First Quarterof FY 3/2024

Financial Results
Briefing Materials
Making hardworking people,
happy.

August 9, 2023

NISSO CORPORATIONTSE Prime Market Code:6569

NISSO’s first quarter net sales and operating profit hit record highs since listing
Operating profit increased significantly by 92.9% year-on-year
Ryuichi Shimizu,
Representative Director, President & CEO
NISSO CORPORATION

0Summary
FY 3/2024 1Q Results●Both net sales and operating profit were the highest for 1Q since NISSO's listing●Operating profit increased by 92.9% year-on-year●The impact of inventory adjustments in the Semiconductor Industry (memory field,etc.) continued●Although demand for components in the Electronics Industry was weak, it was ona recovery trend●Engineering net sales increased steadily●Full-scale assignment of new graduate engineers to start from July

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

1

Mr. Ryuichi Shimizu (hereinafter “Shimizu”):
Hello everyone. Thank you very much for taking timeout of your busy schedules to join us today. Now, I will begin my financial results presentation.
The slide shows a summary of today's session. I will explain each item in detail later.

1

CONTENTS

1

FY 3/2024 1Q

Financial Results Summary2

FY 3/2024 1Q

Overview of NISSO’s Activities

3

Financial Results by Segment

4

Future Prospects (FY 3/2024)

5

Shareholder Return Policy

6

Supplementary Materials

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

2

I will follow this content in my presentation.

2

１

FY 3/2024 1Q

Financial Results Summary

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

33

From Account Strategy to Industry Strategy
NISSO will contribute to the industries that drive Society 5.0 throughtraining and human resources development

Account Strategy
Top domestic
manufacturers
CompanyD

Industry Strategy Industries driving Society 5.0
Automotive

Industry

CompanyA
CompanyC

Semiconductor

Company
B

Industry

Electronics

Industry

To date, NISSO has adopted an accountstrategy that aims to contribute to the growthof Japanese MONOZUKURI by treating eachclient individually and intensively responding to
the needs of our target clients.

Automobiles/
EV-related
Semiconductors/
Semiconductor
manufacturing
equipment
Communications
equipment/
Electronic components

In the future, as the industrial structure will change at an accelerated pace against the
backdrop of technological innovation and environmental issues, NISSO will proactively andspeedily respond to the needs of new clients through the development of human resources
tailored to the needs of each industry that we are focusing on.
Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

4First, here is the financial results summary. As previously reported, we have made a major shift
from an account strategy to an industry strategy. Since we have received some comments andquestions about this, like “it’s difficult to understand the difference,” I would like to review this.
Since our listing, we have been developing and producing human resources while pursuing thequality and content that our clients are looking for, based on a “point strategy” in order tospecifically meet the individual needs of our four Account Company Groups.
However, as the environment has changed dramatically due to technological changes and otherfactors, we have made a major shift in our industry strategy toward a “surface strategy” that meetsthe needs of companies representing each industry while developing human resources thatcombine the three industries.
Through these changes, we strongly felt that the game has changed drastically in less than a year.
There is a big gap between the quality of human resources required for manufacturing operations in
manufacturing-related human resources services and the quality of human resources that will be
required in the future. We believe that for future growth, we need a system to develop and produce
human resources for the next era.
I feel that we need to focus on investing in people over the long run rather than in our traditional
operator-centered business. I will explain later on today how we are currently addressing theseissues.

4

FY 3/2024 1Q Consolidated Financial Results Highlights（Unit: Million yen）

PointsFY 3/2023 1Q
Results

Operating profit increased by 92.9% YoY• Net sales increased by 15.4%, partly due
to an increase in the number of enrolled
staff and a gradual recovery in operationsin the Automotive Industry.
• Other Businesses (Nursing Care・Welfare
Services) increased revenue and profits
YoY.

% of Total

FY 3/2024 1Q
Results% of Total

Year-on-Year
Increase(Decrease)% Change

20,501100.0%

23,660100.0%

3,158

15.4%

Gross profit

3,114

15.2%

3,722

15.7%

608

19.5%

SG&A
expenses

2,854

13.9%

3,221

13.6%

367

12.9%

Operatingprofit

259

1.3%

500

2.1%

241

92.9%

Ordinary
profit

313

1.5%

511

2.2%

197

62.9%

Profitattributableto owners ofparent

182

0.9%

316

1.3%

134

73.8%

Net sales

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

5Here are the consolidated financial results highlights for the first quarter. Operating profit amounted
to 500 million yen. I suspect that this has affected the current share price since it has been
perceived by some investors as “500 million yen each quarter and 2 billion yen in total for the fullyear have no growth potential at all”. However, the first quarter is the least profitable period of theyear.
Recently, an increasing number of major manufacturers have been taking longer Golden Week
holidays, and the effects of supply chain issues still remained in the first quarter. Normally, although
the average monthly working hours per capita is 186 hours, the fact that it was 180 hours in thefirst quarter is one of the reasons for the deterioration in profits for the first quarter.
However, in terms of the figures for the first quarter, we were able to record profits not only interms of sales but also in revenue.

5

FY 3/2024 Quarterly Consolidated Financial Results（Unit: Million yen）

（Unit: Million yen）

Net sales

Operating profit
Up 92.9% YoY
24,038 23,625

24,00023,66022,661

22,00020,282

1,000

888

900

869

800

20,572 20,501

680

700

20,00018,045 18,649

582

600

18,000

500

354

400

16,000

500

470

259

300

14,000250

200
12,00010,000

100
0

１Q

２Q

３Q

【FY 3/22】

４Q

１Q

２Q

３Q

【FY 3/23】

４Q

１Q【FY 3/24】

1Q

２Q

３Q

４Q

【FY 3/22】

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

１Q

２Q

３Q

【FY 3/23】

４Q

1Q【FY 3/24】

6

These graphs show the trends of consolidated financial results by quarter.

6

FY 3/2024 1Q Non-consolidated Financial Results Highlights
Net Sales（Unit: Million yen）

FY 3/2023 1Q

Increase by 9.2% YoY due to recovery inoperations• Net sales increased YoY, partly due to anincrease in the number of enrolled staff
and a gradual recovery in operations in
the Automotive Industry.

Expenses・Profits
Gross profit increased by 14.1%• Although the impact of parts shortages
in the Automotive Industry continued tosome extent, the gross profit margin
improved by 0.7 percentage points YoY
partly due to a gradual recovery inoperations.
• Recruitment costs were made more
efficient, and the SG&A ratio improvedby 0.1 percentage points YoY.

Results% of Total

FY 3/2024 1Q
Results% of Total

Year-on-Year
Increase(Decrease)% Change

18,958100.0%

20,711100.0%

1,753

9.2%

Gross profit

2,949

15.6%

3,365

16.3%

416

14.1%

SG&A
expenses

2,685

14.2%

2,912

14.1%

226

8.4%

Operatingprofit

263

1.4%

453

2.2%

189

72.0%

Ordinary
profit

310

1.6%

465

2.2%

154

49.9%

Profit

190

1.0%

299

1.4%

109

57.3%

Net sales

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

7

Now let me explain NISSO's non-consolidated highlights. With regard to the Automotive Industry(automobiles & EV-related), while some manufacturers got much closer to the normalcy in the firstquarter, the recovery has been very slow in general mainly due to parts shortages, especially inpower semiconductors.
Furthermore, in the Semiconductor Industry (semiconductors & semiconductor manufacturing
equipment-related), there has been a slight buildup in inventories, especially in memory, leading toinventory adjustments. In the Electronics Industry (communications equipment & electronic
components), demand for communications equipment has been weak, and inventory adjustments
have been made for some electronic components.
As you can see from the current growth in the number of enrolled staff, SG&A expenses have yet to
fully recover, and the fact that we are operating while keeping recruitment costs down is one of thefactors that has pushed down SG&A expenses overall.
The number of enrolled staff has increased by approximately 862 compared to last year, and thepersonnel expenses for those responsible for business management have increased.
With the end of the COVID-19 pandemic in sight, we are finally in a position to engage in real
negotiations with our clients, and we are now spending more on the activities to ensure that we areable to have in-depth discussions with our clients about the future.

7

FY 3/2024 1Q Quarterly Non-consolidated Financial Results（Unit: Million yen）

（Unit: Million yen）

Operating profit

Net sales

Up 72.0% YoY
1,000

22,00019,91620,00018,68718,00021,147 20,754

20,711

900

845

800

19,028 18,958

867

685

700

16,684 17,296

566

600
500

16,000482

400
14,000

453
380

300

263

291

１Q

２Q

200

12,000100
10,000

0

1Q

２Q

３Q

【FY 3/22】

４Q

１Q

２Q

３Q

【FY 3/23】

４Q

１Q【FY 3/24】

1Q

２Q

３Q

４Q

【FY 3/22】

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

３Q【FY 3/23】

４Q

1Q【FY 3/24】

8

These graphs show the trends of non-consolidated financial results by quarter.

8

2

FY 3/2024 1Q

Overview of NISSO’s Activities

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

99FY 3/2024 1Q Non-consolidated Financial Results Summary
Non-consolidated Financial Results Summary

Net Sales
Operating Profit

20,711 Million yen （+1,753 Million yen／ +9.2％）
453 Million yen （ +189 Million yen／+72.0％）

Non-consolidated Indicator Summary● Focused Industry Net Sales (YoY)

・Focused industry net sales, which are the sum of the Automotive, Semiconductor,

Focused Industries Total…＋8.1％

and Electronics Industries, increased by 8.1% YoY.

※Total of Automotive, Semiconductor, and Electronics Industries● 1Q-end Number of Enrolled Staff
16,132 staff(+862 staff YoY)

・The number of enrolled staff increased by 862 YoY.
・Enrollment increased, mainly in the Automotive Industry.

● Avg. Monthly Net Sales per Capita
427 Thousand yen(+17 Thousand yen YoY)

・Average monthly net sales per capita increased by 4.0% YoY due in part to a gradual
recovery in operations in the Automotive Industry and an increase in billing unit-costs.

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

10This is the non-consolidated financial results summary. I will explain this in detail later.

10

FY 3/2024 1Q Net Sales by Industry (NISSO, Non-consolidated)（Unit: Million yen）

Net Sales Composition Ratios

Electronics(Electronic equipment
manufacturing industry)

2,710(13.3％)（14.3％）

3,220(0.4％)（42.2％）

FY 3/23 1Q ※Reference※（＋18.8％

Operational
Trends

Personnel
TrendsDown
13.3% YoY

Sluggish but
partlyrecovered

Sluggish but
partlyrecovered

Down
0.4% YoY

Manufacturing
equipment andsemiconductor
memory weresluggish, but
power
semiconductors
were steadySluggishUp
18.8% YoY

Someeffects ofparts
shortages
continued

Steady2,348（11.3％）

3,208（15.5％）（17.0％）

7,995

Net
Sales

Semiconductor(Semiconductor
manufacturing industry)

9,499（45.9％）

FY 3/24 1Q

Automotive(Automobile manufacturing・
EV-related manufacturingindustry)）= % of Non-consolidated net sales, Red = % of Year-on-Year growth

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

11

These are net sales by industry, which we started this fiscal year. The graph on the slide shows thatwhile Automotive was expanding, Semiconductor and Electronics manufacturers were experiencing
negative growth.
Operational trends are shown on the right side of the slide.

11

Industry Trends

1
H

2
H

※NISSO's own forecasts

Automotive Industry(Automobile manufacturing・
EV-related manufacturing industry)

Semiconductor Industry(Semiconductor manufacturing industry)

Electronics Industry(Electronic equipment manufacturingindustry)

CapitalInvestment

Will gradually expand

Will expand

Will be flat

Production
Trends

Production growth will stall

Manufacturing equipment・memory will be sluggish
Power semiconductors will be strong

Will be sluggish in conjunction
with semiconductors

Operational
Trends

Impact of parts shortages willcontinue

Operations will be sluggish

Operations will be sluggish

Personnel
TrendsWill be steadyWill be sluggish

Will be sluggish

CapitalInvestment

Will expand

Will expand further

Will gradually expand

Production
TrendsWill be busy with parts shortages

Manufacturing equipment will
recover moderately
Memory will be sluggish

Will recover but slower thansemiconductors

Operational
TrendsOperations will fully recover

Manufacturing equipment will
recover moderately
Memory will be sluggish

Will recover but slower thansemiconductors

Personnel
TrendsWill be steady

Human resources needs will
increase rapidly for next year

Will gradually increase following
semiconductors

I will explain industry trends from the present to the end of the fiscal year. Our own forecasts are
based on the information obtained from interviews with our clients. The situation is almost in linewith the industry trend forecast we submitted in May 2023.
However, the future is still uncertain. In the future, we will continue to have in-depth discussions
with clients, and as the situation changes from moment to moment, if necessary, we will makesure to disclose the changed information.
Now let me explain the trends by industry. In the Automotive Industry, although production isrecovering moderately due to lingering supply chain issues, the need for human resources remains
strong.
In addition, there remains the possibility that parts shortages will be resolved toward the second
half of the year, and that we will return to normal or, in some cases, go into recovery production.
Currently, in terms of overtime hours, if the conventional rate is 100%, it has recovered to about80%.
As for batteries for EVs, which are expected to grow significantly in the future, we will finally start toinvest human resources in the fall. I believe that the number of people working in this field will growyear after year, and we need a structure to respond to that.
In the area of the Semiconductor Industry, semiconductor manufacturers and semiconductor
equipment manufacturers are currently adjusting their inventories due to sluggish memory
performance. Although power semiconductors were strong, it is difficult to increase productionof power semiconductors in a single leap.
However, we expect a moderate recovery in the second half. Above all, the Kyushu area,
centered on Kumamoto Prefecture, also has a need for human resources looking ahead
to next year.
In the past, we focused on producing human resources that were biased towards semiconductor12

memory. However, in the future, we will be firmly committed to the semiconductor areas
other than memory, such as image sensors, power semiconductors, and the semiconductors
required for new autonomous driving. We expect the peak to occur around FY 2026, so we
intend to make steady progress to achieve that goal.
With the positioning of semiconductors as passive components, the Electronics Industry isvery much linked to the Semiconductor Industry. We believe that the recovery will besomewhat slower than semiconductors, but since they are linked, we expect that production
will gradually increase in the second half, following that of semiconductors.

12

FY 3/2024 Quarterly Net Sales by Industry (NISSO, Non-consolidated)

Automotive

2,710（14.3％）

3,220（17.0％）

Semiconductor（Unit: Million yen）

Electronics

2,481

2350

（11.7％）

3,631

3,776

3518

（17.9％）（17.0％）（15.5％）（13.0％）（18.2％）

7,995

8,478

（42.2％）（42.6％）

１Q

２Q（11.3％））= % of Non-consolidated net sales（11.3％）

3,208

9,335

9485

9,499

（44.1％）（45.7％）（45.9％）

３Q

４Q

１Q

【FY 3/23】
※（

2,348

2,598

※Reference

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved【FY 3/24】

12

Shown here is the trend of the quarterly net sales by industry.

13

Average Monthly Net Sales per Capita（NISSO, Non-consolidated）●FY 3/2024 1Q YTD

Avg. monthly net sales per capita

427Thousand yen (+17 Thousand yen YoY)

●The average monthly net sales per capita increased YoY, due in part to a gradual recovery of operations in the Automotive Industry
and an increase in billing unit-costs.
（Unit: Thousand yen）

（Unit: Thousand yen）

Avg. Monthly Net Sales per Capita

Avg. Monthly Net Sales per Capita(Quarterly)

450

427
409

411

400

400

350

350

300

FY 3/22 1Q FY 3/23 1Q FY 3/24 1Q

440

450

409

406

１Q

２Q

423

421

３Q

４Q

424

428

427

411

300

１Q

【FY 3/22】

２Q

３Q【FY 3/23】

４Q

１Q【FY 3/24】

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

13

These are the trends of average monthly net sales per capita. In the first quarter, net sales
increased by 17,000 yen year-on-year. While the increase in unit-costs have had some impact, thebiggest factor has been the recovery of the Automotive Industry, which has made a significant
contribution.
While the Automotive Industry has yet to normalize, the first quarter reached a record high in thepast several years, and unit-costs increases have progressed quite well.

14

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

Year-on-Year

Number of Enrolled Staff at Quarter-end+862 staff (+5.6%)
15,73016,000

Point
Highest enrollment achieved since
NISSO's listing

14,71515,00014,945

16,111 15,998

16,132

15,27014,225・Due to the curbing of enrolled staff leaving
NISSO, enrollment reached a record highsince NISSO's listing.
・Human resources needs in the Automotive
Industry were strong, which led to anincrease in the number of enrolled staff.

14,00013,856

13,00012,00011,00010,000

１Q

２Q

３Q

４Q

【FY 3/22】

１Q

２Q

３Q

４Q

【FY 3/23】

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

１Q【FY 3/24】

14

This is the trend of the number of enrolled staff. It has remained almost unchanged at around
16,100.

15

Educational Achievements（NISSO, Non-consolidated）● FY 3/2024 1Q Educational achievements (total # of participants)

Point
Although the overall number of participants
decreased YoY due in part to a decrease inproduction of semiconductor memory andelectronics, the number of participants eachmonth was on an upward trend. The fullscale assignment of new graduates arescheduled from July.

(Unit: # of participants)

Classification

Training content

FY 3/23 FY 3/24
YoY
1Q
1Q
Comparison（Direct）
Engineer training

Manufacturing equipment maintenance・
manufacturing equipment technology
Mechanical design・production technology
Special education for industrial robots, etc.

515

402

78.1%

（Direct）
Other training

MONOZUKURI (manufacturing) education
Foreman education
Hazard simulation education, etc.

4,808

4,037

84.0%

Indirect training

Business manners
Career enhancement
Life planning
Semiconductor seminars, etc.

244

241

98.8%

Total

5,567

4,680

84.1%

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

15

Here are our educational achievements. You can see the decline in engineer education, which is avery important second engine for our medium-term growth.
The decrease from 515 from in the first quarter of last year to 402 in the current first quarter is dueto the slowdown in memory production, which led to a decline in attendance for the number ofmemory engineers and equipment engineers. In addition, another factor was that the brakes wereslightly applied on semiconductor equipment production in the first quarter.
Furthermore, new graduates joined us in April. This change in the number of people reflects the factthat 128 of them received training over a longer span of time than the usual two-month training
period. However, from July onwards, approximately 70 new graduates have started to be assigned
as engineers, and we expect to progress toward normalization.

16

3

Financial Results by Segment(FY 3/2024 1Q)

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16

17

Net Sales by Segment (Services)
FY 3/2024 1Q
General Human Resources Services Business
20,00018,770FY 3/2024 1Q
Other Businesses(Unit: Million yen)

18,00020,000(Unit: Million yen)

18,00016,00016,00014,00014,00012,00012,00010,00010,000

8,000

8,000

6,000

6,000

4,000

4,000

2,174

2,000

544

1,408

0

2,000

765

0

Manufacturing・Production

Engineering

Administrative

Other

Nursing Care・Welfare

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

17

Here are the net sales by segment. Our General Human Resources Services Business includes
Manufacturing・Production, Engineering, Administrative, and Other Services, as well as Nursing
Care・Welfare Services in our Other Businesses. I will now explain the graphs in detail from thenext page.

18

Manufacturing・Production Human Resources Services

In 1Q, manufacturing・production net sales
increased by 8.2% YoY, partly due to anincrease in the number of enrolled
manufacturing・production staff.

Manufacturing・Production
Net Sales

Number of Enrolled Manufacturing・Production Staff at Quarter-end(Quarterly)
16,000FY 3/23

20,00019,066

18,77018,000FY 3/23

FY 3/24
14,761
18,69017,987

Number of Enrolled Staff(Unit: # of Staff)(Unit: Million yen)

Net Sales

14,11814,40014,677

FY 3/232
14,586

14,00017,346

16,00012,000The number of enrolled manufacturing・
production staff increase by 643 YoY.

14,00010,00012,00010,000

１Q

２Q

３Q

４Q

8,000

１Q

２Q

３Q

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

４Q

18

This page is about our Manufacturing・Production Human Resources Services. As shown in thegraph on the slide, the number of enrolled staff increased by 643 year-on-year, and net sales
increased by 8.2%. The growth rate of net sales is greater than that of the number of enrolled staff,
which indicates that our operations are gradually returning to normal.

19

Manufacturing・Production Human Resources Services(Unit: Thousand yen)

Avg. Monthly Net Sales per Capita

Manufacturing・Production
Avg. Monthly Net Sales per Capita

Manufacturing・production net sales per capita
increased by 4.9% YoY.

450

407

427

421

413

FY 3/23422

FY 3/24

400

350

300

１Q

Turnover Rate

２Q

３Q

４Q
(Unit: %)The manufacturing・production turnover rate
improved by 0.1 percentage points YoY, andremained below 4%.

Manufacturing・Production
Trend of Turnover Rate
5

4

FY 3/233.8

4.0

FY 3/24

3.8

3.9

3Q

4Q

3.7
3

1Q

2Q

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

19

The graph on the top of the slide shows the average monthly net sales per capita for
Manufacturing・Production Human Resources Services, and the graph on the bottom shows theturnover rate. At 3.7%, I believe that we are controlling the turnover rate relatively well. Net sales
increased by 4.9% year-on-year. As I mentioned earlier, you can see that unit-costs and operating
status are having a positive effect.

20

Engineering Human Resources Services
Net Sales(Unit: Million yen)In 1Q, engineering net sales increased by
19.8% YoY, partly due to an increase in thenumber of enrolled engineers.

Engineering Net Sales(Quarterly)
FY 3/23

2,500

2,345

2,174 2,171
2,000

FY 3/24
2,295(Unit: # of Engineers)

Number of Enrolled Engineers
at Quarter-end
2,000

FY 3/23

1,600

1,814

FY 3/24

1,800

1,542
1,470 1,426

1,517

1,400

1,239
1,200

1,500

1,000

Number of Enrolled Engineers

800

1,000

The number of enrolled engineers increased by
231 YoY. Partly due to decreased production ofsemiconductor memory and electronics, thegrowth in the number of enrolled engineers
slowed.

600
500

400
200

0

１Q

２Q

３Q

４Q

0

１Q

２Q

３Q

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

４Q

20

This page is about our Engineering Human Resources Services. The graph on the right of the slide
shows the number of enrolled engineers, and the graph on the left shows net sales. Despite theyear-on-year growth, a slowdown in the fourth quarter of last year has impacted the sluggish
growth of net sales and the number of enrolled staff.

21

Engineering Human Resources Services(Unit: Thousand yen)

Avg. Monthly Net Sales per Capita
Engineering net sales per capita decreased by
5.5% YoY as a result of decreases in overtimeand holiday work, partly due to a slowdown insemiconductor memory.

Engineering
Avg. Monthly Net Sales per Capita
FY 3/23

600
550
500

514

524

524

FY 3/24
518

485

450
400
350
300

１Q

３Q

４Q
(Unit: %)Turnover Rate
The engineering turnover rate remained at
the same level YoY.

２Q

Engineering Trend of Turnover Rate3
2
1

FY 3/23

2.3

FY 3/24

2.3

2.2

2.1

2.1

1Q

2Q

3Q

4Q

0

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

21

Shown here are net sales per capita and the turnover rate. As shown in the graph on the top of theslide, net sales per capita have decreased. It can be seen that the operating status insemiconductor memory and semiconductor devices have affected the technical area as well.
The turnover rate is at about the same level as last year. Going forward, we will take measures toprevent the turnover rate from increasing by firmly assigning personnel to new fields other thansemiconductor memory.

22

Toward the Growth of Engineering Human Resources Services
Producing high value-added human resources through nationwide expansion of in-house training facilities
and industry-government-academia collaboration
Tomakomai Training Center(Tomakomai City, Hokkaido)

Nagano Prefectural Governor
Accredited Training School

Tohoku Semiconductor andElectronics Design Study Group

Nisso Technical Center Naka-Nihon(Okaya City, Nagano)Participation from November 2022

Toyota Training Center(Toyota City, Aichi)

Miyagi Prefectural Governor
Accredited Training School

Nisso Technical Center Kyushu(Buzen City, Fukuoka)

Nisso Technical Center Higashi-Nihon(Kurihara City, Miyagi)

Kyushu Semiconductor
Human Resources
Development Consortium

Ota Training Center(Ota City, Gunma)

Participation from April 2023

Kumamoto Prefectural Governor
Accredited Training School

Nisso Techno Center
Chugoku Regional
Semiconductor Industry
Promotion Council

Nisso Technical Center Kumamoto

Participation from November 2022

(Yokohama, Kanagawa)

Hamamatsu Training Center(Hamamatsu City, Shizuoka)(Otsu-cho, Kumamoto)

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

22This diagram shows the locations of our nationwide research facilities and how we are developing a
consortium of industry-government-academia around them to grow our Engineering Human
Resources Services, which is one of the major pillars of our industry strategy.
The reason we are pursuing an industry strategy is because we believe that there will be a gamechange in MONOZUKURI (manufacturing) in the future. Let me explain a little bit about how wethink. We strongly feel from the needs of our clients that the key to capturing the success of ourindustry strategy are equipment engineers.
The reason for this is that while the needs for people working in manufacturing are high, as the
population decreases due to the declining birthrate and aging population, automation andautomated machines are increasing in large numbers.
In the semiconductor area, for example, the more cutting-edge the semiconductors become, theless dust and debris they can withstand. When it comes to minimizing the number of people
entering the worksite, the equipment maintenance staff play a key role in ensuring that theequipment is properly maintained.
With regard to EV batteries in the Automotive Industry, which I mentioned earlier, as you know,
Japan is said to be lagging behind the rest of the world in terms of EVs. However, plans are
emerging to up to set up new battery factories across the country.
The front-end process of battery manufacturers is called the cell process, but the process of making
the cells that go inside batteries is actually very similar to the maintenance of semiconductors.
We are currently redirecting the members trained for semiconductor maintenance to this area.
However, from now on, we hope to gain the trust of our clients and will establish a dedicatedTechnical Center for this process.
The Technical Center in Kumamoto Prefecture is a facility created to develop human resources forsemiconductors. Although it was just opened in April, it has become clear that the needs of ourclients exceeded our training capabilities. For now, I would like to tell you that23

we are planning to increase the number of such facilities for next year.

23

Toward the Growth of Engineering Human Resources Services
Highly efficient human resources development throughin-house developed e-learning system
Point
In order to strengthen the ability to develop high value-added human resources, NISSO has developed an e-learning system for
manufacturing education and engineer training as new educational content for our employees.
With the key phrase "knowing makes it possible", NISSO is promoting DX in the education field. By utilizing this system, educational
opportunities will be expanded.
After in-house operation of this system for employee education, NISSO is considering selling it to the general public.

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

23This page is about the next steps related to human resources development toward the growth of
our Engineering Human Resources Services. First, we will improve the efficiency of humanresources development through the in-house e-learning system we developed.
If you look around the world, there are surprisingly only a few e-learning systems in the area of
MONOZUKURI (manufacturing) or engineering. That is why we decided to develop it in-house.
There are two reasons why we have an advantage. First, we have a Technical Center that provides
real education with actual equipment housed there. The one major point is that we have machines
for teaching at our disposal.
Second, our training is unique in that we create a curriculum to develop the human resources wewill need in the future while ascertaining the needs of our clients. This allows us to constantly listen
to the needs of our clients and provide education that is appropriate for them. It also has theadvantage of being able to update the content according to their needs.
We have decided to develop the system, using it in-house, and then selling or opening it to thegeneral public as the next step. I hope you will understand that we have strong intentions to carryout our new ”education” business in the process of recruiting, training, and managing people on-siteover the medium-term.

24

Toward the Growth of Engineering Human Resources Services
Promoting the Development・Supply of Semiconductor Manufacturing
Human Resources in collaboration with Mitsubishi Research Institute
By utilizing the human resources matching service "JOBMINEs ™" of Mitsubishi Research Institute, Inc. (MRI), NISSO will jointly
promote the development and supply of engineer human resources in the semiconductor manufacturing field and other fields.
• Ability to select engineer candidates and reskilling candidates based on their work experience.
• By improving matching accuracy and developing human resources, NISSO will be able to address the social issue of humanresources mobility.
Satisfy client needs/expand business opportunities

Employees

Visualization of
insufficient abilities

NISSO Human Resources DB

Client Companies

Centralized humanresources management
Acquisition of
insufficient abilities

Human Resources
Visualization

Sales Representatives

Career Path Assistants
Technical Centers

Human Resources Matching Service

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

24

Here is the second step toward the growth of our Engineering Human Resources Services.
Mitsubishi Research Institute’s (MRI) “JOBMINEs™” is a human resources matching service we werealso involved in developing.
Until now, there hasn’t been much that can visualize people's skills. Although there are systems out
there to manage skills, they are very rough. Frankly, those alone are not useful in the
manufacturing and technical areas.
“JOBMINEs™” is a system that breaks down the elements of skills needed to flourish as an engineer
in each area. For example, when we talk about reskilling people working in different places, we canclearly see which skill they have and which skill they lack.
Our strength is that we teach the skills the staff may lack at our Technical Centers while providing
our clients with staff that have the right amount of skills they need at the worksites. Until now, evenif clients requested an engineer with particular skills, we have only been able to match the clientsand staff abstractly.
However, by thoroughly analyzing the factors, it is less likely that a gap between the clients andwhat we assume will occur. As a result, the matching accuracy is improved, and there is atremendous benefit of fulfilling the needs of our clients.
We are currently digging deeper into the semiconductor area. However, as we continue to work
closely with Mitsubishi Research Institute, we will delve deeper into the areas of batteries andindustries that will become necessary in the future.
At this very moment, our approach is to respond to the national challenges of reskilling and tosmooth the flow of employment mobility.

25

Administrative・Other Human Resources Services(Unit: # of Staff)(Unit: Million yen)

Administrative Net Sales

Administrative Human Resources Services(Quarterly)

1,000
900

In 1Q, administrative net sales decreased by
7.1% YoY, partly due to a decrease in thenumber of enrolled administrative staff.

FY 3/23

FY 3/24

800
700
600

586

1000

544

562

566

563

700
600

553

598

627

605

２Q

３Q

４Q

300

200

200

100

100

１Q

２Q

３Q

0

４Q

Other Human Resources Services(Unit: Million yen)

(Quarterly)
1,800(Unit: # of Staff)

1,408

1,500

1,179

1,200

800

FY 3/231,298

FY 3/24

1,321

１Q

Number of Enrolled Senior Staff・
Employees w/ Disabilities

Other Net Sales# of employees with disabilities

700# of senior employees

622

600
500
400

900

300

600

0

600

400

300

300

FY 3/24500

400

・Nikon Nisso Prime Corporation supports theactive participation of senior employees.
・The number of senior employees was 622.
・Nisso Pure Co., Ltd. has created a workplaceenvironment where diverse humanresources can flourish.
・The number of employees with disabilities
was 223.

FY 3/23

900
800

500

0

Number of Enrolled Administrative Staff
at Quarter-end

223

200

20

１Q

100

２Q

３Q

４Q

0

１Q

２Q

３Q

４Q

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

25This page is about our Administrative・Other Human Resources Services. As you can see fromgraphs on the slide, both net sales and the number of enrolled administrative staff decreased yearon-year. Call centers and computation centers, which used to be very common as dispatchingdestinations for administrative staff, are increasingly being replaced by new technologies.
Therefore, we do not think that we can expect much growth with our traditional business model.
We would like to face growth while creating the administrative areas and functions necessary for the
new era, as well as a structure that properly develops foreign nationals and enables them toflourish.
Other Human Resources Services, include support for the success of what we call prime humanresources, who are commonly referred to in Japan as "silver (senior employees)", and people withdisabilities. Nikon Nisso Prime conducts product development that enable senior workers to flourish,
while Nisso Pure carries out ability development for people with disabilities and the development of
workplaces where such people can also flourish.

26

Nursing Care・Welfare Services●Results of Nursing Care・Welfare Services

Points• The overall occupancy rate of nursing carefacilities remained high at 94.5%.
• Net sales increased by 3.8% YoY.

FY 3/23 1Q

FY 3/24 1Q

Results
Net sales

Year-on-Year
Increase(Decrease)

Results

737

765% Change28

3.8％(Unit: # of residents)

Number of facility residents

# of
入居者数
residents[Bldg.1-6] (capacity:402)
400（Unit: Million yen）

Occupancy
入居率
rate

380

364

369

375

375

380

90.5%

91.8%

93.3%

93.3%

94.5%

94.5%

Mar'22-end

Jun'22-end

Sep'22-end

Dec'22-end

Mar'23-end

Jun'23-end

300
200
100
0

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

26

The following is about our Nursing Care・Welfare Services. The occupancy rate has been
maintained at a high level of 94.5%, contributing to sales and profits as a result. Although it is tensof millions of yen, I hope you will understand that this segment supports only a portion of ourconsolidated operating profit that I mentioned at the beginning of this presentation.

27

Recruitment Initiatives
NISSO's Recruitment Site
A specialized site that is an absolutecustomer attraction tool

"Kyoto Kyujin Navi" is attracting more customers as arecruitment site specializing in the manufacturingindustry.
NISSO will continue to enhance usability in the future.
URL:https://www.717450.net/(in Japanese only)"engineer works" expands and enhances the range ofoccupations listed from manufacturing engineers to
IT engineers.
URL: https://www.717450.net/special/engineerworks.html(in Japanese only)“Kojo Kyujin Navi”
Application Share (FY 3/2024 1Q)

Media Channels and Characteristics
24.8%

Owned media share: 50% or more

Efficient recruitment with reduced recruitment costs is implemented throughmedia management centered on NISSO's own recruitment site.
About 50% or more of the application share in 1Q was attracted by owned
media.

NISSO's site

50.3%
24.9%

Other company's sites
Other

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

27This page is about our recruitment initiatives. Traditionally, although the human resources industry
has been able to attract large numbers of people, the difficulty of attracting people is increasing witheach passing day.
However, even in this current difficult situation, half of our hires have come through our own
website. In the future, when differentiating ourselves from other companies, we believe that we will
have the advantage of being more efficient in recruiting and being able to provide detailed
explanations on our own website, which will make mismatches less likely to occur.
About one-quarter of our hires have joined the company from other companies’ websites. In the
future, with our new recruitment methods, we will actively recruit “silver (senior)” workers, people
with disabilities, and foreign nationals, as I mentioned earlier, and revitalize our recruitment efforts.

28

Recruitment Initiatives
TV Commercial Promotion
In order to raise awareness of NISSO's recruitment site "Kojo Kyujin
Navi", we continued to conduct promotional activities through TV
commercials featuring actress Yuina Kuroshima.
As a result, the number of users of has expanded. (Up 29% YoY)
URL: https://www.717450.net/cm/(in Japanese only)

Hybrid Recruitment Interviews
In order to meet the needs of job seekers, NISSO uses both in-person (real) interviews andonline interviews.
In order to improve the interview utilization rate, NISSO trains and assigns interviewers
who can respond to various needs.

40.2%
59.8%

Branding Strategy SNS utilization, etc.

Real interviews

NISSO is enhancing recognition and strengthening
application acquisition by utilizing SNS and video
content. NISSO disseminates information that makes
the best use of the characteristics of each SNS.

twitterInterview ratio (FY 3/2024 1Q)

Web interviews

YouTubeFacebook

TikTokLINE

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

28

As for TV commercials, the number of users increased by 29% year-on-year due to the promotion
featuring Yuina Kuroshima.
In addition, in the wake of the COVID-19 pandemic, we have started to implement hybrid
recruitment interviews. Currently, online interviews account for 60% and in-person (real) interviewsfor 40%. Although it may seem like in-person interviews still account for as much as 40%, we
conduct them in a hybrid manner in order to meet the needs of job seekers.
As for our branding strategy, we are making full use of SNS and video content, including TV
commercials.

29First Exhibition at Manufacturing World Japan 2023
Exhibited at the 1st MONOZUKURI (Manufacturing)
ODM/EMS Exhibition
With the aim of promoting understanding of NISSO's business,
we exhibited at the 1st MONOZUKURI ODM/EMS Exhibition of
Manufacturing World Japan 2023, which was held at Tokyo Big Sight
from June 21 (Wed.) to June 23, 2023 (Fri.), for the purpose ofbusiness expansion.
Approximately 1,000 people, mainly technical manufacturers,
visited.
NISSO plans to continue exhibiting at exhibitions in the future inorder to expand the high value-added areas that we are aiming for.

Exhibition Overview | Content
Nisso Technical Center Higashi-Nihon VR
Promotion of NISSO's strengths in education
Tour of the training facility via VR without
actually visiting the site

AI
Information on AI services NISSO is working on
Enabled booth visitors to experience foreign
object detection with AI

Seminars
Two themes, the "Labor Market" and the"Dispatching Market" were prepared, andseminars were held alternately once an hour

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

29

Since it is closely linked to our industry strategy, we exhibited for the first time at "Manufacturing
World Japan 2023". It was held at Tokyo Big Sight, our booth was visited by more than 1,000
people, mainly people from the technical areas of manufacturers.
In addition to a VR tour of Nisso Technical Center Higashi-Nihon and the experience of detecting
foreign objects using AI, which we are working on, we held several seminars.
Our aim in participating this event was not only to promote our company, but also to increase client
contacts to find out what kind of human resources will be needed in each industry in the future. We
intend to further refine the effectiveness of our industry strategy by delving deeper into the needsof our clients.

30

Toward the Realization of the Nisso Group Growth Cycle
Responding to Human
Resources Mobility- Rapid changes in the client environment Local
communities
Administration

Responding to
EVs and DX• Tohoku Semiconductor andElectronics Design Study Group• Chugoku Regional
Semiconductor Industry
Promotion Council• Kyushu Semiconductor Human
Resources Development
Consortium

SS

Active industrygovernmentacademia
cooperation

Active industry-government-academia
collaboration(Shareholders,etc.)

Advanced humanresources development
Practice ofdiversity

CS

Cross-industry
collaboration
Capital and businessalliances
M&A(Promotion of understanding of NISSO's business)

Development of semiconductor
human resources
•

•

ES

(Employees)
Compliancewith laws andregulations•
Improvement ofskillsdevelopment,
treatment
and work-styles

インダスト
Industry
Strategy
リー戦略

Miyagi Prefectural Governor
Accredited Training School

Nisso TC*
Higashi-Nihon

Nagano Prefectural Governor
Accredited Training School

Nisso TC
Naka-Nihon

Kumamoto Prefectural
Governor Accredited Training
SchoolNisso TC
Kumamoto

Other human resources
development facilities• 6 locations
nationwide

Collaboration with other industries• Capital and business alliancewith DOCTORS Co., Ltd.
• Investment and partnershipagreement with Interstellar
Technologies Inc.

Active support ofcareer advancement
・career changes tocreate job satisfaction(Customers/
Clients)

Acquisition of new points of contact

・Exhibition at Manufacturing
World Japan 2023

• Joint research with MRI

Realizationof highly
Transparent
dialogueStrengthening of recruitment structures•

Kojo Kyujin Navi•engineer works

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

Streamlining of humanresources development• Development of
e-learning system(Consideration of sales to the generalpublic)*TC=Technical Center

30

This is an update of our Medium-term Management Plan, including the contents of the current plan.
This time, we have added industry strategy as a new major gear.
In order to increase the level of satisfaction of our clients, employees, and shareholders, we mustensure that all related important issues are properly addressed. We hope to realize the growth cycleby specifically incorporating various elements.

31

4

Future Prospects (FY 3/2024）

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

31

32

FY 3/2024 Full-year Consolidated Forecasts
In the full-year consolidated forecasts, in addition to the recovery of operations in the automobiles industry, demand forcomponents related to PCs and communication equipment is expected to gradually recover. Furthermore, in the semiconductor
memory field, etc., although the impact of inventory adjustments remain, NISSO expects revenue and profits to increase.
■FY 3/2024 Full-year Consolidated Forecast (April 1, 2023 ～ March 31, 2024)
FY 3/23 Results
Results(Unit: Million yen)

FY 3/24 Forecast% of Total

Forecast

Year-on-Year% of Total

Increase(Decrease)% Change

90,827100.0%

100,000

100.0%

9,172

10.1%

Operating profit

2,268

2.5%

3,600

3.6%

1,331

58.7%

Ordinary profit

2,349

2.6%

3,600

3.6%

1,250

53.2%

Profit attributable toowners of parent

1,622

1.8%

2,300

2.3%

677

41.8%

Net sales

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

32

Here are our future prospects. We believe that we have maintained our prospects for the end of thecurrent fiscal year based on what we announced in May. The reason, as I mentioned earlier, is that
there are many uncertainties. We would like to disclose it promptly as soon as the situation
becomes more clear.

33

5

Shareholder Return Policy

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

34

34

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

Dividend and Payout Ratio(Unit: Yen)

Dividend (left axis)

25.00

Payout ratio (right axis)

20.50 yen

20.10 yen
20.00

(Unit: %)

70%

15.00

60%

42.7%

NISSO expects to pay a dividend of 20.50 yen per
share (consolidated dividend payout ratio of 30.3%).

90%
80%

18.00 yen
16.00 yen

FY 3/2024 Dividend Forecast

100%

10.00

50%

36.0%

33.5%

30.3%

40%
30%

5.00

20%
10%

0.00

FY 3/2021

FY 3/2022

FY 3/2023

FY 3/2024(Forecast)

0%※The dividend for FY 3/2021 includes a commemorative dividend of 5.00 yen for the50th Anniversary of NISSO's founding.

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

35This is our shareholder return policy. This time, we plan to pay a dividend of 20.50 yen per share.
However, we do not consider this dividend to be at a high level. We will fully consider raising thedividend payout ratio when we are in a situation where we can expect further growth, or while
monitoring the status of our internal reserves.

35

6

Supplementary Materials

Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved3636

Consolidated Balance Sheet
Mar. 2023-end

Current assets
Cash and deposits
Accounts receivable - tradeNon-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total assets
Current liabilities
Accrued expenses
Income taxes payable
Provision for bonuses
Non-current liabilities
Long-term loans payable
Total liabilities
Shareholders' equity
Non-controlling interests
Total net assets
Total liabilities and net assets(Unit: Million yen, %)Jun. 2023-end

IncreaseAmount % of Total Amount % of Total (Decrease)
21,74772.3
21,371
72.3
(375)
9,800

32.6

8,673

29.3

(1,126)

10,98636.5

11,515

39.0

529

8,344

27.7

8,184

27.7

(160)

4,660

15.5

4,682

15.8

21

1,514

5.0

1,467

5.0

(46)

2,169

7.2

2,034

6.9

(134)

30,092100.0

29,556

100.0

(536)

12,18740.5

11,946

40.4

(240)

6,119

20.3

6,504

22.0

384

555

1.8

81

0.3

(473)

1,395

4.6

772

2.6

(623)

3,097

10.3

3,022

10.2

(74)

2,019

6.7

1,896

6.4

(122)

15,28450.8

14,969

50.6

(315)

14,563

48.4

14,336

48.5

(227)

239

0.8

245

0.8

5

14,80749.2

14,586

49.4

(220)

30,092100.0
29,556100.0(536)
Copyright ⓒ 2023 NISSO CORPORATION All Rights Reserved

Point① Increase due to expansion of operating
personnel
Due to the expansion of operating personnel inthe manufacturing-related human resources
services, "accounts receivable (trade)" of current
assets and "accrued expenses" of current
liabilities increased.
②Tax payments"Income taxes payable" of current liabilities
decreased due to the payment of income taxes
and other taxes at the end of May.
③Bonus payments
Due to the payment of summer bonuses at theend of June, "provision for bonuses" of current
liabilities decreased.
④Dividends
Shareholders' equity decreased due to dividend
payments in June.
⑤Overall
As a result of the above, total assets decreasedby 1.8%, total liabilities decreased by 2.1%, andtotal net assets decreased by 1.5%, resulting inan equity ratio was at 48.5% compared to theend of the previous fiscal year.

37

Our consolidated balance sheet is included here as supplemental material. Please refer to thepoints on the right side of the slide at your own convenience.
This concludes my presentation.

37

Making hardworking people,
happy.

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

IR Division, NISSO CORPORATION
TEL

045-777-7630

E-mailir@nisso-ir.com

URL

https://www.nisso.co.jp/38