FY 3/2020

Financial Results
Briefing Materials
May 12, 2020

TSE 1 Code: 6569

NISSO CORPORATION

Summary■ Results for FY 3/2020・Consolidated results for FY 3/2020: Increased revenue and profits
year-on-year (ordinary profit)
・Automobiles-related industries remained firm, but decreased
partially from 2H onwards
・Electronic devices-related industries have not yet reached full-scale
recovery・Although the effects of the spread of the new coronavirus (COVID-19)
began to occur, its impact on the financial results for FY 3/2020
were limited■ Earnings Forecast for FY 3/2021
Due to the difficulty of reasonably calculating the effects of the spread of
COVID-19 at this time, the earnings forecast for FY 3/2021 is undecided
Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

1CONTENTS

1. Financial Results Summary for FY 3/2020
１-１ Overview of Activities
１-２ Future Prospects
2. Shareholder Return Policy
3. Supplementary Materials

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved2

1.

Financial Results Summary for FY 3/2020

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved3

FY 3/2020 Non-consolidated Financial Results Highlights
Although net sales in the automobiles-related industries were strong in 1H, there was some decline in 2H. The electronic
devices industry did not yet reach full-scale recovery, and overall operating conditions were sluggish, resulting in only a
9.0% increase YOY.
In terms of costs, although hiring costs and training expenses increased, efforts were made to control costs overall, and theoperating profit amount increased by 5.3% YOY.
（Unit: Million yen）

FY 3/19
Results
Net sales

FY 3/20% of Total

Results

Year-on-Year% of Total

Increase(Decrease)% Change

63,474100.0%

69,209100.0%

5,734

9.0%

11,60318.3%

12,492

18.1%

889

7.7%

SG&A expenses

8,641

13.6%

9,373

13.5%

732

8.5%

Operating profit

2,962

4.7%

3,119

4.5%

156

5.3%

Ordinary profit

2,943

4.6%

3,124

4.5%

181

6.2%

Profit

2,240

3.5%

2,030

2.9%

(210)

(9.4%)

Gross profit

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仮数字4

FY 3/2020 Quarterly Non-consolidated Financial Results Trends
Operating profit

Net sales（Unit: Million yen）

（Unit: Million yen）

17,77518,00017,47817389

16,962
16,542

16,000

仮数字

1,400

16,566

1,204
1,200

1,044

15,378

940

1,000

783

14,59014,00014,10014,101

663

703

800

577
468

600

12,657
12,325443

400

12,000

337

399

312

200

10,0000

１Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q ２Q ３Q ４Q【FY 3/18】【FY 3/19】【FY 3/20】

１Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q ２Q ３Q ４Q【FY 3/18】

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved【FY 3/19】【FY 3/20】

5

FY 3/2020 Consolidated Financial Results Highlights
General Human Resources Services Business: Continued development/expansion of skilled staff and Account Companies
strategies
Net sales increased due to increases in enrollment and net sales per capita. In terms of costs, hiring costs and training expenses
increased.
Other Businesses: Net sales increased due to an increase in the number of residents at Sweetpea Higashi Totsuka. In termsof costs, although personnel expenses increased due to an increase in the number of residents, deficits decreased from theprevious FY due to cost control at existing facilities（Unit: Million yen）
FY 3/19

Results

FY 3/20% of Total

Results

Year-on-Year% of Total

Increase(Decrease)% Change

Net sales

69,161100.0%

74,966100.0%

5,805

8.4%

Gross profit

12,23917.7%

13,115

17.5%

876

7.2%

SG&A expenses

9,370

13.5%

10,054

13.4%

684

7.3%

Operating profit

2,869

4.1%

3,061

4.1%

191

6.7%

Ordinary profit

2,895

4.2%

3,149

4.2%

254

8.8%

2,053

3.0%

2,033

2.7%

(20)

(1.0%)

Profit attributable toowners of parent

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6

FY 3/2020 Quarterly Consolidated Financial Results Trends
Net sales

Operating profit（Unit: Million yen）

（Unit: Million yen）

20,00018,814

18,435
17,942

19,24818,920

仮数字

1,400

17,983

1,165

1,200

1,039

16,784914

1,000

15,521 15,999
15,613800

15,000

767

717

650

14,166
13,907

542

600
381

400

396
304

477

372

200

10,0000

１Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q ２Q ３Q ４Q【FY 3/18】【FY 3/19】【FY 3/20】

１Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q ２Q ３Q ４Q【FY 3/18】

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved【FY 3/19】【FY 3/20】

7

1-１ Overview of Activities

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8

FY 3/2020 Financial Results Summary
Consolidated Financial Results
Net Sales 74,966 Million yen（+ 5.805 Million yen YoY）

Operating Profit 3,061 Million yen

 Net sales YOY increase: 8.4%
 Operating profit YOY increase: 6.7%（+ 191 Million yen YoY）

 Net sales in the automobiles industry were strong in 1H due to rises in demand, mainly
Net Sales by Industry （vs. YoY）
Automobiles…+ 26.0％
Electronic devices … (0.6%)

Quarter-end Number of Enrolled Staff
14,770 staff（+728 from 3/19-end）…+1,598 staff in FY 3/19

for the Account Company Group. In 2H, although there was some decline in demand,
new demand increased due to the introduction of new car models, and net sales
increased overall Due to stagnant product demand in the electronic devices industry, although there wereincreases from some companies, net sales decreased overall Although demand from automobiles-related companies remained strong, overall demand
increased moderately, and the number of enrolled staff at FY-end increased by 728 staff
from the previous FY-end The number of enrolled staff at FY-end increased by 132 from 3Q-end due to increased
demand from automobiles and semiconductor companies

Net Sales per Capita/Monthly
 Despite promoting the assignment of skilled staff to high unit-cost production sites, net
397 Thousand yen
sales per capita increased only slightly due to reduced hours of operation（+5.5 Thousand yen from FY 3/19-end）(overtime/holiday work)…+24.5 Thousand yen in FY 3/19
Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

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FY 3/2020 Net Sales by Industry (NISSO, Non-consolidated)
Trend of Net Sales Composition Ratios(Unit: Million yen)

Automobiles

Elec. devices

Prec.・Elec. machinery(1.5％)

10,808（17.0％）(5.7％)

10,650（15.3％）

9,061（13.1％）

9,605（15.1％）

Electronic devices

Other

修正後2

Although demand from some semiconductor
companies increased, many electronic componentsrelated companies have not been able to recover due
to the continued market slump, resulting indecreased net sales

17,82817,927(0.6％)（25.8％）

Automobiles（28.3％）

25,130+26.0％（39.6％）

FY 3/19

31,667（45.8％）

From 2H onwards, although production decreased atsome companies, overall net sales increased due tothe introduction of new car models in the AccountCompany Group and increased demand from autoparts companies

FY 3/20※（ ）= % of Total net sales, □ = % of Year-on-Year growth

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10

FY 3/2020 Quarterly Net Sales by Industry (NISSO, Non-consolidated)(Unit: Million yen)
Automobiles

Elec. devices

Prec.・Elec. machinery

2,890

2,607

2,690

（17.5％）（17.9％）

2,424（16.6％）

4,330（29.7％）

5,227（35.8％）

FY 3/191Q

2,404（17.0％）

2,427（14.3％）

2,619（15.8％）

2,348（14.2％）

Other

2,631

（15.9％）（14.4％）

2,317（13.3％）

2,190（12.5％）（12.3％）

4,633

4,487

（26.2％）

8,378

4,752

（25.4％）（24.5％）

4,057（26.6％）（25.7％）

6,891

7,375

7,505

7,757

8,026

（28.0％）

4,198

2,182

（14.3％）（15.6％）

4,646（15.4％）（15.9％）

2,371

2,563

2,774

2,680

4,650

（30.2％）

5,636（36.7％）

2Q※（ ）= % of Total net sales（40.6％）

3Q（44.6％）（45.3％）（44.6％）4Q

FY 3/20
1Q

2Q

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved（45.9％）（47.1％）

3Q

4Q
11

Trend of Net Sales per Capita（NISSO, Non-consolidated）
FY 3/2020 net sales per capita: 397 thousand yen (+5,500 yen from FY 3/2019)

Although assignments were promoted centering on the high unit-cost automobiles Account Company, overall net sales
per capita increased only slightly due to decreases in overtime and holiday work

Net Sales per Capita (monthly average conversion)（Unit: Thousand yen）

（Unit: Thousand yen）

450
400
350

344

397

391

367

450

410
400

300

+5,500 yen/year+24,500 yen
/year

250
200

Net Sales per Capita (quarterly)＋22,000 yen
/year

379

383

FY 3/19
1Q

2Q

392

391

4Q

FY 3/20
1Q

396

397

2Q

3Q

403

350

300

150
100

250

50
0

200
FY 3/17

FY 3/18

FY 3/19

FY 3/20

3Q

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4Q

12Trend of Enrolled Staff (NISSO, Non-consolidated)
Increase of 728 staff from previous
FY-end (+5.2%)

Trend of Number of Enrolled at FY-end（ Unit: # of Staff ）

14,77015,00014,042

14,00013,00012,44412,00011,00011,497
10,561
＋947
staff
/year

10,0009,000＋1,598
staff
/year

＋728
staff
/year

＋936
staff
/year

8,000
7,000

FY 3/16-end

FY 3/17-end

FY 3/18-end

FY 3/19-end

FY 3/20-end

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

In 4Q, since there were increases inenrollment centering on automobilesrelated companies that introduced new
car models, and semiconductor
companies, there was an increase of
132 staff from 3Q-end
In the automobiles industry, although
there were increases at companies that
introduced new car models, in somecases, there were decreases inenrollment due to decreases indemand in 2H
Although enrollment in somesemiconductor companies within theelectronic components and precision・
electrical machinery-related companies
increased, the number of enrolled staff
only increased slightly as demand forelectronic components remainedsluggish13

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

4,803

5,085

5,250

4,501
3,904

Number of skilled staff continued toincrease
Assigned mainly to automobiles andelectrical machinery Account Companies
in order to expand market shares

3,459
NISSO will continue to develop andassign skilled staff in order to accurately
respond to the needs of our clients

2,611
2,034
1,600

FY 3/18-

FY 3/19

FY 3/19

FY 3/19

FY 3/19-

FY 3/20

FY 3/20

FY 3/20

FY 3/20-end

Jun.-end

Sep.-end

Dec.-end

end

Jun.-end

Sep.-end

Dec.-end

end

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved14Account Companies (NISSO, Non-consolidated)Account Company Groups Net Sales and % of Total（Unit: Million yen）
35,00030,00030,69627,45425,00020,000

44.4%

44.6%
44.4%
44.2%

Account Companies net sales share ratio in FY 3/2020 was
44.4%(FY 3/2020 3Q: 43.8%)

44.0%
43.8%

43.3%

43.6%

15,00043.4%

10,000

43.2%
43.0%

5,000

42.8%

0

FY 3/19

FY 3/20

42.6%

FY 3/19

FY 3/20

Increase

Accounts
total(4 Groups)

27,45430,696

3,241

Total net sales

63,474

69,2095,734% of Total

43.3%

44.4%

1.1 pts

Automobiles Account Company Group･･･Although there wassome decrease in demand from 2H onwards, demand
increased from companies that introduced new car models,and net sales increased due to the active assignment ofskilled staff
Electrical machinery Account Company Group･･･Demand
from semiconductor companies remained strong, and net
sales increased due to assignment of personnel who
completed training
Electronic components Account Company Group･･･Although
there was some increase in demand, the market did notreach full-scale recovery, and net sales decreased overall

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15Turnover Rates (NISSO, Non-consolidated)
FY 3/2020

Overall turnover rate: 4.7%
Skilled staff turnover rate: 2.0%(+0.1 pts vs. FY 3/2019)(+0.5 pts vs. FY 3/2019)

Scale-downs of workplaces increased due to decreases in production, and although transfers to other workplaces were
promoted, turnover rates increased

Trend of Turnover rates（Unit：％）
7

5.9
6

5.5
4.9

5

4.6
Overall

4.4

4.6

4.7

4.7

1.8

1.9

2.0

4

Skilled
staff

3
2

1.7

1.5

FY 3/18

FY 3/191.5

10

FY 3/16

FY 3/17

FY 3/20 1Q FY 3/20 2Q FY 3/20 3Q

FY 3/20(Apr.~Sep.)(Apr.~Mar.)(Apr.~Jun.)
Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved(Apr.~Dec.)

16

Educational Achievements（NISSO, Non-consolidated）
FY 3/2020 Course-specific educational achievements(total # of participants)
Training course
3Q
4Q
name
(Oct ~ Dec) (Jan ~ Mar)FY 3/20
Total

Skilled staff
education

589

495 Standard skilled staff education

Accredited
vocational
training education

38

33 (Miyagi・Nagano Prefectures)

Manufacturing
education

1,526

Safety education

1,258

Basic
maintenanceeducation
Employeeeducation

82

112

3,605

(Reference)
FY 3/19
Total

1,960

2,522

200

318

3,895

3,047

853 Danger・risk simulation education

3,455

1,322

Basic equipment maintenance

373

167

New graduate/mid-career entry/midlevel employee training, newly appointed
85 chief education, on-site supervisor
education

496

292

Entrusted education from externalsources28

22

10,407

7,690

Accredited vocational training school

MONOZUKURI education, pre-assignment
1,340 training for manufacturing staff, mobile
education

187 education

Other education
Total（ Unit: # of Participants）

2,993

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Education participants increased
significantly from the previous
FY, and NISSO aimed to expand
market shares and performanceby enhancing the capabilities/
skills of workers
Basic maintenance education
participants for semiconductor
manufacturing companies,
where demand continues torise, are increasing
Hereafter, NISSO will continue
to actively invest in facilities andequipment in order to improve
the quality of our service
provisions as well as promoting
differentiation while confirming
client statuses and market
trends17Other Businesses Business Revenue
Results of Other Businesses
FY 3/19（Unit: Million yen）

FY 3/20
Results

Year-on-Year% of Total

Increase(Decrease)

Results% of Total% Change

Net sales

2,485

100.0%

2,796

100.0%

310

12.5%

Expenses

2,732

110.0％

2,850

101.9%

117

4.3%

Operating
loss

(247)

(10.0％)(54)(1.9%)

193

 Net sales increased due to the increase in the number of residents in Bldg. 6
 Full-year operating loss amounted to 54 million yen due to due to shortfalls in the number of residents and increased costs related
to the introduction of new nursing care workers aimed at stabilizing services
 The new coronavirus (COVID-19) began to affect the number of potential residents (facility previewers) and the home-nursing carebusiness from early-March

Trend in # of facility residents[Bldg.1-5] (capacity:308)

# of

入居者数
residents

300

299
297

295

295

95.7%

96.4%

297

96.4%

97.1%

[Bldg.6] (capacity:94)

Occupancy

入居率
rate

100%

297

96.4%

290

95%

90%
Mar '19-end Jun '19-end Sep '19-end Dec '19-end Mar '20-end

80
70
60
50
40
30
20
10
0

44
33
35.1%

46.8%

# of
入居者数
residents

48
51.0%

Occupancy
入居率
rate

73

100%

59

62.8%

77.7%50%

0%Mar '19-end Jun '19-end Sep '19-end Dec '19-end Mar '20-end

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18

1-2

Future Prospects

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19Future Market Trends and Responses※ The stagnation of the world economy seems to be unavoidable due to the spread of the new coronavirus(COVID-19)※ Uncertainty regarding future prospects is increasing, such as the impact on the production trends of
NISSO's clients in the domestic manufacturing industry and the recruitment of human resources due torestrictions on mobility
・Due to the difficulty of reasonably calculating the effects of the spread of COVID-19 at this time, theconsolidated earnings and dividend forecasts for FY 3/2021 have not yet been decided. NISSO willpromptly announce the disclosure of the consolidated earnings forecast as soon as it becomes possible
to in the future・The Medium-term Management Plan will also be announced when it becomes possible to disclose it【Effects of the spread of COVID-19 on NISSO's business】
・The decline in product demand caused by a decline in consumers' willingness to purchase products will impact clients' production
・The disruption of supply chains stagnates parts supply and will impact clients' production
・The occurrence of COVID-19-affected individuals at clients will impact production
・As a result on COVID-19's impact on clients, the scale of transactions may be reduced or transactions may be terminated. If it isprolonged, NISSO will continue to face a severe and challenging business environment for the foreseeable future

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved20

２. Shareholder Return Policy

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21

Shareholder Return Policy
NISSO 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 growth investments and strengthening the corporate structure that can respond to changes
in the business environment, and our basic policy is to continue to steadily redistribute profits to all of our shareholders.
Regarding the year-end dividend for FY 3/2020, the dividend amount per share (25.00 yen) announced on May 10, 2019, in the "Summary ofConsolidated Financial Results for FY 3/2019 [Japanese GAAP] (Consolidated) Dividend Forecast" is not scheduled to change.
The dividend forecast for FY 3/2021 is undecided at this time. NISSO will promptly announce it as soon as it becomes possible to disclose the earnings
forecast in the future.

Dividend（Yen）

Dividend

Dividend
payout ratio（％）

Dividend payout ratio

41.3 ％

30

40

25
20

45

27.7 ％

1535

30.0 ％

25.0円
18.5円

10

30

25
20
15

10.5円
5

10
5

0

0

FY 3/2018
FY 3/2019
FY 3/2020 (Forecast)
NISSO's common stock was split at a ratio of 2 shares for 1 share on May 1, 2019,
and the FY 3/2019 dividend payout shown above is the dividend payout amount after the stock split.
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22

3.

Supplementary Materials

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23Consolidated Balance Sheet(Unit: Million yen)Mar. 2019-end
AmountCurrent assets

Mar. 2020-end% of Total

Amount% of Total

Increase(Decrease)

14,17467.4

15,622

69.5

1,447

Cash and deposits

5,633

26.8

6,365

28.3

731

Notes and accounts receivable - trade

7,757

36.9

8,434

37.5

676

6,844

32.6

6,871

30.5

26

4,942

23.5

4,754

21.1

(188)

359

1.7

377

1.7

17

1,542

7.3

1,739

7.7

197

Total assets

21,019100

22,494100

1,474

Current liabilities

9,161

43.6

9,279

41.3

117

183

0.9

126

0.6

(56)

Accrued expenses

4,751

22.6

4,648

20.7

(103)

Non-current liabilities

1,312

6.2

1,319

5.9

6

750

3.6

623

2.8

(126)

Total liabilities

10,47449.8

10,59847.1

124

Shareholders' equity

10,53550.1

11,974

53.2

1,439

Total net assets

10,54450.2

11,895

52.9

1,350

Total liabilities and net assets

21,019100

22,494100

1,474

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

Current portion of long-term loans
payableLong-term loans payable

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

Point①Increases due to businessexpansionCash and deposits and notes andaccounts receivable - trade, etc., undercurrent assets increased as a result of
business expansion.
②Increase of investments andother assets
Investments and other assets
increased due to the acquisition of Nikon
Nisso Prime shares for the purpose ofpromoting the employment of older
human resources.
③Overall
As a result of the above, total assets
increased 7.0% YOY due to an increasein current assets. In addition, net assets
increased 12.8% YOY due to theincrease in shareholders' equity as aresult of the recording of profits, andequity ratio was at 52.9%.

24

Consolidated Statements of Cash Flows(Unit: Million yen)

FY 3/19

Point

FY 3/20
Increase(Decrease)

AmountAmount

CF from operating activities

2,565

1,922

(642)

CF from investing activities

0

(289)

(290)

CF from financing activities(2,215)

(901)

1,314

349

731

381

5,283

5,633

349

5,633

6,365

731

Net increase (decrease) in cash
and cash equivalents
Cash and cash equivalents at
beginning of period
Cash and cash equivalents at
end of period①Cash flows from operating activities
Revenues from increases in profit before
income taxes, depreciation and accrued
consumption taxes exceeded expenditures due
to increased account receivables and income
taxes paid, etc., as a result of businessexpansion, and revenues amounted to 1,922
million yen.

②Cash flows from investing activities
Expenditures for the purchase of securities
and capital investments exceeded the proceedsfrom the sale of cross-shareholdings, resulting
in expenditures of 298 million yen.

③Cash flows from financing activities
Due to the scheduled repayment of longterm loans payable and expenditure on
dividends, expenditures amounted to 901
million yen.

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25

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

〈For future IR-related inquiries〉
PR・IR Division,
Corporate Planning Department
NISSO CORPORATION
TEL： +81-45-777-7630
E-mail ： ir@nisso.co.jp
URL： https://www.nisso.co.jp/
Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

26