0Key Points of Presentation
・In FY 3/2020 3Q, although NISSO anticipated a recovery in the electronic components industry fromthe second half of the fiscal year (2H), net sales did not increase as expected as a result in the delay inrecovery. In addition, in anticipation of a recovery, we experienced an increase in revenue and adecrease in profits due to continued investment in training centering on skilled staff.
・NISSO has conducted revisions of the forecasts since future trends are expected to remain severe.

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

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・The following is the explanation of NISSO's Non-consolidated Financial Results for FY 3/2020 3Q.
・Net sales amounted to 51,433 million yen (up 4,501 million yen or 9.6% year on year).
・Gross profit amounted to 9,040 million yen (up 525 million yen or 6.2% year on year).
・SG&A (selling, general and administrative) expenses amounted to 7,125 million yen (up 632 million yenor 9.7％% year on year).
・Operating profit amounted to 1,915 million yen (down 106 million yen or 5.3% year on year).
・Ordinary profit amounted to 1,917 million yen (down 94 million yen or 4.7% year on year).
・Profit amounted to 1,304 million yen (down 16 million yen or 1.2% year on year).
・In the automobiles Account Company Group, although we received orders as planned from companies
that launched new car models, at companies other than those that launched new car models, and at
automobiles manufacturers other than Account Companies, net sales were slightly below initial plans.
・With regard to the electronic components industry, the semiconductor industry bottomed out around
October, and although it was expected that the industry as a whole would recover from 2H, in actuality,
overall recovery has been delayed.
・Operating conditions remained sluggish overall. In particular, although work outside the hours ofoperation (overtime) was expected to increase in 3Q, in actuality, the situation remained severe.
・With regard to the appointment and development of skilled staff, which is a key point of NISSO's growthstrategy, training expenses increased due to continued investment for the next fiscal year and beyond.

4・Shown above are graphs of NISSO's quarterly non-consolidated net sales and operating profit trends.
・Net sales for FY 3/2020 3Q reached a record high on a quarterly basis.
However, although 3Q is generally the most profitable, when the number of enrolled staff in the quarter
would generally lead to an increase in net sales, the decrease in overtime work and the increase in paid
leave affected the net sales per capita. In addition, operating profit decreased year-on-year in 3Q due toan increase in costs such as training expenses.

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・The following is the explanation of the Consolidated Financial Results for FY 3/2020 3Q.
・Net sales amounted to 55,718 million yen (up 4,499 million yen or 8.8% year on year).
・Gross profit amounted to 9,515 million yen (up 537 million yen or 6.0% year on year).
・SG&A expenses amounted to 7,619 million yen (up 596 million yen or 8.5% year on year).
・Operating profit amounted to 1,896 million yen (down 58 million yen or 3.0% year on year).
・Ordinary profit amounted to 1,940 million yen (down 31 million yen or 1.6% year on year).
・Profit attributable to owners of parent amounted to 1,307 million yen (up 20 million yen or 1.6% year
on year).
・The deficit of Other Businesses has decreased.

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

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

8・Shown above is the Financial Results Summary for FY 3/2020 3Q.
The details for each category will be explained in the following pages.

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・The following is the explanation of NISSO's non-consolidated net sales by industry.
・Net sales only in the automobiles industry increased compared to the corresponding period of the previous
fiscal year (up 31.2% year on year). Although some manufacturers experienced difficult circumstances
during the quarter, net sales increased in the Account Company Group as expected, due to assignments tocompanies that introduced new car models.
・Net sales to other industries, such as the electronic devices and precision・electrical machinery industries,
decreased. Although the assumption was that the fields of semiconductors, electronic components, passive
components, and etc., would recover, recovery did not occur due to things such as the US-China tradeissues and the lack of growth in 5G-related products/industries.

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・The following is the explanation of the trend of NISSO's enrolled staff.
・The number of enrolled staff at the end of FY 3/2020 3Q was 14,638, down 1 staff from the end of 2Q.
・The number of enrolled staff in the automobiles industry continued to increase, mainly due to assignmentsof staff to companies that launched new car models.
・In the electronic components-related industry, although some companies increased production of
automotive-related parts, production of telecommunications-related components decreased, and overall,enrollment decreased.
・As a result of the above, the number of enrolled staff at the end of FY 3/2020 3Q remained nearly
unchanged from the end of 2Q.

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・The following is the explanation of NISSO's skilled staff.
・The number of skilled staff as of the end of FY 3/2020 3Q was 5,085.
・The utilization of skilled staff is one of the medium- to long-term strategies, and when demand for themin the electronic components industry increases in the future, we will strive to expand our market share bypromoting assignments centered on skilled staff.
・NISSO will continue to invest in the development of skilled staff while monitoring the balance between net
sales and profits.

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・The following is the explanation of the status of NISSO's Account Companies.
・NISSO's Account Companies net sales share ratio in FY 3/2020 3Q was 43.8%, down 0.3 pts from
44.1% in FY 3/2020 2Q.
・Although NISSO continued to increase net sales in the automobiles Account Company Group due to new
car model launches and other factors, net sales in the electronic components Account Company Groupdeclined since recovery in the passive components fields related to telecommunications equipment did
not recover.
・In regards to the future
In the automobiles Account Company Group, although the factories that have launched new car models
continue to perform well, other factories have slightly slowed down their production.
The status of semiconductor companies in the electrical machinery Account Company Group has notchanged significantly since 2Q. Since equipment maintenance personnel of large semiconductor factories
have been assigned in greater numbers than as planned, although we expect that demand will continue
to expand, we believe that full-scale production is still yet to come.
In the electronic components Account Company Group, we expect that the market centered on passive
components will take some more time to recover.
・In the near future, a very significant phenomenon that we are unable to fully grasp is how the effects of
the new coronavirus will emerge in supply chains. This time, in making revisions to our outlook forconsolidated earnings, although we have spoken with many of our clients, there are still many things
that we do not know, and we have acknowledged that it is not possible at this time to determine howmuch of an impact on supply chains there will be at the end of the current fiscal year, as well as the
beginning of the next fiscal year.

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・The following is the explanation of NISSO's turnover rates.
・The overall turnover rate was 4.7%, and the skilled staff turnover rate was 1.9% in FY 3/2020 3Q.
・Although there were workplaces where client demand decreased, and transfers to other workplaces
were promoted, turnover rates increased since such transfers depend on the intentions of persons
involved.
・In FY 3/2020 2Q and 3Q, although costs associated with transfers were incurred, the current overallturnover rate is on a declining trend due to various measures such as the method of transfers, and theperspectives on the suitability of staff. Going forward, NISSO will continue to aim to reduce the overallturnover rate by further increasing these measures.
・The skilled staff turnover rate has also begun to decline.

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・The following is the explanation of NISSO's educational achievements.
・In regards to education, skill staff education, manufacturing education, and equipment maintenanceeducation will continue to play a very significant role in increasing our market share, or boosting unitcosts in the future.
・For NISSO's future growth, we will continue to develop highly capable and high retention rate personnel
in our training for skilled staff. By increasing the retention rate, the assignment of such personnel to theframework of other companies' resigned worker replenishment/recruitment will progress, which will leadto the expansion of our market share. If we are able to increase retention by conducting education insuch a way, it will be possible to increase the number of NISSO's enrolled staff regardless of the increasein production volume of our clients.
・Although the number of course participants is still small, the training of 82 equipment personnel wereconducted in the 3 months of 3Q. This training situation has utilized the capacity of NISSO's training
facilities to its fullest, and the personnel trained there are mainly assigned to equipment maintenanceduties at semiconductor companies.
・The significance of equipment maintenance entails that if the equipment utilization rate can be increased
when mass production begins, productivity will increase, and client satisfaction levels will also increase,which in turn will lead to receiving more orders for operators at the time of mass production. As justdescribed, the dispatching, or contracting of equipment maintenance personnel and operators together,
are major points that will be essential to our growth hereafter.

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・The following is the explanation of Other Businesses.
・Operating loss for FY 3/2020 3Q was 16 million yen, and is expected to be 41 million yen for the full
year. Although the aim was to achieve a surplus for the full year for the current fiscal year, due to thedelay in the pace of occupancy of Bldg. 6 and the increase in the number of new residents were slower
than expected, in addition to investments made to improve services, Other Businesses is expected to bein the red for the full year.
・However, the occupancy status is not expected to lag much further, since various measures to copewith the delay have begun to take effect, and it is gradually starting to make up ground with the pace ofinitial plans. Under the current plan, the number of residents for Bldg. 6 is expected to reach 80(capacity of 94 residents) by the end of 1Q of the next fiscal year, and is expected to turn toprofitability from then onwards.
・Bldg. 1-5 are starting to approach 300 residents (capacity of 308 residents), and are progressing
smoothly.

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・The following is the explanation of Future Prospects.

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・The following is the explanation of future market trends and responses.
・In addition to the current conditions of the manufacturing industry as a whole, we acknowledge that it isdifficult for the demand for human resources to remain overwhelmingly strong as before, in part due tothe fact that the impact of the new coronavirus is still unknown.
・Domestic production of automobiles is not expected to continue rising steadily, and although thesituation will vary slightly depending on manufacturers and their factories, it is expected to remain nearly
unchanged.
・The electronic devices industry has already bottomed out, and although some Account Companies havebegun to increase production, we expect the overall recovery to begin from 1Q onwards of the next
fiscal year. However, it is still unknown at this time how the new coronavirus will affect supply chains,
and the recovery period may change depending on the situation.
・As just described, although the markets are expected to remain weak, as NISSO’s initiatives:
With regards to automobiles-related industries, since the Account Company Group has been performing
steadily, we will promote the assignment of skilled staff and strive to increase our market share.
With regards to semiconductor companies, since orders for equipment maintenance personnel haveincreased by approximately 1.5 times than at the initial stage, we will promote their complete training,
secure our market share, and ensure that the demand of operators for the next increase in production is
obtained.
With regard to electronic components-related industries, since the Account Company Group has a large
number of contracting sites, we will conduct the reinforcement of equipment maintenance personnel.
Although production is expected to increase in the future, we will strive to further increase our market
shares through these initiatives.

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・Our medium- to long-term growth will be addressed in detail in the new Medium-term Management Plan
which is scheduled to be announced in May 2020.
・The following is the explanation of the summary of the new Medium-term Management Plan that weare currently considering.
・At manufacturing sites, we will further refine our business model centered on our current AccountCompanies to differentiate NISSO from other companies, and are considering to expand into different
fields of non-Account Companies and/or Account Companies.
Currently, manufacturing sites are being influenced by new technological innovations, and there aresome companies that have already begun to change from conventional manufacturing methods. At
NISSO, we are considering how to respond to such changes in production sites and development fields
in this changing environment. Our clients have told us that a company will be able to expand its
business domain as long as it is a company that can firmly be responsible for the so-called production
technology. To this end, by leveraging our knowledge and expertise in both production technology andexisting manufacturing fields, NISSO is formulating a plan to further increase our market shares. This
plan will not be limited to being implemented within NISSO alone, but may be carried out with theutilization of M&A, alliances, and etc., and we are examining ways to achieve the initial Medium-termManagement Plan as early as possible.
・Since NISSO is a company that possesses a large amount of "big data", as well as human resources, weplan to work with a view to establishing alliances with companies that are strong in the digital domain inorder to utilize this big data more effectively.

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

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・The following is the explanation of the full-year outlook for consolidated earnings for FY 3/2020.
・NISSO has revised the Full-year Consolidated Forecast for FY 3/2020 based on recent business performancetrends.
・Net sales have been revised to 74,300 million yen (down 5,700 million yen or 7.1% compared withinitial forecasts).
・Operating profit has been revised to 2,700 million yen (down 1,200 million yen or 30.8% compared withinitial forecasts).
・Ordinary profit has been revised to 2,750 million yen (down 1,250 million yen or 31.3% compared withinitial forecasts).
・Profit attributable to owners of parent has been revised to 1,840 million yen (down 920 million yen or 33.3%
compared with initial forecasts).
・In making the revisions, although we have received information from our clients, including the impact on
supply chains due to the effects of the coronavirus, there is a possibility that the current conditions maychange.
・In preparation for the end of the fiscal year in March, each employee of the Nisso Group will join together
and endeavor to achieve results that exceed the revised earnings outlook.

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

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・The following is the explanation of NISSO’s Topics.

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・The following is the explanation of "Nikon Nisso Prime Corporation".
・Nikon Nisso Prime Corporation was launched on January 6, 2020.
・Since NISSO had been considering to make full use of our extensive experience in the human resourcesbusiness to create a place where middle-aged and elderly people in Japan's major manufacturers could
play active roles, with this initiative with Nikon, we will build a structure and promote its expansion toother manufacturers.

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・NISSO was selected as First Place for the second consecutive year in the Oricon Customer Satisfaction®
ranking 2020 for "Manufacturing Dispatching".
・NISSO received a #1 ranking in all 6 evaluation items.
("Ease of Registration・Contract", "In-house Training", "Welfare Programs", "Response of Contact
Personnel", "Information Provided", and "Negotiating Capability"）
・NISSO will actively provide information on this achievement to the labor market and utilize it in our
recruitment activities.

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・The following is the explanation of Shareholder Returns.

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・The following is the explanation of the Shareholder Return Policy.
・Regarding dividends, there are no changes to NISSO's concept of increasing dividends in a stablemanner.
・The dividend amount per share of 25 yen announced on May 10, 2019 is not scheduled to change.

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