Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2020
(Based on Japanese GAAP)May 15, 2020
Company name:

Human Holdings Co., Ltd.

Stock exchange listing: Tokyo
Stock code:
2415
Representative:
Inquiries:

URL

https://www.athuman.com/

Representative Director, President and CEO
Director, Corporate Planning Division

Tomonari Sato
Yasuhiro SatoScheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 25, 2020
June 26, 2020

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 26, 2020
Yes

Holding of financial results meeting:

Yes

TEL

03-6846-8002(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2020
85,989
2.0
2,002
(5.2)
2,127(2.1)
848(30.3)
Year ended March 31, 201984,313
7.0
2,111
11.4
2,172
8.7
1,217
7.7

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
7.7
5.3
2.3
–
11.9
5.6
2.5

Diluted earnings pershare

Yen
78.00111.95

Year ended March 31, 2020
Year ended March 31, 2019(2) Consolidated financial position

Total assets
As of March 31, 2020
As of March 31, 2019

Net assets

Equity ratio

Millions of yen
40,15440,311Millions of yen
11,323
10,719Cash flows fromoperating activities
Millions of yen
1,400
2,692

Cash flows frominvesting activities
Millions of yen(1,221)(1,210)Net assets per share%
28.2
26.6

Yen
1,040.95
985.40(3) Consolidated cash flows

Year ended March 31, 2020
Year ended March 31, 2019

Cash flows from
Cash and cash equivalents
at end of periodfinancing activities
Millions of yen
Millions of yen(333)
20,138348
20,294

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2019Year ended March 31, 2020
Year ending March 31, 2021
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

0.00
0.00

––

22.50
16.00

22.50
16.00

244
174

20.1
20.5

2.4
1.6

–

––––

1–

3. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

NoNo

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2020

10,987,200 shares As of March 31, 2019

10,987,200 shares

Number of treasury shares at the end of the period
As of March 31, 2020

109,159 shares As of March 31, 2019

109,159 shares

10,878,041 shares Year ended March 31, 201910,878,198 shares

Average number of shares during the period
Year ended March 31, 20202

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of March 31, 2019

As of March 31, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade20,294,996
9,502,787

20,138,690
9,766,497

Merchandise
Supplies

611,639
21,671

636,71333,787

Other
Allowance for doubtful accounts

940,283(6,550)828,126(10,110)31,364,828

31,393,705

2,602,748
260,978

2,446,523
253,497502,700–

502,700
3,412

3,366,426

3,206,133

Intangible assets
Software1,301,968

1,313,052

Goodwill
Other

125,252
99,45352,034
98,971

Total intangible assets

1,526,674

1,464,058

Investments and other assets
Investment securities

553,804

500,796

305,259
2,195,043

340,897
2,272,842

Deferred tax assets
Other

418,961
709,415

431,215
680,538

Allowance for doubtful accounts(128,909)(135,955)

Total investments and other assets

4,053,575

4,090,336

8,946,676

8,760,528

40,311,505

40,154,233

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, netTools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment

Long-term loans receivable
Guarantee deposits

Total non-current assets
Total assets3

(Thousands of yen)
As of March 31, 2019

As of March 31, 2020

Liabilities
Current liabilities
Accounts payable - trade259,787

242,956

Short-term borrowings
Current portion of long-term borrowings

260,000
2,045,755

280,000
2,292,521

Advances received
Accounts payable - other

10,731,012
7,049,617

10,644,179
5,949,388

Income taxes payable
Accrued consumption taxes

486,0221,030,794

495,426
1,401,707

Provision for bonuses
Other835,796
1,454,639

859,006
1,538,393

Total current liabilities

24,153,424

23,703,579

Non-current liabilities
Long-term borrowings

4,389,013

4,033,995

Provision for retirement benefits for directors (and otherofficers)

457,768

489,235

Asset retirement obligations
Deferred tax liabilities

345,146
1,400

354,570–

Other

245,494

249,319

5,438,823

5,127,119

29,592,248

28,830,699

Share capital
Capital surplus

1,299,900
809,900

1,299,900
809,900

Retained earnings
Treasury shares

8,682,602(66,794)

9,286,285(66,794)

Total shareholders' equity

10,725,608

11,329,291

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
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4(637)–(5,714)(5,757)(6,351)(5,757)

10,719,257

11,323,533

40,311,505

40,154,233

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year endedMarch 31, 2019

Fiscal year ended
March 31, 2020

Net sales

84,313,286

85,989,819

Cost of sales

61,173,073

62,529,695

Gross profit

23,140,213

23,460,124

Selling, general and administrative expenses

21,028,826

21,457,614

Operating profit

2,111,386

2,002,510

Non-operating income
Interest income

10,377

11,198Dividend income
Examination fee

832
26,580112
19,782

Reversal of allowance for doubtful accounts
Subsidy income

28,367
24,333–57,665

Compensation income
Other

1,653
72,752

43,23666,804

Total non-operating income

164,896

198,800

Non-operating expenses
Interest expenses

14,521

13,848Settlement package
Foreign exchange losses

77,210310

6,570
19,572

Loss on abandonment of supplies
Other

4,075
7,761

10,187
23,841

103,879

74,0202,172,403

2,127,290–
41,673

196
–

–

548

41,673744

Loss on retirement of non-current assets
Loss on valuation of investment securities

23,104–

11,46816,041

Loss on valuation of shares of subsidiaries and associates
Impairment loss–
148,001

141,942
128,707

Total extraordinary losses

171,105

298,159

Profit before income taxes

2,042,970

1,829,875

Income taxes - current
Income taxes - deferred

894,057(68,870)995,091(13,654)

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on transfer of receivables
Total extraordinary income
Extraordinary losses

Total income taxes

825,186

981,436

Profit1,217,783

848,438

Profit attributable to owners of parent

1,217,783

848,4385

Consolidated statements of comprehensive income(Thousands of yen)

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

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020

1,217,783

848,438(512)
21637(42)

(491)

594

1,217,292

849,032

1,217,292

849,032––

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2019
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

1,299,900

Retained earnings

809,900

7,735,653

Treasury shares(66,392)

Total shareholders'equity9,779,060

Changes during period
Dividends of surplus(228,442)(228,442)

Profit attributable to ownersof parent

1,217,783

1,217,783

Purchase of treasury shares(401)

Change in scope ofconsolidation(42,391)(401)(42,391)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period––

946,949(401)

946,548

1,299,900

809,900

8,682,602(66,794)

10,725,608

Accumulated other comprehensive income
Valuation difference on
Foreign currency
available-for-saletranslation adjustment
securities
Balance at beginning of period(124)(5,735)

Total accumulated
other comprehensiveincome(5,860)Total net assets

9,773,200

Changes during period
Dividends of surplus(228,442)

Profit attributable to ownersof parent

1,217,783

Purchase of treasury shares(401)

Change in scope ofconsolidation(42,391)

Net changes in items otherthan shareholders' equity(512)

21(491)(491)

Total changes during period(512)

21(491)946,056

Balance at end of period(637)(5,714)(6,351)

10,719,257

7

Fiscal year ended March 31, 2020
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

1,299,900

Retained earnings

809,900

8,682,602

Total shareholders'equity

Treasury shares(66,794)

10,725,608

Changes during period
Dividends of surplus(244,755)(244,755)

Profit attributable to ownersof parent

848,438

848,438

Purchase of treasury shares
Change in scope ofconsolidation
Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period––

603,682–

603,682

1,299,900

809,900

9,286,285(66,794)

11,329,291

Accumulated other comprehensive income
Valuation difference on
Foreign currency
available-for-saletranslation adjustment
securities
Balance at beginning of period(637)(5,714)

Total accumulated
other comprehensiveincome(6,351)

Total net assets

10,719,257

Changes during period
Dividends of surplus(244,755)

Profit attributable to ownersof parent

848,438

Purchase of treasury shares–

Change in scope ofconsolidation–

Net changes in items otherthan shareholders' equity

637

Total changes during period

637

(42)

594

604,276

Balance at end of period–(5,757)(5,757)

11,323,533

(42)

8594

594

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020

2,042,970

1,829,875

Depreciation
Impairment loss

838,418
148,001

888,974
128,707

Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts

100,803(35,784)

85,823
10,595

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits for

38,912

23,21036,276

31,466

77,2106,570Interest and dividend income
Interest expenses(11,209)
14,521(11,311)
13,848Loss on retirement of non-current assets
Gain on sales of non-current assets

23,104–

11,468(196)

Loss (gain) on valuation of investment securities
Loss (gain) on sales of investment securities–(41,673)

16,041–––(548)
141,942Compensation income
Decrease (increase) in trade receivables(1,653)(245,752)(43,236)(259,233)

Decrease (increase) in inventories
Increase (decrease) in trade payables(86,563)
57,823(40,513)(16,830)

Increase (decrease) in advances received
Increase (decrease) in accounts payable - other270,509
158,751(84,453)(938,666)

Increase (decrease) in accrued consumption taxes
Other, net

88,462
74,333428,989
146,772

directors (and other officers)
Settlement package

Gain on transfer of receivables
Loss on valuation of shares of subsidiaries and associates

Subtotal3,547,464

2,369,296

Interest and dividends received
Interest paid

7,559
(14,673)

11,333(13,843)

Settlement package paid
Proceeds from compensation(76,449)
1,433(7,043)
43,236

Income taxes (paid) refund(772,730)(1,002,382)

Net cash provided by (used in) operating activities

2,692,604

1,400,597

Purchase of property, plant and equipment
Purchase of intangible assets(617,023)(654,550)(595,130)(538,866)

Purchase of investment securities
Proceeds from sales of investment securities(2,520)87,500(104,338)–Payments for acquisition of businesses
Proceeds from divestments–
14,760(33,399)–

Payments of guarantee deposits
Proceeds from refund of guarantee deposits(105,352)
60,719(110,701)
19,766

Loan advances
Collection of loans receivable(162,666)
23,043(76,002)81,794

Subsidy income
Other, net

144,000
1,985

135,000
186(1,210,105)(1,221,691)

Cash flows from investing activities

Net cash provided by (used in) investing activities

9(Thousands of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020
10,00020,0002,800,000(2,232,993)

2,250,000(2,358,252)

Dividends paid
Other, net(228,442)(401)(244,755)–Net cash provided by (used in) financing activities

348,162(333,007)

Proceeds from long-term borrowings
Repayments of long-term borrowings

Effect of exchange rate change on cash and cash equivalents(3,851)(2,203)

Net increase (decrease) in cash and cash equivalents

1,826,809(156,305)

Cash and cash equivalents at beginning of period

18,461,766

20,294,996

6,420

–

20,294,996

20,138,690

Increase in cash and cash equivalents resulting from inclusion ofsubsidiaries in consolidation
Cash and cash equivalents at end of period10