Aug 10, 2015

Non-Consolidated Financial Results (Excerpt) for the Third Quarterof Fiscal 2015 [J-GAAP basis]
Listed Company Name:
SHl-JAPAN Ltd.
Securities Code:4327
Representative:
Manabu Nara, Managing Director
Contact:
Naohiro Nakamura, executive director
Date to submit the Quarterly Securities Report:
Date to start distributing dividends:
Supplementary documents for this summary of financial statements
Results briefing for financial results:

Registered on Tokyo Stock Exchange
URL:
http://www.shl.co.jp/       Tel: +81-3-5385-8781
Aug 11, 2015
NoneNoneThe original disclosure in Japanese was released on July 29, 2015 at 15:15 (GMT+9)
1. Non-Consolidated Financial Results for the Third Quarter of Fiscal 2015 (October 1, 2014 to June 30, 2015)(1) Non-Consolidated Business Results(The percentages indicate the rate of increase or decrease compared with the same period of the previous fiscal year.)Net sales
Millions ofFirst nine monthsof Fiscal 2015
First nine monthsof Fiscal 2014

Operating income

Yen%

1,694
1,729

Millions of%‫ڹ‬2.0738

6.0819Millions ofNet income

Yen%‫ڹ‬9.8752

2.1819Millions ofYen%‫ڹ‬8.2475‫ڹ‬5.31.8502‫ڹ‬3.6

Fully diluted
net income per share

Net income per shareFirst nine monthsof Fiscal 2015
First nine monthsof Fiscal 2014

Ordinary income

Yen

Yen

Yen

158.56157.26162.01160.53(2) Non-Consolidated Financial Position
Total assets

Net assets

Millions ofJune 30, 2015
Sep 30, 2014
(Reference) Equity capital:

Yen

Equity ratio

Millions of

3,785
3,589
Jun 30, 2015: ¥3,256 million

Yen%

3,264
3,116
Sep 30, 2014: ¥3,104 million

86.0
86.5

2. Dividends
End ofFirst quarter

Fiscal 2014
Fiscal 2015Fiscal 2015 (forecast)

Dividend per share
End ofThird quarterEnd ofSecond quarter

Year-End

AnnualYen

YenYenYenYenʊʊ

45.00
46.00

ʊʊ

47.00

92.00

46.00

92.00

(Note) Revisions to recent dividends forecast: None

3. Non-Consolidated Forecast for the Year Ending September 30, 2015 (October 1, 2014 to September 30, 2015)
Net sales
Millions ofFiscal 2015

Operating income

Yen%

2,181

5.1

Millions of(Note) Revisions to recent business forecast: None

Ordinary income

Yen%

895

0.7

Millions ofNet income
per share

Net income

Yen%8950.1Millions ofYen%

Yen5753.5191.44

*Note(1) Application of particular accounts procedures to the preparation of quarterly non-consolidated financial statements:Yes(2) Changes in accounting policies and changes or restatement of accounting estimates(i) Changes in accounting policies caused by revision of accounting standards:
None(ii) Changes in accounting policies other than(ϸ) :None(iii)Changes in accounting estimates:None(iv) Restatement:
None
(1)

Number of shares outstanding (common stock)(i) Number of shares outstanding (includingtreasury shares)

As of Jun 30, 20153,018,679

As of Sep 30, 2014

3,101,800(ii) Number of treasury shares

As of Jun 30, 2015

-As of Sep 30, 2014

81,921(iii)Average Number of shares outstanding

First nine monthsof Fiscal 2015

2,999,886

First nine monthsof Fiscal 2014

3,101,779* 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 the Act were in progress at the time of the disclosure of thesefinancial results.

* Explanations and other special notes concerning the appropriate use of financial results forecasts
1. The forward-looking statements regarding financial results forecasts, etc., appearing in this financial results summary havebeen prepared based on information currently available to the Company and certain assumptions that the Company believes tobe reasonable. The Company makes no guarantee as to their realization. Actual financial results may differ substantially fromthe forecasts due to various factors.
2. As the Company’s services are often used for the screening of new graduates to be employed by corporate customers, oursales inevitably involve seasonal fluctuations. Up to the fiscal year ended September 30, 2014, our sales tended to beconcentrated in the second quarter, during which screening for the employment of new graduates was often conducted bymany corporate customers. However, the period in which our sales are concentrated has now shifted.

Qualitative information regarding the quarterly settlement of accounts(1) Explanation of operating results
During the first nine months of the year ending September 30, 2015 (October 1, 2014, through June 30, 2015),
net sales of SHL-JAPAN Ltd. (the “Company”) decreased ¥35 million, or 2.0%, year over year to ¥1,694 million.
By business segment, “Product sales” decreased 1.2% to ¥903 million and “Consultancy sales” decreased 4.1% to¥750 million, whereas “Training sales” increased 23.8% to ¥39 million.
As self-imposed regulations regarding the employment of new graduates* have been introduced by industry
groups effective from the current fiscal year (the year ending September 2015), many corporations delayed theirschedules concerning recruitment-related PR activity and screening compared with previous years, causing theCompany to delay its concentrated period for the provision of services to the second half of the current fiscal year.
This delayed schedule was the primary reason for the significant year-over-year decrease in revenue for the first six
months (October 1, 2014 through March 31, 2015). However, in the third quarter of the current fiscal year (April 1
through June 30, 2015), the Company’s sales successfully recovered in tune with the aggressive screening of new
graduates by corporations.
Operating income for the nine-month period under review decreased 9.8% year over year to ¥738 million. In
addition to the decline in revenue, the cost of goods sold rose ¥22 million, or 9.2%, year over year to ¥260 million,
and selling, general and administrative expenses increased ¥23 million, or 3.4%, year over year to ¥694 million,
thereby reducing operating income by ¥80 million year over year. The primary factor for the increase in the cost ofgoods sold is the increase in subcontracting cost associated with the operation of hall tests of which sales recovered
earlier than other sales materials. The increase in selling, general and administrative expenses was mainly
attributable to the year-over-year increases in rent due to increased floor space, in labor costs largely due to theexpansion centered on sales personnel and in sales promotion–related expenses.
Ordinary income for the nine-month period under review decreased 8.2% year over year to ¥752 million.
Ordinary income decreased ¥67 million year over year, reflecting the increase in non-operating expenses and thedecrease in operating income although non-operating income increased ¥13 million year over year mainly byrecording the gains on investments in a limited liability partnership for venture businesses, etc.
Income before income taxes for the nine-month period under review decreased ¥68 million, or 8.3%, year overyear to ¥752 million mainly due to a year-over-year decrease of ¥1 million in extraordinary gains in addition to thedecrease in ordinary income.
Income taxes-current and income taxes-deferred amounted to ¥276 million, for which the estimated effective tax
rate was 36.8% due to the change in the corporate tax rate (38.7% for the corresponding nine-month period a yearearlier). Net income for the nine-month period under review decreased ¥26 million, or 5.3%, year over year to ¥475
million, which was primarily attributable to the decrease in income before income taxes.
* The industry has self-imposed controls regarding the employment of new graduates, under which industry groups agreed not tostart employment PR activity and screening process for new graduates prior to a fixed date in light of the academic schedules
for students. The Keidanren (Japan Business Federation) stipulated in its “Guidelines for Recruiting and Employing NewGraduates” that corporations’ PR activity shall commence on and after March 1 (previously, it had been December 1 of theyear prior to graduation or completion), and screening activity on and after August 1 (previously, it had been April 1 of theyear of graduation or completion), respectively, of the year just preceding the year of graduation or post-graduate completion

for new graduates who will enter corporations on and after fiscal 2016.
 (Illustration of new graduates)
Graduating Year
Students scheduled tograduate in 2015
Students scheduled tograduate in 2016

Junior Students
December 1䋻㻼㻾㻌㻭㼏㼠㼕㼢㼕㼠㼥

Senior StudentsApril 1䋻㻿㼏㼞㼑㼑㼚㼕㼚㼓㻌㻭㼏㼠㼕㼢㼕㼠㼥

March 1䋻㻼㻾㻌㻭㼏㼠㼕㼢㼕㼠㼥August 1䋻㻿㼏㼞㼑㼑㼚㼕㼚㼓㻌
Activity(2) Explanation about future prospects such as business forecasts
As described in “(1) Explanation of operating results” above, the screening market for new graduates is inprogress in line with the impact of self-imposed controls newly introduced by industry groups.
With the Japanese economy following a moderate recovery undertone due to a set of economic policies and otherfactors and with a rising sense of a crunch in the labor market, the Company believes that the employment
environment will remain steady. Corporations have started to conduct aggressive screening of students who areexpected to graduate from universities, etc. in 2016. At the same time, the amounts of expected orders for the fourth
quarter (July 1 through September 30, 2015) have been successfully accumulated.
Under the recognition that our sales are likely to be concentrated in periods different from those for the previous
fiscal years and based on our analysis of the prospective orders and other managerial administrative data for thecurrent situation, followed by our careful considerations of business forecasts, the Company is not, at this time,revising its financial forecast for the year ending September 30, 2015, which was released on October 27, 2014.
Note: Net income per share has been revised based on the “Average number of shares outstanding” (3,004,623shares) for the year ending September 30, 2015, which was calculated by taking into account the number ofshares issued through the exercise of stock acquisition rights as stock options by the end of the third quarterof the year ending September 30, 2015, and the number of treasury shares that were retired on May 13, 2015.