Financial Results Briefing Materials
for FY 3/2019
May 14, 2019
NISSO CORPORATION
TSE1 Code:6569

1Financial Results Summary for FY 3/2019

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved1

FY 3/2019 Non-consolidated Financial Results Highlights◆Amid continued strong demand from clients such as the automobiles industry, sales and profits◆アカウント企業への技能社員投入により売上及び利益増加
increased due to the assignment of skilled staff to high-unit cost clients, mainly Account Companies◆提供サービスの質と就業意欲の向上のため、人材育成への投資を積極的に行う◆Improvementsin the treatment of workers and increases in educational investment were absorbed withthe（教育施設開所、受講者増加）
increase in sales, and gross profit margin increased by 0.2 pts YOY; due to continued efforts tocontrol increases in SG&A expenses, operating profit margin increased by 1.3 pts YOY （単位：百万円）(Unit: Million yen)

FY 3/2018

FY 3/2019Year-on-Year
Increase(Decrease)

Results% of Total

Results% of Total

Net sales

53,184100.0%

63,474100.0%

10,28919.3%

Gross profit

9,616

18.1%

11,603

18.3%

1,987

20.7%

SG&A expenses

7,819

14.7%

8,641

13.6%

821

10.5%

Operating profit

1,796

3.4%

2,962

4.7%

1,165

64.9%

Ordinary profit

1,759

3.3%

2,943

4.6%

1,184

67.3%

Profit

1,000

1.9%

2,240

3.5%

1,240

124.0%

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved% Change2

FY 3/2019 Non-consolidated Quarterly Financial Results Trend◆Due to the fewer number of operating days in 4Q, net sales and profits slightly decreased. Enrollment andincoming orders remain steady【Net sales】
18,00016,962 16,542

16,00014,00014,101

14,59014,100【Operating profit】（Unit: Million yen）

（Unit: Million yen）

1,200

1,044

15,378940

1,000

12,325 12,657

800

12,00010,000703
577

600

8,000

443

400

6,000
4,000337399

3122002,00000

１Q

２Q

３Q

４Q

【FY 3/2018】

１Q

２Q

３Q

４Q

【FY 3/2019】

１Q

２Q

３Q

４Q

【FY 3/2018】

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

１Q

２Q

３Q

４Q

【FY 3/2019】
3FY 3/2019 Consolidated Financial Results Highlights (P/L)◆NISSO: Steady growth in financial results due to promotion of increases in enrollment and assignmentof skilled staff to Account Companies (high unit cost companies), and results from unit cost negotiations◆In the current FY, increases in amounts of salary paid, domestic capital investment, and increases ineducation and training expenses met the applicable tax deduction requirements of the Act on Special
Measures concerning Taxation, and were subject to special corporate tax deductions, thereby
contributing to profits（Unit: Million yen）

FY 3/2018

FY 3/2019Year-on-Year
Increase(Decrease)

Results% of Total

Results% of TotalNet sales

59,208100.0%

69,161100.0%

9,95316.8%

Gross profit

10,373

17.5%

12,239

17.7%

1,865

18.0%

SG&A expenses

8,573

14.5%

9,370

13.5%

796

9.3%

Operating profit

1,800

3.0%

2,869

4.1%

1,068

59.4%

Ordinary profit

1,781

3.0%

2,895

4.2%

1,113

62.5%

Profit attributableto owners of parent

1,014

1.7%

2,053

3.0%

1,039 102.4%

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved% Change4

FY 3/2019 Consolidated Quarterly Financial Results Trend【Operating profit】【Net sales】（Unit: Million yen）

17,94220,000（Unit: Million yen）

1,200

18,435
15,613 15,521 15,999

15,00013,907

1,039

16,7841,000914

14,166800
10,000717600400542396381372304

5,00020000

１Q

２Q

３Q

４Q

【FY 3/2018】

１Q

２Q

３Q

４Q

【FY 3/2019】

１Q

２Q

３Q

４Q

【FY 3/2018】

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

１Q

２Q

３Q

４Q

【FY 3/2019】5Other Businesses

Business Revenue【Other Businesses Results】（Unit: Million yen）

FY 3/18

FY 3/19
３Q

４Q

FY 3/18

FY 3/19

Full year

Full year

1st Half

３Q

４Q

1st Half

Net sales

1,143

567

562

1,208

643

634

2,273

2,485

Expenses

1,174

579

621

1,351

692

688

2,374

2,732

Operatingprofit (loss)

(30)

(11)

(58)

(143)

(49)

(54)

(101)

(247)

◆Net sales increased due to increase in residents at Sweetpea Higashi Totsuka◆Although sales increased due to increase in residents at Sweetpea Higashi Totsuka,
upfront investment expenses could not be absorbed《Fee-based senior-care nursing home # of residents as of 3/2019-end》
Bldg. #1 - 5# of residents: 295 occupancy rate: 95.7% (capacity: 308)
Bldg. #6 (Sweetpea Higashi Totsuka) # of residents: 33 occupancy rate: 35.1% (capacity: 94)

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

6

Net Sales by Industry (NISSO, Non-consolidated)【 Trend of Net Sales Composition Ratios 】（Unit: Million yen）

70,000Other+5.5％
10,808（17.0％）

60,00050,00040,00030,000Other
10,244（19.3%）

Precision・Electrical machinery

9,605（15.1％）+7.9％

Precision・Electrical machinery

8,899（16.7％）

Electronic devices

17,927（28.3％）

 Automobiles:
Domestic production remained
strong, and expanded
significantly from previous FY+32.3％

 Electronic devices:
Although there was somedecline in demand from
FY 3/19 2H, is according tooriginal plan

15,047（28.3％）
20,000Automobiles

10,00018,993（35.7％）

25,130（39.6％）

0

FY 3/18

 Continued strong performancein client markets, centering on
automobiles industry where
there is a high ratio of NISSO's
net sales+19.1％

Electronic devices

Automobiles※（ ）= % of total sales※ □ = % of Year-on-Year growth

FY 3/19
Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved7

Trend of Enrolled Staff (NISSO, Non-consolidated)【Trend of Number Enrolled at FY-end】(Unit: # of staff)

15,00014,042
14,00013,00012,44412,00011,00011,497
10,561＋947 staff/year

10,0009,000＋1,598 staff/year＋936 staff/year Enrollment at
FY 3/19-end:
14,042 staff
From FY 3/18-end:
Increase of 1,598 staff(12.8%)
 Continued significant
increased enrollment inautomobiles-relatedcompanies Demand for humanresources by
manufacturers is
expected to remain highdue to labor shortages8,00007,000
FY 3/16-end

FY 3/17-end

FY 3/18-end

FY 3/19-end

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved8Trend of Net Sales per Capita（NISSO, Non-consolidated）【Net sales per capita (monthly average conversion)】(Unit: Thousand yen)

400

391

390
380

＋24,500 yen/year

360

350

 Increase in net sales percapita due to result of unit
cost negotiations associatedwith expansion oftransactions with AccountCompanies throughplacement of skilled staff

367

370

344
＋22,000 yen/year340

 FY 3/19 net sales per capita:391 thousand yen
From FY 3/18:
Up 24,500 yen (+6.7%）

330
FY 3/17

FY 3/18

FY 2Q
3/19

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

9Number of Skilled Staff（NISSO, Non-consolidated）◆Skilled staff are making gains according to plans◆FY 3/19-end: 3,904 staff (Enrollment as of April-end: 4,372 staff)【Trend in # of Skilled Staff】(Unit: # of staff)

3,904

FY 3/18-end
approx. 1,600 staff

3,459
2,611
2,034
1,600

FY 3/19-end

3,904 staff
FY 3/18-end

FY 3/19Jun.-end

FY 3/19
Sep.-end

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

FY 3/19
Dec.-end

FY 3/19-end

Turnover Rates (NISSO, Non-consolidated)◆FY 3/19 Overall turnover rate: 4.6% (declined by 0.3 pts YOY)
◆FY 3/19 Skilled staff turnover rate: 1.5% (declined by 0.2 pts YOY)
【Trend of Turnover rates】

7.0
6.0

5.9（Unit：%）

5.5
4.9

5.0

Overall

4.6

4.6

4.7

1.3

1.3

2Q YTD

3Q YTD

4.6

4.0

3.0
1.7

2.0

Skilled staff

1.0

1.5

1.00.0FY 3/16

FY 3/17

FY 3/18

1Q(Apr. - Jun.) (Apr. - Sep.) (Apr. - Dec.)
Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

FY 3/19
3/19
FY11

Account Companies (NISSO, Non-consolidated)【Account Company Groups Net Sales and % of Total】（Unit：Million yen/%）35,00044.0%

30,00027,45443.0%

25,000

43.3%

42.0%

20,00015,00020,885

41.0%

39.3%

40.0%

10,000

39.0%

5,000

38.0%

037.0%

FY 3/18

FY 3/19

FY 3/18

FY 3/19

Increase

Accounts total(４Groups)
Total net sales

20,88527,454

6,569

53,18363,474

10,289% of Total

39.3%

43.3%

4.0 pts

 Favorable production conditions
continued for Account CompanyGroups, centering on automobiles
company group
 Increase in net sales due toreinforcement of skilled staff
assignments to Account Companies
and negotiation of unit costs;
amounted to 43.3% of NISSO's netsales shares in FY 3/19

[Reference]
FY 3/19 3Q:

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved% of Total: 42.8%

12

Educational Achievements（NISSO, Non-consolidated）【4Q Course-specific educational achievements (total # of participants)】
Training course
nameSkilled staff
education
Accredited
vocational
training education
Manufacturing
education
Safety education
Basicmaintenanceeducation
Employeeeducation
Other education

Total

1Q

2Q

Apr-Jun Jul-Sep

523

393

3Q

4Q

Total

Oct-Dec

Jan-Mar

Apr-Mar923

683 2,522

80

84

91

1,173

975

372

527

202

264

507

349 1,322

149
2258
61

30
31

45
51

Standard skilled staff education

 1,746 educational participantsfor 4Q (FY total 7,690)
 Steady increase in participants
for basic maintenanceeducation

Accredited vocational training school(Miyagi・Nagano Prefectures)

 Nisso Technical Center
Naka-Nihon
MONOZUKURI (manufacturing) {basic,Semiconductor manufacturingexpert} education, pre-assignment
equipment maintenancetraining for manufacturing staff,
participants:
3,047 mobile education
FY Total 127 participants

6334（Unit: # of participants）

318

167
292
22

Danger・risk simulation education
Basic equipment maintenanceeducation
New graduate/mid-career entry/midlevel employee training, newly
appointed chief education, on-site
supervisor education
Contracted education from externalsources

2,166 1,831 1,947 1,746 7,690
Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved Participants for skilled staff
education are assigned tohigh-unit cost production
sites, including AccountCompanies, which lead toincrease in net sales per capita
 NISSO will continue toimprove added value ofprovided services throughpractical education andtraining in the future13

Topics【Examples of Account Company Initiatives】■The scheme of "Trained Skilled Staff Assignment", which is NISSO's priority
initiative, was established, and NISSO received high evaluations for high qualityservices through pre-employment education; entry to new plant was decided（Electronics Manufacturer Group）■Recognized for our assignment achievements, retention, and training efforts, NISSO
was selected as one of the main suppliers by a major electronics group company（Electronics Manufacturer Group）■With the consolidation of dispatching business operators being reduced from 10
companies to 5 companies, NISSO was highly regarded for our trained skilled staff,
continuing business with the client and expanding our shares（Automobiles Manufacturer Group）■Among 27 dispatching operators engaged in transactions, NISSO's achievements infulfillment and retention were highly assessed, and NISSO received commendation/
award（Automobiles Manufacturer Group）
Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

14

Future Market Trends and NISSO’s Client Trends【Automobiles-related】
Domestic demand for automobiles (standard・small) is expected toremain unchanged from the previous fiscal year
【Electronic Devices-related】
Although demand for smartphones is decelerating, automotive- and5G communications-related components sectors are promising, andexpected to grow
【Recruiting Environment】
Effective opening-to-application ratio of jobs are at a high level,labor shortages continue in every industry

NISSO's client trends remain steady, client expectations forthe quality of human resources exceed labor shortages, anddemands continue to increase
Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved15

２Earnings Forecast for FY 3/2020

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

16

FY 3/2020 Consolidated Earnings Forecast【FY 3/2020 Consolidated Earnings Forecast】(Unit: Million yen)

FY 3/19 Results
Amount% of Total

FY 3/20 Results
Amount% of TotalYear-on-Year
Increase(Decrease)% Change

Net sales

69,161100.0%

80,000100.0%

10,839

15.7%

Operating profit

2,869

4.1%

3,900

4.9%

1,031

35.9%

Ordinary profit

2,895

4.2%

4,000

5.0%

1,105

38.1%

Profit attributable toowners of parent

2,053

3.0%

2,760

3.5%

707

34.4%

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved17Outlook for Consolidated Earnings Trends

Net sales

Operating profit(Unit: Million yen)

90,00080,00080,000

3,900

4,000
3,500

2,869

3,000

69,16170,000

2,500

1,800

2,000

59,20860,0001,50053,533
50,000(Unit: Million yen)

4,500

999

1,00047,335860

500
040,000
FY 3/16

FY 3/17

FY 3/18

FY 3/19

FY 3/20
forecast

FY 3/16

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

FY 3/17

FY 3/18

FY 3/19

FY 3/20
forecast

18

３

Shareholder Returns

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

19Shareholder Returns
FY 3/18 dividend payout

FY 3/19 dividend forecast FY 3/19 decided dividend amount（Announced 3/15/2019）10.50

15.75yen/shareyen/share(Consolidated dividendpayout ratio 27.7％)(Consolidated dividend
payout ratio 30.0％)

18.50
yen/share(Consolidated dividend
payout ratio 30.0％)

The Company's common stock was split at a ratio of 2 shares for 1 share on August22, 2018, and then at a ratio of 2 shares for 1 share on May 1, 2019.
The above dividend is the converted amount after the stock split.

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved20

FY 3/20 Dividend Forecast

Continued dividend payout ratio of 30% or more
In view of +share price level, liquidity, demand for funds, etc., share buy-backs are implemented flexibly

FY 3/19

FY 3/20 forecast

Profit2,053 million yen

2,760 million yen

EPS

61.58

82.24

Dividend per share

18.50

25.00

Dividend payout ratio

30.0％

30.4％

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

４Supplementary Materials

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

22

FY 3/2019 Consolidated Balance Sheet (B/S)（Unit: Million yen, %）3/18-end
AmountCurrent assets

3/19-end% of Total

Amount% of Total

Increase(Decrease)12,75364.2

14,174

67.4

1,421

Cash and deposits

5,283

26.6

5,633

26.8

349

Notes and accounts receivable - trade

6,791

34.2

7,757

36.9

965

7,117

35.8

6,844

32.6(272)

4,994

25.1

4,942

23.5

(51)

380

1.9

359

1.7(20)

1,742

8.8

1,542

7.3

(200)

Total assets

19,870100

21,019100

1,149

Current liabilities

8,206

41.3

9,161

43.6

954

501

2.5

183

0.9(318)

Accrued expenses

4,331

21.8

4,751

22.6

420

Non-current liabilities

2,345

11.8

1,312

6.2 (1,033)

1,883

9.5

750

3.6(1,132)

Total liabilities

10,552

53.1

10,47449.8(78)

Shareholders' equity

9,130

45.9

10,535

50.1

1,404

Total net assets

9,317

46.9

10,544

50.2

1,227

Total liabilities and net assets

19,870100

21,019100

1,149

Non-current assets
Property, plant and equipment

Intangible assets
Investments and other assets

Current portion of long-term loans payable

Long-term loans payable

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

Point①Increases due to businessexpansion
Notes and accounts receivable - trade, etc.,
under current assets, and accrued expenses,etc., under current liabilities increased as aresult of business expansion.
②Decrease in loans payable
Loans payable decreased significantly as aresult of the ahead-of-schedule repayment oflong-term loans payable with increased funds
from the IPO and operating cash flows forthe current FY.
③Overall
As a result of the above, total assets
increased by 5.8% YOY due to an increase incurrent assets, and liabilities decreased by
0.7% YOY due to a decrease in non-current
liabilities. In addition, net assets increased by13.2% YOY due to the increase inshareholders' equity as a result of therecording of profits, and equity ratio was at
50.2%.
23

FY 3/2019

Consolidated Statement of Cash Flows（Unit: Million yen, %）FY 3/18
AmountFY 3/19

Increase(Decrease)

Amount

CF from operating activities

2,751

2,565

(186)

CF from investing activities

(102)

0102

CF from financing activities
Net increase (decrease) incash and cash equivalents
Cash and cash equivalents at
beginning of period
Cash and cash equivalents at
end of period(735)(2,215)(1,480)1,914349(1,564)

3,369

5,283

1,914

5,283

5,633

349

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

Point①Cash flows from operating activities
Revenues from increases in profit before
income taxes, depreciation and accrued
expenses absorbed expenditures in notes
and account receivable-trade and incometaxes paid, etc., and revenues amounted to2,565 million yen.
② Cash flows from investing activities
Revenues from the sale of crossshareholdings absorbed capital investments
in training facilities and recruitment,resulting in almost no gains or losses.
③ Cash flows from financing activities
Due to the ahead-of-schedule repaymentof long-term loans payable, expenditure on
dividends, and purchase of treasury shares,expenditures amounted to 2,215 million
yen.

24

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 forward-looking statements described
due to changes in various factors.

For future IR-related inquiries
IR Division, PR・IR Department
NISSO CORPORATIONTEL ： 045-777-7630

E-mail ： ir@nisso.co.jp
URL ： https://www.nisso.co.jp/
Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved25