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 Six Months Ended September 30, 2019
(Based on Japanese GAAP)
November 14, 2019
Company name:
Human Holdings Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

2415
URL https://www.athuman.com/
Representative Director, President and CEO Tomonari Sato

Inquiries:
Director, Corporate Planning DivisionScheduled date to file Quarterly Securities Report:

Yasuhiro SatoNovember 14, 2019

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

Holding of quarterly 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 six months ended September 30, 2019 (from April 1, 2019 to September 30, 2019)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2019
Six months ended September 30, 2018

Millions of yen
42,585
41,527

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
2.5
963
10.8
992
15.1
430 (15.4)
7.4
869 (11.1)
862 (16.3)
508 (17.6)

Earnings per share

Diluted earnings per share

Yen
39.56
46.74

Six months ended September 30, 2019
Six months ended September 30, 2018

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2019
As of March 31, 2019

Net assets

Millions of yen
38,27440,311Equity ratio

Millions of yen
10,904
10,719%28.5
26.6

2. Cash dividends
Annual dividends per share

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
22.50

Yen
22.50

–

24.00

24.00

Year ending March 31, 2020 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
89,909
6.6
2,283
8.2
2,273
4.7
1,291
6.0
118.681

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2019(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) 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:

No
No

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

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2019

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 September 30, 2019

109,159 shares As of March 31, 2019

109,159 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 201910,878,041 shares Six months ended September 30, 20182

10,878,233 shares

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

As of September 30, 2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade20,294,9969,502,787

19,234,795
8,806,039

Merchandise
Supplies

611,639
21,671

558,508
26,191Other
Allowance for doubtful accounts

940,283(6,550)834,976(6,340)31,364,828

29,454,171

3,366,426

3,265,294

Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill

125,252

94,972

Other

1,401,422

1,431,111

Total intangible assets

1,526,674

1,526,083

Guarantee deposits
Other

2,195,043
1,987,441

2,219,344
1,947,692

Allowance for doubtful accounts(128,909)(137,965)

Total investments and other assets

4,053,575

4,029,070

8,946,676

8,820,449

40,311,505

38,274,620

259,787
260,000

220,298
300,000

Current portion of long-term borrowings
Advances received

2,045,755
10,731,012

2,370,496
9,604,270

Accounts payable - other
Income taxes payable

7,049,617
486,0225,254,254
389,214

Provision for bonuses
Asset retirement obligations

835,796–876,192
1,395

Other

2,485,433

2,207,677

Total current liabilities

24,153,424

21,223,800

4,389,013

5,069,568

457,768

478,616

345,146

346,064

246,894

252,304

Investments and other assets

Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings

Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors (and otherofficers)
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

3

5,438,823

6,146,554

29,592,248

27,370,354

(Thousands of yen)
As of March 31, 2019

As of September 30, 2019

Net assets
Shareholders' equity
Share capital

1,299,900

1,299,900

Capital surplus
Retained earnings

809,900
8,682,602

809,900
8,868,131

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

10,725,608

10,911,137(637)(5,714)(1,097)(5,773)

Total 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(6,351)(6,871)

10,719,257

10,904,266

40,311,505

38,274,620

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)

Net sales
Cost of sales

Six months ended

Six months ended

September 30, 2018

September 30, 2019

41,527,980
30,100,013

42,585,203
30,845,726

Gross profit

11,427,966

11,739,476

Selling, general and administrative expenses

10,558,043

10,775,847

869,922963,628

Interest income
Dividend income

4,860
821

5,727
106

Compensation income
Subsidy income

1,204
8,294

22,273
1,717

Other53,940

37,622

Total non-operating income69,121

67,447

Interest expenses
Settlement package

7,052
61,677

6,983
3,114

Loss on abandonment of supplies
Provision of allowance for doubtful accounts

1,721
–

9,313
8,839

Other

6,557

10,329Operating profit
Non-operating income

Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries and associates

77,01038,580862,034

992,495

–

196

–

196

5,400

7,253––

13,706
46,122

Impairment loss

2,506

62,007

Total extraordinary losses

7,906

129,089

Profit before income taxes

854,127

863,601

Income taxes

345,723

433,316

Profit508,403430,284

Profit attributable to owners of parent

508,403430,2845

Consolidated statements of comprehensive income (cumulative)(Thousands of yen)

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

Six months ended

Six months ended

September 30, 2018

September 30, 2019

508,403430,284480
171(460)(58)

652(519)

509,055

429,765

509,055

429,765––

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

6

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Settlement package
Loss (gain) on valuation of investment securities
Loss on valuation of shares of subsidiaries and associates
Loss on retirement of non-current assets
Gain on sales of non-current assets
Compensation income
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Interest and dividend income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in advances received
Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividends received
Interest paid
Settlement package paid
Proceeds from compensation
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Payments of guarantee deposits
Proceeds from refund of guarantee deposits
Loan advances
Collection of loans receivable
Subsidy income
Payments for acquisition of businesses
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from inclusion ofsubsidiaries in consolidation
Cash and cash equivalents at end of period

7

Six months ended

Six months ended

September 30, 2018

September 30, 2019854,127
397,090
2,506
50,401
61,677––
5,400–(1,204)(6,615)55,787

863,601
428,974
62,00742,885
3,114
13,706
46,122
7,253(196)(22,273)
8,853
40,396

18,62820,847(5,682)
7,052
754,338(97,286)
80,264(1,131,784)
142,165
236,695
1,423,563
4,078(7,365)(8,480)1,204(410,910)
1,002,089(5,834)
6,983
701,153
44,424(39,489)(1,124,995)(1,502,900)(256,255)(661,619)
7,138(7,074)(3,587)1,273(575,726)(1,239,596)(340,563)(197,984)(2,520)(23,915)
21,919(93,229)
11,054
144,000–
2,206(479,033)(350,532)(361,272)(4,338)(29,330)
12,138(25,268)
37,395135,000(33,399)
196(619,410)

160,000
2,500,000(1,110,292)(228,442)(3)
1,321,262(2,150)1,842,167
18,461,766

40,0002,150,000(1,144,704)(244,755)–
800,540(1,733)(1,060,201)
20,294,996

6,420

–

20,310,353

19,234,795