Summary of Consolidated Financial Results for the First Nine Months of FY 3/2021[Japanese GAAP]
February 8, 2021
Company Name
Securities CodeNISSO CORPORATION
Stock Exchange Listing: Tokyo
6569
ＵＲＬ https://www.nisso.co.jp/
Chairman, President, CEO &Representative(Title)（Name）Ryuichi Shimizu
Representative Director
Sr. Executive Officer,
Contact Person(Title)Corporate Planning Dept.
（Name）Kenichi Nomura
ＴＥＬ +81-45-514-4323
Director
Scheduled date of filing
Scheduled date of
2021年２月10日－
Quarterly Report
payment of dividend
Preparation of supplementary materials
for quarterly financial results: Yes
Holding of quarterly financial results(Video of financial results explanation will be posted on the Company's
meeting: Yes
website on Feb. 10, 2021 (Wednesday) in Japanese only)（All amounts are rounded down to the nearest million yen）

1.

Consolidated Financial Results for the First Nine Months of the Fiscal Year Ending March 31, 2021
(April 1, 2020 - December 31, 2020)(1) Consolidated results of operations（Percentages represent year-on-year changes）
Net sales

Operating profit

Ordinary profit

Profit attributableto owners of parent

First nine months ended

Millionyen％

Millionyen％

Millionyen％

Millionyen％

December 31, 2020
December 31, 201950,442
55,718

(9.5)
8.8

1,678
1,896

(11.5)
(3.0)

2,005
1,940

3.4
(1.6)

1,284
1,307

(1.8)
1.6

(Note) Comprehensive income

For the first nine months ended December 31, 2020:
For the first nine months ended December 31, 2019:

Net income per shareFirst nine months ended

December 31, 2020
December 31, 2019

1,285 Million yen (1.8%)
1,262 Million yen (1.6%)

Diluted net income
per share

Yen

Yen

37.96
38.93

37.81
38.51

(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 ofDecember 31, 2020
March 31, 2020
(Reference) Equity capital2.

Net assets

Equity ratio

Million yen

Million yen％

21,31822,494

12,352
11,89557.9
52.9

As of December 31, 2020:
As of March 31, 2020:

12,352 Million yen
11,895 Million yen

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

－
20.10

20.10

(Note) Revisions to the most recently announced dividend forecast: None
Fiscal year ending March 31, 2021 (Forecast) Breakdown of year-end dividends
Ordinary dividend: 15.10 yen Commemorative dividend: 5.00 yen
For the revision of the dividend forecast, please refer to the "Notice of Revision of Dividend Forecast for the Fiscal
Year Ending March 31, 2021 (50th Anniversary Commemorative Dividend)" announced today (February 8, 2021).

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

Full year

Millionyen％

68,000(9.3)

Millionyen％

2,400 (21.6)

Millionyen％

Million
yen

％

Yen

2,750 (12.7)

1,700(16.4)

50.26(Note) Revisions to the most recently announced consolidated earnings forecast: No

※

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 Dec. 31,
2020
As of Dec. 31,
2020

34,201,200 Shares

366,381

SharesFirst ninemonths ended
Dec. 31, 2020

As of Mar. 31,
2020
As of Mar. 31,
2020

34,201,200 Shares

390,853

SharesFirst nine
33,823,943 Sharesmonths ended

33,578,314 SharesDec. 31, 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 number ofshares outstanding during the period" are calculated assuming that the shares were split at the beginning of theprevious 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）
Materials related to the explanation of the Company's financial results are scheduled to be posted on
its website on February 8, 2021 (Monday).
In addition, a video of the Financial Results Explanation is scheduled to be posted on the Company's
website on February 10, 2021 (Wednesday). (In Japanese only)（Reference）Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the First Nine Months of the Fiscal Year Ending March 31, 2021
(April 1, 2020 – December 31, 2020)(1) Non-consolidated results of operations（Percentages represent year-on-year changes）
Net sales

Operating profit

Ordinary profit

Quarterly net profit

First nine months ended

Millionyen％

Millionyen％

Millionyen％

Millionyen％

December 31, 2020
December 31, 201946,191
51,433(10.2)
9.6

1,718
1,915

(10.3)
(5.3)

1,962
1,917

2.3
(4.7)

1,263
1,304

(3.1)
(1.2)

Net income per shareFirst nine months ended

December 31, 2020
December 31, 2019

Diluted net income
per share

Yen

Yen

37.37
38.84

37.21
38.43

(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 ofDecember 31, 2020
March 31, 2020
(Reference) Equity capital

Net assets

Equity ratio

Million yen

Million yen％

18,87320,024

11,682
11,24761.9
56.2

As of December 31, 2020:
As of March 31, 2020:

11,682 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 Nine Months ended December 31, 2020 ……………………………………………………

6

Quarterly Consolidated Statement of Comprehensive Income
For the First Nine Months ended December 31, 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 third 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 the downward risks of
economic activity and fluctuations in financial and capital markets associated with the spread of
COVID-19 infections overseas.
As for the business environment surrounding the Nisso Group (hereinafter, the "Group"), productionof transportation equipment (mainly automobiles) has been steady at domestic manufacturers, who areimportant clients, and the production of electronic components and devices has been increasing
moderately due to increased demand for IT as a result of changes in 5G and work-styles. Also, in termsof employment conditions, there have been signs of firmness in developments such as the number of
employed persons, and some manufacturers of NISSO CORPORATION's (hereinafter, the "Company") clients
have seen improvements 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 the 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, and promoting operational efficiency.
In addition, 359 million yen in subsidy income was generated in non-operating income. This was
mainly due to subsidies from employment adjustments 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
50,442 million yen (down 9.5% year-on-year), operating profit of 1,678 million yen (down 11.5% yearon-year), ordinary profit of 2,005 million yen (up 3.4% year-on-year), and profit attributable toowners of parent amounted to 1,284 million yen (down 1.8% year-on-year).
Based on its policy of putting the safety of its clients and employees as a top priority, the Grouphas established the "COVID-19 Countermeasures Headquarters" and is conducting business activities thatstrengthen measures to prevent the spread of COVID-19 infections. Going forward, the Group's businessperformance is expected to remain firm as the economic activities of clients related to the Company
recover and the needs for external human resources resume. On the other hand, in the event of an
occurrence where individuals are affected by the virus at its clients, workplaces or nursing carefacilities, the Group may be affected.
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 91.6% 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. With the recovery of economic activity in the period under review (October 1,
2020 to December 31, 2020), the number of clients who increased both production and personnel
increased, and as a result of efforts to recover the quantity of orders, net sales in the automobilesrelated industry improved (down 15.5% year-on-year). In addition, net sales in the electronic devicesrelated industry increased (up 3.4% year-on-year) due to strong semiconductor-related production-2-

against the backdrop of investments in IT infrastructure. The Group is engaged in business activities
on the premise of protecting the employment of manufacturing staff, and although the number ofenrolled staff decreased by 2,078 compared to the end of the previous consolidated fiscal year, it has
started to increase compared to the end of the previous period under review. Moreover, net sales per
capita has also started to increase.
In addition, in the manufacturing-related human resources services during the period under review,
although net sales related to Account Company Groups, who are positioned as important clients,
decreased (down 14 million yen year-on-year), the net sales share ratio was at 47.1% (which was at
43.3% in the corresponding period of the previous year). Also, the needs of skilled staff, who have ahigh set of skills and high retention rates, remained strong, and the number of such staff increased
by 131 compared to the 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 48,229 million yen (down 10.1% year-on-year), and operating
profit was 1,702 million yen (down 11.0% 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, and operating loss decreased compared to the previous
period under review. On the other hand, in terms of costs, the cost of sales, such as personnel andoperating 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 2,220 million yen (up 7.4% year-on-year), and operating loss was
21 million yen (which was an operating loss of 16 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 14,284 million yen, which was adecrease of 1,338 million yen from the end of the previous consolidated fiscal year. This was mainly
due to a decrease of 1,339 million yen in notes and accounts receivable (trade).
Non-current assets at the end of the period under review amounted to 7,034 million yen, which was anincrease of 162 million yen from the end of the previous consolidated fiscal year. This was mainly due
to an increase of 224 million yen in "other" under the investments and other assets category.
As a result, total assets amounted to 21,318 million yen, which was a decrease of 1,175 million yen
from the end of the previous consolidated fiscal year.
（Liabilities）
Current liabilities at the end of the period under review amounted to 7,651 million yen, which was adecrease of 1,627 million yen from the end of the previous consolidated fiscal year. This was mainly
due to decreases of 72 million yen in income taxes payable and 392 million yen in provision forbonuses.
Non-current liabilities at the end of the period under review amounted to 1,314 million yen, which
was a decrease of 4 million yen from the end of the previous consolidated fiscal year. This was mainly
due to a decrease of 103 million yen in long-term loans payable.
As a result, total liabilities amounted to 8,965 million yen, which was a decrease of 1,632 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 12,352 million yen, which was anincrease of 456 million yen from the end of the previous consolidated fiscal year. This was mainly due
to the 1,284 million yen in profit attributable to owners of parent, and 845 million yen in dividendsof surplus.
As a result, the equity ratio was at 57.9% (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.
The full-year consolidated forecast announced on November 6, 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 on January 19, 2021.
In addition, the year-end dividend forecast announced on January 19, 2021 has also been revised.
For details, please refer to the "Notice of Revision of Dividend Forecast for the Fiscal Year Ending
March 31, 2021 (50th Anniversary Commemorative Dividend)" announced today (Monday, February 8, 2021).

-4-

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

3Q of FY 3/21

(As of Mar. 31, 2020)(As of Dec. 31, 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
Provision for loss on cancellation
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

6,352
7,094
841
(5)
14,284

1,852
2,738
164
4,754
377

1,837
2,738
142
4,718
358

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

1,964
(7)
1,956
7,034
21,318

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

160
4,444
84
486
31
26
2,416
7,651

623
303
392
1,319
10,598

520
434
359
1,314
8,965

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

2,012
2,365
8,365
(313)
12,4291(79)(78)
11,89522,4941(78)(76)
12,352
21,318

（２）Quarterly Consolidated Statements of Income and Comprehensive Income（Quarterly Consolidated Statement of Income）（For the First Nine Months ended December 31, 2020）(Unit: Million yen)First nine months of FY 3/20
First nine months of FY 3/21
(Apr. 1, 2019 - Dec. 31, 2019) (Apr. 1, 2020 - Dec. 31, 2020)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted forusing equity method
Subsidy income
House rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted forusing equity method
Rent expenses
Provision for loss on cancellation
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-controllinginterests
Profit attributable to owners of parent-6-55,71846,203
9,515
7,619
1,896

50,44242,009
8,433
6,754
1,678

2
3

2
0

-

6

48
25
22
103

359
30
18
417

11

8

2

-

18
27
59
1,940

16
26
38
91
2,005

71
71

-

3
3
2,007
581
119
700
1,307

50
50
1,954
578
92
670
1,284

-

-

1,307

1,284

（Quarterly Consolidated Statement of Comprehensive Income）（For the First Nine Months ended December 31, 2020）(Unit: Million yen)First nine months of FY 3/20
First nine months of FY 3/21
(Apr. 1, 2019 - Dec. 31, 2019) (Apr. 1, 2020 - Dec. 31, 2020)

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Remeasurements of defined benefit plans,
net of tax
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of parent
Comprehensive income attributable to noncontrolling interests

-7-

1,307

1,284

(41)

-

(3)

1

(0)

0

(44)
1,262

1
1,285

1,262

1,285

-

-

（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 first quarter consolidated accounting
period.
In determining the recoverability of deferred tax assets and determining the impairment loss of noncurrent assets, the Company assumes that the effects of the spread of COVID-19 infections will continue
to gradually recover from the third quarter onwards.

-8-