FY 3/2021

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

NISSO CORPORATIONTSE 1 Code: 6569

May 14, 2021

Summary
FY 3/2021 Results●Decreased revenue and profits year-on-year●Demand for electronic devices was strong●Human resources needs recovered overall●Impact of the earthquake and semiconductor shortages was limited

FY 3/2022 Consolidated Earnings Forecast●Expected increase in revenue and profits due to recovery in human resources demand●Will invest to transform into a high-growth corporate group

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

1CONTENTS

1

FY 3/2021

Financial Results Summary2

FY 3/2021

Overview of Activities

3

Future Prospects (FY 3/2022）

4

Shareholder Return Policy

5Supplementary Materials

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved2

１

FY 3/2021

Financial Results Summary

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved3

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

PointsFY 3/20• Revenue and profits decreased, partly
due to a decrease in enrollment.

Results

FY 3/21% of Total

Results

Year-on-Year% of Total

Increase(Decrease)% Change• Ordinary profit decreased by only 6.4%,
partly due to subsidy income.

Net sales

74,966100.0%

68,213100.0%(6,752)(9.0%)• Operations (number of working days,
overtime hours, holiday work, etc.)stabilized, and net sales in 4Q alone
increased from 3Q.

Gross profit

13,11517.5%

11,78717.3%(1,328)(10.1%)

SG&A
expenses

10,054

13.4%

9,188

13.5%

(866)

(8.6%)

Operatingprofit

3,061

4.1%

2,599

3.8%

(461)

(15.1%)

Ordinary
profit

3,149

4.2%

2,949

4.3%

(200)

(6.4%)

Profitattributableto owners ofparent

2,033

2.7%

1,592

2.3%

(440)

(21.7%)• In Other Businesses, the number ofresidents remained stable, resulting inincreased revenue and profits.

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

4

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

（Unit: Million yen）

Net sales
20,00018,435
17,942

Operating profit

19,24818,92018,814

1,400

17,771
17,47017,983

16,784

16,557
16,414

15,999

1,165

1,200

1,039
947

914

1,000

920

767

800

15,000

650
542

600

400

525

477

372
206

200

10,0000

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

2Q

3Q【FY 3/21】

4Q

１Q ２Q ３Q ４Q １Q ２Q ３Q ４Q 1Q【FY 3/19】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved【FY 3/20】

2Q

3Q

4Q

【FY 3/21】

5

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

Net sales

FY 3/20• Net sales decreased by 9.6% partly due
to a decrease in enrollment as a result of
the effects of the new coronavirus(COVID-19) in 1H.
• Since 2H, enrollment has gradually
recovered. Net sales were also on arecovery trend.

Expenses・Profits• Regarding ordinary profit, the profit
margin exceeded that of the previous FY,
partly due to the recording of subsidy
income from non-operating income.
• Investment in recruitment strengthenedin 4Q as human resources needs
recovered.

Results

FY 3/21% of Total

Results

Year-on-Year% of Total

Increase(Decrease)% Change

Net sales

69,209100.0%

62,549100.0%(6,659)(9.6%)

Gross profit

12,492

18.1%

11,22617.9%(1,266)(10.1%)

SG&A
expenses

9,373

13.5%

8,603

13.8%

(769)

(8.2%)

Operatingprofit

3,119

4.5%

2,622

4.2%

(496)

(15.9%)

Ordinary
profit

3,124

4.5%

2,863

4.6%

(260)

(8.3%)

Profit

2,030

2.9%

1,530

2.4%

(500)

(24.6%)

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

6

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

（Unit: Million yen）

Operating profit

Net sales
18,00016,962

16,542
16,00017,478 17,775
17,389

1,400

1,204

16,566

16,357

1,200

16,036

15,378

1,044
1,000

15,15315,002

14,590

958

940

903

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 1Q【FY 3/19】【FY 3/20】

2Q

3Q【FY 3/21】

4Q

１Q ２Q ３Q ４Q １Q ２Q ３Q ４Q 1Q【FY 3/19】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved【FY 3/20】

2Q

3Q

4Q

【FY 3/21】

7

2

FY 3/2021

Overview of Activities

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

8

FY 3/2021 Financial Results Summary
Consolidated Financial Results

Net Sales
68,213 Million yen （ -6,752 Million yen／ -9.0％ YoY）
Operating Profit 2,599 Million yen （ -461 Million yen／ -15.1％ YoY）
● Net Sales by Industry (YoY)

Automobiles…(14.4％)

Electronic devices… ＋3.2%● 4Q-end Number of Enrolled Staff
13,146 staff（-1,624 staff from FY 3/20-end ）・In the automobiles-related industry, although net sales decreased by 14.4%
YoY, it increased compared to 3Q. The impact of the earthquake andsemiconductor shortages was limited.
・In the electronic devices-related industry, net sales remained firm, partly due
to strong demand for semiconductors.

・Although the number of enrolled staff decreased by 1,624 compared to
FY 3/20-end, it increased by 454 compared to 3Q-end, and the recovery
trend continued.

（＋454 staff from 3Q-end）● Net Sales per Capita/Monthly
396 Thousand yen(-1 Thousand yen YoY)

・Operations (number of working days, overtime hours, holiday work, etc.)stabilized, and net sales per capita recovered to levels close to the previous FY.
The amount of decrease also improved from 3Q (which was at -6 Thousandyen).
Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

9

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

Net Sales Composition Ratios
Automobiles

Elec. Devices

10,650（15.3％）

Precision・Elec. Machinery(14.4％)（14.6％）

9,061（13.1％）

9,111(12.5％)

7,924（12.7％）

17,828（25.8％）+3.2％

18,406Other【Precision・Electrical Machinery】
Despite a gradual recovery, net sales decreased by
12.5% YoY, partly due to a decrease in demand for
offices as a result of the promotion of remote work.

【Electronic Devices】
In addition to the increase in IT demand such as IoT,
5G, AI, etc., there was also global demand forsemiconductors, and net sales increased by 3.2%
YoY.

（29.4％）【Automobiles】
31,677（45.8％）

FY 3/20(14.4％)

27,104（43.3％）

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

Domestic and international demand was stable.
Operations (number of working days, overtime hours,
holiday work, etc.) also maintained an increasing
trend. In addition to auto-body manufacturers, thenumber of staff at suppliers also increased, andalthough net sales decreased by 14.4% YoY, it
increased by 2.1% on a quarterly basis compared to
3Q.

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

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％）

4,330（29.7％）

2,690（17.5％）

2,404（17.0％）

2,427（14.3％）

2,631

2,619

（15.8％） （15.9％）

2,348（14.2％）

2,371（14.3％）（15.6％）

4,752

4,646

（28.0％）

4,198（25.4％）

4,057（24.5％）（Unit: Million yen）

Other

2,680

（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

2,113

（13.9％）

6,891

7,375

7,505

7,757

5,227

（40.6％）（44.6％）（45.3％）

１Q

2Q

3Q

4Q

１Q

2Q

【FY 3/19】

8,026（45.9％）

1,895

4Q【FY 3/20】

1,942（12.1％）（12.1％）

4,537

4774

（14.3％）

1973（12.6％）

4,413（28.3％）（29.2％）

7,268

7,418

5,974

6,443

（45.3％）（45.4％）

2Q

3Q

4Q

8,378

（47.1％）（13.4％）（29.4％）（39.4％）

3Q

2,249（15.0％）

2190

2,287

4,680

（30.9％）（44.6％）（35.8％） （36.7％）

2,383（15.7％）（26.2％）（30.2％）

5,636

※（

2,774

1Q

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

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

11

Net Sales per Capita（NISSO, Non-consolidated）● FY 3/2021 Totals＜Overall net sales per capita ＞
396 Thousand yen ( -1 Thousand yen YoY)
＜Skilled staff net sales per capita＞ 460 Thousand yen (-22 Thousand yen YoY)

●Although overall net sales per capita decreased YoY, on a quarterly basis, following 3Q, 4Q also increased YoY.
The number of skilled staff decreased YoY due to the influence of COVID-19 in 1H.
（Unit: Thousand yen）

（Unit: Thousand yen）

Net Sales per Capita

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

482

500

397

Skilled staff

Overall 460

500

396

400

400

300

300

200

200

100

100

0

FY 3/20478

FY 3/21

379

513
471
383

410

Skilled staff
Overall

484
392

485
391

482

397

396

490

485

478

403

419

358

451
390

483

421

418

3Q

4Q

0

１Q

2Q

3Q

【FY 3/19】

4Q

１Q

2Q

3Q

【FY 3/20】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

4Q

1Q

2Q

【FY 3/21】

12

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

Compared w. 3Q-end

Number of Enrolled Staff at Quarter-end+454 staff (+3.6%)

Point①

15,000New hires recovered to the same level as theend of the previous FY. Also, the trend ofincreases was maintained, partly due to an
improvement in the turnover rate as a result of
the curbing of enrolled staff leaving NISSO.

13,826 14,042
13,546
13,05014,77014,63914,638
14,282
13,146
12,692
12,524

13,24313,00011,000

Point②9,000

In addition to the automobiles-relatedindustry, the need for human resources inthe electronic devices-related industry
increased.

7,000

5,000

1Q

2Q

3Q

4Q

1Q

【FY 3/19】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

2Q

3Q

4Q

【FY 3/20】

1Q

2Q

3Q

4Q

【FY 3/21】

13

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

Number of Skilled Staff

Point①
The number of skilled staff increased YoY (up186 from the end of the previous FY), despite
the impact of production cuts at somemanufacturers.

6,000

5,085
4,803
4,501

5,000

Point②

5,250

5,387
5,3815,436
5,293

3,904
4,000

3,459

In addition to a strong presence in theautomobiles industry, the number of skilled
staff increased mainly in the AccountCompany Groups due to the recovery insupplier demand.

3,000

2,000

2,611
2,034

Point③
1,000

The ratio of skilled staff to NISSO's total
enrolled staff remained at 41.4%, partly due
to the increase in overall enrollment.
(FY 3/2021 3Q: 42.4%)

0

1Q

2Q

3Q

4Q

1Q

【FY 3/19】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

2Q

3Q

4Q

【FY 3/20】

1Q

2Q

3Q

4Q

【FY 3/21】

14

Account Companies (NISSO, Non-consolidated)
Point①

Account Company Groups Net Sales

Total net sales of Account Company Groups
were -3.1% YoY, despite the impact of
COVID-19 in 1H.

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

12,000Composition ratio (right axis)

45.9
44.5 44.1 44.2
43.7
43.3
42.7

10,000

41.9

Point②

7,677 7,565
7,416 7,366 7,300

8,000

Total net sales of the electronics AccountCompany Group increased significantly YoY.
The automobiles Account Company Group
recovered to near the previous FY.

47.7 48.0 47.1 47.6

6,107

50.0

45.0

8,152
7,225

6,564

7,201

7,5517,780 40.0

6,000

35.0

4,000

30.0

2,000

25.0

0

１Q

2Q

3Q

【FY 3/19】

4Q

１Q

2Q

3Q

【FY 3/20】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

4Q

1Q

2Q

3Q

4Q

20.0

【FY 3/21】

15

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

FY 3/2021 Results
Overall turnover rate

Overall4.2％

7(-0.5 pts vs. FY 3/2020)

5.9
6Skilled staff turnover rate

7

5.5
4.9

2.0％

Skilled staff

5

6

4.6

4.7

5.1

5

4.7

4.4

4.2

2.0

2.0

3Q

4Q

(±0.0 pts vs. FY 3/2020)
4

4

3

Points1.7

2・The overall turnover rate improved by
0.5 points to 4.2%, down from the previous
FY.
・The turnover rate of skilled staff remained at
the same level of the previous FY at 2.0%,
despite the impact of production cuts at somemanufacturers.

2.0
1.5

3

1

0

0
FY 3/17

FY 3/18

FY 3/192.3

2

1

FY 3/16

2.0

FY 3/20

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

1Q

2Q【FY 3/21】

16

Educational Achievements（NISSO, Non-consolidated）● FY 3/2021 4Q Course-specific educational achievements
Point①(total # of participants)

The overall number of participants decreased
YoY due to the limit on the number ofparticipants as a result of COVID-19.

Training course name
Skilled staff
education
Basic maintenanceeducation

Point②Equipment maintenance needs centered on
semiconductor manufacturers were strong,
and training was in full operation.

Point③
Employee education increased YoY partly due
to the enhancement of online training using
the Web.

Accredited vocational
training education

４Ｑ（Jan - Mar）

(Unit: # of participants)

Contents

FY 3/21
Total(Reference)
FY 3/20Total

251 Standard skilled staff education

970

1,960

Basic equipment maintenance

259

373

68

200

55 education

Accredited vocational training school

7 (Miyagi・Nagano Prefectures)

MONOZUKURI (manufacturing)

Manufacturing
education

819 education, pre-assignment training for

2,840

3,895

Safety education

561 Danger・risk simulation education

2,348

3,455

Employee education

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

582

496

44

28

7,111

10,407

Other education

Total

manufacturing staff, mobile education

Entrusted education from external

ー sources

1,836

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

17Other Businesses Business Revenue
Points●Results of Other Businesses• Achieved full-year profit by stabilizing thenumber of residents in all facilities.
• The number of residents in nursing carefacilities Buildings 1~5 has increased since theend of December Building 6 has also
maintained an occupancy rate of more than90%.

FY 3/20
Results（Unit: Million yen）

FY 3/21% of Total

Results

Year-on-Year% of Total

2,796

100.0%

2,972

100.0%

176

6.3%

Expenses

2,850

101.9%

2,949

99.2%

99

3.5%

Operatingprofit (loss)

(54)

(1.9)

23

0.8%

77

ー

[Bldg.1-5] (capacity:308)

200

297
96.4%

298
96.8%

298

% Change

Net sales(Unit: # of residents)

Number of facility residents

300

Increase(Decrease)# ofresidents

Occupancy
rate[Bldg.6] (capacity:94)292

96.8% 94.8%

294
95.5%

80

90%

75

60
40

100

73

77.7%

84
89.4%

90

87

95.7%

92.6%

90%

79.8%

20

40%

0

Mar'20-end Jun'20-end Sep'20-end Dec'20-end Mar'21-end

40%

0Mar'20-end Jun'20-end Sep'20-end Dec'20-end Mar'21-end

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

18

3

Future Prospects (FY 3/2022)

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

19

FY 3/2022 Full-year Consolidated Forecasts
In the full-year consolidated forecast, NISSO expects increased revenue and profits. This forecast includes
investments for growth.
■FY 3/2022 Full-year Consolidated Forecast (April 1, 2021 ~ March 31, 2022)

Net sales

FY 3/21 Results

FY 3/22 Forecast

Results

Forecast% of Total(Unit: Million yen)

Year-on-Year% of Total

Increase(Decrease)% Change

68,213100.0％

76,000100.0％

7,786

11.4％

Operating profit

2,599

3.8％

3,000

3.9％

400

15.4％

Ordinary profit

2,949

4.3％

3,000

3.9％

50

1.7％

Profit attributableto owners ofparent

1,592

2.3％

2,000

2.6％

407

25.6％

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved20

4

Shareholder Return Policy

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

21

Shareholder Return Policy
Basic Policy

Dividend and Payout Ratio

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

(Unit: Yen)
30.00

(Unit: %)Payout ratio (right axis)

100%

25.00 yen

90%

25.00

20.00

FY 3/2021 Dividend (Expected)

Dividend (left axis)

80%

20.10 yen

18.50 yen

18.00 yen

70%
60%

• NISSO plans to pay a dividend of 20.10 yen per
share (ordinary dividend of 15.10 yen,commemorative dividend of 5.00 yen) as announced
in the "Notice of Revision of Dividend Forecast for the
Fiscal Year Ending March 31, 2021 (50th Anniversary
Commemorative Dividend)" on February 8, 2021.

41.3%

15.00

10.00

42.7%

50%

30.6%

30.0%

40%
30%
20%

5.00

10%
0.00

FY 3/19

FY 3/20

FY 3/21(Expected)

FY 3/22 (Forecast)

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

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved22

5

Supplementary Materials

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

23Consolidated Balance Sheet(Unit: Million yen, ％)Mar. 2020-end

Mar. 2021-end

AmountAmount% of Total% of Total

Increase(Decrease)

15,622

69.5

14,813

68.5

(808)

Cash and deposits

6,365

28.3

5,873

27.2

(491)

Notes and accounts receivable - trade

8,434

37.5

8,094

37.4

(339)

6,871

30.5

6,817

31.5

(54)

4,754

21.1

4,654

21.5

(99)

377

1.7

305

1.4

(71)

1,739

7.7

1,857

8.6

117

22,494100

21,631

100(862)

Current liabilities

9,279

41.3

8,178

37.8

(1,100)Accrued expenses

4,648

20.7

4,541

21.0

(106)

812

3.6

494

2.3

(317)

1,904

8.5

1,163

5.4

(741)

1,319

5.9

689

3.2

(629)

623

2.8

-

-

(623)

Total liabilities

10,598

47.1

8,868

41.0

(1,730)Shareholders' equity

11,97453.2

12,74458.9

770

Total net assets

11,89552.9

12,76359.0

867

Total liabilities and net assets

22,494100

21,631

100(862)

Current assets

Non-current assets
Property, plant and equipment
Intangible assets

Investments and other assets
Total assets

Income taxes payable
Accrued consumption taxes
Non-current liabilities
Long-term loans payable

Point①Decreases due to reduced operations
Due to the reduction of operations in the
manufacturing-related human resources services,"notes and accounts receivable - trade", etc., ofcurrent assets and "accrued expenses", etc., ofcurrent liabilities decreased.

②Accrued taxes
Due to a decrease in net sales, etc., "income
taxes payable" and "accrued consumption taxes",
etc., of current liabilities decreased.
③Repayment of loans payableAs a result of lump sum repayment of longterm loans payable, the balance of "long-termloans payable" of non-current liabilities has been
reduced to zero.
④Overall
As a result of the above, total assets decreasedby 3.8% YoY, total liabilities decreased by 16.3%
YoY, total net assets increased by 7.3% YoY, andequity ratio increased by 6.1% YoY to 59.0%.

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved24Consolidated Statements of Cash Flows(Unit: Million yen)

FY 3/20
Amount

CF from operating activities

1,922

FY 3/21

Increase(Decrease)

Amount

1,672

(249)

CF from investing activities

(289)

(496)

(206)

CF from financing activities(901)(1,668)

(766)

731

(491)

(1,222)

5,633

6,365

731

6,365

5,873

(491)

Net increase (decrease) in cash
and cash equivalents
Cash and cash equivalents at
beginning of period
Cash and cash equivalents at
end of period

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

Point①Cash flows from operating activities
In the current FY, revenues amounted to
1,672 million yen. Tax payments such as
income taxes・consumption taxes, andexpenses, etc., due to a decrease in accrued
expenses were absorbed by revenues, etc., asa result of decreases in profit before income
taxes and accounts receivable - trade.
②Cash flows from investing activities
In the current FY, expenditures amounted to
496 million yen, mainly due to stock
investments associated with business alliancesand capital investments for core systems.
③Cash flows from financing activities
Payments such as the lump-sum repaymentof loans payable and the payment of dividends
resulted in expenditures of 1,668 million yen.

25

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

Investor Relations Office, NISSO CORPORATION
TEL

045-777-7630

E-mailir@nisso.co.jp

URL

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