Summary of Consolidated Financial Results for the First Six Months of FY 3/2021[Japanese GAAP]
Company Name
Securities Code
Representative
Contact Person

NISSO CORPORATION
6569
ＵＲＬ https://www.nisso.co.jp/
Chairman, President (CEO) &（Name）Ryuichi Shimizu(Title)Representative Director
Sr. Executive Officer,(Title)Corporate Planning Dept.
（Name）Kenichi Nomura
Director

Scheduled date of filing
Quarterly Report

Scheduled date ofNovember 12, 2020

November 6, 2020
Stock Exchange Listing: Tokyo

ＴＥＬ +81-45-514-4323－

payment of dividend

Preparation of supplementary materials
for quarterly financial results: Yes
Holding of quarterly financial resultsmeeting: Yes（for institutional investors and analysts）（All amounts are rounded down to the nearest million yen）

1. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2021
(April 1, 2020 – September 30, 2020)(1) Consolidated results of operations（Percentages represent year-on-year changes）
Profit attributable
Net sales
Operating profit
Ordinary profit
to owners of parent
First six months ended

Millionyen％

Millionyen％

Millionyen％

Millionyen％

September 30, 2020
September 30, 2019

32,972
36,797(10.4)
12.2

731
1,128

(35.2)
23.2

989
1,154

(14.3)
24.0

596
785

(24.0)
33.5(Note) Comprehensive income

For the first six months ended September 30, 2020:
For the first six months ended September 30, 2019:

Diluted net income
per share

Net income per shareFirst six months ended

September 30, 2020
September 30, 2019598 Million yen (-19.4%)
741 Million yen ( 24.3%)

Yen

Yen

17.65
23.39

17.58
23.14

(Note) The Company's common stock was split at a ratio of 2 shares for 1 share on May 1, 2019. "Net income per share" and"diluted net income per share" are calculated assuming that the shares were split at the beginning of the previous
consolidated fiscal year.

(2) Consolidated financial position
Total assets
As of

September 30, 2020
March 31, 2020
(Reference) Equity capital

Net assets

Equity ratio

Million yen

Million yen％

20,77022,494

11,664
11,89556.2
52.9

As of September 30, 2020:
As of March 31, 2020:

11,664 Million yen
11,895 Million yen

2. Dividends
Dividend per share
1Q-endFiscal year ending
March 31, 2020
Fiscal year ending
March 31, 2021
Fiscal year ending
March 31, 2021
(Forecast)

2Q-end3Q-endYear-end

Total

Yen

Yen

Yen

Yen

Yen

－

0.00

－

25.00

25.00

－

0.00
－

11.53

11.53

(Note) Revisions to the most recently announced dividend forecast: Yes

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2021
(April 1, 2020 – March 31, 2021)（Percentages represent year-on-year changes）
Profit
Net income per
Net sales
Operating profit Ordinary profit attributable toshareowners of parent
Millionyen

Full year％

67,000 (10.6)

Millionyen％

1,800 (41.2)

Millionyen％

2,100 (33.3)

Million
yen

％

Yen

1,300 (36.1)

38.43(Note) 1. Revisions to the most recently announced consolidated earnings forecast: Yes
2. For details regarding the Consolidated Forecast, please refer to the "Notice of Revisions of Full-year Consolidated
Forecast and Dividend Forecast for the Fiscal Year Ending March 31, 2021" announced today (Friday, November 6, 2020).

※

Notes
(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting inchanges in the scope of consolidation): None
Newly added: （Co. name）, Excluded: （Co. name）(2) Application of special accounting methods for the presentation of quarterly consolidated financial
statements: None
(3) Changes in accounting policies and accounting estimates, and restatements① Changes in accounting policies due to revisions in accounting standards, etc.:② Changes in accounting policies other than ① above:③ Changes in accounting estimates:④ Restatements:

None
None
None
None

(4) Number of outstanding shares (Common stock)①②③

Number of shares outstanding at
the end of the period (including
treasury shares)
Number of treasury shares at theend of the period
Average number of shares
outstanding during the period

As of Sep.
30, 2020
As of Sep.
30, 2020

34,201,200 Shares

366,381

SharesFirst sixmonths ended
Sep. 30, 2020

As of Sep.
30, 2019
As of Sep.
30, 2019

34,201,200 Shares

390,853

SharesFirst six
33,818,504 Sharesmonths ended

33,574,276 SharesSep. 30, 2019

（Note）The Company's common stock was split at a ratio of 2 shares for 1 share on May 1, 2019. "Number of shares
outstanding at the end of the period", "number of treasury shares at the end of the period" and "average numberof shares outstanding during the period" are calculated assuming that the shares were split at the beginning of
the previous consolidated fiscal year.

※

The quarterly financial statement is not subject to the quarterly review procedures of certified public
accountants or auditing corporations※

Cautionary statement on the appropriate use of earning forecasts, and other special items（Notes on forward-looking statements, etc.）
・ Earnings forecasts regarding future performance and other forward-looking statements in thismaterial are based on certain assumptions judged to be valid and on information that is currently
available to the Company, and do not represent promises by the Company that these figures will beachieved. In addition, actual results may differ significantly due to a variety of factors. For
prerequisite conditions, etc. regarding the earnings forecasts, please refer to "1. Qualitative
Information on Quarterly Financial Results, (3) Description of Future Forecast Information such as
Consolidated Forecasts, etc." on P.4 of the attachments.
（Supplementary materials for quarterly financial results and method of obtaining content for quarterly
financial results meeting）
The Company is planning to hold a briefing session for institutional investors and analysts on
Tuesday, November 10, 2020.
Quarterly financial results briefing materials to be used on that day will be posted on the Company's
website on the day of the announcement of financial results (Friday, November 6, 2020).

（Reference）Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2021
(April 1, 2020 – September 30, 2020)(1) Non-consolidated results of operations）（Percentages represent year-on-year changes）
Net sales

Operating profit

Ordinary profit

Quarterly net profit

First six months ended

Millionyen％

Millionyen％

Millionyen％

Millionyen％

September 30, 2020
September 30, 201930,15533,955(11.2)
13.3

760
1,131

(32.8)
15.8

977
1,136

(14.0)
15.6

605
777

(22.0)
23.5

Diluted net income
per share

Net income per shareFirst six months ended

September 30, 2020
September 30, 2019

Yen

Yen

17.92
23.14

17.84
22.89

(Note) The Company's common stock was split at a ratio of 2 shares for 1 share on May 1, 2019. "Net income per share" and"diluted net income per share" are calculated assuming that the shares were split at the beginning of the previous fiscal
year.

(2) Non-consolidated financial position
Total assets
As of

September 30, 2020
March 31, 2020
(Reference) Equity capital

Net assets

Equity ratio

Million yen

Million yen％

18,34720,024

11,024
11,24760.1
56.2

As of September 30, 2020:
As of March 31, 2020:

11,024 Million yen
11,247 Million yen

○Contents of Attachments
１．Qualitative Information on Quarterly Financial Results ……………………………………………………

2（１）Description of Results of Operations ………………………………………………………………………

2（２）Description of Financial Position ……………………………………………………………………………

4（３）Description of Future Forecast Information such as Consolidated Forecasts, etc. ………………

4

２．Quarterly Consolidated Financial Statements and Notes ………………………………………………………

5（１）Quarterly Consolidated Balance Sheet ………………………………………………………………………

5（２）Quarterly Consolidated Statements of Income and Comprehensive Income ……………………………

6

Quarterly Consolidated Statement of Income
For the First Six Months ended September 30, 2020 ……………………………………………………

6

Quarterly Consolidated Statement of Comprehensive Income
For the First Six Months ended September 30, 2020 ……………………………………………………

7（３）Notes regarding Quarterly Consolidated Financial Statements …………………………………………

8（Notes regarding the Going Concern Assumption） …………………………………………………………

8（Notes on Significant Changes in the Amount of Shareholders' Equity） ……………………………

8（Additional Information） ………………………………………………………………………………………

8

－

1 －

１．Qualitative Information on Quarterly Financial Results（１）Description of Results of Operations
Although Japan's economy during the current consolidated cumulative second quarter (hereinafter, the"period under review") remained in harsh conditions due to the spread of the new coronavirus
infections (hereinafter, "COVID-19 infections"), economic activity has been recovering recently. On
the other hand, it is necessary to pay close attention to the effects of weakening demand andfluctuations in financial and capital markets due to the spread of COVID-19 infections overseas.
As for the business environment surrounding the Nisso Group (hereinafter, the "Group"), domestic
manufacturers, who are important clients, have shown signs of a recovery in the production oftransportation equipment (mainly automobiles) and the production of electronic components and devices
has generally remained flat due to increased demand for IT due to changes in 5G and work-styles. Also,in terms of employment conditions, although the number of employed persons and new job openings havedecreased significantly, some manufacturers, who are NISSO CORPORATIONS's (hereinafter, the "Company")clients, are showing signs of improvement in their needs for utilizing external human resources.
In this environment, based on its founding philosophy of " Nurturing and Bringing Out the Best in
People", the Group will continue to implement the following initiatives in order to achieve theenhancement of corporate value, with the aim of creating workplaces where workers can gain a sense offulfillment and flourish, as well as providing services that can contribute to its growth as acompany.
In the period under review, in manufacturing-related human resources services, the Group's corebusiness, the Company has been actively developing human resources by utilizing its own educational
facilities in order to improve the skills and retention rate of manufacturing staff, under the
strategy of focusing on the assignment of "skilled staff", who are indefinite-term employees, toAccount Companies, who are positioned as important clients.
In Other Businesses, the Group has been making efforts to improve its management structure byenhancing the quality of services provided at "Sweetpea", its nursing care facilities located in 6
locations in Yokohama, increasing the number of its residents, promoting operational efficiency.
In addition, non-operating income generated 274 million yen in subsidy income. This was mainly due
to subsidies for employment adjustment associated with the spread of COVID-19 infections.
As a result, the results of operations for the period under review are as follows: net sales of
32,972 million yen (down 10.4% year-on-year), operating profit of 731 million yen (down 35.2% year-onyear), ordinary profit of 989 million yen (down 14.3% year-on-year), and profit attributable to ownersof parent amounted to 596 million yen (down 24.0% year-on-year).
Based on its policy of putting the safety of its clients and employees as a top priority, although
the Group has established the "COVID-19 Countermeasures Headquarters" and is conducting businessactivities that strengthen measures to prevent the spread of COVID-19 infections, in the event of an
occurrence where individuals are affected by the virus at its clients, workplaces or nursing carefacilities, the business performance of the Group may be affected. With the lifting of the state of
emergency declaration, economic activity has gradually resumed, and the economic activities of clients
related to the Company are likely to recover, and it is believed that the utilization needs ofexternal human resources will also recover from the third quarter onwards.
The results of operations by segment are as follows:（Human Resources Services Business）
Within the General Human Resources Services Business, the Company carries out manufacturing
dispatching and contracting for its manufacturing-related human resources services, general office
work dispatching and BPO (Business Process Outsourcing: the outsourcing of operations and processes of
specific business-related tasks to a [third-party] specialized company) for its administrative humanresources services.
In manufacturing-related human resources services, the core business which accounted for 91.5% ofconsolidated net sales during the period under review, the Company is making efforts to increase themotivation of manufacturing staff to work and improve the retention rate by implementing educationthat enhances added value, including the use of on-line education, etc., as well as its own
educational facilities. Net sales in the automobiles-related industry decreased (down 18.6% year-onyear) due to sluggish demand as a result of the spread of COVID-19 infections, and net sales in theelectronic devices-related industry increased (up 4.6% year-on-year) due to strong semiconductorrelated production, including investments in IT infrastructure. The Group has been engaged in business－

2 －activities on the premise of protecting the employment of manufacturing staff. Although the need forexternal human resource utilization of clients have been improving at some manufacturers, it has beensluggish overall, and the number of enrolled staff decreased by 2,246 compared to the end of theprevious consolidated fiscal year.
On the other hand, in the period under review (July 1, 2020 to September 30, 2020), although net
sales related to Account Company Groups, who are positioned as important clients, decreased (down 4
million yen year-on-year), the net sales share ratio was at 48.0% (which was at 44.2% in thecorresponding period of the previous year). Also, the needs of skilled staff, who have a high set ofskills and high retention rates, remained firm, the number of such staff increased by 43 compared tothe end of the previous consolidated fiscal year.
However, in the period under review, despite efforts to control expenses such as recruitment
expenses, decreases in staff enrollment and net sales were not fully absorbed, resulting in decreased
revenue and profits.
As a result, net sales amounted to 31,515 million yen (down 11.1% year-on-year), and operating
profit was 771 million yen (down 31.5% year-on-year).
（Other Businesses）
The Company operates nursing care businesses for its Other Businesses.
In the facilities nursing care business, which is the core business of this business segment, thenumber of residents of the nursing care facility, "Sweetpea Higashi Totsuka" increased during theperiod under review as a result of promoting on-line facility preview events on the premise of
preventing the spread of COVID-19 infections. In terms of costs, the cost of sales, such as personnel
and operating expenses also increased, and although efforts were made to reduce such expenses, they
were not absorbed, resulting in increased revenues and decreased profits.
As a result, net sales amounted to 1,461 million yen (up 6.7% year-on-year), and operating loss was
39 million yen (which was an operating profit of 2 million yen in the corresponding period of theprevious year).

－3 －（２）Description of Financial Position（Assets）
Current assets at the end of the period under review amounted to 13,583 million yen, which was adecrease of 2,038 million yen from the end of the previous consolidated fiscal year. This was mainly
due to decreases of 1,192 million yen in notes and accounts receivable (trade), and 794 million yen in
cash and deposits.
Non-current assets at the end of the period under review amounted to 7,186 million yen, which was anincrease of 314 million yen from the end of the previous consolidated fiscal year. This was mainly due
to an increase of 334 million yen in "other" under the investments and other assets category.
As a result, total assets amounted to 20,770 million yen, which was a decrease of 1,723 million yen
from the end of the previous consolidated fiscal year.
（Liabilities）
Current liabilities at the end of the period under review amounted to 7,802 million yen, which was adecrease of 1,476 million yen from the end of the previous consolidated fiscal year. This was mainly
due to decreases of 329 million yen in accrued expenses and 327 million yen in income taxes payable.
Non-current liabilities at the end of the period under review amounted to 1,302 million yen, which
was a decrease of 16 million yen from the end of the previous consolidated fiscal year. This was
mainly due to a decrease of 68 million yen in long-term loans payable.
As a result, total liabilities amounted to 9,105 million yen, which was a decrease of 1,492 million
yen from the end of the previous consolidated fiscal year.
（Net assets）
Total net assets at the end of the period under review amounted to 11,664 million yen, which was adecrease of 230 million yen from the end of the previous consolidated fiscal year. This was mainly due
to the 596 million yen in profit attributable to owners of parent, and 845 million yen in dividends ofsurplus.
As a result, the equity ratio was at 56.2% (which was at 52.9% at the end of the previous
consolidated fiscal year).
（３）Description of Future Forecast Information such as Consolidated Forecasts, etc.
Based on the results of the period under review, the Full-year Consolidated Forecast and Dividend
Forecast announced on August 7, 2020 has been revised.
For details, please refer to the "Notice of Revisions of Full-year Consolidated Forecast andDividend Forecast for the Fiscal Year Ending March 31, 2021" announced today (Friday, November 6,2020).

－

4 －２．Quarterly Consolidated Financial Statements and Notes（１）Quarterly Consolidated Balance Sheet(Unit: Million yen)
FY 3/20

2Q of FY 3/21

(As of Mar. 31, 2020)(As of Sep.30, 2020)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Current portion of long-term loans payable
Accrued expenses
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

－

5 －

6,365
8,434
827
(4)
15,622

5,570
7,241
776
(4)
13,583

1,852
2,738
164
4,754
377

1,815
2,738
177
4,730
389

1,740
(0)
1,739
6,871
22,494

2,074
(7)
2,066
7,186
20,770

126
4,648
812
879
2,812
9,279

137
4,318
485
992
14
1,854
7,802

623
303
392
1,319
10,598

555
391
356
1,302
9,105

2,012
2,369
7,926
(334)
11,974

2,012
2,365
7,678
(313)
11,742

1(79)(78)
11,89522,494

1(78)(77)
11,664
20,770（２）Quarterly Consolidated Statements of Income and Comprehensive Income（Quarterly Consolidated Statement of Income）（For the First Six Months ended September 30, 2020）(Unit: Million yen)First six months of
FY 3/20(Apr. 1, 2019 –Sep. 30, 2019)

First six months of
FY 3/21(Apr. 1, 2020 –Sep. 30, 2020)

36,79730,587
6,210
5,082
1,128

32,972
27,879
5,093
4,361
731

1
3
24
16
16
63

1
0
274
20
12
309

7

6

1

4

8
19
37
1,154

10
30
51
989

64
64

-

3
3
1,214
423
6
429
785
785

50
50
938
388
(47)
341
596
596

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Subsidy income
House rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodRent expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales of investment securities
Directors' retirement benefits
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent－

6 －（Quarterly Consolidated Statement of Comprehensive Income）（For the First Six Months ended September 30, 2020）(Unit: Million yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests－

7 －First six months of
FY 3/20(Apr. 1, 2019 –Sep. 30, 2019)

First six months of
FY 3/21(Apr. 1, 2020 –Sep. 30, 2020)

785

596

(41)
(2)

1

(0)

(0)

(43)
741

1
598

741

598

-

-

（３）Notes regarding Quarterly Consolidated Financial Statements（Notes regarding the Going Concern Assumption）
Not applicable.
（Notes on Significant Changes in the Amount of Shareholders' Equity）
Not applicable.
（Additional Information）（Accounting Estimates Associated with the Spread of COVID-19 Infections）
There are no significant changes to the assumptions, including the timing of the convergence of theeffects of COVID-19 infections, as described in the (Additional Information) section of the Notes
regarding Quarterly Consolidated Financial Statements for the previous period under review (firstquarter consolidated accounting period).

－

8 －