Consolidated Financial Results for the First Quarter of FY 3/2025 [Japanese GAAP]
August 7, 2024
Company NameNISSO HOLDINGS Co., Ltd.

Securities Code9332

ＵＲＬ https://www.nisso-hd.com

Representative(Title)Representative Director,
President & CEO（Name）Ryuichi Shimizu

Contact Person(Title)Managing Director & CFO（Name）Naoki Hayakawa ＴＥＬ +81-45-514-4323

Scheduled date of payment ofdividend

Stock Exchange Listing: Tokyo-

Preparation of supplementary materials
for financial results: Yes(Scheduled to be posted on the Company's website on August 7, 2024 (Wed.))Holding of financial results briefing: (Scheduled to be held for institutional investors and analysts on August 7, 2024
Yes

(Wed.))（All amounts are rounded down to the nearest million yen）

1. Consolidated Financial Results for the First Quarter of FY 3/2025 (April 1, 2024 – June 30, 2024)(1) Consolidated operating results（Percentages represent year-on-year changes）
Net salesFirst three months ended
June 30, 2024
June 30, 2023
(Note) Comprehensive income

Operating profit

Profit attributable toowners of parent

Ordinary profit

Million yen%

Million yen%

Million yen%

Million yen%

25,164

－

878

－

887

－

511

－

－

－

－

－

－

－

－

－

For the first 3 months ended June 30, 2024: 523 Million yen (－%)
For the first 3 months ended June 30, 2023: － Million yen (－%)

Net income per share

Diluted net income per
share

First three months ended
June 30, 2024
June 30, 2023
(Note)

Yen

Yen

15.62

－

－

－

1. Since the Company was established on October 2, 2023 through a single share transfer, there are no results for theprevious consolidated fiscal year.
2. Diluted net income per share is not listed because there are no dilutive shares.

(2) Consolidated financial position
Total assets
As ofJune 30, 2024
March 31, 2024
(Reference) Equity capital

Net assets

Equity ratio

Million yen

Million yen%

30,472

15,16648.9

15,33348.0

31,354As of June 30, 2024:

14,894 Million yen

As of March 31, 2024:

15,057 Million yen

2. Dividends
Dividend per share
1Q-endFiscal year ended March
31, 2024
Fiscal year ending March
31, 2025
Fiscal year ending March
31, 2025（Forecast）(Note)

2Q-end3Q-endYear-end

Total

Yen

Yen

Yen

Yen

Yen

－

－

－

20.50

20.50

0.00

－

22.00

22.00

－

1. Revisions to the most recently announced dividend forecast: None
2. Since the Company was established on October 2, 2023 through a single share transfer, there are no results up to thesecond quarter of the previous consolidated fiscal year.

3. Consolidated Forecast for FY 3/2025 (April 1, 2024 – March 31, 2025)（Percentages represent year-on-year changes）
Net sales
Million yen

Full year

106,000

Operating profit% Million yen
9.4

3,800

Profit attributableto owners of parent

Ordinary profit% Million yen

24.3

3,800

% Million yen
24.3(Note) Revisions to the most recently announced consolidated earnings forecast: None

2,400

Net income per
share

%

Yen

22.9

73.25

※

Notes
(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting inchanges in the scope of consolidation): None
Newly added: （Co. name）, Excluded: （Co. name）(2) Application of special accounting methods for the presentation of quarterly consolidated financial
statements: None
(3) Changes in accounting policies and accounting estimates, and restatements① Changes in accounting policies due to revisions in accounting standards, etc.:② Changes in accounting policies other than ① above:③ Changes in accounting estimates:④ Restatements:

None
None
None
None

(4) Number of outstanding shares (Common stock)①②③

Number of shares outstanding at
the end of the period(including treasury shares)
Number of treasury shares atthe end of the period
Average number of shares during
the period (Quarterly total)

As of Jun.
30, 2024
As of Jun.
30, 2024

34,024,720

Shares1,260,746

SharesFirst threemonths ended

As of Mar.
31, 2024
As of Mar.
31, 2024

34,024,720

Shares1,260,745

Shares－SharesFirst three
32,763,974 Sharesmonths ended

Jun. 30, 2024
Jun. 30, 2023
(Note) Since the Company was established on October 2, 2023 through a single share transfer, there are no results for thecorresponding quarter of the previous consolidated fiscal year.

※

Review of accompanying quarterly consolidated financial statements by certified public accountants or
auditing corporations: None

※ Cautionary statement on the appropriate use of earning forecasts, and other special items（Notes on forward-looking statements, etc.）
Earnings forecasts regarding future performance and other forward-looking statements in this material are
based on certain assumptions judged to be valid and on information that is currently available to theCompany, and do not represent promises by the Company that these figures will be achieved. In addition,
actual results may differ significantly due to a variety of factors. For prerequisite conditions,precautions for use regarding the earnings forecasts, etc., please refer to "1. Overview of Operating
Results, (3) Description of Future Forecast Information such as Consolidated Forecasts, etc." on P.5 of theattachments.
（Supplementary materials for financial results and method of obtaining content for financial results
briefing）
The Company is planning to hold a briefing session for institutional investors and analysts on Wednesday,
August 7, 2024. (In Japanese only)
The financial results briefing materials for the First Quarter of FY 3/2025 to be used on that day will be
posted on the Company’s website on the day of the announcement of financial results (Wednesday, August 7,2024).

○Contents of Attachments
１．Overview of Operating Results ………………………………………………………………………………………

2（１）Summary of Operating Results for the Quarter ……………………………………………………………

2（２）Summary of Financial Position for the Quarter…………………………………………………………

4（３）Description of Future Forecast Information such as Consolidated Forecasts, etc. ………………

5

２．Quarterly Consolidated Financial Statements and Notes ………………………………………………………

6（１）Quarterly Consolidated Balance Sheet ………………………………………………………………………

6（２）Quarterly Consolidated Statements of Income and Comprehensive Income ……………………………

8

Quarterly Consolidated Statement of Income
First Quarter of FY 3/25 ……………………………………………………………………………………

8

Quarterly Consolidated Statement of Comprehensive Income
First Quarter of FY 3/25 ……………………………………………………………………………………

9（３）Notes to Quarterly Consolidated Financial Statements …………………………………………………

10（Notes on Going Concern Assumption） ………………………………………………………………………… 10（Notes on Significant Changes in the Amount of Shareholders' Equity） ……………………………

10（Notes to Quarterly Consolidated Statements of Cash Flows） …………………………………………

10（Notes on Segment Information, etc.） ………………………………………………………………………

10

- 1 -

１．Overview of Operating Results
NISSO HOLDINGS Co., Ltd. (hereinafter, the "Company") was established on October 2, 2023 as the wholly
owning parent company of NISSO CORPORATION through a single share transfer. However, since there has beenno substantial change in the scope of consolidation, items for which comparisons are made with thecorresponding quarter of the previous consolidated fiscal year have been compared with the consolidated
cumulative first quarter of FY 3/2024 (April 1, 2023 to June 30, 2023) of NISSO CORPORATION.
（１）Summary of Operating Results for the Quarter
During the current consolidated cumulative first quarter (hereinafter, the "period under review"),
although Japan's economy showed signs of gradual recovery, there were risks associated with a downturnin overseas economies, such as concerns about the outlook for the European, U.S., and Chinese economies.
In such a business environment, based on its mission of "Creating opportunities and hopes for people
to work", the Nisso Group (hereinafter, the "Group") is promoting initiatives "To transform into a
corporate group with high-growth potential" with the aim of providing services that can respond tosocial changes and changes in industrial structures, while creating workplaces where workers can feel
motivated and grow through Human Resources Solution Services that support the growth of companies andpeople.
The Group defines materiality (key issues) for the realization of its mission as "Creation of acomfortable workplace", "Responding to social changes and changes in industrial structures", and"Strengthening of governance". The Group aims to enhance corporate value by creating new value throughco-creation with all stakeholders and strengthening its management system and internal controls.
The results of operations for the period under review are as follows: net sales amounted to 25,164
million yen (up 6.4% year-on-year), operating profit amounted to 878 million yen (up 75.4% year-onyear), ordinary profit amounted to 887 million yen (up 73.6% year-on-year), and profit attributable toowners of parent amounted to 511 million yen (up 61.6% year-on-year).
Net sales increased year-on-year due to an increase in billing unit-costs for the Group's mainstay
General Human Resources Services, as well as an increase in the number of enrolled staff in the highly
profitable Engineering Human Resources Services and a recovery in operating hours. In addition, in terms
of profits, despite efforts to increase the number of employees to expand the business and strengthen
the business foundation, the gross profit margin improved by 1.3 percentage points year-on-year to 17.0%
due to an increase in net sales, resulting in a significant increase in operating profit year-on-year.
As a result, the operating profit margin improved by 1.4 percentage points year-on-year to 3.5%.
The various initiatives taken during the period under review were as follows:(General Human Resources Services)
Net sales of the General Human Resources Services during the period under review amounted to 24,398
million yen (up 6.5% year-on-year), and gross profit was 4,180 million yen (up 15.2% year-on-year).
①

Manufacturing・Production Human Resources Services
Manufacturing・Production Human Resources Services are mainly classified into manufacturing
dispatching and manufacturing contracting.
Net sales of the Manufacturing・Production Human Resources Services during the period under review
amounted to 19,616 million yen (up 4.5% year-on-year).
The number of enrolled manufacturing・production staff at the end of the period was 14,917 (up 156
year-on-year). In addition, as a result of continued activities to improve the workplace environment,
the monthly turnover rate was 3.8% (which was at 3.7% in the corresponding period of the previous
fiscal year). Furthermore, due to an increase in the billing unit-costs of manufacturing staff, theaverage monthly net sales per capita amounted to 436 thousand yen (up 9 thousand yen year-on-year).
As a result, net sales of the Manufacturing・Production Human Resources Services increased year-onyear, and the gross profit margin was 17.2%.

②

Engineering Human Resources Services
Engineering Human Resources Services are classified into the manufacturing area, IT-related
engineer dispatching, and SES (System Engineering Service).
Net sales of the Engineering Human Resources Services during the period under review amounted to- 2 -2,612 million yen (up 20.2% year-on-year).
The number of enrolled engineers at the end of the period was 1,685 (up 215 year-on-year). In
addition, due to the effects of continuing its unique "Human Resources Development Model" thatutilizes education and training facilities, the turnover rate per month improved to 1.5% (which was
at 2.3% in the corresponding period of the previous fiscal year). Furthermore, due to the recovery inproduction activities among clients in the Semiconductor Industry, the average monthly net sales per
engineering employee amounted to 537 thousand yen (up 52 thousand yen year-on-year). As a result, net
sales of the Engineering Human Resources Services increased significantly year-on-year, and the grossprofit margin was 22.4%, the highest level by service.
③

Administrative Human Resources Services
Administrative Human Resources Services are classified into general office work dispatching and BPO(Business Process Outsourcing).
Net sales of the Administrative Human Resources Services during the period under review amounted to
573 million yen (up 5.3% year-on-year).
The number of enrolled administrative dispatched staff was 559 (up 6 year-on-year). Althoughcompetition for personnel in the employment market is intensifying, net sales increased year-on-yearby promoting recruitment activities centered on public relations and client attraction activities.

④

Other Human Resources Services
Other Human Resources Services are classified into human resources dispatching for senior employees

and light work contracting for employees with disabilities.
Net sales of the Other Human Resources Services during the period under review amounted to 1,595
million yen (up 13.3% year-on-year).
In order to build a workplace model that enables senior employees to flourish, the Company isworking to develop and secure employment opportunities and build a structure that supports the active
participation of senior employees and allows them to continue working. The number of Prime employees(senior employees) during the period under review was 721.
In order to build a workplace model that enables people with disabilities to flourish, the Company
strives to coexist with local communities, including school officials, support organizations, and thegovernment, while promoting independent activities that make the most of each individual's
characteristics, such as accepting contracts for light work from general companies, rather thansimply employing people with disabilities in-house. The number of employees with disabilities during
the period under review was 252.
Achievements of Industry Strategy for Expansion of General Human Resources Services
The Group aims to expand its Manufacturing・Production Human Resources Services and Engineering
Human Resources Services by meeting the human resource needs of each industry, centered on Japan's
leading Automotive (automobile manufacturing ・EV-related manufacturing industry), Semiconductor(semiconductor manufacturing industry), and Electronics (electronic equipment manufacturing industry)
Industries.
Net sales in the Industry Strategy area for the period under review totaled 16,201 million yen (up7.6% year-on-year), accounting for 64.4% of consolidated net sales.
In the Automotive Industry, despite the impact of certification issues at major automobiles
manufacturers, the operation of manufacturing staff gradually recovered, and net sales for the period
under review amounted to 10,209 million yen (up 7.5% year-on-year).
In the Semiconductor Industry, production activities of manufacturers recovered, such as therecovery of manufacturing equipment and memory, and the steady performance of power semiconductors,
resulting in net sales of 3,259 million yen (up 1.6% year-on-year) for the period under review.
In the Electronics Industry, due to a recovery in production activities for electronic components
and devices, net sales for the period under review were 2,732 million yen (up 16.4% year-on-year).
(Nursing Care・Welfare Services)
Nursing Care・Welfare Services are classified into facility nursing care and home-based nursingcare.
Net sales of the Nursing Care・Welfare Services during the period under review amounted to 765- 3 -million yen (up 0.5% year-on-year), and gross profit was 86 million yen (down 8.8% year-on-year).
In facility nursing care, which is the core of this service, the number of residents of nursing carefacilities during the period under review was 381 (up 1 year-on-year) as a result of activities toattract customers with the aim of contributing to society through compassionate nursing care rooted in
the local community. In addition, the occupancy rate at the facilities remained at a high level of
94.8% (which was at 94.5% in the corresponding period of the previous fiscal year). On the other hand,
personnel expenses increased due to the reinforcement of nursing care staff in order to improve
service quality, and gross profit for this service decreased year-on-year.
（Nisso Group's Human Resources Development Strategy）
In order to meet the human resources needs required by each industry, the Group will further promote
the establishment of new education and training facilities and collaboration between industrygovernment-academia.
The total number of people who received training during the period under review was 5,394.
In terms of education for engineering human resources, in order to meet the need of human resources,
especially equipment technology engineers who support MONOZUKURI (manufacturing), the Group worked to
expand training opportunities, and as a result, the total number of people trained was 534, anincrease of 132 year-on-year.
In terms of education for manufacturing・production human resources, the Group has established an
education and training facility equipped with actual equipment such as semiconductor manufacturing
equipment, and provided pre-assignment training to employees using unique education programs developedin accordance with client needs, bringing the total number of people trained to 3,676.
In terms of education for other human resources in the General Human Resources Services, the Group
provided regular compliance education, career support training, qualification (enhancement) training,etc., and the total number of people trained reached 402.
In terms of education for human resources who provide Nursing Care・Welfare Services, the Group
recognizes that education for newly hired nursing care staff is important for improving the quality ofservices in facility nursing care, and by establishing a system that allows it to conduct not only OJT
but also regular Off-JT, the total number of people trained reached 782.
In addition, the Group offers the "NISSO HR Development Service," an entrusted education service. In
response to the issues that many of the Group's business partners have raised, such as the shortage of
instructors who are responsible for education, a lack of practical skills training due to theinability to conduct OJT using actual production lines and on-site operations as a result of busy
schedules, and a shortage of educational programs for inexperienced people, the Group, which has
education and training facilities nationwide and a track record of developing many training
curriculums, is positioned as a service that can assist in resolving these issues by providing
employee training on behalf of the client. During the period under review, a total of 139 people were
provided with external employee training (entrusted), and the need for such training is steadily
growing.

（２）Summary of Financial Position for the Quarter（Assets）
Current assets at the end of the first quarter consolidated accounting period (hereinafter, the"first quarter") amounted to 19,793 million yen, which was a decrease of 2,106 million yen from theend of the previous consolidated fiscal year. This was mainly due to a decrease of 3,181 million yen
in cash and deposits.
Non-current assets at the end of the first quarter amounted to 10,679 million yen, which was anincrease of 1,224 million yen from the end of the previous consolidated fiscal year. This was mainly
due to an increase of 1,439 million yen in investment securities included in "Other" of investments
and other assets due to the acquisition of shares of TSUNAGU GROUP HOLDINGS Inc.
As a result, total assets amounted to 30,472 million yen, which was a decrease of 881 million yen
from the end of the previous consolidated fiscal year.

- 4 -（Liabilities）
Current liabilities at the end of the first quarter amounted to 12,759 million yen, which was adecrease of 600 million yen from the end of the previous consolidated fiscal year. This was mainly due
to a decrease of 734 million yen in income taxes payable.
Non-current liabilities at the end of the first quarter amounted to 2,546 million yen, which was adecrease of 114 million yen from the end of the previous consolidated fiscal year. This was mainly due
to a decrease of 128 million yen in long-term loans payable.
As a result, total liabilities amounted to 15,306 million yen, which was a decrease of 715 million
yen from the end of the previous consolidated fiscal year.
（Net assets）
Total net assets at the end of the first quarter amounted to 15,166 million yen, which was adecrease of 166 million yen from the end of the previous consolidated fiscal year. This was mainly due
to the 511 million yen in profit attributable to owners of parent, and 671 million yen in dividends ofsurplus.
As a result, the equity ratio was at 48.9% (which was at 48.0% at the end of the previous
consolidated fiscal year).
（３）Description of Future Forecast Information such as Consolidated Forecasts, etc.
Regarding the consolidated earnings forecast, there are no changes to the Consolidated Forecast for
the full year announced in the "Consolidated Financial Results for FY 3/2024" on May 9, 2024.

- 5 -２．Quarterly Consolidated Financial Statements and Notes（１）Quarterly Consolidated Balance Sheet（Unit: Million yen）
FY 3/24(As of Mar. 31, 2024)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 6 -1Q of FY 3/25
(Jun. 30, 2024)

9,641
11,2381,025(5)21,8996,459
12,1351,207(8)19,793

1,857
2,771
442
5,072

2,067
2,771
386
5,226

1,033
577
1,611

998
565
1,564

2,790
(18)
2,771
9,455
31,354

3,895
(6)
3,889
10,67930,472

（Unit: Million yen）
FY 3/24(As of Mar. 31, 2024)

Liabilities
Current liabilities
Current portion of long-term loans payable
Accrued expenses
Income taxes payable
Contract liabilities
Provision for bonuses
Provision for directors' bonuses
Provision for shareholder benefit program
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets- 7 -1Q of FY 3/25
(Jun. 30, 2024)

512
6,553
795
212
1,479
121
3,684
13,360

512
7,021
61
199
816
7
53
4,087
12,759

1,550
713
396
2,660
16,021

1,422
748
375
2,546
15,306

2,016
2,367
11,587(1,031)
14,9392,016
2,367
11,427(1,031)
14,779

118

115

118

115

275
15,33331,354272
15,16630,472

（２）Quarterly Consolidated Statements of Income and Comprehensive Income（Quarterly Consolidated Statement of Income）（First Quarter of FY 3/25）（Unit: Million yen）
First quarter of FY 3/25
(Apr. 1, 2024 Jun. 30, 2024)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Subsidy income
House rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using
equity method
Rent expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

25,16420,897
4,266
3,388
878
0
12
9
6
28
1
2
4
10
19
887
22
22
865
64
274
338
526
15
511

- 8 -

（Quarterly Consolidated Statement of Comprehensive Income）（First Quarter of FY 3/25）（Unit: Million yen）
First quarter of FY 3/25
(Apr. 1, 2024 Jun. 30, 2024)

ProfitOther comprehensive income
Remeasurements of defined benefit plans, netof taxTotal other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests

526
(3)
(3)
523
508
15

- 9 -

（３）Notes to Quarterly Consolidated Financial Statements（Notes on Going Concern Assumption）
Not applicable.
（Notes on Significant Changes in the Amount of Shareholders' Equity）
Not applicable.
（Notes to Quarterly Consolidated Statements of Cash Flows）
Quarterly Consolidated Statements of Cash Flows have not been prepared for the consolidated
cumulative first quarter. Furthermore, depreciation (including amortization related to intangible
assets excluding goodwill) and amortization of goodwill for the consolidated cumulative firstquarter are as follows:First quarter of FY 3/25
(Apr. 1, 2024 Jun. 30, 2024)
Depreciation
Amortization of goodwill

69 Million yen
35 Million yen（Notes on Segment Information, etc.）【Segment Information】
First quarter of FY 3/25 (Apr. 1, 2024 - Jun. 30, 2024)
The Group has omitted segment information because "General Human Resources Services" account fora high proportion of all segments and is not material as a disclosure information.

- 10 -