Summary of Consolidated Financial Results for the Second Quarterof the Fiscal Year Ending March 31, 2017
(Six Months Ended September 30, 2016)[Japanese GAAP]
October 31, 2016

Listing: First Section, Tokyo Stock Exchange
Company name: QUICK CO.,LTD.
Stock code:
4318
URL: http://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 filing of Quarterly Report:
November 11, 2016
Scheduled date of payment of dividend:
December 2, 2016
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:Yes(All amounts are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2017
(April 1, 2016 – September 30, 2016)(1) Consolidated results of operations(Percentages represent year-on-year changes.)
Net sales
Millions of yen

Operating income%

Millions of yen% Millions of yen

Six months ended Sep. 30, 2016
7,445 18.7
1,540 20.8
Six months ended Sep. 30, 2015
6,274
8.6
1,275 12.0
Note: Comprehensive income (millions of yen) Six months ended Sep. 30, 2016:
Six months ended Sep. 30, 2015:
Net income per share
Yen
57.20
45.73

Six months ended Sep. 30, 2016
Six months ended Sep. 30, 2015

Profit attributable toowners of parent

Ordinary income%

Millions of yen%

1,582 21.4
1,303
8.0
1,111 (up 30.5%)851 (up 8.6%)

1,074
859

25.1
10.3

Diluted net income per share
Yen-(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen

Shareholders’ equity ratio Net assets per share%

As of Sep. 30, 2016
8,314
5,594
As of Mar. 31, 2016
7,331
4,708
Reference: Shareholders’ equity (millions of yen)
As of Sep. 30, 2016:
5,594

Yen

67.3
64.2
As of Mar. 31, 2016: 4,708

297.79250.64

2. Dividends
1Q-end2Q-endYen

Dividend per share
3Q-endYear-end

Total

Yen

Yen

Yen

Yen

Fiscal year ended Mar. 31, 2016
13.00
Fiscal year ending Mar. 31, 2017
14.00
Fiscal year ending Mar. 31, 2017 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None

-

12.00

25.00

-

13.00

27.00

3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2017 (April 1, 2016 – March 31, 2017)
Net sales
Millions of yen(Percentages represent year-on-year changes.)
Profit attributable to
Net income
Ordinary income
owners of parent
per share

Operating income

Millions of yen%

Millions of yen%

Yen

13,600
8.8
1,770
4.9
1,820
Full year
Note: Revisions to the most recently announced consolidated forecast: None%

Millions of yen

%

4.8

1,238

5.8

65.89

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
(2) Application of special accounting methods for presenting quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None
Note: Please refer to page 4 of the attachments “2. Matters Related to Summary Information (Notes), (3) Changes in
Accounting Policies and Accounting-based Estimates, and Restatements” for more details.

(4) Number of shares outstanding (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Sep. 30, 2016:

19,098,576 shares

As of Mar. 31, 2016:

19,098,576 shares

As of Mar. 31, 2016:

310,980 shares

2) Number of treasury shares at the end of the period
As of Sep. 30, 2016:

310,980 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2016:

18,787,596 shares

Six months ended Sep. 30, 2015:

18,787,596 shares* Indication of quarterly review procedure implementation status
The quarterly review procedures for the quarterly consolidated financial statements based on the Financial Instruments andExchange Act have not been completed at the time of disclosure.
* Explanation of appropriate use of earnings forecasts, and other special items
Forecasts of future performance in these materials are based on assumptions judged to be valid and information available to theCompany’s management at the time the materials were prepared. These materials are not promises by the Company regarding
future performance. Actual results may differ significantly from these forecasts for a number of reasons. For discussion of theassumptions and other factors considered by the Company in preparing the above projections, please refer to page 3 of theattachments “1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated
Forecast and Other Forward-looking Statements.”

QUICK CO.,LTD. (4318) Financial Results for the Second Quarter of FY3/17

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first half of the fiscal year ending March 31, 2017, the Japanese economy was affected by a decline in
consumer spending due to various factors including the impact of the Kumamoto earthquake in April, and the heavy
rain and typhoon damage that occurred in the second quarter. In addition, the volatility in the stock market and in
the exchange rate in response to the deceleration in the Chinese economy, and the decision of the United Kingdom
to exit the EU, resulted in a persistent strong sense of stagnation across the economy in general.
With regard to the domestic employment situation, structural factors such as the falling birthrate and aging
population are behind the declines in the labor force and the working-age population. This has given impetus to awide range of industries to secure human resources. Reflecting these trends, the overall (seasonally adjusted)
unemployment rate in August 2016 declined to 3.1%, showing signs of declining further to the 2% level. As a result,all employment indices continued to improve and the effective opening-to-application ratio (seasonally adjusted)reached 1.37 times.
Under these conditions, in the Recruiting Business the handling of recruiting advertisements was favorable in the
mid-career hiring domain in relation to the hiring of temporary staff and part-time workers. In the new graduate
hiring domain, the handling of new recruiting ads targeting university students scheduled to graduate in March 2017
was steady. As internship programs are catching on, handling of advertisements targeting university students
scheduled to graduate in March 2018 also increased. Furthermore, our dealings in personnel business contracting
services (in which we act as an agent for a part of recruiting operations) increased in areas such as recruiting
pamphlets and other recruitment tools (e.g. aptitude tests).
Segment sales increased 13.7% year-on-year to 1,494 million yen and operating income increased 7.0%
year-on-year to 329 million yen.
In personnel placement of the Human Resources Services Business, corporate recruiting needs in construction andcivil engineering, manufacturing and other sectors remained high, leading to solid performance targeting generalcompanies. The introduction of nurses also led to favorable operating performance, given the vigorous recruitingneeds of hospitals and nursing care facilities.
In these sectors and categories with high recruiting needs, competition with other companies to attract registrants
continued to increase. Against this backdrop, one of the most popular additional items of new content on the“Kango-roo!” nurse-only community site proved to be “Understanding with video! Nursing technology”. Similarly,
we also worked to enhance the various sites we operate and to reinforce the services we offer by boosting the powerof our promotions to attract new registrants. In these ways, we strove to differentiate ourselves from our competitors
and to enhance customer satisfaction.
Furthermore, our businesses in temporary staffing, temporary-to-permanent staffing and business contracting, as
well as in our part-time staff placement, have all continued to achieve steady performances. Moreover, the dispatchneeds for care workers and other such workers in the medical and welfare sectors are growing. The same is true ofstaff placement in PC setup and other IT-related areas, etc. It is against this backdrop that our business operations inthese areas expanded steadily.
With the employment situation improving, the number of job seekers looking for full-time employment increased.
Competition also intensified in the medical and welfare sectors. These factors continued to make it more difficult to
attract new registrants seeking temporary assignments, so we stepped up promotion efforts.
Segment sales increased 22.9% year-on-year to 4,611 million yen and operating income increased 17.9%
year-on-year to 1,415 million yen.
In the Information Publishing Business, the performances of our town advertising operations such as housing
advertising and shop advertising in mainstream lifestyle information magazines were strong. This in turn meant that1

QUICK CO.,LTD. (4318) Financial Results for the Second Quarter of FY3/17

the performance in all of our issuing areas of Ishikawa, Toyama and Niigata was favorable. Our folding flyers, anddoor-to-door distribution businesses achieved growth. “Iezukuri Navi” a home information magazine, and concierge
services such as “Cococolor iezukuri,” “Cococolor tenshoku” and “Cococolor wedding” continued to perform
steadily.
Under these circumstances, the Hokuriku bridal information magazine “Kekkon Sanka” was given a full makeoverof the configuration of whole the magazine with the emphasis being placed on articles featuring real-life examples.
These have featured topics such as the “Local town charm - Re-discovery” concept, and a “Shumatsu, Kanazawa
Asobi” article themed as a guide book targeted at adult women going out, etc. We have worked hard to respond to
our readers’ needs for more familiar and realistic information.
Segment sales increased 9.3% year-on-year to 861 million yen and operating income increased 985.0% year-on-year
to 5 million yen.
In other businesses, such as Internet-Related Business, we have seen a steady increase in advertising revenues for“Nihon no Jinjibu (Japan’s Human Resources Department),” an information portal site pertaining to personnel andlabor. Strong sales promotion needs centering on recruitment of companies in the personal service sectors drove therevenue growth.
In this environment, we issued “Nihon no Jinjibu White Paper 2016” which is a summary of the actual situation ofhuman resources at 4,036 companies across the country. We also newly opened our “Nihon no Jinjibu HR
Academy,” a learning site for professionals in HR divisions of business corporations and our “Nihon no Jinjibu HR
School,” a learning site for professionals in the HR services industry. In this way, we strive to support the formationof mutual support networks among the members of “Nihon no Jinjibu”,” and also to further promote the “Nihon no
Jinjibu” brand.
In Overseas Business, the performance of QUICK USA, Inc., has improved significantly. In addition to theimprovement in the employment situation due to the gradual expansion of the US economy it has become
increasingly difficult for foreigners to obtain working visas. Against this background, the personnel placement andtemporary staffing operations of the Los Angeles office, and the personnel placement business of the New York
office have progressed smoothly. Consequently, this segment posted strong results.
Shanghai Quick CO., LTD. expanded its recruitment consulting business as client companies continued to add staff
even as China’s economy continued decelerate. In the mainstay personnel and labor consulting operations, thecompany shifted focus to capturing large-scale projects, including the development of personnel evaluation systems.
Efforts were also made with follow-up services designed to secure the loyalty of its existing customers. As a result,business results are improving gradually at the Shanghai Quick CO., LTD.
Segment sales increased 13.7% year-on-year to 479 million yen and operating income increased 112.0%
year-on-year to 67 million yen.
As a result of the above-mentioned factors, for the first half of the fiscal year ending March 31, 2017, net sales
increased 18.7% year-on-year to 7,445 million yen, operating income increased 20.8% year-on-year to 1,540 million
yen, ordinary income increased 21.4% year-on-year to 1,582 million yen, and profit attributable to owners of parent
increased 25.1% year-on-year to 1,074 million yen.
(2) Explanation of Financial Position
1) Assets, liabilities and net assets
Total assets at the end of the second quarter of the fiscal year under review were 8,314 million yen, which was 982
million yen more than at the end of the previous fiscal year. This was mainly the result of an increase in cash anddeposits despite a decrease in notes and accounts receivable-trade.
Total liabilities were 2,719 million yen, which was 97 million yen more than at the end of the previous fiscal year.

2

QUICK CO.,LTD. (4318) Financial Results for the Second Quarter of FY3/17

This was mainly the result of increases in income taxes payable, provision for bonuses and accrued expenses despitea decrease in accounts payable-trade.
Total net assets were 5,594 million yen, which was 885 million yen more than at the end of the previous fiscal year.
This was mainly the result of an increase in retained earnings due to the booking of profit attributable to owners ofparent. Consequently, the shareholders’ equity ratio increased 3.1 percentage points from the end of the previous
fiscal year to 67.3%.
2) Cash flows
Cash and cash equivalents (hereinafter referred to as “net cash”) increased 1,138 million yen from the end of theprevious fiscal year to 4,539 million yen at the end of the second quarter 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 were as follows.
Cash flows from operating activities
Net cash provided by operating activities totaled 1,490 million yen. Negative factors include income taxes paid of
315 million yen and a decrease of 309 million yen in notes and accounts payable-trade. Positive factors include
profit before income taxes of 1,582 million yen.
Cash flows from investing activities
Net cash used in investing activities totaled 112 million yen. Negative factors include purchase of investment
securities of 60 million yen and purchase of non-current assets of 52 million yen.
Cash flows from financing activities
Net cash used in financing activities totaled 232 million yen. Negative factors include cash dividends paid of 225
million yen.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
At this point, there are no revisions to the full-year consolidated earnings forecast for the fiscal year ending March
31, 2017 that was announced in the “Summary of Consolidated Financial Results for the Fiscal Year Ended March
31, 2016 (Japanese GAAP)” on April 28, 2016.
An announcement will be made promptly if the review of impact on the Group’s business performance requires arevision to these forecasts.

3

QUICK CO.,LTD. (4318) Financial Results for the Second Quarter of FY3/17

2. Matters Related to Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period
Not applicable.
(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements
Not applicable.
(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements
Changes in Accounting Policies
Application of Practical Solution on a Change in Depreciation Method due to Tax Reform 2016
Following the revision of Corporation Tax Act, the Company has applied the “Practical Solution on a Change inDepreciation Method due to Tax Reform 2016” (Accounting Standards Board of Japan (ASBJ) Practical Issues Task
Force (PITF) No. 32, June 17, 2016) from the first quarter of the current fiscal year, and changed the depreciation
method for facilities attached to buildings and structures acquired on or after April 1, 2016, from thedeclining-balance method to the straight-line method.
The effect of this change on the operating income, ordinary income and profit before income taxes in the first half isinsignificant.
(4) Additional Information
Application of Implementation Guidance on Recoverability of Deferred Tax Assets
The Company has applied the “Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ
Guidance No. 26, March 28, 2016) from the first quarter of the current fiscal year.

4

QUICK CO.,LTD. (4318) Financial Results for the Second Quarter of FY3/17

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(Thousands of yen)
Second quarter of FY3/17(As of Sep. 30, 2016)

FY3/16(As of Mar. 31, 2016)
AssetsCurrent assets
Cash and deposits

3,430,787

4,569,286

Notes and accounts receivable-trade

1,625,089

1,367,418

Deferred tax assets

139,289

178,482

Other

301,898

241,870

Allowance for doubtful accounts(8,592)(9,871)

5,488,472

6,347,185

388,876

372,528

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

1,003

2,732

Tools, furniture and fixtures, net

50,21543,148Land

276,869

276,869

Leased assets, net

11,6009,758

Total property, plant and equipment

728,565

705,036

27,07821,796

Other

158,711

172,646

Total intangible assets

185,789

194,443

Investment securities

528,812663,509

Lease deposits

362,695

361,241

Intangible assets
Leased assets

Investments and other assets

Deferred tax assets
Other

920

1,881

40,30944,977

Allowance for doubtful accounts(4,193)(3,961)

Total investments and other assets

928,544

1,067,648

1,842,899

1,967,128

7,331,371

8,314,313

Total non-current assets
Total assets

5

QUICK CO.,LTD. (4318) Financial Results for the Second Quarter of FY3/17

FY3/16(As of Mar. 31, 2016)(Thousands of yen)
Second quarter of FY3/17(As of Sep. 30, 2016)

Liabilities
Current liabilities
Accounts payable-trade604,301

228,652

Short-term loans payable

191,402

191,402

Accounts payable-other

528,016

498,852

Accrued expenses

309,649

345,059

Income taxes payable311,459

567,142

Provision for bonuses

242,456

348,937

Provision for repayment

15,60019,900Other

268,264

354,7142,471,149

2,554,662

Deferred tax liabilities

89,829111,053

Asset retirement obligations

34,82135,157

Other

26,71818,743

Total current liabilities
Non-current liabilities

Total non-current liabilities
Total liabilities

151,368

164,954

2,622,518

2,719,616

351,317351,317

Net assets
Shareholders’ equity
Capital stock
Capital surplus

307,998

307,998

Retained earnings

3,825,954

4,675,096

Treasury shares(18,975)(18,975)

Total shareholders’ equity

4,466,294

5,315,436

Valuation difference on available-for-sale securities

231,507284,404

Foreign currency translation adjustment

11,051(5,144)

Total accumulated other comprehensive income

242,558

279,260

Accumulated other comprehensive income

Total net assets
Total liabilities and net assets

6

4,708,853

5,594,696

7,331,371

8,314,313

QUICK CO.,LTD. (4318) Financial Results for the Second Quarter of FY3/17(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Six-month Period)First six months of FY3/16(Apr. 1, 2015 – Sep. 30, 2015)(Thousands of yen)First six months of FY3/17(Apr. 1, 2016 – Sep. 30, 2016)

Net sales

6,274,848

7,445,831

Cost of sales

2,283,925

2,621,956

Gross profit

3,990,922

4,823,875

Selling, general and administrative expenses

2,715,306

3,283,397

Operating income

1,275,615

1,540,477

277

46

Non-operating income
Interest income
Dividend income

6,955

7,348

Sale cooperation fee

12,81021,400Book sales commission

5,827

6,137

Other

4,642

8,767

Total non-operating income

30,512

43,700

1,575

1,395

Non-operating expenses
Interest expenses
Foreign exchange losses

534

-

Other

33

54

Total non-operating expenses

2,142

1,450

1,303,985

1,582,727

Loss on sales of non-current assets-

528

Total extraordinary losses-

528

1,303,985

1,582,199

Ordinary income
Extraordinary losses

Profit before income taxes
Income taxes-current

407,977

549,420

Income taxes-deferred

39,287(41,814)

Total income taxes

447,265

507,606

Profit856,720

1,074,592

Loss attributable to non-controlling interests(2,398)-

Profit attributable to owners of parent

859,119

1,074,592

7

QUICK CO.,LTD. (4318) Financial Results for the Second Quarter of FY3/17

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)First six months of FY3/16(Apr. 1, 2015 – Sep. 30, 2015)(Thousands of yen)First six months of FY3/17(Apr. 1, 2016 – Sep. 30, 2016)

856,720

1,074,592

ProfitOther comprehensive income
Valuation difference on available-for-sale securities(7,020)52,897

1,585(16,195)(5,435)36,701

851,284

1,111,294

Comprehensive income attributable to owners of parent

853,662

1,111,294

Comprehensive income attributable to non-controllinginterests(2,377)-

Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to8

QUICK CO.,LTD. (4318) Financial Results for the Second Quarter of FY3/17(3) Quarterly Consolidated Statement of Cash Flows(Thousands of yen)First six months of FY3/16
First six months of FY3/17(Apr. 1, 2015 – Sep. 30, 2015) (Apr. 1, 2016 – Sep. 30, 2016)
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts

1,303,985

1,582,199

45,82460,293

(306)

1,046

Increase (decrease) in provision for bonuses(94,101)

106,481

Increase (decrease) in provision for directors’ bonuses(30,700)

-

2,900

4,300

(7,232)(7,395)

1,575

1,395

Increase (decrease) in provision for repayment
Interest and dividend income
Interest expenses
Loss (gain) on sales of non-current assets-

528

Decrease (increase) in notes and accounts receivable-trade

331,991

257,374

Increase (decrease) in notes and accounts payable-trade(344,220)(309,036)

Increase (decrease) in accrued consumption taxes(162,769)

70,973

Other, net(66,976)

32,186

Subtotal

979,971

1,800,347

7,232

7,396

Interest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities(1,573)(1,404)(356,081)(315,926)

629,548

1,490,413(5,722)(6,761)

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

337(56,698)(45,519)

Purchase of investment securities(2,613)(60,639)

Net cash provided by (used in) investing activities(65,034)(112,584)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Repayments of lease obligations

(700)

-

(9,996)-(8,285)(7,343)

Cash dividends paid
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation(168,797)(225,204)(11,741)-

Net cash provided by (used in) financing activities(199,520)(232,547)

Effect of exchange rate change on cash and cash equivalents

1,094(6,782)

Net increase (decrease) in cash and cash equivalents

366,087

1,138,498

Cash and cash equivalents at beginning of period

3,121,376

3,400,787

Cash and cash equivalents at end of period

3,487,464

4,539,286

9

QUICK CO.,LTD. (4318) Financial Results for the Second Quarter of FY3/17(4) Notes to Quarterly Consolidated Financial Statements
Going-concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Segment and Other Information
Segment Information
I. First six months of FY3/16 (Apr. 1, 2015 – Sep. 30, 2015)
1. Information pertaining to net sales and profit/loss in reportable segments
Reportable Segment

Net sales
Sales to externalcustomers
Inter-segment
sales and transfers
Total
Segment profit

Recruiting
Business

Human
Resources
Services
Business

Information
Publishing
Business

1,313,635

3,751,987

383(Thousands of yen)Amount in thequarterly
Adjustment consolidated(Note 2)statement ofincome(Note 3)

Subtotal

Other(Note 1)

Total

787,586

5,853,209

421,639

6,274,848-

6,274,848

-

5,130

5,514

40,712

46,227(46,227)-

1,314,019

3,751,987

792,717

5,858,724

462,351

6,321,075(46,227)6,274,848

307,870

1,200,312

513

1,508,697

32,0291,540,726(265,110)

1,275,615

Notes: 1. “Other” represents the businesses which are not included in any of the reportable segments and mainly consist ofInternet-Related Business and Overseas Business.
2. The (265,110) thousand yen adjustment to segment profit includes elimination for inter-segment transactions of
62,549 thousand yen, and (327,659) thousand yen in company-wide costs that cannot be allocated to any specificreportable segments. Company-wide costs consist primarily of expenses related to the administration division,
including general affairs and accounting at the Company.
3. Segment profit is adjusted with operating income shown on the quarterly consolidated statement of income.
2. Information pertaining to impairment losses of non-current assets, goodwill, etc. in reportable segments
Not applicable.

10

QUICK CO.,LTD. (4318) Financial Results for the Second Quarter of FY3/17

II. First six months of FY3/17 (Apr. 1, 2016 – Sep. 30, 2016)
1. Information pertaining to net sales and profit/loss in reportable segments
Reportable Segment

Net sales
Sales to externalcustomers
Inter-segment
sales and transfers
Total
Segment profit(Thousands of yen)Amount in thequarterly
Adjustment consolidated(Note 2)statement ofincome(Note 3)

Recruiting
Business

Human
Resources
Services
Business

Information
Publishing
Business

Subtotal

Other(Note 1)

Total

1,494,001

4,611,421

861,049

6,966,472

479,359

7,445,831-

7,445,831

1,887

1,910

3,547

7,344

35,66043,004(43,004)-

1,495,888

4,613,331

864,596

6,973,816

515,020

7,488,836(43,004)

7,445,831

329,502

1,415,132

5,572

1,750,207

67,912

1,818,120(277,642)

1,540,477

Notes: 1. “Other” represents the businesses which are not included in any of the reportable segments and mainly consist ofInternet-Related Business and Overseas Business.
2. The (277,642) thousand yen adjustment to segment profit includes elimination for inter-segment transactions of
63,072 thousand yen, and (340,715) thousand yen in company-wide costs that cannot be allocated to any specificreportable segments. Company-wide costs consist primarily of expenses related to the administration division,
including general affairs and accounting at the Company.
3. Segment profit is adjusted with operating income shown on the quarterly consolidated statement of income.
2. Information pertaining to impairment losses of non-current assets, goodwill, etc. in reportable segments
Not applicable.

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

11