First Six Months of FY 3/2021

Financial Results
Briefing Materials
Nurturing and Bringing Out
the Best in People

November 10, 2020NISSO CORPORATIONTSE 1 Code: 6569

00Summary
FY 3/2021 2Q Results●Decreased revenue and profits year-on-year●The effects of the new coronavirus (COVID-19) has bottomed out overall●The core automobiles-related industry has been on a recovery trend since June
●Equipment maintenance needs are strong

FY 3/2021

Consolidated Earnings Forecast●Recovery is faster than originally planned, mainly for automobiles manufacturers●Upward revision of previously announced forecasts based on recent business results

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

1・Please find the summary above.

1

CONTENTS

1

First Six Months of FY 3/2021

Financial Results Summary

2First Six Months of FY 3/2021

Overview of Activities

3

Future Prospects (FY 3/2021）

4

Topics5

Shareholder Return Policy

6

Supplementary Materials
Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

2

2

１

First Six Months of FY 3/2021 (2Q)

Financial Results Summary

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved33

FY 3/2021 2Q Consolidated Financial Results Highlights（Unit: Million yen）

PointsFY 3/2020 2Q• Due to the spread of COVID-19
infections, net sales in the General
Human Resources Services Businessdecreased.
• Although
SG&A
expenses
wererestrained, operating profit declined by
35.2%.
• Ordinary profit decreased due to therecording of subsidy income under nonoperating income.
• In Other Businesses, operating loss wasrecorded due to increased expenses,
although revenues increased.

Results% of Total

FY 3/2021 2Q
Results% of Total

Year-on-Year
Increase(Decrease)% Change

36,797100.0％

32,972100.0%(3,825)(10.4%)

Gross profit

6,210

16.9％

5,093

15.4%

(1,117)(18.0%)

SG&A
expenses

5,082

13.8％

4,361

13.2%

(720)

(14.2%)

Operatingprofit

1,128

3.1％

731

2.2%

(396)

(35.2%)

Ordinary
profit

1,154

3.1％

989

3.0%

(164)

(14.3%)

785

2.1％

596

1.8%

(188)

(24.0%)Net sales

Profitattributableto owners ofparentCopyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

4・The following is the explanation of the Consolidated Financial Results for FY 3/2021 2Q.
・Net sales amounted to 32,972 million yen (down 3,825 million yen or -10.4% YoY)
・Gross profit amounted to 5,093 million yen (down 1,117 million yen or -18.0% YoY)
・SG&A (selling, general and administrative) expenses amounted to 4,361 million yen (down 720 million
yen or -14.2% YoY)
・Operating profit amounted to 731 million yen (down 396 million yen or -35.2% YoY)
・Ordinary profit amounted to 989 million yen (down 164 million yen or -14.3% YoY)
・Profit attributable to owners of parent amounted to 596 million yen (down 188 million yen or -24.0%
YoY)

・Although operating profit improved to 35.2% in 2Q from 56.8% in 1Q, the situation continues to be
severe.
・In the automobiles-related industry, although there were many non-working personnel on standby in 1Q,
work shifts returned to normal and overtime work gradually recovered in 2Q, although not at the samerate as the previous year.
・Although NISSO operates with the maintenance of employment as the focus of our management policy,
an employment adjustment subsidy of approximately 230 million yen for the maintenance of employment
for employees was recorded under non-operating income.
・In Other Businesses, although revenues increased, operating losses increased due to increases inoperating expenses such as personnel expenses.

4

FY 3/2021 Quarterly Consolidated Financial Results（Unit: Million yen）

（Unit: Million yen）

Net sales
20,00018,814 18,920
18,435
17,942 17,983

Operating profit
19,248

1,400

1,165
1,200

16,784

1,039
16,557
16,414

15,999

914

1,000

767

800
15,000

650
542

600

400

525

477

372
206

200

10,000

0

１Q

２Q

３Q

【FY 3/19】

４Q

１Q

２Q

３Q

【FY 3/20】

４Q

1Q

2Q

【FY 3/21】

１Q

２Q

３Q

【FY 3/19】

４Q

１Q

２Q

３Q

【FY 3/20】

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

４Q

1Q

2Q

【FY 3/21】

5・Shown above are graphs of quarterly consolidated net sales and operating profit trends.

5

FY 3/2021 2Q Non-consolidated Financial Results Highlights（Unit: Million yen）

Net sales

FY 3/2020 2Q

FY 3/2021 2Q• Overall net sales decreased by 11.2%
year-on-year, mainly due to a decreasein enrolled staff, although production
operations are on a recovery trend.

Results

Results

Expenses・Profits• Due to the spread of COVID-19 infections,employeerecruitment
expensescontinued to decline and SG&A expenses
decreased by 14.2%.
• Subsidy income was recorded in nonoperating income.

% of Total% of Total

Year-on-Year
Increase(Decrease)% Change

33,955100.0％

30,155100.0%(3,800)(11.2%)

Gross profit

5,887

17.3％

4,839

16.0%

(1,048)(17.8%)

SG&A
expenses

4,756

14.0％

4,079

13.5%

(676)

(14.2%)

Operatingprofit

1,131

3.3％

760

2.5%

(371)

(32.8%)

Ordinary
profit

1,136

3.3％

977

3.2%

(158)

(14.0%)

777

2.3％

605

2.0%

(171)

(22.0%)Net sales

ProfitCopyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

6

・The following is the explanation of NISSO’s Non-Consolidated Financial Results for FY 3/2021 2Q.
・Net sales amounted to 30,155 million yen (down 3,800 million yen or -11.2% YoY)
・Gross profit amounted to 4,839 million yen (down 1,048 million yen or -17.8% YoY)
・SG&A expenses amounted to 4,079 million yen (down 676 million yen or -14.2% YoY)
・Operating profit amounted to 760 million yen (down 371 million yen or -32.8% YoY)
・Ordinary profit amounted to 977 million yen (down 158 million yen or -14.0% YoY)
・Profit amounted to 605 million yen (down 171 million yen or -22.0% YoY)
・Net sales were down 11.2% YoY, partly due to the effects of a decrease in enrollment, rather than that ofa full-scale recovery.
・Operating profit decreased by 32.8% YoY to 371 million yen, which was an improvement from the 56.3%
YoY decrease in 1Q. This was mainly due to a decrease of 676 million yen in SG&A expenses, mainly for
employee recruitment.
・Regarding SG&A expenses, employee recruitment expenses decreased by approximately 580 million yen
from 727 million yen in 1H of the previous fiscal year to 148 million yen in the current fiscal year, which is
the result of controlling the balance with back orders. In addition, the cost of activities decreased due torestrictions on activities as a result of the COVID-19 pandemic.
・The total number of working days in 1H (April to September) decreased by 3.8 days (down 3.5%)
compared to the corresponding period of the previous fiscal year, while overtime hours per month(overtime, holiday work) decreased by approximately 25% to 18.1 hours, from 24.2 hours in thecorresponding period of the previous fiscal year.
The paid leave acquisition rate (by employees) increased by approximately 38% compared to thecorresponding period of the previous fiscal year, which had an impact on earnings.

6

FY 3/2021 2Q Quarterly Non-consolidated Financial Results（Unit: Million yen）

（Unit: Million yen）

Operating profit

Net sales
18,00017,38916,962
16,542 16,566

17,478 17,775

1,400

1,204
1,200

1,044
16,00015,37815,153

14,5901,000

940

15,002

783

800

663

14,000

555

577

600

468
399
400
12,000

204

200

0

10,000

１Q

２Q

３Q【FY 3/19】

４Q

１Q

２Q

３Q

４Q

【FY 3/20】

1Q

2Q【FY 3/21】

１Q

２Q

３Q

【FY 3/19】

４Q

１Q

２Q

３Q

４Q

【FY 3/20】

1Q

2Q【FY 3/21】

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

7

・Shown above are graphs of NISSO's quarterly non-consolidated net sales and operating profit
trends.
・Normally, NISSO's business can record profits at a ratio of 1 in 1H and 2 in 2H. However, due to anumber of complicated factors in the current fiscal year, such as the impact of COVID-19 infections andchanges in the situation in which enrollment has been increasing until recently, it is expected that it will
not be in the aforementioned form of 1 in 1H and 2 in 2H. If the trend is as usual, operating profit isexpected to amount to 2.2 to 2.3 billion yen for the full year, however, it will be explained later why thiswill not be the case for this fiscal year.
・Gross profit margin for 2Q improved by 2.6 percentage points from 1Q.

7

2

First Six Months of FY 3/2021 (2Q)

Overview of Activities

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

88

FY 3/2021 2Q Financial Results Summary
Consolidated Financial Results

Net Sales
32,972 Million yen （-3,825 Million yen／-10.4％ YoY）
Operating Profit
731 Million yen （ -396 Million yen／-35.2％ YoY）
● Net Sales by Industry (YoY)
Automobiles… (18.6%)

Electronic devices… ＋4.6%● 2Q-end Number of Enrolled Staff
12,524 staff（-2,246 staff from FY 3/20-end）● Net Sales per Capita/Monthly
373 Thousand yen（-20 Thousand yen YoY）

・In the automobiles-related industry, although net sales increased on aquarterly basis, due to the effects of a decrease in the number of enrolled
staff, it decreased by 18.6% YoY. In the electronic-devices related industry,
although semiconductor-related net sales remained firm, it only increased
by 4.6% YoY due to a slump in electronic components.
・The number of enrolled staff decreased by 2,246 compared to FY 3/20-end,
and although client needs for external human resources were on arecovery trend, enrollment did not increase.

・The assignment of skilled staff to high unit-cost workplaces continued to bepromoted; there was also a recovery in hours of operation (number ofworking days, overtime hours, holiday work, etc.), and net sales per capita
increased compared to 1Q.
Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

9・Shown above is the Financial Results Summary for FY 3/2021 2Q.
・Details will be explained in the following pages.

9

FY 3/2021 2Q Net Sales by Industry (NISSO, Non-consolidated)（Unit: Million yen）

Net Sales Composition Ratios
Automobiles

Elec. Devices

5,312（15.6％）

Precision・Elec. Machinery(14.5％)

4,008

8,690
+4.6％

9,094
（30.2％）

15,263Due to the spread of COVID-19 infections, demand for
office-related equipment/machinery decreased, andnet sales decreased by 14.5% YoY.

4,633

（15.4％）（13.3％）（25.6％）

Other(12.8％)

4,688（13.8％）【Precision・Electrical Machinery】(18.6％)【Electronic Devices】
Semiconductor-related net sales continued to bestrong due to the spread of teleworking and demand
for servers, etc. On the other hand, electronic
components-related net sales increased by only 4.6%
YoY, partly due to inventory adjustments, etc.

【Automobiles】
12,417（45.0％）（41.2％）

FY 3/20 2Q

FY 3/21 2Q

Operations increased in line with recovery trends inexports and domestic production. Some manufacturers
have increased the number of staff. Although net sales
decreased by 18.6% YoY, it increased compared to 1Q.

※（ ）= % of Total net sales, Red = % of Year-on-Year growth

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

10

・The following is the explanation of NISSO's non-consolidated net sales by industry.
・Other than in the electronic devices industry, net sales decreased YoY.

10

FY 3/2021 Quarterly Net Sales by Industry (NISSO, Non-consolidated)

Automobiles

Elec. Devices

Precision・Elec. Machinery

2,890
2,607

（17.9％）

2,424（16.6％）

2,690（17.5％）

2,404（13.3％）（12.5％）

4,633

4,487

（15.8％）（15.9％）

2,427

2,348

2,371

（14.2％）

4,752

4,646

（30.2％）

5,227

5,636

（35.8％）（36.7％）

１Q

2Q（28.0％）

4,198（25.4％）（14.3％）

4,057（24.5％）

2,317（26.6％）

7,757

7,375

7,505

（40.6％）（45.3％）（44.6％）

3Q

4Q

１Q

2Q

【FY 3/19】（15.9％）

2,190（25.7％）

2,563（14.4％）

2,182

2,383

（12.3％）（15.7％）

4,650（13.9％）

2,113
4,680

8,026

（45.9％）

8,378（47.1％）

5,974（39.4％）3Q【FY 3/20】

2,249（15.0％）

1,895（12.6％）（26.2％）（30.9％）（44.6％）

6,891

2,774

（15.4％）（17.0％）（14.3％）

2,680

2,631

（15.6％）

4,330（29.7％）

2,619（Unit: Million yen）

Other

4Q

1Q

4,413

（29.4％）

6,443（43.0％）2Q【FY 3/21】※（ ）= % of Total net sales

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

11・Shown above are the trends of NISSO’s quarterly net sales by industry.
・Net sales in the automobiles industry recovered from about 79.6% YoY in 1Q to 83.1% YoY in 2Q. In
September alone, net sales recovered to about 90.5% compared to the corresponding month of theprevious fiscal year.
Although this was the result of the recovery of the automobiles Account Company, mainly by its autobody manufacturers, the recovery of parts manufacturers and other automobiles-related manufacturers isstill in progress.
・Net sales in the electronic devices industry decreased from 115% YoY in 1Q to 95.3% YoY in 2Q. Thiswas due to slight 2Q production adjustments in the semiconductor industry, which continued to perform
well, while looking at inventory conditions at the electronic components Account Company.
・In 2Q, net sales were approximately 82% YoY due to mainstream use of remote work as a result of theeffects of the COVID-19 pandemic, which made it difficult for precision・electric machinery companies tosell expendable supplies needed in offices.
・Other industries include various industries such as housing-related materials, and net sales in 2Q
decreased by approximately 15% YoY.

11

Net Sales per Capita（NISSO, Non-consolidated）● FY 3/2021 2Q YTD ＜Overall net sales per capita＞
373 Thousand yen (-20 Thousand yen YoY)
＜Skilled staff net sales per capita＞ 435 Thousand yen (-48 Thousand yen YoY)
● Hours of operation (number of working days, overtime hours, holiday work, etc.) that had decreased due to the spread of COVID-19
infections have been on a recovery trend. Although they decreased YoY, they increased compared to 1Q. Billing unit-costs continued
to increase.
（Unit: Thousand yen）

（Unit: Thousand yen）

Net Sales per Capita

Net Sales per Capita(Monthly Average Conversion)(Quarterly)

Skilled staff

483

500

394
400

Overall 435

373

400

300

300

200

200

100

100

0

379

Skilled staff

513

478

500

383

410

485

484

471
392

391

482
397

396

485

478

Overall 451

419

403
358

390

0

FY 3/20 2Q

FY 3/21 2Q

１Q

2Q

3Q

4Q

１Q

【FY 3/19】
Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

2Q

3Q【FY 3/20】

4Q

1Q

2Q

【FY 3/21】

12

・The following is the explanation of NISSO's net sales per capita.
・Overall net sales per capita decreased by 20,000 yen YoY, and skilled staff net sales per capita decreased
by 48,000 yen YoY. Since overall net sales per capita in 1Q decreased by 33,000 yen YoY and by 66,000
yen YoY for skilled staff, although the figures are recovering, they are still considered to be inadequate.
・Although the average hourly billing unit-costs per hour increased by more than 50 yen from 2,220 yen in
April to 2,273 yen in September, the reason for the decrease in net sales per capita YoY is due to the factthat operating conditions have not yet returned to their original state.
・Net sales per capita in September for the automobiles industry increased by approximately 10%
compared to the corresponding month of the previous fiscal year.
Although net sales per capita in the electronic devices industry also increased compared to thecorresponding month of the previous fiscal year, while the semiconductors industry was very strong,electronic components companies accounted for only about 95% of the corresponding month of theprevious fiscal year, which means that overtime hours have not yet returned to their previous state.
・Looking at net sales per capita in September by Account Company, it increased by 8.7% compared to thecorresponding month of the previous fiscal year for the automobiles Account Company, and net sales per
capita and the share ratio also increased from the previous fiscal year. It increased by 11.1% comparedto the corresponding month of the previous fiscal year for the electrical machinery Account Company. Net
sales per capita decreased by approximately 6% compared to the corresponding month of the previous
fiscal year for the electronic components Account Company, partly due to the non-recovery of overtime
hours.

12

Number of Enrolled Staff (NISSO, Non-consolidated)（Unit: # of Staff）

Compared w. Previous FY-end

Number of Enrolled Staff at Quarter-end-2,246 staff (-15.2%)

Point①

15,000The effects of the spread of COVID-19
infections bottomed out in June, and the decline
in the number of enrolled staff is beginning tocome to a halt. The number of new enrolled
staff has also increased from September.

Point②

13,826 14,042
13,546
13,05014,639 14,638 14,770
14,282
13,243
12,52413,00011,0009,000

The human resources needs of clients are ona recovery trend, especially in theautomobiles-related industry. Somemanufacturers have increased the number ofstaff.

7,000

5,000

1Q

2Q

3Q

4Q

【FY 3/19】

1Q

2Q

3Q

【FY 3/20】

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

4Q

1Q

2Q

【FY 3/21】

13

・The following is the explanation of NISSO's quarter-end enrollment on a quarterly basis.
・The number of enrolled staff at FY 3/2021 2Q-end was 12,524, a decrease of 2,246 staff from the end of
the previous fiscal year.
・Initially, although we expected to bottom out with a decrease of 1,527 staff at the end of June, compared
to 14,770 at the end of the previous fiscal year, at the end of September, there was a further decrease of
719 staff from the end of June.
・One of the factors was that people who experienced terminations of contracts at the end of June at a
certain auto parts manufacturer resigned without transferring to different worksites after July. Although
NISSO had considered continuing to maintain their employment, approximately 150 staff resigned fromthat company alone. This situation bottomed out as of the Obon holidays in August, and enrollment has
been increasing slightly since then.
・The number of enrolled staff at electronic components companies decreased by approximately 140 staff
due to the effects of inventory adjustments.
・Other than the aforementioned situations, the number of enrolled staff decreased by approximately 400.

13

Number of Skilled Staff (NISSO, Non-consolidated)（Unit: # of Staff）

Number of Skilled Staff

Point①
The number of resignees increased due tothe impact of reduced production by some
suppliers. Due to the effects of the spread of
COVID-19 (difficulty in transferring/moving
out of the prefecture, etc.), the number ofskilled staff decreased.

6,000

4,501

5,000

4,803

5,085

5,250 5,387 5,293

3,904
4,000

3,459

Point②
2,611

3,000

In the semiconductor-related industry, thenumber of skilled staff continues toincrease, and client needs are also high.

2,034
2,000

1,000

Point③
Although the number of skilled staff decreased,
the ratio of skilled staff to NISSO's total
enrolled staff increased to 42.3%.
(FY 3/2021 1Q: 40.7%)

0

1Q

2Q

3Q

4Q

1Q

【FY 3/19】

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

2Q

3Q【FY 3/20】

4Q

1Q

2Q

【FY 3/21】

14

・The following is the explanation of NISSO's skilled staff.
・This is the first time that the number of skilled staff has decreased. The biggest factor was thatapproximately 150 staff who worked at the aforementioned auto parts manufacturer were not able to betransferred to different worksites and resigned.
・As previously explained, during the COVID-19 pandemic, when it comes to (skilled) staff moving/transferring across prefectures, they must wait 2 weeks before being assigned to clients from one
prefecture to another, and since skilled staff are considered to be regular employees, they are able toreceive transfers to different workplaces. However, the failure of skilled staff who commuted to work fromhome to respond to transfers that involved relocation led to a decrease in the number of skilled staff.
・In the semiconductors industry, NISSO continues to receive strong inquiries about equipment
maintenance, and approximately 30 skilled staff are assigned to various workplaces per month.
・The ratio of skilled staff to NISSO's total enrolled staff increased to 42.3%, which was due to thedecrease in parameters as a result of the decrease in the total enrolled staff due to the resignation of
fixed-term employees.

14Account Companies (NISSO, Non-consolidated)
Point①

Account Company Groups Net Sales

The net sales share ratio of Account Company
Groups in FY 3/2021 2Q increased to 48.0%.
(FY 3/2021 1Q: 47.7%)（Unit: Million yen）

(Unit: %)Net sales (left axis)

Composition ratio (right axis)

12,000

47.7

48.0

50.0

45.9
10,000

41.9

Point②（Year-on-Year）

44.5

44.1

44.2

43.3

7,416 7,366 7,3007,677 7,565

8,000

・Although net sales of NISSO decreased by
11.2% YoY, Account Company Group net sales
decreased by only 6.2% YoY.
・In 2Q alone, net sales increased YoY in theautomobiles and electronics Account Company
Groups.
・In the electronic components AccountCompany Group, net sales decreased YoY due
to a delay in recovery.

43.7

42.7

6,107

45.0

8,152
7,225

6,564

7,201

40.0

6,000

35.0

4,000

30.0

2,000

25.0

0

１Q

2Q

3Q

4Q

１Q

【FY 3/19】

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

2Q

3Q【FY 3/20】

4Q

1Q

2Q

20.0

【FY 3/21】

15

・The following is the explanation of NISSO's Account Companies.
・Among the Account Companies, the auto body manufacturers of the automobiles Account Company, andthe semiconductor manufacturers of the electrical machinery Account Company have performed very wellfrom the previous fiscal year. The automobiles Account Company net sales increased by 10% YoY, andthe electrical machinery Account Company net sales increased by 17% YoY.
・The electronic components Account Company net sales decreased by approximately 20% compared tothe corresponding period of the previous fiscal year.
・The ratio of Account Company Group net sales to NISSO's company-wide net sales is increasing, withcompany-wide net sales down 11.2% YoY, while total Account Company Group net sales decreased byonly 6.2% YoY. However, the reason why Account Company Group net sales decreased by 6.2% YoY was
due to the effects of inventory adjustments at some electronic components companies.

15Turnover Rates (NISSO, Non-consolidated)(Unit: %)Trend of Turnover rates

FY 3/2021 2Q Results
Overall turnover rate

Overall

4.7％

7（±0.0 vs. FY 3/2020）

7

5.9
6

Skilled staff turnover rate

5.5

6

4.9

2.3％

Skilled staff

5

4.6

4.7

5.1

5

4.7

（+0.3 pts vs. FY 3/2020）
4

4

3

3

Points1.7

2・The turnover rate for skilled staff increased by
0.3 points due to the spread of COVID-19
infections.
・The overall turnover rate improved by 0.4
points to 4.7%, recovering to the same level
as the previous FY.

2.0
1.5

2.0

2.3

2

1
1
0
0

1Q
FY 3/16

FY 3/17

FY 3/18

FY 3/19

FY 3/20

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

2Q

3Q

4Q

【FY 3/21】

16

・The following is the explanation of NISSO's turnover rates.
・Although the overall turnover rate was 4.7% for 2Q YTD and down from 5.1% in 1Q, the skilled staff
turnover rate increased from 2.0% in 1Q to 2.3% in 2Q YTD. The major factor, as previously mentioned,
was the resignation of approximately 150 staff from a certain auto parts manufacturer in 2Q.
・In 2Q alone (July ~ September), turnover rates were 4.3% overall, and 2.6% for skilled staff.

16

Educational Achievements（NISSO, Non-consolidated）● FY 3/2021 1Q Course-specific educational achievements
Point①(total # of participants)

The number of new employees/staff
decreased and the number of participants
was limited as part of measures to preventthe spread of COVID-19 infections, and thenumber of actual participants decreased.

Training course
name

Point②
Orders from semiconductor manufacturers
continue to be strong, and client needs forequipment maintenance are high.

Point③On-line contents and video educational
materials that can be taken in remotelocations have been enriched.

(Unit: # of participants)

2Ｑ(Jul - Sep)

Contents

FY 3/20 2Q

Skilled staff education

202 Standard skilled staff education

483

Basic maintenanceeducation

Basic equipment maintenance84 education

65

Accredited vocational
training education

16 (Miyagi・Nagano Prefectures)

Accredited vocational training school

Manufacturing
education

MONOZUKURI (manufacturing)
559 education, pre-assignment training for
manufacturing staff, mobile education

Safety education

507 Danger・risk simulation education

Employee education

107 newly appointed chief education,

New graduate/mid-career entry/
mid-level employee training,

57
717
1,182
115

on-site supervisor education
Other education

Total

ー

Entrusted education from externalsources

1,475

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

ー

2,619
17

・The following is the explanation of NISSO's educational achievements.
・Overall, the number of people assigned to workplaces has decreased, as well as the number of course
participants, in order to prevent COVID-19 infections.
・In basic maintenance education, although it is possible for 30+ course participants to receive training, due
to the COVID-19 pandemic, training was conducted for less than 30 participants each month to avoid
crowding.
・As a new effort, training contents have been expanded on-line. Although remote education and classroom
learning are the main focus, the structure has become well organized.

17

Other Businesses Business Revenue
Points●Results of Other Businesses

・Net sales increased YoY as the number ofresidents in Building 6 increased.
・Buildings 1~5 continue to maintain a highoccupancy rate.
・Operating loss amounted to 39 million yen
due to an increase in costs associated withthe stabilization of services provided.

FY 3/20 2Q
Results（Unit: Million yen）

FY 3/21 2Q% of Total

Results

Year-on-Year
Increase(Decrease)% of Total

Net sales

1,369

100.0％

1,461

100.0%

Expenses

1,367

99.8％

1,500

Operatingprofit (loss)

2

0.2％

(39)

% Change

91

6.7%

102.7%

133

9.7%(2.7%)(41)-(Unit: # of residents)

Number of facility residents[Bldg.1-5] (capacity:308)

100%

300
200

299

297

96.4%

97.1%

96.4%

Occupancy
rate[Bldg.6] (capacity:94)

400

297

# of
residents

298

298

96.8%

96.8%

70

95%

48

50
30

100

84

90

51.0%

59

73

75

77.7%

79.8%

100%

89.4%

62.8%

50%

10

90%

0

Sep'19-end Dec'19-end Mar'20-end Jun'20-end Sep'20-end-10

Sep'19-end Dec'19-end Mar'20-end Jun'20-end Sep'20-end

0%Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

18

・The following is the explanation of Other Businesses.
・The occupancy rate of existing facilities (Buildings 1 ~ 5) have an occupancy rate of more than 96%.
・Although the number of residents in Building 6, which has been an issue, increased to 84 residents(capacity: 94 residents), since it is a newer facility, due to problems related to the retention of nursing
care staff, and increased expenses related to its operation, it has recorded a deficit.
・In the current fiscal year, it is our plan to recover the deficit of 1H in 2H so that we are able to set theoperating profit/loss at ± zero for the full year.

18

3

Future Prospects (FY 3/2021)

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

19

19

FY 3/2021 Revision of Full-year Consolidated Forecasts
Based on recent performance trends, NISSO has revised the Full-year Consolidated Forecast for FY 3/2021(April 1, 2020~March 31, 2021), which was announced on August 7, 2020.
■FY 3/2021 Full-year Consolidated Forecast (April 1, 2020~March 31, 2021)
Previous Forecast
Forecast

% of
Total

Present Revised
Forecast
Forecast

% of
Total

Change from
Previous Forecast
Increase(Decrease)% Change(Unit: Million yen)

FY 3/20
Results
Results

% of
Total

64,000 100.0%

67,000 100.0%

3,000

4.7%

Operatingprofit

1,500

2.3％

1,800

2.7%

300

20.0%

3,061

4.1％

Ordinary
profit

1,750

2.7％

2,100

3.1%

350

20.0%

3,149

4.2％

Profitattributableto owners ofparent

1,050

1.6％

1,300

1.9%

250

23.8%

2,033

2.7％

Net sales

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

74,966 100.0％

20

・The following is the explanation of the Full-year Consolidated Forecasts.
・As for the background of the current revision, with regard to the automobiles industry, auto bodymanufacturers have been recovering, especially in the Account Company. However, recovery has not yet
reached the suppliers, so we look forward to their recovery and the recovery of other parts manufacturers
in the future. NISSO will continue to aim for a strong recovery by increasing our market share, centeredon auto body manufacturers and suppliers of the Account Company.
・In the electronic devices industry, semiconductors continue to be strong. In the electronic components
industry, inventory adjustments, etc., have been completed. In addition, NISSO expects that the recovery
of automotive devices, and the gradual spread of 5G will contribute to the recovery of thetelecommunications equipment area.
・The number of enrolled staff is expected to gradually recover from the 12,500 staff in September, andnet sales have been calculated based on the assumption of having 13,000 staff at the end of the fiscal
year.
・However, net sales is likely to exceed the forecasted 67 billion yen if overtime hours and holiday work
increase in the future. In addition, from 3Q onwards, unless, for example, a new problem regarding afurther spread of COVID-19, or if the U.S.-China problem worsens, although specific figures have not yet
been calculated, operating profit is expected to increase considerably.
・The reason for forecasting operating profit to be 1.8 billion yen are: 1) the number of enrolled staff
decreased significantly in the current fiscal year, and 2) we have recorded expenses of 300 million yen
for the development of human resources necessary for the new era, and for actively promoting M&A in
the remaining half year (3Q & 4Q), which we would like to kindly ask the readers to understand. In
addition, since we have nearly secured a partner for M&A, although the situation is still fluid, we haverecorded a research expense.

20

4
4

TopicsCopyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

21

21Capital and Business Alliance with Cross Compass Ltd.
NISSO resolved to enter into a capital and business alliance agreement with Cross Compass Ltd. at the Board of Directors' Meeting
held on September 15, 2020, and concluded the capital alliance and business alliance agreement on September 17, 2020.
Content of Business Alliance
The two companies will implement the business alliance mainly related to the following matters:
・Sales expansion/promotion of services utilizing both client bases and sales networks
・Joint development of platforms for the manufacturing industry
・Human resources exchanges for the purpose of training/development
・Other contents discussed by both parties that will contribute to the enhancement ofcorporate value【Content of Capital Alliance】
Cross Compass issued common shares to NISSO through a third-party
allotment of shares, which NISSO underwrote.
(1) No. of shares held before change

0 shares(No. of voting rights: 0)(Percentage of voting rights held: 0.0%)(2) No. of shares acquired

100,000 shares(No. of voting rights: 100,000)(Percentage of voting rights held: 19.9%)(3) Acquisition value

300 million yen(4) No. of shares held after change

100,000 shares

Factories

Worksite solutions by
Humans and AI

Challenges・needs ofmanufacturing
worksites

Extensive knowledge
and human resources atmanufacturing worksites

AI technology anddevelopment capabilities※For more information, please refer to the "(Progress of Disclosure Items) Notice of Conclusion Capital AllianceAgreement and Business Alliance Agreement with Cross Compass Ltd." announced on September 17, 2020.
Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

22

・The following is the explanation of the contents of the business alliance with Cross Compass Ltd.
・NISSO is finally beginning to propose the so-called "Worksite solutions by Humans and AI" thatspecifically involve clients.
・First of all, we recently had business discussions with representatives of a certain Account Company of
NISSO, and we are planning to launch completely new services that we have not provided so far to themby the end of the year. While creating a proto-type model, we plan to actively market it to other AccountCompanies, or clients of Cross Compass, and we will actively invest in engineers and/or training in thisbusiness area.
・In the medium term, NISSO will aim to differentiate ourselves from other companies by actively hiring
and training engineers who specialize in AI for the manufacturing industry, rather than just AI engineers
in the field of AI.

22

Nisso Group CSR Report 2020
Release of CSR Report 2020

・In order to enhance the corporate value of the Nisso Group, we respect laws and social rules, and carry out CSR
activities toward the realization of a sustainable society. The CSR Report was released on NISSO's website in
October 2020 (Japanese version only, English version to follow).
・Based on the perspective of ESG (Environment, Social {Society}, andGovernance), the Nisso Group believes that it is of the utmost importance torespond to the demands of society by implementing the "Sustainable
Development Goals" that SDGs strive for.
・Based on stakeholder engagement, the Nisso Group aims to solve social issues
by setting concrete plans and targets.
・Going forward, we will continue to engage in corporate activities with the aim ofcontributing to the resolution of social issues through our business, and achieving
sustainable growth together with society. In addition, we will strive to enhance
corporate value by promoting human development in line with the new era, andwill continue to take on challenges to contribute to the growth of the working
people and the future of Japan.

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

23

・NISSO released the Nisso Group CSR Report on our website in October 2020.
(Japanese version only, English version to follow)

23

5

Shareholder Return Policy

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

24

24

Shareholder Return Policy
Dividend and Payout Ratio

Basic Policy
NISSO considers the redistribution of profits toshareholders and the enhancement of corporate value as
key management issues, taking into consideration thebalance between securing funds for growth investments
and strengthening the corporate structure that can
respond to changes in the business environment. In
addition, by setting the consolidated dividend payout ratioof 30% as a general standard, NISSO's basic policy is tocontinue to steadily redistribute profits to all of its
shareholders.

(Unit: Yen)
30.00円Regarding the year-end dividends for FY 3/2021, due to an
upward revision of the Full-year Consolidated Forecast, theexpected dividend per share (9.32 yen) of the "Summaryof Consolidated Financial Results for the First Quarter of FY
3/2021 [Japanese GAAP] Dividend Forecast" announced on
August 7, 2020, has been revised to 11.53 yen.

(Unit: %)45

41.3 ％

40
25.00円

20.00円

30.0 ％
27.7 ％

15.00円

10.00円FY 3/2021 Dividend Forecast

Dividend (left axis)

5.00円

30.0％

35

25.00

30

Yen

25

18.50

20

Yen
10.50
Yen

11.53

15

Yen

10
5

0.00円

FY 3/2018

FY 3/2019

FY 3/2020

FY 3/2021(Forecast)

0※NISSO's common stock was split at a ratio of 2 shares for 1 share on May 1, 2019,
and the FY 3/2019 dividend payout shown above is the dividend payout amountafter the stock split.

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

25

・The following is the explanation of the Shareholder Return Policy.
・The dividend forecast for the current fiscal year has been changed from the pre-adjusted dividend payout
ratio of 30% and 9.32 yen to 11.53 yen as a result of the same dividend payout ratio of 30% for therevised profit.
・As mentioned earlier, NISSO plans to actively invest in new businesses, especially in the current fiscal
year and in the next, so the dividend payout ratio has been set at 30% for the current fiscal year for thetime being.

25

6Supplementary Materials

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

26

26

Consolidated Balance Sheet(Unit: Million yen, ％)Mar. 2020-end

Sep. 2020-end% of Total

Increase(Decrease)

13,58365.4(2,038)

28.3

5,570

26.8

(794)

37.5

7,241

34.9

(1,192)

6,871

30.5

7,186

34.6

314

4,754

21.1

4,730

22.8

(24)

377

1.7

389

1.9

12

1,739

7.7

2,066

9.9

326

22,494100

20,770100(1,723)

9,279

41.3

7,802

37.6

(1,476)

4,648

20.7

4,318

20.8

(329)

Income taxes payable

812

3.6

485

2.3

(327)

Provision for bonuses

879

3.9

992

4.8

113

Non-current liabilities

1,319

5.9

1,302

6.3

(16)

Amount% of Total

15,622

69.5

Cash and deposits

6,365

Notes and accounts receivable - trade

8,434

Current assets

Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total assets
Current liabilities
Accrued expenses

Amount

623

2.8

555

2.7

(68)

Total liabilities

10,598

47.1

9,105

43.8

(1,492)

Shareholders' equity

11,97453.2

11,742

56.5

(232)

Total net assets

11,895

52.9

11,664

56.2

(230)

Total liabilities and net assets

22,494100

20,770100(1,723)Long-term loans payable

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

Point①Reduction due to reduced operations
Due to the reduction of operations of
manufacturing-related human resources
services, "notes and accounts receivable(trade)", etc., of current assets and "accrued
expenses", etc., of current liabilities
decreased.
②Investments
Due to equity investment associated withthe business alliance, "investments andother assets" of non-current assets
increased.
③Tax payments
Due to income taxes and other tax
payments, "income taxes payable", etc., ofcurrent liabilities decreased.
④Dividends
Shareholders' equity decreased due todividend payments.
⑤Overall
As a result of the above, total assets
decreased by 7.7%, total liabilities
decreased by 14.1%, total net assets
decreased by 1.9%, and equity ratio
increased by 3.3% to 56.2% compared tothe end of the previous fiscal year.

27

27

Quarterly Consolidated Statements of Cash Flows(Unit: Million yen, ％)FY 3/20
2Q YTDFY 3/21
2Q YTD

AmountAmount

Point
Increase(Decrease)

Cash flows from operating activities

(361)

547

909

Cash flows from investing activities

24

(398)

(422)

Cash flows from financing activities

(786)

(944)

(158)

Net increase (decrease) in cash andcash equivalents(1,122)

(794)

327

Cash and cash equivalents at
beginning of period

5,633

6,365

731

Cash and cash equivalents at end of
period

4,510

5,570

1,059

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved① Cash flows from operating activities
In the current quarter, tax payments suchas income taxes, consumption taxes, etc.,
and expenditures, etc., due to a decrease inaccrued expenses were absorbed by revenues,
etc., due to decreases in profit from income
taxes and accounts receivable (trade), whichamounted to 547 million yen in revenues.
②Cash flows from investing activities
In the current quarter, expenditures
amounted to 398 million yen due to stock
investments associated with the businessalliance, and capital investment for coresystems.
③Cash flows from financing activities
Due to scheduled payments of loans
payable and payment of dividends, etc.,
expenditures amounted to 944 million yen.

28

28

Nurturing and Bringing Out
the Best in People

The forward-looking statements and performance forecasts contained in this document are forecasts
determined by NISSO based on information available at the time of preparation, and include potential risks
and uncertainties. Therefore, please be aware that the actual results may differ greatly from the forwardlooking statements described due to changes in various factors.

For future IR-related inquiries

PR・IR Division, Corporate Planning Department, NISSO CORPORATION
TEL

045-777-7630

E-mailir@nisso.co.jp

URL

https://www.nisso.co.jp/

29