FY 3/2024
Financial Results Briefing Materials

May 13, 2024

Making hardworking people, happy.

NISSO HOLDINGSTSE Prime Market Code:9332

NISSO HD’s net sales increased by 6.6% year-on-year and operating profit increased by 34.8%
year-on-year. Expecting to increase revenue and profits this fiscal year, following FY 3/24.
Ryuichi Shimizu, Representative Director, President & CEO.
Naoki Hayakawa, Managing Director & CFO.

CONTENTS

１

FY 3/2024 Financial Results Summary２

FY 3/2024 Financial Results by Service

３

Toward the Growth of the Nisso Group

４

Nisso Group Topics

５

Future Prospects (FY 3/2025)

６

Shareholder Return Policy

７

FY 3/2024 Financial Condition

８

Glossary
Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

1

Mr. Ryuichi Shimizu (hereinafter, “Shimizu”): This is Ryuichi Shimizu, President and CEO.
I would like to express my sincere gratitude to all of you who are watching.
Now, let’s proceed according to the contents on the slide.

1

１

Financial Results Summary (FY 3/2024)

Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved22Summary
FY 3/2024 Results●Revenue and profits increased year-on-year●Consolidated net sales increased by 6.6% year-on-year, consolidated operating profit increased by 34.8% year-on-year●In the Automotive Industry, although net sales increased, growth slowed due to problems such as inspection irregularities●Engineering Human Resources Services showed a sharp recovery in 4Q, due in part to the recovery of the Semiconductor
Industry●Nursing Care・Welfare Services also increased revenue and profits year-on-year

FY 3/2025 Consolidated Earnings Forecast●Revenue and profits are expected to increase from the previous fiscal year
●In the Automotive Industry, although the impact of inspection irregularities may remain, operations are expected to recover●Demand for components in the Semiconductor Industry (memory field, etc.) and the Electronics Industry is expected to
grow steadily●Continued investment is expected in training-related activities for the start of operations of new semiconductor and battery
factories in 2026 and 2027

Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

3

Here is a summary of our financial results.
Details of the results for FY 3/2024 and the consolidated earnings forecast for FY 3/2025 will be
explained later.

3

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

PointsFY 3/23
Results

Operating profit increased by 34.8% YoY•

Net sales increased by 6.6% YoY, partly
due to an increase in the number ofenrolled staff.

•

Nursing Care・Welfare Services
increased revenue and profits YoY.

•

The SG&A expense ratio decreased by
0.1% YoY, partly due to net sales growth.

FY 3/24% of Total

Results

Year-on-Year% of Total

Increase(Decrease)% Change

Net sales

90,827100.0%

96,858100.0%

6,031

6.6%

Gross profit

14,55416.0%

16,014

16.5%

1,460

10.0%

SG&A
expenses

12,286

13.5%

12,956

13.4%

670

5.5%

Operatingprofit

2,268

2.5%

3,058

3.2%

789

34.8%

Ordinary
profit

2,349

2.6%

3,056

3.2%

707

30.1%

Profitattributableto owners ofparent

1,622

1.8%

1,952

2.0%

329

20.3%

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4

Here are the consolidated financial results highlights. In particular, I would like to explain the changes fromthe third to the fourth quarter.
Although the end of the COVID-19 pandemic is in sight, the monthly operating hours did not increasesignificantly for various reasons, and remained almost at the same level as the fiscal year before last.
However, as a result of a simple average unit-cost increase of approximately 2%, it has led to sales growth,
gross margin improvement, and profit growth.
As indicated in the table on the slide, net sales increased by 6.6% year-on-year. Gross profit improved by
0.5 percentage points, and the SG&A ratio improved by 0.1%, resulting in an improvement in operating
profit of 0.7 percentage points.
As you know, a lot of things happened in the last fiscal year. In May of last year, the status of COVID-19
under the Infectious Disease Act was downgraded to a Class 5 infectious disease. Normally, although weshould have expanded the Automotive Industry (related to automobiles・EVs), various troubles occurred at
automobiles manufacturers, and as a result, it was difficult to increase operations.
In addition, the Semiconductor Industry (related to semiconductors・semiconductor manufacturing
equipment) and the Electronics Industry (communications equipment・electronic components) experienced aslower recovery than initially expected.
Under such circumstances, we have made a downward revision to our full-year consolidated earnings
forecast because we believe that earnings will be significantly lower particularly due to the problem ofinspection irregularities. Compared to the revised forecast of 2.8 billion yen, operating profit amounted
3.058 billion yen in the previous fiscal year, which was an increase of more than 250 million yen.
The first reason for this is that in the Automotive Industry, the impact of parts manufacturers was less than
expected in the fourth quarter. Secondly, in the Semiconductor and Electronics Industries, which I
mentioned earlier as having a "slow recovery", profits increased due to increased operations and sales inMarch.
Furthermore, the earnings of Nikon Nisso Prime Corporation, a joint venture between Nisso Nifty Co., Ltd.
and Nikon Corporation, exceeded expectations by nearly 100 million yen compared to the initial plan.

4

FY 3/2024 Quarterly Consolidated Financial Results
Net sales

25,152
24,03823,625 23,660 23,721

24,00020,00024,323

22,661

Operating profit
1,200

1,083
1,009
1,000

20,572
20,501
20,282

888

800

600

16,000
400

869

680

18,045 18,649

18,000

582
500

470

464

354
259

14,000250

200

12,00010,000（Unit: Million yen）

Up 16.0% YoY in 4Q

26,00022,000（Unit: Million yen）

１Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q ２Q ３Q ４Q【FY 3/22】【FY 3/23】【FY 3/24】

0

1Q ２Q ３Q ４Q １Q ２Q ３Q ４Q 1Q ２Q ３Q ４Q【FY 3/22】【FY 3/23】【FY 3/24】

Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

5This slide shows the quarterly trends of net sales and operating profit. As you can see on the slide,
net sales declined in the fourth quarter due to operational issues.
Operating profit was still heavily weighted toward the second half of the fiscal year. Although
there were some problems in the Automotive Industry in the second half, looking at the first andsecond half, the ratio remained at 1 to 2.2 this year as well. Had there been no trouble, I believe
we would have ended up with a revenue bias of 1 to 2.5 that I initially talked about.

5

２

Financial Results by Service (FY 3/2024)

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6

6

Contents of Nisso Group's Business(Our Company・Holding Company)

NISSO HOLDINGS Co., Ltd.

(General Human Resources Services)(Consolidated subsidiary)

NISSO CORPORATION…Manufacturing dispatching・contracting,

employment placement, etc.

(Consolidated subsidiary)

Vector Shinwa Co., Ltd.

(Consolidated subsidiary)

EYE‘S Co., Ltd.

…Manufacturing dispatching・contracting,etc.

…Manufacturing dispatching, IT engineer dispatching,

Manufacturing・Production
Human
Resources
Services

Engineering
Human
Resources
Services

FA support, etc.

(Consolidated subsidiary)

Nisso Brain Co., Ltd.

…Administrative dispatching, BPO, etc.

Administrative Human Resources
Services(Consolidated subsidiary)

Nikon Nisso Prime Corporation…Human resources dispatching,recruitment, etc.

(Consolidated subsidiary)

Nisso Pure Co., Ltd.

…Light work contracting, sale of goods, etc.
(Special-purpose subsidiary of NISSO CORPORATION)

Other Human Resources
Services(Equity-method affiliate)

Leaf NxT Inc.

(Nursing Care・Welfare Services)…Recruitment support, HR platform services, etc.

(Consolidated subsidiary)

Nisso Nifty Co., Ltd.

…Facility nursing care, home-based nursing care, etc.

Nursing Care・Welfare Services

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7

Next, let me explain our financial results by service. First of all, in terms of new content, EYE’S
Co., Ltd. joined us as a new member at the end of January.
EYE’S provides human resources services in the manufacturing area similar to ours, and they also
engage in business in areas that we hope to expand in the future, such as IT engineer dispatching,
IT-related development contracting, and work related to manufacturing equipment, centered onmachine tools.
In addition, Leaf NxT Inc. has originally been part of the Group, and its role is becoming
extremely important. As we aim to recruit more efficiently, increase the number of hires, andscale up, I believe that Leaf NxT's recruitment support and human resources recruitment platform
services will come into play, and will become very functional in the future.
The Nursing Care・Welfare Services I talked about earlier have achieved increased revenue andprofits.

7

Net Sales by Service ※Internal transactions have been eliminatedGeneral Human Resources Services

Nursing Care・Welfare Services

Other Human Resources Services

6%

Administrative HR* Services

3%

Manufacturing
・Production

76,862 Million yen

2%Engineering
HR* Services
９％

Engineering

9,080 Million yen

Administrative

2,162 Million yen

Other Human
Resources
Services

5,708 Million yen

FY 3/2024
Consolidated net sales

96,858 Million yen（YoY:up 6.6%）

Manufacturing・Production
Human Resources Services
79％

Nursing Care・Welfare Services
Nursing Care・Welfare3,045 Million yen

HR*= Human Resources
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8Here are the net sales by service. The weight of the Manufacturing・Production Human Resources
Services, centered around NISSO CORPORATION, is considerably high. We believe that increasing
the Engineer Human Resources Services will become one of the engines for growth in the future.

8

General Human Resources Services

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99Manufacturing・Production Human Resources Services(Unit: Million yen)

(Unit: # of Staff)

Manufacturing・Production
Net Sales

Net Sales
In 4Q, although manufacturing・production
net sales increased by 2.4% YoY, partly due
to an increase in the number of enrolled
manufacturing・production staff and anincrease in billing unit-costs, growth slowed
due to problems such as inspection
irregularities in the Automotive Industry.

Number of Enrolled Manufacturing・Production Staff at Quarter-end（Quarterly）
22,000FY 3/23

FY 3/24

14,761

20,011

20,00018,77018,937 19,066

19,143

18,69017,98718,000FY 3/23

16,000

14,11814,761

14,400FY 3/24

14,963
14,677

14,793

14,586

14,00017,346

Number of Enrolled Staff
16,000The number of enrolled manufacturing・
production staff increased by 207 YoY.

12,00014,00010,00012,00010,000

１Q

２Q

３Q

４Q

8,000

１Q

２Q

３Q

４Q

※Internal transactions have been eliminatedCopyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

10

Now, let me explain our General Human Resources Services, starting with the Manufacturing・Production Human Resources Services. As shown in the graph on the right side of the slide, thenumber of enrolled manufacturing・production staff has not increased much in the last fiscal year.
As I have stated many times, the problem of inspection irregularities in the Automotive Industry
within our Industry Strategy has affected growth, particularly in the second half of the fiscal year,
as well as the slow recovery in the Semiconductor and Electronics Industries.
The number of enrolled manufacturing・production staff increased by 207 year-on-year. Originally,
one of the goals in this field was to increase the number of enrolled staff by 1,000 per year, and I
think you can see very clearly from this graph that the growth of the number of enrolled staff has
slowed down.

10Manufacturing・Production Human Resources Services
Avg. Monthly Net Sales per Capita

Manufacturing・Production
Avg. Monthly Net Sales per Capita

Although manufacturing・production net sales
per capita increased by 2.5% YoY, growthslowed due to problems such as inspection
irregularities in the Automotive Industry.

FY 3/23500
450(Unit: Thousand yen)

407

427

413

428

421

434

FY 3/24

422

433

400
350
300

１Q

Turnover Rate

２Q

３Q

４Q
(Unit: %)Manufacturing・Production
Trend of Turnover Rate (Monthly Avg.)

The manufacturing・production turnover rate
remained at the same level YoY, and is theprevious fiscal year, it remained below 4%
for the full year.

54

FY 3/233.8
3.7

FY 3/24

4.0

3.8

3.9

3.9

3.8

3.9

3Q

4Q

3

1Q

2Q

Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

11This slide shows the average monthly net sales per capita and turnover rate. As you can see inthe graph in the upper part of the slide, the year-on-year increase in the average monthly net
sales per capita in the fourth quarter was influenced by the factors that I mentioned earlier.
Looking at the past fiscal year, the Automotive Industry showed significant growth in businessperformance, increasing by nearly 600 staff. The most stagnant was the Semiconductor Industry,
which scaled down by about 350 staff a year.
Although the Electronics Industry is said to be under tough conditions, orders from new clients
have led to a slight increase, growing by about 200 staff.
I think it was very positive that we were able to keep the turnover rate at 3.9% in the fourth
quarter.

11

Engineering Human Resources Services(Unit: # of Engineers)(Unit: Million yen)

Net Sales
・In 4Q, engineering net sales increased by
6.4% YoY, showing a clear recovery.
・The cumulative total increased by 5.3% YoY.

Number of Enrolled Engineers
at Quarter-end

Engineering Net Sales(Quarterly)
2,600

FY 3/23

2,500

Recovery was clear

2,400

2,345

2,320

2,300
2,200

2,174

2,171

FY 3/24

FY 3/23

1,600

2,441

2,295

1,500

1,479

1,470

FY 3/24
1,544

1,542

1,505

1,517

1,426
1,400

2,143

2,100

Number of Enrolled Engineers

1,300

2,000
1,900

The number of enrolled engineers increased by
27 YoY, partly due to the gradual recovery of
the Semiconductor Industry.

1,239
1,814

1,200

1,800
1,700

1,100

1,600
1,500

１Q

２Q

３Q

４Q

1,000

１Q

２Q

３Q

４Q

※Internal transactions have been eliminatedCopyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

12

Next, let me provide an explanation about our Engineering Human Resources Services. This
service was also affected by the large number of equipment engineers in the Semiconductor
Industry. In particular, in the first half of the year, although the number of enrolled engineers wasstagnant due to slow inventory adjustments in the memory field business, we were finally able toreturn to a record-high level.
I believe it is important to continue to increase the number of highly specialized engineers
necessary for the new era.
Although the Automotive Industry stagnated in the fourth quarter, if you look at the net sales
graph on the left side of the slide, it shows a sharp increase in the fourth quarter. This clearlyshows that operations increased in the fourth quarter, especially in March.

12

Engineering Human Resources Services(Unit: Thousand yen)

Engineering
Avg. Monthly Net Sales per Capita

Avg. Monthly Net Sales per Capita
Although engineering net sales per capita
decreased YoY, it has been on a recovery trend
since 2Q.

FY 3/23

600
550
500

514

524

485

524

485

FY 3/24
518

496

505

450
400
350
300

１Q

Turnover Rate

２Q

３Q

４Q
(Unit: %)Engineering Trend of Turnover Rate

(Monthly Avg.)

The engineering turnover rate improved by 0.1
percentage points YoY and was just below 2%.

3
2
1

FY 3/23

FY 3/24

2.3

2.2

2.1

2.1

2.3

2.2

2.1

2.0

1Q

2Q

3Q

4Q

0

Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

13This slide shows the average monthly engineering net sales per capita and turnover rate.
Although it has not yet fully recovered, it can be said that it has been on a recovery trend,
especially in the third and fourth quarters.
The turnover rate in the fourth quarter was 2%, which was an improvement of 0.1 percentage
points year-on-year.

13Administrative・Other Human Resources Services(Unit: Million yen)

(Unit: # of Staff)

Administrative Net Sales

Administrative Human Resources Services(Quarterly)

1000

In 4Q, administrative net sales decreased by
5.5% YoY, partly due to a decrease in thenumber of enrolled administrative staff.

900

FY 3/23

800
700
600

584

FY 3/24

Number of Enrolled Administrative Staff
at Quarter-end
1000

561

544

531

565 554

562

700

531

627

552

605

562

200
100

１Q

Other Human Resources Services

２Q

３Q

0

４Q

１Q

※Internal transactions have been eliminated(Unit: Million yen)

２Q

(Unit: # of Employees)(Quarterly)

2,100

1,408

1,500

1,348

1,179

1,200

1,505
1,297

FY 3/24
1,445

1,320

800

(Unit: # of Employees)

Employees
w/ Disabilities

700

622

640

671

697
223

500

224

227

100

200

19

221

200

300

600

300

600

400

900

１Q

４Q

400

FY 3/23

1,800

３Q

Prime Employees

Other Net Sales

0

555

300

100

※Prime employees: Senior employees

598

400

200

300

553

500

300

・Nisso Pure Co., Ltd. has created a workplaceenvironment where diverse humanresources can flourish, and the number of
employees with disabilities in 4Q was 227.

600

600

400

・Nikon Nisso Prime Corporation supports theactive participation of Prime employees, andthe number of Prime employees in 4Q was
697.

FY 3/24

800

500

0

FY 3/23

900

100

２Q

３Q

４Q

※Internal transactions have been eliminated00

１Q ２Q ３Q ４Q

１Q ２Q ３Q ４Q

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14

Now, let me explain our Administrative・Other Human Resources Services. As I have said before, I
believe that the area that will be most replaced by AI and other technologies in this new era willbe the area of general office work. As a result, the number of enrolled staff has continued to
decline.
As for Other Human Resources Services, we have been able to steadily increase the number ofso-called Prime human resources. In addition, while being particularly conscious of theemployment rate of people with disabilities, the number of employees with disabilities hasremained almost unchanged, although it has increased slightly.

14

Results of Industry Strategy for Expansionof General Human Resources Services

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15

15

FY 3/2024 Net Sales by Industry
Consolidated Net Sales
Composition Ratios

Automotive

Semiconductor

Electronics(Automobile manufacturing・
EV-related manufacturingindustry)(Semiconductor manufacturingindustry)(Electronic equipment
manufacturing industry)

Up 14.7% YoY

Down 12.5% YoY

Down 3.2% YoY

O
P
E
R
A
T
I
O
N
A
L

Operations did notincrease due tocertification issues,
etc.

Manufacturing
equipment andsemiconductor memory
were on a recovery
trend・power
semiconductors weresteadyRecovered gradually

P
E
R
S
O
N
N
E
L

Decreased due tocertification issues,
etc.

Recovered gradually

Recovered gradually

Industry(Unit: Million yen)

10,141(3.2％)

14,146(12.5％)（11.2％）

9,819（10.1％）

12,377（12.8％）（15.6％）

35,295（38.9％）

※（

F
U
L
L
Y
E
A
R

４
T
H

＋14.7％

40,485（41.8％））= % of consolidated net sales, Red = % of Year-on-Year growth

Q
U
A
R
T
E
R
T
R
E
N
D
S

Industry

Industry

N
E
T
S
A
L
E
S

Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

16

Next, let me talk about the results of our Industry Strategy aimed at expanding our General
Human Resources Services. The table on the right side of the slide shows the status of eachindustry in the fourth quarter.
The Automotive Industry has been on an upward trend. Although there was some stagnation due
to certification fraud issues at our largest transaction group, there has been a gradual recovery in
the fourth quarter. I think that it is very encouraging that the gradual recovery trend continued in
April.
Earlier, I mentioned that the number of staff in the Automotive Industry increased by about 600.
Despite the slight impact of factory shutdowns, net sales in the Automotive Industry increased by
14.7% year-on-year.
In the Semiconductor Industry, the decrease in the number of staff and very low operating
conditions in the first half of the year are reflected. Although the Electronics Industry was undertough conditions, it has started to increase slightly from being almost flat.

16

Nursing Care・Welfare Services

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17

17

Nursing Care・Welfare Services
Nursing Care・Welfare Services are centered on facility nursing care and home-based nursing care
Sweetpea Shin Yokohama

Sweetpea Konandai mio

Sweetpea Kanazawa Hakkei

Sweetpea Honmoku Sankeien

Sweetpea Mitsukyo

Sweetpea Higashi Totsuka

Facility Nursing Care
In Yokohama, Kanagawa, we operate 6 fee-based nursing homes and provide nursing
care services to residents.
With the motto of providing high-quality services, the occupancy rate at the facilities
remain at a high level.

Home-based Nursing Care
We have 1 nursing care station in Yokohama, Kanagawa Prefecture, 2 in Iwaki City,
Fukushima, and 2 outpatient care facilities in Iwaki City, Fukushima.

Human Resources Development
Aiming for high-quality nursing care, we focus on human resources development.

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18

Regarding our Nursing Care・Welfare Services, as I have mentioned before, we operate 6 feebased nursing homes mainly in Yokohama, Kanagawa. As I will explain later, the occupancy rate
remains high at just under 95%.
For home-based nursing care, we operate nursing care stations in Yokohama, Kanagawa, andIwaki City, Fukushima, as well as 2 outpatient care facilities in Iwaki City, Fukushima.
As a human resources company operating Nursing Care・Welfare Services, we are focusing on thedevelopment of human resources with the aim of providing high-quality nursing care.

18

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

Points• The overall occupancy rate of nursing carefacilities remained at a high level of 94.8%.
• Net sales increased slightly YoY.
• Total sales increased by 7.9% YoY.
• Started participation in Kanagawa
Prefecture's Healthcare New Frontier Policy. Net sales
Promoting individual collaboration withrelated industry- academia-governmentGross profit
related organizations.

FY 3/23

FY 3/24

Results

Results（Unit: Million yen）

Year-on-Year
Increase(Decrease)% Change

3,017

3,045

28

0.9%

307

332

24

7.9%

(Unit: # of residents)

Number of facility residents

Occupancy
入居率
rate

# of
入居者数
residents[Bldg.1-6] (capacity:402)
400※Internal transactions have been eliminated

381

375

380

380

378

377

93.3%

94.5%

94.5%

94.0%

93.8%

94.8%

Dec.'22-end

Mar.'23-end

Jun.'23-end

Sep.'23-end

Dec.'23-end

Mar.'24-end

300
200
100
0

Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

19This slide shows the status of occupancy rates, net sales, and gross profit. As shown in the table,both net sales and gross profit have increased slightly and improved.
What I would like to tell you here is that we are participating in the "Healthcare New Frontier
Policy" promoted by Kanagawa Prefecture. Since the industry environment is struggling with ashortage of workers, we are promoting nursing care tech and digital transformation (DX) in
nursing care using a variety of images.

19

３

Toward the Growth of the Nisso Group

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20

20

Toward the Realization of the Nisso Group Growth Cycle
Nisso Group Growth Cycle Image- Rapid changes in the client environment-

Local
communities

Responding to EVs and DX

Administration

Capital and businessalliances to enhancesynergies

SS

Active industrygovernmentacademia
cooperation

Flexible M&A

Cross-industry
collaboration
Capital and businessalliances
M&A(Shareholders,
etc.)

CS

Practice ofdiversity

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

ES

Acquisition of new
points of contact
Collaboration withother industries

要差替

Realizationof highlytransparent
dialogue(Employees)
Compliancewith laws andregulations

Industry
Strategy

Improvement ofskillsdevelopment,
treatment
and work-styles

Responding tohuman resources
mobility
Active industrygovernment-academia
collaboration

Advanced humanresourcesdevelopment
Strengthening ofrecruitment
structures

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21

Let me explain our initiatives for the growth of the Nisso Group. This slide depicts the image ofour growth cycle. We will grow by creating and implementing action plans based on the 8
perspectives listed on both sides of the diagram.

21

Toward the Expansion of General Human Resources Services(Industry Strategy)

Continuing our Industry Strategy to expand Manufacturing・Production Human Resources Services
and Engineering Human Resources Services as a growth engine

Industry Strategy

Industries driving Society 5.0

Automotive

Industry

Automobiles/
EV-related

Semiconductor

Semiconductors/
semiconductor
manufacturing
equipment

Electronics

Communicationequipment/
electronic
components

Industry

Industry

Actively approaching areas that will
become the next pillars of growth
Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

22

Now, regarding our Industry Strategy. For each industry, we thoroughly discuss with our clientsthe growth strategies and challenges faced by manufacturers who are expected to grow in the
future, and we dig deep into the solutions necessary for growth.
While discussing "How to secure both the quantity and quality of human resources" with ourclients, which is often talked about these days, we have created a structure to secure them inadvance, and are digging deeper with our clients and exploring these issues together.
What I would like to emphasize in particular here is that there will be a large number of largescale battery projects in Japan around 2026 and 2027 centered on semiconductors and EV
batteries. We are currently having discussions on the formulation of plans necessary to securelarge orders during this period, and the steady implementation of the plans by putting them into
the schedule.
To give you some concrete examples of our strategy, we are currently creating a digital
recruitment platform that is necessary to secure both quantity and quality of human resources.
We have been conducting a consortium for several years, which includes multiple stakeholders,
including human resources companies, and we hope that this will help us to acquire an evengreater quantity of human resources.

22Toward the Expansion of General Human Resources Services(Deepening the Industry Strategy)

Industry Strategy
Towards expanding・developing areas

Deepening into an indispensable partner
Co-creation with manufacturers to solve problems in expanding areas

Maintained
area

Expandedarea
Expansion(Deepening)High
added-value

Reducedarea

Maintained
area《Value Co-creation》

Manufacturer

Manufacturer

Expansion(Deepening)

Manufacturer

High skills■Examination of expanded areas■Creation of a system to develop high valueadded human resources■Expansion of business partners(Deepening of relationships)）■Responding to changing (sophisticated) needs

Realizing sustainable business growth by deepening the quality and content of the services provided
Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

23

Now, let me explain the deepening of our Industry Strategy for the expansion of our General
Human Resources Services. As shown in the diagram on the left side of the slide under“Expanding areas,” we view this expansion area along two axes: providing high-skill services andproviding high value-added services.
Among them, the key areas covered include semiconductor-related factories, projects for EV andstationary battery factories, which are expected to see a major surge from 2026. We aim to meet
not only the human resources needs but also various other client needs as we move forward.
To provide context, Japan is experiencing a severe labor shortage due to a declining birthrate andan aging population. Upcoming projects for large factories, etc., that will emerge in the future arevery conscious of labor-saving and unmanned operations.
As a result, the demand for traditional operators at manufacturing sites and assembly line
workers will decline. Instead, there will be an increasing need for people who can skillfully control
equipment in the production technology area, such as engineers and other highly specialized staff
who can maintain robots that effectively maintain equipment. I can tell you that this is for certain.
Another recent observation from our discussions with clients who are major manufacturers is that
HR managers at these companies have extensive experience in managing a system to regularly
recruit and train new graduates.
However, in recent years, we have found that hiring and training plans for people with diverse
employment types, such as contract employees other than regular employees, dispatching andcontracting of external labor, and, in the future, foreign nationals, have become one of the
problems.
In fact, we have seen a significant demand from HR managers at major manufacturers asking for
support in these areas. Therefore, we have already started to address some of these needs, but
we would like to further strengthen our response to these needs as we look ahead to 2026 and
2027.

23

FY 3/2025 Industry Strategy Trends ※NISSO HOLDINGS’ own forecasts
Automotive Industry(Automobile manufacturing・
EV-related manufacturing industry)
Clear & sunny

Clear & sunnyWill expand

CapitalInvestment☼

Cloudy, thensunnyWill increase graduallyWill be busy in 2H

SunnyOperational
Trends☼Manufacturing equipment・memory will recover
Power semiconductors will bestrongWill normalize
Will be busy in 2H☼

Will normalize
Will be busy in 2H

SunnyWill be vigorous☼☼

Will gradually expand

CloudyWill be linked withsemiconductors

Cloudy, then
sunny

Sunny

Clear & sunny
Personnel
Trends☼Electronics Industry(Electronic equipment manufacturing industry)
SunnyWill expand

Cloudy, thensunny
Production
Trends

Semiconductor Industry(Semiconductor manufacturing industry)☼

Will normalize

SunnyWill recover
Will be busy in 2H

Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved☼Will recover24

Next, let me talk about our strategy trends for each industry for FY 3/2025. Our forecasts
previously were often "cloudy" oar "rainy", but are now "sunny" or "clear". This fiscal year, I feelthat we will be able to finally show our strengths.
Based on these considerations, we believe that in order to ensure steady growth over the medium
to long term, it is necessary to make solid investments this fiscal year to increase sales, and at
the same time, to thoroughly develop and assign human resources that our clients are looking for.

24

Strengthening the Recruitment Structure(Solving Recruitment Difficulties with New Initiatives)
Establishment and expansion of a recruitment consortium centered on the Nisso Group
Recruitment Consortium
Nisso Group

Expansion

Human resources
mobilization

Expansion

Recruitment
platform

Matching by AI
Increased accuracy

Alliances《Value Co-creation》

Diversification ofhuman resources needs

Human
resourcesrelatedcompanies

Diversification ofsocial issues

In response to diversifying social issues and human resources needs, we will build and develop a
recruitment platform that leverages Group synergies to lead to business expansion
Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

25

Regarding our recruitment strategy, as previously mentioned, I will provide an explanation on the"establishment and expansion of a recruitment consortium centered on the Nisso Group".
This slide shows various human resources services provided by the Nisso Group on the left, andthe diversified human resources needs and issues at the bottom.
In the past, NISSO CORPORATION and other human resources-related companies formed analliance and introduced people to each other. This time, we are planning to take a slightly larger
stance by building and developing a recruitment platform for the entire Nisso Group.

25

Toward the Practice of Human Capital Management

Human resources
development model

Diversity management
・Partnerships with overseas
educational institutions

Personnel system reform

Nisso Group

Enhancement ofcareer advancement systems

Revenue
expansion

Human capital
investment

・Promotion of well-being
・Membership-type→Shift to job-type

Increase the number ofcareer path assistants
・Consideration of in-house
qualifications

Visualization ofskillsOJT
Clients

Cooperation indevelopment

Off-JT
Provision of highvalue-added services

Promotion ofcareer changes

Employees

・Utilization of human resources
matching service "JOBMINEs "Expansion oftraining facilities

Introduction of
VR/AR education

・Establishment of Nisso EV Technical Center・Completion of VR toolKansaiselections
・Expansion of Nisso Technical Center
Kumamoto(Scheduled)

Development ofengineers・ Launch of new employee training
e-learning tool "Start engineer"

Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

Development of
nursing care human resources
・FY 3/2024 Educational achievements
1,571 participants (Total)

26

Next is about our initiatives toward the practice of human capital management. As shown on theslide, we will continue to invest in human capital while improving the environment in various ways,
including various training structures in our human resources development model and thepersonnel systems that support such people.
We aim to create a cycle in which workers increase client satisfaction while providing high-quality
services, raise their own salaries, and expand our profits.
As a concrete measure, for example, as shown on the right side of the slide, we are considering
partnerships with overseas educational institutions as an initiative for diversity management. As
for this, the recovery from the COVID-19 pandemic was slower than expected, and there was aperiod when overseas travel was difficult, so although the start of the program has been delayed,
we began forming alliances with various universities, mainly in Asia, in the latter half of theprevious fiscal year.
This year, we would like to speed up our efforts so that we can respond to the large-scale
projects that are expected in 2026 and 2027.
In addition, we are currently expanding our training facilities, introducing VR/AR education toenhance our training programs, and opening a site called "Start engineer" where we will sell our
training expertise that we have cultivated thus far to external parties.
The human resources matching service to improve matching efficiency, which is shown on the far
right of the slide, is being promoted in collaboration with Mitsubishi Research Institute, and wewill improve matching accuracy by utilizing a service called "JOBMINEs". In addition, since last
fiscal year, we have started initiatives to motivate workers while transitioning to a job-typesystem for optimal treatment.

26

Toward the Practice of Human Capital Management
Nisso Group's Educational Achievements
Points・We aim to provide high value-added
services and expand educational
opportunities for the entire Nisso
Group.
・The need for external employee
training (entrusted) is expanding.
We provide customized training
content based on client needs.

● FY 3/2024 Educational achievements (total # of participants)
Classification

Training content

FY 3/24 Cumulative Total(Direct)
Engineer training

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

1,370

(Direct)
Manufacturing・production
training

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

16,613(Direct)
Other training

Regular compliance education
Career support training
Qualification (enhancement) training, etc.

1,485

Nursing care・welfare training

Elder abuse prevention・physical restraint
abolition training
Accident prevention risk management training
Infectious disease・food poisoning prevention
training, etc.

1,571

Total

External employee training(Entrusted)

21,039Fundamentals of mechanical maintenanceFundamentals of manufacturing equipment
Hazard simulation education, etc.

187

Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

27

The results of last fiscal year's training toward the practice of human capital management are
shown in the table on the slide. In the last fiscal year, the number of engineers trained andassigned to client companies was extremely sluggish, particularly in the semiconductor field, so
the total number of training participants in FY 3/2024 did not increase. However, as long as wetake into account the needs of our clients and move forward, this training must be activated thisfiscal year.
In addition, with regard to external employee training (entrusted), we have begun to provide
entrusted training for new employees of major manufacturers, as well as employees of existing
manufacturers.
This service supports a part of the so-called human resources function, for example, where amajor semiconductor manufacturer replaces it because it is too busy to provide the training
themselves.
We believe that this entrustment will be beneficial to us by carefully digging deeper into thequestion of "How to develop the human resources development curriculum that our clients arelooking for“. Going forward, we aim to further expand our business by closely co-creating with ourclients to understand "What kind of human resources they are looking for, and what kind of
curriculum is necessary?" to achieve this.
As a result, we believe that this external employee training will become a viable business in the
future, and would also like to utilize the expertise we have gained here for the development of
human resources in our company.

27

Toward the Practice of Human Capital Management
Expanding training facilities and promoting industry-government-academia collaboration
for the development of high value-added human resources
Nagano Prefectural Governor
Accredited Vocational
Training School

Tomakomai Training Center

Hokkaido Semiconductor
Human Resources Development
Promotion Council(Tomakomai City, Hokkaido)

Nisso Technical Center Naka-Nihon(Okaya City, Nagano)Participation from August 2023

Shiga Prefectural Governor
Accredited Vocational
Training School

Tohoku Semiconductor andElectronics Design Study Group

Nisso EV Technical Center KansaiParticipation from November 2022

(Omihachiman City, Shiga)※Opened on March 25

Kansai Storage Battery
Human Resources
Development Consortium

Miyagi Prefectural Governor
Accredited Vocational
Training School

Nisso Technical Center Higashi-Nihon

Participation from November 2023

(Kurihara City, Miyagi)

Nisso Technical Center Kyushu(Buzen City, Fukuoka)

Ota Training Center

Kyushu Semiconductor
Human Resources
Development Consortium(Ota City, Gunma)

Participation from April 2023

Kumamoto Prefectural Governor
Accredited Vocational
Training School

Nisso Technical Center Kumamoto(Ozu-machi, Kumamoto)※ Scheduled for expansion in late May

Chugoku Regional
Semiconductor
Industry Promotion
Council
Participation from November 2022

Nisso Techno Center(Yokohama, Kanagawa)Toyota Training Center(Toyota City, Aichi)

Hamamatsu Training Center(Hamamatsu City, Shizuoka)

Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

28This slide depicts the expansion of our training facilities as part of the practice of human capitalmanagement. As a new topic, we have started our participation in the "Kansai Storage Battery
Human Resources Development Consortium" from November 2023, and will work together with
the Kansai (Kinki) Bureau of Economy, Trade and Industry to create a human resources
development system for EVs. In March, we opened the Nisso EV Technical Center Kansai in
Omihachiman City, Shiga, a training facility for developing equipment engineers for batteries.
In addition, we would like to further expand our training facilities sequentially to differentiate
ourselves from other companies, while gaining a better understanding of what kind of humanresources are needed in each field in each area, through the "Hokkaido Semiconductor Human
Resources Development Promotion Council" and other councils.

28

【ACTION】 "Expansion" of Nisso Technical Center Kumamoto
Environment surrounding the
Kumamoto training facility
Saga Prefecture
・Silicon wafers
・Silicon single crystal wafers
・Fine ceramic parts, etc.

Fukuoka Prefecture
・Power devices
・Power modules
・System LSI, image sensors
・SiC power devices, etc.

Nisso Technical Center
Kumamoto

Oita Prefecture
Nagasaki Prefecture
・MOS IC, CMOS image sensors
・High-purity silicon wafers

・Logic LSI・Industrial MOS IC, LSI
assembly

Miyazaki Prefecture
Kumamoto Prefecture
・Semiconductor contract
manufacturing
・System LSI・CMOS image sensors
・Semiconductor manufacturing
equipment
・CMP equipment

・Hall elements
・Silicon wafers
・Communication LSI・SiC power semiconductors
SiC wafers

To meet growing human resources needs

Nisso Technical Center Kumamoto to be expanded in May

Providing "reskilling" opportunities for human resources
working in other industries and occupations

Promoting career shifts to the semiconductor industry



Responding to the human resources development needs of
not only our own employees but also employees ofmanufacturers (Education and training entrustment services)

Kagoshima Prefecture
・Semiconductor components
・Liquid crystal color filters
・Semiconductor manufacturing
equipment
・Multilayer ceramic capacitors



Working with the public and private sectors to develop humanresources capable of the mass-production of semiconductors

Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

29

As I mentioned earlier, we opened the "Nisso Technical Center Kumamoto" in April 2023. We areconducting training with actual equipment, and in May 2024, we will open the "Nisso TechnicalCenter Kumamoto No. 2", which will double our training capacity.
As to why there is such a heavy emphasis in this Kumamoto area, for example, there is JASM, a
subsidiary of TSMC. As you can see from the "Environment surrounding the Kumamoto training
facility" slide, Kyushu is becoming an area where various semiconductor supply chains areconcentrated.
Originally, although we built a base for the development of human resources in the Kumamotoarea, due to the strong demand from the surrounding areas, we decided to prepare a second
facility with three times the training capacity in the central Kumamoto area.
We have expanded the training facility to accommodate around 300 training participants,
compared to the previous capacity of about 100 per year, in order to meet client needs and assist
them with reskilling. In addition, we would like to promote industry-government-academia
collaboration, by providing basic education to those who have been active in fields other thansemiconductors and assigning them to positions that will enable them flourish in thesemiconductor field.

29

【ACTION】 Development of Education and Training Entrustment Services
Challenges faced bymanufacturers

Strengths of
the Nisso Group

Difficulties in both recruitment andhuman resources development due tochanges in the market and workplaceenvironmentDevelopment of training programs・
OJT that can respond to diversification

Shortage of human resources in thesciences

Human resources in the humanities
and experience in other industries ・Training of inexperienced
manufacturing personnel

Shortage of human resources・
instructors who can educate

Training programs forpeople from manydifferent industries
and those with noexperience

Entrusted needs《Value Co-creation》
Service provision

Training facilities
equipped with actual
equipment

Customized training programs
that leverage our strengths tomeet the needs of our clients

Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

Diverse team of
instructors fromvarious companies

30

Now, let me talk about the development of our education and training entrustment services,which I briefly mentioned earlier. The so-called Off-JT (off-the-job training) is a training programthat can respond to the diversification of human resources, which is a problem that personnel
departments at manufacturers are struggling with. Major manufacturers face the challenge of alack of established Off-JT programs and/or the inability to effectively integrate OJT (on-the-job
training) with Off-JT.
Although companies want to recruit and develop many STEM (science, technology, engineering,or mathematics) graduates, there is a limited amount STEM universities and graduates in Japan,
which creates the need to develop human resources in the humanities and experience in otherindustries. In addition, companies are often too busy to allocate their experienced staff to training,posing a further challenge.
In response to these current issues, we will provide services that accurately meet the needs ofour clients while leveraging the strengths of the expertise that we have accumulated thus far.
This will not only increase the level of client satisfaction, but our education and training will serve
as one of the major points of differentiation, and we see this as a business model with thepotential to drive future growth.

30

【ACTION】 Aiming to be a Trusted Partner
Management・Operation

To be the partner ofchoice and trust

Stakeholders

Employees

Business Partners

Education・Development

・Compliance education
・Personal information education
・CSR education
・Human rights education
・Information security education
・BCP education
・Re-skilling education

Community・Society《Value Co-creation》

Assignment

Recruitment

Shareholders
・Investors

Clients

・Business manager education
・Interview upskilling training
・Complaint prevention training

As a corporate group with strengths in human resources development, we will implement educational programs tomaintain governance and continue our efforts to earn the trust of our stakeholders.
31
Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

Our philosophy is "To become a company that is chosen and trusted by our partners".
In order to be recognized by our clients as "dependable" and "trustworthy", the most important
thing is for our employees and staff to choose NISSO and "feel motivated to thrive within NISSO".
In order to achieve this, it will be necessary to further enhance the necessary education systems
and to assign employees to workplaces that provide an environment in which they candemonstrate their abilities.
Furthermore, in recent years, manufacturers who use human resources companies are also very
concerned about the issue of whether or not their compliance levels are adequate. As laws
continue to change, they are particularly conscious about whether or not we can effectively
respond to compliance challenges.
Therefore, it is crucial for us to not only develop skills for compliance measures, but also tocontinuously enhance the skills of our front-line staff. We would like to emphasize this point as wemove forward.
As a result, we firmly believe that these efforts will significantly contribute to the local community
and to our shareholders through the expansion of our business performance.

31

４

Nisso Group Topics

Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

3232Topics
2023｜Oct.
 Established Exhibited at Kumamoto
Industrial RevitalizationExpo Co-sponsored the “JAPAN MOBILITY SHOW 2023”

2024｜Jan.
 Exhibited at Manufacturing World Japan(Osaka) Approved TCFD recommendations

Dec.

■ 2024.05.9

Jan.

2024｜Aug.

To announce the Financial
Results for FY 3/2024(NISSO HOLDINGS) Opened Nisso EV
Technical Center Kansai Decided to invest in
APB CorporationNov.

2024｜May Made EYE’S Co., Ltd.
a consolidated
subsidiary2023｜Dec.

Oct.

2024｜Apr.

2024｜Feb.

 Planned expansion of
Nisso Technical Center Kumamoto■ 2024.08.07

To announce the Financial
Results for the First
Quarter of FY 3/2025(Scheduled)(NISSO HOLDINGS)

Feb.

■ 2023.11.07
Announced the Financial Results for the First
Six Months of FY 3/2024 for delisted
subsidiary (NISSO CORPORATION)
 Began participation in the Kansai Storage
Battery Human Resources Development
Consortium Published the Sustainability Report

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

■ 2024.02.06
Announced the Financial
Results for the First Nine
Months of FY 3/2024(NISSO HOLDINGS)

2024｜Mar.

2024｜Jun.

2024｜Jul.

2024｜Sep.

2023｜Nov.
Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

33

Here are the latest topics from the Nisso Group. We have updated some details since theestablishment of the holding company in October 2023.
Our policy is to enhance our growth potential in line with our intentions to establish the holding
company. We will actively promote measures such as inviting new partners to participate andinvesting in training systems.

33

Topics"EYE'S Co., Ltd."
joins the Nisso Group"Nisso EV Technical Center Kansai"
opens

・EYE'S will provide business process solutions, its fieldof expertise, to the client base of the Nisso Group.

・NISSO CORPORATION opened the "Nisso EV Technical Center
Kansai" on March 25, 2024.

・We will expand our services by integrating the IT engineering
services of EYE'S with the engineering area of the Nisso Group.

・Established as a core training base for developing storage
battery human resources in the Kansai region.

・EYE'S is currently developing a service called "FREE AID" thatmatches freelance mechanical and electrical engineers withprojects and tasks that require their skills.

・Participated in the "Kansai Storage Battery Human Resources
Development Consortium" established by the Kansai (Kinki)
Bureau of Economy, Trade and Industry and strengthened
cooperation.

Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

34

In such a situation, as I explained earlier, EYE’S Co., Ltd. has joined our group, becoming our new
partner.
In addition, another major topic is the opening of the "Nisso EV Technical Center Kansai" in March
2024.

34

５

Future Prospects (FY 3/2025)

Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

35

35

FY 3/2025 Full-year Consolidated Forecasts
In the full-year consolidated (earnings) forecast, in our core General Human Resources Services Business, we expect
revenue and profits to increase, based on the assumption that in addition to the recovery of operations in automobiles, thesemiconductor memory field, etc., will remain strong, and demand for components related to PCs and communications
equipment will also recover.
● FY 3/2025 Full-year Consolidated Forecast (April 1, 2024 ～ March 31, 2025)
FY 3/24 Results
Results(Unit: Million yen)

FY 3/25 Forecast% of Total

Forecast

Year-on-Year% of Total

Increase(Decrease)% Change

96,858100.0%

106,000

100.0%

9,141

9.4%

Operating profit

3,058

3.2%

3,800

3.6%

741

24.3%

Ordinary profit

3,056

3.2%

3,800

3.6%

743

24.3%

Profit attributable toowners of parent

1,952

2.0%

2,400

2.3%

447

22.9%

Net sales

Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

36

Now, I would like to talk about out future prospects, taking into account the situation in theprevious fiscal year. Our full-year consolidated forecasts for FY 3/2025 project net sales of 106
billion yen and operating profit of 3.8 billion yen.
Although we saw an exit from the COVID-19 pandemic last fiscal year, the recovery in the
Semiconductor and Electronics Industries was very slow. At the same time, the Automotive
Industry, which was originally expected to experience considerable growth, also faced significant
difficulties.
Although our original goal was to have over 2,000 engineers by the end of last fiscal year, since
we were unable to even assign new graduate employees, the numbers have actually slightly
decreased. Therefore, one of our goals for this fiscal year is to continue to make investments
while steadily increasing the speed of development of our staff.
In particular, this fiscal year, we would will actively invest in creating a consortium and platform
for recruitment, as well as further promoting the content of education and re-creating it into
something more substantial and supported by our clients.
Due to the impact of the COVID-19 pandemic, the some of the things we originally wanted to dohave been delayed, and investments that have been delayed have been pushed back into thisfiscal year. Although we are considerably behind the profitability of our current Medium-termManagement Plan, in order to make up for this lag, we will make steady efforts this fiscal yearwith an eye to the future.

36

NISSO Sustainable Growth for the Future"New Medium-term Management Plan" to be announced
We will accelerate growth investments and strive to enhance corporate value while working to resolve social issues
in the area of human resources.

Next-generation Growth Stage

1,500

Towards Value Co-creation

100

Development model X Co-creation = Strengthening our earning power through the diversification of our business portfolioCreating human resources together: Human resources development such as enhancing career and skills
Creating business together: Recruiting and placing the right people to the right jobs according to client needs
Creating solutions together: Responding to diverse work-styles and changes in MONOZUKURI (manufacturing)

75

Cons. Net Sales (Forecast)

106.0B

Cons. Net Sales (Results)

96.8B

1,000 Unit: Billion yen

50

ComingSoon

Cons. Operating Profit (Forecast)

3.8B（3.6％）

25

Cons. Operating Profit (Results)

3.0B（3.2%）

5000FY 3/23

FY 3/24

Results

FY 3/25

FY 3/26

FY 3/27

FY 3/28

FY 3/29

New Medium-term Management Plan
Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

37

Let me explain our new Medium-term Management Plan. As shown on the slide, over the next 5
years starting from the current fiscal year, we are implementing various measures to realize an
ideal Nisso Group that will have achieved sales growth and greatly improved profitability throughlarge-scale projects by FY 3/2028.
From this fiscal year, next fiscal year, and the third fiscal year, around FY 3/2027, we would liketo ensure that we can achieve significant results in FY 3/2028, while continuing to makeinvestments and increasing our profits at an accelerated pace as we continue to generate theeffects of our investments.
We hope to explain our specific plans to you relatively early in the current fiscal year.

37

６

Shareholder Return Policy

Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

38

38

Shareholder Return Policy
Basic Policy
NISSO HOLDINGS considers the redistribution of
profits to shareholders and the enhancement ofcorporate value as key management issues. In
addition, by setting the consolidated dividend
payout ratio of 30% or more as a general standard,
NISSO HOLDINGS’ basic policy is to continue to
steadily redistribute profits to all of ourshareholders.

Dividend and Payout Ratio(Unit: %)(Unit: Yen)
25.00

Dividend (left axis)

Payout ratio (right axis)

20.50 yen
20.00

FY 3/2024 Expected Dividend

100%

22.00 yen80%

18.00 yen
16.00 yen

NISSO HOLDINGS expects to pay a dividend of
20.50 yen per share (consolidated dividend payout
ratio of 35.4%).

90%

70%

15.00

60%
50%

10.00

36.0%

33.5%

35.4％

30.0％

40%
30%

FY 3/2025 Dividend Forecast

5.00

NISSO HOLDINGS expects to pay a dividend of
22.00 yen per share (consolidated dividend payout
ratio of 30.0%).

20%
10%

0.00

FY 3/2022

FY 3/2023

FY 3/2024(Expected)

FY 3/2025(Forecast)0%※Until FY 3/2023, the ﬁgures for NISSO CORPORATION before the holding company structure are presented.

Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

39

Let me explain our shareholder return policy. Although it is not significantly different from ourprevious approach, we believe that the redistribution of profits to shareholders is a very important
issue for companies.
You may still criticize us by saying, "You still have a consolidated dividend payout ratio of 30%".
However, for the time being, we have determined that we still need to make investments in our
growth strategy. While we are making these investments, we would like to proceed with thedividend payout ratio of 30% as a standard. For this fiscal year, we expect to pay a dividend of 22
yen per share, corresponding to a payout ratio of 30% of our profit plan.
Regarding our financial situation, we are planning to implement a new approach to finance fromthis year. CFO Hayakawa will provide further details from here.

39

７

Financial Condition (FY 3/2024)

Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved4040Capital Profitability・Capital Structure (FY 3/2024)
Financial indicators related to management are as follows:
Classification

Capital profitability

Capital structure

KPI

FY 3/24 Results

Indicator Purpose

Operating profit margin

3.2%

ROE

13.2%

ROIC

11.6%

Financial leverage

2.1

Profitability・
efficiency management

Financial soundness

NISSO HOLDINGS will closely monitor our own cost of capital (cost of equity and weighted average cost of capital (WACC)) andwill strive to pursue earning power and improve capital efficiency by using return on equity (ROE) and return on invested capital(ROIC) as key management indicators. In addition, we will strive to enhance corporate value by realizing a structure in which
ROIC exceeds the cost of capital (weighted average cost of capital (WACC)) in a stable manner.
Moreover, in FY 3/2024, ROIC exceeded the cost of capital (weighted average cost of capital (WACC)).
Copyright ⓒ 2024 NISSO HOLDINGS Co., Ltd. All Rights Reserved

41

Mr. Naoki Hayakawa (hereinafter, “Hayakawa”): I am Naoki Hayakawa, Managing Director
and CFO. I will explain our financial condition. The capital profitability, capital structure, andresults at the end of the previous fiscal year are as shown on this slide.
Operating profit margin, ROE, and financial leverage are the three items that we have announced
as KPIs (key performance indicators) in our past Medium-term Management Plans. The results forthe previous fiscal year were an operating profit margin of 3.2%, ROE of 13.2%, and financial
leverage of 2.1 times.
First of all, although there is still a gap between the operating profit margin and the figures set
forth in the Medium-term Management Plan, we would like to increase it to 3.6% this fiscal year.
We also intend to improve ROE in line with our profit growth.
Regarding financial leverage, as Shimizu mentioned earlier, we have started proactive
investments in human resources development since last fiscal year. Although the leverage figure
has been rising, it has not yet reached the figure we have set forth. Here, too, we intend toachieve our target while fully considering financial discipline.
We have also begun to address the issue of capital cost management, which was also raised in
the Corporate Governance Code, which has been under discussion since the previous fiscal year.
What we have included in our Corporate Governance Report is as shown in the slide. “NISSOHOLDINGS will closely monitor our own cost of capital (cost of equity and weighted average costof capital (WACC)) and will strive to pursue earning power and improve capital efficiency by using
return on equity (ROE) and return on invested capital (ROIC) as key management indicators. In
addition, we will strive to enhance corporate value by realizing a structure in which ROIC exceeds
the cost of capital (weighted average cost of capital (WACC)) in a stable manner.”
For the previous fiscal year, ROIC was 11.6%. Therefore, ROIC ended up exceeding the internal
WACC.

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Consolidated Balance Sheet
Mar. ‘23-end
AmountMar. ‘24-end% of Total

Amount(Unit: Million yen, ％)% of Total

Increase(Decrease)

21,74772.3

21,899

69.8

151

9,800

32.6

9,641

30.7

(159)

10,98636.5

11,238

35.8

252

8,344

27.7

9,455

30.2

1,110

Property, plant and equipment

4,660

15.5

5,072

16.2

411

Intangible assets

1,514

5.0

1,611

5.1

96

Current assets
Cash and deposits
Notes and accounts receivable - tradeNon-current assets②Repayments
As a result of contractual repayment of loans
602 payable, "long-term loans payable" of non-current
liabilities decreased.

2,169

7.2

2,771

8.8

Total assets

30,092100.0

31,354

100.0

1,261

Current liabilities

12,18740.5

13,360

42.6

1,172

Accrued expenses

6,119

20.3

6,553

20.9

434

Income taxes payable

555

1.8

795

2.5

Provision for bonuses

1,395

4.6

1,479

4.7

Non-current liabilities

3,097

10.3

2,660

8.5

2,019

6.7

1,550

4.9

Total liabilities

15,28450.8

16,021

51.1

Shareholders' equity

14,563

48.4

14,939

47.6

239

0.8

275

0.9

Total net assets

14,80749.2

15,333

48.9

Total liabilities and net assets

30,092 Copyright
100.0
31,354100.0
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Investments and other assets

Long-term loans payableNon-controlling interests

Point①Increase due to expansion of the number ofstaff in operation
Due to the expansion of the number of staff inoperation in the manufacturing-related humanresources services, "notes and accounts receivable(trade)" of current assets and "accrued expenses"
of current liabilities increased.

③Business combination
Assets and liabilities increased due to an increase
240 in the number of consolidated subsidiaries
associated with the acquisition of shares.

83

(436)

(468) ④Overall

As a result of the above, total assets increased

736 by 4.2%, total liabilities increased by 4.8%, and375 total net assets increased by 3.4% compared to theend of the previous fiscal year, resulting in an equity

35 ratio of 48.0%.
52542Here is our consolidated balance sheet. The key points are as described on the right side of theslide. Due to the expansion of the number of staff in operation in the manufacturing humanresources services, accounts receivable (trade) and accrued expenses of current liabilities haveincreased. As for loans payable, due to progress in contractual repayments, long-term loans
payable have decreased.
In addition, as President Shimizu mentioned at the beginning, the addition of EYE’S Co., Ltd. to
our group has resulted in respective increases in assets and liabilities.
As a result, total assets increased by 4.2%, total liabilities increased by 4.8%, and total net assets
increased by 3.4%, resulting in an equity ratio of 48%.

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Consolidated Statements of Cash Flows

CF from operating activities(Unit: Million yen)

FY 3/23

FY 3/24

AmountAmount

2,285

3,230

Point
Increase(Decrease)944

CF from investing activities(146)(1,289)(1,142)

CF from financing activities(1,112)(2,100)(987)

Net increase (decrease) in cash andcash equivalents

1,026

(159)

(1,185)

Cash and cash equivalents at
beginning of period

8,773

9,800

1,026

Cash and cash equivalents at end of
period

9,800

9,641

(159)

①Cash flows from operating activities

Proceeds from profit before income taxes
amounted to 3,056 million yen, absorbing
expenditures such as income taxes paid of 865
million yen, resulting in proceeds of 3,230
million yen.

②Cash flows from investing activities

Expenditures for the purchase of securities
amounted to 300 million yen, while
expenditures for the purchase of property,
plant and equipment amounted to 650 million
yen, resulting in expenditures of 1,289 million
yen.

③Cash flows from financing activities

Expenditures for the purchase of treasury
shares amounted to 1,062 million yen, andcash dividends paid of 544 million yen resulted
in expenditures of 2,100 million yen.

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43

Consolidated cash flows are as explained earlier. Notably, cash flows from investing activities
include APB Corporation, with which we concluded a business and capital alliance in the previous
fiscal year. We are also actively promoting the Technical Center in Kumamoto as part of ourinvestment.
Regarding the financial activities of Point③, last fiscal year, since we transitioned to a holding
company structure and amortized our existing treasury shares, we repurchased our own shares inthe second half of the previous fiscal year. These activities are reflected in the cash flows.
[END]

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８

Glossary

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44

44

Glossary (Repost)
Word/Term

Explanation

Manufacturing dispatching

Manufacturing dispatching is conducted in accordance with the "Act for Securing the Proper Operation of Worker Dispatching
Undertakings and Protection of Dispatched Workers“, and dispatching services are provided to manufacturers including automobiles
manufacturing, semiconductor manufacturing, and electronic equipment manufacturing. The right to instruct and order the work lies
with the manufacturer, which is the dispatching destination, and the employer is the dispatching company. Procedures related to labor
management, such as recruitment and payroll, are carried out by the employer, the dispatching company.

Manufacturing contracting

Manufacturing contracting provides services to manufacturers including automobiles manufacturing, semiconductor manufacturing,and electronic equipment manufacturing. The contracting company uses part or all of the manufacturer's processes・equipment toestablish production, quality control, labor management, and workplace management systems. In response to orders from the ordering
party (manufacturers), the contracting company conducts manufacturing, processing and inspections under a management system,and delivers the finished products (deliverables) to the ordering party upon completion.

Human Resources Development Model

A model for developing high value-added human resources. By developing human resources using the Nisso Group's unique advanced
Off-JT, we provide our clients with human resources who can quickly acquire skills and establish themselves after being assigned to aworkplace.

Industry Strategy

A strategy for proactively and speedily responding to the needs of each industry that the Nisso Group focuses on, in order to expand
our General Human Resources Services business.

Turnover rate

The cumulative (YTD) number of resignations divided by the total average number of enrolled staff each month. It represents theaverage withdrawal rate for the relevant period.

Nisso Technical Centers

Large-scale education and training facilities that educate highly specialized technical staff in various industries such as automobiles,
electricity, and semiconductors. The Technical Centers provide a wider range of education than the Training Centers, and can also
provide contracted training services.

Nisso Training Centers

Education and training facilities that provide specialized skills education for specific industries. Education and training are provided on
the premise of assignment to specific manufacturers.
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45

Making hardworking people, happy.

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

〈For future IR-related inquiries〉

IR Division, NISSO HOLDINGS Co., Ltd.
TEL

045-777-7630

E-mailir@nisso-ir.com

URL

https://www.nisso-hd.com

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