New Medium-term Management Plan
（FY 3/2020 ~ FY 3/2022）

May 10, 2019
NISSO CORPORATIONTSE Code: 6569

CONTENTS
1２

Overview of New Medium-termManagement Plan

Priority Measures to Achieve
Numerical Targets

3 ESG Initiatives through Business
Activities~

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1Overview of New Medium-termManagement Plan

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FY 3/19 Retrospective Review
Progress of previous medium-term management plan mission:"Becoming the Industry Leader in Overall Evaluation"from Financial Results Briefing Materials May, 2018

【NISSO Medium-term Growth Cycle】
Performance increases# of operations・unit costs
increases

Client evaluation rises

Clientevaluation
Selected by clients
Enrichment・differentiationof transactions

Performance(Sales・Profit)

Enhancement oftraining・
compensation・
welfare programs

Sense of satisfaction・
fulfillment heightens

Employeeevaluation
Retention of excellent
personnel
Employees actively
demonstrate their abilities

Received consecutive commendations/awards
for #1 ranking in client evaluation andretention rates(Automobiles-related Company A)

Received 1st Place ranking in Manufacturing
Dispatching Company satisfaction survey(2019) by Oricon and employee evaluation
NISSO Medium-term Growth Cycle succeeds,significantly exceeds initial plan
There is still a gap with other companies
regarding profit margin

Proposal activities to raise value become active

NISSO will further develop the growth cycle in order to achieve increased performanceand improvement of profit margins
Copyright ⓒ 2019 NISSO CORPORATION All Rights Reserved3Formulation of New Medium-term Management Plan
●Recognizes the urgent need to respond promptly to rapidchanges in the business environment●Determines that a new management structure is necessary tomake quick and flexible management decisions●Under the new management structure, in order to achieve
mid- to long-term corporate value enhancement and aim
to become the industry leader, NISSO has formulated a
medium-term management plan covering 3 years from
FY 3/2020 to FY 3/2022

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New Medium-term Management Plan Mission
Becoming the Leader in Absolute Evaluationin the Manufacturing-related Human Resources Business Domain

Sales of 100+ billion yen, Operating profit margin 7％ (FY 3/22)【NISSO Medium-term Growth Cycle】
Performance increases# of operations・unit costs
increases

Client evaluation rises

Clientevaluation
Selected by clients
Enrichment・differentiationof transactions

Performance(Sales・Profit)

Enhancement oftraining・compensation・
welfare programs

Sense of satisfaction・fulfillment
heightens

Employeeevaluation

Final fiscal year (FY 3/21) targets
set forth in the previous
medium-term management plan
were achieved 1 year ahead ofschedule

Management policies that place thehighest importance on employee
evaluation

Retention of excellent
personnel
Employees actively
demonstrate their abilities

Proposal activities to raise value become active
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New Medium-term Management Plan
（Unit: 100 million yen）

Net sales

Operatingprofit（Profit margin, %）Profitattributable to ownersof parent

FY 3/19

FY 3/20

FY 3/21FY 3/22(Actual/Target)（Target）（Target）（Target）

691

800

926

1,012

656

727803

－28.6

39.0

56.0

73.0

(4.1%)(4.9%)(6.0%)(7.2%)

20.930.4

40.2(3.2%)(4.2%)(5.0%)

20.5

27.6

38.5

50.0

13.7

20.3

27.0－－

Top: New Medium-term Management Plan (actual figures for FY 3/19)
Bottom: Previous Medium-term Management Plan (FY 3/19 target figures from initial plan)

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6Basic Strategy (Continuation)【２ Keywords】
Personnel Strategy

Skilled Staff
High quality
personnelRegion-・industry-restrictedindefinite-term employees

Client Strategy
Dispatch as indefiniteterm employees

AccountCompanies

Consideration・
compensation according
to skillsExpandtransactions

Companies that build relationships based ontrust・network of contacts in long-termtransactions, share production plans,
implement well-planned staffing, and allow
NISSO to make unique proposals

Aiming to raise unit costs and improve profitability throughassignment of skilled staff to important clients, centering on
Account Companies
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Growth Acceleration Drivers for Net Sales・Profits●Expansion of Account Companies net sales

Net sales

Annual rate

+15.4%・Acquisition of new business partners within groups by strengthening
proposal capabilities, increasing shares with existing client companies
・Increase in unit costs (active assignment of skilled staff)
・Development of new Account Companies in growth sectors andhigh-added value sectors●Development of new business models (M&A, Alliances...)Grossprofit

FY 3/19 YOY＋1.6 pts
FY 3/19 YOY

Operating ＋3.1 pts

profitSG&A expenses
rate(1.5) pts●Increase in profit margins by improving client evaluations
for NISSO's initiatives
・Continued investment in practical education such as educational
facilities
・Reflection of increased profits in treatment, motivation for retention・skill enhancement●Control of recruitment costs
・Reduction in recruitment of replacement personnel due to decline in turnover
rates
・Introduction of efficient recruitment methods●Reform of Headquarters・Departments

・Operational efficiency through systems investments
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Key Management Indicators
FY 3/19(Actual)

FY 3/22（Plan）%
Change# enrolled at
FY-endOverall

14,042

18,300+30.7%（# of staff）

Skilled staff

3,904

8,000+104.9%

Overall

4.6

3.5(1.1) pts

Skilled staff

1.51.5—Overall391466+19.2%

Turnover rates（%/month）

Net sales
per capita（thousand yen/month）

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9２Priority Measures to Achieve
Numerical Targets

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10

Recognition of Business Environments
Business Environments●Domestic Manufacturing Industry Trends
・Although environments surrounding semiconductor andelectronics devices are uncertain, automotive electronics
and 5G communications sectors are promising
・Automobiles continued to remain stable from previous FY●Recruitment Environment
・Severe labor shortages across all sectors
・Recruitment costs per capita continue to rise

●Manufacturing Dispatching Industry Trends(Competitive Environment)
・Revisions of dispatch law, work-style reform, andutilization of foreign workforce
・Since responding to the above requires business scale
and proper management, reorganization and selection
within the industry will accelerate further

NISSO’s Countermeasures
Prioritizing the assignmentof skilled staff to
Account Companies
Enabling efficiency through
NISSO's unique recruitment
methods and copingwith large-scale projects
Leveraging the advantageof being a major business
operator to expandperformance

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11Priority Measure - Sales
Sales

Reinforcement of business infrastructures with importantclients (Account Companies)

Industry-specific Momentum
FY 3/20

1stHalf

2ndHalf

FY 3/21FY 3/22

Automobiles-related

Increased demand due to vehicle electrification andpromotion of eco-cars

Semiconductor・Electronics devices

Adjustment of inventory levels to be completed by 1st half ofFY 3/20; recovery expected from 2nd half onwards due tomid- to long-term demand trends for automotive-, 5G
communication-, IoT-related components
Estimated by NISSO based on data from manufacturers, research institutes, etc.

① Promotion of upgrading existing transactions
Improvement of skills, centering on skilled staff, enhancement of services provided,and promotion of market share expansion by improving client satisfaction② Launching of new Account Company Groups
FY 3/22: 50%+ in Account Company net sales composition (FY 3/19: 43.3%)
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Priority Measure - Recruitment
Recruitment

Development・implementation of new recruitment
methods① Development-type New Graduate Recruitment
Expansion of global new graduate recruitment based on long-term development
by NISSO training curriculums (domestic, China, etc.)② Media Strategy
Use of NISSO DBR (NISSO DataBase Recruiting) system for optimal media
utilization and cost efficiency※NISSO DBR：A system that segmentalizes the entire country and analyzes the effects
of individual media on a weekly basis, enabling efficient and speedy
decision-making③ Utilization of Human Resources Big Data
Increasing the number of applicants through scout-mails and follow-ups ofregistrants
Copyright ⓒ 2019 NISSO CORPORATION All Rights Reserved13Priority Measure - Education
Education

Practice of education that contributes to profit
improvement① Reinforcement and active utilization of existing training facilities
FY 3/19 Training achievements (totals) TC Naka-Nihon:
443 participants
TC Higashi-Nihon: 1,479 participants
NISSO Technical Center Naka-Nihon: New introduction of assembly skills training equipment【Main Education】

TC = Technical Center

Course nameMain educational contentTC
HigashiNihon

Pre-assignment education

Safety, assembly skills training, etc.

Skilled staff education

Working-adult education, motivation, Basic MONOZUKURI education, etc.

TCNakaNihon

Pre-assignment education

Safety, quality, mechanical・electrical fundamentals, actual machine
training, etc.

Skilled staff education

Working-adult education, motivation, Basic MONOZUKURI education, etc.

Main assignment
destinations
Automobiles
manufacturers

Semiconductor
manufacturers② Increase of technical positions・personnel
Enhancement of CATIA training equipment③ Establishment of new facilities based on client needs and demand forecasts
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Community-rooted Contribution Activities

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15

Employment of Disabled Persons and Initiatives for Active Participation

In addition to employing people with disabilities, expanding theiropportunities for successWorking with team of employees withdisabilities

Expansion of intra-company sales byemployees with disabilities~Activities were highly regarded externally, leading to company visits bymajor companies・local governments~
Approximately 3,000 visitors in 5 years
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16Past Achievements
Examples of Social Recognition・Awards
2009~2018『Yokohama Community Contribution Company』
Top-level Certification「Contributions in the Yokohama Area for the Employmentof Persons with Disabilities」
2015~2018『Yokohama Good Balance Award』 Certification「Promotion of Women's Participation and Advancementin the Workplace and Work-Life Balance」

2017『Yokohama Health and Productivity Certification』Class A「Efforts to Maintain・Improve Employee Health Aimed
at Increasing the Profitability of Companies in theFuture」
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Initiatives for Nursing Care BusinessContributing to society through thoughtful community-rooted
nursing care

Letters of gratitude from users・families~NISSO's nursing care facilities earned rankings in nursing care-related
specialty magazine surveys~
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18Diversity Initiatives
Promotion of expansion for women's employment, participation andadvancement in the workplace

Gender ratio（approx. 15,000personnel）~Many female leaders are active in various workplaces as future
upper-management executive candidates~
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19

SDGs Initiatives~NISSO signed the "UN Global Compact (UNGC)"
advocated by the United Nations on March 18, 2019~
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FY 3/19 Dividend Payout, FY 3/20 Dividend Forecast

Continued dividend payout ratio of 30% or more
In view of +share price level, liquidity, demand for funds, etc., share buy-backs are implemented flexibly

FY 3/19

FY 3/20 forecast

Profit2,053 million yen

2,760 million yen

EPS

61.58

82.24

Dividend per share

18.50

25.00

Dividend payout ratio

30.0％30.4％Copyright ⓒ 2019 NISSO CORPORATION All Rights Reserved

The forward-looking statements and performance forecasts contained in this document are forecasts determined byNISSO 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 forward-looking statements described
due to changes in various factors.

For future IR-related inquiries
IR Division, PR・IR Department
NISSO CORPORATIONTEL ： 045-777-7630

E-mail ： ir@nisso.co.jp
URL ： https://www.nisso.co.jp/Copyright ⓒ 2019 NISSO CORPORATION All Rights Reserved22