Summary of Consolidated Financial Results for the Third Quarterof the Fiscal Year Ending March 31, 2020
(Nine Months Ended December 31, 2019)[Japanese GAAP]
January 31, 2020

Company name: QUICK CO., LTD.

Listing: First Section, Tokyo Stock Exchange
URL: https://919.jp/

Stock code:
4318
Representative: Tsutomu Wano, Chairman
Contact:
Yasuhiko Hirata, Director, Executive Officer,
General Manager of Administration and Accounting Division
Tel: +81-6-6366-0919
February 13, 2020
Scheduled date of filing of Quarterly Report:
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, 2020
(April 1, 2019 – December 31, 2019)(1) Consolidated results of operations
Net sales
Millions of yen(Percentages represent year-on-year changes.)
Profit attributable toOrdinary profit
owners of parent

Operating profit% Millions of yen% Millions of yen

Nine months ended Dec. 31, 201915,6209.6
2,572 12.8
Nine months ended Dec. 31, 201814,252 16.6
2,279 19.4
Note: Comprehensive income (millions of yen) Nine months ended Dec. 31, 2019:
Nine months ended Dec. 31, 2018:
Net income per share

Diluted net income per share

Yen

Yen

91.46
82.38

-

Nine months ended Dec. 31, 2019
Nine months ended Dec. 31, 2018

% Millions of yen

2,600 12.8
2,305 16.2
1,870 (up 23.5%)
1,513 (down 5.6%)

1,724
1,550

%

11.2
11.5

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen

Shareholders’ equity ratio Net assets per share%

As of Dec. 31, 201912,6189,379
As of Mar. 31, 201912,592
8,358
Reference: Shareholders’ equity (millions of yen)
As of Dec. 31, 2019:
9,377

Yen

74.3
66.4
As of Mar. 31, 2019: 8,357

497.81443.192. Dividends
1Q-end2Q-endYen

Fiscal year ended Mar. 31, 2019
Fiscal year ending Mar. 31, 2020
Fiscal year ending Mar. 31, 2020 (forecast)
Note: Revisions to the most recently announced dividend forecast: None

Dividend per share
3Q-endYear-end

Total

Yen

Yen

Yen

Yen

19.00
22.00

-

23.00

42.00

22.00

44.00

3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2020 (April 1, 2019 – March 31, 2020)
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%

Millions of yen%

Millions of yen%

Yen

Full year
20,9409.2
2,920 13.1
2,950
4.7
Note: Revisions to the most recently announced consolidated earnings forecast: None

1,995

1.5

105.84

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): Yes
Newly added: 1 (Kronos Co., Ltd.)

Excluded: -(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, 2019:19,098,576 shares

As of Mar. 31, 2019:19,098,576 shares

As of Mar. 31, 2019:

241,173 shares

2) Number of treasury shares at the end of the period
As of Dec. 31, 2019:

261,173 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2019: 18,850,712 shares

Nine months ended Dec. 31, 2018: 18,826,872 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
Cautionary statement with respect to forward-looking statements
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 FY3/20

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, 2020, the Japanese economy continued to show amoderate recovery backed by improvements in the employment and income environment, although corporate
earnings showed a sign of a decline particularly in the manufacturing industries. However, the outlook of
domestic economy is becoming uncertain in view of a number of factors such as concerns over the slowdown in
the world economy fueled by the trade friction between the U.S. and China, the slowdown in the Chinese
economy, and the Brexit from the European Union, and the situation in the Middle East as well as the prospect ofthe manufacturing industries and the impact of the consumption tax hike on the domestic consumption.
In Japan’s labor market, a shortage of workers is becoming even more severe in a wide range of sectors becauseof structural factors such as declines in the labor force and the working-age population caused by the declining
birthrate and aging population. All the employment-related indicators in November 2019, continued to reflect
Japan’s labor shortage. Among others, the seasonally adjusted job openings-to-applicants ratio was 1.57 and theseasonally adjusted unemployment rate was 2.2%.
Given this business environment, the QUICK Group expanded operations in new strategic market sectors,
developed new services and strengthened coordination between the group companies as well as continued
reinforcing the existing services. All of these activities are aimed at differentiating the QUICK Group fromcompetitors and increasing customer satisfaction by helping solve recruiting and other labor-related problems atclient companies. Furthermore, the QUICK Group has been building a stronger foundation for business operations
by aggressively recruiting people with outstanding skills and making other investments in human resources.
Since the beginning of the third quarter of the current fiscal year, Kronos Co., Ltd., has been included in the scopeof consolidation due to the acquisition of its shares. As a result, the Internet-Related Business included in “Other”
in the segment information has been renamed to the IT and Internet-Related Business, and the company has been
included in this business category. We also newly established Shanghai Quick Human Resources CO., LTD.
during the third quarter, which is now included in the scope of consolidation as part of the Overseas Business.
Under the situation mentioned above, the personnel placement category of the Human Resources Services
Business enjoyed strong recruiting needs in the construction and civil engineering sector as well as in thesemiconductor industry that is related to the spread of the fifth-generation (5G) mobile communication systems.
On the other hand, some companies showed cautious attitude towards recruiting in view of the U.S.-China trade
friction. In such circumstance, our efforts including focusing on selected clients and strengthening our sales
activities resulted in steady expansion in the placements of professionals and technical staff to companies. The
personnel placement business for nurses at hospitals, nursing care facilities and other health care facilities also
maintained a solid performance, supported by vigorous recruiting needs, as we provided meticulous support for
the registrants and conducted effective promotions amid intensifying competition brought by competitors that
continued to enhance promotions and investments in human resources.
In the temporary staffing, temporary-to-permanent staffing and business contracting categories, the temporary
staffing of nurses and childcare workers continued to show a favorable performance thanks to effective
promotions to attract registrants in the medical and welfare sectors. Amid the ongoing situation where hiring
regular employees and securing full-time temporary staff are difficult as a result of the improving employment
situation in Japan, the business remained strong, also in the temporary staffing for highly specialized IT andinternet-related jobs as well as clerical jobs, backed by increasing awareness among companies of benefits ofusing a part-time staffing service with fewer working days and working hours.
Overall, the segment sales increased 13.8% year-on-year to 10,020 million yen and operating profit increased
15.2% year-on-year to 2,186 million yen.
In the Recruiting Business, under the continuing student-dominant seller’s market in the new college graduate
category, the volume of business went well, particularly in the field of advertisements posted on our internshipwebsite and recruiting events, targeting students who will graduate in March 2021. Furthermore, in the mid-career
1

QUICK CO., LTD. (4318) Financial Results for the Third Quarter of FY3/20

hiring domain, we enjoyed a significant growth of the job placement service under the “Indeed” brand, whichstarted handling at full scale in the previous fiscal year. The business of recruiting advertisements to hire regular
employees and part-time workers also remained resilient against the backdrop of the increasing severity of thelabor shortage in Japan.
For some of our media for recruiting registration of temporary staff, the amount of sales decreased year-on-year.
This is because, from December 2018, the form of contract was changed from the sales agency contract to thesales outsourcing contract, resulting in the recognition of sales reflecting handling commissions only. However,
we saw a steady increase in gross profit, which is net sales less advertising expenses as cost of services purchase.
Overall, the segment sales decreased 3.0% year-on-year to 2,569 million yen but operating profit increased 5.1%
year-on-year to 631 million yen.
In the Information Publishing Business, sales promotion sentiment of our client companies tended to decline due
to lower personal consumption and housing acquisition demand due to the consumption tax hike. As a result, theperformance of lifestyle information magazines and “Iezukuri Navi,” a housing information magazine, remained
almost flat year-on-year. On the other hand, the volume of business of “Indeed,” which started in the second halfof the previous fiscal year, expanded considerably thanks to the vigorous recruiting needs caused by personnel
shortages.
Meanwhile, in the services other than media, sales from posting services including flyers inserted in newspapers
remained solid. Moreover, the concierge services we operate under the “cococolor” brand also continued toperform well in all of the service lines of job change, house designing and wedding.
Overall, the segment sales increased 6.6% year-on-year to 1,542 million yen and operating profit increased 49.0%
year-on-year to 145 million yen.
As for the Other businesses segment, in the IT and Internet-Related Business category, advertising revenue from
“Nihon no Jinjibu” (Japan’s Human Resources Department), an information portal site for human resources andlabor relations remained favorable, thanks to continuous strong interest in HR solution businesses that support
corporate clients’ personnel strategies including recruiting, human resources development and establishment of
human resources systems. In particular, a HR related event, “HR Conference: Fall 2019” held for seven days in
November 2019 hit a record high in the number of visitors and revenue, which contributed to the businessexpansion of “Nihon no Jinjibu.”
Kronos Co., Ltd., which has become a consolidated subsidiary since October 2019, received new contracts foroutsourced system development services, AI-related training and other services. Nevertheless, the profit increase
was sluggish because the company already made an investment in human resources and incurred other expenses
including those for preparing training textbooks in anticipation of winning contracts in April onward whenemployee trainings will be broadly held by companies in Japan.
In the Overseas Business category, the personnel placement business for local Japanese companies in North andCentral America (notably in the U.S. and Mexico) achieved solid growth against backdrop of still lasting strong
demand for hiring full-time employees, while temporary staffing business had a limited growth because job
seekers were more inclined for full-time regular employment. As for Asia (notably in China and Vietnam),businesses remained almost flat in China in the field of advisory services and other personnel and laborconsulting services. In Vietnam, the recruiting consulting services for hiring Japanese and Vietnamese by local
Japanese companies showed favorable performance, given the vigorous recruiting needs mainly in theconstruction, apparel and IT industries. Furthermore, in the U.K., the revenue increase of domestic personnel
placement services and temporary staffing within the U.K. was rather sluggish on Japanese yen basis, impacted
by the foreign exchange rate, while international personnel placement services for the job changes from the U.K.
to European companies remained favorable, which led to the profit increase in total. QUICK GLOBAL CO., LTD.,
one of our subsidiaries providing support to overseas companies, incurred some upfront costs to expand the
support system for services including provision of trainings for employees before being assigned abroad and sales
support services.

2

QUICK CO., LTD. (4318) Financial Results for the Third Quarter of FY3/20

Overall, sales of the Other businesses segment increased 10.1% year-on-year to 1,488 million yen but operating
profit decreased 18.7% year-on-year to 193 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 9.6% year-on-year to 15,620 million yen, operating profit increased
12.8% year-on-year to 2,572 million yen, ordinary profit increased 12.8% year-on-year to 2,600 million yen, andprofit attributable to owners of parent increased 11.2% year-on-year to 1,724 million yen.
(2) Explanation of Financial Position
Total assets at the end of the third quarter of the fiscal year under review were 12,618 million yen, which was 25
million yen more than at the end of the previous fiscal year. This was mainly the result of an increase in cash anddeposits despite a decrease in notes and accounts receivable-trade.
Total liabilities were 3,238 million yen, which was 995 million yen less than at the end of the previous fiscal year.
This was mainly the result of decreases in accounts payable-trade, accounts payable-other and income taxes
payable.
Total net assets were 9,379 million yen, which was 1,020 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 7.9 percentage points from the end of theprevious fiscal year to 74.3%.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
At this point, there are no revisions to the full-year consolidated earnings forecast for the fiscal year ending
March 31, 2020, which was announced in the “Summary of Consolidated Financial Results for the Fiscal Year
Ended March 31, 2019 (Japanese GAAP)” on April 26, 2019.
An announcement will be made promptly if the review of impact on the QUICK Group’s business performancerequires a revision to this forecast.

3

QUICK CO., LTD. (4318) Financial Results for the Third Quarter of FY3/20

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/19(As of Mar. 31, 2019)(Thousands of yen)
Third quarter of FY3/20(As of Dec. 31, 2019)

AssetsCurrent assets
Cash and deposits

6,364,521

6,931,696

Notes and accounts receivable-trade

2,061,682

1,542,871

Other621,235

303,280

Allowance for doubtful accounts(2,010)(1,458)9,045,428

8,776,390

865,528

888,135

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

6,474

4,398

Tools, furniture and fixtures, net

101,584

101,898Land

276,869

276,869

Leased assets, net

10,862

8,188

1,261,318

1,279,490

Software151,609

141,524

Total property, plant and equipment
Intangible assets
Software in progress

80,274

261,858

Goodwill

118,858

73,975

Other

10,646

10,659Total intangible assets

361,389

488,017

Investments and other assets
Investment securities

1,154,136

1,331,131

Leasehold deposits

626,310657,095

Deferred tax assets

62,954

31,660Other

84,60557,937

Allowance for doubtful accounts(3,843)(3,636)

Total investments and other assets

1,924,162

2,074,188

3,546,870

3,841,696

12,592,299

12,618,087

Total non-current assets
Total assets

4

QUICK CO., LTD. (4318) Financial Results for the Third Quarter of FY3/20(Thousands of yen)
Third quarter of FY3/20(As of Dec. 31, 2019)

FY3/19(As of Mar. 31, 2019)
Liabilities
Current liabilities
Accounts payable-trade545,634

214,835

Short-term borrowings

189,902247,000-

6,000

Current portion of long-term borrowings
Accounts payable-other

1,115,052

862,105

Accrued expenses

520,136

594,062

Income taxes payable

646,929333,066

Accrued consumption taxes

292,621292,785

Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for repayment

475,298

229,39362,450-18,20010,600679

1,086

Asset retirement obligations
Other
Total current liabilities

203,472

105,206

4,070,375

2,896,139

Non-current liabilities
Long-term borrowings

-

6,500

Deferred tax liabilities

65,288229,053

Asset retirement obligations

86,83097,582

Other

10,998

9,098

Total non-current liabilities

163,117342,234

4,233,493

3,238,374

Share capital

351,317351,317

Total liabilities
Net assets
Shareholders’ equity
Capital surplus

391,392

391,392

Retained earnings

6,968,762

7,844,714

Treasury shares(14,965)(16,005)

Total shareholders’ equity

7,696,505

8,571,418

661,606

819,347

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5

(707)

(13,323)

660,899

806,023

1,401

2,270

8,358,806

9,379,712

12,592,299

12,618,087

QUICK CO., LTD. (4318) Financial Results for the Third Quarter of FY3/20(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Nine-month Period)First nine months of FY3/19(Apr. 1, 2018 – Dec. 31, 2018)(Thousands of yen)First nine months of FY3/20(Apr. 1, 2019 – Dec. 31, 2019)

Net sales

14,252,227

15,620,690

Cost of sales

5,348,872

5,767,785

Gross profit

8,903,355

9,852,904

Selling, general and administrative expenses

6,623,595

7,280,377

Operating profit

2,279,759

2,572,526

Non-operating income
Interest income

109

594

Dividend income

11,465

12,049Other

17,235

18,668

Total non-operating income

28,80931,312

Interest expenses

1,463

1,673

Foreign exchange losses

1,638

1,000

Non-operating expenses

Commission expenses

-

730

188

149

3,291

3,553

2,305,278

2,600,285

Gain on sales of investment securities-

63,338Gain on step acquisitions-

14,025

Total extraordinary income-

77,363

2,539

4,443

Other
Total non-operating expenses
Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets
Impairment loss-

60,1142,539

64,5582,302,739

2,613,090

Income taxes-current

736,193756,331

Income taxes-deferred

15,870131,707

Total income taxes

752,063

888,038

1,550,675

1,725,052

(250)

956

1,550,925

1,724,095

Total extraordinary losses
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 FY3/20

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)First nine months of FY3/19(Apr. 1, 2018 – Dec. 31, 2018)(Thousands of yen)First nine months of FY3/20(Apr. 1, 2019 – Dec. 31, 2019)1,550,675

1,725,052(36,326)

157,740(625)(12,703)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income(36,952)

145,037

1,513,723

1,870,089

Comprehensive income attributable to owners of parent

1,514,181

1,869,219

Comprehensive income attributable to non-controllinginterests

(458)

869

Comprehensive income
Comprehensive income attributable to7

QUICK CO., LTD. (4318) Financial Results for the Third Quarter of FY3/20(3) Notes to Quarterly Consolidated Financial Statements
Going-concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Segment Information
I. 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

Subtotal

Other(Note 1)

Total

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

Net sales
Sales to external
8,804,106 2,648,662 1,447,298 12,900,067 1,352,160 14,252,227- 14,252,227
customers
Inter-segment
836
5,152
7,121
13,10923,27936,389(36,389)
sales and transfers
Total
8,804,942 2,653,815 1,454,419 12,913,177 1,375,439 14,288,617(36,389) 14,252,227
Segment profit
1,898,210
600,643
97,795 2,596,649
238,201 2,834,851 (555,091)
2,279,759
Notes: 1. “Other” represents the businesses which are not included in any of the reportable segments and mainly consists of
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 specificreportable 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 the Company.
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.
II. First nine months of FY3/20 (Apr. 1, 2019 – Dec. 31, 2019)
1. Information pertaining to net sales and profit/loss in reportable segments
Reportable Segment
Human
Resources
Services
Business

Recruiting
Business

Information
Publishing
Business

Subtotal

Other(Note 1)

Total

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

Net sales
Sales to external
10,020,642 2,569,083
1,542,619 14,132,344 1,488,345 15,620,690
15,620,690
customers
Inter-segment
6,585
8,509
7,472
22,567
8,415
30,983(30,983)
sales and transfers
Total
10,027,227 2,577,592
1,550,091 14,154,911 1,496,761 15,651,673(30,983)
15,620,690
Segment profit
2,186,372
631,414145,734 2,963,521 193,597 3,157,118(584,591)
2,572,526
Notes: 1. “Other” represents the businesses which are not included in any of the reportable segments and mainly consists of
the IT and Internet-Related Business and the Overseas Business.
2. The (584,591 ) thousand yen adjustment to segment profit includes elimination for inter-segment transactions of
136,809 thousand yen, and (721,400) thousand yen in company-wide costs that cannot be allocated to any specificreportable 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 the Company.
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.

8