Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2018
[Japanese GAAP]
April 27, 2018

Company name: QUICK CO.,LTD.
Listing: First Section, Tokyo Stock Exchange
Stock code:
4318
URL: https://919.jp/
Representative: Tsutomu Wano, President
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 21, 2018
Scheduled date of filing of Annual Securities Report:
June 21, 2018
Scheduled date of payment of dividend:
June 22, 2018
Preparation of supplementary materials for financial results:
Yes
Holding of financial results meeting:Yes(All amounts are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2018 (April 1, 2017 – March 31, 2018)(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, 2018
16,775 15.1
2,198 10.0
Fiscal year ended Mar. 31, 2017
14,578 16.6
1,998 18.4
Note: Comprehensive income (millions of yen) Fiscal year ended Mar. 31, 2018:
Fiscal year ended Mar. 31, 2017:%

Millions of yen%

2,300 10.9
2,073 19.4
1,802 (up 14.4%)
1,575 (up 36.2%)

1,627
1,391

17.0
18.8

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, 2018
86.62
25.5
23.1
13.1
Fiscal year ended Mar. 31, 2017
74.04
26.5
24.9
13.7
Reference: Equity in earnings of affiliates (millions of yen): Fiscal year ended Mar. 31, 2018: - Fiscal year ended Mar. 31, 2017: -(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, 2018
10,587
6,977
As of Mar. 31, 2017
9,300
5,796
Reference: Shareholders’ equity (millions of yen)
As of Mar. 31, 2018:
6,964

Yen

65.8
62.3
As of Mar. 31, 2017: 5,796

370.72308.51(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

1,432
2,000

(490)
(255)

(634)
(504)

5,014
4,639

Fiscal year ended Mar. 31, 2018
Fiscal year ended Mar. 31, 2017

2. Dividends
Dividend per share
1Q-endFiscal year ended Mar. 31, 2017
Fiscal year ended Mar. 31, 2018
Fiscal year ending Mar. 31, 2019
(forecasts)

2Q-end3Q-end Year-end

Total

Total
dividends

Payout ratio(consolidated)

Dividends to
net assets(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

-

14.00
17.00

-

16.00
18.00

30.00
35.00

563
657

40.5
40.4

10.7
10.3

-

19.00

-

19.00

38.00

40.7

3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2019 (April 1, 2018 – March 31, 2019)
Net salesFirst half
Full year(Percentages represent year-on-year changes.)
Profit attributable to
Net income
Ordinary profit
owners of parent
per share

Operating profit

Millions of yen
9,695

%
15.4

Millions of yen
1,929

%
13.9

Millions of yen
1,951

%
11.8

Millions of yen
1,351

%
10.0

Yen
71.95

18,500

10.3

2,300

4.6

2,530

10.0

1,753

7.8

93.34

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
(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, 2018:19,098,576 shares

As of Mar. 31, 2017:19,098,576 shares

As of Mar. 31, 2017:

311,017 shares

2) Number of treasury shares at the end of the period
As of Mar. 31, 2018:311,127 shares

3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2018:18,787,518 sharesFiscal year ended Mar. 31, 2017:18,787,591 shares

Reference: Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2018 (April 1, 2017 – March 31, 2018)(1) Non-consolidated results of operations
Net sales
Millions of yen%

Millions of yen

10,989
9,833

11.8
17.6

1,802
1,565

Fiscal year ended Mar. 31, 2018
Fiscal year ended Mar. 31, 2017

Fiscal year ended Mar. 31, 2018
Fiscal year ended Mar. 31, 2017

(Percentages represent year-on-year changes.)
Ordinary profit
ProfitOperating profit% Millions of yen

15.2
11.5

2,077
1,800

%

Millions of yen

%

15.4
10.9

1,549
1,255

23.4
11.8

Net income per share Diluted net income per share
Yen
Yen
82.50
66.84
-

(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, 2018
9,084
6,391
As of Mar. 31, 2017
7,931
5,295
Reference: Shareholders’ equity (millions of yen):
As of Mar. 31, 2018:

%

6,391

70.4
66.8
As of Mar. 31, 2017:

Yen

340.22281.885,295* The current quarterly 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 FY3/18

1. Overview of Results of Operations(1) Results of Operations
During the fiscal year ended March 31, 2018, the Japanese economy continued to recover at a moderate pace as it
saw an improvement in income and a pick-up in personal spending amid an ongoing improvement in corporate
earnings backed by a recovery in exports and an increase in production. However, we need to be cautious about
the future of the Japanese economy, given the negative factors such as the spread of protectionist sentiment
spurred primarily by an increase in the U.S. imposed tariffs, appreciation of yen, rising resource prices, andgeopolitical risks in neighboring countries as well as the increasing severity of the labor shortage in Japan.
In Japan’s labor market, a shortage of workers is becoming more severe in such sectors as transportation andconstruction besides manufacturing and service. In February 2018, the seasonally adjusted job
openings-to-applicants ratio was 1.58, and the seasonally adjusted job openings-to-applicants ratio for full-time
employees also remained high at 1.07. Against this backdrop, an increasing number of companies have taken
actions to overcome this situation by strengthening recruiting activities to secure talented people, making greateruse of female and elder workers, and implementing a pay raise. However, a fundamental solution for the labor
shortage problem is yet to be found.
During the fiscal year ended March 31, 2018, the QUICK Group reinforced existing services, expanded
operations in new strategic market sectors and developed new services. All activities are aimed at differentiating
the QUICK Group from competitors and increasing customer satisfaction by helping solve recruiting and otherlabor-related problems at client companies. In addition, the Group used numerous measures to build a stronger
foundation for business operations by increasing investments in human resources. Group companies aggressively
recruited new graduates and other people with outstanding skills, improved compensation for group personnel andtook other actions.
Centre People Appointments Ltd., which was acquired in August 2017, is included in the consolidated financial
statements beginning with the third quarter.
As a result, both sales and earnings were higher for the eighth consecutive year, reaching all-time highs. Net sales
increased 15.1% year-on-year to 16,775 million yen, operating profit increased 10.0% year-on-year to 2,198
million yen, ordinary profit increased 10.9% year-on-year to 2,300 million yen and profit attributable to ownersof parent increased 17.0% year-on-year to 1,627 million yen.
Business segment performance (reportable segments and others) is as follows.
(Human Resources Services Business)
1) Personnel Placement
In the personnel placement category of this segment, recruiting needs remained high in the construction, civilengineering, manufacturing and other business sectors, as well as at hospitals, nursing care facilities and other
health care facilities. To help meet these needs, the QUICK expanded the operation of websites and services ineach business category. Also, in response to the increasing competition with other companies to register people
for job placements, it further strengthened promotions to sign up people looking for jobs and took steps aimed at
differentiating services and improving customer satisfaction. As a result of these measures, operations expanded
steadily in the placements of professionals and technical staff to the business sectors as well as nurses to healthcare facilities.
2) Temporary Staffing, Temporary-to-Permanent Staffing and Business Contracting
In the temporary staffing, temporary-to-permanent staffing and business contracting category, corporate needs ofusing temporary staffing remained steady due to the increasing difficulty of directly recruiting full-time
employees and others due to a declining unemployment rate in Japan. Under such circumstances, there wasincreased demand for the provision of temporary part-time workers in the IT and Internet sectors as well as forclerical jobs. Demand also remained strong for the temporary placement of workers in the medical and welfare
sectors and of childcare workers.
Overall, Human Resources Services segment sales increased 21.6% year-on-year to 9,915 million yen andoperating profit increased 16.3% year-on-year to 1,735 million yen.

1

QUICK CO., LTD. (4318) Financial Results for FY3/18(Recruiting Business)
In the Recruiting Business, there is growing demand in the mid-year hiring category because of Japan’s labor
shortage and a resulting increase in recruiting needs. As a result, the volume of recruiting advertisements handled
by this business for client companies increased for registering people for temporary placements, hiring part-timeworkers and other purposes. The volume of recruiting advertisements for full-time employees also remained firm.
In the new college graduate category, with the background of the student-dominant seller’s market, corporate
activities for recruiting new graduates were aggressive and diversified. As a result, there was a larger volume ofbusiness from client companies for recruiting advertisements that target students expected to graduate in March
2019 and for services involving joint information meetings, exhibits and other recruiting events, which we started
marketing from March 2018.
Sales from services other than recruiting advertising also steadily increased thanks to an increase in handling ofrecruitment tools including recruitment websites and company brochures. On the other hand, personnel and otherrelated expenses in this segment increased because of investments in human resources in the form of improved
compensation and strengthened recruiting activities.
Overall, Recruiting segment sales increased 3.3% year-on-year to 3,693 million yen and operating profit
decreased 2.4% year-on-year to 881 million yen.
(Information Publishing Business)
In the Information Publishing Business, services in the housing field such as advertisements in “Iezukuri Navi,” ahousing information magazine in Hokuriku and “Cococolor Iezukuri” housing concierge services performed well.
The posting service business using flyers inserted in newspapers and other publications also posted a solid
performance. Further, in the mainstream lifestyle information magazines category, the performance in the
Ishikawa area began to improve since the volume of town advertising of restaurants and shops for attracting
customers was strong. However, the performance in the Toyama and Niigata areas remained weak.
Under these circumstances, in addition to opening the Takaoka Office in Takaoka city, Toyama prefecture in
February 2018, QUICK actively made its moves into developing new markets such as releasing Web media“Shumatsu, Kanazawa.” in March for delivering every day the latest information on Kanazawa carefully selectedby the local editors.
Overall, Information Publishing segment sales decreased 1.8% year-on-year to 1,762 million yen and operating
profit decreased 95.0% year-on-year to 3 million yen.
(Other Businesses)
1) Internet-Related BusinessIn the Internet-Related Business, with the background of shortage of workers due to the declining birthrate andaging population as well as the movement toward “work-style reform,” there was an increased interest in HR
solution businesses that support personnel strategies such as recruiting, development of employees’ skills,
enhanced welfare, and improvement in productivity. As a result, demand continued to be strong for promotional
activities by human resources service companies resulting in a steady increase in advertising revenues at “Nihonno Jinjibu” (Japan’s Human Resources Department), an information portal site for human resources and labor
relations.
In response to the strong demand for this type of information, at the same time as HR Conference, which isJapan’s largest human resources event, in November 2017 we organized HR Technology Conference 2017, an
event focused on human resource technologies. Further, we provided new services and opportunities tailored tothe market needs and interest and worked on further penetration of the “Nihon no Jinjibu” brand by holding in
February 2018 HR Consortium with the theme of career and education in the age of 100-year life, in which
persons in charge of human resources learned from each other beyond the framework of their company.
2) Overseas BusinessIn the United States, where the solid economy has continued to help improve employment conditions, QUICK
USA, Inc. is continuing to deal with a seller’s market for legal foreign workers because of stricter rules for2

QUICK CO., LTD. (4318) Financial Results for FY3/18

granting working visas. Competition for the registration of people who speak English and Japanese is becoming
increasingly heated. Despite this challenging environment, QUICK USA,Inc. continued its steady growth in boththe personnel placement and temporary staffing categories by encouraging more people to get registered bymaking its registration website smartphone compatible and renewing the design to be more user friendly.
In China, where the recruiting sentiment has shown no sign of improvement as the economy is getting morestagnant, Shanghai QUICK CO., LTD. has posted a solid performance in its personnel and labor consulting
business that provides services such as analysis for appropriate employee compensation and development of apersonnel system to help strengthen the management of a client company, and implementation of training sessions
for human resource development.
QUICK GLOBAL MEXICO, S.A. DE C.V., has steadily expanded its business through the placement ofinterpreters, salespeople, production controllers, accountants and other workers at Japanese companies in Mexico
against a backdrop of continued expansion in Japanese automakers’ operations in this country.
At Centre People Appointments LTD., both the personnel placement and temporary staffing businesses performed
well.
Overall, sales in other businesses increased 33.4% year-on-year to 1,404 million yen and operating profit
increased 9.0% year-on-year to 198 million yen.
(2) Financial Position
AssetsTotal assets at the end of the fiscal year under review increased 13.8%, or 1,286 million yen, year-on-year to
10,587 million yen. This was mainly the result of increases in cash and deposits, notes and accounts
receivable-trade, and investment securities.
Liabilities
Total liabilities at the end of the fiscal year under review increased 3.0%, or 105 million yen, year-on-year to3,610 million yen. This was mainly the result of increases in accounts payable-other and accrued expenses despitea decrease in income taxes payable.
Net assets
Total net assets at the end of the fiscal year under review increased 20.4%, or 1,180 million yen, year-on-year to6,977 million yen. This was mainly the result of an increase in retained earnings due to the booking of profit
attributable to owners of parent.
Consequently, the shareholders’ equity ratio increased 3.5 percentage points from the end of the previous fiscal
year to 65.8%.
(3) Cash Flows
Cash and cash equivalents (hereinafter referred to as “net cash”) increased 375 million yen from the end of theprevious fiscal year to 5,014 million yen at the end of the current fiscal year. Outflows included income taxes paid
and cash dividends 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 decreased 28.4% year-on-year to 1,432 million yen. Negative factors
include income taxes paid of 817 million yen and an increase of 135 million yen in notes and accounts
receivable-trade. Positive factors include profit before income taxes of 2,275 million yen.
Cash flows from investing activities
Net cash used in investing activities increased 91.8% year-on-year to 490 million yen. Negative factors include
purchase of non-current assets of 288 million yen and purchase of shares of subsidiaries resulting in change in
3

QUICK CO., LTD. (4318) Financial Results for FY3/18

scope of consolidation of 142 million yen.
Cash flows from financing activities
Net cash used in financing activities increased 25.8% year-on-year to 634 million yen. Negative factors include
cash dividends paid of 618 million yen and repayments of lease obligations of 14 million yen.
Reference: Cash flow indicators
FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

Shareholders’ equity ratio (%)

60.1

58.4

64.2

62.3

65.8

Shareholders’ equity ratio based on market value (%)

211.2

228.1

226.0

238.4

337.7

Ratio of interest-bearing debt to cash flows (years)

0.4

0.2

0.2

0.1

0.1

179.3

344.7

316.2

736.5

623.8

Interest coverage ratio (times)- Shareholders’ equity ratio: Shareholders’ equity / Total assets- Shareholders’ equity ratio based on market value: Market capitalization / Total assets- Ratio of interest-bearing debt to cash flows: Interest-bearing debt / Cash flows- Interest coverage ratio: Cash flows / Interest payments
Notes: 1. All indicators are calculated based on consolidated figures.
2. Market capitalization is calculated by the number of shares outstanding at the end of the period, excluding treasury
shares.
3. Cash flows are based on “Net cash provided by (used in) operating activities.”
4. Interest-bearing debt includes all debts on the consolidated balance sheet that incur interest.

(4) Outlook
The Japanese economy continues to recover slowly with the support of healthy corporate earnings and improved
income environment. However, we need to be cautious about the future of the Japanese economy, given thepolitical confusion at home, uncertainty of overseas economies such as the trade friction between the U.S. andChina, and rising geopolitical risks in the neighboring countries.
Whereas the Japanese government is pursuing “work-style reform” in order to raise productivity by using IT and
ensure a sufficient supply of workers by hiring female and elder workers, we do not anticipate that the reform willbring a significant progress with solving Japan’s labor shortage.
In the Human Resources Services Business, we will strengthen operations in the existing domains of personnel
placement market and also cultivate the new category of job placements for specialists. We aim to increase thenumber of registrant for personnel placements by expanding and enriching contents on the websites we operate ineach business domain, renewing them and increasing other promotional activities. At the same time, we will focus
on strengthening our organization by actively hiring competent new graduates and mid-year professionals andproviding an extensive training program.
In the temporary staffing, temporary-to-permanent staffing and business contracting category, Japan’s improved
employment situation has created a growing tendency of job seekers to look for a full-time employee status. As aresult, companies find it more difficult to hire temporary staff who wish to work full-time. As we expect that more
Japanese companies will proactively hire part-time staff in the future, we will leverage the dedicated website
named “Haken de Part” to attract registrants for part-time staff and step up our sales efforts. In the medical andwelfare sectors we plan to meet demands for personnel in home nursing and health care fields. In the childcare
temporary staffing business, we will expand the content of the dedicated website named “Hoitomo Osaka” forplacement of childcare professionals to attract registrants and raise the awareness of this website brand.
In the Recruiting Business, we will strive to strengthen our sales structure as the whole of our organization byimplementing position-specific trainings. We also aim to enhance customer development through using our own
sites and holding various seminars to introduce our products and services. Further, in response to recruiting
challenges our client companies are facing, we will pursue client companies’ success in recruiting activities andtheir satisfaction by providing multi-perspective, one-stop services ranging from proposing on recruitment plansto addressing follow-up issues after employees joining a company.
In the Information Publishing Business, we will work on making our business more appealing for customers

4

QUICK CO., LTD. (4318) Financial Results for FY3/18

through increasing the volume of information of infrastructure type media including lifestyle information andhome information magazines and cultivating new markets. In concierge (face-to-face consultation) services, we
aim to provide services that are supported by both client companies and users through reorganization in the careerchange domain and delivery of more sophisticated services in the housing domain. In the posting business, wenewly opened the Takaoka Office in February 2018 aiming to enlarge our service network and to augment
operating performance through an early stabilization of its flyer distribution organization.
In the Internet-Related Business, we aim to achieve a further growth of our core “Nihon no Jinjibu” website byincreasing the number of the website members and its access frequency. At the same time, we will leverage the“Nihon no Jinjibu” brand to strengthen peripheral services in the human resources service industry and hold new
types of events in order to assist client companies with activities to promote sales of their products and services
and attract more customers.
In the Overseas Business, we will continue to further strengthen personnel placement and temporary staffing andpersonnel and labor consulting. We also aim to establish ourselves as a partner that helps resolve human resources
issues at client companies and to reinforce our earnings base.
As a result, we expect consolidated net sales of 18,500 million yen (up 10.3% year-on-year), operating profit of
2,300 million yen (up 4.6%), ordinary profit of 2,530 million yen (up 10.0%), and profit attributable to owners ofparent of 1,753 million yen (up 7.8%) for the fiscal year ending March 31, 2019.
(5) Basic Policy for Profit Distribution, and Dividends in the Current and Next Fiscal Years
Quick positions the return of profits to shareholders as a priority management issue, and endeavors to achievesustainable 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 18 yen
per share, an increase of one yen per share compared with the initial forecast. Accordingly, we forecast an annual
dividend of 35 yen per share, consisting of a dividend of 17 yen at the end of the second quarter and 18 yen at
fiscal year-end.
For the fiscal year ending March 31, 2019, we forecast an annual dividend of 38 yen per share, consisting of adividend of 19 yen each at the end of the second quarter and fiscal year-end.
At present, we do not expect to award quarterly or other dividends other than at the end of the second quarter andfiscal year-end.

5

QUICK CO., LTD. (4318) Financial Results for FY3/18

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

Notes:

1. Above eight affiliated companies are all consolidated.
2. Two non-consolidated subsidiaries are not shown because the effect on the consolidated results is negligible.
6

QUICK CO., LTD. (4318) Financial Results for FY3/18

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 conducts personnel placement business, temporary staffing, temporary-to-permanent staffing,business contracting and nursery school operation (Human Resources Services Business); advertising agency
business for recruiting advertisements, education and training, personnel business contracting and provision ofrecruiting support tools (Recruiting Business); publication and posting of regional information magazines andconcierge (face-to-face consultation) services (Information Publishing Business); operation of the “Nihon no
Jinjibu” site, planning and operation of events related to the “Nihon no Jinjibu” and supports for Web promotions(Internet-Related Business); and personnel placement business, temporary staffing and personnel and laborconsulting in the United States, China, Mexico and the United Kingdom (Overseas Business).
Taking advantage of the synergistic effects of these businesses, the Group will strengthen its businesses in orderto respond swiftly to market needs, including those of client companies and job seekers. We will also build up oursales structure and strive to enhance management efficiencies.
(2) Performance Targets
In addition to expanding the scale of its operations, the QUICK Group’s policy is to build a profit-orientedorganization that makes effective use of such business assets as its proprietary sales network and expertise in
attracting registrants who wish to change careers. To achieve these goals and in order to attain stable growth andbuild a robust financial foundation, the Group 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 Human Resources Services Business. We also plan to achieve themedium- to long-term growth of the Recruiting Business, Information Publishing Business, 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 will proactively develop our businesses overseas. Through collaboration between our overseas
companies and businesses in Japan, we will develop global human resources services aimed at realizing theconcept of the “Sekai no Jinjibu (Human Resources Department for the world).”(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 labor issues of companies in Japanand other countries.
Furthermore, we will enhance education and training programs for our workforce in order to give our people the7

QUICK CO., LTD. (4318) Financial Results for FY3/18

skills needed to accomplish these goals, thereby enabling the QUICK Group to grow even faster.
The issues in individual businesses are outlined below.
(Human Resources Services Business)
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 website with more contents available online to make them more useful andconducting effective promotional activities. By using a variety of actions, we will make the brands of all our
websites more powerful and attract more people to register for job placements. In other moves to become morecompetitive as an organization, this business will aggressively recruit talented people and strengthen personnel
development.
In the temporary staffing, temporary-to-permanent staffing, business contracting and other businesses, there is a
growing tendency for companies to hire job seekers and temporary staffing workers as full-time employees
because of Japan’s falling unemployment rate. Furthermore, as we continue to see a strong demand for humanresources from the medical and welfare sector, it is our challenge to attract new registrants who wish to work as
temporary staff. In order to attract more people to register for temporary staffing placements, we will strive tostrengthen promotional activities on and add more contents to our Group’s websites consisting of “Haken de Part”
targeting temporary part-time workers, “Medicare Career” targeting temporary workers in the medical andwelfare sectors, and “Hoitomo Osaka” targeting temporary childcare workers so that each website can draw more
people to it with enhanced brand power.
(Recruiting Business)
In the Recruiting Business, demand for recruiting services at client companies remains very strong, but it isexpected that Japan’s labor shortage will hinder companies more from hiring workers they need. Under suchcircumstances, diversified recruiting techniques as well as competition among recruiting media companies areaccelerating the stringent competition in the recruiting business. To address this situation, we will pursue tostrengthen consulting-based sales approach in which we propose multi-perspective, one-stop services to assist
client companies in order for them to succeed in their recruiting activities, thereby enhancing their satisfaction.
The approach includes not only proposing on recruiting advertisement, but also helping them produce recruiting
tools such as recruiting websites and design a recruiting process. We will also strive to cultivate new customers
by creating more connections with potential customers through seminars and the website named “Sai Katsu
Ryoku” (company’s ability to hire the right types of people), which introduces our products and services.
(Information Publishing Business)
The Information Publishing Business is seeing a further diversification of advertising techniques affected by themarket entry of new competitors and development of website advertisement using SNS. In response to the change,
we will strive to enhance the value of our media by increasing the volume of information in our major media andcultivating the new category of job placements. In general, web media had been positioned as a complementary
contents of existing media. However, we will create an independent content of web media to deal with various
needs of client companies sending information in the form of advertisement and of users receiving those
information.
(Other Businesses)
1) Internet-Related BusinessWe expect continued growth in the need for promotional activities at human resources service companies becauseof the movement toward “work-style reform.” We at the same time should expect that “Nihon no Jinjibu”—ourmain business platform to face more intensified competition with other competing websites going forward. As acountermeasure to that, we will aim to increase the number of registered members of the “Nihon no Jinjibu”
website and enhance its competitiveness through enriching contents and making it more mobile-friendly. We will
also take initiative to build a new business model by leveraging the brand power and membership network of the8

QUICK CO., LTD. (4318) Financial Results for FY3/18

abovementioned website. Through these measures, we want to establish a sound base for consistent medium- tolong-term growth of the Internet-Related Business.
2) Overseas BusinessIn the United States, there is a strong demand for human resources services at client companies, but we expectthat the country will continue to be a seller’s market for legal foreign workers because of the stricter rules by thegovernment for granting and renewing working visas. To address this situation, we will strive to improvematching accuracy by capturing a wide range of job to meet what job seekers are looking for and reinforcing
follow-up activities after hiring for both job seekers and client companies to make sure a stable employment forthe both sides. We also aim to increase profitability by price revisions. Recruiting and training activities for
QUICK’s own workforce are another priority in order to strengthen sales activities and the entire U.S. businessorganization.
In China, there are an increasing number of issues involving labor relations at the local companies. As a result,
there is still a steadily growing need for personnel and labor consulting services. In response to this need, we willbuild up sales and service structure by recruiting and training QUICK’s own workforce to provide morecompanies with comprehensive support extending from solving client companies’ recruiting and personnel andlabor issues to employee training programs. Consequently, we will successfully manage opportunity loss risks and,at the same time, enhance our credibility and competitiveness as a company providing a personnel and laborconsulting service.
We expect that Mexico will continue to see a consistent strong demand for human resources services in thedomestic automobile industry. We will respond to the demand by reinforcing sales activities through recruiting
and training for QUICK’s own workforce. We also aim to increase the number of registrants by upgrading
contents of the website we operate, improving usability of the website and holding seminars and events both inJapan and Mexico.
In the United Kingdom, uncertainty over employment prospects is growing with the upcoming country’s
withdrawal from the European Union. To address this situation, we will build infrastructure to capture registrants
on the website and also enhance personnel placement for Japanese companies in European countries other thanthe United Kingdom, thereby establishing a sound foundation for business looking to a consistent medium tolong-term growth.
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.

9

QUICK CO., LTD. (4318) Financial Results for FY3/18

5. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet(Thousands of yen)
FY3/18(As of Mar. 31, 2018)

FY3/17(As of Mar. 31, 2017)
AssetsCurrent assets
Cash and deposits

4,669,428

5,044,883

Notes and accounts receivable-trade

1,784,605

1,997,915

Deferred tax assets

201,772

172,903

Other

334,404

380,119

Allowance for doubtful accounts(1,845)(1,443)

6,988,364

7,594,377

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

992,752

1,177,384

Accumulated depreciation(601,190)(645,675)

Buildings and structures, net

391,561

531,709

VehiclesAccumulated depreciation
Vehicles, net

3,436

8,796

(687)

(1,958)

2,749

6,838

Tools, furniture and fixtures

156,133

202,964

Accumulated depreciation(91,255)(112,951)

Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment

64,87790,012276,869

276,869

44,063

12,626(36,147)(4,603)

7,915

8,022

-

70,811

743,973984,264

Intangible assets
Goodwill-

143,708

Leased assets

16,514

6,224

Other

203,055

192,428

Total intangible assets

219,569

342,361

Investment securities

882,788

1,100,759

Lease deposits

410,030

510,491

Investments and other assets

Deferred tax assets

3,479

3,805

Other

70,99662,250Allowance for doubtful accounts(18,527)(11,105)

Total investments and other assets

1,348,767

1,666,200

2,312,310

2,992,825

9,300,675

10,587,203

Total non-current assets
Total assets

10

QUICK CO., LTD. (4318) Financial Results for FY3/18(Thousands of yen)
FY3/18(As of Mar. 31, 2018)

FY3/17(As of Mar. 31, 2017)
Liabilities
Current liabilities
Accounts payable-trade653,118

655,473

Short-term loans payable

189,902

188,300

Accounts payable-other713,656

889,392

Accrued expenses

376,407442,178

Lease obligations

13,895

8,652

Income taxes payable

522,873

342,450

Accrued consumption taxes

226,340

235,419

Provision for bonuses

406,918

359,642

Provision for directors’ bonuses

52,450-

Provision for repayment

15,00017,100Asset retirement obligations

1,465

-

129,242

181,397

3,301,271

3,320,007

Lease obligations

10,9595,915

Deferred tax liabilities

153,568

226,908

Asset retirement obligations

37,96555,310

746

1,970

Other
Total current liabilities
Non-current liabilities

Other
Total non-current liabilities
Total liabilities

203,239

290,105

3,504,510

3,610,113

351,317351,317

Net assets
Shareholders’ equity
Capital stock
Capital surplus

307,998

307,998

Retained earnings

4,728,581

5,723,382

Treasury shares(19,019)(19,223)

Total shareholders’ equity

5,368,878

6,363,475

420,525

586,784

6,760

14,629427,285

601,413-

12,201

5,796,164

6,977,090

9,300,675

10,587,203

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

11

QUICK CO., LTD. (4318) Financial Results for FY3/18(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income
FY3/17(Apr. 1, 2016 – Mar. 31, 2017)(Thousands of yen)
FY3/18(Apr. 1, 2017 – Mar. 31, 2018)

Net sales

14,578,829

16,775,078

Cost of sales

5,904,003

7,026,983

Gross profit

8,674,825

9,748,094

Selling, general and administrative expenses

6,676,660

7,549,332

Operating profit

1,998,165

2,198,762

Non-operating income
Interest income

355

114

Dividend income

8,830

14,379

Sale cooperation fee

26,000-Book sales commission

20,682

22,562

Subsidy income-

30,921

Other

22,85339,565

Total non-operating income

78,721

107,543

2,728

2,351

Non-operating expenses
Interest expenses
Foreign exchange losses

-

2,326

387

1,077

3,115

5,755

2,073,770

2,300,551

Gain on sales of investment securities-

507

Total extraordinary income

-

507

Other
Total non-operating expenses
Ordinary profit
Extraordinary income

Extraordinary losses
Loss on sales of non-current assets

517

51

Loss on retirement of non-current assets

1,399

26,004

Total extraordinary losses

1,916

26,055

Profit before income taxes

2,071,853

2,275,004

Income taxes-current

766,970

617,699

Income taxes-deferred(86,221)28,967

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

12680,748646,667

1,391,104

1,628,337

-

1,044

1,391,104

1,627,292

QUICK CO., LTD. (4318) Financial Results for FY3/18

Consolidated Statement of Comprehensive Income
FY3/17(Apr. 1, 2016 – Mar. 31, 2017)(Thousands of yen)
FY3/18(Apr. 1, 2017 – Mar. 31, 2018)

1,391,104

1,628,337

Valuation difference on available-for-sale securities

189,018

166,259

Foreign currency translation adjustment(4,291)

7,922

Total other comprehensive income

184,726

174,181

1,575,831

1,802,518

Comprehensive income attributable to owners of parent

1,575,831

1,801,420

Comprehensive income attributable to non-controllinginterests

-

1,097

ProfitOther comprehensive income

Comprehensive income
Comprehensive income attributable to13

QUICK CO., LTD. (4318) Financial Results for FY3/18(3) Consolidated Statement of Changes in Equity
FY3/17 (Apr. 1, 2016 – Mar. 31, 2017)(Thousands of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
period351,317

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity307,998

3,825,954(18,975)

4,466,294

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
period(488,477)(488,477)

1,391,104

1,391,104
(43)

(43)

-

-

902,627(43)

902,584

351,317

307,998

4,728,581(19,019)

5,368,878

Accumulated other comprehensive income
Total accumulated
Valuation
Foreign currency
other
difference ontranslation
comprehensive
available-for-saleadjustment
incomesecurities
Balance at beginning ofcurrent period
Changes of items during
period231,507

11,051

242,558

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
periodTotal net assets

4,708,853(488,477)
1,391,104(43)
189,018(4,291)

184,726

184,726

189,018(4,291)

184,726

1,087,310

420,525

6,760

427,285

5,796,164

14

QUICK CO., LTD. (4318) Financial Results for FY3/18

FY3/18 (Apr. 1, 2017 – Mar. 31, 2018)(Thousands of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
period351,317

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity307,998

4,728,581(19,019)

5,368,878

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesChange of scope of
consolidation
Net changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
period(619,989)(619,989)

1,627,292

1,627,292(204)(12,503)(204)(12,503)--994,800(204)

994,596351,317

307,998

5,723,382(19,223)

6,363,475

Non-controllinginterests

Total net assets

Accumulated other comprehensive income
Total accumulated
Valuation
Foreign currency
other
difference ontranslation
comprehensive
available-for-saleadjustment
incomesecurities
Balance at beginning ofcurrent period
Changes of items during
period420,525

6,760

427,285-

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesChange of scope of
consolidation
Net changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
period5,796,164(619,989)
1,627,292(204)(12,503)
166,259

7,868

174,127

12,201

186,329

166,259

7,868

174,127

12,201

1,180,925

586,784

14,629601,413

12,201

6,977,090

15

QUICK CO., LTD. (4318) Financial Results for FY3/18(4) Consolidated Statement of Cash Flows(Thousands of yen)
FY3/17
FY3/18(Apr. 1, 2016 – Mar. 31, 2017) (Apr. 1, 2017 – Mar. 31, 2018)
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts

2,071,853

2,275,004

125,157

152,886

-

7,389

7,586

(7,943)

Increase (decrease) in provision for bonuses

164,461(51,529)

Increase (decrease) in provision for directors’ bonuses

52,450(52,450)

Increase (decrease) in provision for repayment

(600)

2,100

(9,185)(14,494)

2,728

2,351

Loss (gain) on sales of non-current assets

517

51

Loss on retirement of non-current assets

1,399

26,004-(507)

Decrease (increase) in notes and accounts receivable-trade(155,211)(135,948)

Increase (decrease) in notes and accounts payable-trade

49,021(25,974)

Decrease (increase) in lease and guarantee deposits(47,431)(86,218)

Increase (decrease) in accrued consumption taxes

93,791(10,996)

Interest and dividend income
Interest expenses

Loss (gain) on sales of investment securities

Other, net

226,655

158,419

Subtotal

2,583,193

2,238,143

9,186

14,494

Interest and dividend income received
Interest expenses paid

(2,716)(2,296)

Income taxes paid

(589,123)(817,773)

Net cash provided by (used in) operating activities

2,000,540

1,432,567(20,966)(198,452)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

330-

Purchase of intangible assets(103,853)(89,803)

Purchase of investment securities(80,469)(65,538)-

840

Payments of loans receivable
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Other, net(50,000)--(142,499)

(800)

4,803

Net cash provided by (used in) investing activities(255,758)(490,650)

Net increase (decrease) in short-term loans payable(1,500)(1,602)

Repayments of lease obligations(14,686)(14,133)

(43)

(204)

Cash dividends paid

(488,013)(618,271)

Net cash provided by (used in) financing activities(504,243)(634,210)(1,897)

2,407

Proceeds from sales of investment securities

Cash flows from financing activities

Purchase of treasury shares

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

1,238,640

310,113

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly
consolidated subsidiary

3,400,787

4,639,428-

65,341

Cash and cash equivalents at end of period

4,639,428

5,014,883

16

QUICK CO., LTD. (4318) Financial Results for FY3/18(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 and posting of regional information magazines, and concierge(face-to-face consultation) services. The Other Businesses operates the “Nihon no Jinjibu” site, plans andoperates events related to the “Nihon no Jinjibu,” supports Web promotions (Internet-Related Business) andengages in personnel placement, temporary staffing, and personnel and labor consulting in the United States,
China, Mexico and the United Kingdom (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.

17

QUICK CO., LTD. (4318) Financial Results for FY3/18

3. Information pertaining to net sales, profit/loss, assets and other items in reportable segments
FY3/17 (Apr. 1, 2016 – Mar. 31, 2017)
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

8,155,566

3,575,889

1,794,595

13,526,050

1,052,778

14,578,829－

14,578,829

3,206

6,978

10,476

20,66161,016

81,677(81,677)－

8,158,772

3,582,867

1,805,071

13,546,711

1,113,794

14,660,506(81,677)

14,578,829

Segment profit

1,491,492

903,235

68,5572,463,284

182,1122,645,396(647,231)

1,998,165

Segment assets

3,643,056

2,196,184

1,071,235

6,910,476

775,585

7,686,062

1,614,613

9,300,675

Other items
Depreciation
63,661
3,527
19,39486,583
6,651
93,23531,922
125,157
Increase inproperty, plantand equipment
81,1391,640
45,933
128,71336,650165,363
5,495
170,858
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 (647,231) thousand yen adjustment to segment profit includes elimination for inter-segment transactionsof 126,147 thousand yen, and (773,378) 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 1,614,613 thousand yen adjustment to segment assets includes elimination for inter-segment transactionsof (171,119) thousand yen, and 1,785,732 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 31,922 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 5,495 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.
3. Segment profit is adjusted with operating profit shown on the consolidated statement of income.

18

QUICK CO., LTD. (4318) Financial Results for FY3/18

FY3/18 (Apr. 1, 2017 – Mar. 31, 2018)
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

9,915,233

3,693,440

1,762,265

15,370,939

1,404,138

16,775,078－

16,775,078

2,143

25,99011,85939,994

46,61486,608(86,608)－

9,917,377

3,719,431

1,774,125

15,410,933

1,450,753

16,861,687(86,608)

16,775,078

Segment profit

1,735,060

881,467

3,407

2,619,935

198,416

2,818,351(619,588)

2,198,762

Segment assets

4,426,126

2,224,995

971,4627,622,583

1,051,704

8,674,288

1,912,914

10,587,203

Other items
Depreciation
73,383
3,262
27,451
104,097
14,339118,437
34,449152,886
Increase inproperty, plantand equipment
170,583
31,49736,152
238,233
9,961
248,194
35,177283,371
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 (619,588) thousand yen adjustment to segment profit includes elimination for inter-segment transactionsof 137,338 thousand yen, and (756,926) 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 1,912,914 thousand yen adjustment to segment assets includes elimination for inter-segment transactionsof (174,262) thousand yen, and 2,087,177 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 34,449 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 35,177 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.

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.

19