Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

Nov 26, 2021

Non-consolidated Financial Results
for the Fiscal Year Ended September 30, 2021
(Under Japanese GAAP)
Company name:
SHL-JAPAN Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
4327
URL:
http://www.shl.co.jp/
Representative:
Manabu Nara, Managing Director
Inquiries:
Naohiro Nakamura, Director
Telephone:+81-3-5385-8781
Scheduled date of annual general meeting of shareholders:Dec 18, 2021
Scheduled date to commence dividend payments:
Dec 20, 2021
Scheduled date to file annual securities report:
Dec 21, 2021
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes (for analysts and institutional investors)
The original disclosure in Japanese was released on October 29, 2021 at 15:15 (GMT+9)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Non-consolidated financial results for the fiscal year ended September 30, 2021 (from October 1, 2020
to September 30, 2021)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended

Operating profit

Ordinary profit

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%Sep 30, 2021

3,300

11.3

1,475

6.0

1,474

5.9

1,010

5.2

Sep 30, 2020

2,964

1.7

1,391

13.2

1,392

13.2

960

14.2

Basic earnings
per share
Fiscal year ended

Diluted earnings
per share

Return on equity

Ratio of ordinary
profit to total assets

Ratio of operating
profit to net salesYen

Yen%%%

Sep 30, 2021

168.69

ʊ

18.4

23.1

44.7

Sep 30, 2020

160.38

ʊ

19.1

23.8

46.9

Reference:

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended Sep 30, 2021:
ʊ million
For the fiscal year ended Sep 30, 2020:ʊ million(2) Non-consolidated financial position
Total assets
As ofNet assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

Sep 30, 2021

6,623

5,704

86.1

952.29Sep 30, 2020

6,143

5,288

86.1

882.79Reference:Equity
As of Sep 30, 2021:
As of Sep 30, 2020:¥5,704 million¥5,288 million

(3) Non-consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Sep 30, 2021

1,087

ᶭ29

ᶭ586

4,270

Sep 30, 2020

1,042

ᶭ537

ᶭ437

3,798

2. Cash dividends
Annual dividends per shareFirstSecond
Third
quarter-end quarter-end quarter-end
Fiscal year endedSep 30, 2020
Fiscal year ended

Sep 30, 2021

Fiscalyear-end

Total

Total cash
dividends(Total)Payout ratio

Ratio ofdividends tonet assets%

%

Yen

Yen

Yen

Yen

Yen Millions of yenʊ

36.00

ʊ

60.00

96.00

575

59.9

11.4

ʊ

38.00

ʊ

62.00

100.00

599

59.3

10.9

ʊ

43.00

ʊ

43.00

86.00

Fiscal year ending

Sep 30, 2022

50.0(Forecast)
The year-end dividend for the fiscal year ended September 2020 includes a special dividend of ¥20.00; and the year-end dividend for the fiscal yearending September 2021 includes a special dividend of ¥15.00.

3. Non-Consolidated Forecast for the Year Ending September 30, 2022 (October 1, 2021 to September 30,2022)
Net sales
Fiscal year ended
Sep 30, 2022

Operating profit

Ordinary profit

Basic earnings
per shareProfit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

yen

3,410

ʊ

1,495

ʊ

1,494

ʊ

1,030

ʊ

172.11As the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29), etc. will be applied from the beginning of the fiscal year ending
September 2022, the aforementioned financial results forecasts use amounts to which said accounting standards have been applied. The rates ofincrease or decrease compared with the same period of the previous fiscal year are not provided. Furthermore, the figures for basic earnings per share
are calculated based on the number of shares (5,990,129 shares) as obtained by subtracting the number of treasury shares (151,029 shares) from thetotal number of shares outstanding as of the end of the fiscal year ended September 2021 (6,141,158 shares).

* Notes(1) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(2) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of Sep 30, 2021

6,141,158 shares

As of Sep 30, 2020

6,141,158 shares(ii) Number of treasury shares at the end of the period
As of Sep 30, 2021

151,029 shares

As of Sep 30, 2020

151,006 shares(iii) Average number of shares outstanding during the period
Fiscal year ended Sep 30, 2021

5,990,141 sharesFiscal year ended Sep 30, 2020

5,990,175 shares* Implementation status of quarterly review proceduresThis financial results summary is not subject to annual review procedures.
* Explanations and other special notes concerning the appropriate use of financial results forecasts
1. The forward-looking statements regarding financial results forecasts, etc., appearing in this financial resultssummary have been prepared based on information currently available to the Company and certain
assumptions that the Company believes to be reasonable. The Company makes no guarantee as to theirrealization. Actual financial results may differ substantially from the forecasts due to various factors.
2. As the Company’s services are often used for the screening of new graduates to be employed by corporate
customers, our sales inevitably involve seasonal fluctuations. Accordingly, the Company’s performance
management is conducted on an annual basis without presenting performance forecasts for the first half.

Overview of operating results, etc.
(1) Overview of operating results
For the year ended September 30, 2021 (October 1, 2020, through September 30, 2021), net sales of SHLJAPAN Ltd. (the “Company”) increased ¥335 million, or 11.3%, year over year to ¥3,300 million. By businesssegment, “Product sales” increased 15.9% to ¥2,230 million, “Consultancy sales” increased 1.8% to ¥980 million,and “Training sales” increased 17.0% to ¥89 million.
“Product sales” increased ¥305 million compared with the same period of the previous fiscal year. This wasprimarily attributable to the favorable sales of “C-GAB plus (hall test/online monitored Web test),” Web test ofgeneral abilities, and “WebCAB,” Web test of computer aptitude. “Consultancy sales” increased ¥17 million
compared with the same period of the previous fiscal year. This was primarily due to unfavorable sales ofcustomized versions of multiple choice tests and analysis assessment projects being supplemented by favorable
sales of customized versions of Web tests. “Training sales” increased ¥12 million compared with the same periodof the previous fiscal year, primarily owing to a rise in orders received for in-house seminars.
During the year under review, amid the effects of the state of emergency declared in response to the spread of
the novel coronavirus, although recruitment and screening activities of companies seeking to hire new graduates
who are set to graduate next spring started and ended earlier than ever before, demand for our assessment services
has increased on the back of more proactive recruitment and screening activities for ready-to-go career roles bycompanies and other organizations that have the objective of alleviating chronic labor shortages and for which
reinforcing human resources for digital transformation (DX) is essential, and more proactive student screening
activities related to internship programs, which are becoming firmly established in the corporate world. Under
these circumstances, the Company believes that it was able to achieve an increase in net sales by gaining support
from its customers for services with low risks of the “Three Cs” (Closed spaces, Crowded places, and Closecontact settings) or services that can avoid those risks, mainly online assessment tools.
Operating profit for the year under review increased 6.0% year over year to ¥1,475 million. Although the costof goods sold increased ¥80 million, or 23.4%, year over year to ¥426 million and selling, general andadministrative expenses increased ¥171 million, or 13.9%, year over year to ¥1,398 million, operating profit
increased ¥83 million year over year thanks to the increase in net sales. With regard to the cost of goods sold, theincrease was mainly attributable to increases in subcontracting costs resulting from an increase of orders received
for hall tests and online monitored Web tests due to an increase in orders for “C-GAB plus” and labor costs due topayment of year-end bonuses despite a decrease in the cost of question booklets for multiple choice tests and othergoods. The primary factors for the increase in selling, general and administrative expenses were increases in labor
expenses mainly due to the increased number of staff in the sales department and payment of year-end bonuses,
royalties, and stock agency fees.
Ordinary profit for the year under review increased 5.9% year over year to ¥1,474 million. Ordinary profit
increased ¥82 million due to the increase in operating profit despite non-operating expenses remaining essentiallyunchanged from the previous fiscal year and non-operating profit decreasing ¥1 million, or 60.0%.
Profit before income taxes for the year under review was equal to ordinary profit, because no extraordinary
gains or extraordinary losses were recorded as in the same period of the previous fiscal year, and increased ¥82
million, or 5.9%, year over year to ¥1,474 million.
After taking into account the above factors and income taxes—current and income taxes—deferred, profit forthe year under review increased ¥49 million, or 5.2%, year over year to ¥1,010 million on account of increased
profit before income taxes.
<Reference 1: Sales by business segment>
Fiscal 2020
Millions of Yen
Product

Fiscal 2021

Component ratio

Millions of Yen

Component ratio

Rate of increase(decrease)

1,925

64.9

2,230

67.6

Consultancy

962

32.5

980

29.7

15.9
1.8

Training

76

2.6

89

2.7

17.0

Total

2,964

100.0

3,300

100.0

11.3

<Reference 2: Sales by quarterly basis>
First QuarterSecond Quarter

Third Quarter

Year-End

AnnualMillions ofMillions ofYen

Millions of Yen

Millions of Yen

Millions of Yen

1,190
1,233

938
845

439
479

2,914
2,964


Fiscal 2019
Fiscal 2020

Yen345405

Fiscal 2021
472
1,375
969
482
3,300
*Note:As the Company’s services are often used for the screening of new graduates to be employed by corporate customers, oursales inevitably involve seasonal fluctuations. In recent years, sales have tended to concentrate in the second and thirdquarters of the fiscal year.

(2) Projected performance(Projected performance for the year ending September 30, 2022)
In the next fiscal year, as we enter a period known as “living with COVID-19,” concerns over stagflation
resulting from a shortfall in supply of component parts such as semiconductors, and of energy, continue toincrease, and trends towards an economic recovery appear to be behind schedule. However, there are hopefulsigns such as stronger uptake of vaccinations, the testing of the water with regards to the easing of restrictions ofactivities, and advancements in the development of drugs for treating the disease, and as such the motivation ofcompanies to hire new employees is expected to remain strong with an eye to life after COVID-19. In thisenvironment, the Company intends to continue to implement thorough measures to prevent the spread of the novel
coronavirus to ensure the health and safety of our employees and business associates, and to enhance its operating
performance by swiftly providing optimum services based on a precise analysis and understanding of corporate
customers’ needs.
In light of the above, the Company projects net sales of ¥3,410 million, operating profit of ¥1,495 million,
ordinary profit of ¥1,494 million and profit of ¥1,030 million for the financial results forecast for the year ending
September 30, 2022.
*Note: As the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29), etc. will be applied
from the beginning of the fiscal year ending September 2022, the financial results forecasts for theupcoming fiscal year use amounts to which said accounting standards have been applied. The rates ofincrease or decrease compared with the same period of the previous fiscal year are not provided.

(Basic policy regarding profit distribution and dividends for the year ended September 30, 2021, and the year
ending September 30, 2022)
The Company considers the return of profits to shareholders to be one of its mainstay management tasks.
Consequently, the Company intends to maintain a basic policy of ensuring stable and proactive profit distribution
to shareholders with a benchmark payout ratio of 50% (more specifically, total dividends of 50% of profit for theyear) while maintaining an internal reserve for the future reinforcement of its business structure. As foracquisition of treasury shares, the Company’s dividends from surplus are distributed twice per annum as aninterim dividend and a year-end dividend. The internal decision is made by the Board of Directors for the interim
dividend and by a general meeting of shareholders for the year-end dividend.
With regard to the financial results for the year under review, net sales (¥3,300 million) are ¥20 million higher
than the revised forecast (¥3,280 million), and operating profit, ordinary profit, and profit exceeded the revised
forecasts by ¥21 million, ¥21 million, and ¥12 million, respectively. For context on these results, please refer to“Overview of operating results, etc., (1) Overview of operating results”.
In consideration of the above basic policies and the financial results for the year under review, the Company
plans to distribute an annual dividend per share of ¥100 for the year ended September 2021, consisting of ¥62 pershare for the year-end dividend, which is the sum of an ordinary dividend of ¥47 and a special dividend of ¥15,and ¥38 per share for the interim dividend.
The Company intends to reinforce its management foundation by allocating the internal reserve to IT-related
investments for ensuring higher safety of its information systems and R&D projects for new assessment tools.
With regard to the dividend of the next year, the Company intends to distribute an annual (ordinary) dividend of¥86. This price represents an increase of ¥1 per share over the annual (ordinary) dividend of ¥85 per share in place
for the fiscal year under review.