NISSO CORPORATION【Main Q&AExplanation of Financial Results for the First Nine Months of FY 3/2021】

Announced on February 10, 2021
The following content contains the main questions and answers from the questions
received after the announcement. In addition, some revisions and corrections havebeen made to make the content easier to understand.
Q１：What are the major factors contributing to the recovery in businessperformance?
A１：In addition to the fact that the effects of COVID-19 have subsided, and there
have been almost no operational adjustments, operations increased in 3Q.
Another reason is that the number of enrolled staff has started to increase due tothe recovery of human resources needs and improvements in turnover rates.
Q２：What are the factors contributing to the increase in net sales per capita?
A２：In 3Q, operations increased, but more specifically, since October, holiday workand overtime have increased. Compared to 2Q (18.9 hours/monthly average), in3Q, the monthly average increased to 23.2 hours per capita (+4.3 hours/monthlyaverage) overall. For the reasons listed above, net sales per capita increased.
Ｑ３：Specifically, what types of industries are increasing both production andpersonnel?
Ａ３：An increasing number of manufacturers are increasing both production andpersonnel, mainly in the automobiles-related industry. In particular, humanresources needs for auto-body manufacturers recovered earlier than expected in
3Q due to the recovery in domestic and overseas demand. With regard to theelectronic devices industry, inventory adjustments have been settling down, andan increasing number of manufacturers have started to increase the productionof in-vehicle products. Human resources needs for the semiconductor-relatedindustry have also been steady. Furthermore, we are making efforts to increase
our market share mainly with Account Companies, and are planning to increase
the number of new personnel. We expect that human resources needs willcontinue to increase in the automobiles-related and electronic devices-relatedindustries hereafter.

Ｑ４：Please tell us about your future prospects.
Ａ４：Although there are concerns about the economic impact of the spread of
COVID-19, the recovery trend in the manufacturing-related industry is expected
to continue in the future. In addition, depending on the industry, needs are
expected to exceed those of the previous fiscal year, such as the creation of new
IT demand due to 5G and changes in work-styles, and the automobiles-related
and electronic devices-related industries are expected to remain steady from 4Q
onwards.
Ｑ５：Will Other Businesses become profitable this fiscal year?
Ａ５：The occupancy status of Building 6 (Sweetpea Higashi Totsuka) has beensteadily increasing, and as of the end of December 2020, the number ofresidents was 90 compared to the capacity of 94. As a result, operating loss has
been on an improving trend, with Other Businesses becoming profitable in 3Qalone. Going forward, it is expected that Other Businesses will continue togenerate profits by maintaining a stable number of residents and improving its
operational efficiency.

Ｑ６：What is the purpose of the capital and business alliance with CrossLink Co.,Ltd.?
Ａ６：By introducing a system (HR Cross) that can centrally manage operations
related to human resources developed and provided by CrossLink Co., Ltd.,
which is jointly funded by 8 companies (NISSO and 7 others in the sameindustry), we would like to improve the burdens of office work, such as
paperwork, that manufacturers utilizing human resources dispatching companies
have, and improve the efficiency of their operations. In addition, by developing
an evaluation system for human resources in accordance with the rules of "Equal
Pay for Equal Work", we aim to disseminate it as a standard system for
manufacturing-related human resources services that manufacturers can utilize
with a sense of security.