Summary of Consolidated Financial Results for the First Quarterof the Fiscal Year Ending March 31, 2018
(Three Months Ended June 30, 2017)[Japanese GAAP]
July 31, 2017

Listing: First Section, Tokyo Stock Exchange
Company name: QUICK CO.,LTD.
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 filing of Quarterly Report:
August 10, 2017
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, 2018
(April 1, 2017 – June 30, 2017)(1) Consolidated results of operations(Percentages represent year-on-year changes.)
Net sales
Millions of yen

Operating profit%

Millions of yen% Millions of yen

Three months ended Jun. 30, 2017
4,823 15.6
1,432 10.8
Three months ended Jun. 30, 2016
4,171 20.1
1,293 31.8
Note: Comprehensive income (millions of yen) Three months ended Jun. 30, 2017:
Three months ended Jun. 30, 2016:
Net income per share
Yen
55.77
47.58

Three months ended Jun. 30, 2017
Three months ended Jun. 30, 2016

Profit attributable toowners of parent

Ordinary profit%

Millions of yen%

1,471 11.8
1,315 32.7
1,059 (up 16.7%)
908 (up 39.0%)

1,047
893

17.2
39.3

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

Net assets

Millions of yen

Millions of yen

As of Jun. 30, 2017
As of Mar. 31, 2017
Reference: Shareholders’ equity (millions of yen)

Shareholders’ equity ratio Net assets per share
%

9,266
6,545
9,300
5,796
As of Jun. 30, 2017:
6,541

Yen

70.6
62.3
As of Mar. 31, 2017: 5,796

348.18308.51

2. Dividends
1Q-end2Q-endYen

Fiscal year ended Mar. 31, 2017
Fiscal year ending Mar. 31, 2018
Fiscal year ending Mar. 31, 2018 (forecast)
Note: Revisions to the most recently announced dividend forecast: None

Dividend per share
3Q-endYear-end

Total

Yen

Yen

Yen

Yen

14.00

-

16.00

30.00

17.00

-

17.00

34.00

3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2018 (April 1, 2017 – March 31, 2018)
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%

Yen

First half
8,350 12.1
1,655
7.4
1,698
16,100 10.4
2,170
8.6
2,250
Full year
Note: Revisions to the most recently announced consolidated forecast: None%

Millions of yen

%

7.3
8.5

1,172
1,550

9.1
11.4

62.41
82.50

* 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 Jun. 30, 2017:19,098,576 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 Jun. 30, 2017:

311,038 shares

3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2017: 18,787,541 shares

Three months ended Jun. 30, 2016: 18,787,596 shares* The current quarterly financial report is not subject to quarterly review procedures.

* 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 FY3/18

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, 2018, the gradual recovery of the Japanese
economy continued with the support of exports and the machinery manufacturing sector. As a result, earnings at
companies are increasing. However, there are concerns in Japan about the shortage of workers, particularly at
small and midsize companies. There is also uncertainty about overseas political events, such as the policies of the
Trump administration in the United States. Due to this situation, there is a risk of an economic downturn.
In Japan’s labor market, the shortage of workers is severe, especially outside the manufacturing sector. In May
2017, the job openings-to-applicants ratio was a seasonally adjusted 1.49, which is higher than during Japan’s
asset bubble period. The seasonally adjusted job openings-to-applicants ratio for full-time employees of 0.99
further illustrates the severity of the limited supply of workers in Japan.
During the first quarter, 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 fromcompetitors and increasing customer satisfaction by helping solve recruiting and other labor-related problems atclient companies. In addition, group companies used numerous measures to build a stronger foundation forbusiness operations by increasing investments in human resources. Group companies aggressively recruited new
graduates and other people with outstanding skills, improved compensation for group personnel and took otheractions.
In the Human Resources Services Business, the personnel placement category continued to grow due to anincreasing number of placements of people with specialized skills at companies in many fields. Recruiting needs
remain high in the construction and civil engineering sector and in the automobile, electrical equipment,machinery and other industries in the manufacturing sector. Furthermore, growth continued in the placement ofnurses at hospitals, nursing care facilities and other locations where there is very strong demand for workers.
Growth in nurse placements continued despite heated competition with other human resources companies for theregistration of people for job placements.
QUICK stepped up services and promotions for attracting new registrations of job seekers at all of its websites.
For example, a smartphone site was added to the E&M JOBS website for engineers who want to find another job.
The Kango-roo! website, which is a community website for nursing care professionals, started a Nursing Quizthat provides knowledge and techniques required by clinical nurses. All these activities helped set QUICK apartfrom competitors and enhance customer satisfaction.
In the temporary staffing, temporary-to-permanent staffing and business contracting categories, growth continued dueto the labor shortage associated with declining unemployment in Japan. Sales from the provision of part-time workers
increased, chiefly for IT and Internet jobs. Strong demand for the temporary placement of workers in the medical andwelfare sectors and of childcare workers also contributed to the performance of this category.
Overall, Human Resources Services segment sales increased 19.0% year-on-year to 3,272 million yen and operating
profit increased 11.7% year-on-year to 1,354 million yen.
In the Recruiting Business, hiring new college graduates is extremely difficult because there are more job
openings than new graduates. QUICK used recruiting advertisements targeting students planning to graduate in
March 2018 and participated in joint information meetings, exhibitions and other recruiting events. Demand isalso strong in the mid-year hiring category due to the high earnings of companies and the labor shortage. As aresult, the volume of temporary placement and part-time worker advertisements handled increased. In addition,
the volume of recruiting advertisements for full-time employees was high. However, earnings decreased mainly
because of an increase in personnel expenses resulting primarily from growth in the workforce.
Overall, Recruiting segment sales increased 10.7% year-on-year to 813 million yen and operating profit decreased
2.2% year-on-year to 160 million yen.

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QUICK CO., LTD. (4318) Financial Results for the First Quarter of FY3/18

In the Information Publishing Business, the volume of advertisements remained firm for “Iezukuri Navi,” ahousing information magazine, and “Kekkon Sanka,” a magazine with information for people planning a wedding.
In services other than advertising, posting services businesses using flyers inserted in newspapers and otherpublications achieved growth. In addition, “Cococolor iezukuri,” and other concierge services performed well.
Earnings decreased mainly because of the weak performance of lifestyle information magazines and higher
personnel expenses as the workforce increased.
QUICK launched a number of new media. One is an edition of the “Kanazawa Joho” magazine that provides
information about ramen restaurants in the city of Kanazawa. Another is “namarii,” a smartphone app that allows
people to share videos, pictures and other information about regional accents and dialects of the Japanese
language. For the “Cococolor iezukuri” concierge service, a new office was opened in Toyoma prefecture. There
were also measures to strengthen existing services in anticipation of more growth.
Overall, Information Publishing segment sales decreased 1.4% year-on-year to 435 million yen and operating
profit decreased 89.3% year-on-year to 3 million yen.
In other business, such as Internet-Related Business, advertising revenue continued to increase at “Nihon no
Jinjibu” (Japan’s Human Resources Department), an information portal site for human resources and labor
relations. In May, QUICK held the “HR Conference 2017 Spring” in Tokyo and Osaka. This event has become
well known as Japan’s preeminent human resources event in terms of size and the level of knowledge. Attendanceat this four-day event was more than 10,000. This event made a big contribution to first quarter performance assales in this business rose to an all-time high.
In Overseas Business, the United States is rapidly becoming a sellers’ market for legal foreign workers because ofstricter rules for granting working visas. Competition is intense for signing up workers for job placements.
Despite this challenging environment, the performance of QUICK USA, Inc. improved significantly as personnel
placement and temporary staffing operations continued to grow.
At Shanghai QUICK Co., Ltd., the outlook for slower economic growth in China makes the operating
environment uncertain even though the Chinese economy is currently staging a recovery. This company’s corepersonnel and labor consulting operations performed well, including assistance for the establishment of employee
evaluation systems.
At QUICK GLOBAL MEXICO, S.A. DE C.V., there was a strong performance in the personnel placement
category for interpreters and other workers at the operations of Japanese companies in Mexico, chiefly in theautomobile industry.
Overall, sales in other businesses increased 22.6% year-on-year to 301 million yen and operating profit increased
72.6% year-on-year to 71 million yen.
As a result of these factors, sales and earnings set a new first quarter record. Net sales increased 15.6%
year-on-year to 4,823 million yen, operating profit increased 10.8% year-on-year to 1,432 million yen, ordinary
profit increased 11.8% year-on-year to 1,471 million yen, and profit attributable to owners of parent increased
17.2% year-on-year to 1,047 million yen.
(2) Explanation of Financial Position
Total assets at the end of the first quarter of the fiscal year under review were 9,266 million yen, which was 33
million yen less than at the end of the previous fiscal year. This was mainly the result of decreases in notes andaccounts receivable-trade and deferred tax assets-current, despite an increase in cash and deposits.
Total liabilities were 2,721 million yen, which was 783 million yen less than at the end of the previous fiscal year.
This was mainly the result of decreases in accounts payable-trade and provision for bonuses.
Total net assets were 6,545 million yen, which was 749 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 to2

QUICK CO., LTD. (4318) Financial Results for the First Quarter of FY3/18

owners of parent. Consequently, the shareholders’ equity ratio increased 8.3 percentage points from the end of theprevious fiscal year to 70.6%.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
At this point, there are no revisions to the first-half and full-year consolidated earnings forecast for the fiscal year
ending March 31, 2018 that was announced in the “Summary of Consolidated Financial Results for the Fiscal
Year Ended March 31, 2017 (Japanese GAAP)” on April 28, 2017.
An announcement will be made promptly if the review of impact on the Group’s business performance requires arevision to these forecasts.

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QUICK CO., LTD. (4318) Financial Results for the First Quarter of FY3/18

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet
FY3/17(As of Mar. 31, 2017)(Thousands of yen)First quarter of FY3/18(As of Jun. 30, 2017)

AssetsCurrent assets
Cash and deposits

4,669,428

5,172,934

Notes and accounts receivable-trade

1,784,605

1,378,933

Deferred tax assets

201,772

75,006

Other334,404

258,361

Allowance for doubtful accounts(1,845)(1,527)

6,988,364

6,883,709

391,561

484,499

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

2,749

3,476

Tools, furniture and fixtures, net

64,87776,314

Land

276,869

276,869

7,915

6,994

743,973

848,154

Leased assets

16,514

13,872

Other

203,055

207,706

Total intangible assets

219,569

221,579

Investment securities

882,788847,966

Lease deposits

410,030

408,019

Leased assets, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Deferred tax assets

3,479

4,134

Other

70,99670,940Allowance for doubtful accounts(18,527)(17,507)

Total investments and other assets

1,348,767

1,313,553

2,312,310

2,383,287

9,300,675

9,266,996

Total non-current assets
Total assets

4

QUICK CO., LTD. (4318) Financial Results for the First Quarter of FY3/18(Thousands of yen)First quarter of FY3/18(As of Jun. 30, 2017)

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

269,354

Short-term loans payable

189,902

239,000

Accounts payable-other713,656

624,310

Accrued expenses

376,407426,575

Income taxes payable

522,873357,210

Provision for bonuses

406,918

96,250

Provision for directors’ bonuses

52,450-

Provision for repayment

15,00018,700Asset retirement obligations

1,465

-

369,478473,6023,301,271

2,505,002

Deferred tax liabilities

153,568

160,880

Asset retirement obligations

37,96545,080Other

11,705

10,088

Total non-current liabilities

203,239

216,0483,504,510

2,721,050

351,317351,317

Other
Total current liabilities
Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus

307,998

307,998

Retained earnings

4,728,581

5,462,554

Treasury shares(19,019)(19,043)

Total shareholders’ equity

5,368,878

6,102,827

420,525434,777

6,760

3,802

427,285

438,579

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

-

4,539

5,796,164

6,545,945

9,300,675

9,266,996

QUICK CO., LTD. (4318) Financial Results for the First Quarter of FY3/18(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Three-month Period)First three months of FY3/17(Apr. 1, 2016 – Jun. 30, 2016)(Thousands of yen)First three months of FY3/18(Apr. 1, 2017 – Jun. 30, 2017)

Net sales

4,171,543

4,823,465

Cost of sales

1,280,450

1,602,041

Gross profit

2,891,092

3,221,424

Selling, general and administrative expenses

1,597,677

1,788,594

Operating profit

1,293,414

1,432,829

Non-operating income
Interest income

24

14

Dividend income

6,184

8,394

Sale cooperation fee

10,800-Book sales commission

2,536

5,258

-

20,250Subsidy income
Other

3,403

6,609

Total non-operating income

22,94840,525Non-operating expenses
Interest expenses
Foreign exchange losses

666

623

-

1,658

Other

30

50

Total non-operating expenses

697

2,331

1,315,665

1,471,023

Loss on sales of non-current assets

547-

Total extraordinary losses

547-

1,315,118

1,471,023

359,527

295,079

Ordinary profit
Extraordinary losses

Profit before income taxes
Income taxes-current
Income taxes-deferred

61,691

127,471

Total income taxes

421,218

422,551

Profit893,899

1,048,471

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

6

-

690

893,899

1,047,781

QUICK CO., LTD. (4318) Financial Results for the First Quarter of FY3/18

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)First three months of FY3/17(Apr. 1, 2016 – Jun. 30, 2016)(Thousands of yen)First three months of FY3/18(Apr. 1, 2017 – Jun. 30, 2017)893,899

1,048,471

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

20,792

14,252Foreign currency translation adjustment(6,357)(3,038)

Total other comprehensive income

14,435

11,214

908,334

1,059,686

Comprehensive income attributable to owners of parent

908,334

1,059,075

Comprehensive income attributable to non-controllinginterests-

610

Comprehensive income
Comprehensive income attributable to7

QUICK CO., LTD. (4318) Financial Results for the First Quarter of FY3/18(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 FY3/17 (Apr. 1, 2016 – Jun. 30, 2016)
1. Information pertaining to net sales and profit/loss in reportable segments
Reportable Segment(Thousands of yen)Amount in
the quarterly
Adjustment consolidated(Note 2)statement ofincome(Note 3)

Human
Resources
Services
Business

Recruiting
Business

Information
Publishing
Business

Subtotal

Other(Note 1)

Total

2,749,214

734,872

441,7213,925,808

245,734

4,171,543-

4,171,543

3,098

16,784

19,883(19,883)-

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

1,118

57

1,923

2,750,333

734,929443,6443,928,907

262,519

4,191,426(19,883)

4,171,543

Segment profit

1,212,230

163,838

28,346

1,404,414

41,374

1,445,789(152,375)

1,293,414

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 (152,375) thousand yen adjustment to segment profit includes elimination for inter-segment transactions of
31,554 thousand yen, and (183,929) 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.

8

QUICK CO., LTD. (4318) Financial Results for the First Quarter of FY3/18

II. First three months of FY3/18 (Apr. 1, 2017 – Jun. 30, 2017)
1. Information pertaining to net sales and profit/loss in reportable segments
Reportable Segment(Thousands of yen)Amount in
the quarterly
Adjustment consolidated(Note 2)statement ofincome(Note 3)

Human
Resources
Services
Business

Recruiting
Business

Information
Publishing
Business

Subtotal

Other(Note 1)

Total

3,272,827

813,786

435,605

4,522,219

301,246

4,823,465-

4,823,465

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

793

676

1,660

3,129

10,216

13,346(13,346)-

3,273,621

814,462

437,265

4,525,349

311,462

4,836,811(13,346)

4,823,465

Segment profit

1,354,250

160,209

3,036

1,517,496

71,4101,588,906(156,076)

1,432,829

Notes: 1. “Other” represents the businesses which are not included in any of the reportable segments and mainly consistsof Internet-Related Business and Overseas Business.
2. The (156,076) thousand yen adjustment to segment profit includes elimination for inter-segment transactions of
34,021 thousand yen, and (190,098) 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.

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