0・The current state of affairs will be explained before the explanation of the materials.
・The surrounding environment has changed somewhat since 1Q.
In 1Q, it was explained that demand for semiconductors and electronic components will increase with newtechnological innovations such as 5G. In fact, in July, although NISSO received orders due to increased
production from some electronic components manufacturers, and the production, as well as the number of
additional staff in the automobiles industry also increased, their was some stagnation in August and
September. This was due to the fact that while NISSO received orders from clients due to increased
production, there were other clients who experienced reduced production. As previously explained, about
half of NISSO's staff are in dormitories, and it is possible for them to transfer workplaces during times of
reduced production. However, for example, when conditions did not match, or when locally-oriented staff
did not get transferred, it resulted in increased turnover rates.
Currently, although the semiconductor and electronic components industries have bottomed out and fullscale recovery is yet to be attained, business performance has been compensated for by mainly theautomobiles industry.
・Although the hurdle to achieve the initial forecast of 3.9 billion yen in operating profit has become higher,
as always, we will continue our efforts towards achieving this goal.
Currently, we have received orders from clients in the automobiles-related industries, and although theelectronic components industry has bottomed out, there has been little recovery, and specific orders havebeen received from some clients.
As it can be seen, although the situation is on a recovery trend, it may change as a result of certain events
that may have an impact on our clients in the future. However, at present, we will not make any downward
revisions to our full-year forecasts, and will strive to achieve the targets that we have set at the beginningof the fiscal year.

1

・The following is the explanation of the Financial Results Summary for the First Six Months of FY 3/2020.

2

・The following is the explanation of NISSO's Non-consolidated Financial Results for FY 3/2020 2Q.
・Net sales amounted to 33,955 million yen (up 3,986 million yen or 13.3% year on year).
・Gross profit amounted to 5,887 million yen (up 659 million yen or 12.6% year on year).
・SG&A (selling, general and administrative) expenses amounted to 4,756 million yen (up 504 million yenor 11.9% year on year).
・Operating profit amounted to 1,131 million yen (up 154 million yen or 15.8% year on year).
・Ordinary profit amounted to 1,136 million yen (up 153 million yen or 15.6% year on year).
・Profit amounted to 777 million yen (up 147 million yen or 23.5% year on year).

3

・Shown above are graphs of NISSO's quarterly non-consolidated net sales and operating profit trends.
・Regarding 2Q non-consolidated operating profit
Up 14.8% year on year (from FY 3/2019 2Q; was up 17.3% year on year in 1Q non-consolidated)
Up 41.5% from last quarter (FY 3/2020 1Q).

4

・The following is the explanation of the Consolidated Financial Results for FY 3/2020 2Q.
・Net sales amounted to 36,797 million yen (up 4,014 million yen or 12.2% year on year).
・Gross profit amounted to 6,210 million yen (up 701 million yen or 12.7% year on year).
・SG&A expenses amounted to 5,082 million yen (up 488 million yen or 10.6% year on year).
・Operating profit amounted to 1,128 million yen (up 212 million yen or 23.2% year on year).
Non-consolidated operating profit increased 15.8% year on year, compared to an increase of 23.2% in
consolidated operating profit.
This was a result of the return to profitability of Other Businesses due to an increase in the number ofresidents at their nursing care facility.
・Ordinary profit amounted to 1,154 million yen (up 223 million yen or 24.0% year on year).
・Profit attributable to owners of parent amounted to 785 million yen (up 197 million yen or 33.5% year onyear).

5

・Shown above are graphs of quarterly consolidated net sales and operating profit trends.

6

・The graphs above show the progress in the first half of the fiscal year (1H) compared to annual results overthe past 3 years, including for the current fiscal year.
・Although it may be said that the ratio of (operating) profits reported in 1H of each year has decreased
against annual cumulative totals, manufacturers, specifically electronic components and semiconductor
manufacturers, especially in 1H of the current fiscal year, have not performed particularly well. In theautomobiles industry, although it may be said that the progress in earnings in 1H was weak, given the
recent trend of receiving orders in 2H starting in October, NISSO expects to achieve profits of 3.9 billion yen
for the full year.

7・The following is the explanation of trends in earning outlooks.
・The average number of working days expected in 2H is 117 days, compared to 110 days in 1H, which is anincrease of 6.3%.
・With regard to work conditions, since production levels of the semiconductor and electronic components
industries were not very high, overtime and holiday work in 1H amounted to less than in usual years.
However, the amount of overtime and holiday work going into 2H has gradually increased.
・NISSO has steadily received orders from automobiles-related industries.
・In addition, with the "Act on the Arrangement of Related Acts to Promote Work Style Reform (Acts Related
to Work Style Reform)", "Equal Pay for Equal Work" will be put into effect in April of next year, and although
it is difficult to determine what kind of influence it may have, we have taken the initiative to conduct
necessary unit-cost negotiations with our clients at this time.
・In this manner, NISSO expects to accomplish the plan with the increase in net sales per capita based on
the number of (additional) working days and the contents as described above.

8

・The following is the explanation of the Overview of Activities for FY 3/2020 2Q.

9

・The following is the explanation of NISSO's non-consolidated net sales by industry.
・The above is the net sales by industry compared to the corresponding period of the previous fiscal year
(FY 3/2019 2Q).
・Net sales in the automobiles industry has been steady since the corresponding period of the previous
fiscal year. Also, as previously explained, NISSO expects to continue to expand steadily, partly due tostrengthening trends in 2H.
・Net sales in the electronic devices industry decreased year on year. However, for reference, the year on
year comparison for FY 3/2020 1Q was -6.3%, and while the electronic devices industry bottomed out andpartly recovered, (the year on year comparison for) 2Q improved to -3.2%.

10

・The following is the explanation of NISSO's net sales per capita.
・Year on year, net sales per capita grew by 13 thousand yen in 2Q. (+12 thousand yen in 1Q) Under normal
circumstances, these figures would have to reflect more growth, but as previously mentioned, since
production was at low levels, mainly in the electronic components industry, the amount of overtime andholiday work declined, resulting in such figures.
・However, as mentioned earlier, NISSO is steadily starting to respond to the orders received fromautomobiles manufacturers, and since the automobiles industry, especially auto-body manufacturers, hasrelatively higher unit-costs, as NISSO receives more orders, net sales per capita will increase more in the
future.
・Furthermore, NISSO expects to be able to secure the usual overall net sales per capita growth with theforthcoming increases in overtime and holiday work hereafter.

11

・The following is the explanation of the trend of NISSO's enrolled staff.
・There was an increase of 597 staff at the end of September, compared to the end of FY 3/2019. Since
there was an increase of 592 staff at the end of July, there was hardly any growth in the months of Augustand September. This was mainly due to a combination of both an increase and decrease in staff enrollment
at electronic components manufacturers, and as a result, enrollment did not increase as expected, which also
affected turnover rates.
・Staff enrollment in the automobiles-related industries increased steadily.

12

・The following is the explanation of NISSO's skilled staff.
・Although skilled staff are mainly assigned to Account Companies, the number of skilled staff increased byonly 302 in 2Q due to the weakened circumstances of the electronic components Account Company.
・Most of the 302 skilled staff are employed at high unit-cost Account Companies, and NISSO believes that
this will have a positive effect hereafter.
・NISSO's target for the medium-term management plan, including this fiscal year, is to have 8,000 skilled
staff in 3 years, and we have been steadily progressing to fulfill this goal.

13

・The following is the explanation of the status of NISSO's Account Companies.
・The Account Company net sales composition ratio for FY 3/2020 2Q was 44.1%, which remained at thesame level as 1Q. This ratio was compensated for by the automobiles Account Company Group, while theelectronic components Account Company Group was under weakened circumstances. However, since orders
from the electronic components Account Company Group are beginning to come in, the share of AccountCompany (net sales) is expected to grow steadily toward 50%.

14

・The following is the explanation of NISSO's turnover rates.
・About half of the staff working at NISSO are in dormitories. In workplaces that are experiencing reductions,although some costs may be incurred, we proactively conduct workplace transfers for staff in order toprevent their resigning as much as possible. However, when wishes of the staff concerned are not met, it
results in their resigning, and because of such cases, the overall turnover rate increased to 4.6% from 4.4%
in 1Q.
・Although the turnover rate of skilled staff is also higher than before, NISSO believes that the current figures
are within an acceptable range.
・Since NISSO has set a target of achieving an overall turnover rate of less than 4% for FY 3/2022, we willcontinue to implement necessary measures to achieve this goal.

15

・The following is the explanation of NISSO's educational achievements.
・The educational achievement figures have remained on a similar trend as the previous year.
・Many clients in the electronic devices-related industry have wanted NISSO to assign equipment
maintenance personnel in advance to ensure that equipment runs smoothly before they start mass
production in their newly established factories. If we are able to fulfill such requests, when mass production
begins, it will be possible for NISSO to receive orders for such operators advantageously, so we are
currently training such personnel at full speed.
・The training pictured in the photo above is for production equipment design. Although NISSO doesn't havethe capacity to train a large number of people just yet, since the needs in this sector are very high, we willcontinue to make efforts to expand in this capacity to address such needs.
・NISSO is in the process of reviewing the curriculum in its entirety in order to be able to further improve thetreatment for our staff and employees, and to improve our profitability going forward. In addition, we arealso reviewing the educational curriculum in order to further reduce turnover rates, and to further enhancethe value of our business models.

16

・The following is the explanation of Other Businesses.
・The occupancy status of Building 6 was 48 residents out of a possible capacity of 94 residents.
Buildings 1 through 5 were almost at full occupancy, including changes, or turnover of several residents.
・NISSO is aiming to achieve full-year profitability by promoting the increase in residents at our nursing carefacilities.

17

・The following is the summary of the contents explained thus far.
・Net sales annual progress rate: 46.0%, operating profit annual progress rate: 28.9%
・Going forward in 2H, with the following:＊There will be a 6.3% increase in the number of working days compared to 1H,(1H: 110 days, 2H: 117 days)＊NISSO has received a large amount of orders centering on auto-body manufacturers in the automobiles
industry,＊The semiconductor and electronic components industries have bottomed out, and are on the way torecovery,＊Overtime hours and holiday work are gradually increasing,＊Expected increases in unit-costs with the enforcement of Equal Pay for Equal Work of the Acts Related toWork Style Reform,
NISSO plans to achieve 80 billion yen in net sales, and 3.9 billion yen in operating profit.

18

・The following is the explanation of Future Prospects.

19

・NISSO has steadily received orders from automobiles manufacturers, particularly from auto-body production
factories within the Account Company Group. As just described, although we have received a large amountof orders from auto-body manufacturers, and battery manufacturers, we expect to receive more orders fromthem in the future.
・Although the semiconductor and electronic components industries have bottomed out, it is difficult to see
how much of this underlying trend will return in the future. However, NISSO has the advantage of being
able to hire equipment maintenance personnel, in addition to training and assigning such personnel who
have been appointed to relevant worksites. Moreover, since we have already received orders for equipment
maintenance personnel in advance, we also expect to receive even more orders for operators when mass
production begins.
・With the expected enforcement of Equal Pay for Equal Work of the Acts Related to Work Style Reform, theskills required by workers are getting more advanced. Therefore, there are challenges in order to raise thedegree of accuracy for recruitment-related (job) matching, including for training and development capabilities.
However, since such responses cannot be coped with by all of the competitors within our industry, bysteadfastly increasing such capabilities, NISSO will be able to increase our market share.
・NISSO's medium- to long-term growth strategy is to become a company that is able to confront the structuralchanges of our clients. For example, although it is a risk for manufacturers to respond to processes with large
production fluctuations with directly-hired employees, NISSO has received this challenge as a theme from our
Account Companies, and is making various preparations to be able to cater to their needs. Although it isbelieved that many manufacturers have such thoughts, the key points considered by clients when choosing acompany is whether or not the company is able to assign personnel with the necessary skills, and whether or
not the company has a structure to be able to manage such personnel responsibly.
We at NISSO will address these issues appropriately, and will continue to strive for the stable growth of ourcompany.

20

・The is the explanation of NISSO's response to the expected spread of 5G.
・Although the business performance of some Account Companies within the electronic components andelectrical machinery Account Company Groups have been somewhat stagnant, there has been somerecovery and incoming orders have progressively increased.
・In line with our strategies, NISSO will proactively assign equipment maintenance personnel and promote
the expansion of sectors that are expected to grow in the future, for both Account and non-AccountCompanies.

21

・The following is the explanation of NISSO’s joint venture company, "Nikon Nisso Prime Corporation", with
Nikon Corporation.
・The overview of the new company is as shown in the table above.
・NISSO and Nikon would like to create a new stage for people who have cultivated their experiences at
Nikon to flourish.

22

・18 new graduate Chinese engineers joined NISSO.
・As a case example of ESG, the activities of Nisso Pure, a special-purpose subsidiary of NISSO Corporation will
be explained below.
Since Nisso Pure is a subsidiary of NISSO CORPORATION, a human resources company, it is not only
engaged in providing opportunities for people with disabilities to work, but it also strives to enable them to
set their own goals and improve their skills. Among such efforts, several employees of Nisso Pure participatedin the Abilympics competition held in Kanagawa Prefecture.

23

・The following is the explanation of the Earnings Forecast for FY 3/2020.

24

・The following is the explanation of the Earnings Forecast for FY 3/2020.
・There are no revisions to the Earnings Forecast for FY 3/2020.

25

・The following is the explanation of Shareholder Returns.

26

・There are no changes to the Shareholder Return Policy.

27

・The following are Supplementary Materials.

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