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.

Feb 14, 2023

Non-consolidated Financial Results
for the Three Months Ended December 31, 2022
(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 to file quarterly securities report:
Feb 14, 2023
Scheduled date to commence dividend payments:
㸫Preparation of supplementary material on financial results:
None
Holding of financial results briefing:None
The original disclosure in Japanese was released on January 31, 2023 at 15:15 (GMT+9)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Non-consolidated financial results for the three months ended December 31, 2022 (from October 1, 2022
to December 31, 2022)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Three months ended

Operating profit

Ordinary profit

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Dec 31, 2022

655

9.6

222

2.0

222

1.8

153

1.9

Dec 31, 2021

597

ʊ

218

ʊ

218ʊ

150

ʊ

  
Basic earnings
per share
Three months ended

Diluted earnings
per share

YenYenDec 31, 2022

25.62

ʊ

Dec 31, 2021

25.14

ʊ

As the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc., have been applied since the beginning of thefiscal year ended September 30, 2022, the figures provided for the fiscal year ended September 30, 2022, are figures to which said accounting
standards have been applied. The rates of increase or decrease compared with the same period of the previous fiscal year are not provided.

(2) Non-consolidated financial position
Total assets
As ofNet assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

Dec 31, 2022

6,664

5,583

83.8

Sep 30, 2022

7,028

5,808

82.7

Reference:

EquityAs of Dec 31, 2022:
As of Sep 30, 2022:¥5,583 million¥5,808 million

2. Cash dividends
Annual dividends per shareFirst quarter-end
Fiscal year ended

Sep 30, 2022
Fiscal year ended

Second quarter-end

Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

YenYenʊ

43.00

ʊ62.00105.0045.00

ʊ45.0090.00

ʊ

Sep 30, 2023
Fiscal year ending

Sep 30, 2023(Forecast)(Note) Revisions to recent dividends forecast: None
The year-end dividend for the fiscal year ended September 2022 includes a special dividend of ¥15.00.

3. Non-Consolidated Forecast for the Year Ending September 30, 2023 (October 1, 2022 to September 30,2023)Net sales
Fiscal year ended

Millions of yen

Operating profit%

Millions of yen

Sep 30, 2023
3,602 4.0
(Note) Revisions to recent business forecast: None

1,603

Ordinary profit

Basic earnings
per shareProfit%

Millions of yen%

Millions of yen%

yen

3.0

1,602

3.0

1,106

3.8

184.78

Basic earnings per share have been calculated based on the average number of shares outstanding (5,989,996 shares) for the year ending September
30, 2023, which was calculated taking into account the number of treasury shares held.

* Notes(1) Adoption of accounting treatment specific to the preparation of quarterly non-consolidated financial
statements: Yes(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of Dec 31, 2022

6,141,158 shares

As of Sep 30, 2022

6,141,158 shares(ii) Number of treasury shares at the end of the period
As of Dec 31, 2022

151,162 shares

As of Sep 30, 2022

151,162 shares(iii) Average number of shares outstanding during the period(cumulative from the beginning of the fiscalyear)
Three months ended Dec 31, 2022

5,989,996 shares

Three months ended Dec 31, 2021

5,990,128 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.

Qualitative information regarding the quarterly settlement of accounts(1) Overview of operating results
During the first three months of the year ending September 30, 2023 (from October 1, 2022 to December 31,2022), net sales of SHL-JAPAN Ltd. (the “Company”) were ¥655 million (up 9.6% year on year), a year-on-yearincrease of ¥57 million. By business segment, “Product sales” were ¥429 million (up 16.4% year on year),“Consultancy sales” were ¥207 million (down 0.5% year on year), and “Training sales” were ¥18 million (down9.4% year on year).
“Product sales” increased by ¥60 million year on year. This is primarily due to the strong sales of the Web tests
of general abilities “C-GAB plus” (on-site test/ Web test with online monitoring) and “Web GAB” and the Web
test of abilities for computer-related jobs “Web CAB.” “Consultancy sales” remained almost unchanged from thesame period of the previous fiscal year. This is primarily due to the sluggish sales of customized versions of Web
tests despite strong sales of various agency services for assessment. “Training sales” decreased by ¥1 million year
on year primarily due to a decrease in orders of in-house seminars.
Operating profit for the three-month period under review was ¥222 million (up 2.0% year on year). Cost ofgoods sold was ¥89 million (up 28.6% year on year), a year-on-year increase of ¥19 million, while selling, generaland administrative expenses were ¥343 million (up 10.8% year on year), a year-on-year increase of ¥33 million,and operating profit increased by ¥4 million year on year thanks to an increase in revenue. An increase in cost ofgoods sold was primarily attributable to an increase in labor costs due to organizational restructuring and anincrease in outsourcing expenses due to an increase in orders received, and an increase in selling, general andadministrative expenses was primarily attributable to an increase in support costs for royalty and customers.
Ordinary profit for the three-month period under review was ¥222 million (up 1.8% year on year). This isalmost equal to operating profit because both non-operating income and non-operating expenses were small as inthe same period of the previous fiscal year, leading to a year-on-year increase of ¥3 million.
Profit before income taxes for the three-month period under review was ¥222 million (up 1.8% year on year), ayear-on-year increase of ¥3 million, which is equal to ordinary profit because no extraordinary gains orextraordinary losses were recorded as in the same period of the previous fiscal year.
As a result of deducting income taxes from the above figure, profit for the three-month period under review was¥153 million (up 1.9% year on year), a year-on-year increase of ¥2 million.

<Reference 1: Sales by business segment>

ProductConsultancy
Training
Total

Fiscal 2022
Millions of Yen
Component ratio
368
61.7
208
34.9
20
3.4
597
100.0

Fiscal 2023
Millions of Yen
Component ratio
429
65.5
207
31.7
18
2.8
655
100.0

Rate of increase(decrease)16.4‫ڹ‬0.5‫ڹ‬9.4
9.6<Reference 2: Sales by quarterly basis>
First Quarter

Second Quarter

Third Quarter

Year-End

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen
Fiscal 2023
Fiscal 2022

655
597

ʊ
1,120

ʊ
1,063

AnnualMillions of Yen

ʊ
681

ʊ
3,463

Fiscal 2021
472
1,375
969
482
3,300
*Note 1:As the Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31,2020), etc., since the beginning of the fiscal year ended September 30, 2022, the figures provided for the fiscal year
ending September 30, 2023 and the fiscal year ended September 30, 2022 are figures to which said accounting standards
have been applied. The figures provided for the fiscal year ended September 30, 2021 are actual figures to which theseaccounting standards are not applied.
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. In recent years, sales have tended to concentrate in the second andthird quarters of the fiscal year.

(2) Projected performance
During the year under review, amid the growing expectation of recession due to the worldwide inflation andincreases in interest rates, Japan is entering into life after COVID-19 as the government officially decided todowngrade COVID-19, which is now classified as equivalent to category two, to category five, the same grouping
as seasonal flu, on May 8. On the other hand, the motivation of companies to hire new employees has remained
strong with an eye to such moves, and the recruitment and screening activities of companies took place even
earlier than before, particularly among firms that are offering internships, as reported in the media that the rate ofnew graduates who are set to graduate in 2024 and have already received job offers was 14.9%, up 1.4 percentage
point year on year, and that the rate of students experiencing the recruitment and screening processes was 51.1%,
up 1.9 percentage point year on year, exceeding 50% for the first time. In this environment, the Company intends
to continue to implement thorough measures to prevent the spread of COVID-19 to ensure the health and safety ofour employees and business associates, and to enhance its business performance by swiftly providing optimum
services based on a precise analysis and understanding of corporate customers’ needs.
In light of the above, and based on our analysis and study of the business results, financial position and otherbusiness management materials for the three-month period under review, no changes have been made to thefinancial results forecast for the year ending September 30, 2023, which was released on October 31, 2022.
(3) Others (Important contractor for business management)
The Company provides human resources assessment services mainly to domestic companies by being licensed
by SHL Group Limited. The current licensing agreement, which is the evidence of the licensing, will expire on
March 31, 2023, and has not been renewed at the moment.