First Quarterof FY 3/2022

Financial Results
Briefing Materials
Nurturing andBringing Out theBest in People

Scheduled for August 16, 2021

NISSO CORPORATIONTSE 1 Code: 6569

0

Summary
FY 3/2022 1Q Results● Increased revenue and profits year-on-year(※Increased revenue and profits vs. FY 3/2020)● Strong demand for automobiles and electronic devices● Some recovery not attained due to lack of semiconductors in
automobiles-related industry● Needs for engineers are strong
Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

1・Please find the summary above.
・Demand for automobiles and electronic components were strong, and revenue and profits have increased
accordingly.
・Due to the shortage of semiconductors, some automobiles manufacturers have not been able to produce
enough to meet original demands, and as a result, some manufacturers will start increasing production after 3Q.
・Due to the shortage of semiconductors, there has also been a slight impact on passive components.
・The needs for engineers are favorable.

1

CONTENTS

1

FY 3/2022 1Q

Financial Results Summary2

FY 3/2022 1Q

Overview of Activities

3

Financial Results by Target Segment

4

Future Prospects (FY 3/2022）

5

Shareholder Return Policy

6

Supplementary Materials

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

2

2

１

FY 3/2022 1Q

Financial Results Summary

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved33

FY 3/2022 1Q Consolidated Financial Results Highlights（Unit: Million yen）

PointsFY 3/2021 1Q• Revenue and profits increased due to anincrease in enrollment and increases inoperations (number of working days,
overtime hours, holiday work, etc.).
• Net sales and ordinary profit in 1Q were
the highest since NISSO's listing.
• Revenue and profits also increased in
Other Businesses.

Results% of Total

FY 3/2022 1Q
Results% of Total

Year-on-Year
Increase(Decrease)% Change

16,557100.0%

18,045100.0%

1,487

9.0%

Gross profit

2,360

14.3%

3,038

16.8%

677

28.7%

SG&A
expenses

2,154

13.0%

2,568

14.2%

413

19.2%

Operatingprofit

206

1.2%

470

2.6%

263

127.9%

Ordinary
profit

238

1.4%

524

2.9%

285

119.4%

Profitattributableto owners ofparent

101

0.6%

345

1.9%

243

239.7%Net sales

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

4・The following is the explanation of the Consolidated Financial Results for FY 3/2022 1Q.
・Net sales amounted to 18,045 million yen (up 1,487 million yen or 9.0% YoY)
・Gross profit amounted to 3,038 million yen (up 677 million yen or 28.7% YoY)
・SG&A (selling, general and administrative) expenses amounted to 2,568 million yen (up 413 million yen or
19.2% YoY)
・Operating profit amounted to 470 million yen (up 263 million yen or 127.9% YoY)
・Ordinary profit amounted to 524 million yen (up 285 million yen or 119.4% YoY)
・Profit attributable to owners of parent amounted to 345 million yen (up 243 million yen or 239.7% YoY)
・Net sales and ordinary profit were at their highest in 1Q since NISSO's listing.
・The number of enrolled staff increased from 13,146 at the end of the previous fiscal year to 13,856 at the endof 1Q, which was an increase of 710 staff, and this is reflected in our business results.
・Other Businesses (nursing care business) became profitable with an increase in both revenue and profits in 1Q.
However, due to the effects of COVID-19, it has become somewhat difficult to conduct facility preview events.

4

FY 3/2022 Quarterly Consolidated Financial Results（Unit: Million yen）

（Unit: Million yen）

Net sales
20,00018,814 18,920

Operating profit

19,2481400

18,045

17,983
17,4701,165
1200

17,771

947

1000

16,557 16,414

920

767

800

650

15,000
600

525

477

470

400

206

200

0

10,000

１Q

２Q

３Q【FY 3/20】

４Q

1Q

2Q

3Q

【FY 3/21】

4Q

１Q【FY 3/22】

１Q

２Q

３Q

４Q

1Q

【FY 3/20】

2Q

3Q【FY 3/21】

4Q

1Q【FY 3/22】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

5・Shown above are graphs of quarterly consolidated net sales and operating profit trends.
・Although net sales in 1Q were at its highest since NISSO's listing, operating profit did not quite reach the levelof FY 3/2020 1Q.

5

FY 3/2022 1Q Non-consolidated Financial Results Highlights（Unit: Million yen）

Net sales

FY 3/2021 1Q

FY 3/2022 1Q• Net sales increased by 10.1%, partly due
to the recovery in enrollment.

Results

Results% of Total% of Total

Year-on-Year
Increase(Decrease)% Change

15,153100.0%

16,684100.0%

1,531

10.1%

Gross profit

2,232

14.7%

2,900

17.4%

667

29.9%

Expenses・Profits

SG&A
expenses

2,028

13.4%

2,417

14.5%

389

19.2%

• Both operating profit and ordinary profit
were also the highest since NISSO'slisting.

Operatingprofit

204

1.4%

482

2.9%

278

135.7%• SG&A expenses increased due to therecovery of human resources needs.

Ordinary
profit

219

1.4%

496

3.0%

277

126.5%

96

0.6%

319

1.9%

222

229.7%Net sales• Net sales in 1Q were the highest since
NISSO's listing.

ProfitCopyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

6

・The following is the explanation of NISSO’s Non-consolidated Financial Results for FY 3/2022 1Q.
・Net sales amounted to 16,684 million yen (up 1,513 million yen or 10.1% YoY)
・Gross profit amounted to 2,900 million yen (up 667 million yen or 29.9% YoY)
・SG&A expenses amounted to 2,417 million yen (up 389 million yen or 19.2% YoY)
・Operating profit amounted to 482 million yen (up 278 million yen or 135.7% YoY)
・Ordinary profit amounted to 496 million yen (up 277 million yen or 126.5% YoY)
・Profit amounted to 319 million yen (up 222 million yen or 229.7% year on YoY)
・Net sales, operating profit, and ordinary profit in 1Q were at their highest since NISSO's listing.
・However, SG&A expenses increased YoY, and the major factor contributing to this was recruitment costs.
・In the corresponding period of the previous fiscal year, since there were only a few back orders, recruitment
costs were 62 million yen. However, in 1Q of the current fiscal year, recruitment costs amounted to 290 million
yen, an increase of 228 million yen YoY. As a result, although operating profit was at its highest since NISSO’slisting, SG&A expenses also increased.

6

FY 3/2022 1Q Quarterly Non-consolidated Financial Results（Unit: Million yen）

（Unit: Million yen）

Operating profit

Net sales
18,00017,3891400

17,478 17,775
16,684

16,566
16,036

16,357

16,00015,153

1,204
1200

958

1000

15,002

903

783
800

663
14,000

555

600

482

468
400
12,000204200

010,000

１Q

２Q

３Q【FY 3/20】

４Q

1Q

2Q

3Q

【FY 3/21】

4Q

1Q【FY 3/22】

１Q

２Q

３Q

【FY 3/20】

４Q

1Q

2Q

3Q

【FY 3/21】

4Q

1Q【FY 3/22】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

7

・Shown above are graphs of NISSO's quarterly non-consolidated net sales and operating profit trends.
・Compared to net sales of 16,566 million yen in 1Q of FY 3/2020, net sales in 1Q of the current fiscal year were
16,684 million yen, which were at its highest since NISSO's listing. Compared to the number of enrolled staff at
FY 3/2020 1Q-end, which was 14,282, the number of enrolled staff at FY 3/2022 1Q-end was 13,856, which
was a decrease of 426 staff, or -3%. On the other hand, a simple calculation of net sales per capita shows thatnet sales per capita in FY 3/2020 1Q were 1.16 million yen, while net sales per capita in FY 3/2022 1Q were
1.204 million yen, which reflects an increase of 3.8%.
Although the number of enrolled staff in 1Q did not reach the highest number since NISSO's listing as it did in
FY 3/2020, net sales increased, which were due to an increase in unit-costs.

7

2

FY 3/2022 1Q

Overview of Activities

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

88

FY 3/2022 1Q Financial Results Summary
Consolidated Financial Results

Net Sales
18,045 Million yen (+1,487 Million yen／+9.0% YoY)
Operating Profit
470 Million yen (+263 Million yen／+127.9% YoY)
● Net Sales by Industry (YoY)
Automobiles… ＋20.8％

Electronic devices… ＋9.4%● 1Q-end Number of Enrolled Staff
13,856 staff(+710 staff from FY 3/21-end)● Net Sales per Capita/Monthly
409 Thousand yen

・In the automobiles-related industry, net sales increased by 20.8% YoY. Although demand
was strong, some auto-body manufacturers, including suppliers, were affected by theshortage of semiconductors.
・In the electronic devices-related industry, net sales increased by 9.4% YoY. In addition tostrong demand for semiconductors, demand for electronic components also recovered.

・The number of enrolled staff increased by 710 compared to FY 3/21-end due to strong
client needs for the utilization of external human resources, and the recovery trend
continued.

・Operations (number of working days, overtime hours, holiday work, etc.) increased YoY,
and net sales per capita increased by 51 thousand yen YoY.

(+51 Thousand yen YoY)
Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

9・Shown above is the Financial Results Summary for FY 3/2022 1Q.
・Details will be explained in the following pages.

9

FY 3/2022 1Q Net Sales by Industry (NISSO, Non-consolidated)（Unit: Million yen）

Net Sales Composition Ratios
Other

Precision・Elec Machinery(2.9％)
2,383（15.7％）

2,113

Elec. Devices

Automobiles

Net sales decreased by 3.1% YoY, partly due to a decline
in office demand as a result of the establishment of
remote work. However, compared to FY 3/21 4Q, net
sales increased and the recovery trend continued.

2,315（13.9％）

2,047(3.1％)（12.3％）＋9.4％（30.7％）（13.9％）

4,680【Precision・Electrical Machinery】

5,119【Electronic Devices】
Net sales increased by 9.4% YoY. In addition to thesteady demand for semiconductors, IT demand was alsostrong. In addition, due to the recovery in demand forelectronic components, net sales in 1Q reached a record
high since NISSO's listing.

（30.9％）【Automobiles】
5,974（39.4％）

FY 3/21 1Q＋20.8％

7,216（43.2％）

FY 3/22 1Q

Net sales increased by 20.8% YoY. Demand for someauto-body manufacturers was strong. However, sincesome auto-body manufacturers were affected by theshortage of semiconductors, overall recovery has notbeen achieved.

※（ ）= % of Total net sales, Red = % of Year-on-Year growth

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

10

・The following is the explanation of NISSO's non-consolidated net sales by industry.
・The graph above shows the net sales composition ratio by industry.
It is classified into 4 industry categories: automobiles-related, electronic devices, precision・electrical machinery,and others.
・With regards to the automobiles industry, net sales increased by 20.8% YoY. Although net sales in the previous
fiscal year decreased significantly due to the effects of COVID-19, they were steady in the current fiscal year,
mainly at some auto-body manufacturers. However, due to the shortage of semiconductors, they have not yet
recovered to the levels before COVID-19.
・With regards to the electronic devices industry, net sales increased by 9.4% YoY. Net sales in 1Q were at its
highest since NISSO's listing. Although the corporate group for multilayer capacitors has not yet recovered toprevious levels, semiconductor and semiconductor equipment manufacturers remained active, which led to sucha result.

10

FY 3/2022 Quarterly Net Sales by Industry (NISSO, Non-consolidated)

Automobiles

2,631（15.9％）

2,371（14.3％）

4,057（24.5％）

Elec. Devices

2,680

Precision・Elec Machinery

2,774（15.4％）（15.9％）

2,317

2,190

（13.3％）

4,633（26.6％）（12.5％）

4,487（25.7％）（Unit: Million yen）

Other

2,563

（14.4％）

2,182（12.3％）

4,650

2,383

（15.7％）

2,113（13.9％）

7,757（45.3％）（44.6％）

１Q

2Q

8,026

（45.9％）【FY 3/20】※（

4Q（12.1％）

1,895（12.1％）

1,973

2,047

（12.3％）

4,537

4,774

（29.2％）

5,119

4,680

（29.4％）

4,413

5,974

6,443

（45.3％）（45.4％）（43.2％）

2Q

3Q

4Q

1Q

（39.4％）

3Q

1,942（14.3％）

2,315（13.9％）（28.3％）

8,378（47.1％）（13.4％）（12.6％）（26.2％）（30.9％）

7,505

2,249

（15.0％）

2,190

2,287

1Q

（43.0％）

7,268【FY 3/21】

7,418（30.7％）

7,216【FY 3/22】）= % of Total net sales

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

11・Shown above are the trends of NISSO's quarterly net sales by industry.
・With regards to the automobiles industry, although net sales in FY 3/2022 1Q approached record highs, they
were approximately 300 million yen short of net sales in FY 3/2020 1Q, which were the highest since NISSO’slisting.
・With regards to the electronic devices industry, net sales were at its highest since NISSO's listing on a quarterly
basis.

11

Net Sales per Capita（NISSO, Non-consolidated）●FY 3/2022 1Q YTD＜Overall net sales per capita＞

409 Thousand yen (+51 Thousand yen YoY)

＜Skilled staff net sales per capita＞

464 Thousand yen (+45 Thousand yen YoY)

●Overall net sales per capita increased YoY. Net sales per capita in 1Q were the highest since NISSO's listing.
Although net sales per capita of skilled staff also increased YoY, since some manufacturers were affected by the shortage ofsemiconductors, they have not returned to pre-COVID-19 levels.
（Unit: Thousand yen）

（Unit: Thousand yen）

Net Sales per Capita

Net Sales per Capita(Monthly Average Conversion)(Quarterly)

Skilled staff
500

400

419

Overall 464

485

500

409

358

400

300

300

200

200

100

100

0

391

482

485

478
397

396

490
419

403
358

451
390

421

483
418

Skilled staff
Overall

464
409

0

FY 3/21 1Q

FY 3/22 1Q

１Q

2Q

3Q

4Q

【FY 3/20】

1Q

2Q

3Q

【FY 3/21】

4Q

1Q【FY 3/22】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

12

・The following is the explanation of NISSO's net sales per capita.
・In the corresponding period of the previous fiscal year, due to the effects of COVID-19, overall net sales per
capita were 358 thousand yen, and skilled staff net sales per capita were slightly abnormal at 419 thousand yen.
However, overall net sales per capita in 1Q of the current fiscal year remained at a high level of 409 thousand
yen.
・With regards to skilled staff, the hours of operation of skilled staff for the automobiles industry have notreached original, or rightful levels, nor have they reached previous levels of net sales per capita.
・However, unit-costs for incoming orders increased from 30 yen to 50 yen compared to the corresponding periodof the previous fiscal year, although there were monthly variations.
・With regards to extra-time hours, although they did not reach the level of 4Q in the previous fiscal year, theyremained around 22 hours (monthly average per capita) in 1Q, which was one of the factors that contributed tothe increase in net sales per capita.

12

Number of Enrolled Staff (NISSO, Non-consolidated)（Unit: # of Staff）

Compared w. Previous FY-end

Number of Enrolled Staff at Quarter-end+710 staff (+5.4%)

Point①

15,000The number of new hires increased YoY.
In addition, turnover rates also improved dueto the curbing of enrolled staff leaving NISSO,
and the number of enrolled staff increased.

14,282

14,63914,638

14,77013,85613,146

13,24313,00012,524

12,692

2Q

3Q

11,000

Point②9,000

Human resources needs for the automobilesand electronic devices industries were strong.
Human resources needs also recovered in
the precision・electrical machinery industry
and other industries.

7,000

5,000

1Q

2Q

3Q

4Q

【FY 3/20】

1Q【FY 3/21】

4Q

1Q【FY 3/22】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

13

・The following is the explanation of NISSO's quarter-end enrollment on a quarterly basis.
・From the end of the previous fiscal year to the end of June, the number of enrolled staff increased by 710, or
5.4%. Although this was partly due to an increase in the number of new hires, the significant reduction in
turnover rates in 1Q had a positive effect.
・By industry, enrollment in the automobiles and electronic devices industries increased, and these 2 industries
drove business performance.

13

Number of Skilled Staff・Engineers (NISSO, Non-consolidated)
Number of Skilled Staff・Engineers

Point①
From this FY, skilled staff and engineers will
be shown separately.
The total number of skilled staff andengineers increased steadily (+420 fromthe end of the previous FY).

6,000

4,803

5,000

5,085

5,250

5,387

5,293 5,381（Unit: # of SS・Engineers）

5,436

5,856
Engineers
861

4,501

Point②
In addition to steady performance in thesemiconductor industry, their numbers
increased mainly in Account Companies
and in-vehicle product manufacturers.

4,000

3,000

Skilled staff
4,995
2,000

Point③
1,000

The ratio of skilled staff and engineers to
NISSO's total enrolled staff was 42.3% (FY
3/2021 4Q: 41.4%).

0

1Q

2Q

3Q

4Q

【FY 3/20】

1Q

2Q

3Q

【FY 3/21】

4Q

1Q【FY 3/22】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

14

・The following is the explanation of NISSO's skilled staff.
・Compared to 5,436 skilled staff at the end of the previous fiscal year, the number of skilled staff increased by
420 to 5,856 at the end of 1Q.
・As stated in our Medium-term Management Plan, from this fiscal year, manufacturing-related skilled staff andengineers will be shown separately.
・The ratio of skilled staff and engineers to NISSO's total enrolled staff increased by 0.9% to 42.3% compared to
4Q of the previous fiscal year.
・With regards to fields in which skilled staff are increasing, they are increasing in the automobiles-relatedindustry and at equipment manufacturers.

14

Account Companies (NISSO, Non-consolidated)
Point①

Account Company Groups Net Sales

・Net sales of Account Company Groups
increased 9.0% YoY.
・In particular, net sales of the automobilesrelated Account Company Group increased.

（Unit: Million yen）
12,000Composition ratio (right axis)

47.7

48.0

50.0

47.1

47.6

47.2

45.9
10,000

Point②(Unit: %)Net sales (left axis)

8,000

44.1
7,300

44.2

43.3

7,677 7,565

45.0

8,152
7,225 7,201

7,551

7,780

7,874
40.0

Due to the increase in overall net sales,
although the composition ratio decreased YoY,
net sales in 1Q were the highest since
NISSO's listing.

6,000

35.0
4,000

30.0

2,000

0

１Q

2Q

3Q

4Q

【FY 3/20】

1Q

2Q

3Q

【FY 3/21】

4Q

1Q

25.0

【FY 3/22】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

15

・The following is the explanation of NISSO's Account Companies.
・Although the overall composition ratio appears to be falling, this was due to an increase in overall net sales.
・With regards to the automobiles manufacturer group, although net sales in 1Q of 4,283 million yen approachedrecord highs, net sales of 4,395 million yen (FY 3/2021 4Q) were the highest since NISSO's listing. On amonthly basis, net sales have exceeded the highest levels since NISSO's listing.
・The net sales composition ratio of the Account Company in this group was 54.4%.
・With regards to the major multilayer capacitor group, due to the insufficient supply of semiconductors, althoughproduction systems were in place, full-scale recovery has not yet occurred. However, with the recovery ofsemiconductors, production of capacitors and passive components have been gradually increasing.
・The net sales composition ratio of this group was 25%.
・With regards to the major electronics group, although its scale is still small, it is expected to expand since it has
consistently responded to increased production.
・The net sales composition ratio of the account was 12.1%.
・With regards to the group that manufactures multifunction devices, although it has recovered little by little,
since demand is mainly in offices, it has not yet reached full-scale recovery.

15

Turnover Rates (NISSO, Non-consolidated)(Unit: %)FY 3/2022 1Q Results

Trend of Turnover Rates

Overall turnover rate

3.5％

6

(Improvement of 0.7 pts vs. FY 3/2021)

5.5

6

4.9

4.6

4.7

Skilled staff・Engineers turnover rate

5

(Improvement of 0.8 pts vs. FY 3/2021)

4

4

3

3

1.2％

2

1.7

Point

4.2

2.0

5

3.5

2.0

1.5

1

Decreases in turnover rates contributed to theincrease in enrollment.

Overall (Fixed term staff・Skilled staff・Engineers)
Skilled staff・Engineers

2

1.2

1

0

0
FY 3/17 FY 3/18 FY 3/19 FY 3/20 FY 3/21

1Q

2Q

3Q

4Q

【FY 3/22】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

16

・The following is the explanation of NISSO's turnover rates.
・Although the overall turnover rate was 4.2% in the previous quarter, it was 3.5% in 1Q, resulting in asignificant decrease.
・Even for skilled staff, the turnover rate has been reduced to 1.2%.
・Decreases in turnover rates have contributed to the increase in enrollment, and cost efficiency has also
increased.

16

Educational Achievements（NISSO, Non-consolidated）● FY 3/2022 1Q Main course-specific educational achievements

Point①(total # of participants)

The number of participants increased as thenumber of skilled staff and engineers
increased.

(Unit: # of participants)

Training course name

Point②
・NISSO specializes in basic equipment
maintenance education that focuses on
quality.
・In the future, NISSO will engage in efficienttraining practices by simultaneously
conducting online and real training.

1Ｑ(Apr - Jun)

FY 3/21 1Q

Skilled staff education

448 Standard skilled staff education

259

Basic equipment
maintenance education

28

Basic equipment maintenance education

69

39

Manufacturing equipment maintenance・
manufacturing equipment technology
Mechanical design・production technology
SEAJ education (safety education
specializing in semiconductors)

9

1,331

MONOZUKURI (manufacturing) education,
pre-assignment training for
manufacturing staff, mobile education

796

Engineer education

Point③Highly specialized education is provided in
the engineer education course.

Contents

Manufacturing
education

Total

1,846

1,133

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

17

・The following is the explanation of NISSO's educational achievements.
・With regards to basic equipment maintenance education, although it seems that the number of participants has
decreased compared to the corresponding period of the previous fiscal year, NISSO has been increasing thenumber of equipment maintenance personnel as equipment engineers.
In contrast to basic education, the contents of engineer education has been enhanced to include equipment
maintenance education and manufacturing equipment technology.
・In addition, we are reviewing the curriculum for basic education on equipment maintenance, and are making
efforts to enhance the skills of our staff at worksites by improving their proficiency levels.
・Even during the COVID-19 pandemic, we will continue to advance our online training that does not requireparticipants to gather, as well as e-learning which we are currently preparing. For the next step, we areplanning training using VR.

17

3

Financial Results by Target Segment(FY 3/2022 1Q)

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

18

・The following is the explanation of the financial results by target segment.

18

Net Sales・Operating Profit Ratio by Company
FY 3/2022 1Q
Net Sales by Company
20,000(Unit: Million yen)

16,684NISSO

16,000550

Nisso Brain

Nisso Pure

Nisso Nifty(Unit: Million yen)

482

450

NISSO

Nisso Brain

Nisso Pure

Nisso Nifty

350

12,0008,000

FY 3/2022 1Q
Operating Profit by Company

250

92.0%

96.4%

150
4,000

617
0

18

50

3.4%

3.6%

742

92
0.5%

4.1%

▲
- 50

-0

-29

90% or more of net sales and operating profit are composed of
NISSO’s non-consolidated business results
Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

19

・The following is the explanation of the net sales・operating profit ratio by company.
・Shown above are graphs classified by company.
・NISSO's net sales accounted for 92% of the total.

19

Existing Areas(Unit: # of Staff)(Unit: Million yen)

Existing Net Sales

Existing Net Sales

・Net sales excluding Other Businesses (nursing
care・welfare) and Engineering Business fromconsolidated net sales.
・Since existing areas have been classified into
1 of 3 business categories from this FY, thefigure for net sales in existing areas (existing
net sales) for FY 3/21 is provided for reference.

Number of Existing Enrolled Staff at
Quarter-end

80,00070,000(Reference※Consolidated)
14,00061,629(Reference)

13,621

13,22860,00050,00012,00040,000Existing Enrolled Staff

30,000・The number of existing enrolled staff is thenumber of enrolled manufacturing staff(excluding engineers) and administrative
dispatched staff.
・Similar to the above, the FY 3/21 figure isprovided for reference.

16,061

20,00010,00010,00008,000

FY 3/21FY 3/22 1Q

FY 3/21 4Q

FY 3/22 1Q

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

20

・The following is the explanation of the existing areas.
・These are graphs of the existing areas shown in our Medium-term Management Plan.
・The combined number of manufacturing staff and administrative staff make up the number of existing
enrolled staff.
In addition, these net sales figures are shown in the graph above.
・The progress rate of existing net sales was 23.5% in 1Q, reflecting steady growth.
・In comparison with the reference value (same category), the number of enrolled staff increased by 393.

20

Acquisition of Shares of Vector Shinwa Co., Ltd. (Subsidiary Acquisition)【Company Overview】

Toward the Expansion of Existing Areas
As a first step in our growth strategy to expand
existing areas, NISSO has decided to acquire all
shares of Vector Shinwa Co., Ltd. (subsidiaryacquisition). By combining our resources, wewill be able to strengthen our service supply
system and expand our business, meeting not
only the needs of both companies, but also awider range of client needs.

(1) Company name

Vector Shinwa Co., Ltd.

(2) Location

3-1 Ikehata, Chiryu City, Aichi(3) Representative

President & Representative Director Masao Kanemoto(4) Business description

General Human Resources Services Business(5) Capital

78.25 Million JPY(6) Date of establishment

June 24, 2004

About Vector Shinwa Co., Ltd.
・The main pillar of Vector Shinwa's businessis contracting operations in the manufacturingindustry, such as for semiconductors andprecision equipment.
・Their business includes a wide range of
operations such as designing, developing andmanufacturing jigs and various production
equipment, dispatching human resources, andrecruitment.

(7) Relationship between
listed company andcompany concerned

Capital ties

Not applicable.

Personal relations

Not applicable.

Business relations

Not applicable.

Applicable status
to related parties

Not applicable.

※For more information, please refer to "Notice of Acquisition of Shares of Vector Shinwa Co., Ltd. (Subsidiary Acquisition)" announced on August 10, 2021.
Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

21

・The following is the explanation of NISSO's acquisition of shares of Vector Shinwa Co., Ltd. (subsidiaryacquisition).
・Although their scales is not so large, Vector Shinwa is deeply involved with the manufacturers of semiconductor
equipment and semiconductor measuring devices, and is a company that possesses technology and skills.
・In the future, we would like to delve deeper into this field, and by making it a subsidiary, we hope to be able to
make it an opportunity to strengthen relations with certain semiconductor equipment and semiconductor
measurement manufacturers.

21

Engineering Area (Financial Results)
Net sales(Unit: Million yen)

Engineer Net Sales
・Net sales in 1Q remained steady against
the target for this FY.
・Since the engineering area has beenclassified into 1 of 3 business categories
from this FY, the figure for net sales in theengineering area (engineer net sales) for
FY 3/21 is provided for reference.

(Unit: Thousand yen)

Engineer Net Sales per Capita

6,000

600

(Reference)
4,000(Reference)

515

523

FY 3/21FY 3/22 1Q

500

3,611
400

Net sales per capita

300

・The net sales per capita of engineers arehigh at 523 thousand yen/month, comparedto that of overall (409 thousand yen/month)and skilled staff (464 thousand yen/month).
・Similar to the above, the FY 3/21 figure isprovided for reference.

2,000

1,242

200

100

0

FY 3/21FY 3/22 1Q

0

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

22

・The following is the explanation of the engineering area.
・The engineering area has been classified into 1 of 3 business categories from this fiscal year. For reference,engineer net sales in the previous fiscal year amounted to 3,611 million yen, and sales in 1Q of the current
fiscal year amounted to 1,242 million yen, reflecting a steady progress rate of 30.3% against the full-year target.
・Net sales per capita increased from 515 thousand yen in the previous fiscal year to 523 thousand yen in 1Q ofthe current fiscal year, which was faster than originally planned.

22

Engineering Area: Number of Enrolled Engineers(Unit: %)(Unit: # of Engineers)

Number of Enrolled Engineers at
Quarter-end

Enrolled Engineers at Quarter-end
・From this FY, human resources who are engaged
in engineering work will be classified.
・As previously mentioned, since the engineering
area has been classified into 1 of 3 businesscategories from this FY, the figure for thenumber of enrolled engineers for FY 3/21 isprovided for reference.

1000

861

Composition Ratio of
Engineer Enrollment by Industry
Equipment
DesignProduction
Other
technology
technology
technology※Other: Development, mechanical design, analysis, etc.

800

4.6%

14.2%

(Reference)

4.4%

608
600

Engineer Industry Classification

400

76.8%
・Among engineer enrollment by industry, thelargest number of engineers are engaged inequipment technology, with the main focus onequipment maintenance operations.

2000

FY 3/21 4Q

FY 3/22 1Q

FY 3/22 1Q

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

23

・The following is the explanation of the number of enrolled engineers in the engineering area.
・Regarding the engineering area, since NISSO is a newcomer, we must have distinctive features and strengths
compared to other companies, so we are putting the utmost effort into equipment technology.
As shown in the graph above, equipment technology accounted for 76.8%, and production technology for
14.2%.
・Since this field has a high affinity with manufacturing, and NISSO has a large number of human resources whoform the basis for the development of human resources in this field, we plan to develop and expand thesehuman resources into engineers.

23Topics: Engineering Area
Recruitment ofexperienced personnel

Expansion of Recruitment Channels
・A recruitment site, "engineer works", specializing inengineers is scheduled to be launched (in August).

New graduate
recruitment

Clarification and Expansion of
Job Vacancies

Global Engineers

・Expansion to a total of 20 occupations, including
10 MONOZUKURI (manufacturing)-related and
10 IT-related occupations.

AI・IT Engineers
・Started the training of AI engineers in collaboration
with Cross Compass.
・Started contracted work for infrastructure designand construction by IT engineers.

（MONOZUKURI-related）
・Mechanical design・circuit design・
embedded control・CAE analysis
・CAD operation・production technology,
quality assurance
・Repair and maintenance・R&D
・Analysis, evaluation, testing・othertechnology-related（IT-related）
・PM, PMO・system engineers
・Programmers・servers, networks
・System operation maintenance・
testing, evaluation
・In-house SE, help desk・AI-related
・Web design・other IT-related

External Sales of Engineer Education
・Entrusted with education for business partner
employees, centered on maintenance education
Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

24

・The following is the explanation of the topics in the engineering area.
・In order to expand our recruitment channels, we will launch NISSO's own recruitment site called "engineer
works" in August.
・Engineers will be classified into 10 manufacturing-related and 10 IT-related occupations, and strategies will be
divided and launched.
・In the area of AI・IT, which we have not focused on until now, we started training AI engineers with Cross
Compass, with whom NISSO entered into a capital and business alliance with in September of last year.
・We aim to develop the necessary human resources while consulting with clients and equipment manufacturers
who are trying to implement AI so that it will be useful when AI is implemented in manufacturing equipment in
the future.
・In addition, we have been entrusted with and started the infrastructure design construction of a major
electronics manufacturer.

・In the future, we will continue to expand such activities and enter the AI・IT fields.
・With regards to equipment technology engineers, we will actively promote the training/development of client
employees (external sales of education) since clients also need such human resources.

24

Turnover Rates (Existing・Engineering Areas)(Unit: %)Trend of Turnover Rates

FY 3/2022 1Q Results

Existing (Fixed term staff・Skilled staff)
Engineers

Existing area (non-consolidated) turnover rate

3.7％

6

6

(Improvement of 0.6 pts vs. FY 3/2021 reference)
5

Engineering area (non-consolidated) turnover rate

1.4％

4.3

4

4

(Improvement of 1.3 pts vs. FY 3/2021 reference)
3

5

2.7

3

2

2

1

1

0

0

Points・The turnover rate of engineers is low at 1.4%.
・Since different areas have been classified into
3 business categories from this FY, the turnoverrates (for existing and engineering areas) for
FY 3/21 are provided for reference. (for above)【FY 3/21】

3.7

1.4

1Q

(Reference※Non-consolidated)

2Q

3Q

4Q

【FY 3/22】

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

25

・The following is the explanation of the turnover rates in the existing・engineering areas.
・The turnover rate for engineers decreased from 2.7% in the previous fiscal year to 1.4% in 1Q of the current
fiscal year.
・In addition, the turnover rate excluding engineers (from the overall turnover rate) is also shown above.
・Although the turnover rate of engineers was relatively low compared to the overall level, as an issue, there havebeen some cases where engineers who have started working found it difficult to keep up with the needs ofclients and resigned. In response to this, we aim to further reduce the turnover rate by expanding thecurriculum and strengthening our support system.

25

New Business Areas
HR Cross (Web-based Human Resources Dispatching Management System)
・Started the trial operation of a human resources dispatching management system (a system that can easily use complicated administrative
tasks such as ordering, contract management, evaluation of dispatched staff, attendance management, etc.) provided by CrossLink, apartnership company.
・Orders from NISSO's business partners have been decided.

System feature①

System feature②

System feature③*DX conversion(Paper material-free)

Easy and reliable
evidence・evaluation

Responding to the Dispatch Law,
which is periodically revised

・Forms, attendance, and invoices can be createdand managed in a form tailored to eachdispatching company

・Evidence such as evaluations, etc. can berecorded online, and the dispatch company will beable to confirm data at any time・CSV data such as attendance data, etc., can beconverted from an external system for HR Cross・A unified evaluation format with industry
standards that enables on-site and general affairs
personnel to input data more smoothly※Different formats can be selected and can also
be used for independent evaluation

・Historical information retrieval and output are
possible

Revisions of the Dispatch Law and various lawsthat are revised every few years can beappropriately updated as a benefit/advantage ofcloud services*DX = Digital transformation

AI・IT Engineers
・Started the training of AI engineers in collaboration with Cross Compass.
・Started contracted work for infrastructure design and construction by IT engineers.
Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

26

・The following is the explanation of the new business areas.
・Please find below the explanation of HR Cross in new businesses.
・From April 1, we have been conducting a trial operation of a system (HR Cross) for contract management,
employment management, and skill management for dispatching created by a company in which 8 companies inthe same industry have invested in.
Full-scale operation is targeted for October 1.
・For our clients, by going paperless, they will be free from the hassle of managing the contents of contracts, andwe will be able to help manage such people in the same way. For those who are working, we will be able toobtain unit-costs according to their skills from our clients, and reflect it in the treatment for the workers, making
it a system that is of benefit for all 3 parties.
・The features of the system are as described above.

・With regards to AI・IT engineers, it will be as explained earlier.
・The explanation of how e-learning will lead to new businesses, how we are trying to build a platform forrecruiting, and HR Tech, etc., will be disclosed when it becomes possible to over time.

26

Other Businesses Business Revenue
Points●Results of Other Businesses• Although the occupancy rate of nursing
care facilities Bldgs.1-5 decreased by 2.6
pts, the occupancy rate of Bldg. 6
increased by 2.1 pts.
• As a result of efficient management,
operating profit was 18 million yen.

（Unit: Million yen）

FY 3/21 1Q
Results% of Total

FY 3/22 1Q
Results

Year-on-Year% of Total

Increase(Decrease)

Net sales

720

100.0%

742

100.0%

22

3.1%

Expenses738

102.6%

723

97.5%

(14)

(2.0%)(18)(2.6％)

18

2.5%

36

－

Operatingprofit (loss)(Unit: # of residents)

Number of facility residents[Bldg.1-5] (capacity:308)
300
200% Change# of
入居者数
residents

Occupancy
入居率
rate[Bldg.6] (capacity:94)

298

298

292

96.8%

96.8%

94.8% 95.5%

294

286
92.9%

80

90%

60
40

100

75
79.8%

84

89.4%

90
95.7%

87
92.6%

89

94.7%

90%

20

40%

0

Jun'20-end Sep'20-end Dec'20-end Mar'21-end Jun'21-end

40%

0

Jun'20-end Sep'20-end Dec'20-end Mar'21-end Jun'21-end

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

27

・The following is the explanation of Other Businesses.
・With regards to nursing care facilities, although there was a slight impact of COVID-19 on facility previews, etc.,
profitability is steadily progressing.

27

Summary (Progress of Net Sales Target by Target Segment)(Unit: Million yen)
Full-year Target

Full-year Target

Full-year Target

Full-year Target

Full-year Target

76,00068,400

4,100

500

3,000

Progressrate

Progressrate

Progressrate

Progressrate

Progress
rate

23.7％

23.5％

18,045

16,061

Management Target Value

Existing Areas

30.3％

0％

24.7％

1,242

742

Engineering Area

Other Businesses

New Businesses(nursing care・welfare)

FY 3/22
Management Target Value(Consolidated)
Full-year
TargetNet sales

1Q
Results

76,000 18,045

FY 3/22
Existing Areas

Progress Full-year
rate
Target1Q
Results

23.7％ 68,400 16,061

FY 3/22
Engineering Area

Progress Full-year
rate
Target

23.5％

4,100

1Q
Results

1,242

FY 3/22
New Businesses

Progressrate

Full-year
Target

30.3％

500

1Q
Results

FY 3/22
Other Businesses

Progress Full-year
rate
Target

0

0％

3,000

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

1Q
Results

742

Progress
rate

24.7％

28

・The following is the explanation of the progress of net sales targets by target segment.
・The graphs above show how far each target segment has progressed toward the full-year targets.
・Overall, although the engineering area in particular has been performing steadily, since this area will be a major
engine for growth, we would like to expand it ahead of schedule.

28

4

Future Prospects (FY 3/2022）

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved29

29

FY 3/2022 Full-year Consolidated Forecasts
In the full-year consolidated forecast, NISSO expects increased revenue and profits. This forecast includes
investments for growth.
■FY 3/2022 Full-year Consolidated Forecast (April 1, 2021 ~ March 31, 2022)
FY 3/21 Results
Results
Net sales

FY 3/22 Forecast% of Total

Forecast(Unit: Million yen)

Year-on-Year% of Total

Increase(Decrease)% Change

68,213100.0％

76,000100.0％

7,786

11.4％

Operating profit

2,599

3.8％

3,000

3.9％

400

15.4％

Ordinary profit

2,949

4.3％

3,000

3.9％

50

1.7％

Profit attributableto owners ofparent

1,592

2.3％

2,000

2.6％

407

25.6％

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

30

・The following is the explanation of the Full-year Consolidated Forecasts.
・The consolidated forecast has not been revised because there are various factors such as what will happen
to the impact of COVID-19, the status of semiconductor procurement, and the status of parts procurement
occurring in Asia.
If we determine that a revision is necessary in the future, it will be promptly disclosed.
・Although it is not mentioned here, we would like to state that NISSO has decided to submit an application for
selection in the new market category, "Prime Market".

30

5Shareholder Return Policy

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

31

31

Shareholder Return Policy
Basic Policy

Dividend and Payout Ratio

NISSO considers the redistribution of profits toshareholders and the enhancement of corporate value
as key management issues. In addition, by setting theconsolidated dividend payout ratio of 30% as a generalstandard, NISSO's basic policy is to continue to steadily
redistribute profits to all of our shareholders.

(Unit: Yen)
30.00

(Unit: %)Payout ratio (right axis)

100%

25.00 yen

90%

25.00

20.00

FY 3/2022 Dividend Forecast

Dividend (left axis)

80%

20.10 yen

18.50 yen

18.00 yen

70%
60%

NISSO forecasted the dividend per share (18.00 yen)announced in the "Consolidated Financial Results for FY
3/2021 [Japanese GAAP] Dividend Forecast" on May
12, 2021.
In the current FY, the dividend payout ratio is set at30.6%, in consideration of investments for growth in
the next FY and beyond.

41.3%

15.00

10.00

42.7%

50%

30.6%

30.0%

40%
30%
20%

5.00

10%
0.00

FY 3/19

FY 3/20

FY 3/21FY 3/22 (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 ⓒ 2021 NISSO CORPORATION All Rights Reserved

32

・The following is the explanation of the Shareholder Return Policy.
・Under NISSO's Medium-term Management Plan, we intend to actively invest and grow, and we forecast
dividend per share to be 18.00 yen for the current fiscal year, with a dividend payout ratio of 30.6%.

32

6Supplementary Materials

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved33

33

Consolidated Balance Sheet(Unit: Million yen, %)Mar. 2021-end
Amount% of Total

Jun. 2021-end
Amount% of Total

Increase(Decrease)

14,813

68.5

14,680

68.7

(133)

Cash and deposits

5,873

27.2

5,624

26.3

(249)

Notes and accounts receivable - trade

8,094

37.4

8,162

38.2

67

6,817

31.5

6,681

31.3

(136)

4,654

21.5

4,659

21.8

4

305

1.4

280

1.3

(25)

1,857

8.6

1,740

8.1

(116)

21,631

100

21,361

100(269)

Current liabilities

8,178

37.8

8,449

39.6

271

Accrued expenses

4,541

21.0

4,755

22.3

213

Income taxes payable

494

2.3

96

0.5

(398)

Provision for bonuses

950

4.4

530

2.5

(419)

Non-current liabilities

689

3.2

722

3.4

32

345

1.6

388

1.8

43

8,868

41.0

9,171

42.9

303

Shareholders' equity

12,74458.9

12,173

57.0

(570)

Total net assets

12,76359.0

12,189

57.1

(573)

Total liabilities and net assets

21,631

100

21,361

100(269)

Current assets

Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total assets

Net defined benefit liability
Total liabilities

Copyright ⓒ 2021 NISSO CORPORATION All Rights Reserved

Point①Increase due to expansion of operations
Due to the expansion of operations of the
manufacturing-related human resources
services, "notes and accounts receivable(trade)" of current assets and "accrued
expenses" of current liabilities increased.
②Tax payments
Income taxes and other tax payments madeat the end of May reduced current liabilities
such as "income taxes payable".
③Bonus payments
Due to the payment of summer bonuses atthe end of June, "provision for bonuses" ofcurrent liabilities decreased.
④Dividends
Shareholders' equity decreased due todividend payments in June.
⑤Overall
As a result of the above, total assets
decreased by 1.2%, total liabilities increasedby 3.4%, net assets decreased by 4.5%, andequity ratio decreased by 1.9% to 57.1%.

34

34

Nurturing and Bringing Out
the Best in People

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

Investor Relations Office, NISSO CORPORATION
TEL

045-777-7630

E-mailir@nisso.co.jp

URL

https://www.nisso.co.jp/

35