Summary of Consolidated Financial Results for the First Quarterof the Fiscal Year Ending March 31, 2021
(Three Months Ended June 30, 2020)[Japanese GAAP]
July 31, 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 filing of Quarterly Report:
August 7, 2020
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: None
Holding of quarterly financial results meeting:None(All amounts are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2021
(April 1, 2020 – June 30, 2020)(1) Consolidated results of operations(Percentages represent year-on-year changes.)
Net sales

Operating profit

Millions of yen%

Millions of yen% Millions of yen

Three months ended Jun. 30, 2020
6,302
2.2
1,924
0.9
Three months ended Jun. 30, 2019
6,163
7.5
1,907
6.5
Note: Comprehensive income (millions of yen) Three months ended Jun. 30, 2020:Three months ended Jun. 30, 2019:%

Millions of yen

%

1,931
0.7
1,917
6.6
1,547 (up 10.5%)
1,401 (up 6.9%)

1,378
1,318

4.5
7.6

Net income per share

Diluted net income per share

Yen

Yen

73.16
69.92

-

Three months ended Jun. 30, 2020Three months ended Jun. 30, 2019

Profit attributable toowners of parent

Ordinary profit(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen

Shareholders’ equity ratio Net assets per share%

As of Jun. 30, 2020
14,917
10,578
As of Mar. 31, 2020
13,5589,464
Reference: Shareholders’ equity (millions of yen)
As of Jun. 30, 2020: 10,577

Yen

70.9
69.8
As of Mar. 31, 2020: 9,459

561.49502.192. Dividends
1Q-end2Q-endYen

Fiscal year ended Mar. 31, 2020
Fiscal year ending Mar. 31, 2021
Fiscal year ending Mar. 31, 2021 (forecast)
Note: Revisions to the most recently announced dividend forecast: None

Dividend per share
3Q-endYear-end

Total

Yen

Yen

Yen

Yen

22.00

-

23.00

45.00

-

-

-

-

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: -Excluded: 1 (QUICK GLOBAL CO., LTD.)(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: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(4) Number of shares outstanding (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Jun. 30, 2020:

19,098,576 shares

As of Mar. 31, 2020:

19,098,576 shares

As of Mar. 31, 2020:

261,173 shares

2) Number of treasury shares at the end of the period
As of Jun. 30, 2020:

261,173 shares

3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2020: 18,837,403 shares

Three months ended Jun. 30, 2019: 18,857,403 shares* The current quarterly financial report is not subject to quarterly review 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 3 of the attachments “1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation ofConsolidated Forecast and Other Forward-looking Statements.”

QUICK CO., LTD. (4318) Financial Results for the First Quarter of FY3/21

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first three months of the fiscal year ending March 31, 2021 the Japanese economy deteriorated rapidly,
resulting in a very severe situation. This is because both consumer and corporate activities were restricted acrossthe country, which was impacted by voluntarily refraining from going out, reduction of business hours as well as
temporary closure of business operations that were requested in conjunction with the declaration of state of
emergency issued in response to the spread of the COVID-19 infection. While the economic activities began
resuming after the declaration was lifted late May, economic outlook remains uncertain due to fears of a second
wave of the COVID-19 infection.
Japan’s labor market has also been sharply worsening due to COVID-19. The seasonally adjusted job
openings-to-applicants ratio declined for five consecutive months with 1.20 in May 2020 and the seasonallyadjusted unemployment rate also declined for three consecutive months with 2.9% in the same month. That was acomplete turn from the situation a year ago where many corporations across wide range of industries faced
serious labor shortages.
Given this business environment, the QUICK Group expanded operations in new strategic market sectors, andstrengthened coordination between the group companies as well as continued reinforcing the existing services
under the COVID-19 pandemic environment. All of these activities are aimed at differentiating the QUICK Group
from competitors and increasing customer satisfaction by helping solve HR related problems at client companies.
Furthermore, the Group worked on strengthening the business base through restructuring the sales structure inorder to enhance the productivity.
In the Human Resources Service Business, some of our client companies showed a weaker appetite for recruiting
and suspended or delayed their hiring activities in the personnel placement category, being concerned about
deterioration of the results and cautious about the Japanese economy prospect that will be impacted by the spreadof the COVID-19 infection. Meanwhile, semiconductor industry showed a strong recruiting needs, enjoying ademand increase for PCs and smartphones amid accelerating investments mainly related to the fifth-generation(5G) mobile communication systems as well as telecommuting popularization. Additionally, after thestate-of-emergency declaration was lifted, with recruiting needs becoming gradually vigorous in the construction
and civil engineering sector as well as sectors requiring nurses and the like, the personnel placement business for
professionals and technical staff to general companies and that of childcare professionals resulted in a steady
expansion and nurses placement at hospitals and care facilities remained solid. Those are the major results of ourefforts including focusing on selected categories, restructuring of our sales structure and providing an extensive
support to our client companies and registrants who wish to change careers.
In the temporary staffing, temporary-to-permanent staffing and business contracting categories, the number of
workdays of temporary staff in the medical and welfare sectors decreased in the beginning of the quarter, which
was mainly caused by temporary closure at client companies’ facilities, impacted by the spread of the COVID-19
infection and the state-of-emergency declaration. However, after the lifting of the state-of-emergency declaration,
the temporary staffing of nurses and childcare workers continued to show a favorable expansion with gradual
recovery of the number of workdays that led to continuous strong hiring needs. On the other hand, the temporary
staffing for general sectors and categories for clerical jobs as well as sales assistants had poor results due tostandby at home and reduced working hours, primarily due to the temporary closure of and telework adopted byclient companies.
Overall, sales of the Human Resources Service Business increased 9.7% year-on-year to 4,759 million yen andoperating profit also increased 18.7% year-on-year to 2,136 million yen.
In the Recruiting Business, the handling of recruiting events sharply decreased in the new college graduate
category because the COVID-19 pandemic caused joint information meetings and recruiting events hosted by
Rikunabi to be canceled until August 2020. Additionally, as client companies have been reviewing the budget andschedule for new graduates recruiting, the volume of advertisements remained low in our recruitment websites
targeting March 2021 new college graduates and our internship websites for March 2022 new college graduates.
In the mid-career hiring domain, sales of the job placement service under the “Indeed” brand almost doubled
1

QUICK CO., LTD. (4318) Financial Results for the First Quarter of FY3/21

despite the COVID-19 pandemic, primarily underpinned by strong recruitment needs in the fields such as
medical/nursing care and logistics. However, the volume of recruiting advertisements for full-time employees,
part-time workers, and potential registrants for temporary staffing dropped drastically. This was because
restaurants and client companies in sales, service, temporary staffing, and other sectors have been affected by
COVID-19 related measures such as shortened business hours, business suspension requests, and encouraged
teleworking and they considerably reduced the advertisement placement.
Overall, sales of the Recruiting Business decreased 45.2% year-on-year to 464 million yen and operating loss was
139 million yen, compared with operating profit of 198 million yen in the same period of the previous fiscal year.
In the Information Publishing Business, the volume of “Indeed” business remained favorable. However, lifestyle
information magazines suffered significant decline in the placement of sales promotion advertisements because
our clients such as restaurants, service industries, and beauty sectors faced worsening business climate partly due
to the impact of shortened business hours, business suspension requests, and other measures induced by the
COVID-19 pandemic. Additionally, the operating performance declined partly because a recovery trend after thelifting of the state of emergency failed to offset decreased advertisement to announce an event in the housing
domain.
In the services other than media, the concierge services we operate under the “cococolor” brand enjoyed a surge
in the career change domain thanks to successful job placement in April, and became a driving force to enhancethe operating performance of the entire concierge services. However, sales from posting services including flyers
inserted in lifestyle information magazines were sluggish, impacted by the lowering needs for sales promotion
from client companies amid the COVID-19 pandemic.
Overall, sales of the Information Publishing Business decreased 16.3% year-on-year to 417 million yen andoperating loss was 1 million yen, compared with operating profit of 41 million yen in the same period of theprevious fiscal year.
In the Other Businesses, the IT & Internet-Related Business category hosted a HR-related event, “HR Conference2020 - Spring edition -,” under the “Nihon no Jinjibu” (Japan’s Human Resources Department) brand in May
2020 in which all the lectures and presentations were switched to online live streaming as a COVID-19 measure,and the event attracted a record number of visitors. In the HR solutions industry, on the back of the COVID-19
pandemic, sales promotion needs decreased mainly in recruiting companies and those providing on-site
face-to-face services like group training. Thus, we recorded decreased advertising revenues from our mainstay“Nihon no Jinjibu” portal and other websites. However, HR Vision Co., Ltd. posted flat profit, primarily
supported by successful online events.
Kronos Co., LTD., in the learning field, started to offer group training for newly hired IT engineers online toprevent COVID-19 after gaining an understanding of client companies anxious about on-site group training.
Furthermore, operating performance remained favorable, backed by new training needs obtained throughaggressive proposals for upskilling engineers of client companies which suspended or broke off development
projects following the COVID-19 pandemic. In contrast, business environment remained tough in the systemdevelopment field, partly reflecting the discontinuation or downsizing of ongoing development projects as well as
sluggish acquisition of new projects. This was because COVID-19 has hurt business performance and cast ashadow over future prospects, which has forced a rapidly increasing number of companies to reduce IT
investments.
In the Overseas Business category, North and Central America (notably in the U.S. and Mexico) were initiallyenjoying the vigorous recruiting needs as follows: In the U.S., local Japanese companies were looking for
full-time Japanese-English bilingual staff, and in Mexico, auto-related manufacturers were requiring full-time
employees for interpreters and sales staff. However, with the spread of COVID-19, lockdown and shelter-in-placeorders in the U.S. as well as stay-at-home requests and other measures in Mexico slowed down economic
activities, and some companies decided to postpone or suspend their recruiting activities, resulting in the rapid
decline in recruiting needs. Therefore, the personnel placement business stalled toward the end of the current firstquarter. Moreover, the temporary staffing business was also weak partly because of the furlough of the staff who
couldn’t respond to teleworking requested by client companies following lockdown or shelter-in-place orders.

2

QUICK CO., LTD. (4318) Financial Results for the First Quarter of FY3/21

As for Asia (notably in China, Vietnam, and Thailand), the personnel placement business in China remained
tough from the beginning of the current first quarter. This was because client companies had to severely limit
their recruiting activities partly as a result of a forced suspension of business under the COVID-19 pandemic.
However, in the personnel and labor consulting service, finely tuned support for business operations and labor
management during the COVID-19 pandemic contributed to improving reliability in client companies andcultivating new clients despite struggles against a postponement or freeze of existing projects. In Vietnam,
business climate was extremely severe from the middle of the current first quarter due to subdued recruiting
activities in the midst of overseas travel restrictions, the temporary suspension of visa issuance, outing
restrictions, and other measures. In Thailand where we established a subsidiary in January 2020, it would taketime to start full-fledged personnel placement services as, like in other countries, the COVID-19 pandemic forcedsome companies to freeze their recruiting activities.
In the U.K., domestic personnel placement services shrank due partly to COVID-19 related lockdown and othermeasures. However, the overall performance of personnel placement businesses remained roughly on par thanks
to favorable international personnel placement services supporting career changes to non-U.K. European
companies (Cross Border Recruitment services) until after the mid-first quarter this year. Additionally, thetemporary staffing business has been solid since the beginning and its business performance was enhanced eventhough some contracts were terminated following the shift to teleworking amid COVID-19.
The Company’s Global Business Division has started to support overseas companies since April 2020 and worked
on promoting the international career change supports (Cross Border Recruitment services), attracting more local
registrants who want to change careers, and supporting other activities.
Overall, sales of the Other Businesses increased 38.6% year-on-year to 660 million yen and operating profit
increased 81.8% year-on-year to 139 million yen.
As a result of these factors, net sales increased 2.2% year-on-year to 6,302 million yen, operating profit increased
0.9% year-on-year to 1,924 million yen, ordinary profit increased 0.7% year-on-year to 1,931 million yen, andprofit attributable to owners of parent increased 4.5% year-on-year to 1,378 million yen.
(2) Explanation of Financial Position
Total assets at the end of the first quarter of the fiscal year under review were 14,917 million yen, which was
1,359 million yen more than at the end of the previous fiscal year. This was mainly the result of increases in cash
and deposits, and investment securities despite a decrease in notes and accounts receivable-trade.
Total liabilities were 4,339 million yen, which was 244 million yen more than at the end of the previous fiscal
year. This was mainly the result of an increase in short-term borrowings despite decreases in accounts
payable-trade and provision for bonuses.
Total net assets were 10,578 million yen, which was 1,114 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 toowners of parent. Consequently, the shareholders’ equity ratio improved 1.1 percentage points from the end of theprevious fiscal year to 70.9%.
(3) Explanation of Consolidated Earnings Forecast and Other Forward-looking Statements
There are many uncertain factors regarding the impact of the spread of COVID-19 on our operating results,
making it difficult for us to reasonably calculate the earnings forecast at this point. Therefore, the consolidated
earnings forecast for the fiscal year ending March 31, 2021 has not yet been determined. The Company will
disclose it promptly when reasonable calculation of earnings forecast becomes available, while closely
monitoring the impact of COVID-19 pandemic going forward.
As stated above, the consolidated earnings forecast for the fiscal year endings March 31, 2021 has been
undetermined, thus the Company decided to withdraw the dividend forecast and will announce it as soon as theearnings forecast becomes available.

3

QUICK CO., LTD. (4318) Financial Results for the First Quarter of FY3/21

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Thousands of yen)First quarter of FY3/21(As of Jun. 30, 2020)

FY3/20(As of Mar. 31, 2020)
AssetsCurrent assets
Cash and deposits

7,469,166

9,173,671

Notes and accounts receivable-trade

2,139,732

1,584,537

423,453

322,613

Other
Allowance for doubtful accounts
Total current assets(2,081)(2,055)

10,030,271

11,078,767

879,320

865,487

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

4,872

2,834

Tools, furniture and fixtures, net

99,880100,452

Land

276,869

276,869

7,360

6,657

Leased assets, net
Construction in progress-

11,2201,268,302

1,263,521

Software367,856

397,579

Software in progress

74,851

113,828

Goodwill

74,84677,707

Other

10,65910,659Total intangible assets

528,213599,774

Investment securities

926,517

1,202,361

Leasehold deposits

656,096

660,676

Deferred tax assets

100,388

68,814

Total property, plant and equipment
Intangible assets

Investments and other assets

Other

52,152

47,110Allowance for doubtful accounts(3,433)(3,504)

Total investments and other assets

1,731,721

1,975,457

Total non-current assets
Total assets

4

3,528,237

3,838,753

13,558,509

14,917,520

QUICK CO., LTD. (4318) Financial Results for the First Quarter of FY3/21(Thousands of yen)First quarter of FY3/21(As of Jun. 30, 2020)

FY3/20(As of Mar. 31, 2020)
Liabilities
Current liabilities
Accounts payable-trade492,927

212,483

Short-term borrowings

192,502

1,137,000

6,000

5,890

Accounts payable-other

838,432

754,689

Accrued expenses

562,217581,065

Income taxes payable552,213427,864

Accrued consumption taxes

349,522454,285

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

571,211

147,92142,000-20,60020,200Other

348,576

271,589

3,976,203

4,012,989

4,500

24,653

Deferred tax liabilities

7,530

195,137

Asset retirement obligations

98,011

98,778Current portion of long-term borrowings

Total current liabilities
Non-current liabilities
Long-term borrowings

Other

8,262

7,770

118,304

326,338

4,094,508

4,339,328

Share capital

351,317351,317

Capital surplus

391,392

391,392

Retained earnings

8,194,756

9,139,214

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Treasury shares(16,005)(16,005)

Total shareholders’ equity

8,921,459

9,865,917

537,307727,796

1,134(16,669)

538,441

711,127

4,099

1,146

9,464,000

10,578,191

13,558,509

14,917,520

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

5

QUICK CO., LTD. (4318) Financial Results for the First Quarter of FY3/21(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Three-month Period)First three months of FY3/20(Apr. 1, 2019 – Jun. 30, 2019)(Thousands of yen)First three months of FY3/21(Apr. 1, 2020 – Jun. 30, 2020)

Net sales

6,163,990

6,302,181

Cost of sales

1,804,391

1,873,008

Gross profit

4,359,599

4,429,172

Selling, general and administrative expenses

2,452,526

2,504,872

Operating profit

1,907,072

1,924,299

Non-operating income
Interest income

138

426

Dividend income

6,531

5,329

Other

4,647

3,032

Total non-operating income

11,316

8,788

469

427

Non-operating expenses
Interest expenses
Foreign exchange losses

-

642

Other

121

23

Total non-operating expenses

591

1,093

1,917,798

1,931,994

14,402-

14,402

-

-

246

178

-

Ordinary profit
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Total extraordinary losses

178

246

1,932,023

1,931,747

466,599

416,343

Income taxes-deferred

146,929

139,599

Total income taxes

613,528555,943

1,318,494

1,375,804

Profit before income taxes
Income taxes-current

ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

649(2,373)

1,318,445

1,378,178

QUICK CO., LTD. (4318) Financial Results for the First Quarter of FY3/21

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)First three months of FY3/20(Apr. 1, 2019 – Jun. 30, 2019)(Thousands of yen)First three months of FY3/21(Apr. 1, 2020 – Jun. 30, 2020)

1,318,494

1,375,804

76,550190,489

Foreign currency translation adjustment

6,353(18,382)

Total other comprehensive income

82,904

172,106

1,401,399

1,547,911

1,401,317

1,550,864

81(2,952)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities

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

7

QUICK CO., LTD. (4318) Financial Results for the First Quarter of FY3/21(3) Notes to Quarterly Consolidated Financial Statements
Going-concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Segment Information
I. First three months of FY3/20 (Apr. 1, 2019 – Jun. 30, 2019)
1. Information pertaining to net sales and profit/loss in reportable segments
Reportable Segment
Human
Resources
Services
Business

Recruiting
Business

Information
Publishing
Business

Subtotal

Other(Note 1)

Total

(Thousands of yen)Amount in
the quarterly
Adjustment consolidated(Note 2)statement ofincome(Note 3)

Net sales
Sales to external
4,340,828
847,707
499,063 5,687,600 476,390 6,163,990
6,163,990
customers
Inter-segment
2,263
2,980
2,345
7,588
2,474
10,063(10,063)
sales and transfers
Total
4,343,092
850,688
501,408 5,695,189 478,864 6,174,053(10,063)
6,163,990
Segment profit
1,799,289
198,318
41,660 2,039,268
76,727 2,115,995(208,923)
1,907,072
Notes: 1. “Other” represents the businesses which are not included in any of the reportable segments and mainly consistsof the Internet-Related Business and the Overseas Business.
2. The (208,923) thousand yen adjustment to segment profit includes elimination for inter-segment transactions of
55,774 thousand yen, and (264,697) 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
which are not attributable to any reportable segments, including general affairs and accounting at the Company.
3. Segment profit is adjusted with operating profit 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.
II. First three months of FY3/21 (Apr. 1, 2020 – Jun. 30, 2020)
1. Information pertaining to net sales and profit/loss in reportable segments
Reportable Segment
Human
Resources
Services
Business

Recruiting
Business

Information
Publishing
Business

Subtotal

Other(Note 1)

Total

(Thousands of yen)Amount in
the quarterly
Adjustment consolidated(Note 2)statement ofincome(Note 3)

Net sales
Sales to external
4,759,723
464,443
417,654
5,641,821
660,359 6,302,181
6,302,181
customers
Inter-segment
2,559
626
1,491
4,678
13,202
17,880(17,880)
sales and transfers
Total
4,762,283
465,070
419,146
5,646,500
673,561 6,320,062(17,880)
6,302,181
Segment profit
2,136,068(139,675)(1,259) 1,995,133
139,506 2,134,640(210,340)
1,924,299(loss)
Notes: 1. “Other” represents the businesses which are not included in any of the reportable segments and mainly consists of
the IT and Internet-Related Business and the Overseas Business.
2. The (210,340) thousand yen adjustment to segment profit (loss) includes elimination for inter-segment transactionsof 31,163 thousand yen, and (241,504) 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 theCompany.
3. Segment profit (loss) is adjusted with operating profit 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
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers
who prefer an English translation.
8