Year Ended September 30, 2009
Overview of Financial Results and Performance (Excerpt)

Analysis of Operating Results(1) Operating results for the year ended September 30, 2009
As SHL-JAPAN Ltd. (the “Company”) merged its sole consolidated subsidiary as of January 1, 2008,
the operating results of the Company for the year ended September 2009 (October 1, 2008, throughSeptember 30, 2009) are reported only on a non-consolidated basis. Net sales decreased ¥54 million,
or 3.2% year over year; operating income decreased ¥45 million, or 6.6%; ordinary income
decreased ¥42 million, or 6.2%; income before income taxes decreased ¥100 million, or 14.1%; andnet income declined ¥59 million, or 14.2%, compared with the corresponding consolidated figures
for the previous fiscal year (October 1, 2007, through September 30, 2008). Consequently, theCompany recorded declines in revenue and profit.
The following describes the operating results for the year ended September 30, 2009, comparedwith the corresponding figures of the previous fiscal year on a non-consolidated basis.
Net sales for the year under review decreased ¥45 million, or 2.7% year over year, to ¥1,622
million. By business segment, “Product sales” increased 4.8% to ¥583 million, “Consultancy sales”
decreased 6.5% to ¥1,013 million and “Training sales” decreased 7.7% to ¥26 million.
“Product sales” expanded ¥26 million year over year due to favorable sales of the mainstay
GAB/CAB/SAB employment screening–related products, especially those of Web-based assessment
tools (Internet-related services) such as WebGAB and WebCAB. This sales increase reflectedcustomers’ support of the features of our product services such as ease of implementation and a costadvantage given the deteriorating employment environment under the stringent economic climate
due to the lingering global setback. Conversely, “Consultancy sales” decreased ¥70 million year overyear. This was primarily attributable to the stagnant sales of the “Human Assessment Service*,” etc.,
despite the continued rise in sales of customized versions of the “Web Aptitude Test,” a Web
assessment tool, and unfavorable sales of “Tamatebako,” an Internet-based screening system. The
results reflected reduced customer demand for the “Human Assessment Service,” which is often used
for the assessment of existing employees (as an internal service), and for “Tamatebako,” which isused at the initial screening stage of new graduates, in view of increasing requests for further cost
reduction in the aforementioned difficult economic environment. “Training sales” decreased ¥2million year over year.
Operating income for the year under review totaled ¥648 million, down 6.0% year over year.
Although the cost of goods sold decreased ¥25 million, or 10.2%, to ¥226 million, due to a decline-1-in revenue, selling, general and administrative expenses increased ¥21 million, or 2.9%, to ¥748
million, thereby reducing operating income by ¥41 million. A leading contributor to the rise inselling, general and administrative expenses was a year-over-year increase of ¥39 million inexpenses, including internal control system improvement expenses, R&D expenses for new services
and rent paid in association with the integration or abolition of sales bases despite a decline of ¥18
million in sales promotion expenses.
Ordinary income for the year under review decreased 5.9% year over year to ¥650 million.
Ordinary income decreased ¥40 million, reflecting a year-over-year increase of ¥2 million in
non-operating expenses and a decline in operating income, which were partly offset by a
year-over-year increase of ¥3 million in non-operating income. The rise in non-operating income
was primarily attributable to the recording of a ¥7 million return premium for the cancellation ofcertain life insurance contracts, whereas the rise in non-operating expenses was mainly due to an ¥8million loss on investment in capital of a limited liability investment partnership for venture
enterprises.
Income before income taxes for the year under review decreased 20.0% year over year to ¥607
million. Income before income taxes for the previous fiscal year reflected the recording of ¥102
million in insurance income due to the death of the former President and a ¥54 million gain on
extinguishment of tie-in shares, which was derived from the merger of a consolidated subsidiary,
under extraordinary gains, as well as the recording of ¥12 million in company funeral-related
expenses and ¥71 million in directors’ retirement benefits under extraordinary losses. Meanwhile,
income before income taxes for the year under review decreased ¥152 million year over year due toa decline in ordinary income and the recording of a ¥42 million loss from the integration or abolitionof sales bases (recorded as a “loss on retirement of noncurrent assets” and “office transferexpenses”) under extraordinary losses.
After taking into account the above factors and income taxes—current and income
taxes—deferred, net income for the year under review decreased ¥113 million, or 24.0% year overyear, to ¥360 million.

(2) Projected Performance for the year ending September 30, 2010
In the lingering difficult economic environment resulting from the worldwide economic setback,domestic employment conditions have deteriorated as the market for screening new graduates has
reversed from an excessive seller’s market to a so-called “employment ice age.” Consequently, we
recognize that our corporate customers will be obliged to selectively reduce the number of new
graduates in an increasingly severe business climate and the environment surrounding the Company
will remain tough in the next fiscal year (October 1, 2009, through September 30, 2010).

-2-Nevertheless, the current stringent situation in which corporate customers are reducing thenumber of new graduates means relatively larger populations for screening. In other words, thecorporate need for “more adequate human resources,” that is, “competent employees who candemonstrate good results soon after joining the company and show an aptitude for the intended job
assignments,” has intensified, thereby requiring more appropriate screening tools.
As described above, we believe the basic need for tools for screening new graduates is still solid
and the Company therefore intends to focus on this market for some time to come. At the same time,
we intend to increase our operating performance through aggressive sales promotion along withefforts to enhance merchantability and reinforce sales organizations in view of the forthcoming
economic recovery.
As a consequence, net sales of ¥1,700 million (up 4.8% year over year), operating income of¥695 million (up 7.2%), ordinary income of ¥690 million (up 6.1%) and net income of ¥409 million(up 13.5%) are projected for the year ending September 30, 2010.

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