FY 3/2021

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

May 14, 2021

NISSO CORPORATIONTSE 1 Code: 6569

0

Summary
FY 3/2021 Results●Decreased revenue and profits year-on-year●Demand for electronic devices was strong●Human resources needs recovered overall●Impact of the earthquake and semiconductor shortages was limited

FY 3/2022 Consolidated Earnings Forecast●Expected increase in revenue and profits due to recovery in human resources demand●Will invest to transform into a high-growth corporate group

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

1・Please find the summary above.

1

CONTENTS

1

FY 3/2021

Financial Results Summary2

FY 3/2021

Overview of Activities

3

Future Prospects (FY 3/2022）

4

Shareholder Return Policy

5Supplementary Materials

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

2

2

１

FY 3/2021

Financial Results Summary

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved33

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

PointsFY 3/20• Revenue and profits decreased, partly
due to a decrease in enrollment.

Results

FY 3/21% of Total

Results

Year-on-Year% of Total

Increase(Decrease)% Change• Ordinary profit decreased by only 6.4%,
partly due to subsidy income.

Net sales

74,966100.0%

68,213100.0%(6,752)(9.0%)• Operations (number of working days,
overtime hours, holiday work, etc.)stabilized, and net sales in 4Q alone
increased from 3Q.

Gross profit

13,11517.5%

11,78717.3%(1,328)(10.1%)

SG&A
expenses

10,054

13.4%

9,188

13.5%

(866)

(8.6%)

Operatingprofit

3,061

4.1%

2,599

3.8%

(461)

(15.1%)

Ordinary
profit

3,149

4.2%

2,949

4.3%

(200)

(6.4%)

Profitattributableto owners ofparent

2,033

2.7%

1,592

2.3%

(440)

(21.7%)• In Other Businesses, the number ofresidents remained stable, resulting inincreased revenue and profits.

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

4・The following is the explanation of the Consolidated Financial Results for FY 3/2021.
・Net sales amounted to 68,213 million yen (down 6,752 million yen or -9.0% YoY)
・Gross profit amounted to 11,787 million yen (down 1,328 million yen or -10.1% YoY)
・SG&A (selling, general and administrative) expenses amounted to 9,188 million yen (down 866 million
yen or -8.6% YoY)
・Operating profit amounted to 2,599 million yen (down 461 million yen or -15.1% YoY)
・Ordinary profit amounted to 2,949 million yen (down 200 million yen or -6.4% YoY)
・Profit attributable to owners of parent amounted to 1,592 million yen (down 440 million yen or -21.7%
YoY)
・Revenues and profits decreased, partly due to a decrease in the number of enrolled staff due to theeffects of the new coronavirus (COVID-19) in 1H.
・With regards to ordinary profit, income from subsidies for employment adjustment was 399 million yen
for the entire Group, a decrease of 6.4% YoY.
・In Other Businesses, the overall occupancy rate at nursing care facilities remained at around 95%,
resulting in a profit for the full year.

4

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

（Unit: Million yen）

Net sales
20,000Operating profit
19,24818,435
17,942

1,400

18,81418,920

17,771
17,47017,983

16,784

16,557
16,414

15,999

1,165

1,200

1,039
947

914

1,000

767

800

15,000

920

650
542

600

400

525

477

372
206

200

10,000１Q ２Q ３Q ４Q １Q ２Q ３Q ４Q 1Q【FY 3/19】【FY 3/20】

2Q

3Q【FY 3/21】

4Q

0

１Q ２Q ３Q ４Q １Q ２Q ３Q ４Q 1Q【FY 3/19】【FY 3/20】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

2Q

3Q

4Q

【FY 3/21】

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

5

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

Net sales

FY 3/20• Net sales decreased by 9.6% partly due
to a decrease in enrollment as a result of
the effects of the new coronavirus(COVID-19) in 1H.

Results

FY 3/21% of Total

Results

Year-on-Year% of Total

Increase(Decrease)% Change

Net sales

69,209100.0%

62,549100.0%(6,659)(9.6%)• Since 2H, enrollment has gradually
recovered. Net sales were also on arecovery trend.

Gross profit

12,492

18.1%

11,22617.9%(1,266)(10.1%)

Expenses・Profits

SG&A
expenses

9,373

13.5%

8,603

13.8%

(769)

(8.2%)

Operatingprofit

3,119

4.5%

2,622

4.2%

(496)

(15.9%)

Ordinary
profit

3,124

4.5%

2,863

4.6%

(260)

(8.3%)

Profit

2,030

2.9%

1,530

2.4%

(500)

(24.6%)• Regarding ordinary profit, the profit
margin exceeded that of the previous FY,
partly due to the recording of subsidy
income from non-operating income.
• Investment in recruitment strengthenedin 4Q as human resources needs
recovered.

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

6

・The following is the explanation of NISSO’s Non-Consolidated Financial Results for FY 3/2021.
・Net sales amounted to 62,549 million yen (down 6,659 million yen or -9.6% YoY）
・Gross profit amounted to 11,226 million yen (down 1,266 million yen or -10.1% YoY)
・SG&A expenses amounted to 8,603 million yen (down 769 million yen or -8.2% YoY)
・Operating profit amounted to 2,622 million yen (down 496 million yen or -15.9% YoY)
・Ordinary profit amounted to 2,863 million yen (down 260 million yen or -8.3% YoY)
・Profit amounted to 1,530 million yen (down 500 million yen or -24.6% YoY)
・Non-consolidated subsidy income amounted to 290 million yen, and the rate of decrease of ordinary
profit was smaller than that of operating profit.
・In 1H, due to the effects of COVID-19, although NISSO responded by adjusting work shifts, overtime
hours, etc., since 2H, work shifts have normalized, and overtime hours have also been higher YoY.
・Employee recruitment expenses decreased by 715 million yen YoY, and accounted for the majority ofthe decrease in SG&A expenses.

6

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

（Unit: Million yen）

Operating profit

Net sales
18,00016,962
16,542
16,00017,478 17,775
17,3891,400

16,566

16,357

1,204

1,200

16,036

15,378

1,044
1,000

15,15315,002

14,590

958

940

800

663

14,000

555

577

600

400

903

783

468

399

12,000204

200

10,0000

１Q ２Q ３Q ４Q １Q ２Q ３Q ４Q 1Q【FY 3/19】【FY 3/20】

2Q

3Q【FY 3/21】

4Q

１Q ２Q ３Q ４Q １Q ２Q ３Q ４Q 1Q【FY 3/19】【FY 3/20】

2Q

3Q

4Q

【FY 3/21】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

7

・Shown above are graphs of NISSO's quarterly non-consolidated net sales and operating profit trends.
・In 4Q, although profits have a tendency to increase compared to 3Q, with regards to results, gross profit
decreased by 0.4% and the operating profit margin decreased by 0.5%. This was partly due to the factthat a considerable number of orders were received from major automobiles manufacturer groups, etc.,
and increases in expenses such as costs for strengthening recruitment, pre-assignment training, and forthe start-up of dormitories.

7

2

FY 3/2021

Overview of Activities

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88

FY 3/2021 Financial Results Summary
Consolidated Financial Results

Net Sales
68,213 Million yen （ -6,752 Million yen／ -9.0％ YoY）
Operating Profit 2,599 Million yen （ -461 Million yen／ -15.1％ YoY）
● Net Sales by Industry (YoY)
Automobiles
Electronic devices…(14.4％)… ＋3.2%● 4Q-end Number of Enrolled Staff
13,146 staff（-1,624 staff from FY 3/20-end ）・In the automobiles-related industry, although net sales decreased by 14.4%
YoY, it increased compared to 3Q. The impact of the earthquake andsemiconductor shortages was limited.
・In the electronic devices-related industry, net sales remained firm, partly due
to strong demand for semiconductors.
・Although the number of enrolled staff decreased by 1,624 compared to
FY 3/20-end, it increased by 454 compared to 3Q-end, and the recovery
trend continued.

（＋454 staff from 3Q-end）● Net Sales per Capita/Monthly
396 Thousand yen(-1 Thousand yen YoY)

・Operations (number of working days, overtime hours, holiday work, etc.)stabilized, and net sales per capita recovered to levels close to the previous FY.
The amount of decrease also improved from 3Q (which was at -6 Thousandyen).
Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

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

9

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

Net Sales Composition Ratios
Automobiles

Elec. Devices

10,650（15.3％）

Precision・Elec. Machinery(14.4％)

9,061（13.1％）(12.5％)

17,828（25.8％）

9,111（14.6％）

+3.2％

7,924

（12.7％）

18,406（29.4％）

Other【Precision・Electrical Machinery】
Despite a gradual recovery, net sales decreased by
12.5% YoY, partly due to a decrease in demand for
offices as a result of the promotion of remote work.

【Electronic Devices】
In addition to the increase in IT demand such as IoT,
5G, AI, etc., there was also global demand forsemiconductors, and net sales increased by 3.2%
YoY.

【Automobiles】
31,677（45.8％）

FY 3/20(14.4％)

27,104（43.3％）

FY 3/21※（ ）= % of Total net sales, Red = % of Year-on-Year growth

Domestic and international demand was stable.
Operations (number of working days, overtime hours,
holiday work, etc.) also maintained an increasing
trend. In addition to auto-body manufacturers, thenumber of staff at suppliers also increased, andalthough net sales decreased by 14.4% YoY, it
increased by 2.1% on a quarterly basis compared to
3Q.

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

10

・The following is the explanation of NISSO's non-consolidated net sales by industry.
・In the electronic devices industry, net sales increased by 3.2% YoY due to an increase in demand for5G and IT.
Although net sales of major manufacturers that manufacture capacitors decreased YoY, net sales inthe semiconductor industry compensated for overall net sales by having received new orders in
addition to existing ones.
・Although net sales in the automobiles industry decreased 14.4% YoY due to a decrease in enrollment,
it increased by 2.1% on a quarterly basis compared to 3Q.

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％）

4,330（29.7％）

2,690（17.0％）

2,404（14.3％）（17.5％）

2,427（15.6％）

4,752

4,646

（28.0％）

2,631

2,619

（15.8％） （15.9％）

2,348（14.2％）

4,198（25.4％）

2,371（14.3％）

4,057（24.5％）（Unit: Million yen）

Other

2,680

（15.4％）

2,317

2,774

（15.9％）

2,190（13.3％）（12.5％）

4,633

4,487

（26.6％）（25.7％）

2,563（14.4％）

2,182（12.3％）

4,650（26.2％）

5,227
１Q

2Q

（35.8％） （36.7％）

6,891

7,375

7,505

7,757

8,026

（40.6％）（44.6％）（45.3％）（44.6％）（45.9％）

3Q

4Q

１Q

2Q

3Q

【FY 3/19】

8,378（47.1％）

2,287

2,249

（14.3％）（12.6％）（12.1％）（13.9％）

1,895

4,680

4,413

（28.3％）（15.7％）

2,113（30.9％）（30.2％）

5,636

2,383

5,974
（39.4％）4Q【FY 3/20】

1Q（15.0％）（29.4％）

6,443（43.0％）

2Q

1,942
4,537

7,268

2190

（13.4％）

1973（12.1％）

4774（29.2％）

7,418（45.3％）（45.4％）3Q

4Q【FY 3/21】※（ ）= % of Total net sales

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

11・Shown above are the trends of NISSO's quarterly net sales by industry.
・Net sales in the electronic devices industry increased YoY, and while net sales in the automobiles
industry increased on a quarterly basis, it decreased YoY.
・With regards to the precision・electrical machinery industry, demand for offices decreased YoY due tothe infiltration of new work-styles such as remote work.
・However, orders from all manufacturers have recovered since entering 4Q, and the overall level has
been rising.

11

Net Sales per Capita（NISSO, Non-consolidated）● FY 3/2021 Totals＜Overall net sales per capita ＞
396 Thousand yen ( -1 Thousand yen YoY)
＜Skilled staff net sales per capita＞ 460 Thousand yen (-22 Thousand yen YoY)

●Although overall net sales per capita decreased YoY, on a quarterly basis, following 3Q, 4Q also increased YoY.
The number of skilled staff decreased YoY due to the effects of COVID-19 in 1H.
（Unit: Thousand yen）

（Unit: Thousand yen）

Net Sales per Capita

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

482

500

397
400

Skilled staff

Overall 460

500

396

400

300

300

200

200

100

100

0

FY 3/20

FY 3/21

478
379

471
383

513
410

484
392

485
391

482
396

Skilled staff
Overall

485

478
397

403

3Q

4Q

419
358

451
390

490

483

421

418

3Q

4Q

0

１Q

2Q

3Q

4Q

１Q

【FY 3/19】

2Q【FY 3/20】

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1Q

2Q【FY 3/21】

12

・The following is the explanation of NISSO's net sales per capita.
・The net sales per capita totals were as follows: overall was at 396 thousand yen, and skilled staff was at
460 thousand yen, both of which decreased YoY. However, although overall net sales per capita in 1Q
and 2Q were lower than in the corresponding periods of the previous fiscal year, in 3Q and 4Q, they
were significantly higher than in the corresponding periods of the previous fiscal year. This was mainly
due to an increase in overtime hours per capita compared to the corresponding periods of the previous
fiscal year.
・Although the net sales per capita of skilled staff seem to be stagnant, this was due to problems in the
procurement of semiconductors for automobiles, and the impact of the earthquake in the Tohoku regionin 4Q.

12

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

Compared w. 3Q-end

Number of Enrolled Staff at Quarter-end+454 staff (+3.6%)

Point①

15,000New hires recovered to the same level as theend of the previous FY. Also, the trend ofincreases was maintained, partly due to an
improvement in the turnover rate as a result of
the curbing of enrolled staff leaving NISSO.

13,00013,826 14,042
13,546
13,05014,77014,63914,638
14,282
13,146
12,692
12,524

13,243

11,000

Point②9,000

In addition to the automobiles-relatedindustry, the need for human resources inthe electronic devices-related industry
increased.

7,000

5,000

1Q

2Q

3Q

4Q

1Q

【FY 3/19】

2Q

3Q

4Q

1Q

【FY 3/20】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

2Q

3Q

4Q

【FY 3/21】

13

・The following is the explanation of NISSO's quarter-end enrollment on a quarterly basis.
・Despite the effects of COVID-19 in 1H, the number of enrolled staff increased by 454 compared to theend of 3Q as a result of upfront investment in recruitment in 4Q.
・In addition to the recovery of orders in the automobiles and semiconductor industries, an increase in thenumber of new hires and the improvement in the overall turnover rate contributed to the increase inenrollment.

13

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

Number of Skilled Staff

Point①
The number of skilled staff increased YoY (up186 from the end of the previous FY), despite
the impact of production cuts at somemanufacturers.

6,000

5,085
4,803
4,501

5,000

Point②

3,459

3,000

2,000

5,387
5,381 5,436
5,293

3,904

4,000

In addition to a strong presence in theautomobiles industry, the number of skilled
staff increased mainly in the AccountCompany Groups due to the recovery insupplier demand.

5,250

2,611
2,034

Point③
1,000

The ratio of skilled staff to NISSO's total
enrolled staff remained at 41.4%, partly due
to the increase in overall enrollment.
(FY 3/2021 3Q: 42.4%)

0

1Q

2Q

3Q

4Q

1Q

【FY 3/19】

2Q

3Q

4Q

【FY 3/20】

1Q

2Q

3Q

4Q

【FY 3/21】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

14

・The following is the explanation of NISSO's skilled staff.
・The number of skilled staff was affected by COVID-19 in 1H, and although there was a reduction of
about 150 staff at some auto-parts manufacturers, it is currently on a recovery trend.
For the full year, the number of skilled staff increased by 186, and the number of staff is expected tocontinue to increase, mainly at Account Companies.

14

Account Companies (NISSO, Non-consolidated)
Point①

Account Company Groups Net Sales

Total net sales of Account Company Groups
were -3.1% YoY, despite the effects of
COVID-19 in 1H.

(Unit: %)（Unit: Million yen）
Net sales (left axis)

12,00010,000

Point②44.5 44.1 44.2

45.9

6,107

47.7 48.0 47.1 47.6

43.3

7,677 7,565
7,416 7,366 7,300

8,000

Total net sales of the electronics AccountCompany Group increased significantly YoY.
The automobiles Account Company Group
recovered to near the previous FY.

43.7

42.7

41.9

Composition ratio (right axis)

50.0

45.0

8,152
7,225

6,564

7,201

7,5517,780 40.0

6,000

35.0

4,000

30.0

2,000

25.0

0

１Q

2Q

3Q

4Q

【FY 3/19】

１Q

2Q

3Q

【FY 3/20】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

4Q

1Q

2Q

3Q

4Q

20.0

【FY 3/21】

15

・The following is the explanation of NISSO's Account Companies.
・While NISSO's net sales decreased by 9.6% YoY, total net sales of Account Companies decreased byonly 3.1%, and remained relatively steady even in the wake of the COVID-19 pandemic.
・In the automobiles Account Company Group, while results were temporarily higher in 3Q YoY, they
were slightly lower in 4Q YoY.
・Although net sales decreased YoY in the electronic components Account Company Group, theelectronics Account Company Group made significant progress, with semiconductors remaining firm.
・Although the precision・electrical machinery Account Company Group, which manufactures multifunction
machines and other products, has finally bottomed out, it has remained at a horizontal level.

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

FY 3/2021 Results
Overall turnover rate

Overall4.2％

7(-0.5 pts vs. FY 3/2020)

5.9
6Skilled staff turnover rate

7

5.5
4.9

2.0％

5

(±0.0 pts vs. FY 3/2020)

6

4.6

4.7

4

1.7

2

・The overall turnover rate improved by
0.5 points to 4.2%, down from the previous
FY.
・The turnover rate of skilled staff remained at
the same level of the previous FY at 2.0%,
despite the impact of production cuts at somemanufacturers.

5.1

5

4.7

4.4

4.2

2.0

2.0

3Q

4Q

4

3

PointsSkilled staff

1.5

2.0

3

2.0

2.3

2
1

1

0

0
FY 3/16

FY 3/17

FY 3/18

FY 3/19

FY 3/20

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1Q

2Q【FY 3/21】

16

・The following is the explanation of NISSO's turnover rates.
・Although the overall turnover rate was difficult to control in 1H, it was 4.2% for the full year, an
improvement of 0.5 percentage points from the previous fiscal year.
・On a quarterly basis, NISSO has been able to maintain a turnover rate of less than 4% in both 3Q
and 4Q.
・Although the turnover rate of skilled staff worsened in 1H, NISSO was able to return it to the same level
as the previous fiscal year at 2.0% for the full year.

16

Educational Achievements（NISSO, Non-consolidated）● FY 3/2021 4Q Course-specific educational achievements

Point①(total # of participants)

The overall number of participants decreased
YoY due to the limit on the number ofparticipants as a result of COVID-19.

Training course name
Skilled staff
education
Basic maintenanceeducation

Point②Equipment maintenance needs centered on
semiconductor manufacturers were strong,
and training was in full operation.

Point③
Employee education increased YoY partly due
to the enhancement of online training using
the Web.

Accredited vocational
training education

４Ｑ（Jan - Mar）

(Unit: # of participants)

Contents

FY 3/21
Total(Reference)
FY 3/20Total

251 Standard skilled staff education

970

1,960

Basic equipment maintenance

259

373

55 education

Accredited vocational training school

7 (Miyagi・Nagano Prefectures)

68

200

Manufacturing
education

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

2,840

3,895

Safety education

561 Danger・risk simulation education

2,348

3,455

Employee education

143 newly appointed chief education,

582

496

Entrusted education from externalsources

44

28

7,111

10,407

New graduate/mid-career entry/
mid-level employee training,on-site supervisor education

Other education

Total

ー

1,836

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17

・The following is the explanation of NISSO's educational achievements.
・In terms of training achievements, the needs for equipment maintenance personnel remained firm.
・Due to the effects of COVID-19, real training was conducted after implementing infection control
measures. Meanwhile, by trying out new forms of education using the Web, forms of training other thanreal training are taking root.
・NISSO will also continue to work on e-learning and new types of training using VR in the future.

17

Other Businesses Business Revenue
Points●Results of Other Businesses• Achieved full-year profit by stabilizing thenumber of residents in all facilities.
• The number of residents in nursing carefacilities Buildings 1~5 has increased since theend of December Building 6 has also
maintained an occupancy rate of more than90%.

FY 3/20
Results（Unit: Million yen）

FY 3/21% of Total

Results

Year-on-Year% of Total

Increase(Decrease)% Change

Net sales

2,796

100.0%

2,972

100.0%

176

6.3%

Expenses

2,850

101.9%

2,949

99.2%

99

3.5%

Operatingprofit (loss)

(54)

(1.9)

23

0.8%

77

ー

(Unit: # of residents)

Number of facility residents[Bldg.1-5] (capacity:308)# ofresidents[Bldg.6] (capacity:94)

300

297

298

298

200

96.4%

96.8%

96.8% 94.8%

292

294
95.5%

80

90%

75

60
40

100

73

77.7%

79.8%

84
89.4%

90

87

95.7%

92.6%

Occupancy
rate

90%

20

0

Mar'20-end Jun'20-end Sep'20-end Dec'20-end Mar'21-end

40%

0Mar'20-end Jun'20-end Sep'20-end Dec'20-end Mar'21-end

40%

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

18

・The following is the explanation of Other Businesses.
・The occupancy rate of all nursing care facilities has been maintained at an average of about 95%, andthis business has also become profitable.

18

3

Future Prospects (FY 3/2022)

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19

FY 3/2022 Full-year Consolidated Forecasts
In the full-year consolidated forecast, NISSO expects increased revenue and profits. This forecast includes
investments for growth.
■FY 3/2022 Full-year Consolidated Forecast (April 1, 2021 ~ March 31, 2022)

Net sales

FY 3/21 Results

FY 3/22 Forecast

Results

Forecast% of Total(Unit: Million yen)

Year-on-Year% of Total

Increase(Decrease)% Change

68,213100.0％

76,000100.0％

7,786

11.4％

Operating profit

2,599

3.8％

3,000

3.9％

400

15.4％

Ordinary profit

2,949

4.3％

3,000

3.9％

50

1.7％

Profit attributableto owners ofparent

1,592

2.3％

2,000

2.6％

407

25.6％

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20

・The following is the explanation of the Full-year Consolidated Forecasts.
・Due to low profits on net sales, we plan to invest about 500 million yen or so in promotions of ourown recruitment website and new businesses in anticipation of the future.
・Although we hire more than 50% of all new employees on NISSO's own website, we are considering
investing about 300 million yen in the promotion of this site. By doing so, we plan to curb monthly
recruitment expenses from 2H onward to just over 100 million yen even if orders expand.
・In addition, NISSO would like to focus on securing and developing human resources to expand thetechnical area. By utilizing e-learning and VR, it is our hope that many people will consider converting
into engineers.
・Together with existing and new partners, NISSO would like to create new businesses that utilize digitaltechnologies such as AI.

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4

Shareholder Return Policy

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21

21

Shareholder Return Policy
Basic Policy
NISSO considers the redistribution of profits toshareholders and the enhancement of corporate value
as key management issues. In addition, by setting theconsolidated dividend payout ratio of 30% as a generalstandard, NISSO's basic policy is to continue to steadily
redistribute profits to all of our shareholders.

Dividend and Payout Ratio(Unit: Yen)
30.00

• NISSO plans to pay a dividend of 20.10 yen per
share (ordinary dividend of 15.10 yen,commemorative dividend of 5.00 yen) as announced
in the "Notice of Revision of Dividend Forecast for the
Fiscal Year Ending March 31, 2021 (50th Anniversary
Commemorative Dividend)" on February 8, 2021.

100%
90%
80%

20.10 yen

18.50 yen

18.00 yen

41.3%

15.00

10.00

(Unit: %)Payout ratio (right axis)

25.00 yen

25.00

20.00

FY 3/2021 Dividend (Expected)

Dividend (left axis)

42.7%

60%
50%

30.6%

30.0%

70%

40%
30%
20%

5.00

10%
0.00

FY 3/19

FY 3/20

FY 3/21(Expected)

FY 3/22 (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
amount after the stock split.

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

22

・The following is the explanation of the Shareholder Return Policy.
・With regards to the year-end dividend per share, NISSO plans to pay a dividend of 20.10 yen per share,
which includes an ordinary dividend of 15.10 yen in addition to a 50th Anniversary commemorative
dividend of 5.00 yen.
・With regards to the next dividend per share, NISSO expects a payout of 18.00 yen with a payout ratioof 30% or more as a guide.

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5Supplementary Materials

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23

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

Mar. 2021-end

AmountAmount% of Total% of Total

Increase(Decrease)

15,622

69.5

14,813

68.5

(808)

Cash and deposits

6,365

28.3

5,873

27.2

(491)

Notes and accounts receivable - trade

8,434

37.5

8,094

37.4

(339)

6,871

30.5

6,817

31.5

(54)

4,754

21.1

4,654

21.5

(99)

377

1.7

305

1.4

(71)

1,739

7.7

1,857

8.6

117

Current assets

Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets

22,494100

21,631

100(862)

Current liabilities

9,279

41.3

8,178

37.8

(1,100)Accrued expenses

4,648

20.7

4,541

21.0

(106)

Total assets

812

3.6

494

2.3

(317)

1,904

8.5

1,163

5.4

(741)

1,319

5.9

689

3.2

(629)

623

2.8

-

-

(623)

Total liabilities

10,598

47.1

8,868

41.0

(1,730)Shareholders' equity

11,97453.2

12,74458.9

770

Total net assets

11,89552.9

12,76359.0

867

Total liabilities and net assets

22,494100

21,631

100(862)

Income taxes payable
Accrued consumption taxes
Non-current liabilities
Long-term loans payable

Point①Decreases due to reduced operations
Due to the reduction of operations in the
manufacturing-related human resources services,"notes and accounts receivable - trade", etc., ofcurrent assets and "accrued expenses", etc., ofcurrent liabilities decreased.
②Accrued taxes
Due to a decrease in net sales, etc., "income
taxes payable" and "accrued consumption taxes",
etc., of current liabilities decreased.
③Repayment of loans payableAs a result of lump sum repayment of longterm loans payable, the balance of "long-termloans payable" of non-current liabilities has been
reduced to zero.
④Overall
As a result of the above, total assets decreasedby 3.8% YoY, total liabilities decreased by 16.3%
YoY, total net assets increased by 7.3% YoY, andequity ratio increased by 6.1% YoY to 59.0%.

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved24

24

Consolidated Statements of Cash Flows(Unit: Million yen)

FY 3/20
AmountFY 3/21
AmountIncrease(Decrease)

CF from operating activities

1,922

1,672

(249)

CF from investing activities

(289)

(496)

(206)

CF from financing activities(901)(1,668)(766)

Net increase (decrease) in cash
and cash equivalents

731

(491)

(1,222)

Cash and cash equivalents at
beginning of period

5,633

6,365

731

Cash and cash equivalents at
end of period

6,365

5,873

(491)

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Point①Cash flows from operating activities
In the current FY, revenues amounted to
1,672 million yen. Tax payments such as
income taxes・consumption taxes, andexpenses, etc., due to a decrease in accrued
expenses were absorbed by revenues, etc., asa result of decreases in profit before income
taxes and accounts receivable - trade.
②Cash flows from investing activities
In the current FY, expenditures amounted to
496 million yen, mainly due to stock
investments associated with business alliancesand capital investments for core systems.
③Cash flows from financing activities
Payments such as the lump-sum repaymentof loans payable and the payment of dividends
resulted in expenditures of 1,668 million yen.

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25

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

For future IR-related inquiries

Investor Relations Office, NISSO CORPORATION
TEL

045-777-7630

E-mailir@nisso.co.jp

URL

https://www.nisso.co.jp/26