FY 3/2023 - FY 3/2025

Medium-termManagement Plan
August 2022
NISSO CORPORATIONTSE Prime Market Code:6569

CONTENTS
1

Founding Philosophy・Mission・Vision・
Story of Achievement

2

Review of FY 3/2022

3

Toward the Achievement of theMedium-term Management Plan
(FY 3/23～FY 3/25)①Significance of Existence of the
Nisso Group①Progress of Consolidated
Management Target Values①Review of the Medium-term Management Plan

②Determination of the Nisso Group②Review of Key KPIs
(NISSO, Non-consolidated)②Business Environment・Market Opportunities③Social Environment AwarenessSociety 5.0③Initiatives for FY 3/2023③Image of the Nisso Group Growth Cycle④Story of Mission Achievement④Management Strategies(1)Business Portfolio Strategy(2)Provision of Services that Respond to Changing

MONOZUKURI (Manufacturing)(3)Strategies by Business (Initiatives by Group)(4)Practice of Human Capital Management(5)Response to Human Resources Mobility(6)Realization of BX by Digitizing Business Operations(7)Strengthening of Governance⑤Consolidated Management Target Values

Copyright ⓒ 2022 NISSO CORPORATION All Rights Reserved2Corporate Outline
Thanks to you, NISSO CORPORATION celebrated our 50th Anniversary
on February 3, 2021.
Trade NameNISSO CORPORATION

Japanese Co. Name

日総工産株式会社

Securities Code6569 (Prime Market, Tokyo Stock Exchange)

URL

http://www.nisso.co.jp/en/

Date Founded

February 3, 1971

Capital2,016 Million JPY (As of March 31, 2022)

Net Sales

71,697 Million JPY (As of FY 3/2022)

Headquarters

Nisso Kosan (NISSO) Shin Yokohama Bldg.,
1-4-1 Shin Yokohama, Kohoku-ku, Yokohama, Kanagawa 222-0033

TEL(81)45-476-4121（Main）

FAX(81)45-476-4521

Main Business Activities

Manufacturing-related Human Resources Services(Manufacturing Dispatching, Manufacturing Contracting,
Employment Placement, etc.)
Registered License Number

Temporary Staffing Business／派14-150048
Employment Placement Business／14-ユ-150026

Copyright ⓒ 2022 NISSO CORPORATION All Rights Reserved3Group Companies

Nisso Brain Co., Ltd.

Nisso Nifty Co., Ltd.

Nisso Pure Co., Ltd.

Vector Shinwa Co., Ltd.

Nisso Dai Ichi Building,Nisso Kosan (NISSO) Shin Yokohama

Nisso Kosan (NISSO) Shin Yokohama

3-1 Ikehata, Chiryu City, Aichi

28-26 Toyooka-chō,Bldg., 1-4-1 Shin Yokohama,Bldg., 1-4-1 Shin Yokohama,Tsurumi-ku, Yokohama, Kanagawa

Kohoku-ku, Yokohama, Kanagawa

Kohoku-ku, Yokohama, Kanagawa▶Description of Business▶Description of Business▶Description of Business▶Description of Business

General Human Resources Services

Administrative Human Resources

Facility Nursing Care Business, Home

Light Work Contracting, Sale of Goods

Business

Services

Nursing Care Business(NISSO CORPORATION’s
Special-purpose Subsidiary)

Nikon Nisso Prime Corporation

SHANGHAI NISSO HUMAN RESOURCES Co., Ltd.

Shin-Yokohama 214 Bldg. 3F, 2-14-2 Shin-Yokohama,Rm. 508, 36-7 Building 7, 36 Xuelin Road, Pudong New
Area, Shanghai, China▶Description of Business

Kohoku-ku, Yokohama, Kanagawa▶Description of Business

Human resources dispatching・recruitment
Human resources sharing business

Recruitment
Human Resources Consulting

Leaf NxT Inc.
Honey Gotanda Dai 2 Bldg., 4F,
1-4-1 Higashi Gotanda, Shinagawa-ku,
Tokyo▶Description of Business
Human resources dispatching business,

Consignment/entrustment・contracting businessdevelopment- type qualified personnel

Planning, R&D, operation and support of structure development
and opportunity creation for seniors' continued employment

dispatching business, recruitment platform

Copyright ⓒ 2022 NISSO CORPORATION All Rights Reserved

business, media direction business41Founding Philosophy・Mission・
Vision・Story of Achievement

5Significance of Existence of the Nisso Group
Founding Philosophy

Nurturing and Bringing Out the Best in People
We, the Nisso Group
with Human Resources Solution Services that support the growth of companies and people
MISSION
We will fulfill our Mission ofCreating opportunities and hopes for people to work
VISIONTo transform into a corporate group with high-growth potential

Copyright ⓒ 2022 NISSO CORPORATION All Rights Reserved

6Determination of the Nisso Group

Digital technology, human capital management, decarbonization,
pandemics, and world affairs are changing at an unprecedented rate.
The Nisso Group will continue to promote reforms
in order to continue to be an entity expected by society.

BX
Nisso Business Transformation
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7

Social Environment Awareness Society 5.0

A society where all
people and goods
are connected by
IoT and new values
are createdSociety so far

A society that can
respond to various
needs throughinnovation

Society so far

Insufficient knowledge・information sharing
and cooperation

Inability to adequately respond to
local issues and the needs ofthe elderly

Society 5.0
A society where AI
provides thenecessary
information when it
is needed

A society where
human potential isexpanded withtechnologies suchas robots andautonomousvehiclesSociety so far
Searching for and analyzing necessary
information is a burden
Literacy (ability to utilize) is requiredSociety so far
Limitations on work and range of activities
due to age, disability, etc.

IoT

AI

Big data

Robots5G

Supporting technology
Copyright ⓒ 2022 NISSO CORPORATION All Rights Reserved

8Story of Mission Achievement
Society 5.0

Social environment
Social issues

Labor shortage

Declining birthrate andaging population

Regional decline

Advanced information processing

Control of greenhouse gases

IssuesCreation of a comfortable workplace

Strengthening ofgovernanceMaximize employee satisfaction・
customer satisfaction

Initiatives

Digitization

Responding to social changes andchanges in industrial structures

Provide high value-added
services×

Human resources
investment

Strengthen management structure・internal controls

Enhancement of corporate (enterprise) value (EV) through creation of social value (CSV)
Copyright ⓒ 2022 NISSO CORPORATION All Rights Reserved

9

2

Review of FY 3/2022

10

Progress of Consolidated Management Target Values
Despite the COVID-19 pandemic, net sales were achieved in response to strong demand for human resources
NISSO was unable to absorb the impact of reduced operations due to a shortage of parts and the impact of the
COVID-19 pandemic, resulting in unachieved profits
Operating profit (Million yen)

Net sales (Million yen)

Profit (Million yen) / ROE
ProfitROE

77,54976,000

3,061

3,000

2,033

2,000

2,599

74,966

1,696

1,592

2,087
18.1

15.1

68,213

FY 3/2020

FY 3/2021

12.9

FY 3/2022
FY 3/2022(Initial disclosure) (Results)

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FY 3/2020

FY 3/2021

FY 3/2022
FY 3/2022(Initial disclosure) (Results)

FY 3/2020

FY 3/2021

13.0

FY 3/2022
FY 3/2022(Initial disclosure) (Results)

11

Review of Key KPIs 1 (NISSO, Non-consolidated)
By focusing on expanding existing areas, year-end enrollment and net sales became record highs since NISSO's listing
NISSO's net sales and share
Unit: Million yen

Trends of net sales composition by industry
Unit: %

92.5%

92.3%
91.7%

5,757

5,852

Unit: Million yen

15.3

14.6

13.7

13.1

12.7

11.6
38,513

5,664

69,209FY 3/2020
NISSO

62,549FY 3/2021
Other

Trends of net sales of Accounts / Other

38,23932,792

25.8

29.4

30.6

45.8

43.3

44.1

30,69629,75733,458FY 3/2020

FY 3/2021

FY 3/2022

FY 3/2020

FY 3/2021

FY 3/2022

71,697

FY 3/2022
Ratio

Automobiles

Elec. Devices

Precision・Elec. Machinery

Other

Accounts

Other

NISSO is organic andNISSO continues to acquire orders by

Steady growth

grew to a scale that exceeds thestrengthening business relationships with major
automobiles and electronic devices-related
manufacturers

in transaction scale of AccountCompanies

pre-COVID-19 pandemic
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12Review of Key KPIs 2 (NISSO, Non-consolidated)
Trend of net sales per capita(Monthly average conversion)
Unit: Thousand yen

514

397

415

396

Trends of number of enrolled staff/
engineers at FY-end
Unit: # of staff/engineers

Trends of turnover rates(Monthly average conversion)

4.7%
4.2%

14,945

14,7703.8%

13,146

1.9%

FY 3/2020

FY 3/2021
Overall

FY 3/2022

Engineers

FY 3/2020

608

1,105

FY 3/2021

FY 3/2022

OverallEngineers

FY 3/2020

FY 3/2021
Overall

FY 3/2022

Engineers

The total number of enrolled staff

Increase in average unit-costs due toincreased by 1,799

NISSO has been able toincreases in the number of Account Company

from the end of the previous FY.

decrease the turnover rate

assignments, engineer enrollment, etc.

The number of enrolled engineers

year by year

contributed

increased by 497
from the previous FY due to the promotion of

Copyright ⓒ 2022 NISSO CORPORATION All Rights Reserved

conversion to engineers

13

Initiatives for FY 3/2023
Individual strategies
Items
Expand the base of core
areas

Results

Measures●Strengthen the service provisionsystem●Made Vector Shinwa a subsidiary

Expand the businessportfolio●Strengthen cooperation with existing
partnerships●Build new partnerships●Collaborated with "TASUKI Annotation"(Launched AI-related services)
https://tsk-pf.com/ (in Japanese only)●Established a joint venture company with TSUNAGU HD(Leaf NxT)

Enhance nursing care・
welfare services●Build a system to accept foreign
caregivers●Acceptance started in June 2022

●Expanded Web interviews

Strengthen the
management base●Reform systems, introduce IT tools●Introduced a staff portal application that connects companies
and staff(Career counseling, open recruitment, in-house scouting, etc.)●Strengthened the cloud tool usage environment●Improved the talent management system environment
Copyright ⓒ 2022 NISSO CORPORATION All Rights Reserved

14

3

Toward the Achievement of theMedium-term Management Plan
(FY 3/23～FY 3/25)

15

Review of the Medium-term Management Plan
NISSO will catch up on targets in FY 3/25.

Growth rate (CAGR Targets) 14.1%
Achievement of

Growth rate (CAGR Results) 7.0%

115.0B
100.0B

Unit: Billion yen

Prospect

1,000

Result

77.5B

Cons. Net sales

59.2B

88.6B

75

Convergence of the effects of COVID-19
and parts shortages

Cons. Operating
profit
500

100

50

Expecting a full recovery in operations

Effects of COVID-19 and parts shortages

1.8B（3.0％）

Opportunity loss due to reduced operations
Prospect
Result

2.0B

25

2.7

B
（3.0％）（2.7％）00
FY 3/18

FY 3/19

FY 3/20

Results
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FY 3/21FY 3/22

FY 3/23
FY 3/24
FY 3/25
Medium-term Management Plan Period(After rolling)16

Business Environment・Market Opportunities
Expansion of human resources market opportunities due to decline in labor force population●Human resources mobility will accelerate, and the need to eliminate employment mismatches will increase●Opportunities for utilization of diverse human resources such as middle -aged and elderly human resources,
global human resources, and people with disabilities will expand●Diverse work opportunities that are not limited to full -time will expand●Awareness of QoL (Quality of Life) will increase and awareness of work will become more diverse.

MONOZUKURI

Administrative

Light work

●Growing maintenance needs●Further expansion of demand

Due to the expansion of the EC●Health management and●Demand for nursing care isdue to the introduction offor IT human resources due tomarket, although the utilization

well-being are attracting moreincreasing, and there is a

automation/AI

technological innovationof new technologies such as AI

attention, and the healthcare-constant shortage of nursing●Substitution of related●Expansion of demand in theand IoT, unmanned delivery,

related market is expanding

care personnel

technologies and parts due to

BPO area due to the review ofsupply chain rationalization andfurther.

●Technological innovation in

the spread of EVs and CASE

non-core operations

labor saving are promoted,●Healthcare x DX advances thethe nursing care technology●Market expansion in

there is a serious shortage ofenhancement of telemedicine

area is advancing, and thesemiconductor-related areas

labor (manpower).

through industrial policy
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Healthcare

Nursing care・welfare

need for human resources with

IT literacy is increasing

17

Image of the Nisso Group Growth Cycle

Local
communities

Realizationof highlytransparent dialogue

Administration
Activeindustrygovernmentacademia
cooperation

SS(Shareholders,etc.)

Practice ofdiversity
Cross-industry
collaboration
Capital and businessalliances
M&A

CS

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

ES(Employees)
Compliancewith laws andregulations

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Improvement ofskillsdevelopment,
treatment
and work-styles

18Management Strategies
Management Strategies
Business Strategy■Business Portfolio Strategy：Combine "deepening" of core areas and "exploring" of new areas■Business Portfolio Strategy：Promote high quality・high value-added to core area business domains■Provide services in response to changing MONOZUKURI (manufacturing)■Strategies by business (Group Initiatives)

Infrastructure Strengthening Strategy■Practice of human capital management (Active investment in human resourcesmanagement, education and training, and career development)■Response to human resources mobility■Realization of business transformation by digitizing business operations■Strengthening of governance

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19

Business Strategy

Business Portfolio Strategy
High

Future potential

Focus area (next core)

Sow seeds to create new businesses

Develop into the next core business●AI-related services●HR Tech

GrowthMarket growth potential●Healthcare/HealthTech●HR Tech●Healthcare/HealthTech●Care Tech

●Technical services by foreign nationals
Transition(dispatching, SES, etc.)●Care Tech●Engineer dispatchingTransition

Development

Rebuild

Conversion

Efficiency area (current core)Rebuild services, develop new menus●Facility nursing care business, home-visit care, etc.
●Administrative dispatching, BPO, employment
placement, etc.

●Manufacturing dispatching/manufacturing contracting

Transition

Improve efficiency and strengthen"earning power"●Manufacturing dispatching/manufacturing contracting(high-skill areas)●Human resources services for seniors●Skilled services by foreign nationals

Low(dispatching, contracting)

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NISSO's profitability

High

20

Business Strategy

Provision of Services that Respond to Changing MONOZUKURI (Manufacturing)
Conventional MONOZUKURINISSO's core service areas〈Value consumption〉
Conventional
manufacturing industry

Things(tangible)〈Production value〉〈Value provision〉

Clients

Servitization of
manufacturing industry

Manufacture・provide things andreceive compensation from clients

Transformationof business models

New MONOZUKURI
Expansion of NISSO's coreservice areas〈Value co-creation〉
New
manufacturing industry

Things(tangible)

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Services

Experience＋ (intangible) ＋ (intangible)

Clients「Value is created when clients
experience it, and for that purpose,
NISSO provides
some kind of service
in addition to things,
and creates value together withclients」

21

Business Strategy

Strategies by Business (Initiatives by Group)

General Human Resources
Services Business

Area

Operating Company

Directionality

Initiatives

Possibilityof MA, JV,
etc.

Manufacturing
・Production▪Improve efficiency and strengthen"earning power"▪Strengthen service provision system▪Increase share of account clients〇Engineering▪Develop into the next core business▪Expand high value-added areas▪Expand educational venues▪Expand SES services▪Expand enrollment◎

Administrative▪Rebuild services▪Develop new menus▪Pursue business opportunities-▪Create synergies▪Strengthen cooperation with existing
partnerships〇

Nursing Care・Welfare▪Rebuild services▪Develop new menus▪Improve facility occupancy rates▪Diversify business opportunities

-

Other

▪Sow seeds to create new value▪Build new partnerships〇

Nikon Nisso Prime Corporation

Other

Nisso Pure Co., Ltd.

Other Businesses

SHANGHAI NISSO HUMAN RESOURCES Co., Ltd.

Nisso Nifty Co., Ltd.

Copyright ⓒ 2022 NISSO CORPORATION All Rights Reserved

22Infrastructure Strengthening Strategy

Practice of Human Capital Management

The Nisso Group

Revenue
expansionDevelopment of
nursing care personnel

Engineer development

Introduction of
介護人材の育成
VR/AR education

Human capital
investment

Promotion of career changes

Increase the number ofcareer path assistants

OJT
Clients

Cooperation indevelopment

Employees

Off-JT
Provision of highvalue-added services

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Diversity management

Visualization of skills

Enhancement ofcareer advancement systems

Personnel system reform

Workations

Remote work (WFH)23

Infrastructure Strengthening Strategy

Response to Human Resources Mobility
Discover and visualize the abilities of workers and corporate needs, and achieve both human resources discovery andbusiness opportunity expansion
In career development, we will expand our strengths and complement the deficiencies in the areas that are lacking,leading to the placement of the right person in the right place
Improve matching rate・job conversion rate/
supply of human resource to growth business

Employees

Satisfy customer needs/expand business opportunities

Acquisition of insufficientabilities

Client companies

NISSO Human resources DB

Centralized humanresources management

Dig up task origins→Discovery of abilities・experiences→Development of new segments

Career path assistants

Sales representatives

Combine "deepening" of core areasand "exploring" of new areas(Counselors)

Copyright ⓒ 2022 NISSO CORPORATION All Rights Reserved24Infrastructure Strengthening Strategy

Realization of BX (Business Transformation) by Digitizing Business Operations

Utilization of big data

Faster decision-making

Realization ofmanagement basedon data
Restructuring of core systems
Development of data utilization infrastructure
Promotion of utilization of XR technology

Data linkage with clientsBusiness expansion

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Service sophistication･
quality improvement

25

Infrastructure Strengthening Strategy

Strengthening of GovernanceFundamentals of Governance (CHAT)

Compliance

Hospitality

5 Principles of Governance

Ensuring shareholder
rights・equality
Appropriate collaboration
with stakeholders
other than shareholders
Ensuring appropriate
information disclosureand transparency

Accountability

Responsibilities of theBoard of Directors, etc.

Transparency

Dialogue withshareholders

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Promotion Measures

Formulationof a cross-groupdecision-making system

Strengtheningof Management

Improvement ofoperational excellence

Systems・Internal
Controls

Sophistication・
refinement ofrisk management
Securement of data
management and BCP
support26

Consolidated Management Target Values①
FY 3/2023

FY 3/2024

AmountIncrease(decrease)

Growth rate

AmountIncrease(decrease)

Net sales

88,600＋11,050＋14.2%

100,000

Operatingprofit

2,700

＋613

＋29.4%

Operatingprofitmargin3.0％+0.3ptsｰ

FY 3/2025
Growth rate

AmountIncrease(decrease)+11,400+12.9%

115,000+15,000+15.0%

4,000＋1,300＋48.1%

6,700＋2,700＋67.5%

4.0%+1.0pts-

5.8％+1.8pts-

Growth rate

※Increase (decrease) and growth rate are YoY

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Consolidated Management Target Values②
Management Indicators

Management Targets

Growthpotential

Net sales growth rate
(CAGR)

Growth rate above industry standards

Profitability

Operating profit margin

5.8% or more

Efficiency

ROE

20% or moreSoundness

Financial leverage

Shareholder
returns

Dividend payout ratio

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2.5 times or more

30% or more

28

The Nisso GroupNISSO's Mascot characters: Tsukurin & Peta & Seizo-kun

August 2022