First Nine Months of FY 3/2021

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

February 8, 2021

NISSO CORPORATIONTSE 1 Code: 6569

0

Summary
FY 3/2021 3Q Results●Decreased revenue and profits year-on-year (Operating profit)●Ordinary profit increased●Improved operational adjustments in almost all industries●Automobiles industry-related human resources needs recoverFY 3/2021

Consolidated Earnings Forecast●Domestic and overseas demand recovers, mainly from automobiles manufacturers, andoperations increase●Recovery from the effects of the new coronavirus (COVID-19) becomes clear, and theforecast is revised upward
Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

1・Please find the summary above.

1

CONTENTS

1

First Nine Months of FY 3/2021

Financial Results Summary

2First Nine Months of FY 3/2021

Overview of Activities

3

Future Prospects (FY 3/2021）

4

Topics5

Shareholder Return Policy

6

Supplementary Materials
Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

2

2

１

First Nine Months of FY 3/2021 (3Q)

Financial Results Summary

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved33

FY 3/2021 3Q Consolidated Financial Results Highlights（Unit: Million yen）

PointsFY 3/20 3Q• Although revenue and profits decreased,
partly due to a decrease in enrollment,
operating profit increased YoY (767
million yen) in 3Q alone from an increasein operations (number of working days,
overtime hours, holiday work, etc.).
• Ordinary profit increased YoY (including
subsidy income).
• In Other Businesses, revenues increased
due to an increase in the number ofresidents of Building 6. Operating loss
also improved.

Results% of Total

FY 3/21 3Q
Results% of Total

Year-on-Year
Increase(Decrease)% Change

55,718100.0%

50,442100.0%(5,275)(9.5%)

Gross profit

9,515

17.1%

8,433

16.7%

(1,082)(11.4%)

SG&A
expenses

7,619

13.7%

6,754

13.4%

(864)

(11.4%)

Operatingprofit

1,896

3.4%

1,678

3.3%

(217)

(11.5%)

Ordinary
profit

1,940

3.5%

2,005

4.0%

65

3.4%

Profitattributableto owners ofparent

1,307

2.3%

1,284

2.5%

(23)

(1.8%)Net sales

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

4・The following is the explanation of the Consolidated Financial Results for FY 3/2021 3Q.
・Net sales amounted to 50,442 million yen (down 5,275 million yen or -9.5% YoY)
・Gross profit amounted to 8,433 million yen (down 1,082 million yen or -11.4% YoY)
・SG&A (selling, general and administrative) expenses amounted to 6,754 million yen (down 864
million yen or -11.4% YoY)
・Operating profit amounted to 1,678 million yen (down 217 million yen or -11.5% YoY)
・Ordinary profit amounted to 2,005 million yen (up 65 million yen or 3.4% YoY)
・Profit attributable to owners of parent amounted to 1,284 million yen (down 23 million yen or-1.8% YoY)

・From 2Q to 3Q, the profit margin improved from 2Q partly due to the recovery in production by
NISSO’s clients, including the automobiles industry.
・With regards to ordinary profit, income from subsidies for employment adjustment was 359
million yen, which boosted profits. Another reason is that earnings are improving in the nursing
care business, which is part of the Other Business segment.

4

FY 3/2021 Quarterly Consolidated Financial Results（Unit: Million yen）

（Unit: Million yen）

Net sales
20,000Operating profit

19,24818,814 18,920
18,435
17,942 17,983

1,400

1,165
17,47016,784

16,557
16,414

15,999

1,200

1,039
947

914

1,000

767

800
15,000

650
542

600

400

525

477

372
206

200

10,000

0

１Q

２Q

３Q

４Q

【FY 3/19】

１Q

２Q

３Q

４Q

【FY 3/20】

1Q

2Q

3Q

【FY 3/21】

１Q ２Q ３Q ４Q １Q ２Q ３Q ４Q【FY 3/19】【FY 3/20】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

1Q 2Q 3Q
【FY 3/21】

5・Shown above are graphs of quarterly consolidated net sales and operating profit trends.

5

FY 3/2021 3Q Non-consolidated Financial Results Highlights（Unit: Million yen）

Net sales

FY 3/20 3Q• Although net sales decreased by 10.2%
due to the impact of decreases inenrollment, the rate of decline decreased
due to an increase in operations (numberof working days, overtime hours, holiday
work, etc.).

Expenses・Profits• Operating profit margin improved withincreased operations (number of working
days, overtime hours, holiday work, etc.).
• Ordinary profit increased YoY, partly due
to the recording of subsidy income in
non-operating income.

Results% of Total

FY 3/21 3Q
Results% of Total

Year-on-Year
Increase(Decrease)% Change

51,433100.0%

46,191100.0%(5,241)(10.2%)

Gross profit

9,040

17.6%

8,028

17.4%

(1,011)(11.2%)

SG&A
expenses

7,125

13.9%

6,309

13.7%

(815)

(11.4%)

Operatingprofit

1,915

3.7%

1,718

3.7%

(196)

(10.3%)

Ordinary
profit

1,917

3.7%

1,962

4.2%

45

2.3%

Profit

1,304

2.5%

1,263

2.7%

(40)

(3.1%)Net sales

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

6

・The following is the explanation of NISSO’s Non-Consolidated Financial Results for FY 3/2021 3Q.
・Net sales amounted to 46,191 million yen (down 5,241 million yen or -10.2% YoY)
・Gross profit amounted to 8,028 million yen (down 1,011 million yen or -11.2% YoY)
・SG&A expenses amounted to 6,309 million yen (down 815 million yen or -11.4% YoY)
・Operating profit amounted to 1,718 million yen (down 196 million yen or -10.3% YoY)
・Ordinary profit amounted to 1,962 million yen (up 45 million yen or 2.3% YoY)
・Profit amounted to 1,263 million yen (down 40 million yen or -3.1% YoY)
・Although the number of enrolled staff decreased by more than 2,000 from the beginning of the
fiscal year, in 3Q, due to a recovery in production by NISSO's clients, the number of working days
increased, and extra-time hours, such as overtime and holiday work also increased, which led to
an increase in net sales and an increase in earnings.
・As for employee recruitment expenses, although the YTD total for FY 3/20 3Q was 1,081 million
yen, the YTD total for FY 3/21 3Q was 341 million yen, a decrease of 740 million yen YoY, which
drove down SG&A expenses.
・Employee recruitment expenses increased every quarter, back orders increased in 3Q, andrecruitment expenses are returning to the same level as previous years.

6

FY 3/2021 Quarterly Non-consolidated Financial Results（Unit: Million yen）

（Unit: Million yen）

Operating profit

Net sales
17,478 17,775
17,38916,962
16,542 16,566

18,000

1,400

1,204
1,200

16,036
16,00015,378
14,590

1,044
1,000

15,15315,002

958

940
783

800

663

14,000

555

577

600

468
399
400
12,000

204

200

0

10,000１Q ２Q ３Q ４Q １Q ２Q ３Q ４Q【FY 3/19】【FY 3/20】

1Q

2Q

3Q

【FY 3/21】

１Q

２Q

３Q

４Q

【FY 3/19】

１Q

２Q

３Q

４Q

1Q

【FY 3/20】

2Q

3Q【FY 3/21】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

7

・Shown above are graphs of NISSO's quarterly non-consolidated net sales and operating profit
trends.
・Although net sales increased by 6.9% compared to 2Q, it decreased by 8.3% YoY. Although
operations increased, as explained earlier, the number of enrolled staff decreased by more than
2,000, which affected net sales.
・Operating profit increased by 72.5% compared to 2Q, which showed a significant expansion inearnings.
・The operating profit margin has also improved from 3.7% in 2Q alone to 6.0% in 3Q alone, andbusiness efficiency has increased significantly.

7

2First Nine Months of FY 3/2021 (3Q)

Overview of Activities

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88

FY 3/2021 3Q Financial Results Summary
Consolidated Financial Results

Net Sales
50,442 Million yen （ -5,275 Million yen／ -9.5％ YoY）
Operating Profit 1,678 Million yen （ -217 Million yen／-11.5％ YoY）
● Net Sales by Industry (YoY)
Automobiles

・In the automobiles-related industry, although net sales decreased by
15.5% YoY, the rate of decrease narrowed. Compared to 2Q, net sales
increased significantly.
・In the electronic devices-related industry, IT demand remained firm, andnet sales were strong.

… (15.5％)

Electronic devices … ＋3.4％● 3Q-end Number of Enrolled Staff
12,692 staff（-2,078 staff from FY 3/20-end ）（＋168 staff from 2Q-end）● Net Sales per Capita/Monthly

389 Thousand yen(-6 Thousand yen YoY)

・Although the number of enrolled staff decreased by 2,078 compared to
FY 3/20-end, it increased by 168 compared to 2Q.

・Operations (number of working days, overtime hours, holiday work, etc.)
increased, and net sales per capita were on a recovery trend. The amountof decrease also improved from 2Q (which was at -20 Thousand yen).

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

9・Shown above is the Financial Results Summary for FY 3/2021 3Q.
・Details will be explained in the following pages.

9

FY 3/2021 3Q Net Sales by Industry (NISSO, Non-consolidated)（Unit: Million yen）

Net Sales Composition Ratios
Automobiles

Elec. Devices

8,086（15.7％）

Precision・Elec. Machinery(14.4％)（13.4％）(13.5％)

5,951（12.9％）

13,177（25.6％）+3.4％

13,631（29.5％）

23,289（45.0％）

FY 3/20 3Q(15.5％)

Due to changes in work-styles such as teleworking,demand did not grow, and net sales decreased by
13.5% YoY.

6,920
（15.0％）

6,878【Precision・Electrical Machinery】
Other【Electronic Devices】
Semiconductors continued to be strong, partly due
to steady IT demand due to 5G and changes inwork-styles, and a recovery in demand related toin-vehicle electronic devices. Net sales increasedby 3.4% YoY.

【Automobiles】
19,686（42.6％）

FY 3/21 3Q※（ ）= % of Total net sales, Red = % of Year-on-Year growth

Due to the recovery of domestic and overseas
demand, operations (number of working days,
overtime hours, holiday work, etc.) increased. The
number of auto-body manufacturers who increased
both production and personnel also increased.
Although net sales decreased by 15.5% YoY, it
increased by 12.8% on a quarterly basis compared to
2Q.

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

10

・The following is the explanation of NISSO's non-consolidated net sales by industry.
・Although operations in the automobiles industry have been recovering, due to the impact ofenrollment, net sales decreased by 15.5% YoY.
・In the electronic devices industry, although inventory adjustments have settled down, there has
been no significant improvement in net sales compared to 2Q. However, net sales in thesemiconductor industry continued to grow due to the impact of 5G, and teleworking as a result ofwork-style reforms.
・With regards to Others, including industries related to housing, were not on a recovery trend, anddecreased by 14.4% YoY.
・With regards to the precision・electrical machinery industry, since teleworking has progressed, thedemand for office-related equipment, including multifunction machines, has not improved.

10

FY 3/2021 Quarterly Net Sales by Industry (NISSO, Non-consolidated)

Automobiles

Elec. Devices

Precision・Elec. Machinery

2,890
2,607

（17.9％）

2,424（16.6％）

2,690（17.5％）

2,404

2,427

（15.8％）

2,348

2,631

（15.9％）

2,371（14.3％）（14.2％）（14.3％）

4,752

4,198

4,057

（15.6％）

4,646

4,330

（30.2％）

5,227

5,636

（35.8％）（36.7％）

１Q

2Q（29.7％）（17.0％）

2,619（28.0％）（25.4％）（Unit: Million yen）

Other

（24.5％）

2,680

2,774

（15.4％）（15.9％）

2,317

2,190

（13.3％）

4,633（26.6％）（12.5％）

4,487（25.7％）

2,563（14.4％）

2,182（12.3％）

4,650（14.3％）（15.7％）（15.0％）

2,113

1,895

（12.1％）

4,413（28.3％）（13.9％）

4,680

7,757

7,375

7,505

（40.6％）（44.6％）（45.3％）（44.6％）

3Q

4Q

１Q

2Q

【FY 3/19】

8,026（45.9％）

8,378（47.1％）

5,974（39.4％）3Q

4Q【FY 3/20】

1Q

1,942

（12.6％）（26.2％）（30.9％）

6,891

2,287

2,249

2,383

4,537

（29.4％）

6,443

7,268

（43.0％）（45.3％）2Q

3Q【FY 3/21】※（ ）= % of Total net sales

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

11・Shown above are the trends of NISSO's quarterly net sales by industry.
・In the automobiles industry, although net sales have not yet reached 100% when compared to thecorresponding period of the previous fiscal year, net sales have increased by 12.8% compared to
2Q.
・In addition to back orders that started to come in, mainly from the Account Company which is an
auto-body manufacturer, there were also recoveries by auto-parts manufacturers, which led to theresults above.
・With regards to the electronic devices industry, inventory adjustments began to settle down, andcompared to the corresponding period of the previous fiscal year, net sales recovered to 101.1%.
NISSO expects to expand in this area in the future.
・In terms of the precision・electrical machinery industry, although net sales decreased compared tothe corresponding period of the previous fiscal year, net sales increased by 2.5% compared to 2Q,
and we believe that it has finally bottomed out.

11

Net Sales per Capita（NISSO, Non-consolidated）● FY 3/2021 3Q YTD＜Overall net sales per capita＞

389 Thousand yen ( -6 Thousand yen YoY)

＜Skilled staff net sales per capita＞

453 Thousand yen (-28 Thousand yen YoY)

●Although net sales per capita (monthly average conversion) decreased YoY, operations (number of working days, overtime hours, holiday
work, etc.) increased. On a quarterly basis, net sales per capita for both overall and skilled staff increased YoY.
（Unit: Thousand yen）

（Unit: Thousand yen）

Net Sales per Capita

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

481

500

395

Skilled staff

Skilled staff
Overall 453

389

400

400

300

300

200

200

100

100

0

513

478

500

379

383

410

485

484

471
392

391

482
396

397

Overall 490

485

478

419

403
358

451
390

421

0

FY 3/20 3Q

FY 3/21 3Q

１Q

2Q

3Q

4Q

【FY 3/19】

１Q

2Q

3Q

【FY 3/20】

4Q

1Q

2Q

3Q

【FY 3/21】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

12

・The following is the explanation of NISSO's net sales per capita.
・Looking at net sales per capita YTD totals, overall was at 389 thousand yen, and skilled staff was
at 453 thousand yen, both of which decreased YoY. However, when compared to 3Q alone, theincrease for overall was 24,000 yen or an increase of 6.1%, and the increase for skilled staff was
12,000 yen or an increase of 2.5%. As explained earlier, this is largely due to the increase in extratime hours.
・When comparing the 3Q extra-time hours with the corresponding period of the previous fiscal year,
the number of extra-time hours increased by more than 2 hours on a monthly average basis.
Although the unit-costs of orders received is also a simple average compared to the corresponding
period of the previous fiscal year, it has increased by about 80 - 100 yen, and this situation isreflected in the results.

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

Compared w. 2Q-end

Number of Enrolled Staff at Quarter-end+168 staff (+1.3%)

Point①

15,000Due to new hires and the curbing of enrolled
staff leaving NISSO, the number of enrolled
staff is starting to increase on a quarterly basis.

13,826 14,042
13,546

14,639 14,638
14,282

14,77013,243
12,692
12,524

13,05013,00011,000

Point②9,000

Human resources needs of clients in theautomobiles-related industry increased. The
number of auto-body manufacturers who
increased both production and personnel also
increased. Human resources needs are on arecovery trend in other industries as well.

7,000

5,000

1Q

2Q

3Q

4Q

【FY 3/19】

1Q

2Q

3Q

4Q

【FY 3/20】

1Q

2Q

3Q

【FY 3/21】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

13

・The following is the explanation of NISSO's quarter-end enrollment on a quarterly basis.
・NISSO views the fact that enrollment has not recovered as a major issue.
・However, compared to 2Q-end, the number of enrolled staff increased by 168, and the situation
has begun to turn around.
・Partly due to the impact of COVID-19, the situation at the moment is that recruitment is struggling
more than the opening-to-application ratio of jobs. In the future, it is assumed that the number ofenrolled staff will recover strongly as the impact of COVID-19 subsides and recruitment progresses
smoothly.

13

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

Number of Skilled Staff

Point①
The number of skilled staff is starting toincrease, mainly in Account Companies.
(+88 staff compared to 2Q-end)

6,000

5,000

Point②

4,501

4,803

5,085

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

3,904
In addition to the steady performance of thesemiconductor-related industry, the numberof skilled staff increased, mainly in theelectronic devices industry, due to therecovery in demand related to in-vehicle
products.

4,000

3,459
3,000

2,000

2,611
2,034

Point③
1,000

The ratio of skilled staff to NISSO's total
enrolled staff remained at 42.4%, partly due
to the increase in enrolled staff companywide.
(FY 3/2021 2Q: 42.3%)

0

1Q

2Q

3Q

4Q

1Q

【FY 3/19】

2Q

3Q【FY 3/20】

4Q

1Q

2Q

3Q

【FY 3/21】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

14

・The following is the explanation of NISSO's skilled staff.
・There was also an increase of 88 skilled staff compared to 2Q.
・Although the number of skilled staff decreased for the first time in 2Q, it has reversed since then.
The increase was due to a partial increase in production by auto-parts manufacturers, and anincrease in the area of equipment maintenance related to semiconductors.

14

Account Companies (NISSO, Non-consolidated)
Point①

Account Company Groups Net Sales

YTD net sales of Account Company Groups
were -2.5% YoY, which was less impacted by
COVID-19 compared to NISSO's net sales.

(Unit: %)（Unit: Million yen）
Net sales (left axis)

12,000Composition ratio (right axis)

47.7

48.0

45.9
10,000

41.9

Point②・ YTD net sales of the automobiles andelectronics Account Company Groups
increased YoY.
・ In 3Q alone, net sales recovered to-0.2% YoY, almost the same level as theprevious FY.

43.7

42.7

44.5

44.2

44.1

7,416 7,366 7,300

8,000

6,107

50.0

47.1

43.3

7,677 7,565

45.0

8,152
7,225

6,564

7,201

7,551 40.0

6,000

35.0

4,000

30.0

2,000

25.0

0

１Q

2Q

3Q

4Q

１Q

【FY 3/19】

2Q

3Q【FY 3/20】

4Q

1Q

2Q

3Q

20.0

【FY 3/21】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

15

・The following is the explanation of NISSO's Account Companies.
・Compared with the corresponding period of the previous fiscal year, although YTD net sales
decreased by 2.5%, the automobiles Account Company Group has already exceeded YoY figures.
・In the area of precision・electrical machinery, there was a significant decrease due to the effects ofteleworking, etc., and figures have decreased overall.
・In 3Q alone, net sales have returned considerably, down only 0.2% YoY.
・Since NISSO has received a large number of back orders, mainly from Account Companies, a
noticeable recovery can be seen.

15

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

FY 3/2021 3Q Results
Overall turnover rate

Skilled staff

Overall4.4％

7(-0.3 pts vs. FY 3/2021 2Q-end)

7

5.9
6

Skilled staff turnover rate

5.5

6

4.9

2.0％

5

4.6

4.7

5.1

5

4.7

4.4

(-0.3 pts vs. FY 3/2021 2Q-end)
4

4

3

Points1.7

2・The overall turnover rate improved by
0.3 points to 4.4%, down from 2Q-end.
・The turnover rate for skilled staff also
improved by 0.3 points to 2.0%, also downfrom 2Q-end.

2.0
1.5

3

2.0

2.3

2.0

2

1

1

0

0
FY 3/16

FY 3/17

FY 3/18

FY 3/19

FY 3/20

1Q

2Q

3Q

4Q

【FY 3/21】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

16

・The following is the explanation of NISSO's turnover rates.
・The turnover rate of skilled staff was at 2.6% in 2Q alone, which was influenced by about 150
staff who resigned from auto-parts manufacturers. However, in addition to the recovery of theautomobiles industry, production in the electronic components area has been on an upward trend,
and the turnover rate has been settling down.
・When looking at 3Q alone, the overall turnover rate was at 3.8%, which is less than 4%, and theturnover rate was able to be reduced. The turnover rate for skilled staff was at 1.6% in 3Q alone,
and it is believed that this will be a major point in increasing sales and profits amid the difficulties
of recruitment.

16

Educational Achievements（NISSO, Non-consolidated）● FY 3/2021 2Q Course-specific educational achievements
Point①(total # of participants)

The overall number of participants decreased
YoY due to continued restrictions on thenumber of participants due to measures toprevent the spread of COVID-19 infections.

Training course
name

Point②
Orders from semiconductor manufacturers
for equipment maintenance personnel werestrong.

Point③The number of employee education
participants has increased due to theenhancement of on-line contents, andincreased YoY.

(Unit: # of participants)

３Ｑ（Oct - Dec）

Contents

FY 3/20 3Q

Skilled staff education

258 Standard skilled staff education

589

Basic maintenanceeducation

Basic equipment maintenance
51 education82

Accredited vocational
training education

36 (Miyagi・Nagano Prefectures)

Accredited vocational training school

38

Manufacturing
education

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

1,526

Safety education

688 Danger・risk simulation education

1,258

Employee education

198 newly appointed chief education,

New graduate/mid-career entry/
mid-level employee training,112

on-site supervisor education
Other education

Total

－

Entrusted education from externalsources

1,897

－

3,605

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

17

・The following is the explanation of NISSO's educational achievements.
・With the spread of COVID-19, educational achievements have decreased due to the situation
where real, hands-on training has had to be suppressed. However, the needs for equipment
maintenance personnel from clients have not declined, and we have been receiving such orders
steadily.
・In addition, NISSO has devised alternative training-styles during the COVID-19 pandemic, where
staff can utilize on-line training without having to participate in group training. As a result, although
our training achievements have decreased, we have gradually been able to increase our
educational output.

17

Other Businesses Business Revenue
Points●Results of Other Businesses• Operating loss was 21 million yen, an
improvement from 2Q (which was at -39
million yen).
• Although the number of residents in nursing
care facilities Buildings 1~5 decreased, thenumber of residents in Building 6, which
opened in 2018, increased steadily.
• There was no change in the total number ofresidents across all facilities.

FY 3/20 3Q
Results% of Total（Unit: Million yen）

FY 3/21 3Q
Results

Year-on-Year% of Total

Increase(Decrease)% Change

Net sales

2,068

100.0％

2,220

100.0%

152

7.4%

Expenses

2,084

100.8％

2,242

101.0%

158

7.6%(0.8％)(21)(1.0%)－－

Operatingprofit (loss)(16)(Unit: # of residents)

Number of facility residents[Bldg.1-5] (capacity:308)
300
200

# of
residents

Occupancy
rate[Bldg.6] (capacity:94)

299

297

298

97.1%

96.4%

96.8% 96.8%

298

292
94.8%

80

90%

59

20

40%
Dec'19-end Mar'20-end Jun'20-end Sep'20-end Dec'20-end

75

60
40

100
0

73

77.7%

79.8%

84

89.4%

90
95.7%

90%

62.8%
40%

0

Dec'19-end Mar'20-end Jun'20-end Sep'20-end Dec'20-end

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

18

・The following is the explanation of Other Businesses.
・The deficit has been gradually shrinking. The reason for this is that the capacity for Building 6 is
94 residents, but it was once at full capacity.
In the future, since the number of residents in Building 6 will be maintained at about 90 to 92, andit has turned into a completely profitable structure, we will be able to steadily generate earnings inthis segment hereafter.

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3

Future Prospects (FY 3/2021)

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19

19

FY 3/2021 Revision of Full-year Consolidated Forecasts
Based on recent performance trends, NISSO has revised the Full-year Consolidated Forecast for FY 3/2021(April 1, 2020 ~ March 31, 2021). (Announced on January 19, 2021)■FY 3/2021 Full-year Consolidated Forecast (April 1, 2020 ~ March 31, 2021)
Previous Forecast(announced
Nov. 6, 2020)
Forecast

Net sales

% of
Total

67,000 100.0%

Present Revised
Forecast
Forecast

% of
Total

Change from
Previous Forecast
Increase(Decrease)% Change

68,000 100.0%

1,000

1.5%

(Unit: Million yen)

FY 3/20
Results
Results

% of
Total

74,966 100.0％

Operatingprofit

1,800

2.7%

2,400

3.5%

600

33.3%

3,061

4.1％

Ordinary
profit

2,100

3.1%

2,750

4.0%

650

31.0%

3,149

4.2％

Profitattributableto owners ofparent

1,300

1.9%

1,700

2.5%

400

30.8%

2,033

2.7％

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

20

・The following is the explanation of the Full-year Consolidated Forecasts.
・Net sales were revised from 67.0 billion yen to 68.0 billion yen, and operating profit was revised
from 1.8 billion yen to 2.4 billion yen. Although we had expected that the recovery might beslowed due to the impact of COVID-19 and lockdowns overseas, the forecasts have been revised
as a result of strong trends in devices, mainly in the automobiles and semiconductor industries.
However, NISSO does not anticipate the easing of the securing of human resources for new
growth strategies, investments in education, M&A, and system investments for DX, or digitaltransformation. Based on this assumption, we believe that a(n) (operating) profit of 2.4 billion yen
can be fully expected.

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4
4

TopicsCopyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

21

21Capital and Business Alliance with CrossLink Co., Ltd.
NISSO resolved to form a capital and business alliance with CrossLink Co., Ltd., at the Board of Directors' Meeting
held on January 19, 2021.
Purpose of Business Alliance"HR Cross", a web-based human resources management system provided by CrossLink Co., Ltd., which is jointly funded by 8
manufacturing-related human resources companies, enables client companies to communicate with each dispatching company online, and realizes centralized management of all processes from recruitment, contracts, management and evaluation of dispatchedstaff, and billing to client companies.
In the future, this system will be made open, or freely available, in order to encourage its introduction to each manufacturing
dispatching company, while aiming for it to become a de facto standard for electronic transactions in the manufacturing-related
human resources dispatching industry, with the aim for it to become a single point of contact between the dispatching companies
and each client company.

【Company Overview】(1) Company name

CrossLink Co., Ltd.

(2) Location

Shin Yokohama Center Bldg. 2F, 2-5-15 Shin Yokohama, Kohoku-ku, Yokohama, Kanagawa(3) Representative

CEO Ryo Emoto(4) Business description

・Support for construction of in-house job sites and web marketing・Operation of "Cross Learning", an e-learning service dedicated to career enhancement educationand training
・Consulting support for career enhancement education and training(5) Capital

105 Million JPY (incl. capital reserves)(6) Date of establishment

April 8, 2013※For more information, please refer to the "Notice of Capital and Business Alliance with CrossLink Co., Ltd." announced on January 21, 2021.
Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

22

・The following is the explanation of NISSO's capital and business alliance with CrossLink Co., Ltd.
・Until recently, human resources dispatching companies have handled attendance management,such as time cards, in their own formats. Also, in companies that utilize a large amount of humanresources, the amount of paperwork has become voluminous, and the management of personnel
and contracts has become complicated. In addition, there has been expectations for standardized
system development, such as the construction of a human resources evaluation system, that
corresponds to "Equal Pay for Equal Work".
・Therefore, we will make open, or freely available, a system (HR Cross) that will be able tocentrally manage the receiving of dispatching orders on-line, provided by CrossLink Co., Ltd.,
which jointly funded by NISSO and 7 companies in the same industry. We will encourage theintroduction of this system to each manufacturer and manufacturing human resources dispatchingcompany, and aim for it to become a de facto standard for electronic transactions in the
manufacturing-related human resources dispatching industry.

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Celebrating NISSO’s 50 th Anniversary
On February 3, 2021, NISSO celebrated the milestone of the 50th Anniversary of our founding. We would like to express
our heartfelt gratitude to all of you for your continued support and kindness.
For All of Tomorrow
In order to move forward into the future with our clients and the working people, it is essential
to be a sustainable functional body. It is our mission to implement thorough health and safety
management in the working environment and to realize Decent Work, or the securing of goodworking conditions for all.
Regardless of what era we are in, we will never forget to return to the origins of our founding
philosophy of "Nurturing and Bringing Out the Best in People". It is not just about education, but
we believe that it is important for people to be aware of their talents and capabilities throughtheir work, that their motivations and values are always linked to their accomplishments, andthat it is important to be able to return the results to society.
We firmly believe that the essence of human resources services and the significance of NISSO's
existence is to guide and direct this scheme to all working people.
We look forward to your continued support and guidance in the future.
Ryuichi Shimizu
Chairman, President, CEO &Representative Director
NISSO CORPORATION

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

23

・On February 3, 2021, NISSO celebrated the 50th Anniversary of our founding. To celebrate our50th Anniversary, our original plans were to hold events, etc. However, due to the COVID-19
pandemic, in its stead, we would like to take this opportunity to convey our heartfelt gratitude to
our shareholders, clients, and the working people in a non-contact manner.

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5

Shareholder Return Policy

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24

24

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)

41.3%

(Unit: %)
45%
40%

27.7%

35%

30.0%

15.0

10.0

5.0

30%

25.00
Yen

• Due to the upward revision of the Full-year
Consolidated Forecast, the expected dividend pershare (previous forecast: 11.53 yen) has been revised
to 15.10 yen.
• In addition, a 50th Anniversary Commemorative
Dividend of 5.00 yen will be implemented.
• As a result, the commemorative dividend of 5.00 yen
will be added to the ordinary dividend of 15.10 yen,and the year-end dividend forecast will be 20.10 yen.

40.0%

25.0

20.0

FY 3/2021 Dividend Forecast

Dividend (left axis)

30.0

20.10
Yen

18.50
Yen

25%
20%
15%

10.50

10%

Yen

5%
0.0

FY 3/2018

FY 3/2019

FY 3/2020

FY 3/2021(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 amountafter the stock split.

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

25

・The following is the explanation of the Shareholder Return Policy.
・Due to the revisions of our year-end earning forecasts, we expect a dividend of 20.10 yen, with adividend payout ratio of 30%, which includes an ordinary dividend of 15.10 yen, in addition to a50th Anniversary commemorative dividend of 5.00 yen.

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6Supplementary Materials

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

26

26

Consolidated Balance Sheet
Mar. 2020-end
Amount% of Total(Unit: Million yen, ％)Dec. 2020-end
Amount% of Total

Increase(Decrease)

15,622

69.5

14,28467.0(1,338)Cash and deposits

6,365

28.3

6,352

29.8

(12)

Notes and accounts receivable - trade

8,434

37.5

7,094

33.3

(1,339)

6,871

30.5

7,034

33.0

162

4,754

21.1

4,718

22.1

(36)
(18)

Current assets

Non-current assets
Property, plant and equipment

377

1.7

358

1.7

1,739

7.7

1,956

9.2

217

22,494100

21,318100(1,175)

9,279

41.3

7,651

35.9

(1,627)

4,648

20.7

4,444

20.9

(203)

Income taxes payable

812

3.6

84

0.4

(727)

Provision for bonuses

879

3.9

486

2.3

(392)

Non-current liabilities

1,319

5.9

1,314

6.2

(4)

623

2.8

520

2.4

(103)

Total liabilities

10,598

47.1

8,965

42.1

(1,632)

Shareholders' equity

11,97453.2

12,42958.3

455

Total net assets

11,89552.9

12,352

57.9

456

Total liabilities and net assets

22,494100

21,318100(1,175)Intangible assets
Investments and other assets
Total assets
Current liabilities
Accrued expenses

Long-term loans payable

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

Point①Reduction due to reduced operations
Due to the reduction of operations of
manufacturing-related human resources
services, "notes and accounts receivable(trade)", etc., of current assets and "accrued
expenses", etc., of current liabilities decreased.
②Investments
Due to equity investment associated withthe business alliance, "investments and otherassets" of non-current assets increased.
③Tax payments
Due to income taxes and other tax
payments, "income taxes payable", etc., ofcurrent liabilities decreased.
④Bonus payments
Due to bonus payments, "provision forbonuses" of current liabilities decreased.
⑤Overall
As a result of the above, total assets
decreased by 5.2%, total liabilities decreased
by 15.4%, total net assets increased by 3.8%,
and equity ratio increased by 5.1% to 57.9%
compared to the end of the previous fiscal
year.

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27

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 theforward-looking statements described due to changes in various factors.

For future IR-related inquiries

PR・IR Division, Corporate Planning Department, NISSO CORPORATION
TEL

045-777-7630

E-mailir@nisso.co.jp

URL

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

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