FY 3/2020

Financial Results
Briefing Materials
May 12, 2020

TSE 1 Code: 6569

NISSO CORPORATION

0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・The consolidated financial results for FY 3/2020 increased in revenue and profits.
・One of the major reasons for this is that NISSO's automobiles-related business was strong.
・The effects of the new coronavirus (COVID-19) in March were limited.
・The consolidated earnings forecast for FY 3/2021 is undecided due to the difficulty ofreasonably predicting the effects of COVID-19 at this time.

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

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2

2

1.

Financial Results Summary for FY 3/2020

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3

・The following is the explanation of the Financial Results Summary for FY 3/2020.

3

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

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

仮数字

4

・The following is the explanation of NISSO's Non-consolidated Financial Results for FY 3/2020.
・Net sales amounted to 69,209 million yen (up 5,734 million yen or 9.0% year on year).
・Operating profit amounted to 3,119 million yen (up 156 million yen or 5.3% year on year).
・In the automobiles-related industry, strong performance in 1H was a major factor behind
improved financial results.
・With regard to the electronic devices industry, although NISSO had high expectations forthe spread of 5G, unfortunately, while there were some positive signs, we were not able torecover overall.

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】【FY 3/19】【FY 3/20】

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

5・Shown above are graphs of NISSO's quarterly non-consolidated net sales and operating
profit trends.
・Normally, although net sales growth and profits would be the highest in 3Q, due to theeffects of trade frictions and other factors, there were fewer amounts of overtime andholiday work in FY 3/2020 3Q, resulting in the figures above.
・In 4Q, although NISSO expected the effects of the spread of COVID-19 to be much greater,
it was limited, and net sales remained strong, resulting in record-high profits.

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

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

6

・The following is the explanation of the Consolidated Financial Results for FY 3/2020.
・Net sales amounted to 74,966 million (up 5,805 million yen or 8.4% year on year).
・Operating profit amounted to 3,061 million yen (up 191 million yen or 6.7% year on year).
・NISSO's performance has had a significant influence on the consolidated financial results.
・In Other Businesses, an increase in the number of residents of Sweetpea Higashi Totsuka
has led to a reduction in deficits from the previous fiscal year.

6

FY 3/2020 Quarterly Consolidated Financial Results Trends
Net sales

Operating profit（Unit: Million yen）

（Unit: Million yen）

20,00019,24818,814 18,920

18,435
17,942

仮数字

1,400

17,983

1,165

1,200

1,039

16,784914

1,000

15,521 15,999
15,613

767

717

800

15,000650

14,166
13,907

542

600
381

400

396
304

477

372

200
10,000

0

１Q

２Q

３Q

【FY 3/18】

４Q

１Q

２Q

３Q

【FY 3/19】

４Q

１Q

２Q

３Q

【FY 3/20】

４Q

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

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

7

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

7

1-１ Overview of Activities

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88

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

9

Financial Result Summary
By Industry
・Net sales in the automobiles industry were strong in 1H and was up 26.0% year on year.
・Although net sales in the electronic devices industry was down -4.0% year on year in 3Q, thenegative margin improved to -0.6%.
Enrollment
・The number of enrolled staff as of FY 3/2020-end was 14,770, an increase of 728 in one year.
In FY 3/2019, there was an increase of about 1,600 enrolled staff in one year.
・In 1H, although the number of enrolled staff grew in the same manner as FY 3/2019, it remained
almost unchanged in 2H.
Net Sales per Capita
・Although net sales per capita increased slightly from the previous fiscal year, the way it
has increased seems to have slowed down.

9

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％）

10,650（15.3％）

9,061(5.7％)（13.1％）(0.6％)（25.8％）

9,605（15.1％）

修正後2
Electronic devices

Other

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

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

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

10・Shown above are NISSO's non-consolidated net sales by industry.

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％）

2,404（17.0％）

2,427

2,371

（13.3％）（14.3％）

4,752

4,198

（25.4％）

4,057（26.6％）

6,891

7,375

（28.0％）（30.2％）

5,227

5,636

（40.6％）

2Q

3Q（36.7％）※（ ）= % of Total net sales

2,317

2,348

（24.5％）

7,505

4,633

7,757

（44.6％）（45.3％）（44.6％）4Q

FY 3/20
1Q

2Q

2,563

2,774

（14.4％）

2,190（12.3％）

4,487（26.2％）（15.9％）（15.9％）（15.6％）

4,646

2,680

（15.4％）（14.2％）

4,330

FY 3/19
1Q（15.8％）

2,631（14.3％）（29.7％）（35.8％）

2,619

Other

（12.5％）（25.7％）

8,026

2,182

4,650

8,378

（45.9％）（47.1％）

3Q

4Q

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

11・Shown above are the trends of NISSO's quarterly net sales by industry.
・A major feature is that net sales grew mainly in Account Companies in the automobiles andelectronic devices industries from FY 3/2020 3Q to 4Q, and it can be said that it was a signthat assignments of staff to Account Companies were conducted smoothly in 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・The following is the explanation of the trend of NISSO's enrolled staff.
・Until FY 3/2020, although net sales per capita grew by more than 6% and over 20,000 yen
versus each previous fiscal year, in FY 3/2020, it increased only by 5,500 yen, or 1.4%.
Looking at net sales per capita on a quarterly basis, in FY 3/2020 3Q, it was down 13,000 yen
year on year. This was not due to a drop in unit costs, since they actually rose, but rather
because the reduction in the hours of operation per person were greater than the rise in unitcosts, which may be a result of factors such as the trade friction issues between U.S. and China.
On the other hand, net sales per capita in 4Q was up 11,000 yen year on year.
As a result, although the net sales per capita in FY 3/2020 increased by 5,500 yen from theprevious fiscal year, it could be said that it was due to such an impact in 3Q.

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

・Shown above is the trend of NISSO's enrolled staff.

13

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

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14

・The following is the explanation of NISSO's skilled staff.
・Until now, the number of skilled staff increased steadily, but the way it has increased seems
to have slowed down.
This is a sign that NISSO will have to put a great deal of emphasis on developing skilled staff
who are capable of acquiring more advanced skills and providing a higher quality ofservices, and it is our belief that this will lead to improving profitability and responding to theadvanced needs of our clients in the future.

14

Account Companies (NISSO, Non-consolidated)Account Company Groups Net Sales and % of Total（Unit: Million yen）
35,00030,69630,00027,45425,000

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%

20,000

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

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

15

・The following is the explanation of the status of NISSO's Account Companies.
・NISSO's overall net sales share ratio increased by 1.1 points from the previous fiscal year.
In addition, compared with the overall net sales share ratio of 43.8% in FY 3/2020 3Q, it
was 44.4% at the end of the fiscal year, which is a testament to the prioritization of NISSO's
assignment of staff to Account Companies in 4Q.

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

4.4

Overall

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.)(Apr.~Dec.)

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16

・The following is the explanation of NISSO's turnover rates.
・NISSO's overall turnover rates on a quarterly basis were as follows: 4.4% in 1Q, 4.9% in
2Q, 4.8% in 3Q, and 4.7% in 4Q. Despite some improvement, we are fully aware that weare still far from achieving the goal of 4% that we are aiming for, and in order to further
improve the turnover rate, NISSO is striving towards a level below 4% while implementing
an approach from the perspective of our workers.
・One of the challenges NISSO faces is the increase in the turnover rate of skilled Although
the skilled staff turnover rate in FY 3/2020 was 2.0%, considering that skilled staff will
become significant "weapons" in the future, it is important to return to the previous level ofaround 1.5%, which will lead to the decline in the overall turnover rate, and NISSO will takethe necessary measures to reduce turnover rates.

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 maintenanceAccredited vocational training school

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

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

10,4077,690

187 education

Other education
Total（ Unit: # of Participants）

2,993

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 to rise,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
trendsCopyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

17

・The following is the explanation of NISSO's educational achievements.
・Although the number of participants for skilled staff education is decreasing, this is due tothe review and enhancement of the education curriculum in order for them to acquire higher
skills than ever before.
・With regard to basic maintenance education, which is the training of equipment maintenancepersonnel centered on semiconductor manufacturing, although NISSO has been conducting
this educational training at full-capacity from before, we created a new cleanroom facility at
Nisso Technical Center Higashi-Nihon in December 2019 in order to strengthen educational
capabilities. Hereafter, NISSO will continue to respond to the need of our clients and strive toexpand worker education and training.

17

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

Net sales

2,485

100.0%

2,796

100.0%

310% Change
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

295

299

295

95.7%

297

297

96.4%

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

・The following is the explanation of Other Businesses.
・The number of residents of Sweetpea Higashi Totsuka (Bldg. 6) was 73, out of a capacity of
94, and the occupancy rate was 77.7%.
Although Other Businesses were still in the red for FY 3/2020, the amount of deficit has
decreased significantly as a result of the rise in the aforementioned occupancy rate to77.7%.
・Although Sweetpea Higashi Totsuka is about 3 months behind schedule with regards to its
initial occupancy plan, by promoting this increase in the number of its residents, the plan is
to make Other Businesses a profitable business. However, there are concerns that the
spread of COVID-19 may slow down the rate of occupancy.

18

1-2

Future Prospects

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19

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 Reserved

20

・Due to the difficulty of reasonably calculating the effects of COVID-19 at this time, theconsolidated earnings and dividend forecasts for FY 3/2021 have not yet been decided.
・The Medium-term Management Plan will be disclosed when it is possible to determine to acertain extent what the effects of COVID-19 will be, or what steps NISSO is able to taketoward its convergence, at a time when outlooks become clearer.

20

２. Shareholder Return Policy

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

21

・The following is the explanation of Shareholder Returns.

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.
Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

22

・The following is the explanation of the Shareholder Return Policy.
・The dividend amount per share for FY 3/2020 is scheduled to be 25 yen as planned.
・Although it has not yet been disclosed at this time, hereafter, NISSO will announce ourapproach to the Shareholder Return Policy and dividends based on the Medium-termManagement Plan and full-year forecasts, while continuing our current approach of the
Shareholder Return Policy.

22

3.

Supplementary Materials

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23

23

Consolidated Balance Sheet(Unit: Million yen)Mar. 2019-end
AmountCurrent assets
Cash and deposits
Notes and accounts receivable - tradeNon-current assets
Property, plant and equipment
Intangible assets
Investments and other assets

Mar. 2020-end% of Total

Amount% of Total

Increase(Decrease)

14,17467.4

15,622

69.5

1,447

5,633

26.8

6,365

28.3

731
676

7,757

36.9

8,434

37.5

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
1,474

Total assets

21,019100

22,494100

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
(126)

Current portion of long-term loans
payable

750

3.6

623

2.8

Total liabilities

Long-term loans payable

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

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・Shown above is the Consolidated Balance Sheet.
・The amount of cash on hand is increasing due to business expansion.

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

Net increase (decrease) in cash
and cash equivalents

349

731

381

Cash and cash equivalents at
beginning of period

5,283

5,633

349

Cash and cash equivalents at
end of period

5,633

6,365

731

①Cash 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.

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

25

・Shown above are the Consolidated Statements of Cash Flows.
・Although NISSO recognizes that there are no issues with cash finances for the time
being, it is not possible to measure how the effects of COVID-19 will spread. As aleading company in this industry, NISSO fully understands our responsibility for employment,
and plans to further strengthen our financial affairs in order to fulfill such responsibilities.

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

2626