Net sales
Sales to externalcustomers
Inter-segment
sales and transfers
Total

1,309

20,7137,551,135

2,391,204

Segment profit

1,668,109

518,324

Subtotal

Other(Note 1)

Total

(Thousands of yen)Amount in
the quarterly
Adjustment consolidated(Note 2)statement ofincome(Note 3)

12,218,193-

12,218,193

35,144

63,820(63,820)-

1,299,106 11,241,445 1,040,568

12,282,014(63,820)

12,218,193

2,369,372(460,277)

1,909,095

6,652

874

28,6752,187,307

182,064

Notes: 1. “Other” represents the businesses which are not included in any of the reportable segments and mainly consistsof the Internet-Related Business and the Overseas Business.
2. The (460,277) thousand yen adjustment to segment profit includes elimination for inter-segment transactions of
101,408 thousand yen, and (561,685) thousand yen in company-wide costs that cannot be allocated to any
specific reportable segments. Company-wide costs consist primarily of expenses related to the administration
division which are not attributable to any reportable segments, including general affairs and accounting at theCompany.
3. Segment profit is adjusted with operating profit shown on the quarterly consolidated statement of income.
2. Information pertaining to impairment losses of non-current assets, goodwill, etc. in reportable segments
Not applicable.

8

QUICK CO., LTD. (4318) Financial Results for the Third Quarter of FY3/19

II. First nine months of FY3/19 (Apr. 1, 2018 – Dec. 31, 2018)
1. Information pertaining to net sales and profit/loss in reportable segments
Reportable Segment
Human
Resources
Services
Business

Recruiting
Business

Information
Publishing
Business

8,804,106

2,648,662

1,447,298 12,900,067 1,352,160 14,252,227

Net sales
Sales to externalcustomers
Inter-segment
sales and transfers
Total

836

5,152

8,804,942

2,653,815

Segment profit

1,898,210

600,643

Subtotal

Other(Note 1)

Total

(Thousands of yen)Amount in
the quarterly
Adjustment consolidated(Note 2)statement ofincome(Note 3)-

14,252,227

36,389(36,389)-

1,454,419 12,913,177 1,375,439 14,288,617(36,389)

14,252,227(555,091)

2,279,759

7,121

97,795

13,1092,596,649

23,279238,201

2,834,851

Notes: 1. “Other” represents the businesses which are not included in any of the reportable segments and mainly consistsof the Internet-Related Business and the Overseas Business.
2. The (555,091) thousand yen adjustment to segment profit includes elimination for inter-segment transactions of
106,494 thousand yen, and (661,586) thousand yen in company-wide costs that cannot be allocated to any
specific reportable segments. Company-wide costs consist primarily of expenses related to the administration
division which are not attributable to any reportable segments, including general affairs and accounting at theCompany.
3. Segment profit is adjusted with operating profit shown on the quarterly consolidated statement of income.
2. Information pertaining to impairment losses of non-current assets, goodwill, etc. in reportable segments
Not applicable.

This summary report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers
who prefer an English translation.

9