Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2020
[Japanese GAAP]May 15, 2020

Company name: QUICK CO., LTD.
Listing: First Section, Tokyo Stock Exchange
Stock code:
4318
URL: https://919.jp/
Representative: Tsutomu Wano, Chairman
Contact:
Yasuhiko Hirata, Director, Executive Officer,
General Manager of Administration and Accounting Division
Tel: +81-6-6366-0919
Scheduled date of Annual General Meeting of Shareholders:June 26, 2020
Scheduled date of filing of Annual Securities Report:
June 26, 2020
Scheduled date of payment of dividend:
June 29, 2020
Preparation of supplementary materials for financial results:
Yes
Holding of financial results meeting:None(All amounts are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2020 (April 1, 2019 – March 31, 2020)(1) Consolidated results of operations(Percentages represent year-on-year changes.)
Net sales
Millions of yen

Operating profit%

Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen

Fiscal year ended Mar. 31, 2020
21,0359.7
2,930 13.5
Fiscal year ended Mar. 31, 201919,173 14.3
2,581 17.4
Note: Comprehensive income (millions of yen) Fiscal year ended Mar. 31, 2020:
Fiscal year ended Mar. 31, 2019:%

Millions of yen

3,009
6.8
2,818 22.5
1,952 (down 3.6%)
2,025 (up 12.4%)

2,074
1,966

%

5.5
20.8

Net income per
Diluted net
Ordinary profit to Operating profit
Return on equity
share
income per sharetotal assets
to net sales
%
%
%
Yen
Yen
Fiscal year ended Mar. 31, 2020
110.05
23.3
23.0
13.9
Fiscal year ended Mar. 31, 2019104.40
25.7
24.5
13.5
Reference: Equity in earnings of affiliates (millions of yen): Fiscal year ended Mar. 31, 2020: - Fiscal year ended Mar. 31, 2019: -(2) Consolidated financial position

Total assets

Net assets

Millions of yen

Millions of yen

Shareholders’ equity ratio Net assets per share

As of Mar. 31, 2020
13,5589,464
As of Mar. 31, 201912,592
8,358
Reference: Shareholders’ equity (millions of yen)
As of Mar. 31, 2020:
9,459(3) Consolidated cash flows

Fiscal year ended Mar. 31, 2020
Fiscal year ended Mar. 31, 2019

Cash flows fromoperating activities

Cash flows frominvesting activities

2,463
2,354

(392)
(332)

Millions of yen

2. Dividends

Yen

Yen

Yen

Millions of yen

Millions of yen

Total
dividends

Dividends to
net assets(consolidated)

(990)
(746)

Dividend per share
Yen

Yen

502.19443.19Cash flows from
Cash and cash equivalents
financing activities
at end of period

Millions of yen

1Q-end 2Q-end 3Q-end Year-end

%

69.8
66.4
As of Mar. 31, 2019: 8,357

Total

Yen Millions of yen

7,415
6,334

Payout ratio(consolidated)%%

Fiscal year ended Mar. 31, 2019
19.00
23.00
42.00
792
40.2
10.3
Fiscal year ended Mar. 31, 2020
22.00
23.00
45.00
848
40.9
9.5
Fiscal year ending Mar. 31, 2021
(forecasts)
The dividend forecast for the fiscal year ending March 31, 2021 has not yet been determined as it is difficult to reasonably
determine the earnings forecast at this time. The dividend forecast will be disclosed promptly once it becomes possible todisclose the earnings forecast.

3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2021 (April 1, 2020 – March 31, 2021)

The consolidated earnings forecast for the fiscal year ending March 31, 2021 has not yet been determined at this time as it isdifficult to make a reasonable calculation of impacts from the COVID-19 pandemic. It will be disclosed promptly once it becomes
possible to make a reasonable calculation of earnings forecast, while closely monitoring the trend of the COVID-19 going forward.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): Yes
Newly added: 2 (Kronos Co.,LTD., QHR Recruitment Co.,Ltd)

Excluded: -(2) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(3) Number of shares outstanding (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Mar. 31, 2020:

19,098,576 shares

As of Mar. 31, 2019:19,098,576 shares

As of Mar. 31, 2019:

241,173 shares

2) Number of treasury shares at the end of the period
As of Mar. 31, 2020:

261,173 shares

3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2020:

18,847,403 sharesFiscal year ended Mar. 31, 2019:18,834,400 shares

Reference: Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2020 (April 1, 2019 – March 31, 2020)(Percentages represent year-on-year changes.)(1) Non-consolidated results of operations
Net sales

Fiscal year ended Mar. 31, 2020
Fiscal year ended Mar. 31, 2019

Fiscal year ended Mar. 31, 2020
Fiscal year ended Mar. 31, 2019

Millions of yen

13,76012,599Operating profit

%

9.2
14.7

Millions of yen

2,246
1,955

Ordinary profit% Millions of yen

14.9
8.5

2,680
2,253

Profit

%

19.0
8.4

Millions of yen

1,837
1,634

%

12.5
5.4

Net income per share Diluted net income per share
Yen
Yen
97.46
86.77
-

(2) Non-consolidated financial position

Total assets
Millions of yen

Net assets

Shareholders’ equity ratio Net assets per share

Millions of yen

As of Mar. 31, 2020
11,074
8,389
As of Mar. 31, 2019
10,424
7,524
Reference: Shareholders’ equity (millions of yen):
As of Mar. 31, 2020:

%

8,389

75.7
72.2
As of Mar. 31, 2019:

Yen

444.87399.00
7,524* The current financial report is not subject to audits by certified public accountants or accounting firms.
* Explanation of appropriate use of earnings forecasts, and other special items
Cautionary statement with respect to forward-looking statements
Forecasts and forward-looking statements in these materials are based on assumptions judged to be valid and information
available to the Company’s management at the time the materials were prepared. These materials are not promises by theCompany regarding future performance. Actual results may differ significantly from these forecasts for a number of reasons.
For discussion of the assumptions and other factors considered by the Company in preparing the above projections, please referto page 4 of the attachments “1. Overview of Results of Operations (4) Outlook.”QUICK CO., LTD. (4318) Financial Results for FY3/20

1. Overview of Results of Operations(1) Results of Operations
During the fiscal year ended March 31, 2020 (“the fiscal year under review”), the Japanese economy continued
recovering at a moderate pace, backed mainly by improvements in the employment and income environment,
although corporate earnings showed a sign of weakness, primarily in the manufacturing sector. However, there
have been growing concerns about an economic slowdown. A number of factors includes consumer spending
turndown impacted by the consumption tax hike implemented in October 2019, the slowdown in overseas
economies caused by the uncertain international situation such as the trade friction between the U.S. and China,
and stagnation of economic activities due to the spread of COVID-19 infection from the fourth quarter andonwards.
In Japan’s labor market, a shortage of workers is becoming even more severe in several sectors because ofstructural factors such as declines in the labor force and the working-age population caused by the declining
birthrate and aging population. The employment-related indicators in March 2020 reflected Japan’s labor shortage.
Among others, the seasonally adjusted job openings-to-applicants ratio was 1.39 and the seasonally adjusted
unemployment rate was 2.5%. However, corporate recruiting needs have been lately declining, against backdropof the spread of COVID-19 infection that led to the drop of the manufacturing industry’s occupancy rate, andbusiness hours shortenings or self-restraints of the business operations in restaurant, retail, and service industries.
Given this business environment, the QUICK Group expanded operations in new strategic market sectors,
developed new services and strengthened coordination between the group companies as well as continued
reinforcing the existing services. All of these activities are aimed at differentiating the QUICK Group fromcompetitors and increasing customer satisfaction by helping solve recruiting and other labor-related problems atclient companies. Furthermore, the QUICK Group has been building a stronger foundation for business operations
by aggressively recruiting people with outstanding skills and making other investments in human resources.
From the fiscal year under review, Kronos Co.,LTD., has been included in the scope of consolidation due to theacquisition of its shares. As a result, the Internet-Related Business included in “Other” in the segment information
has been renamed to the IT & Internet-Related Business, and the company has been included in this businesscategory. We also newly established Shanghai Quick Human Resources CO., LTD. in China, QHR Holdings Co.,
Ltd. and QHR Recruitment Co.,Ltd., both in Kingdom of Thailand (hereinafter “Thailand”), which are now
included in the scope of consolidation as part of the Overseas Business.
As a result, we achieved 10th consecutive year of sales and earnings growth, both reaching all-time highs. Net
sales increased 9.7% year-on-year to 21,035 million yen, operating profit increased 13.5% year-on-year to 2,930
million yen, ordinary profit increased 6.8% year-on-year to 3,009 million yen, and profit attributable to owners ofparent increased 5.5% year-on-year to 2,074 million yen.
Performance of the business segments (consisting of reportable segments and other businesses) is described asfollows.
(Human Resources Services Business)
1) Personnel Placement
The personnel placement category enjoyed strong recruiting needs in the construction and civil engineering sector
as well as in the semiconductor industry that is related to the spread of the fifth-generation (5G) mobile
communication systems. On the other hand, some companies showed cautious attitude toward recruiting in viewof the U.S.-China trade friction and some companies suspended or postponed their hiring activities, getting closer
to the end of the fiscal year due to the impact of COVID-19. In such circumstance, our efforts including focusing
on selected categories and strengthening our sales activities resulted in steady expansion in the placements ofprofessionals and technical staff to general companies. The personnel placement business for nurses at hospitals,
nursing care facilities and other health care facilities also is still enjoying vigorous recruiting needs. However, ourcompetitive environment has become ever more severe in response to the competition against other companies for
obtaining job applicants with emergence of a new recruiting service, such as job search engine and contingent fee
based media. Under this situation, the category enjoyed favorable results, thanks to our effective promotional
activities, enhancement of the contents of our website, provision of better support for the registrants, and newcustomer cultivation focusing clinics and others.
1

QUICK CO., LTD. (4318) Financial Results for FY3/20

2) Temporary Staffing, Temporary-to-Permanent Staffing and Business Contracting
In the temporary staffing, temporary-to-permanent staffing and business contracting categories, the temporary
staffing of nurses and childcare workers continued to show a favorable performance given the vigorous recruitingneeds in the medical and welfare sectors, thanks primarily to effective promotions to attract registrants althoughsome temporary staff took a day off due mainly to temporary closure of the schools caused by COVID-19 in the
fourth quarter. The part-time staff placement also expanded the business, mainly in highly specialized IT &Internet-Related jobs as well as clerical jobs, though number of working days of temporary staff tended todecrease due to the effect of the spread of COVID-19 infection, yet backed by increasing awareness among
companies of benefits of using a part-time staffing service with fewer working days and working hours amid thesituation where hiring regular employees and securing full-time temporary staff are difficult as a result of the
improving employment situation.
Overall, the segment sales increased 14.9% year-on-year to 13,217 million yen and operating profit also increased
25.4% year-on-year to 2,487 million yen.
(Recruiting Business)
In the Recruiting Business, under the continuing student-dominant seller’s market in the new college graduate
category, the volume of business had remained favorable in the field of advertisements posted on our internshipwebsite and recruiting events, targeting students who will graduate in March 2021. However, in the fourth quarter,
the segment sales decreased mainly because all the events such as joint information meetings scheduled in March
were cancelled, impacted by the spread of COVID-19 infection. Meanwhile, in the mid-career hiring domain, we
enjoyed a significant growth of the job placement service under the “Indeed” brand, which started handling at fullscale in the previous fiscal year against the backdrop of the increasing severity of the labor shortage in Japan.
However, the volume of recruiting advertisements for hiring full-time employees and part-time workers started todecrease toward the end of the fiscal year, primarily due to the suspension or postponement of client companies’
hiring activities due to the spread of COVID-19.
For some of our media for recruiting registration of temporary staff, the amount of sales decreased year-on-year.
This is because, from December 2018, the form of contract was changed from the sales agency contract to thesales outsourcing contract, resulting in the recognition of sales reflecting handling commissions only. However,
we saw a steady increase in gross profit, which is net sales less advertising expenses as cost of services purchase.
Overall, the segment sales decreased 5.7% year-on-year to 3,734 million yen and operating profit decreased
10.1% year-on-year to 901 million yen.
(Information Publishing Business)
In the Information Publishing Business, the performance of lifestyle information magazines and “Iezukuri Navi,”
a housing information magazine, remained almost flat year-on-year. This was because some of our customers
such as restaurant as well as service industries, faced worsening business climate, and needs for sales promotion
decreased due mainly to events cancellation that was caused by lower personal consumption and housing
acquisition demand due to the consumption tax hike last Autumn as well as effects of COVID-19 since the fourth
quarter onwards. On the other hand, the volume of business of “Indeed,” which started in the second half of theprevious fiscal year, remained favorable given the vigorous recruiting needs caused by personnel shortages.
In the services other than media, sales from posting services including flyers inserted in newspapers remainedsolid, but the performance started to slow down from March due to COVID-19. Meanwhile, the concierge
services we operate under the “cococolor” brand continued to grow in all of the service lines of job change, house
designing and wedding.
Overall, the segment sales increased 5.7% year-on-year to 2,093 million yen and operating profit increased 10.4%
year-on-year to 196 million yen.

2

QUICK CO., LTD. (4318) Financial Results for FY3/20(Other businesses)
1) IT & Internet-Related BusinessIn the IT & Internet-Related Business category, advertising revenue from “Nihon no Jinjibu” (Japan’s Human
Resources Department), an information portal site for human resources and labor relations remained favorable.
This was as a result of continuing strong interest in HR solution businesses that support corporate clients’personnel strategies including recruiting, human resources development and establishment of human resources
systems, which compensated the decrease of advertisement volume mainly for group trainings caused by
COVID-19 since February. In this situation, a HR related event, “HR Conference” held for seven days in May andNovember 2019 hit a record high in the annual total number of visitors and revenue, which contributed to thehighest-ever earnings of iQ CO., LTD. (currently “HR Vision Co., Ltd.”) that operates business of “Nihon no
Jinjibu.”
Kronos Co.,LTD., which became a consolidated subsidiary in October 2019, increased its sales as a result ofreceiving new contracts for outsourced system development services, AI-related training and other services.
Simultaneously, the company already started preparation including textbooks for new employee trainings by theclients scheduled intensively in April to June 2020, and therefore, incurred some upfront costs such as expenses
for hiring staff for the purpose. Under these circumstances, anticipating the effects of COVID-19, we are striving
to maintain business performance by shifting the group trainings to online training at an early stage to prevent
infection and ensure the health and safety of the participants.
2) Overseas Businesses
In the Overseas Business category, the personnel placement business in North and Central America (notably in the
U.S. and Mexico) remained solid for the following reasons. In the U.S., there continued the situation of tightenedlabor visa acquisition for foreigners as well as vigorous activity by local Japanese companies for hiring full-time
Japanese-English bilingual staff. Furthermore, there has been a continuous strong demand for hiring full-time
employees for interpreters and sales staff at the companies in the automobile industry in Mexico. On the other
hand, temporary staffing business results in the U.S. did not reach that of the previous fiscal year because job
seekers were more inclined for full-time regular employment, although it started to expand toward the end of
2019, thanks primarily to increasing orders for event staff.
As for Asia (notably in China and Vietnam), the recruiting consulting services in Vietnam for hiring Japanese andVietnamese by local Japanese companies showed favorable performance, given the solid recruiting needs mainlyin the construction, apparel and IT industries. As for China, we established Shanghai Quick Human Resources
CO., LTD. for personnel placement business in Shanghai in November, 2019. With cooperation of Shanghai
Quick CO., LTD. that has already developed businesses in Shanghai, we worked on establishing businessfoundation to meet with local Japanese companies’ needs for recruiting, labor consulting and education related
business.
In the U.K., the business expanded favorably in domestic personnel placement services within the U.K. as well asinternational personnel placement services for the job changes from the U.K. to European companies. Net sales of
temporary staffing was almost flat on Japanese yen basis, impacted by the foreign exchange rate, but remainedrobust on local currency basis. QUICK GLOBAL CO., LTD., provides support to overseas companies, incurred
some upfront costs to expand the support system for services including provision of trainings for employees
before being assigned abroad and sales support services.
Overall, sales of the Other Businesses segment increased 14.9% year-on-year to 1,990 million yen but operating
profit decreased 18.5% year-on-year to 179 million yen.

3

QUICK CO., LTD. (4318) Financial Results for FY3/20(2) Financial Position
AssetsTotal assets at the end of the fiscal year under review increased 7.7%, or 966 million yen, year-on-year to 13,558
million yen. This was mainly the result of an increase in cash and deposits despite a decrease in investment
securities.
Liabilities
Total liabilities at the end of the fiscal year under review decreased 3.3%, or 138 million yen, year-on-year to
4,094 million yen. This was mainly the result of decreases in accounts payable-other and income taxes payable.
Net assets
Total net assets at the end of the fiscal year under review increased 13.2%, or 1,105 million yen, year-on-year to9,464 million yen. This was mainly the result of an increase in retained earnings due to the booking of profit
attributable to owners of parent. The shareholders’ equity ratio improved 3.4 percentage points from the end of
the previous fiscal year to 69.8%.
(3) Cash Flows
Cash and cash equivalents (hereinafter “net cash”) increased 1,080 million yen from the end of the previous fiscal
year to 7,415 million yen at the end of the fiscal year under review. Outflows included income taxes paid anddividends paid, while inflows included profit before income taxes.
Cash flows by category are as follows.
Cash flows from operating activities
Net cash provided by operating activities increased 4.6% year-on-year to 2,463 million yen. Negative factors
include income taxes paid of 1,090 million yen. Positive factors include profit before income taxes of 3,014
million yen.
Cash flows from investing activities
Net cash used in investing activities increased 18.2% year-on-year to 392 million yen. Negative factors include
purchase of property, plant and equipment and intangible assets of 546 million yen. Positive factors include
proceeds from sales of investment securities of 112 million yen.
Cash flows from financing activities
Net cash used in financing activities increased 32.7% year-on-year to 990 million yen. Negative factors include
dividends paid of 847 million yen.
(4) O utlook
Amid the uncertainty about when the global COVID-19 pandemic will end, there are concerns over a slowdown
in the global economy as a whole, and the Japanese economy is likely to be heavily affected by the slowdown.
While the COVID-19 outbreak has also been causing stagnation in business activities in a wide range of sectors,
declining recruiting sentiment is expected to continue at many companies in restaurant, selling, service and othersectors due to factors such as lackluster corporate earnings and reviews of recruiting plans and activities.
In the Human Resources Services Business, we will further strengthen operations in the existing domains of
personnel placement, such as personnel placement targeting general companies including in the construction andcivil engineering, pharmaceutical, manufacturing and other business sectors and the placement of nurses, as well
as develop the new category of job placements for specialists, in which recruiting needs are less affected bychanges in economic conditions. In addition, we aim to increase the number of registrants for personnel
placements and enhance brand power and reliability of each website by enriching contents on the websites we
operate, improving usability, increasing other promotional activities and cooperation with industry groups in each
4

QUICK CO., LTD. (4318) Financial Results for FY3/20

professional domain.
In the temporary staffing, temporary-to-permanent staffing and business contracting category, we will strengthen
activities involving the medical and welfare sectors that are generally less affected by changes in economic
conditions and have strong recruiting needs. We aim to attract registrants for the temporary staffing of nurses byleveraging expertise and brand power we cultivated in placements of nurses. Furthermore, we plan to hoist oursales efforts for nurses and the healthcare field in the Hokushinetsu region by strengthening the content of thespecialized website for the medical and welfare sectors in the region named “Medicare Career.” For childcare
temporary staffing, we will enhance the content of the dedicated website named “Hoitomo Osaka” for temporary
staffing of childcare professionals and increase promotional activities to attract more registrants, as well as aim to
expand the sales network in the Kansai area by leveraging its brand power.
In the Recruiting Business, in addition to declining recruiting sentiment among client companies due to the
COVID-19 pandemic, some of them have already begun to postpone, scale down or break off their recruiting
activities. Under such circumstances, we will strive to elevate our productivity by reviewing our sales structureand developing customer management tools as well as increase sales by boosting the inside sales. Further, we try
to maintain our operating performance as well as achieve a swift recovery after the end of the COVID-19 crisis
through strengthened consulting sales activities with high added value by providing one-stop support services
ranging from proposing media-agonistic recruitment method and process to addressing follow-up issues after
hiring new employees in response to recruiting challenges our client companies are facing.
In the Information Publishing Business, there is an ongoing uncertainty reflecting diminishing sentiment toward
advertisement placements for sales promotion, event advertising and recruitment purposes due to the COVID-19
pandemic. In such a situation, we will develop a new customer base for lifestyle information magazines andconsequently increase the volume and variety of information of our media, which will make our publishing andwebsites more appealing for users. We will also increase the effectiveness of advertisements and build a new sales
structure by linking them with web services. We aim to augment operating performance by linking media, eventsand concierge (face-to-face consultation) services to increase points of contact between readers or users and clientcompanies in the housing domain, while expanding areas of existing services in the recruitment domain. In theposting business, we will build a stronger foundation for business operations by cultivating new customers andincreasing posting staff. Furthermore, in concierge (face-to-face consultation) services, we will expand priority
domains and service area in order to maintain operating performance as well as achieve a swift recovery after theend of the COVID-19 crisis.
In the IT & Internet-Related Business, the outlook for the handling of advertisements related to “Nihon no
Jinjibu” is expected to be server, reflecting changes in the way to hold and scaling down of “Nihon no Jinjibu”
events, such as “HR Conference” and cancellation of events held by client companies due to the COVID-19
pandemic. Amid such circumstances, we will enhance a penetration of “Nihon no Jinjibu” brand and increasecustomers including rural customers in areas other than the Greater Tokyo Area through boosted promotion torealize the most trusted platform in the Japanese HR domain and attract more active users in order to achieve aswift recovery in operating performance after the end of the COVID-19 crisis.
Meanwhile, in the system development business, we will boost the number of systems we develop by increasing
operational efficiency and accumulate more expertise in outsourced system development services. We also aim to
improve employees’ skill levels and efficiency in system development by focusing on hiring engineers andtraining current employees. In the learning business, amid a situation where it is becoming more difficult to holdon-site group trainings due to the COVID-19 outbreak, we aim to turn our IT training service into asubscription-based service by reusing educational materials we have accumulated over years, while maintaining
operating performance by enriching online-based services, so as to achieve stable performance throughout theyear.
In the Overseas Business, although we are facing difficult times where our business is subject to various
restrictions on sales activities in many countries, such as curfew orders in the United States and the United
Kingdom, due to the COVID-19 pandemic, we will strengthen personnel placement, temporary staffing andpersonnel and labor consulting in each country as soon as such restrictions are lifted. We aim to establish
ourselves as a partner that helps resolve human resources issues at client companies and to reinforce our earnings
base. We also focus on resuming the Cross Border Recruitment services, career change support services for those5

QUICK CO., LTD. (4318) Financial Results for FY3/20

who seek a job internationally.
The consolidated earnings forecast for the fiscal year ending March 31, 2021 has not yet been determined at thistime as it is difficult to make a reasonable calculation of impacts from the COVID-19 pandemic. It will be
disclosed promptly once it becomes possible to make a reasonable calculation of earnings forecast, while closely
monitoring the trend of the COVID-19 going forward.
Risk information concerning the COVID-19 infection
Due to the spread of the COVID-19 infections, the Declaration of State of Emergency was issued in the early
April in Japan, while various measures, including travel restrictions and curfew, are also taken in foreigncountries. Under such circumstances, it is hard to predict when the pandemic will end at this time.
The QUICK Group is also experiencing a decreasing trend in recruiting needs and sales promotion needs of clientcompanies, mainly affected by shortened operating hours, temporary closing and voluntary restraint on events dueto the government’s request or in terms of preventing infections. Such trend is expected to continue until theJapanese economy gets back on a recovery track after the pandemic abates. Therefore, if the COVID-19 crisis
causes further severe and prolonged impacts on the economy in the future, it may affect the Group’s businessactivities, operating results and financial position.
If infected with COVID-19, such individuals are subject to a risk of critical deterioration in symptoms and also arisk of not being able to engage in business as they are required to be isolated and receive medical care for a longtime. Accordingly, the Group is switching to teleworking for most employees to ensure their health and safety as
well as our business continuation. However, as it stands now, it is impossible to fully eliminate the infection risk.
Therefore, if by any chance a COVID-19 infection is discovered within the Company, the Group’s businessactivities, operating results and financial position may be affected due to measures such as closure of office or
temporary shutdown.
Since it remains uncertain when the COVID-19 pandemic will end, it is hard to predict risks other than thosementioned above and ultimate impacts of COVID-19 on our business, such unpredictable factors may affect theGroup’s business activities, operating results and financial position.
(5) Basic Policy for Profit Distribution and Dividends in the Current and Next Fiscal Years
The Company positions the return of profits to shareholders as a priority management issue and endeavors toachieve sustainable growth and increase corporate value.
With regard to the dividends of surplus, we aim to enhance our return of profits and augment shareholders’ value
with a basic policy that adopts 40% of profit attributable to owners of parent as our target dividend payout ratio,
taking into consideration such factors as strengthening our financial base and future business developments.
Based on this dividend policy, for the fiscal year under review we plan to pay a fiscal year-end dividend of 23 yen
per share. Accordingly, we forecast an annual dividend of 45 yen per share, consisting of a dividend of 22 yen at
the end of the second quarter and 23 yen at fiscal year-end.
The dividend for the fiscal year ending March 31, 2021 has not yet been determined as it is difficult to reasonably
determine the earnings forecast at this time. The dividend forecast will be disclosed promptly once it becomes
possible to disclose the earnings forecast.

6

QUICK CO., LTD. (4318) Financial Results for FY3/20

2. Corporate GroupThe QUICK Group (QUICK CO., LTD. and its affiliated companies) consists of QUICK CO., LTD. (theCompany) and 14 consolidated subsidiaries. Business operations are 1) Human Resources Services Business, 2)
Recruiting Business, 3) Information Publishing Business and 4) Other Businesses (IT & Internet-Related
Business and Overseas Business).
A flowchart of the Group’s business operations is as follows.

Note: All of the above 14 affiliated companies are consolidated subsidiaries.
As of April 1, 2020, the Company absorbed and merged with QUICK GLOBAL CO., LTD.
As of April 1, 2020, iQ CO., LTD. changed its trade name to HR Vision Co., Ltd.
7QUICK CO., LTD. (4318) Financial Results for FY3/20

3. Management Policies(1) Basic Management Policy
Since the time of its establishment, the QUICK Group has provided comprehensive human resources services thatlink people and companies. Themed on human resources, we develop business that contributes to society. Goingforward, we will continue to grow as a company that “contributes to society through the human resources andinformation businesses.”
The QUICK Group’s businesses are as described in “2. Corporate Group.” In each of these businesses, the Groupwill strengthen operations in order to respond swiftly to market needs, including those of client companies andjob seekers, and also build up our sales structure. Furthermore, the Group will strive to enhance management
efficiencies through synergistic effects enabled by information sharing and cooperation within the Group.
(2) Performance Targets
While expanding the scale of its operations, the QUICK Group’s policy is to build a profit-oriented organizationthat makes effective use of such business assets as its proprietary sales network and expertise in attracting
registrants who wish to change careers within the Group. Although the Group’s operating results are expected to
decline in the short-term due to economic downturn associated with the COVID-19 pandemic, we aim to achieve
an early recovery by continuing to scale up its operations and realize such profit-oriented organization. In order toattain stable growth and build a robust financial foundation, the Group also aims to increase its ordinary profit
margin and return on equity (ROE) over the medium to long-term.
(3) Medium- and Long-term Management Strategy
The QUICK Group aims to expand its areas of business as a comprehensive human resources services andinformation services company.
To this end, we intend to further strengthen our core Human Resources Services Business. We also aim to achieve
the medium- to long-term growth of the Recruiting Business, Information Publishing Business, IT &Internet-Related Business and Overseas Business.
In each business, we will engage in cultivation of new service domains and development of new products,
services and business models. We will strive to build a sales structure to swiftly meet changing market needs andpursue synergies by strengthening cooperation between businesses.
Furthermore, we aim at realizing the concept of the “Sekai no Jinjibu (Human Resources Department for theworld),” through which we develop global human resources services, by strengthening cooperation between ouroverseas companies and businesses in Japan as well as cultivating the market for international career change
supports (Cross Border Recruitment services), in order to drive our Overseas Business forward.
(4) Issues to Address
Based on its management philosophy of “making everyone involved happy” and its business philosophy of“contributing to society through human resources and information businesses,” the QUICK Group aims to revamp
existing businesses and propose new services. At the same time, we will continue to invest in strategic fields andgrow in these fields with the goal of becoming the leader in these targeted markets. In the global human resourcesbusiness, there are a growing number of Japanese companies that must deal with recruiting and personnel andlabor issues at their overseas operations. In Japan, companies are facing an increasingly severe labor shortage
caused by the country’s falling birthrate and aging population. We will use numerous activities in order toaccomplish our goal of becoming a “Sekai no Jinjibu” that can help solve the recruiting and other HR issues ofcompanies in Japan and other countries.
Furthermore, we will focus more on M&As and hiring and training of outstanding people to promote these goals,
thereby enabling the QUICK Group to grow even faster.
The issues in individual business segments are outlined below.

8

QUICK CO., LTD. (4318) Financial Results for FY3/20(Human Resources Services Business)
1) Personnel placement
In the personnel placement business, human resources companies are competing ever more intensely in orderprimarily to attract registrants for specialized jobs in the construction and civil engineering, pharmaceutical,
manufacturing and other business sectors and also for nursing jobs in the health care and other facilities. To
succeed, we are renewing our websites, including the “Kango-roo!,” with more contents available online to makethem more useful and conducting effective promotional activities. By using a variety of actions, we will increase
the brand power of all our websites and attract more people to register for job placements. In other moves tobecome more competitive as an organization, this business will find new domains of job placements for
specialists, in which competition for attracting registrants is not yet fierce, aggressively recruit talented people
and strengthen personnel development.
2) Temporary staffing, temporary-to-permanent staffing, business contracting and other businesses
In the temporary staffing, temporary-to-permanent staffing, business contracting and other businesses, we haveseen a decline in demand for human resources in some domains due to the COVID-19 outbreak. However, we can
expect a continued strong demand for human resources, such as nurses and childcare workers, from our priority
sectors, the medical and welfare sectors, along with an aging society and increasing women’s participation insociety associated with work style reforms. Due to a growing tendency for job seekers to be hired as a full-time
employee as well as an intensifying competition with competitors, our challenge here is to acquire new registrants
who wish to work as temporary staff. In order to attract more people to register for temporary staffing placements,
we will strive to strengthen promotional activities on and add more contents to our Group’s websites consisting“Medicare Career” targeting temporary workers in the medical and welfare sectors, and “Hoitomo Osaka”
targeting temporary childcare workers so that each website can draw more people to it with enhanced brand power,
while working on expanding the market penetration of temporary staffing services in coordination with thepersonnel placement business for nurses.
(Recruiting Business)
In the Recruiting Business, the competitive environment for the handling of recruiting advertisements is being
intensified due to diversified hiring methods, including search engine type recruiting ads, contingent fee based
recruiting ad services and personnel placements, in addition to a more intensified competition for media that theCompany handles. Furthermore, since there are some companies that have decided to suspend or postpone their
recruiting activities due to the COVID-19 outbreak, the business environment has changed drastically from it was
before the outbreak, when the recruiting needs were strong. In response to such circumstances, we will increase
the accuracy of ideas for recruiting advertisements proposed to client companies by building a system that enable
us to identify the recruiting needs of client companies en bloc. Meanwhile, we will pursue to strengthen
consulting-based sales approach in which we propose multi-perspective services to assist client companies toaddress recruiting challenges they are facing, thereby enhancing their satisfaction. The approach includes
proposals on the optimal recruiting methods and process, thinking outside the box recruiting advertisement, andhelping them produce recruiting tools and implement marketing activities along with such proposals. We will also
strive to develop new customers by creating more connections with potential customers through seminars and thewebsite named “Saiyo Salon,” which introduces our line of services and successful recruiting cases.
(Information Publishing Business)
The Information Publishing Business is facing a decreasing trend in placing advertisements in information
magazines due to a further diversification of advertising techniques represented by the recent development of
website advertisement using SNS and other methods. Furthermore, we are seeing a diminishing sentiment ofclient companies toward advertisement placements in a wide range of sectors, reflecting the COVID-19 pandemic.
To address such circumstances, we deal with diversified needs of client companies, readers and users bycultivating new markets and expanding sales areas of media services as well as by strengthening the linkage withother services such as web services and events. At the same time, we will improve its sales structure, which ishighly dependent on media services represented by life-style information magazines by expanding the service
area of concierge (face-to-face consultation) services and reinforcing sales activities for promoting the utilization
9

QUICK CO., LTD. (4318) Financial Results for FY3/20

of posting services by client companies that have not placed advertisements in our media.
(Other Businesses)
1) IT & Internet-Related BusinessHR solution services provided by human resources service companies are expected to attract more attention
against the backdrop of response to laws related to work style reform, such as equal pay for equal value of work,
necessity of utilizing women and aged people to solve labor shortage and prevalence of HR Tech. Amid suchcircumstances, we will expand our customer base and user base through improvement of brand power byenriching content of services related to “Nihon no Jinjibu” and strengthening their promotion. Through thesemeasures, we will build a sound base for consistent growth of the IT & Internet-Related Business. Moreover, in
response to moves of voluntary restraint on events due to the COVID-19 pandemic, we will meet the needs of
exhibitors and event participants through diversified ways of holding events, such as the live streaming of the“HR Conference.”
In the system development business and the learning business, amid growing demand for hiring engineers due toincreased market value of IT professionals, our challenges are to attract and retain more development engineers
engaged in system development, and create new customers for further earnings expansion. In response to suchcircumstances, we will provide career development support for engineers and increase operational efficiency to
reduce workload by promoting an approach to receive orders for similar development projects to those that wewere engaged in in the past and we have knowhow for such developments. We will also promote information
sharing, collaboration and cooperation in the development business within the Group. In the learning business, wewill deliver such services as online-based training programs for new recruits for corporate customers, developedin consideration for COVID-19, live streaming of other training programs and seminars and fixed-rate IT training
services utilizing existing contents. Through these initiatives, we will strive more than ever to cultivate newcustomers and increase the satisfaction of existing customers.
2) Overseas BusinessIn the United States, the employment situation is rapidly deteriorating due to the COVID-19 pandemic. In
addition, we expect that the country will continue to be a seller’s market for legal foreign workers because ofstricter rules by the government for granting and renewing working visa for foreigners even after the COVID-19
issues are solved. We therefore expect that the competitive environment with competitors will not change for thetime being. To address such situations, we will work on increasing recognition in the United States throughcultivation of new markets by opening new offices and distributing personnel and labor related information for
local Japanese companies. We will also strive to get involved in more recruiting service deals and acquireregistrants to ultimately expand our business foundation by sharing information and coordinating sales activities
between offices in different countries across the Group.
In China, there are an increasing number of issues involving labor relations at the local Japanese companies. Also,
there is a steadily growing need for personnel and labor consulting services, such as for measures to address
issues arising at the time of the COVID-19 outbreak. In response to such circumstances, we will build up sales
and service structure at Shanghai Quick CO., LTD. by recruiting and training QUICK’s own workforce to provide
more companies with comprehensive support extending from solving client companies’ recruiting and personnel
and labor issues to employee education programs. Consequently, we will enhance our credibility andcompetitiveness as a company providing a personnel and labor consulting service. As the timing of full-scalelaunch of Shanghai Quick Human Resources CO., LTD. was delayed due to the COVID-19 outbreak, we will
focus on building an operating structure, such as building of workflows, recruitment and training of personnel andenhancement of brand penetration for the time being.
In Mexico, there is an uncertainty about the outlook for demand for human resources services in our main
customer base, the domestic automobile industry, due to the COVID-19 pandemic. In response to this situation,
we will raise sales capabilities through recruiting and training for QUICK’s own workforce. We also aim to attract
a number of new registrants and win more recruiting deals by upgrading contents of the website we operate,
strengthening promotional activities and promoting cooperation between offices in different countries across theGroup.
10

QUICK CO., LTD. (4318) Financial Results for FY3/20

In the United Kingdom, heavy constraints on business activities due to the outbreak of COVID-19, such as issueof curfew, may also have negative impact on the domestic demands for workers. To address this situation, we will
accelerate our efforts to cultivate new customers and capture job offers covering a wide variety of positions bystepping up our approach to Japanese firms, local firms and the like in European countries. We also continue
focusing on attracting registrants by enriching contents of websites we operate and strengthening promotional
activities. Through such initiatives, we will establish a stronger business base to put the international careerchange supports (Cross Border Recruitment services) for European countries on track to success after the
COVID-19 issues are solved.
In Vietnam, new market entry by Japanese companies has plateaued against the backdrop of COVID-19-related
regulations by the government, including travel restrictions on foreigners and suspension of new visa issuance.
The demand for hiring Japanese workers by local Japanese companies is also slowing down. To address thesecircumstances, we will establish a stronger business base to further reinforce our core recruitment support
services after the COVID-19 issues are solved through such efforts as increasing Japanese and Vietnamese
registrants by accelerated web promotions,.
In Thailand, we established subsidiaries in January 2020 and obtained a license for personnel placement services
in March 2020. Since the commencement of operations, their sales actives have been stalled due to thecontracting hiring market and prolonged decision-making of client companies reflecting the promotion of
telework by the government because of the COVID-19 outbreak. In response to these situations, we will work on
conducting marketing activities in our priority sectors, building a website to attract registrants and training
QUICK’s own workforce so as to get off to a smooth restart of sales activities after the COVID-19 issues are
solved.
In Japan, the Company will take a central role in supporting these overseas subsidiaries in their sales activities.
We aim to accomplish our goal of becoming “Sekai no Jinjibu,” which is our group vision, a Human Resources
Division that can help solve the labor issues of companies in Japan and other countries, through building abusiness model by which overseas group companies can collaborate to develop human resources services.
4. Basic Approach to the Selection of Accounting Standards
The Group will continue to prepare its consolidated financial statements in accordance with Generally Accepted
Accounting Principles in Japan for the time being to permit comparisons with prior years and with the financial
data of other companies.
We will take suitable actions with regard to the application of International Financial Reporting Standards (IFRS)
by taking into account associated factors in Japan and other countries.

11

QUICK CO., LTD. (4318) Financial Results for FY3/20

5. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet
FY3/19(As of Mar. 31, 2019)(Thousands of yen)
FY3/20(As of Mar. 31, 2020)

AssetsCurrent assets
Cash and deposits

6,364,521

7,469,166

Notes and accounts receivable-trade

2,061,682

2,139,732

Other621,235

423,453

Allowance for doubtful accounts(2,010)(2,081)

9,045,428

10,030,271

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

1,559,302

1,634,193

Accumulated depreciation(693,773)(754,873)

Buildings and structures, net

865,528

879,320

10,62010,684(4,145)(5,811)

VehiclesAccumulated depreciation
Vehicles, net

6,474

4,872

Tools, furniture and fixtures

241,698

273,954

Accumulated depreciation(140,114)(174,074)

Tools, furniture and fixtures, net

101,584

99,880276,869

276,869

Land
Leased assets

18,92615,150

Accumulated depreciation(8,064)(7,789)Leased assets, net

10,862

7,360

1,261,318

1,268,302

Software151,609367,856

Software in progress

80,27474,851

Goodwill

118,858

74,846

Other

10,646

10,659Total intangible assets

361,389

528,213

Investment securities

1,154,136

926,517

Leasehold deposits

626,310656,096

Deferred tax assets

62,954

100,388

Total property, plant and equipment
Intangible assets

Investments and other assets

Other

84,60552,152

Allowance for doubtful accounts(3,843)(3,433)

Total investments and other assets

1,924,162

1,731,721

Total non-current assets
Total assets

12

3,546,870

3,528,237

12,592,299

13,558,509

QUICK CO., LTD. (4318) Financial Results for FY3/20(Thousands of yen)
FY3/20(As of Mar. 31, 2020)

FY3/19(As of Mar. 31, 2019)
Liabilities
Current liabilities
Accounts payable-trade545,634

492,927

Short-term borrowings

189,902

192,502

Accounts payable-other

1,115,052

838,432

Accrued expenses

520,136562,217

Lease obligations

3,491

2,825

Income taxes payable

646,929552,213

Accrued consumption taxes

292,621349,522

Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for repayment

475,298571,21162,45042,00018,20020,600679-

Asset retirement obligations
Other
Total current liabilities

199,981351,751

4,070,375

3,976,203

Non-current liabilities
Lease obligations

7,629

4,803

Deferred tax liabilities

65,288

7,530

Asset retirement obligations

86,83098,011

Other

3,369

7,959

163,117

118,304

4,233,493

4,094,508

Share capital

351,317351,317

Capital surplus

391,392

391,392

Retained earnings

6,968,762

8,194,756

Treasury shares(14,965)(16,005)

Total shareholders’ equity

7,696,505

8,921,459

661,606

537,307

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
Non-controlling interests
Total net assets
Total liabilities and net assets

13

(707)

1,134

660,899

538,441

1,401

4,099

8,358,806

9,464,000

12,592,299

13,558,509

QUICK CO., LTD. (4318) Financial Results for FY3/20(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income
FY3/19(Apr. 1, 2018 – Mar. 31, 2019)(Thousands of yen)
FY3/20(Apr. 1, 2019 – Mar. 31, 2020)

19,173,142

21,035,714

Net sales
Cost of sales

7,531,491

8,115,876

Gross profit

11,641,650

12,919,837

Selling, general and administrative expenses

9,060,203

9,989,245

Operating profit

2,581,447

2,930,592

Non-operating income
Interest income

170

1,031

Dividend income

12,35912,391

Sale cooperation fee

9,000

46,000Subsidy income

198,117-

Other

22,21427,901

Total non-operating income

241,861

87,324Non-operating expenses
Interest expenses
Foreign exchange losses
Commission expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities

1,979

2,222

2,421

4,626

-

730

478

383

4,879

7,962

2,818,428

3,009,953-

63,338Gain on step acquisitions-

14,025

Total extraordinary income-

77,363

2,539

12,965Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Total extraordinary losses
Profit before income taxes-

60,114

2,539

73,0802,815,889

3,014,237

Income taxes-current

936,436

968,788

Income taxes-deferred(87,333)(29,466)

Total income taxes

849,102939,322

1,966,786

2,074,914

501

777

1,966,284

2,074,137

ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

14

QUICK CO., LTD. (4318) Financial Results for FY3/20

Consolidated Statement of Comprehensive Income
FY3/19(Apr. 1, 2018 – Mar. 31, 2019)(Thousands of yen)
FY3/20(Apr. 1, 2019 – Mar. 31, 2020)

1,966,786

2,074,914

74,821(124,299)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

15(15,668)

1,910

59,152(122,388)

2,025,939

1,952,526

2,025,770

1,951,679

168

846

QUICK CO., LTD. (4318) Financial Results for FY3/20(3) Consolidated Statement of Changes in Equity
FY3/19 (Apr. 1, 2018 – Mar. 31, 2019)(Thousands of yen)
Shareholders’ equity

Share capital
Balance at beginning of
periodChanges during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in scope of
consolidation
Change in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period

Balance at beginning of
periodChanges during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in scope of
consolidation
Change in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period

351,317

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity307,998

5,723,382(19,223)

6,363,475(696,464)(696,464)

1,966,284

1,966,284

115,427

(85)

(85)

4,342

119,770(24,439)(24,439)(32,033)(32,033)-

83,393

1,245,380

4,257

1,333,030

351,317391,392

6,968,762(14,965)

7,696,505

Accumulated other comprehensive income
Valuation
Total accumulated
Foreign currency
difference onothertranslation
available-for-salecomprehensive
adjustment
securities
incomeNon-controllinginterests

Total net assets

12,201

6,977,090

586,784

14,629601,413(696,464)
1,966,284(85)
119,770(24,439)(32,033)

74,821(15,336)

59,485(10,800)

48,68574,821(15,336)

59,485(10,800)

1,381,716

661,606(707)

660,8991,401

8,358,806

16

QUICK CO., LTD. (4318) Financial Results for FY3/20

FY3/20 (Apr. 1, 2019 – Mar. 31, 2020)(Thousands of yen)
Shareholders’ equity

Share capital
Balance at beginning of
periodChanges during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in scope of
consolidation
Change in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period

Balance at beginning of
periodChanges during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in scope of
consolidation
Change in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period

351,317

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity391,392

6,968,762(14,965)

7,696,505(848,143)(848,143)

2,074,137

2,074,137(1,040)(1,040)--1,225,993(1,040)1,224,953

351,317391,392

8,194,756(16,005)

8,921,459

Accumulated other comprehensive income
Valuation
Total accumulated
Foreign currency
difference onothertranslation
available-for-salecomprehensive
adjustment
securities
incomeNon-controllinginterests

Total net assets

1,401

8,358,806

661,606(707)

660,899(848,143)
2,074,137(1,040)(124,299)

1,841(122,457)

2,698(119,759)(124,299)

1,841(122,457)

2,698

1,105,194

537,307

1,134

538,441

4,099

9,464,000

17QUICK CO., LTD. (4318) Financial Results for FY3/20(3) Consolidated Statement of Cash Flows(Thousands of yen)
FY3/19FY3/20(Apr. 1, 2018 – Mar. 31, 2019) (Apr. 1, 2019 – Mar. 31, 2020)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors(and other officers)
Increase (decrease) in provision for repayment
Interest and dividend income
Interest expenses
Loss on retirement of non-current assets
Loss (gain) on sales of investment securities
Loss (gain) on step acquisitions
Decrease (increase) in trade receivables
Increase (decrease) in trade payables
Decrease (increase) in leasehold and guarantee deposits
Increase (decrease) in accrued consumption taxes
Other, net

2,815,889
169,508
14,614(6,697)
115,268

3,014,237
179,124
60,114
12,929(340)
82,88862,450(20,450)

1,100(12,529)
1,979
2,539
(42,280)(100,294)(115,463)
58,496870

2,400(13,422)
2,222
12,965(63,338)(14,025)
147,293(39,686)(13,225)
44,986
148,337

Subtotal

2,965,452

3,543,011

Interest and dividends received
Interest paid
Income taxes paid

12,529(1,977)(621,678)

13,422(2,213)(1,090,516)

Net cash provided by (used in) operating activities

2,354,325

2,463,704(202,646)(123,937)(5,595)-(23,883)(261,138)(284,953)(5,686)112,265-

75,900Cash flows from investing activities
Payments into time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Repayments of lease obligations
Purchase of treasury shares
Dividends paid
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents-(5,000)(332,179)(392,496)

1,602(10,172)(85)(695,526)

2,600(141,645)(3,810)(847,399)(42,062)-(746,245)(990,254)(7,386)(183)

Net increase (decrease) in cash and cash equivalents

1,268,514

1,080,769

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period

5,014,883

6,334,521

51,123-

6,334,521

7,415,291

18

QUICK CO., LTD. (4318) Financial Results for FY3/20(5) Notes to Consolidated Financial Statements
Going-concern Assumption
Not applicable.
Segment Information
1. Outline of reportable segments
The reportable segments of the Company are components for which discrete financial information is available andwhose operating results are regularly reviewed by the Board of Directors to make decisions about resource
allocation and to assess performance.
The QUICK Group engages in a diverse range of businesses, including personnel placement and temporary
staffing, providing services related to recruiting advertisement and publishing regional information magazines.
The Company and its consolidated subsidiaries (hereinafter “business operation companies”) are independent
management units that independently draft comprehensive business strategies and develop business activities foreach business.
Accordingly, the QUICK Group is composed of business-specific segments based on the Company’s business
operating structure and business operation companies. The Group has three reportable segments: Human
Resources Services Business, Recruiting Business and Information Publishing Business. Businesses not includedin these reportable segments are categorized as Other Businesses.
Main activities of the Human Resources Services Business include personnel placement, temporary staffing,
temporary-to-permanent staffing, business contracting and nursery school operations. Main activities of the
Recruiting Business include an advertising agency business for recruiting advertisements, provision of recruiting
support tools, education and training and personnel business contracting. Main activities of the Information
Publishing Business include publication of regional information magazines, web promotion support, posting andconcierge (face-to-face consultation) services. The Other Businesses mainly operates the “Nihon no Jinjibu” site,plans and operates events related to the “Nihon no Jinjibu,” supports web promotions, develops web and mobile
applications and develops and trains IT engineers in the IT & Internet-Related Business, while engages inpersonnel placement, temporary staffing, personnel and labor consulting and other services in the United States,
China, Mexico, the United Kingdom, Vietnam and Thailand in the Overseas Business.
2. Calculation method of net sales, profit/loss, assets and other items in each reportable segment
The method of accounting for the reported operating segments is in accordance with the accounting policy
adopted to prepare the consolidated financial statements.
Profits for reportable segments are generally operating profit.
Inter-segment sales and transfers are based on prevailing market prices.

19

QUICK CO., LTD. (4318) Financial Results for FY3/20

3. Information pertaining to net sales, profit/loss, assets and other items in reportable segments
FY3/19 (Apr. 1, 2018 – Mar. 31, 2019)
Reportable Segment

Net sales
Sales toexternalcustomers
Inter-segment
sales andtransfers
Total(Thousands of yen)Amount intheAdjustment consolidated(Note 2)
financialstatements(Note 3)

Human
Resources
Services
Business

Recruiting
Business

Information
Publishing
Business

Subtotal

Other(Note 1)

Total

11,499,956

3,960,734

1,980,252

17,440,943

1,732,198

19,173,142-

19,173,142

1,004

8,019

12,00021,023

26,77447,798(47,798)-

11,500,960

3,968,754

1,992,253

17,461,967

1,758,972

19,220,940(47,798)

19,173,142

Segment profit

1,984,025

1,003,386

178,430

3,165,843

219,751

3,385,594(804,147)

2,581,447

Segment assets

5,758,972

2,292,323

1,146,062

9,197,359

1,300,618

10,497,977

2,094,322

12,592,299

Other items
Depreciation
93,802
4,330
27,028125,160
10,694
135,855
33,653
169,508
Increase inproperty, plantand equipment
379,794
4,310
11,153395,258
6,261
401,51953,881
455,401
and intangible
assets
Notes: 1. Other represents the businesses which are not included in any of the reportable segments and mainly consists ofInternet-Related Business and Overseas Business.
2. Contents of adjustments are as follows.
(1) The (804,147) thousand yen adjustment to segment profit includes elimination for inter-segment transactionsof 143,936 thousand yen, and (948,084) thousand yen in company-wide costs that cannot be allocated to any
specific reportable segments. Company-wide costs consist primarily of expenses related to the administration
division, which are not attributable to any reportable segments, including general affairs and accounting at
the Company.
(2) The 2,094,322 thousand yen adjustment to segment assets includes elimination for inter-segment transactionsof (342,684) thousand yen, and 2,437,006 thousand yen in company-wide assets that cannot be allocated toany specific reportable segments. Company-wide assets consist primarily of the Company’s excess funds(cash and deposits), long-term investments (investment securities), and assets which belong to theadministration division.
(3) The 33,653 thousand yen adjustment to depreciation is the sum of assets which belong to the administration
division that cannot be allocated to reportable segments.
(4) The 53,881 thousand yen adjustment to an increase in property, plant and equipment and intangible assets isthe sum of assets which are not attributable to any reportable segments and belong to the administration
division that cannot be allocated to reportable segments.
3. Segment profit is adjusted with operating profit shown on the consolidated statement of income.

20

QUICK CO., LTD. (4318) Financial Results for FY3/20

FY3/20 (Apr. 1, 2019 – Mar. 31, 2020)
Reportable Segment

Net sales
Sales toexternalcustomers
Inter-segment
sales andtransfers
Total(Thousands of yen)Amount intheAdjustment consolidated(Note 2)
financialstatements(Note 3)

Human
Resources
Services
Business

Recruiting
Business

Information
Publishing
Business

Subtotal

Other(Note 1)

Total

13,217,957

3,734,389

2,093,330

19,045,678

1,990,036

21,035,714-

21,035,714

10,34011,602

11,92633,86822,04055,908(55,908)-

13,228,298

3,745,991

2,105,256

19,079,546

2,012,076

21,091,622(55,908)

21,035,714

Segment profit

2,487,474

901,728

196,954

3,586,157

179,137

3,765,295(834,702)

2,930,592

Segment assets

6,579,327

2,143,406

1,156,063

9,878,797

1,867,489

11,746,286

1,812,222

13,558,509

Other items
Depreciation
111,337
4,392
20,851
136,581
10,590147,171
31,953
179,124
Impairment
60,114
60,114
60,114loss
Increase inproperty, plantand equipment
420,523
13,602
1,290
435,416
10,754446,170
14,279460,450and intangible
assets
Notes: 1. Other represents the businesses which are not included in any of the reportable segments and mainly consists of
IT & Internet-Related Business and Overseas Business.
2. Contents of adjustments are as follows.
(1) The (834,702) thousand yen adjustment to segment profit includes elimination for inter-segment transactionsof 174,090 thousand yen, and (1,008,793) thousand yen in company-wide costs that cannot be allocated toany specific reportable segments. Company-wide costs consist primarily of expenses related to theadministration division, which are not attributable to any reportable segments, including general affairs andaccounting at the Company.
(2) The 1,812,222 thousand yen adjustment to segment assets includes elimination for inter-segment transactionsof (294,312) thousand yen, and 2,106,534 thousand yen in company-wide assets that cannot be allocated toany specific reportable segments. Company-wide assets consist primarily of the Company’s excess funds(cash and deposits), long-term investments (investment securities), and assets which belong to theadministration division.
(3) The 31,953 thousand yen adjustment to depreciation is the sum of assets which belong to the administration
division that cannot be allocated to reportable segments.
(4) The 14,279 thousand yen adjustment to an increase in property, plant and equipment and intangible assets isthe sum of assets which are not attributable to any reportable segments and belong to the administration
division that cannot be allocated to reportable segments.
3. Segment profit is adjusted with operating profit shown on the consolidated statement of income.
4. The “Other (Overseas Business)” segment reported an impairment loss on goodwill of 60,114 thousand yen.

This summary report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers
who prefer an English translation.

21