First Six Months of FY 3/2022

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

人を育て 人を活かす

NISSO CORPORATIONTSE 1 Code: 6569

November 11, 2021

Summary
FY 3/2022 2Q Results●In the automobiles-related industry, operations decreased due to the shortage ofsemiconductors and parts, and compensation expenses for staff were incurred●Increased personnel for automobiles-related industry to prepare for recovery of
production in the future●Strong demand for semiconductors●Revenue and profits increased year-on-year●Started business synergy activities with subsidiary Vector Shinwa（Aim to expand business by leveraging the strengths of both sales, recruitment, and education）
Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

1CONTENTS

1

First Six Months of FY 3/2022

Financial Results Summary

2First Six Months of FY 3/2022

Overview of Activities

3

Financial Results by Target Segment

4

Future Prospects (FY 3/2022）

5

Shareholder Return Policy

6

Supplementary Materials

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved2１First Six Months of FY 3/2022 (2Q)

Financial Results Summary

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved3

FY 3/2022 2Q Consolidated Financial Results Highlights
Points（Unit: Million yen）

• Revenue and profits increased due to anincrease in enrollment.

FY 3/2021 2Q• In the automobiles industry, non-operatingdays occurred due to semiconductor
shortages and insufficient parts supply as aresult of the effects of COVID-19.
Indemnificationcompensationfor
manufacturing staff was generated, andgross profit margin declined

Net sales

Results% of Total

FY 3/2022 2Q
Results% of Total

Year-on-Year
Increase(Decrease)% Change

32,972100.0%

36,694100.0%

3,721

11.3%

Gross profit

5,093

15.4%

6,035

16.4%

942

18.5%

• In the automobiles-related industry, thenumber of staff increased in preparation for
future recovery production.

SG&A
expenses

4,361

13.2%

5,211

14.2%

849

19.5%

• In Other Businesses, revenue and profits
increased due to the stable number ofresidents.

Operatingprofit

731

2.2%

824

2.2%

93

12.7%

Ordinary
profit

989

3.0%

908

2.5%

(80)

(8.2%)

Profitattributableto owners ofparent

596

1.8%

587

1.6%

(9)

(1.6%)

Subsidy income• FY 3/2021 2Q: 274 Million yen• FY 3/2022 2Q: 65 Million yen

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4

FY 3/2022 Quarterly Consolidated Financial Results（Unit: Million yen）

（Unit: Million yen）

Net sales
20,000Operating profit

19,24818,814 18,920

1400

18,045 18,649

17,98318,0001,165
1200

17,771
17,470947

1000

16,557 16,414
16,000

920

767

800

650
600

14,000

525

477

470

354

1Q

2Q

400
12,000

206

200

0

10,000

１Q

２Q

３Q【FY 3/20】

４Q

1Q

2Q
3Q
4Q
【FY 3/21】

1Q

2Q【FY 3/22】

１Q

２Q

３Q

【FY 3/20】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

４Q

1Q

2Q

3Q

【FY 3/21】

4Q【FY 3/22】

5

FY 3/2022 2Q Non-consolidated Financial Results Highlights
Net sales（Unit: Million yen）

• Net sales increased by 12.7% partly due toan increase in the number of enrolled staff.

FY 3/2021 2Q

FY 3/2022 2Q• In the automobiles-related industry,
operations (number of working days,
overtime hours, holiday work, etc.)
decreased due to shortages in the supply ofsemiconductors and parts as a result of theeffects of COVID-19, which affected net sales
growth.

Results

Results

Expenses・Profits• In the automobiles-related industry,
indemnification compensation for
manufacturing staff was incurred due to adecrease in operations.
• Investment in recruitment will continue in
preparation for future recovery production.

% of Total% of Total

Year-on-Year
Increase(Decrease)% Change

30,155100.0%

33,981100.0%

3,825

12.7%

Gross profit

4,839

16.0%

5,780

17.0%

941

19.4%

SG&A
expenses

4,079

13.5%

4,917

14.5%

838

20.6%

Operatingprofit

760

2.5%

863

2.5%

102

13.5%

Ordinary
profit

977

3.2%

888

2.6%

(89)

(9.1%)

Profit

605

2.0%

571

1.7%

(34)

(5.7%)Net sales

Subsidy income• FY 3/2021 2Q: 231 Million yen• FY 3/2022 2Q: 17 Million yen
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6

FY 3/2022 Quarterly Non-consolidated Financial Results（Unit: Million yen）

（Unit: Million yen）

Operating profit

Net sales
17,775
17,389 17,478

18,0001400

16,684

16,566
16,036

1200

16,357

16,00015,153

1,204

17,296958

1000

15,002

903

783
800

663

14,000

555

600

482

468

380

400
12,000204200

010,000

１Q

２Q

３Q【FY 3/20】

４Q

1Q

2Q

3Q

4Q

【FY 3/21】

1Q

2Q【FY 3/22】

１Q

２Q

３Q

【FY 3/20】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

４Q

1Q

2Q

3Q

【FY 3/21】

4Q

1Q

2Q

【FY 3/22】

7

2First Six Months of FY 3/2022 (2Q)

Overview of Activities

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

8

FY 3/2022 2Q Financial Results Summary
Consolidated Financial Results

Net Sales
36,694 Million yen （3,721 Million yen／11.3% YoY）
Operating Profit
824 Million yen （ 93 Million yen／12.7% YoY）
・In the automobiles-related industry, net sales increased by 18.0% YoY. Due to a shortage ofsemiconductors, mainly at auto-body manufacturers, and a shortage of parts supply due tothe impact of lockdowns in Southeast Asia, although operations decreased, the number ofstaff increased in order to recover production.
・In the electronic devices-related industry, net sales increased by 15.3% YoY. In addition to therobust semiconductor production, the production of electronic components also increased.

● Net Sales by Industry (YoY)

Automobiles… ＋18.0%

Electronic devices … ＋15.3%● 2Q-end Number of Enrolled Staff

14,225 staff（＋1,079 staff from FY 3/21-end）● Net Sales per Capita/Monthly

406 Thousand yen（+33 Thousand yen YoY）

・The number of enrolled staff increased by 1,079 compared to FY 3/21-end. In the future, in
addition to the automobiles industry, which is expected to recover, the number of staff will
increase with the electronic devices industry, mainly in semiconductors.

・Net sales per capita increased by 33 thousand yen YoY, partly due to the increase in billing
unit-costs.
・In the automobiles-related industry, operations (number of working days, overtime hours,
holiday work, etc.) decreased due to shortages in the supply of semiconductor and parts,
which affected the growth of net sales per capita.
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9

FY 3/2022 2Q Net Sales by Industry (NISSO, Non-consolidated)（Unit: Million yen）

Net Sales Composition Ratios
Other

Precision・Elec. Machinery

4,633（15.4％）

4,008

Elec. Devices

Automobiles（13.9％）+2.7％（12.1％）

4,115（13.3％）

9,094

Net sales increased by 2.7% YoY, partly due to a gradual
recovery in office demand. However, it has not reached afull-scale recovery.

4,742

+2.4％

+15.3％【Precision・Electrical Machinery】

10,486（30.8％）（30.2％）【Electronic Devices】
Net sales increased by 15.3% YoY. The semiconductor
industry continued to perform well. Due to the increase inproduction of electronic components, net sales in 2Q
reached a record high since NISSO's listing.

【Automobiles】
12,417（41.2％）

FY 3/21 2Q※（+18.0％

14,652（43.1％）

FY 3/22 2Q）= % of Total net sales, Red = % of Year-on-Year growth

Net sales increased by 18.0% YoY. Although net sales
increased due to an increase in the number of enrolled
staff, operations (number of working days, overtime
hours, holiday work, etc.), mainly at auto-bodymanufacturers decreased as a result of shortages inthe supply of semiconductors and parts due to theimpact of lockdowns in Southeast Asia.

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

10

FY 3/2022 Quarterly Net Sales by Industry (NISSO, Non-consolidated)

Automobiles

2,631（15.9％）

2,371（14.3％）

4,057（24.5％）

Elec. Devices

Precision・Elec. Machinery

2,680

2,774

（15.4％）

2,317（15.9％）

2,190（13.3％）（12.5％）

4,633

4,487

（26.6％）（25.7％）

2,563（14.4％）

2,182（12.3％）

4,650

7,757

（45.3％）（44.6％）

１Q

2Q

8,026

（45.9％）【FY 3/20】
※（

1,973

2,047

（12.0％）

5,366（15.0％）

1,942

2,113

1,895

（12.1％）（12.1％）（12.3％）

4,537

4,774

5,119

（13.9％）

4,413（28.3％）（29.2％）（30.7％）（31.0％）

7,268

7,418

（45.4％）

7,216

7,436

（43.2％）（43.0％）

4Q

1Q

2Q

（29.4％）

5,974

6,443

（45.3％）

2Q

3Q

1Q

2,067

（12.6％）

4,680

8,378

4Q

（13.4％）（13.9％）（14.0％）（15.7％）（39.4％）

3Q

2,315

2,249

2,383

（26.2％）（47.1％）

2,287

2,426

2,190

（14.3％）（30.9％）

7,505（Unit: Million yen）

Other

（43.0％）【FY 3/21】【FY 3/22】）= % of Total net sales

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11

Net Sales per Capita（NISSO, Non-consolidated）● FY 3/2022 2Q YTD＜Overall net sales per capita＞

406 Thousand yen (+33 Thousand yen YoY)

＜Skilled staff net sales per capita＞ 464 Thousand yen (+29 Thousand yen YoY)

● Overall and skilled staff net sales per capita increased YoY. The pace of growth has slowed, partly due to an increase in billing unit-costs
and a decrease in operations in the automobiles-related industry.
（Unit: Thousand yen）

（Unit: Thousand yen）

Net Sales per Capita

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

Skilled staff
500

400

435
373

Overall 464

406
400

300

300

200

200

100

100

0

485

500

391

482
396

397

490

485

478

419

403

358

451
390

421

Overall

483
418

464
409

464
406

0

FY 3/21 2Q

FY 3/22 2Q

１Q

2Q

3Q

4Q

1Q

【FY 3/20】
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2Q

3Q【FY 3/21】

4Q

1Q

2Q

【FY 3/22】

12

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

Compared w. Previous FY-end

Number of Enrolled Staff at Quarter-end+1,079 staff (+8.2%)

Point①

15,000The number of enrolled staff increased mainly inthe automobiles and electronic devices
industries.

14,63914,282

14,638 14,770
13,856 14,225
13,146

13,243
12,524 12,692

13,00011,000

Point②
・The number of enrolled staff will continue toincrease in preparation for future recovery
production.
・The number of enrolled staff in the electronic
devices industry increased due to increased
production of electronic components inaddition to demand for semiconductors.

9,000

7,000

5,000

1Q

2Q

3Q

4Q

【FY 3/20】

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1Q

2Q

3Q

【FY 3/21】

4Q

1Q

2Q

【FY 3/22】

13

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

Number of Skilled Staff・Engineers

Point①・Engineers: 901 (+40 vs. 1Q)・Skilled staff: 5,123 (+128 vs. 1Q)

6,000

4,803

5,000

5,085

5,436
5,250 5,387 5,293 5,381

5,856

6,024
Engineers
901

861

4,501

Point②4,000

The number of engineers increased the most in
equipment technology, an area which NISSO is
focusing on.

3,000

Skilled staff
5,123

4,995

2,000

Point③
1,000

The number of skilled staff increased mainly in
automobiles manufacturers and their groupcompanies, which are accounts.

0

1Q

2Q

3Q

4Q

1Q

【FY 3/20】

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2Q

3Q【FY 3/21】

4Q

1Q

2Q

【FY 3/22】

14

Account Companies (NISSO, Non-consolidated)Account Company Groups Net Sales

Point①
Net sales of Account Company Groups in 2Q
increased by 12.4% YoY. Cumulative 2Q net
sales increased by 10.7% YoY.

（Unit: Million yen）
12,000Net sales (left axis)

47.7

48.0

50.0

47.1

47.6

47.2

45.9
10,000

Point②

8,000

44.1
7,300

44.2

43.3

7,677 7,565(Unit: %)Composition ratio (right axis)

46.8
45.0

8,152
7,225 7,201

7,874 8,091
7,551 7,780
40.0・Due to an increase in overall net sales,
although the account composition ratio
decreased YoY, net sales in 2Q reached arecord high since NISSO's listing, continuingfrom 1Q.
・Despite the impact of shortages ofsemiconductors and parts supply due to theeffects of COVID-19, net sales increased at
automobiles manufacturers and their groupcompanies, where the number of enrolled
staff increased.

6,000

35.0
4,000

30.0

2,000

0

１Q

2Q

3Q

4Q

【FY 3/20】

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1Q

2Q

3Q

【FY 3/21】

4Q

1Q

2Q

25.0

【FY 3/22】

15

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

FY 3/2022 2Q Results
Overall turnover rate

Overall (Fixed term staff・Skilled staff・Engineers)

3.7％

6

(Improvement of 0.5 pts vs. FY 3/2021)

5.5
4.9

5

Skilled staff・Engineers turnover rate

1.5％

(Improvement of 0.5 pts vs. FY 3/2021)

Point
Turnover rates improved from the previous
fiscal year. In line with the increase in thenumber of enrolled staff, the overall turnoverrate increased by 0.2 pts from 1Q, but
remained below 4%. The turnover rate ofskilled staff also increased, by 0.3 pts from
1Q, but remained below 2%.

4.6

4.7
4.2

5

4

4

3

3

1.7

2

2.0
1.5

2

1

0

0
FY 3/18

FY 3/19

FY 3/20

3.5

3.7

2.0

1

FY 3/17

Skilled staff・Engineers6

FY 3/21

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1.2

1Q

1.5

2Q

3Q

4Q

【FY 3/22】

16

Educational Achievements（NISSO, Non-consolidated）● FY 3/2022 2Q Main course-specific educational achievements
Point①(total # of participants)

As the number of enrolled staff increased, thetotal number of participants in major courses
increased by more than 1,000 YoY.

Point②The number of participants in engineer
education increased YoY due to job changes
from skilled staff to engineers.

Training course name２Ｑ
（Jul～Sep）

Contents

FY 3/21 2Q

Skilled staff education

362 Standard skilled staff education

202

Basic equipment
maintenance education

62

Basic equipment maintenanceeducation

84

79

Manufacturing equipment maintenance・
manufacturing equipment technology
Mechanical design・production technology
SEAJ education (safety education
specializing in semiconductors)

16

1,369

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

559

Engineer education

Point③NISSO expanded educational facilities forvoluntary maintenance personnel with the aimof expanding the number of engineers. In
addition to the training facilities of TC HigashiNihon and TC Naka-Nihon, it is now possible forstaff to take courses at TC Kyushu, and NISSO
plans for further expansion in the future.

(Unit: # of participants)

Manufacturing
education

Total

1,872

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861

17

3 Financial Results by Target Segment(First Six Months of FY 3/2022 (2Q))

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18

Net Sales・Operating Profit Ratio by Company
FY 3/2022 2Q
Net Sales by Company
40,00035,000FY 3/2022 2Q
Operating Profit by Company(Unit: Million yen)

33,981920※Non-consolidated operating profit ratio
is shown in ()※Non-consolidated net sales ratio
is shown in ()30,000(Unit: Million yen)

863

720

25,00020,000520

92.1%（97.7%）

15,000320

10,000

5,000

1,216

0

3.3%

0.5%

4.1%

Nisso
Brain

Nisso
Pure

Nisso
Nifty

NISSO

192

1,494

120

20

(80)
NISSO

-2

-46

2.3%

Nisso
Brain

Nisso
Pure

Nisso
Nifty

92% or more of net sales and operating profit are composed of
NISSO’s non-consolidated business results
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19

Existing Areas(Unit: # of Staff)(Unit: Million yen)

Existing Net Sales

Existing Net Sales

Net sales in 2Q alone increased by 3.3% comparedto 1Q due to an increase in the number of enrolled
staff, despite an adjustment in operations in theautomobiles-related industry.

20,000

Number of Existing Enrolled Staff at
Quarter-end（Quarterly）

14,00013,621

13,95218,00016,593
16,061
16,000Existing Enrolled Staff

12,000Although there was a decrease in automobiles
operations due to the shortages of semiconductor
and parts, the number of enrolled staff increased by
331 from 1Q in preparation for recovery production
from the second half of 3Q.

14,00010,00012,00010,000

1Q

2Q【FY 3/22】

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8,000

1Q

2Q
【FY 3/22】

20

Promotion of DX
By moving forward with DX, we will reform our business processes, corporate culture and corporate
climate to establish competitive advantages and create new services.
Full-scale operation of "HR Cross" (web-based integrated humanresources dispatching management system)"HR Cross", an integrated human resources dispatching management system developed by CrossLink Co., Ltd., has been put intofull-scale operation after a trial operation.
Features of "HR Cross“:■ A system that enables client companies to communicate with each dispatching company online■ Centralized management of all processes from recruitment, contracts, management・evaluation of dispatched staff, to billingof client companies

Implementation and operation of "apseeds Portal"
Started the implementation and operation of "apseeds Portal" as a two-way communication tool with dispatched staff.
Key features of "apseeds Portal":■ inquiries ■ image transmission ■ online salary statements ■ clear indication of employment contracts・working conditions■ browsing function of rules・regulations etc.

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

21

Engineering Area (Financial Results)
Net sales(Unit: Million yen)

Net sales in 2Q increased by 61 million yen (4.9%)
compared to 1Q, partly due to an increase in thenumber of enrolled staff.
Achieved a 62.1% progress rate in line with thetarget for the current FY.

2,000(Unit: Thousand yen)

Engineer Net Sales

Engineer Net Sales per Capita（Quarterly）（Monthly Average Conversion）
600

1,600

1,242

1,303

1,200

523

509

1Q

2Q

500

400

Net sales per capita

300
800

・Decreased by 14,000 yen compared to 1Q due
to the number of working days as a result ofsummer vacation.
・Net sales per capita of engineers were 509
thousand yen/month, which was higher thanthat of skilled staff (464 thousand yen/month).

200
400
100

0

1Q

2Q
【FY 3/22】

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0【FY 3/22】

22

Engineering Area: Number of Enrolled Engineers(Unit: %)(Unit: # of Engineers)

Number of Enrolled Engineers at
Quarter-end

Enrolled Engineers at Quarter-end
・The number of enrolled engineers increased by 40
from the end of 1Q.
・With the aim of expanding enrollment, NISSO is
utilizing the use of our own recruitment site"engineer works" specializing in engineers which
was launched in August, and promoting thereassignment of manufacturing human resources
to engineers.

Composition Ratio of
Engineer Enrollment by Industry
Equipment technology
Production technology

1,000

Design technology
Other※Other: Development, IT development, analysis, etc.
100%

901
900

861
80%

4.6%

4.6%

14.2%

11.7%

4.4%

5.4%

76.8%

78.4%

1Q

2Q

800
60%

700

Engineer Industry Classification

40%

Among engineer enrollment by industry, the highest
number of engineers are engaged in equipment
technology. NISSO will continue to focus on
expanding this field, which has a high affinity withthe manufacturing field.

600

20%

500

0%

1Q

2Q
【FY 3/22】

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23

AI Solution Services
Full-scale launch of AI Solution Services with the aim of solving problems faced by manufacturers.
Utilization of AI to solve problems

NISSO has launched a solution service that utilizes AI with the aim of solving problems such as operational efficiency and laborsaving.
For the introduction of AI, NISSO provides consulting, creation of AI models to solve problems, software development toimplement AI models, and implementation.
NISSO will continue to expand our services in collaboration with Cross Compass, our capital alliance partner.

Flow of AI solution introduction
Data preparation
Flow of AI
introduction

Tasksetting

Data collection・
data preprocessing

AnalysisModelcreation

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Evaluation

Operation・
deployment

Implementation

24

Turnover Rates (Existing・Engineering Areas)(Unit: %)Trend of Turnover Rates

FY 3/2022 2Q Results

Existing (Fixed term staff・Skilled staff)
Engineers

Existing area (non-consolidated) turnover rate

3.8％

6

(Increase of 0.1 pts vs. FY 3/2022 1Q)
5Engineering area (non-consolidated) turnover rate

1.7％

4

(Increase of 0.3 pts vs. FY 3/2022 1Q)

3.7

3.8

3

2

Point

1.4

1.7

1

Compared to 1Q, the existing turnover rate increased by
0.1 pts as the number of enrolled staff increased, but
remained below 4%. Although the turnover rate ofengineers also increased, by 0.3 pts from 1Q, it remained
below 2.0%.

0

1Q

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2Q

3Q

4Q

【FY 3/22】

25

New Business Areas
Started annotation business in collaboration with "TASUKI" project
NISSO started the annotation business in collaboration with the "TASUKI" project operated by SB Innoventure Corp.
(Head office: Minato-ku, Tokyo; Representative Director: Fumihiro Aono).

Collaboration between "TASUKI" and "NISSO"
Data processing request

Provision of system forhuman resources evaluation
and work efficiency

AIdevelopment
company

NISSO
High-quality data
creationFull-time high-skilled
annotator

What is the "TASUKI" Project?
①Annotation agency service created from the in-house entrepreneur system based on the abundant AI development experienceof SoftBank Corp.
②"TASUKI" is an annotation platform that has built a mechanism to create efficient and high-quality using AI technology

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved26

Other Businesses Business Revenue
Points●Results of Other Businesses• The number of residents of Bldgs. 1~5 and6, which are nursing care facilities, wasstable, with an overall occupancy rate of95%.
• Efficient management was maintained, with
an operating profit of 20 million yen.

FY 3/21 2Q
Results（Unit: Million yen）

FY 3/22 2Q% of Total

Results

Year-on-Year% of Total

Increase(Decrease)% Change

Net sales

1,461

100.0%

1,494

100.0%

32

2.2%

Expenses

1,500

102.7%

1,473

98.6%

(27)

(1.8%)(39)(2.7%)

20

1.4%

59

ー

Operatingprofit (loss)(Unit: # of residents)

Number of facility residents【All facilities】(capacity: 402)
400

382

382

381

375

382
300

298

292

294

200

95.0%

94.8%

93.3%

95.0%

200

100

100

0

0
Sep'20-end

Dec'20-end

Mar'21-end

Jun'21-end

Sep'21-end

96.8%

94.8%

95.5% 92.9%

286

Occupancy
入居率
rate[Bldg.6] (capacity:94)[Bldg.1-5] (capacity:308)

300

95.0%

# of
入居者数
residents

295
95.8%

84

90

87

89

87

95.7%

92.6%

94.7%

92.6%

Dec'20-end

Mar'21-end

Jun'21-end

Sep'21-end

80
60
90%
89.4%
40
20
0

Sep'20-end

Dec'20-end

Mar'21-end

Jun'21-end

Sep'21-end

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

40% Sep'20-end

27

Summary (Progress of Net Sales Targets by Target Segment)(Unit: Million yen)

Full-year Target

Full-year Target

Full-year Target

76,00068,4004,100

Progressrate

Full-year Target

500

3,000

Progressrate

Progress
rate

48.3％

Full-year Target

62.1％

47.7％

Progressrate

Progress
rate

49.8％

０％

2,545
36,69432,654

Management Target Value

Existing Areas

FY 3/22
Management Target Value(Consolidated)
Full-year
TargetNet sales

2Q
Results

76,000 36,694

1,494

Engineering Area

FY 3/22
Existing Areas

Progress Full-year
rate
Target2Q
Results

48.3% 68,400 32,654

New Businesses

Other Businesses (nursing care・

FY 3/22
New Businesses

FY 3/22
Other Businesses

FY 3/22
Engineering Area

Progress Full-year
rate
Target

47.7%

4,100

2Q
Results

2,545

Progressrate

Full-year
Target

62.1%

500

2Q
Results０

welfare)Progress Full-year
rate
Target

０％

3,000

2Q
Results

1,494

Progress
rate

49.8％

※The above full-year targets do not reflect revisions to Consolidated Forecasts.
Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved28

4

Future Prospects (FY 3/2022）

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved29

FY 3/2022 Revision of Full-year Consolidated Forecasts
Revisions of Consolidated Forecast■FY 3/2022 Full-year Consolidated Forecast (April 1, 2021 ~ March 31, 2022)(Unit: Million yen)

Based on recent business performancetrends, NISSO has revised the Full-year
Consolidated Forecast for FY 3/2022 (April
1, 2021 ~ March 31, 2022) which wasannounced on May 12, 2021.
For details, please refer to the "Notice ofRevisions of Full-year Consolidated Forecast
for the Fiscal Year Ending March 31, 2022"
announced on November 8, 2021.

※The addition of Vector Shinwa Co., Ltd.,
which became a subsidiary on August 31,
2021, is taken into account in thisrevised forecast.

Present Revised
Forecast

Previous Forecast
Forecast% of Total

Forecast% of Total

Change from
Previous Forecast
Increase(Decrease)% Change

Net sales

76,000100.0％

78,000100.0%

2,000

2.6%

Operatingprofit

3,000

3.9％

2,400

3.1%

(600)

(20.0%)

Ordinary
profit

3,000

3.9％

2,600

3.3%

(400)

(13.3%)

Profitattributableto owners ofparent

2,000

2.6％

1,750

2.2%

(250)

(12.5%)

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved30

5

Shareholder Return Policy

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved31Shareholder Return Policy
Basic Policy

Dividend and Payout Ratio

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

(Unit: Yen)
30.00

Payout ratio (right axis)(Unit: %)25.00 yen

100%
90%

25.00

20.00

FY 3/2022 Dividend Forecast

Dividend (left axis)

80%

20.10 yen

18.50 yen

18.00 yen

70%
60%

Although NISSO has revised the earnings forecast,the dividends per share forecast (18.00 yen) remains
unchanged.
This will result in a dividend payout ratio of 34.9%.

41.3%

15.00

10.00

42.7%

50%

34.9%

30.0%

40%
30%
20%

5.00

10%
0.00

FY 3/2019

FY 3/2020

FY 3/2021

FY 3/2022(Forecast)

0%※NISSO's common stock was split at a ratio of 2 shares for 1 share on May 1,
2019, and the FY 3/2019 dividend payout shown above is the dividend payout
amount after the stock split.

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved32

6

Supplementary Materials

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved33

Consolidated Balance Sheet(Unit: Million yen, ％)Mar. 2021-end
AmountSep. 2021-end

Increase(Decrease)

Cash and deposits

5,873

Amount13,846
68.5
5,054
27.2

Notes and accounts receivable - trade

8,094

37.4

7,977

36.2

(117)

6,817

31.5

8,208

37.2

1,391

4,654

21.5

4,677

21.2

22

305

1.4

1,603

7.3

1,297

1,857

8.6

1,928

8.7

71

21,631100

22,055100

423

Current liabilities

8,178

37.8

8,692

39.4

514

Accrued expenses

4,541

21.0

4,710

21.4

169

Income taxes payable

494

2.3

497

2.3

3

Provision for bonuses

950

4.4

1,044

4.7

93

Non-current liabilities

689

3.2

917

4.2

227

345

1.6

431

2.0

86

8,868

41.0

9,610

43.6

742

Shareholders' equity

12,74458.9

12,431

56.4

(313)

Total net assets

12,76359.0

12,444

56.4

(318)

Total liabilities and net assets

21,631100

22,055100

423

Current assets

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

Net defined benefit liability
Total liabilities

14,813% of Total% of Total

62.8

(967)

22.9

(818)

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

Point①Decrease due to reduced operations
Due to reduced operations of the
manufacturing-related human resources
services, "notes and accounts receivable(trade)", etc., of current assets decreased.
②Business combinations, etc.
As a result of the establishment of a new
subsidiary through the acquisition of shares,"cash and deposits" of current assets
decreased, intangible assets increased, andtotal assets and total liabilities increased.
③Number of enrolled staff
Due to the increase in the number ofenrolled staff in the manufacturing-related
human resources services, "accrued
expenses" of current liabilities increased.
④Dividends
Shareholders' equity decreased due todividend payments in June.
⑤Overall
As a result of the above, total assets
increased by 2.0%, total liabilities increasedby 8.4%, net assets decreased by 2.5%, andequity ratio decreased by 2.6% to 56.4%
compared to the end of the previous fiscal
year.

34

Consolidated Statements of Cash Flows(Unit: Million yen)

FY 3/21
2Q YTDFY 3/22
2Q YTD

AmountAmount

Point
Increase(Decrease)

Cash flows from operating activities

547

1,191

643

Cash flows from investing activities(398)(1,302)(904)

Cash flows from financing activities

(944)

(713)

231

Net increase (decrease) in cash andcash equivalents

(794)

(824)

(30)

Cash and cash equivalents at
beginning of period

6,365

5,873

(491)

Cash and cash equivalents at end of
period

5,570

5,048

(521)

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved① Cash flows from operating activities
Proceeds for 2Q amounted to 1,191 million
yen, as proceeds from income taxes wasabsorbed by proceeds from decreases in
profit before income taxes and accounts
receivable (trade).
② Cash flows from investing activities
Expenditures for 2Q amounted to 1,302
million yen due to expenditures such aspurchase of shares of subsidiaries resulting inchange in scope of consolidation, etc.
③ Cash flows from financing activities
Expenditures for 2Q amounted to 713
million yen due to expenditures such as cash
dividends paid, etc.

35

Nurturing and Bringing Out
the Best in People

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

For future IR-related inquiries

Investor Relations Office, NISSO CORPORATION
TEL

045-777-7630

E-mailir@nisso.co.jp

URL

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