Summary of Consolidated Financial Results for the Second Quarterof the Fiscal Year Ending March 31, 2020
(Six Months Ended September 30, 2019)[Japanese GAAP]
October 31, 2019

Company name: QUICK CO., LTD.

Listing: First Section, Tokyo Stock Exchange
URL: https://919.jp/

Stock code:
4318
Representative: Tsutomu Wano, Chairman
Contact:
Yasuhiko Hirata, Director, Executive Officer,
General Manager of Administration and Accounting Division
Tel: +81-6-6366-0919
November 13, 2019
Scheduled date of filing of Quarterly Report:
December 2, 2019
Scheduled date of payment of dividend:
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, 2020
(April 1, 2019 – September 30, 2019)(1) Consolidated results of operations
Net sales
Millions of yen(Percentages represent year-on-year changes.)
Profit attributable toOrdinary profit
owners of parent

Operating profit% Millions of yen% Millions of yen

Six months ended Sep. 30, 2019
10,8649.3
2,305 14.3
Six months ended Sep. 30, 2018
9,938 18.2
2,017 19.1
Note: Comprehensive income (millions of yen) Six months ended Sep. 30, 2019:
Six months ended Sep. 30, 2018:
Net income per share

Diluted net income per share

Yen

Yen

82.34
73.56

-

Six months ended Sep. 30, 2019
Six months ended Sep. 30, 2018

% Millions of yen

2,321 14.2
2,033 16.5
1,529 (down 6.3%)
1,632 (up 20.7%)

1,552
1,383

%

12.2
12.6

(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, 201912,8759,454
As of Mar. 31, 201912,592
8,358
Reference: Shareholders’ equity (millions of yen)
As of Sep. 30, 2019:
9,452

Yen

73.4
66.4
As of Mar. 31, 2019: 8,357

501.28443.192. Dividends
1Q-end2Q-endYen

Fiscal year ended Mar. 31, 2019
Fiscal year ending Mar. 31, 2020
Fiscal year ending Mar. 31, 2020 (forecast)
Note: Revisions to the most recently announced dividend forecast: None

Dividend per share
3Q-endYear-end

Total

Yen

Yen

Yen

Yen

19.00
22.00

-

23.00

42.00

-

22.00

44.00

3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2020 (April 1, 2019 – March 31, 2020)
Net sales
Millions of yen(Percentages represent year-on-year changes.)
Profit attributable to
Net income
Ordinary profit
owners of parent
per share

Operating profit%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

Full year
20,9409.2
2,920 13.1
2,950
4.7
Note: Revisions to the most recently announced consolidated earnings forecast: None

1,995

1.5

105.84

* 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: 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 Sep. 30, 2019:19,098,576 shares

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

As of Mar. 31, 2019:

241,173 shares

2) Number of treasury shares at the end of the period
As of Sep. 30, 2019:

241,173 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2019:18,857,403 shares

Six months ended Sep. 30, 2018:

18,811,523 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 b y 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 refe r
to 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 Second Quarter of FY3/20

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first six months of the fiscal year ending March 31, 2020, the Japanese economy saw corporate
earnings remain resilient and employment and consumer spending continue to improve. However, we need to be
cautious about the economic outlook in view of a number of factors such as concerns over the slowdown in theworld economy fueled by the prolonged trade friction between the U.S. and China, the slowdown in the Chinese
economy, and the Brexit from the European Union as well as the impact of the consumption tax hike from
October on the domestic consumption.
In Japan’s labor market, a shortage of workers is becoming even more severe in a wide range of sectors becauseof structural factors such as declines in the labor force and the working-age population caused by the declining
birthrate and aging population. In August 2019, all the employment-related indicators continued to reflect Japan’slabor shortage. Among others, the seasonally adjusted job openings-to-applicants ratio was 1.59 and theseasonally adjusted unemployment rate was 2.2%.
Given this business environment, the QUICK Group expanded operations in new strategic market sectors,
developed new services and strengthened coordination between the group companies as well as continued
reinforcing the existing services. All of these activities are aimed at differentiating the QUICK Group fromcompetitors and increasing customer satisfaction by helping solve recruiting and other labor -related problems atclient companies. Furthermore, the QUICK Group has been building a stronger foundation for business operations
by aggressively recruiting people with outstanding skills and making other investments in human resources.
Under the situation mentioned above, the personnel placement category of the Human Resources Services
Business achieved favorable performance for construction management engineers in the construction and civilengineering sector. While some companies showed cautious attitude towards recruiting activities in view of the
U.S.-China trade friction, our efforts including focusing on selected clients and strengthening our sales activities
resulted in steady expansion in the placements of professionals and technical staff to companies. The personnel
placement business for nurses at hospitals, nursing care facilities and other health care facilities also maintained asolid performance as we provide meticulous support for the registrants and conduct effective promotions amid
intensifying competition brought by competitors who enhanced promotions and investments in human resources.
In the temporary staffing, temporary-to-permanent staffing and business contracting categories, the temporary
staffing of nurses and childcare workers continued to show a favorable performance thanks to effective
promotions to attract registrants in the medical and welfare sectors. Amid the ongoing situation where hiring
regular employees and securing full-time temporary staff are difficult as a result of the improving employme nt
situation in Japan, the business remained strong, also in the temporary staffing for highly specialized IT andinternet-related jobs as well as clerical jobs.
Overall, the segment sales increased 14.1% year-on-year to 7,322 million yen and operating profit increased
13.5% year-on-year to 2,130 million yen.
In the Recruiting Business, under the continuing student-dominant seller’s market in the new college graduate
category, the volume of business went well, particularly in the field of advertisements posted on our internshipwebsite and recruiting events, targeting students who will graduate in March 2021. Furthermore, in the mid-career
hiring domain, the business of recruiting advertisements to hire regular employees and part -time workers also
remained resilient against the backdrop of the increasing severity of the labor shortage in Japan. The job
placement service under the “Indeed” brand, which started at full scale in the previous fiscal year, also expanded
steadily owing to remarkably strong demands from our client companies supported by the tough hiring
environment.
For some of our media for recruiting registration of temporary staff, the amount of sales decreased year -on-year.
This is because, from December 2018, the form of contract was changed from the sales agency contract to thesales outsourcing contract, resulting in the recognition of sales reflecting handling commissions only. However,1

QUICK CO., LTD. (4318) Financial Results for the Second Quarter of FY3/20

we saw a steady increase in gross profit, which is net sales less advertising expenses as cost of services purchase.
Overall, the segment sales decreased 3.1% year-on-year to 1,689 million yen but operating profit increased 16.2%
year-on-year to 410 million yen.
In the Information Publishing Business, the performance of “Iezukuri Navi,” a housing information magazine,and “Kekkon SANKA,” a wedding information medium in Hokuriku, and lifestyle information magazines
remained almost flat year-on-year. On the other hand, the volume of business of “Indeed,” which started from thesecond half of the previous year, expanded thanks to the tough hiring environment due to personnel shortages.
Meanwhile, in the services other than media, sales from posting services including flyers inserted in newspapers
increased steadily. Moreover, the concierge services we operate under the “cococolor” brand posted remarkable
growth in all of the service lines of job change, house designing and wedding.
Overall, the segment sales increased 8.6% year-on-year to 999 million yen and operating profit increased 93.1%
year-on-year to 74 million yen.
In the Other businesses segment, the Internet-Related Business category had rather sluggish performance for theadvertisement revenue from “Jinzai Bank Net,” a portal site on which jobseekers can make bulk registration todifferent personnel placement as well as from the agency service business for internet advertisement. However,
advertising revenue from “Nihon no Jinjibu” (Japan’s Human Resources Department), an information portal site
for human resources and labor relations, continued to perform well thanks to increasing interest in HR solution
businesses that support corporate clients’ personnel strategies under initiatives that companies took toward work
style reforms, utilization of IT technology and improvement of workplace environment.
In the Overseas Business category, the personnel placement business achieved solid growth against backdrop ofcontinued strong demand for hiring full-time employees by local Japanese companies in North and Central
America (notably in the U.S. and Mexico). As for Asia (notably in China and Vietnam), businesses were favorable
in China in the field of advisory services and personnel and labor consulting services including preparation ofinternal regulations. In Vietnam, the recruitment support services for local Japanese companies, mainly in theconstruction, apparel and IT industries also showed favorable performance . Furthermore in the U.K., international
personnel placement services for the job changes from the U.K. to European companies achieved favorable
performance, while domestic personnel placement services and temporary staffing within the U.K. grew sluggish.
QUICK GLOBAL CO., LTD., one of our subsidiaries providing support to overseas companies, incurred some
upfront costs to expand the support system for services including provision of trainings for employees before
being assigned abroad and sales support services.
Overall, sales of the Other businesses segment decreased 0.4% year-on-year to 851 million yen and operating
profit decreased 30.4% year-on-year to 87 million yen.
As a result of these factors, sales and earnings set a new first six-month record just as in the same period of theprevious fiscal year. Net sales increased 9.3% year-on-year to 10,864 million yen, operating profit increased
14.3% year-on-year to 2,305 million yen, ordinary profit increased 14.2% year-on-year to 2,321 million yen, andprofit attributable to owners of parent increased 12.2% year-on-year to 1,552 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 12,875 million yen, which was
283 million yen more than at the end of the previous fiscal year. This was mainly the result of an increase in cash
and deposits despite a decrease in notes and accounts receivable-trade.
Total liabilities were 3,421 million yen, which was 812 million yen less than at the end of the previous fiscal year.
This was mainly the result of decreases in accounts payable-trade and accounts payable-other.
Total net assets were 9,454 million yen, which was 1,095 million yen more than at the end of the previous fiscal

2

QUICK CO., LTD. (4318) Financial Results for the Second Quarter of FY3/20

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 7.0 percentage points from the end of theprevious fiscal year to 73.4%.
2) Cash Flows
Cash and cash equivalents (hereinafter “net cash”) increased 909 million yen from the end of the previous fiscal
year to 7,244 million yen at the end of the second quarter of the fiscal year under review. Outflows were caused
mainly by income taxes paid and dividends paid, while inflows were caused mainly by recording of profit before
income taxes. Cash flows by category for the first six months of the fiscal year under review are as follows.
Cash flows from operating activities
Net cash provided by operating activities decreased 18.5% year-on-year to 1,574 million yen. Positive factors
include recording of profit before income taxes of 2,324 million yen. Negative factors include a decrease of 264
million yen in trade payables and income taxes paid of 633 million yen.
Cash flows from investing activities
Net cash used in investing activities increased 13.1% year-on-year to 227 million yen. Negative factors include
purchase of non-current assets of 337 million yen. Positive factors include proceeds from sales of investment
securities of 112 million yen.
Cash flows from financing activities
Net cash used in financing activities increased 12.6% year-on-year to 433 million yen. Negative factors include
dividends paid of 432 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, 2020, which was announced in the “Summary of Consolidated Financial Results for the Fiscal Year
Ended March 31, 2019 (Japanese GAAP)” on April 26, 2019.
An announcement will be made promptly if the review of impact on the QUICK Group’s business performancerequires a revision to this forecast.

3

QUICK CO., LTD. (4318) Financial Results for the Second Quarter of FY3/20

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/19(As of Mar. 31, 2019)(Thousands of yen)
Second quarter of FY3/20(As of Sep. 30, 2019)

AssetsCurrent assets
Cash and deposits

6,364,521

7,274,129

Notes and accounts receivable-trade

2,061,682

1,807,084

Other621,235

328,986

Allowance for doubtful accounts(2,010)(1,773)

9,045,428

9,408,428

865,528

875,568

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

6,474

5,049

Tools, furniture and fixtures, net

101,584

108,772Land

276,869

276,869

Leased assets, net

10,862

9,079

1,261,318

1,275,338

Software151,609145,307

Software in progress

80,274

157,749

Goodwill

118,858

51,090Other

10,646

10,646

Total intangible assets

361,389364,794

Investment securities

1,154,136

1,082,889

Leasehold deposits

626,310635,078

Deferred tax assets

62,95444,315

Total property, plant and equipment
Intangible assets

Investments and other assets

Other

84,60569,406

Allowance for doubtful accounts(3,843)(4,507)

Total investments and other assets

1,924,162

1,827,183

3,546,870

3,467,315

12,592,299

12,875,744

Total non-current assets
Total assets

4

QUICK CO., LTD. (4318) Financial Results for the Second Quarter of FY3/20(Thousands of yen)
Second quarter of FY3/20(As of Sep. 30, 2019)

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

216,879

Short-term borrowings

189,902

191,002

Accounts payable-other

1,115,052

741,667

Accrued expenses

520,136

502,061

Income taxes payable

646,929

727,332

Accrued consumption taxes

292,621

253,880

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

475,298

342,744

62,450-18,20023,800Asset retirement obligations

679-

203,472

224,378

4,070,375

3,223,745

Deferred tax liabilities

65,28894,976

Asset retirement obligations

86,83092,832

Other

10,998

9,709

Total non-current liabilities

163,117

197,518

4,233,493

3,421,264

351,317351,317

Other
Total current liabilities
Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus

391,392

391,392

Retained earnings

6,968,762

8,087,767

Treasury shares(14,965)(14,965)

Total shareholders’ equity

7,696,505

8,815,510

661,606

644,154(707)(6,870)660,899

637,284

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

1,401

1,685

8,358,806

9,454,480

12,592,299

12,875,744

QUICK CO., LTD. (4318) Financial Results for the Second Quarter of FY3/20(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Six-month Period)First six months of FY3/19(Apr. 1, 2018 – Sep. 30, 2018)(Thousands of yen)First six months of FY3/20(Apr. 1, 2019 – Sep. 30, 2019)

Net sales

9,938,494

10,864,044

Cost of sales

3,499,827

3,674,020

Gross profit

6,438,666

7,190,024

Selling, general and administrative expenses

4,421,026

4,884,849

Operating profit

2,017,639

2,305,174

Non-operating income
Interest income

82

423

Dividend income

6,505

7,192

Other

11,516

11,857

Total non-operating income

18,103

19,473Non-operating expenses
Interest expenses
Foreign exchange losses
Commission expenses

989

996

1,054

964

-

730

128

120

2,172

2,812

2,033,570

2,321,835

Gain on sales of investment securities-

63,338

Total extraordinary income-

63,338

Other
Total non-operating expenses
Ordinary profit
Extraordinary income

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

2,539

178

-

60,1142,539

60,292

2,031,031

2,324,880

Income taxes-current

668,946

715,594

Income taxes-deferred(21,518)

56,264

Total income taxes

647,428

771,858

1,383,602

1,553,021

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

6

(146)

296

1,383,749

1,552,724

QUICK CO., LTD. (4318) Financial Results for the Second Quarter of FY3/20

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)First six months of FY3/19(Apr. 1, 2018 – Sep. 30, 2018)
1,383,602(Thousands of yen)First six months of FY3/20(Apr. 1, 2019 – Sep. 30, 2019)
1,553,021

Valuation difference on available-for-sale securities

259,545(17,451)

Foreign currency translation adjustment(10,523)(6,176)

ProfitOther comprehensive income

Total other comprehensive income

249,021(23,627)

1,632,624

1,529,394

Comprehensive income attributable to owners of parent

1,633,122

1,529,110

Comprehensive income attributable to non-controllinginterests

(497)

283

Comprehensive income
Comprehensive income attributable to7

QUICK CO., LTD. (4318) Financial Results for the Second Quarter of FY3/20(3) Quarterly Consolidated Statement of Cash Flows(Thousands of yen)First six months of FY3/19
First six months of FY3/20(Apr. 1, 2018 – Sep. 30, 2018) (Apr. 1, 2019 – Sep. 30, 2019)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors(and other officers)
Increase (decrease) in provision for repayment
Interest and dividend income
Interest expenses
Loss (gain) on sales of investment securities

2,031,031

2,324,880

78,42786,577-

60,114

7,411

7,085

(6,019)426

10(132,554)-(62,450)

7,400

5,600

(6,587)(7,615)

989

996

-

(63,338)

Loss on retirement of non-current assets

2,539

178

Decrease (increase) in trade receivables

351,691

265,528

Increase (decrease) in trade payables(325,064)(264,238)

38,748(38,341)

Increase (decrease) in accrued consumption taxes
Other, net

44,625

19,071

Subtotal

2,225,204

2,201,920

6,587

7,615

Interest and dividends received
Interest paid

(1,004)(1,015)

Income taxes paid

(299,763)(633,781)

Net cash provided by (used in) operating activities

1,931,023

1,574,739

Purchase of property, plant and equipment(152,490)(232,925)

Purchase of intangible assets(46,059)(104,255)

Purchase of investment securities(2,729)(2,820)Cash flows from investing activities

Proceeds from sales of investment securities
Net cash provided by (used in) investing activities-

112,265(201,279)(227,736)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

-

1,100

(5,564)(1,939)Dividends paid
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Other, net(337,488)(432,998)(42,062)

-

(81)

-

Net cash provided by (used in) financing activities(385,196)(433,838)(5,028)(3,555)

Net increase (decrease) in cash and cash equivalents

1,339,518

909,608

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

5,014,883

6,334,521

51,123-

Cash and cash equivalents at end of period

6,405,525

7,244,129

Repayments of lease obligations

Effect of exchange rate change on cash and cash equivalents

8

QUICK CO., LTD. (4318) Financial Results for the Second Quarter of FY3/20(4) Notes to Quarterly Consolidated Financial Statements
Going-concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Segment Information
I. First six months of FY3/19 (Apr. 1, 2018 – Sep. 30, 2018)
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
6,418,492 1,744,090
921,097 9,083,680 854,813
9,938,494
9,938,494
customers
Inter-segment
176
3,439
4,522
8,138
20,67328,812(28,812)
sales and transfers
Total
6,418,669 1,747,530
925,620 9,091,819 875,487
9,967,307(28,812)
9,938,494
Segment profit
1,877,274
353,161
38,612 2,269,048 125,222
2,394,270(376,630)
2,017,639
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 (376,630 ) thousand yen adjustment to segment profit includes elimination for inter-segment transactions of
69,859 thousand yen, and (446,490) 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 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 six months of FY3/20 (Apr. 1, 2019 – Sep. 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
7,322,485 1,689,947
999,912 10,012,345 851,698 10,864,044
10,864,044
customers
Inter-segment
4,184
6,432
4,250
14,866
4,085
18,951(18,951)
sales and transfers
Total
7,326,669 1,696,380
1,004,162 10,027,212 855,783 10,882,996(18,951)
10,864,044
Segment profit
2,130,687
410,442
74,564 2,615,695
87,194 2,702,889(397,715)
2,305,174
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 (397,715 ) thousand yen adjustment to segment profit includes elimination for inter-segment transactions of
97,036 thousand yen, and (494,751) 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(Significant impairment losses on non-current assets)
The “Other (Overseas Business)” segment reported an impairment loss on goodwill of 60,114 thousand yen for the firstsix months of the fiscal year under review.
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.
9