Summary of Consolidated Financial Results for the Second Quarterof the Fiscal Year Ending March 31, 2019
(Six Months Ended September 30, 2018)[Japanese GAAP]
October 31, 2018

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:
November 12, 2018
Scheduled date of payment of dividend:
December 3, 2018
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:Yes(All amounts are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2019
(April 1, 2018 – September 30, 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

Six months ended Sep. 30, 2018
9,938 18.2
2,017 19.1
Six months ended Sep. 30, 2017
8,405 12.9
1,694 10.0
Note: Comprehensive income (millions of yen) Six months ended Sep. 30, 2018:
Six months ended Sep. 30, 2017:%

Millions of yen%

2,033 16.5
1,745 10.3
1,632 (up 20.7%)
1,352 (up 21.7%)

1,383
1,228

12.6
14.3

Net income per share

Diluted net income per share

Yen

Yen

73.56
65.39

-

Six months ended Sep. 30, 2018
Six months ended Sep. 30, 2017

Profit attributable toowners of parent

Ordinary profit(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen

Shareholders’ equity ratio Net assets per share%

As of Sep. 30, 201812,047
8,323
10,451
6,977
As of Mar. 31, 2018
Reference: Shareholders’ equity (millions of yen)
As of Sep. 30, 2018:
8,323

Yen

69.1
66.6
As of Mar. 31, 2018: 6,964

441.37370.72

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: None

Dividend per share
3Q-endYear-end

Total

Yen

Yen

Yen

Yen

17.00
19.00

-

18.00

35.00

-

19.00

38.00

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
18,500 10.3
2,300
4.6
2,530 10.0
Note: Revisions to the most recently announced consolidated earnings forecast: None%

Millions of yen%

Millions of yen

1,753

7.8

93.34

* 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 Sep. 30, 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 Sep. 30, 2018:

241,171 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2018:

18,811,523 shares

Six months ended Sep. 30, 2017:18,787,539 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 Second Quarter of FY3/19

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first half of the fiscal year ending March 31, 2019, the Japanese economy continued recovering at amoderate 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 uncertain, such as
the impact of a series of natural disasters (unprecedented torrential rains, earthquakes, and typhoons) in Japan, thetrade conflict between the U.S. and China stemmed from the U.S. protectionist trade policies, and the long-term
interest rate having been stuck at a high level in the U.S.
In Japan’s labor market, a shortage of workers is becoming more severe in a wide range of sectors, includingtransportation, construction, as well as manufacturing. In August 2018, all the employment-related indicatorsreflected Japan’s labor shortage. Among others, the seasonally adjusted job openings-to-applicants ratio was 1.63,
the seasonally adjusted job openings-to-applicants ratio for full-time employees was 1.13, and the seasonallyadjusted unemployment rate was 2.4%.
During the first half, 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 fromcompetitors and increasing customer satisfaction by helping solve recruiting and other labor-related problems atclient companies. Furthermore, the Group has been building a stronger foundation for business operations byaggressively recruiting people with outstanding skills and making other investments in human resources.
In the personnel placement category of the Human Resources Services Business, recruiting needs remained highin the construction, civil engineering, and manufacturing sectors. Strong demand for recruiting nurses at hospitals
and nursing care facilities also continued. As a result, the category enjoyed a solid expansion in the placements ofprofessionals 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, released the 2019 National Nursing Examination prep app, and provided better support for theregistrants.
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.
Although the corporate hiring interest is increasing due to the labor shortage associated with a declining
unemployment rate in Japan, many companies are having difficulty securing personnel who can work full-time asa regular employee, temporary staff, or those working in any other form of employment. Therefore, demand also
remained strong for our part-time staff placement.
Overall, the segment sales increased 18.2% year-on-year to 6,418 million yen and operating profit increased
17.8% year-on-year to 1,877 million yen.
In the Recruiting Business, the volume of recruiting advertisements for full-time employees in the mid-year
hiring category continued increasing against the backdrop of the persistent severity of the labor shortage in a wide
range of sectors in Japan. The volume of recruiting advertisements for hiring part-time workers also remained
firm.
In the new college graduate category, the volume of business remained steady for advertisements on a website
targeting students planning to graduate in March 2020 and searching for an intern position in addition to
recruiting advertisements that target students expected to graduate in March 2019. Furthermore, the category also
enjoyed a solid performance for consulting services to help enhance the effectiveness of recruiting advertisements,
as well as outsourcing of HR functions such as recruiting and suitability examination.
Overall, the segment sales increased 11.1% year-on-year to 1,744 million yen and operating profit increased 9.4%
year-on-year to 353 million yen.

1

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

In the Information Publishing Business, we achieved solid performance for “Kekkon Sanka”—a bridal magazine
for the Hokuriku region of Japan, as well as the life-style magazines including “Kanazawa Joho”—a free-paper
distributed for mainly Kanazawa City and “Takaoka Joho,” which was newly published in June this year, and“Iezukuri Navi”—a housing information magazine.
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 substantially, driven primarily by services related to career change
and wedding.
Overall, the segment sales increased 10.4% year-on-year to 921 million yen and operating profit was 38 million
yen (compared with operating loss of 21 million yen in 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. We also worked to develop services under the “Nihon no Jinjibu” brand including the
publication of “Nihon no Jinjibu White Paper 2018”—a survey report featuring challenges and solutions for the
HR function in Japan by leveraging its membership network with over 130,000 professionals.
In the Overseas Business, QUICK USA, Inc. continued performing strongly as the corporate hiring interest
remained strong amid further intensified competition for acquiring job seekers with working qualification within
the U.S. is intensifying further against a backdrop of tightened labor visa acquisition for foreigners. Specifically,
Los Angeles and New York branches both enjoyed a strong performance in personnel placement and New Yorkbranch also reported a favorable result in the temporary staffing business.
Shanghai QUICK CO., LTD. substantially expanded 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 for acquiring and retaining competent humanresources is strong despite the fact that the Chinese economy was sluggish.
QUICK GLOBAL MEXICO, S.A. DE C.V. continued enjoying strong demand from locally operated Japanese
automakers for interpreters, salespeople and production controllers. In addition, the company successfully seizedgrowing opportunities of recruitment support for local Japanese companies in the sectors other than theautomobile sector including financial services and trading. However, the business performance stagnated becauseof protracted consulting periods in many cases.
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. QUICKVIETNAM CO., LTD. also continued showing an excellent performance of personnel placement for local
Japanese companies, notably in the apparel and construction instruction 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 being assigned abroad.
Overall, sales of other businesses increased 49.5% year-on-year to 854 million yen and operating profit increased
27.3% year-on-year to 125 million yen.
As a result of these factors, sales and earnings set a new first half record just as in the first half of the previous
fiscal year. Net sales increased 18.2% year-on-year to 9,938 million yen, operating profit increased 19.1%
year-on-year to 2,017 million yen, ordinary profit increased 16.5% year-on-year to 2,033 million yen, and profit
attributable to owners of parent increased 12.6% year-on-year to 1,383 million yen.

2

QUICK CO., LTD. (4318) Financial Results for the Second Quarter of FY3/19(2) Explanation of Financial Position
1) Assets, liabilities and net assets
Total assets at the end of the second quarter of the fiscal year under review were 12,047 million yen, which was
1,596 million yen more than at the end of the previous fiscal year. This was mainly the result of increases in cash
and deposits and investment securities despite a decrease in notes and accounts receivable-trade.
Total liabilities were 3,723 million yen, which was 249 million yen more than at the end of the previous fiscal
year. This was mainly the result of increases in income taxes payable and deferred tax liabilities despite adecrease in accounts payable-trade.
Total net assets were 8,323 million yen, which was 1,346 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 2.5 percentage points from the end of theprevious fiscal year to 69.1%.
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.
2) Cash Flows
Cash and cash equivalents (hereinafter referred to as “net cash”) increased 1,390 million yen from the end of theprevious fiscal year to 6,405 million yen at the end of the second quarter of the fiscal year under review.
Outflows were caused mainly by a decrease in notes and accounts payable-trade and cash dividends paid,
while inflows were caused by recording of profit before income taxes.
Cash flows by category are as follows.
Cash flows from operating activities
Net cash provided by operating activities increased 91.4% year-on-year to 1,931 million yen. Negative factors
include a decrease in notes and accounts payable-trade of 325 million yen and income taxes paid of 299 million
yen. Positive factors include profit before income taxes of 2,031 million yen.
Cash flows from investing activities
Net cash used in investing activities decreased 36.3% year-on-year to 201 million yen. Negative factors include
purchase of non-current assets of 198 million yen.
Cash flows from financing activities
Net cash used in financing activities increased 24.9% year-on-year to 385 million yen. Negative factors include
cash dividends paid of 337 million yen.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
At this point, there are no revisions to the full-year consolidated earnings forecasts 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.
An announcement will be made promptly if the review of impact on the Group’s business performance requires arevision to the forecasts.

3

QUICK CO., LTD. (4318) Financial Results for the Second 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)
Second quarter of FY3/19(As of Sep. 30, 2018)

AssetsCurrent assets
Cash and deposits

5,044,883

6,435,525

Notes and accounts receivable-trade

1,997,915

1,667,292

Other

380,119

296,844

Allowance for doubtful accounts(1,443)(1,564)

7,421,474

8,398,097

531,709848,681

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

6,838

6,629

Tools, furniture and fixtures, net

90,012

95,681

Land

276,869

276,869

Leased assets, net

8,022

12,645Construction in progress

70,811-

Total property, plant and equipment

984,264

1,240,506

143,708

129,129

6,224

2,592

Other

192,428

198,695

Total intangible assets

342,361

330,417

Intangible assets
Goodwill
Leased assets

Investments and other assets
Investment securities

1,100,759

1,417,365

Lease deposits

510,491

510,695

Deferred tax assets

40,67048,460Other62,250107,091

Allowance for doubtful accounts(11,105)(4,968)

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

4

1,703,065

2,078,643

3,029,691

3,649,567

10,451,165

12,047,665

QUICK CO., LTD. (4318) Financial Results for the Second Quarter of FY3/19(Thousands of yen)
Second quarter of FY3/19(As of Sep. 30, 2018)

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

250,995

Short-term loans payable

188,300

188,300

Accounts payable-other889,392

975,426

Accrued expenses

442,178

461,772

Income taxes payable

342,450

700,922

Accrued consumption taxes

235,419

273,188

Provision for bonuses

359,642360,040

Provision for repayment

17,10024,500

Other

190,049

205,236

3,320,007

3,440,381

Deferred tax liabilities

90,871

193,079

Asset retirement obligations

55,31078,035

Total current liabilities
Non-current liabilities

Other

7,886

12,323

154,068

283,4393,474,075

3,723,820

Capital stock

351,317351,317

Capital surplus

307,998

391,392

Retained earnings

5,723,382

6,744,517

Treasury shares(19,223)(14,961)

Total shareholders’ equity

6,363,475

7,472,265

586,784

846,330

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

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

14,6294,456

Total accumulated other comprehensive income

601,413

850,786

12,201

792

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

56,977,090

8,323,844

10,451,165

12,047,665

QUICK CO., LTD. (4318) Financial Results for the Second Quarter of FY3/19(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Six-month Period)First six months of FY3/18(Apr. 1, 2017 – Sep. 30, 2017)(Thousands of yen)First six months of FY3/19(Apr. 1, 2018 – Sep. 30, 2018)

Net sales

8,405,218

9,938,494

Cost of sales

3,183,064

3,499,827

Gross profit

5,222,153

6,438,666

Selling, general and administrative expenses

3,527,552

4,421,026

Operating profit

1,694,600

2,017,639

Non-operating income
Interest income

58

82

Dividend income

9,264

6,505

Book sales commission

8,514

-

Subsidy income

20,250-Other

15,914

11,516

Total non-operating income

54,003

18,103Non-operating expenses
Interest expenses

1,279

989

Foreign exchange losses

2,135

1,054

Other
Total non-operating expenses
Ordinary profit

108

128

3,524

2,172

1,745,079

2,033,570

-

2,539

Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses

-

2,539

1,745,079

2,031,031

427,027

668,946

Income taxes-deferred

88,062(21,518)

Total income taxes

515,089

647,428

1,229,990

1,383,602

Profit before income taxes
Income taxes-current

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

6

1,434

(146)

1,228,555

1,383,749

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

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)First six months of FY3/18(Apr. 1, 2017 – Sep. 30, 2017)(Thousands of yen)First six months of FY3/19(Apr. 1, 2018 – Sep. 30, 2018)

1,229,990

1,383,602

121,399

259,545

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

1,306(10,523)

122,706

249,021

1,352,696

1,632,624

Comprehensive income attributable to owners of parent

1,351,172

1,633,122

Comprehensive income attributable to non-controllinginterests

1,523

(497)

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to7

QUICK CO., LTD. (4318) Financial Results for the Second Quarter of FY3/19(3) Quarterly Consolidated Statement of Cash Flows(Thousands of yen)First six months of FY3/18
First six months of FY3/19(Apr. 1, 2017 – Sep. 30, 2017) (Apr. 1, 2018 – Sep. 30, 2018)
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts

1,745,079

2,031,031

74,141

78,427-

7,411(5,016)(6,019)

Increase (decrease) in provision for bonuses(216,048)

10

Increase (decrease) in provision for directors’ bonuses(52,450)

-

8,900

7,400

(9,323)(6,587)

Increase (decrease) in provision for repayment
Interest and dividend income
Interest expenses
Loss on retirement of non-current assets

1,279

989

-

2,539

Decrease (increase) in notes and accounts receivable-trade374,508

351,691

Increase (decrease) in notes and accounts payable-trade(361,670)(325,064)

Increase (decrease) in accrued consumption taxes(28,114)

38,748Other, net(93,771)

44,625

Subtotal

1,437,514

2,225,204

Interest and dividend income received
Interest expenses paid

9,323

6,587

(1,294)(1,004)

Income taxes paid

(436,910)(299,763)

Net cash provided by (used in) operating activities

1,008,633

1,931,023

Purchase of property, plant and equipment(100,962)(152,490)

Purchase of intangible assets(37,766)(46,059)

Purchase of investment securities
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Other, net(32,753)(2,729)(142,499)-(1,811)-

Net cash provided by (used in) investing activities(315,794)(201,279)

Cash flows from investing activities

Cash flows from financing activities
Net increase (decrease) in short-term loans payable(1,602)-

Repayments of lease obligations(7,343)(5,564)

Cash dividends paid
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Other, net(299,321)(337,488)-(42,062)

(24)

(81)

Net cash provided by (used in) financing activities(308,291)(385,196)

1,613(5,028)Net increase (decrease) in cash and cash equivalents

386,161

1,339,518

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly
consolidated subsidiary

4,639,428

5,014,883

65,341

51,123

Cash and cash equivalents at end of period

5,090,930

6,405,525

Effect of exchange rate change on cash and cash equivalents

8

QUICK CO., LTD. (4318) Financial Results for the Second Quarter of FY3/19(4) 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 six months of FY3/18 (Apr. 1, 2017 – Sep. 30, 2017)
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(Note 2)statement ofincome(Note 3)

Net sales
Sales to external
5,428,923 1,569,720
834,703 7,833,347 571,870
8,405,218
8,405,218
customers
Inter-segment793
12,183
4,510
17,48823,66841,156(41,156)
sales and transfers
Total
5,429,717 1,581,904
839,214 7,850,836 595,539
8,446,375(41,156)
8,405,218
Segment profit
1,593,579
322,943(21,789) 1,894,733
98,3881,993,121(298,520)
1,694,600(loss)
Notes: 1. “Other” represents the businesses which are not included in any of the reportable segments and mainly consistsof Internet-Related Business and Overseas Business.
2. The (298,520) thousand yen adjustment to segment profit (loss) includes elimination for inter-segment
transactions of 67,478 thousand yen, and (365,999) thousand yen in company-wide costs that cannot be allocatedto any specific reportable segments. Company-wide costs consist primarily of expenses related to theadministration division which are not attributable to any reportable segments, including general affairs andaccounting at the Company.
3. Segment profit (loss) 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
Significant change in goodwill
Goodwill was booked in the “Other (Overseas Business)” segment as the Company acquired the shares of Centre People
Appointments Ltd.
The event caused the amount of goodwill to increase by 145,139 thousand yen during the first six months of the fiscal year
ending March 31, 2018.

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

II. First six months of FY3/19 (Apr. 1, 2018 – Sep. 30, 2018)
1. Information pertaining to net sales and profit/loss in reportable segments
Reportable Segment(Thousands of yen)Amount in
the quarterly
Adjustment consolidated(Note 2)statement ofincome(Note 3)

Human
Resources
Services
Business

Recruiting
Business

Information
Publishing
Business

Subtotal

Other(Note 1)

Total

6,418,492

1,744,090

921,097

9,083,680

854,813

9,938,494-

9,938,494

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

176

3,439

4,522

8,138

20,67328,812(28,812)-

6,418,669

1,747,530

925,620

9,091,819

875,487

9,967,307(28,812)

9,938,494

Segment profit

1,877,274

353,161

38,612

2,269,048

125,2222,394,270(376,630)

2,017,639

Notes: 1. “Other” represents the businesses which are not included in any of the reportable segments and mainly consistsof Internet-Related Business and Overseas Business.
2. The (376,630) thousand yen adjustment to segment profit includes elimination for inter-segment transactions of
69,859 thousand yen, and (446,490) 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.

10