First Nine Months of FY 3/2020

Financial Results
Briefing Materials
February 10, 2020

TSE 1 Code: 6569

NISSO CORPORATIONKey Points of Presentation■ Results for the First Nine Months of FY 3/2020 (3Q)・ Electronic devices-related industries have not yet reachedfull-scale recovery
・ There was an increase in revenue and a decrease in profits
year-on-year■Full-year Prospects
・ Judging that the business environment will continue to be severe,
NISSO has made a downward revision of the full-year forecasts

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

1CONTENTS
1. Financial Results Summary for the First Nine Months of FY 3/2020
１-１ Overview of Activities
１-２ Future Prospects
2. Earnings Forecast for FY 3/2020

3. Topics
4. Shareholder Return Policy
5. Supplementary Materials

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved2

1.

Financial Results Summary
for the First Nine Months of FY 3/2020 (3Q)

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved3

FY 3/2020 3Q Non-consolidated Financial Results Highlights
Net sales increased only slightly by 9.6% YOY due to factors such as delays in full-scale recovery of the electronic devices industry
and sluggish operating conditions, despite the strong performance of the automobiles Account Company GroupIn terms of costs, operating profit decreased by 5.3% YOY due to increases in workplace operating costs and training expenses,
etc., for future growth（Unit: Million yen）

FY 3/19 3Q
Results
Net sales

46,931FY 3/20 3Q% of Total

100.0%

Results

51,433Year-on-Year% of Total

100.0%

Increase(Decrease)

4,501% Change

9.6%

Gross profit

8,514

18.1%

9,040

17.6%

525

6.2%

SG&A expenses

6,492

13.8%

7,125

13.9%

632

9.7%

Operating profit

2,021

4.3%

1,915

3.7%

(106)

(5.3%)

Ordinary profit

2,011

4.3%

1,917

3.7%

(94)

(4.7%)

Profit

1,320

2.8%

1,304

2.5%

(16)

(1.2%)

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

仮数字4

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

Net sales（Unit: Million yen）

（Unit: Million yen）

18,00017,38916,962

17,478

仮数字

1,200

16,566
16,542

1,044

1,000

16,000940

15,378783

800

14,100 14,590

14,000663

703

14,101

577

600

468

12,657443

12,325400

12,000

337

312

１Q

２Q

399

200

10,0000

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

３Q

４Q【FY 3/18】

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

１Q

２Q

３Q

【FY 3/19】

４Q

１Q

２Q

３Q

【FY 3/20】

5

FY 3/2020 3Q Consolidated Financial Results Highlights
General Human Resources Services Business: Continued development/expansion of skilled staff and Account Companies strategies
Although net sales increased steadily in the automobiles-related industry, there was an increase in revenue and a decrease inprofits due to an increase in expenses
Other Businesses: Although there was an increase in net sales due to increases in the number of residents at Sweetpea Higashi
Totsuka, investment to improve services were generated（Unit: Million yen）

FY 3/19 3Q
Results
Net sales
Gross profit
SG&A expenses
Operating profit
Ordinary profit
Profit attributableto owners of parent

FY 3/20 3Q% of Total

Results

Year-on-Year% of Total

Increase(Decrease)% Change

51,219100.0%

55,718100.0%

4,499

8.8%

8,977

17.5%

9,515

17.1%

537

6.0%

7,022

13.7%

7,619

13.7%

596

8.5%

1,954

3.8%

1,896

3.4%

(58)

(3.0%)

1,971

3.8%

1,940

3.5%

(31)

(1.6%)

1,286

2.5%

1,307

2.3%

20

1.6%

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

6

FY 3/2020 Quarterly Consolidated Financial Results Trends
Operating profit

Net sales（Unit: Million yen）

（Unit: Million yen）

20,00018,814

18,435
17,942

18,920

仮数字

1,200

17,983

1,039

1,000

914

16,784
15,521 15,999
15,61315,000800

14,166

767

717

650

600

13,907

542
477
381

400

396
304

372

200

10,0000

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

１Q

２Q

３Q

４Q

【FY 3/18】

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

１Q

２Q

３Q

【FY 3/19】

４Q

１Q

２Q

３Q

【FY 3/20】

7

1-１ Overview of Activities

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8

FY 3/2020 3Q Financial Results Summary
Consolidated Financial Results
Net Sales 55,718 Million yen（+ 4,499 Million yen YoY）

Operating Profit 1,896 Million yen

 Net sales YOY increase: 8.8%
 Operating profit YOY decrease: -3.0%(-58 Million yen YoY)Net Sales by Industry （vs. YoY）
Automobiles…+ 31.2％
Electronic devices … (4.0 %) Automobiles industry is on an upward trend due to new demand, mainly for the AccountCompany Group Although there were increases in net sales in some companies in the electronic devices
industry, it is on a downward trend overall due to impact of the market

Quarter-end Number of Enrolled Staff
14,638 staff（+596 from FY 3/19-end）…+1,382 staff in FY 3/19 3Q

 Although the number of enrolled staff in electronic components related companies
decreased, the overall number of enrolled staff remained nearly unchanged since theend of 2Q due to increased demand in automobiles-related companies (-1 staff)

Net Sales per Capita/Monthly
 Despite promoting the assignment of skilled staff to high unit-cost production sites, net
395 Thousand yen
sales per capita increased only slightly due to reduced hours of operation（+3.5 Thousand yen from FY 3/19-end）(overtime/holiday work)…+24 Thousand yen in FY 3/19 3Q
Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

9

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

Elec. devices

Prec.・Elec. machinery(1.2 ％)

8,188（17.4％）(5.2％)

Electronic devices

Other

8,086

（15.7％）

6,878（13.４％）

7,256

修正後2

Although demand for some semiconductor companies
increased, the increase in demand, including for 5Grelated industries, which was expected in 2H, will bedelayed until the next FY onward. Many electronic
components-related companies have not yet seen afull-scale recovery, resulting in a decrease in net sales（15.5％）

13,729

(4.0％)

13,177（25.6％）

Automobiles（29.3％）

17,755+31.2％

23,289（45.３％）（37.8％）

FY 3/19 3Q

Net sales increased due to the introduction of new car
models in the Account Company Group and increased
demand from auto parts companies

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

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

10Trend of Enrolled Staff (NISSO, Non-consolidated)
Trend of Number of Enrolled at FY-end（ Unit: # of Staff ）

14,63815,00014,00013,00012,44412,00011,00011,497＋1,598
staff/year

10,561＋596
staff/9 mos.

＋947
staff
/year

10,0009,000

Increase of 596 staff from previous
FY-end (4.2%)
Decrease of 1 staff from FY 3/2020
2Q

14,042

＋936
staff
/year

8,000
7,000

FY 3/16-end

FY 3/17-end

FY 3/18-end

FY 3/19-end

Increase in automobiles-relatedcompanies
Although enrollment in somesemiconductor companies within theelectronic components andprecision・electrical machineryrelated companies increased,
overall, the number of enrolled staff
remained nearly unchanged from FY
3/2020 2Q-end due to downward
trends in production of electronic
components

FY 3/20
3Q-endCopyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

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

4,803

5,085

4,501
3,904

Number of skilled staff is increasing asplannedHowever, due to sluggish operating
conditions at assignment destinations, it
did not lead to a significant increase in net
sales

3,459
NISSO will continue to promote thestrategic development and assignment ofskilled staff for future growth

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-end

Jun.-end

Sep.-end

Dec.-end-end

Jun.-end

Sep-endDec.-end

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved13Account Companies (NISSO, Non-consolidated)Account Company Groups Net Sales and % of Total（Unit: Million yen/％）25,000

44.0%
43.8%

22,543

Account Companies net sales share ratio in FY 3/2020 3Q
was 43.8%(FY 3/2020 2Q: 44.1%)

43.6%
43.4%

20,08820,000

43.8%

43.2%
43.0%
42.8%

42.8%

42.6%
42.4%

15,000FY 3/19 3Q

FY 3/20 3Q

42.2%

FY 3/19 3Q

FY 3/20 3Q

Increase

Accounts
total(4 Groups)

20,08822,543

2,454

Total net sales

46,931

51,433

4,501% of Total

42.8%

43.8%

1.0 pts

Automobiles Account Company Group･･･Significant growth
due to the introduction of new car models, etc., and net sales
increased due to the active assignment of skilled staff
Electrical machinery Account Company Group･･･
Semiconductor-related production continues to be strong,and net sales increased due to assignment of personnel who
completed training
Electronic components Account Company Group･･･Although
there were increases in some areas, the market as a whole
did not recover, resulting in decreased net sales

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

Overall turnover rate: 4.7%
Skilled staff turnover rate: 1.9%(+0.1 pts vs. FY 3/2019)(+0.4 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

1.8

1.9

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(Apr.~Jun.)

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved(Apr.~Sep.)

FY 3/20 3Q(Apr.~Dec.)

15

Educational Achievements（NISSO, Non-consolidated）
2Q Course-specific educational achievements(total # of participants)
Training course
name

2Q(Jul - Sep)

(Reference）

3Q(Oct - Dec)

FY 3/20
YTD

Skilled staff
education

483

589 Standard skilled staff education

Accredited
vocational training
education

57

38 (Miyagi・Nagano Prefectures)

Manufacturing
education
Safety education
Basic
maintenanceeducation
Employeeeducation

717
1,182

65
115

2,619

FY 3/19
Total

1,465

2,522

167

318

MONOZUKURI education, pre-assignment
1,526 training for manufacturing staff, mobile
education

2,555

3,047

1,258 Danger・risk simulation education

2,602

1,322

186

167

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

411

292

Entrusted education from externalsources

28

22

7,414

7,690

Accredited vocational training school

Basic equipment maintenance82 education

Other education
Total（ Unit: # of Participants）

3,605

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Skilled staff education
participants increased
Course graduates were mainly
assigned to automobiles-related
and semiconductor companies

Basic maintenance education
participants were assigned to
semiconductor manufacturing
companies where demand isincreasing
Client demand is expected toincrease in the future16

Other Businesses Business Revenue
Results of Other Businesses
FY 3/19 3Q

Results（Unit: Million yen/％）

FY 3/20 3Q

Year-on-Year% of Total

Results% of Total

Increase(Decrease)% Change

2,068
2,084
(16)

100.0%
100.8%(0.8%)

217
40
176

11.7%
2.0%
-

Net sales

1,851

100.0%

Expenses

2,044

110.4%

Operating
loss

(192)

(10.4%)

FY 3/19

FY 3/20

Full year

Full-year
Forecast

2,485

2,799

2,732

2,840

(247)

(41)

 Although net sales increased due to the increase in the number of residents in Bldg. 6, the expected number of residents
has not been reached Other facilities (Bldg. 1 - 5) maintained high occupancy rates
 Full-year operating loss is expected to amount to -41 million yen due to shortfalls in the number of residents and increased costs
related to the introduction of new nursing care workers aimed at stabilizing services

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

# of
入居者数
residents

300
297

96.4%

295

95.7%

297

297

96.4%

96.4%

Occupancy
入居率
rate

100%

299

97.1%

290

90%
Dec '18-end

Mar '19-end

Jun '19-end

Sep '19-end

Dec '19-end# of[Bldg.6] (capacity:94)

70
60
50
40
30
20
10
0

residents
入居者数

44
27
28.7%

33
35.1%

46.8%

48

51.0%

Occupancy

rate
入居率

59
62.8%

0%
Dec '18-end

Mar '19-end

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

Jun '19-end

Sep '19-end

Dec '19-end

17

1-2

Future Prospects

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18

Future Market Trends and Responses
Overall manufacturing industry… Severe conditions are expected due to the impact of U.S.-China
trade issues and sluggish personal consumption
Automobiles…Domestic production is not expected to grow as in the past
Electronic devices… While there are signs of recovery in some areas, the recovery period of theentire industry is expected to be delayed until next FY year onward

Demand for human resources in client markets is expected to remain weak

※Investments in human resources development will continue by appropriately assessing market trends※Main Company-specific Measures(Automobiles companies) Further strengthen relationships with manufacturers, enhance the quality of assigned
personnel, and strive to increase market shares(Semiconductor companies) Promote the development and assignment of equipment maintenance personnel and secure
OP demand in anticipation of future expansion of growth(Electronic components companies) Improve productivity and operation rates with equipment maintenance + OP structure
to increase production hereafter
Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

19Medium- to Long-term Growth
Hereafter, the environments of manufacturing sites are expected to change significantly, as
technologies such as IoT, artificial intelligence, and robotics evolve and life cycles of products areshortened.
NISSO views these changes as opportunities, and will formulate plans for faster and greater growth.

【Story of Growth】
NISSO will strive to enhance our basic strategy, "Aiming to raise unit-costs and improve profitability
through the assignment of skilled staff to important clients, centering on Account Companies", toexpand into the growth sectors of Account Companies, and will promote the development of humanresources, including skilled staff, who can provide services that respond to the more advanced needsof our clients
NISSO will also strengthen investments in the production technology domain more than ever before,
establishing it as a new business model, and strive to expand our business domains※The details of the strategy will be explained in the Medium-term Management Plan scheduled to be announced in May 2020.

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved20２. Earnings Forecast for FY 3/2020

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FY 3/2020 Outlook for Consolidated Earnings
NISSO announces the revision of the Full-year Consolidated Forecast for FY 3/2020 (April 1, 2019 - March 31, 2020) which
was announced on May 10, 2019, based on recent business performance trends.

◆ Full-year Consolidated Forecast for the FY 3/2020(April 1, 2019 ~ March 31, 2020)（Unit: Million yen/%）

Initialforecast

RevisedNet sales

80,00074,300Operating profit

3,900

2,700

4.9%

3.6％

4,000

2,750

（Profit margin, %）

5.0%

3.7％

Profit attributableto owners ofparent

2,760

1,840

3.5%

2.5％

（Profit margin, %）Ordinary profit

Comparison w.
initial forecast
Increase% Change(Decrease)(5,700)(7.1%)(1,200) (30.8%)(1,250) (31.3%)

FY 3/19
Results

69,161
2,869
4.1％

2,895
4.2％

Year-on-Year
Increase(Decrease)% Change

5,138

7.4%

(169)

(5.9%)(145)(5.0%)

2,053(920) (33.3%)

3.0％(213) (10.4%)（Profit margin, %）Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved22Outlook for Consolidated Earnings Trends
Net sales

Operating profit（Unit: Million yen）

（Unit: Million yen）

80,00074,300

2,700

2,500

69,16170,000

2,869

3,000

2,000

1,800

59,20860,0001,500

53,533999
1,000

50,000860

47,335500

040,000FY 3/16

FY 3/17

FY 3/18

FY 3/19

FY 3/20
Expected

FY 3/16

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

FY 3/17

FY 3/18

FY 3/19

FY 3/20
Expected23

３. Topics

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

24Topics ①
Nikon Nisso Prime Corporation launched"Creating a society where people can continue to work"
Nikon Nisso Prime Corporation inherits part of the business of its predecessor, Nikon Staff Service Corporation,
and was launched on January 6, 2020 with the aim of integrating the expertise of Nikon Corporation and NISSO CORPORATION
and creating synergy through collaboration.
By supporting the active participation of older employees of the Nikon Group, starting with the expanding and the securing of
their employment opportunities, and conducting the research and development of a structure that enables older people insociety to continue working, Nikon Nisso Prime Corporation aims to create a "social platform that allows anyone with a desire towork to adapt to changes in the social environment and continue to work".

Nikon Nisso Prime will strive to contribute as a member of society that creates a better future.

【Company Overview】
Company name

Nikon Nisso Prime Corporation（Japanese: 株式会社ニコン日総プライム）

Head office location Shin-Yokohama 214 Bldg. 8F, 2-14-2 Shin-Yokohama, Kohoku-ku, Yokohama, Kanagawa
Representative

President

Shareholders

Nikon Corporation (TSE1 7731) 51% NISSO CORPORATION (TSE1 6569) 49%

Capital50 Million JPY

Main Businesses

Comprehensive HR Services, Outsourcing Business
Planning, R&D, operation and support of structure development and opportunity creation
for seniors' continued employment

URL

Masahiko Yoshidahttps://www.n-prime.co.jp
Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved(Nikon Nisso Prime Corporation)

25

Topics ②

NISSO was selected as First Place for the 2nd consecutive year
in the Oricon Customer Satisfaction® ranking 2020 for"Manufacturing Dispatching"
In addition, NISSO was ranked #1 in all 6 pre-set evaluation items
Evaluation Items･･･”Ease of Registration･Contract”, “In-house Training”, “Welfare Programs”,“Response of Contact Personnel”, “Information Provided”, and“Negotiating Capability”【Survey Overview】
Survey period: 9/11/2019~9/17/2019
Updated date: 1/6/2020# of samples: 1,155 people
Minimum # 50+ peopleof people:# of companies
evaluated: 22

Survey respondents
Gender： No specification
Age： 18+ yrs. old
Region： Nationwide
Conditions :Persons dispatched from dispatchingcompanies within the past 7 years with
manufacturing-related work experience

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26

4.

Shareholder Return Policy

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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 structurethat 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, although the full-year consolidated results have been downwardly revised, thedividend amount per share (25.00 yen) announced on May 10, 2019 in the "Summary of Consolidated Financial Results for
FY 3/2019 [Japanese GAAP] (Consolidated) Dividend Forecast" is not scheduled to change.
Dividend（Yen）

Dividend

Dividend payout ratio

30

45.6 ％

Dividend
payout ratio
（％）

50

45
25
20

40
27.7 ％

30.0 ％

35
25.0 yen

15

25
18.5 yen

20

10
5

30

15
10.5 yen1050

FY 3/2018

FY 3/2019

FY 3/2020 (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 ⓒ 2020 NISSO CORPORATION All Rights Reserved

28

5.

Supplementary Materials

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved29Consolidated Balance Sheet(Unit: Million yen/%)Mar. 2019-end
AmountCurrent assets

Dec. 2019-end% of Total

Amount% of Total

Increase(Decrease)

14,17467.4

14,318

68.2

143

Cash and deposits

5,633

26.8

5,564

26.5

(69)

Notes and accounts receivable-trade

7,757

36.9

7,901

37.6

143

6,844

32.6

6,671

31.8

(173)

4,942

23.5

4,944

23.6

1

359

1.7

400

1.9

40

1,542

7.3

1,327

6.3

(215)

Total assets

21,019100

20,989100(29)

Current liabilities

9,161

43.6

8,480

40.4

(681)

Accrued expenses

4,751

22.6

4,859

23.2

108

742

3.5

192

0.9

(549)

738

3.5

440

2.1

(298)

1,312

6.2

1,307

6.2

(4)

750

3.6

658

3.1

(92)

Total liabilities

10,474

49.8

9,788

46.6

(686)

Shareholders' equity

10,53550.1

11,236

53.5

701

Total net assets

10,54450.2

11,201

53.4

656

Total liabilities and net assets

21,019100

20,989100(29)

Non-current assets
Property, plant and equipment

Intangible assets
Investments and other assets

Income taxes payable

Provision for bonuses
Non-current liabilities
Long-term loans payable

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved

Point① Sale of shares
Non-current assets (investments
and other assets) decreased dueto the sale of cross-shareholdings② Payment of taxes
Current liabilities decreased due
to payments for (corporate)income taxes and bonuses③Overall
As a result of the above and therecording of profits, liabilities
decreased and net assets
increased

30

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〉
IR Division, PR・IR Department
NISSO COROPORATION
TEL： 045-777-7630
E-mail ： ir@nisso.co.jp
URL： http://www.nisso.co.jp/

Copyright ⓒ 2020 NISSO CORPORATION All Rights Reserved31