Consolidated Financial Results for FY 3/2023〔Japanese GAAP〕
May 11, 2023
Company NameNISSO CORPORATION

Securities Code

6569

Representative(Title)Stock Exchange Listing:Tokyo

ＵＲＬ https://www.nisso.co.jp/
Representative Director, President（Name）Ryuichi Shimizu& CEO
Managing Executive Officer & CFO （Name）Naoki Hayakawa ＴＥＬ +81-45-514-4323

Contact Person(Title)Scheduled date of Annual
Scheduled date ofGeneral Meeting ofJune 28, 2023
June 29, 2023
payment of dividend
Shareholders
Scheduled date of Annual
General Meeting ofJune 29, 2023
Shareholders
Preparation of supplementarymaterials for financial results: (Scheduled to be posted on the Company's website on May 11, 2023 (Thursday))Yes
Holding of financial results(Scheduled to be held for institutional investors and analysts on May 15, 2023
meeting: Yes(Monday))（All amounts are rounded down to the nearest million yen）

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 - March 31, 2023)(1) Consolidated results of operations（Percentages represent year-on-year changes）
Net sales
Fiscal year ended
Mar. 31, 2023
Mar. 31, 2022

Operating profit

Ordinary profit

Million yen%

Million yen%

Million yen%

90,827
77,549

17.1
13.7

2,268
2,087

8.7
(19.7)

2,349
2,369

(0.9)
(19.7)(Note) Comprehensive income

Fiscal year ended Mar. 31, 2023:
Fiscal year ended Mar. 31, 2022:

Yen

1,590 Million yen ( -6.3%)
1,696 Million yen (
0.4%)

47.69
49.90

(Reference) Equity in earnings of affiliates

11.5
13.0

Fiscal year ended Mar. 31, 2023:
Fiscal year ended Mar. 31, 2022:(2) Consolidated financial position
Total assets(Reference) Equity capital

(4.4)
6.5

Ratio of ordinary
Ratio of
Return on equity profit on total operating profit
assetson net sales
Yen
%
%
%

47.71
49.94

As of
Mar. 31, 2023
Mar. 31, 2022

1,622
1,696

Diluted net income pershare

Net income per share
Fiscal year ended
Mar. 31, 2023
Mar. 31, 2022

Profit attributable toowners of parent
Million yen%

Net assets

8.2
9.7

2.5
2.7

-55 Million yen
22 Million yen

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

30,092
27,46214,807
13,55948.4
49.4

435.20399.01

As of Mar. 31, 2023:
As of Mar. 31, 2022:

14,568 Million yen
13,559 Million yen(3) Consolidated cash flows
Cash flows from operating Cash flows from investing Cash flows from financing Cash and cash equivalents
activities
activities
activities
at end of period
Million yen
Million yen
Million yen
Million yen
Fiscal year ended
Mar. 31, 2023
2,285
(146)
(1,112)
9,800
Mar. 31, 2022
2,273
(1,538)2,164
8,773
2. Dividends
Dividend per share
1Q-end2Q-end3Q-endYear-end

Fiscal year ended
Mar. 31, 2022
Mar. 31, 2023

Yen
－
－

Yen
0.00
0.00

Yen
－
－

Yen
18.00
16.00

Total
Yen
18.00
16.00

Fiscal year ending
Mar. 31, 2024
(forecast)

－

0.00

－

20.50

20.50

Total
dividends
Million yen
611
544

Dividend payout
ratio(consolidated)%

Dividend on
equity(consolidated)
%

36.0
33.5

4.7
3.8

30.3

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 – March 31, 2024)(Percentages represent year-on-year changes)
Profit attributable to Net income
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Million yen
Million yen
Million yen
Yen%% Million yen%%
Full year
100,000
10.1
3,600
58.7
3,600
53.2
2,300
41.8
67.60

※

Notes

（１）Changes in the significant subsidiaries during the period (changes in specified subsidiaries resulting inchanges in the scope of consolidation: None

(Note) Although not applicable to changes in specified subsidiaries, Nikon Nisso Prime Corporation has
been included in the scope of consolidation from the current consolidated fiscal year.
（２）Changes in accounting policies and accounting estimates, and restatements① Changes in accounting policies due to revisions in accounting standards, etc.：② Changes in accounting policies other than ① above：③ Changes in accounting estimates：④ Restatements：（３）Number of outstanding shares（Common stock）① Number of shares outstanding at the
As of Mar.
end of the period （including
31, 2023
treasury shares）② Number of treasury shares at the end
As of Mar.
of the period
31, 2023

34,353,200

Shares328,480

Shares

34,003,932

SharesFiscal year

③ Average number of shares outstanding
during the period

ended Mar.

None
None
None
None

As of Mar.
31, 2022
As of Mar.
31, 2022

34,330,800 Shares

348,444

SharesFiscal year

31, 2023

ended Mar.

33,971,644 Shares

31, 2022（Reference）Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023（April 1, 2022 - March 31, 2023）(1) Non-consolidated results of operations（Percentages represent year-on-year changes）
Net sales
Fiscal year ended
Mar. 31, 2023
Mar. 31, 2022

Operating profit

Ordinary profit

ProfitMillion yen%

Million yen%

Million yen%

Million yen%

80,776
71,697

12.7
14.6

2,267
2,114

7.2
(19.4)

2,337
2,294

1.8
(19.9)

1,638
1,607

1.9
5.1

Net income per share
Fiscal year ended
Mar. 31, 2023
Mar. 31, 2022

Diluted net income per
share

Yen

Yen

48.19
47.33

48.17
47.30

(2) Non-consolidated financial position
Total assets
As ofMar. 31, 2023
Mar. 31, 2022
(Reference) Equity capital

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

26,98525,32913,935
12,89651.6
50.9

409.58379.50

As of Mar. 31, 2023:
As of Mar. 31, 2022:

13,935 Million yen
12,896 Million yen※

The current financial statement is not subject to audit procedures by certified public accountants or auditing
corporations.

※

Cautionary statement on the appropriate use of earnings forecasts, and other special items(Notes on forward-looking statements, etc.)
Earnings forecasts regarding future performance and other forward-looking statements in this material are based on
certain assumptions judged to be valid and on information that is currently available to the Company, and do not
represent promises by the Company that these figures will be achieved. In addition, actual results may differ
significantly due to a variety of factors. For prerequisite conditions and precautions regarding the usage of
earnings forecasts, please refer to “1. Overview of Operating Results, (4) Future Prospects” on P. 6 of theattachments.
（Supplementary materials for financial results and method of obtaining content for financial results briefing）
The Company is scheduled to hold a Financial Results Briefing for institutional investors and analyst on May 15,2023 (Monday).
The materials to be used for the financial results briefing for FY 3/2023 are scheduled to be posted on the
Company's website on the date of announcement of the financial results (May 11, 2023 (Thursday)).

○Contents of Attachments
１．Overview of Operating Results ………………………………………………………………………………………

2（１）Overview of Operating Results for the Current Fiscal Year ……………………………………………
（２）Overview of Financial Position for the Current Fiscal Year …………………………………………

2
5（３）Overview of Cash Flows for the Current Fiscal Year ……………………………………………………
（４）Future Prospects …………………………………………………………………………………………………

5
6（５）Basic Policy on Profit Distribution and Dividends for Current and Next Terms …………………
２．Basic Approach to the Selection of Accounting Standards ……………………………………………………

6
7

３．Consolidated Financial Statements and Notes ……………………………………………………………………
（１）Consolidated Balance Sheet ……………………………………………………………………………………

88（２）Consolidated Statements of Income and Comprehensive Income …………………………………………
Consolidated Statement of Income ……………………………………………………………………………

10
10

Consolidated Statement of Comprehensive Income ………………………………………………………… 11（３）Consolidated Statement of Changes in Equity ……………………………………………………………… 12（４）Consolidated Statement of Cash Flows ……………………………………………………………………… 14（５）Notes regarding Consolidated Financial Statements ……………………………………………………… 15（Notes regarding Going Concern Assumption） ………………………………………………………………
（Segment Information） ……………………………………………………………………………………………

15
15（Per Share Information） ………………………………………………………………………………………… 18（Significant Subsequent Events） ……………………………………………………………………………… 18- 1 -１．Overview of Operating Results（１）Overview of Operating Results for the Current Fiscal YearIn the current consolidated fiscal year (hereinafter, the " fiscal year under review"), in order toachieve its mission of "Creating opportunities and hopes for people to work", the Nisso Group(hereinafter, the Group") has been promoting initiatives "To transform into a corporate group withhigh-growth potential" by providing Human Resources Solution Services that support the growth ofcompanies and people, aiming to create workplaces where workers can feel motivated and grow, and toprovide services that can respond to social changes and changes in industrial structures.
The Group defines materiality (key issues) for the realization of its mission as "Creation of acomfortable workplace", "Responding to social changes and changes in industrial structures", and"Strengthening of governance". The Group aims to enhance corporate value through the creation ofsocial value by promoting digitization (digitalization) and actively investing in human resources,
maximizing employee satisfaction and customer/client satisfaction, providing high value-added
services, and strengthening management structures and internal controls.
The financial results for the fiscal year under review are as follows:(Unit: Million yen)

Net sales
Operating profit
Ordinary profit
Profit attributable toowners of parent

FY 3/2022(Apr. 1, 2021 –Mar. 31, 2022)
Amount(YoY)
77,549(up 13.7%)
2,087(down 19.7%)
2,369(down 19.7%)

FY 3/2023(Apr. 1, 2022 –Mar. 31, 2023)
Amount(YoY)
90,827(up 17.1%)
2,268
(up
8.7%)
2,349
(down 0.9%)

1,696

1,622

(up

6.5%)

(down 4.4%)

The Company (NISSO CORPORATION)
In the fiscal year under review, the NISSO CORPORATION (hereinafter, the "Company", nonconsolidated), which is the core of the Group, strengthened promotions related to recruitment inorder to meet the vigorous human resources needs of its clients, and the number of enrolled
manufacturing staff increased to 15,998 (up 1,053 from the end of the previous consolidated fiscal
year). In the automobiles-related industry, the impact of the shortage of semiconductors and otherparts have been on a gradual recovery trend, and as a result of steady human resources needs inanticipation of the normalization of production activities, net sales amounted to 36,375 million yen(up 15.0 % year-on-year). In the electronic devices-related industry, although sales growth slowed
due to inventory adjustments in electronic components and semiconductor memory, net sales amounted to24,545 million yen (up 11.9% year-on-year), partly due to the results of unit-cost negotiations. In
addition, by utilizing 8 training facilities nationwide and striving to develop human resources
the production of high value-added human resources, the total number of education and trainingforparticipants, including manufacturing staff and engineers, totaled 7,291 (6,104 in the same period of
the previous fiscal year), with net sales per capita of 426 thousand yen (compared with 415 thousand
yen in the same period of the previous fiscal year), and the Company's net sales increased by 12.7%
year-on-year.
Furthermore, in April 2023, the Company opened a training center in Kumamoto Prefecture, its 9th
location nationwide. At this facility, the Company aims to develop human resources who are ready touse actual semiconductor manufacturing equipment, and will contribute to the growth of not only thesemiconductor industry in Kyushu, but also the semiconductor industry throughout Japan.
In terms of profits, although there was an increase in the consumption of paid leave andcompensation for absence from work, due to the impact of the new coronavirus (hereinafter, "COVID19") and operational adjustments due to parts shortages, it was absorbed by an increase in net sales,
and the Company's operating profit increased by 7.2% year-on-year.

- 2 -The results of operations by segment are as follows:(General Human Resources Services Business）(Unit: Million yen)
FY 3/2022(Apr. 1, 2021 –Mar. 31, 2022)
AmountFY 3/2023(Apr. 1, 2022 –Mar. 31, 2023)
Amount(YoY)

Net sales
Manufacturing・Production Human
66,41273,091(up 10.1%)
Resources Services
Engineering Human Resources
5,670
8,627
(up 52.1%)
Services
Administrative Human Resources
2,447
2,279
(down 6.9%)
Services
Other Human Resources Services
64
3,819(up 5834.6%)
Total
74,59487,817(up 17.7%)
Segment profit
2,052
2,222
(up
8.3%)
(Note) As for net sales of Other Human Resources Services, net sales of Nikon Nisso Prime Corporation
have been recorded from the second quarter consolidated accounting period of FY 3/2023.

Manufacturing・Production Human Resources Services (NISSO CORPORATION, Vector Shinwa Co., Ltd.)In the Manufacturing・Production Human Resources Services, the Group is mainly engaged in
manufacturing dispatching and manufacturing contracting, and by strengthening its service provisionsystem to clients and strengthening its sales activities aimed at increasing orders, it has improved
efficiency and strengthened its "earning power".
During the fiscal year under review, despite strong demand for the automobiles-related industry,
the number of enrolled staff amounted to 14,586 (up 660 year-on-year), partly due to inventory
adjustments in electronic components and semiconductor memory. In addition, as a result of efforts toenhance various educational curriculums and strengthen communication in order to create a comfortableworkplace, the turnover rate of employed workers remained at a low level of 3.9% (which was at 3.9%in the corresponding period of the previous fiscal year). Furthermore, due to the effect of anincrease in enrollment and net sales per capita of 422 thousand yen (which was at 411 thousand yen in
the corresponding period of the previous fiscal year), net sales increased by 10.1% year-on-year.
Engineering Human Resources Services (NISSO CORPORATION, Vector Shinwa Co., Ltd.)In the Engineering Human Resources Services, the Group dispatches engineers mainly in the
manufacturing industry and provides SES (System Engineering Service), and has continued to expand its
high value-added areas and lay the groundwork for the next core business.
During the fiscal year under review, the number of enrolled engineers was 1,517 (up 412 year-onyear) by expanding educational opportunities for employed workers, and the turnover rate remained ata low level of 2.1% (which was at 1.9% in the corresponding period of the previous fiscal year).
Furthermore, due to the effect of an increase in enrollment and net sales per capita of 518 thousandyen (which was at 514 thousand yen in the corresponding period of the previous fiscal year), net
sales increased by 52.1% year-on-year.
Administrative Human Resources Services (Nisso Brain Co., Ltd.)In the Administrative Human Resources Services, the Group provides general office work dispatching
and BPO (Business Process Outsourcing), and is working to restructure services and develop new menus.
During the fiscal year under review, although the Group promoted recruitment activities centered on
public relations and customer attraction activities, due to sluggish growth in the number ofregistrants, the number of enrolled administrative dispatched staff amounted to 605 (down 64 year-onyear).
Other Human Resources Services (Nikon Nisso Prime Corporation, Nisso Pure Co., Ltd.)In Other Human Resources Services, the Group aims to build a business model that will enable older
employees and employees with disabilities to flourish.
On July 1, 2022, the Company acquired additional equity interest in Nikon Nisso Prime Corporation,- 3 -an equity-method affiliate, and made it a consolidated subsidiary. In addition to enhancing its humanresources dispatching business, the Nikon Nisso Prime is working to support the active participationof older employees, as well as developing, securing and building a structure for employment
opportunities where such employees can continue to work. The number of older employees employedduring the fiscal year under review was 598.
Nisso Pure Co., Ltd., a special-purpose subsidiary of the Company, aims to create a workplaceenvironment where diverse human resources can flourish. Rather than simply hiring employees withdisabilities, the Group is promoting activities that take advantage of the characteristics of eachindividual, such as being entrusted with light work by external clients, and aiming to coexist withlocal communities, including school officials, support organizations, and the government. The numberof employees with disabilities during the fiscal year under review was 205.
（Other Businesses）(Unit: Million yen)
FY 3/2022(Apr. 1, 2021 –Mar. 31, 2022)
AmountNet sales
Nursing Care・Welfare Services
Segment profit

FY 3/2023(Apr. 1, 2022 –Mar. 31, 2023)
Amount
(YoY)
2,963
36

3,031
48

(up
(up

2.3%)
31.9%)

Nursing Care・Welfare Services (Nisso Nifty Co., Ltd.)In the Nursing Care・Welfare Services, the Group provides facility nursing care and home-based
nursing care, and is working to restructure its provided services while developing new menus.
During the fiscal year under review, in the facility nursing care business, which is the mainstayof this service, the Group promoted Web previews and other activities on the premise of preventing
the spread of COVID-19 infections. The number of residents in the nursing care facilities was 380 (up16 year-on-year), and the occupancy rates at the nursing care facilities was 94.5% (which was at
90.5% in the corresponding period of the previous fiscal year). As a result, net sales increased by
2.3% year-on-year.
（Initiatives for Sustainability）
In order to achieve its mission of "Creating opportunities and hopes for people to work ", the Group
recognizes the importance of contributing to society and the environment through investment in"people", which is the driving force behind the Group.
In promoting activities related to sustainability, based on the "Sustainability Policy" formulated in
October 2021, the Group aims for sustainable business growth and promotes initiatives to realize asustainable society by establishing policies on human rights, labor, the environment, health and safety,
and ethics.
The Group defines “human resources development” and “diversity” as the most important factors inaiming for sustainable growth of its business. From the perspective of enhancing value, the Group will
improve the ratio of highly skilled human resources by developing human resources who can take on thechallenge of all possibilities in all fields. At the same time, the Group aims to create a workplace
where all employees can have dreams and a sense of fulfillment, and build a workplace where diverse
human resources can flourish. From the perspective of risk management, the Group recognizes the importanceof activities such as respect for human rights, the environment, safety and health, compliance, andlocal environmental conservation, and is promoting initiatives aimed at reducing various risks andcontributing to society.
With the goal of "achieving carbon neutrality (net-zero emissions) by 2050", the Company is also
promoting initiatives to combat climate change through its business. Through a series of humanresources services activities, the Company will work to protect the global environment and prevent
pollution, and by clarifying the financial impact of climate change on the Company, it will aim to
improve corporate resilience and realize the key issue of "creating a comfortable workplace".

- 4 -（２）Overview of Financial Position for the Current Fiscal Year
（Assets）
Current assets at the end of the fiscal year under review amounted to 21,747 million yen, which was
an increase of 2,679 million yen from the end of the previous consolidated fiscal year. This was
mainly due to an increase of 1,020 million yen in cash and deposits and an increase of 1,546 million
yen in accounts receivable (trade).
Non-current assets at the end of the fiscal year under review amounted to 8,344 million yen, which
was a decrease of 49 million yen from the end of the previous consolidated fiscal year. This was
mainly due to a decrease of 102 million yen in goodwill.
As a result, total assets amounted to 30,092 million yen, which was an increase of 2,629 million yen
from the end of the previous consolidated fiscal year.
（Liabilities）
Current liabilities at the end of the fiscal year under review amounted to 12,187 million yen, which
was an increase of 1,776 million yen from the end of the previous consolidated fiscal year. This was
mainly due to an increase of 737 million yen in accrued expenses and an increase of 336 million yen inprovision for bonuses.
Non-current liabilities at the end of the fiscal year under review amounted to 3,097 million yen,which was a decrease of 394 million yen from the end of the previous consolidated fiscal year. Thiswas mainly due to a decrease of 490 million yen in long-term loans payable.
As a result, total liabilities amounted to 15,284 million yen, which was an increase of 1,381
million yen from the end of the previous consolidated fiscal year.
（Net assets）
Total net assets at the end of the fiscal year under review amounted to 14,807 million yen, which
was an increase of 1,248 million yen from the end of the previous consolidated fiscal year. This was
mainly due to the recording of 1,622 million yen in profit attributable to owners of parent and 611
million yen in dividends of surplus.
As a result, the equity ratio was 48.4% (which was at 49.4% at the end of the previous consolidated
fiscal year).
（３）Overview of Cash Flows for the Current Fiscal Year
Cash flows for the fiscal year under review were as follows: Cash flows from operating activities
resulted in proceeds of 2,285 million yen, cash flows from investing activities resulted in expendituresof 146 million yen, and cash flows from financing activities resulted in expenditures of 1,112 million
yen.
As a result, cash and cash equivalents for the fiscal year under review increased by 1,026 million yen
to 9,800 million yen compared to the balance at the beginning of the current period.
The status and contributing factors of cash flows from operating, investing and financing activities
in the fiscal year under review are as follows:（Cash flows from operating activities）
Cash flows from operating activities amounted to proceeds of 2,285 million yen (compared to proceedsof 2,273 million yen in the previous consolidated fiscal year), as a result of proceeds of 2,349
million yen in profit before income taxes, which absorbed expenditures such as an increase in notes
and accounts receivable (trade) of 931 million yen.
（Cash flows from investing activities）
Cash flows from investing activities amounted to expenditures of 146 million yen (compared to
expenditures of 1,538 million yen in the previous consolidated fiscal year), as expenditures such as
160 million yen in purchase of securities, and 186 million yen in purchase of property, plant andequipment could not be absorbed by 251 million yen in proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation.
（Cash flows from financing activities）
Cash flows from financing activities amounted to expenditures of 1,112 million yen (compared toproceeds of 2,164 million yen in the previous consolidated fiscal year), which consisted of 490
million yen in repayments of long-term loans payable and 611 million yen in cash dividends paid.

- 5 -（４）Future Prospects
With regard to future prospects, in the Automotive Industry (automobile manufacturing and EV-related
manufacturing industry) which is the Group's focus industry, although there is concern that the impact of
production adjustments caused by the global shortage of semiconductors and other components will continue
to some extent, human resources needs are expected to remain strong in anticipation of the normalizationof parts procurement. In the Semiconductor Industry (semiconductor manufacturing industry), which theGroup is also focusing on, the effects of production adjustments due to excessive inventories in thememory field and other fields will continue, while a certain level of demand for power semiconductors forautomotive applications is expected to remain constant. In addition, in the Electronics Industry(electronic equipment manufacturing industry), while demand for components related to PCs and communicationequipment is expected to continue to decline due to significant linkages with the semiconductor industry,
production activities of manufacturers who are the Company's clients are expected to gradually recover
due to the demand for parts associated with environmental measures and automation of production sites.
Under such a business environment, in the General Human Resources Services Business, which is theGroup's core business, the Company will contribute to the growth of Japan's MONOZUKURI (manufacturing) byproviding high-quality services through training facilities nationwide by developing high value-added
human resources. In particular, with regard to the Semiconductor Industry, which is expected to grow overthe medium to long term, the Company will open its 9th Nisso Technical Center in Kumamoto, and willcontribute to the growth of the semiconductor industry in Japan by developing high value-added humanresources based on strong cooperative relationships with its clients.
In addition, in line with the 3-year Medium-term Management Plan, which was announced in August 2022
and started in FY 3/2023, the Company will pursue the possibility of M&A and building new partnerships totransform its business to the next core area of focus.
In Other Businesses, the Group will continue to improve the quality of the services provided at"Sweetpea", nursing care facilities such as fee-based nursing homes for the elderly located in 6 locations
throughout Yokohama, and promote the provision of nursing care services that customers can choose from.
In addition, the Group will continue to make efforts to improve its management structure by promoting
operational efficiency.
Based on the above, the Company expects full-year consolidated results for the fiscal year ending March
31, 2024, as follows: net sales of 100,000 million yen (up 10.1% year-on-year), operating profit of 3,600
million yen (up 58.7% year-on-year), ordinary profit of 3,600 million yen (up 53.2% year-on-year), andprofit attributable to owners of parent of 2,300 million yen (up 41.8% year-on-year).
※The above forecasts are based on information available as of the date of release of this document, andactual results may differ from forecasts due to various factors in the future.
（５）Basic Policy on Profit Distribution and Dividends for Current and Next Terms
The Company considers the redistribution of profits to shareholders and the enhancement of corporate
value as key management issues, taking into consideration the balance between securing funds for growthinvestments and strengthening the corporate structure that can respond to changes in the businessenvironment. In addition, by setting the consolidated dividend payout ratio of 30% or more as a generalstandard, the Company's basic policy is to continue to steadily redistribute profits to all of its
shareholders.
Furthermore, although the Company considers the year-end dividends as a general principle, theArticles of Incorporation stipulate that it is possible to distribute dividends of surplus twice a year
as interim dividends and year-end dividends in order to enhance the redistribution of profits toshareholders. As the decision-making body, the Board of Directors is determined to make it possible toflexibly carry out the payment of interim dividends while taking into consideration performance trends
and other factors.
In accordance with the above policy, the dividend for the fiscal year ended March 31, 2023 isscheduled to be a payment of 16.00 yen per share (consolidated dividend payout ratio of 33.5%).
In addition, for the fiscal year ending March 31, 2024, the Company is scheduled to pay a dividend of
20.50 yen per share (consolidated dividend payout ratio of 30.3%).

- 6 -２．Basic Approach to the Selection of Accounting Standards
Since many of the stakeholders are domestic shareholders, creditors, business partners, etc., and due tothe lack of funding from overseas, the Group has applied generally accepted accounting principles inJapan.

- 7 -３．Consolidated Financial Statements and Notes（１）Consolidated Balance Sheet(Unit: Million yen)
FY 3/22（As of Mar. 31, 2022）
AssetsCurrent assets
Cash and deposits
Electronically recorded monetary claims operating
Accounts receivable - trade
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Leased assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 8 -FY 3/23（As of Mar. 31, 2023）

8,779

9,800

66

116

9,324
650
251
(4)
19,068

10,870655
309(5)21,747

5,259(3,488)
1,771
2,670
544
(408)
136
4,578

5,368
(3,572)
1,795
2,670
655
(459)
195
4,660

8
970
687
1,667

1
868
644
1,514

500
649
575
102
350
(28)
2,149
8,394
27,462

343
643
765
77
366
(27)
2,169
8,344
30,092

(Unit: Million yen)
FY 3/22（As of Mar. 31, 2022）
Liabilities
Current liabilities
Current portion of long-term loans payable
Lease obligations
Accrued expenses
Income taxes payable
Accrued consumption taxes
Contract liabilities
Provision for bonuses
Provision for shareholder benefit program
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets- 9 -FY 3/23（As of Mar. 31, 2023）

490
11
5,381
395
1,827
247
1,058
63
934
10,411

490
2
6,119
555
2,104
245
1,395
104
1,169
12,187

2,509
1
120
473
386
3,492
13,903

2,019
5
109
583
380
3,097
15,284

2,016
2,368
9,454
(298)
13,5402,016
2,367
10,460(281)
14,563

0
17

0
3

18

4

13,55927,462239
14,80730,092

（２）Consolidated Statements of Income and Comprehensive Income（Consolidated Statement of Income）(Unit: Million yen)
FY 3/22(Apr. 1, 2021 –Mar. 31, 2022)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted forusing equity method
Subsidy income
House rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted forusing equity method
Rent expenses
Compensation for damage
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on sales of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent- 10 -

FY 3/23(Apr. 1, 2022 –Mar. 31, 2023)
77,54964,59912,95010,863
2,087

90,82776,272
14,554
12,286
2,268

3
0

3
0

22

-

244
40
33
343

142
40
39
226

1

10

-

55

17
0
41
60
2,369

21
24
32
145
2,349

38
38
2,331
753
(118)
635
1,696
1,696

2,349
845
(101)
744
1,604
(17)
1,622

（Consolidated Statement of Comprehensive Income）(Unit: Million yen)
FY 3/22(Apr. 1, 2021 –Mar. 31, 2022)
ProfitOther comprehensive income
Remeasurements of defined benefit plans, netof taxShare of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests- 11 -

FY 3/23(Apr. 1, 2022 –Mar. 31, 2023)
1,696

1,604

0

(14)

(0)

(0)

(0)
1,696

(14)
1,590

1,696

1,607

-

(17)

（３）Consolidated Statement of Changes in Equity
FY 3/22 (Apr. 1, 2021 - Mar. 31, 2022)(Unit: Million yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes of items during
periodIssuance of new shares exercise of shareacquisition rights

Capital surplus

2,015

Retained earnings

2,368

8,674

Total shareholders'equityTreasury shares
(313)

(233)
2,015

2,368

0

0

8,440

12,744
(233)

(313)

12,5110

Dividends of surplus

(682)

(682)

Profit attributable toowners of parent

1,696

1,696

Disposal of treasury
sharesIncrease of consolidated
subsidiaries - noncontrolling interests
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period

(0)

15

15
-

0

(0)

1,013

15

1,029

2,016

2,368

9,454

(298)

13,540

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance

Foreign currencytranslation
adjustment

Remeasurements ofdefined benefit
plans

Total accumulated
othercomprehensive
income1

17

18

Non-controllinginterests

Total net assets-

12,763
(233)

1

17

18

-

Changes of items during
periodIssuance of new shares exercise of shareacquisition rights

12,5290

Dividends of surplus(682)

Profit attributable toowners of parent

1,696

Disposal of treasury
sharesIncrease of consolidated
subsidiaries - noncontrolling interests
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period

15
-

-

(0)

0

(0)

(0)

0

(0)

-

1,029

0

17

18

-

13,559- 12 -(0)

FY 3/23 (Apr. 1, 2022 - Mar. 31, 2023)(Unit: Million yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes of items during
periodIssuance of new shares exercise of shareacquisition rights

Capital surplus

2,016

Retained earnings

2,368

9,454

Total shareholders'equityTreasury shares(298)

13,540
-

2,016

2,368

0

0

9,454

(298)

13,5401

Dividends of surplus

(611)

(611)

Profit attributable toowners of parent

1,622

1,622

Disposal of treasury
sharesIncrease of consolidated
subsidiaries - noncontrolling interests
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period

(1)

(4)

17

11
-

0

(0)

1,006

17

1,023

2,016

2,367

10,460(281)

14,563

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance

Foreign currencytranslation
adjustment

Remeasurements ofdefined benefit
plans

Total accumulated
othercomprehensive
income01718

Non-controllinginterests

Total net assets-

13,559
-

0

17

18

-

Changes of items during
periodIssuance of new shares exercise of shareacquisition rights

13,5591

Dividends of surplus(611)

Profit attributable toowners of parent

1,622

Disposal of treasury
sharesIncrease of consolidated
subsidiaries - noncontrolling interests
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period

11
239

239

(0)

(14)

(14)

(0)

(14)

(14)

239

1,248

0

3

4

239

14,807- 13 -(14)

（４）Consolidated Statement of Cash Flows(Unit: Million yen)
FY 3/22(Apr. 1, 2021 –Mar. 31, 2022)
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Decrease (increase) in net defined benefit asset
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for shareholder
benefit program
Loss (gain) on sales of property, plant and equipment
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using
equity method
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in lease and guarantee deposits
Increase (decrease) in accrued expenses
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes refund
Income taxes paid
Cash flows from operating activities
Cash flows from investing activities
Purchase of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Other, net
Cash flows from investing activities
Cash flows from financing activities
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of lease obligations
Proceeds from issuance of common shares
Cash dividends paid
Cash flows from financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 14 -

FY 3/23(Apr. 1, 2022 –Mar. 31, 2023)

2,331
287
51
7
103
(25)
128

2,349
278
107
0
220
3
109

63

41

38
(3)
1

(3)
10

(22)

55

(1,230)

(931)

29
812
649
(62)
3,159
3
(0)
2
(891)
2,273

22
413
170
166
3,013
3
(10)
12
(732)
2,285

(209)
(87)
11
(40)

(160)
(186)
(33)

(1,212)

-

-

251

0
(1,538)

(18)
(146)

3,000
(97)
(55)
0
(682)
2,164

(490)
(11)
1
(611)
(1,112)

-

-

2,899
5,873
8,773

1,026
8,773
9,800

（５）Notes regarding Consolidated Financial Statements（Notes regarding Going Concern Assumption）
Not applicable.
（Segment Information）【Segment Information】
１．Overview of reportable segments
he reportable segments of the Group are constituent units for which separate financial
information is available, and are evaluated regularly by the Board of Directors to determine
the allocation of management resources and assess performance.
The Group is comprised of segments classified according to the content of the businesses, andits 2 reportable segments are the "General Human Resources Service Business" and "Other
Businesses".
２．Calculation methods for net sales, profits or losses, assets, liabilities, and other items
for each reportable segment
The accounting methods used for reportable segments are the same as those adopted for the
preparation of the consolidated financial statements.
Profits for reportable segments are based on operating profit figures.
Inter-segment sales or transfers are based on prevailing market prices.
３．Information related to net sales, profits or losses, assets, liabilities, and other items foreach reportable segment
FY 3/22 (Apr. 1, 2021 - Mar. 31, 2022)(Unit: Million yen)Amount recordedon Consolidated
Statement of
Income（Note）２

Reportable Segments
General Human
Resources
Service Business

Other
Businesses

Adjustments（Note）１

Subtotal

Net sales

74,586

2,963

77,549-77,549

7

0

7

(7)

-

74,594

2,963

77,557(7)

77,549Segment profit

2,052

36

2,089

(2)

2,087

Segment assets

26,376

1,781

28,158(695)

27,462

Depreciation

274

5

279

7

287

Amortization of goodwill

51

-

51

-

51

Investment in equity-method
affiliates

465

-

465

-

465

-

117

-

117

Sales to external clientsInter-segment sales ortransfers
Total

Other items

Increase in property, plantand equipment and117
intangible assets（Note）１．The adjustments are as follows:（１）The adjustments on segment profit of (2) million yen are eliminations of inter-segment
transactions.
（２）The adjustments on segment assets of (695) million yen are eliminations of transactions.
（３）The adjustments on depreciation of 7 million yen is the depreciation not included insegment profit.
２．Segment profit is adjusted with operating profit on the Consolidated Statement of Income.

- 15 -

FY 3/23 (Apr. 1, 2022 - Mar. 31, 2023)(Unit: Million yen)Amount recordedon Consolidated
Statement of
Income（Note）２

Reportable Segments
General Human
Resources
Service Business

Other
Businesses

Adjustments（Note）１

Subtotal

Net sales

87,8103,017

90,827-90,827

7

14

22

(22)

-

87,817

3,031

90,849(22)

90,827

Segment profit

2,222

48

2,270

(2)

2,268

Segment assets

28,953

1,825

30,779(687)

30,092

Depreciation

265

5

270

7

278

Amortization of goodwill

107

-

107

-

107

Investment in equity-method
affiliates

152

-

152

-

152

9

293

-

293

Sales to external clientsInter-segment sales ortransfers
Total

Other items

Increase in property, plantand equipment and284
intangible assets（Note）１．The adjustments are as follows:（１）The adjustments on segment profit of (2) million yen are eliminations of inter-segment
transactions.
（２）The adjustments on segment assets of (687) million yen are eliminations of transactions.
（３）The adjustments on depreciation of 7 million yen is the depreciation not included insegment profit.
２．Segment profit is adjusted with operating profit on the Consolidated Statement of Income.
【Related Information】
FY 3/22 (Apr. 1, 2021 - Mar. 31, 2022)
１．Information by product and service(Unit: Million yen)
Manufacturing・Production Human
Resources
Services

Sales to externalclients

66,412Engineering

Administrative

Other Human

Human Resources Human Resources

Resources

Services

Services

5,670

Welfare Services

Services

2,442

Nursing Care・

61

Total

2,963

77,549

２．Information by region(1）Net sales
Since net sales to external clients in Japan exceed 90% of net sales on the consolidated
statement of income, the description has been omitted.
(2）Property, plant and equipment
This has not been listed since there are no property, plant and equipment locatedoutside Japan.
３．Information for each main client
Since there is no other party that accounts for 10% or more of the net sales on the
consolidated statement of income, this has not been listed.

- 16 -

FY 3/23 (Apr. 1, 2022 - Mar. 31, 2023)
１．Information by product and service(Unit: Million yen)
Manufacturing・Production Human
Resources

Administrative

Other Human

Human Resources Human Resources

Resources

Services

Services

Sales to externalclients

Engineering

73,091Services

8,627

Services

2,274

Nursing Care・Welfare Services

3,816

Total

3,017

90,827

２．Information by region(1）Net sales
Since net sales to external clients in Japan exceed 90% of net sales on the consolidated
statement of income, the description has been omitted.
(2）Property, plant and equipment
This has not been listed since there are no property, plant and equipment locatedoutside Japan.
３．Information for each main client
Since there is no other party that accounts for 10% or more of the net sales on the
consolidated statement of income, this has not been listed.
【Information on impairment loss on non-current assets by reporting segment】
Not applicable.
【Information on amortization of goodwill and unamortized balances by reporting segment】
FY 3/22 (Apr. 1, 2021 - Mar. 31, 2022)(Unit: Million yen)
General Human Resources
Service Business

Amortization for current
periodBalance at end of current
periodOther Businesses

Total

51

-

51

970

-

970

FY 3/23 (Apr. 1, 2022 - Mar. 31, 2023)(Unit: Million yen)
General Human Resources
Service Business

Amortization for current
periodBalance at end of current
periodOther Businesses

Total

107

-

107

868

-

868

【Information on negative goodwill gains by reporting segment】
Not applicable.

- 17 -

（Per Share Information）
FY 3/22(Apr. 1, 2021 –Mar. 31, 2022)

FY 3/23(Apr. 1, 2022 –Mar. 31, 2023)

Net assets per share

399.01 Yen

435.20 Yen

Net income per share

49.94 Yen

47.71 Yen

Diluted net income per share

49.90 Yen

47.69 Yen

(Note) The basis for the calculation of net income per share and diluted net income per share is as follows:

FY 3/22(Apr. 1, 2021 –Mar. 31, 2022)

FY 3/23(Apr. 1, 2022 –Mar. 31, 2023)

1,696

1,622

-

-

1,696

1,622

33,971,644

34,003,932--

25,32012,892（25,320）（12,892）－－

Net income per share
Profit attributable to owners of parent（Million yen）
Amount not attributable to commonshareholders（Million yen）
Profit attributable to owners of parent
related to common shares（Million yen）
Average number of shares of common stockduring the period（Shares）

Diluted net income per share
Profit attributable to owners of parent
adjustment（Million yen）
Increase in number of common stock(Shares)（Share acquisition rights（Shares））
Summary of dilutive shares not included in
calculation of diluted net income per share
due to absence of dilutive effect（Significant Subsequent Events）
Not applicable.

- 18 -