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, 2019
(Based on Japanese GAAP)May 15, 2019
Company name:

Human Holdings Co., Ltd.

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

URL

http://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 27, 2019
June 28, 2019

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

June 28, 2019
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, 2019 (from April 1, 2018 to March 31, 2019)(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, 201984,313
7.0
2,111
11.4
2,172
8.7
1,217
7.7
Year ended March 31, 2018
78,763
5.8
1,895
2.6
1,999
1.3
1,131
12.8

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–
11.9
5.6
2.5–
12.2
5.5
2.4

Diluted earnings pershare

Yen
111.95103.98Year ended March 31, 2019Year ended March 31, 2018
(2) Consolidated financial position

Total assets
As of March 31, 2019
As of March 31, 2018

Net assets

Equity ratio

Millions of yen
40,311
37,638Millions of yen
10,7199,773

Cash flows fromoperating activities
Millions of yen
2,692
2,539

Cash flows frominvesting activities
Millions of yen(1,210)(1,858)

Net assets per share%
26.6
26.0

Yen
985.40898.42(3) Consolidated cash flows

Year ended March 31, 2019Year ended March 31, 2018

Cash flows from
Cash and cash equivalents
at end of periodfinancing activities
Millions of yen
Millions of yen
348
20,294961
18,461

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

Year ended March 31, 2018Year ended March 31, 2019Year ending March 31, 2020
(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

––

21.00
22.50

21.00
22.50

228
244

20.2
20.1

2.5
2.4

–

0.00–24.00

24.00

1

20.2

3. Forecast of consolidated financial results for the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
Net sales
Millions of yen
Six months ending
September 30, 2019
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen

43,072

3.7

679(21.9)

674(21.8)

308(39.3)

28.38

89,909

6.6

2,283

8.2

2,273

4.7

1,291

6.0

118.68

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2019(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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(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, 2019

10,987,200 shares As of March 31, 2018

10,987,200 shares

Number of treasury shares at the end of the period
As of March 31, 2019

109,159 shares As of March 31, 2018108,966 shares

10,878,198 shares Year ended March 31, 201810,878,264 shares

Average number of shares during the period
Year ended March 31, 20192

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of March 31, 2018

As of March 31, 2019

AssetsCurrent assets
Cash and depositsNotes and accounts receivable - trade18,461,766
9,148,096

20,294,996
9,502,787

Merchandise
Supplies

514,545
24,850611,639
21,671Other
Allowance for doubtful accounts

706,746(6,138)940,283(6,550)28,849,866

31,364,828

2,563,725
309,151

2,602,748
260,978

502,700
129,364

502,700–

3,504,940

3,366,426

Intangible assets
Software866,274

1,301,968

Goodwill
Other

209,783
104,867

125,252
99,453

Total intangible assets

1,180,925

1,526,674

Investments and other assets
Investment securities

674,624

553,804389,423
2,202,357

305,259
2,195,043

Deferred tax assets
Other348,690
651,956

418,961
709,415

Allowance for doubtful accounts(164,097)(128,909)

Total investments and other assets

4,102,954

4,053,575

8,788,820

8,946,676

37,638,687

40,311,505

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, 2018

As of March 31, 2019

Liabilities
Current liabilities
Accounts payable - trade

201,963259,787

Short-term loans payable
Current portion of long-term loans payable

250,000
1,861,354

260,000
2,045,755

Advances received
Accounts payable - other

10,465,132
6,633,915

10,731,012
7,049,617

Income taxes payable
Accrued consumption taxes

371,855
929,147

486,0221,030,794

Provision for bonuses
Asset retirement obligations

796,8836,200

835,796–

Other

1,386,964

1,454,639

Total current liabilities

22,903,416

24,153,424

4,006,407–

4,389,013
1,400

Provision for retirement benefits for directors (and otherofficers)

421,117457,768

Asset retirement obligations
Other316,761
217,783

345,146
245,494

Non-current liabilities
Long-term loans payable
Deferred tax liabilities

Total non-current liabilities

4,962,069

5,438,823

27,865,486

29,592,248

Shareholders' equity
Capital stock

1,299,900

1,299,900

Capital surplus
Retained earnings

809,900
7,735,653

809,900
8,682,602

Total liabilities
Net assets

Treasury shares(66,392)(66,794)

9,779,060

10,725,608

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(124)(5,735)(637)(5,714)

Total accumulated other comprehensive income(5,860)(6,351)

9,773,200

10,719,257

37,638,687

40,311,505

Total shareholders' equity
Accumulated other comprehensive income

Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Net sales

78,763,428

84,313,286

Cost of sales

56,934,997

61,173,073

Gross profit

21,828,431

23,140,213

Selling, general and administrative expenses

19,932,809

21,028,826

Operating profit

1,895,621

2,111,386

Non-operating income
Interest income

8,077

10,377

Dividend income
Examination fee

1,899
28,540832
26,580

Reversal of allowance for doubtful accounts
Subsidy income–39,450

28,367
24,333

Other71,965

74,405

Total non-operating income

149,933

164,896

Interest expenses
Provision of allowance for doubtful accounts

15,3007,560

14,521–

Settlement package
Other12,146
11,424

77,21012,147

Total non-operating expenses

46,431

103,879

1,999,122

2,172,403

Gain on sales of investment securities–

41,673

Total extraordinary income–

41,673

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

318
3,777

23,104–

Impairment loss

68,526

148,001

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses

Total extraordinary losses

72,622

171,105

1,926,500

2,042,970

Income taxes - current

758,632

894,057

Income taxes - deferred

36,790(68,870)

Profit before income taxes

Total income taxes

795,423

825,186

Profit1,131,076

1,217,783

Profit attributable to owners of parent

1,131,076

1,217,783

5

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, 2018

March 31, 2019

1,131,076

1,217,783

145(338)(512)
21(192)(491)

1,130,884

1,217,292

1,130,884

1,217,292––

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, 2018
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

1,299,900

Retained earnings

809,900

6,805,824

Treasury shares(66,314)

Total shareholders'equity
8,849,310

Changes of items during period
Dividends of surplus(201,248)(201,248)

Profit attributable to ownersof parent

1,131,076

1,131,076

Purchase of treasury shares

(78)

(78)

Change of scope ofconsolidation
Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period––

929,828(78)

929,749

1,299,900

809,900

7,735,653(66,392)

9,779,060

Accumulated other comprehensive income
Valuation difference on
Foreign currency
available-for-saletranslation adjustment
securities
Balance at beginning of current
period(270)(5,397)

Total accumulated
other comprehensive
income(5,667)

Total net assets

8,843,643

Changes of items during period
Dividends of surplus(201,248)

Profit attributable to ownersof parent

1,131,076

Purchase of treasury shares(78)

Change of scope ofconsolidation
Net changes of items otherthan shareholders' equity

145

(338)

(192)

(192)

Total changes of items during
period

145

(338)

(192)

929,557

Balance at end of current period(124)(5,735)(5,860)9,773,200

7

Fiscal year ended March 31, 2019
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

1,299,900

Retained earnings

809,900

7,735,653

Treasury shares(66,392)

Total shareholders'equity9,779,060

Changes of items 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 of scope ofconsolidation(42,391)(401)(42,391)

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current 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 current
period(124)(5,735)

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

9,773,200

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

Profit attributable to ownersof parent

1,217,783

Purchase of treasury shares(401)

Change of scope ofconsolidation(42,391)

Net changes of items otherthan shareholders' equity(512)

21(491)(491)

Total changes of items during
period(512)21(491)

946,056

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

10,719,257

8

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, 2018

March 31, 2019

1,926,500

2,042,970

Depreciation
Impairment loss

813,792
68,526

838,418
148,001

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

88,783
9,092

100,803(35,784)

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

38,272

38,91240,34936,276

12,146

77,210Interest and dividend income
Interest expenses(9,976)15,300(11,209)
14,521

Loss on retirement of non-current assets
Loss (gain) on valuation of investment securities

318
3,777

23,104–

Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable - trade–(317,656)(41,673)(245,752)

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade29,285(49,502)(86,563)
57,823

Increase (decrease) in advances received
Increase (decrease) in accounts payable - other(353,775)
1,137,608

270,509
158,751

Increase (decrease) in accrued consumption taxes
Other, net(78,147)(5,961)

88,462
74,113

3,368,734

3,548,898

Interest and dividend income received
Interest expenses paid

9,809
(15,474)

7,559(14,673)

Settlement package paid
Income taxes (paid) refund(12,146)(811,639)(76,449)(772,730)

Net cash provided by (used in) operating activities

2,539,284

2,692,604(929,571)(617,023)(445,444)(400,092)(654,550)(2,520)––87,50014,760

Payments for guarantee deposits
Proceeds from collection of guarantee deposits(163,856)
175,632(105,352)
60,719Payments of loans receivableCollection of loans receivable(325,414)
114,520(162,666)
23,043

Subsidy income
Other, net

155,833(39,674)

144,000
1,985(1,858,067)(1,210,105)

directors (and other officers)
Settlement package

Subtotal

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Collection of investments in capital

Net cash provided by (used in) investing activities

9(Thousands of yen)

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

Fiscal year ended

Fiscal year ended

March 31, 2018

March 31, 201930,00010,0003,200,000(2,064,529)

2,800,000(2,232,993)

Cash dividends paid
Other, net(201,248)(2,709)(228,442)(401)

Net cash provided by (used in) financing activities

961,513348,162

Proceeds from long-term loans payable
Repayments of long-term loans payable

Effect of exchange rate change on cash and cash equivalents

4,900(3,851)

Net increase (decrease) in cash and cash equivalents

1,647,630

1,826,809

Cash and cash equivalents at beginning of period

16,814,135

18,461,766

–

6,420

18,461,766

20,294,996

Increase in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents at end of period10