Consolidated Financial Results for the First Six Months of FY 3/2022 [Japanese GAAP]
November 8, 2021
Stock Exchange Listing: Tokyo

Company Name
Securities CodeNISSO CORPORATION
6569
ＵＲＬ https://www.nisso.co.jp/

Representative(Title)Representative Director,
President & CEO（Name）Ryuichi Shimizu

Contact Person(Title)Sr. Executive Officer（Name）Norihiro Sekido

ＴＥＬ +81-45-514-4323

Scheduled date of filing
Scheduled date ofNovember 12, 2021－
Quarterly Report
payment of dividend
Preparation of supplementary materials(Scheduled to be posted on the Company's website on November 8, 2021 (Mon.))for quarterly financial results: Yes
Holding of quarterly financial results (Scheduled to be held for institutional investors and analysts on November 11,
meeting: Yes
2021 (Thu.))（All amounts are rounded down to the nearest million yen）

1. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2022
(April 1, 2021 – September 30, 2021)(1) Consolidated results of operations（Percentages represent year-on-year changes）
Profit attributable
Net sales
Operating profit
Ordinary profit
to owners of parent
First six months ended

September 30, 2021
September 30, 2020
(Note) Comprehensive income

Million yen％

Million yen

36,694 11.3
32,972 (10.4)％

First six months ended

September 30, 2021
September 30, 2020

Yen

Yen

17.28
17.58

(2) Consolidated financial position
Total assets
September 30, 2021
March 31, 2021

Million yen％

587 (1.6)
596 (24.0)

581 Million yen ( -2.7%)
598 Million yen (-19.4%)

Diluted net income
per share

17.30
17.65

As of

％

908 (8.2)
989 (14.3)

For the first six months ended September 30, 2021:
For the first six months ended September 30, 2020:

Net income per share(Reference) Equity capitalMillion yen

824
12.7
731 (35.2)

Net assets

Equity ratio

Million yen

Million yen％

22,055
21,631

12,444
12,76356.4
59.0

As of September 30, 2021:
As of March 31, 2021:

12,444 Million yen
12,763 Million yen

2. Dividends
Dividend per share
1Q-endFiscal year ended
March 31, 2021
Fiscal year ending
March 31, 2022
Fiscal year ending
March 31, 2022
(Forecast)

2Q-end3Q-endYear-end

Total

Yen

Yen

Yen

Yen

Yen

－

0.00

－

20.10

20.10

－

0.00
－

18.00

18.00

(Note) Revisions to the most recently announced dividend forecast: None

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2022
(April 1, 2021 – March 31, 2022)（Percentages represent year-on-year changes）
Profit
Net income per
Net sales
Operating profit Ordinary profit
attributable toshareowners of parent

Full year

Millionyen％

Millionyen％

Millionyen％

Million
yen

％

Yen

78,000

14.3

2,400

(7.7)

2,600

(11.9)

1,750

9.9

51.51

(Note) 1. Revisions to the most recently announced consolidated earnings forecast: Yes
2. For details regarding the Consolidated Forecast, please refer to the “Notice of Revisions of Full-year Consolidated
Forecast for the Fiscal Year Ending March 31, 2022”announced today (Monday, November 8, 2021).

※

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

(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements and Notes (4) Notes regarding Quarterly
Consolidated Financial Statements (Changes of Accounting Policies)" on page 10 of the attached documents.

(4) Number of outstanding shares (Common stock)① Number of shares outstanding at
As of Sep.
the end of the period (including
30, 2021
treasury shares)②③

Number of treasury shares at theend of the period

As of Sep.

Average number of shares
outstanding during the period(Quarterly total)

First six

30, 2021

months ended
Sep. 30, 2021

34,327,600 Shares

348,444 Shares

As of Sep.
30, 2020
As of Sep.
30, 2020

34,320,400 Shares

366,381 SharesFirst six
33,963,598 Sharesmonths ended

33,818,504 SharesSep. 30, 2020※

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, (4) Description of Future Forecast Information such as
Consolidated Forecasts, etc." on P. 5 of the attachments.

（Supplementary materials for quarterly financial results and method of obtaining content for quarterly
financial results meeting）
The Company is planning to hold a briefing session for institutional investors and analysts on
Thursday, November 11, 2021.
Quarterly financial results briefing materials to be used on that day will be posted on the Company's
website on the day of the announcement of financial results (Monday, November 8, 2021).

（Reference）Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2022
(April 1, 2021 – September 30, 2021)(1) Non-consolidated results of operations（Percentages represent year-on-year changes）
Net salesFirst six months ended

September 30, 2021
September 30, 2020

First six months ended

September 30, 2021
September 30, 2020

Million yen％

Operating profit

Ordinary profit

Million yen

Million yen

863
13.5
760 (32.8)

Net income per share

Diluted net income
per share

Yen

Yen

16.82
17.92

16.80
17.84

(2) Non-consolidated financial position
Total assets
As of

September 30, 2021
March 31, 2021
(Reference) Equity capital％

33,981 12.7
30,155 (11.2)

Quarterly net profit％

888 (9.1)
977 (14.0)

Net assets

Million yen％

571 (5.7)605 (22.0)

Equity ratio

Million yen

Million yen％

20,01019,811

11,85911,95559.3
60.3

As of September 30, 2021:
As of March 31, 2021:

11,859 Million yen
11,955 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 ……………………………………………………………………………

5（３）Description of Cash Flows ………………………………………………………………………………………

5（４）Description of Future Forecast Information such as Consolidated Forecasts, etc. ………………

5

２．Quarterly Consolidated Financial Statements and Notes ………………………………………………………

6（１）Quarterly Consolidated Balance Sheet ………………………………………………………………………

6（２）Quarterly Consolidated Statements of Income and Comprehensive Income ……………………………

7

Quarterly Consolidated Statement of Income
For the First Six Months ended September 30, 2021 ……………………………………………………

7

Quarterly Consolidated Statement of Comprehensive Income
For the First Six Months ended September 30, 2021 ……………………………………………………

8（３）Quarterly Consolidated Statements of Cash Flows …………………………………………………………

9（４）Notes regarding Quarterly Consolidated Financial Statements …………………………………………

10（Notes regarding the Going Concern Assumption） …………………………………………………………

10（Notes on Significant Changes in the Amount of Shareholders' Equity） ……………………………

10（Change of Accounting Policies） ………………………………………………………………………………

10（Additional Information） ………………………………………………………………………………………

10（Business Combinations, etc.）…………………………………………………………………………………

11

- 1 -

１．Qualitative Information on Quarterly Financial Results（１）Description of Results of Operations
Japan's economy during the current consolidated cumulative second quarter (hereinafter, the "period
under review") showed signs of a gradual recovery, due in part to the decrease in the number of people
infected with the new coronavirus (hereinafter, "COVID-19") and the promotion of vaccinations. On theother hand, it is necessary to pay close attention to the impact on domestic and overseas economies,
such as the stagnation of supply chains caused by lockdowns mainly in Southeast Asia, as well as theeffects of fluctuations in financial and capital markets.
As for the business environment surrounding the Nisso Group (hereinafter, the "Group"), althoughauto-body manufacturers, who are important clients, experienced operational adjustments due to theeffects of shortages of semiconductors and parts, in the electronic devices-related industry,
production has increased as a result of strong demand for semiconductors. On the other hand, in termsof employment conditions, there is a growing need for external human resources utilization at NISSOCORPORATION's (hereinafter, the "Company") client's manufacturers, such as hiring human resources withan eye on the future in the manufacturing industry.
In this environment, based on its mission of "Creating opportunities and hopes for people to work",
the Group aims to create workplaces where workers can feel motivated and grow, with Human Resources
Solution Services that support the growth of companies and people, and "to transform into a corporategroup with high-growth potential", which is the goal of the Medium-term Management Plan. With the aimof providing services that can respond to social changes and changes in industrial structures, theGroup is promoting the following initiatives.
During the period under review, net sales in the existing areas of manufacturing dispatching andcontracting, and administrative human resources services amounted to 32,654 million yen, up 3.3% fromthe first quarter consolidated accounting period (hereinafter, the "first quarter").
Based on the strategy of strengthening its service provision system, increasing the market share of
Account Companies, expanding recruitment, providing more educational opportunities, and assigningskilled staff to Account Company Groups, which the Group positions as important clients, the number ofskilled staff amounted to 5,123 (up 128 from the first quarter), and net sales at Account Companies
for the second quarter consolidated accounting period (hereinafter, the "second quarter") amounted to
8,091 million yen (up 217 million yen from the first quarter). On the other hand, due to theadjustments in the operation of auto-body manufacturers as a result of shortages of semiconductor andparts, although the share of net sales of Account Companies decreased to 46.8% (which was 47.2% in thefirst quarter), the Company is working to secure human resources in order to start recovery production
from the second half of the third quarter consolidated accounting period (hereinafter, the "third
quarter").
In addition, as the first step in the growth strategy for expanding the existing areas outlined in
the Medium-term Management Plan, on August 31, 2021, the Company acquired all shares of Vector Shinwa
Co., Ltd., a company that is mainly engaged in contracting operations in the manufacturing industry ofsemiconductors and precision equipment. Since the deemed acquisition date of Vector Shinwa was
September 30, 2021, only the balance sheet is consolidated for the current second quarter, and thefinancial results of the acquired company are not included in the Quarterly Consolidated Statement of
Income for the period under review.
In the engineering area, net sales for the period under review were 2,545 million yen, an increaseof 4.9% from the first quarter.
In order to increase the number of engineers, the Company will utilize its unique recruitment site"engineer works", which specializes in engineers, to increase the number of engineers by expanding
recruitment and promoting the reassignment of manufacturing human resources to engineers. The numberof engineers amounted to 901 (up 40 from the first quarter), and the average monthly net sales per
capita for the period under review was 509 thousand yen (which was 523 thousand yen in the firstquarter). In order to achieve the targets of the Medium-term Management Plan, the Group is promoting
M&A and alliances, and is making efforts to create a structure to expand the existing areas ofengineers and to provide new services.
Net sales in the new business area for the period under review were insignificant.
In order to create new businesses, the Company is strengthening its cooperation with partnerships,
and have participated int the "TASUKI" project, which has an annotation platform operated by SB
Innoventure Corp. (Head office: Minato-ku, Tokyo) which has built an annotation platform that creates
efficient and high-quality using AI technology, and started annotation operations, and is continuing
its efforts to create new businesses.

- 2 -Net sales in the nursing care business for the period under review amounted to 1,494 million yen, an
increase of 1.3% from the first quarter.
As a result of measures to improve the quality of services provided at the "Sweetpea" nursing carefacilities located in 6 locations in Yokohama, the occupancy rate of the nursing care facility"Sweetpea Higashi Totsuka (Bldg. 6)" has remained high at 92.6%.In addition, the Group is working tobuild a stable revenue base by continuing its efforts to improve its management structure, such as
promoting operational efficiency.
As a result, the results of operations for the period under review are as follows: net sales of
36,694 million yen (up 11.3% year-on-year), operating profit of 824 million yen (up 12.7% year-onyear), ordinary profit of 908 million yen (down 8.2% year-on-year), and profit attributable to ownersof parent amounted to 587 million yen (down 1.6% 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 promoting business activities thatstrengthen measures to prevent the spread of COVID-19 infections. Despite production adjustments dueto the impact of the supply chain, it is believed that the Group's business performance is expected toremain firm going forward as economic activities of clients related to the Company recover. On theother hand, in the event of an occurrence where individuals are affected by the virus at its clients,
workplaces or nursing care facilities, the Group may be affected.
The results of operations by segment are as follows:（Human Resources Services Business）
FY 3/2022 Net sales
Cons. cumulative 2nd Qtr.
Amount (YoY)YoY Amount
Manufacturing-related
Human Resources Services
Administrative Human
Resources Services
Adjustment amount
Total(Unit: Million yen)
FY 3/2022 Operating profit
Cons. cumulative 2nd Qtr.
Amount (YoY)YoY Amount

34,004（up 12.7%）

30,171807（up 11.3%）725

1,216（down 10.4%）

1,357

(2) （

- ）

46

(17) （ - ）35,204（up 11.7%）(13)
31,5150 （ - ）
805（up 4.4%）

(0)
771

Manufacturing-related Human Resources Services (NISSO CORPORATION, Nisso Pure Co., Ltd.)For clients of manufacturing-related human resources serves, the core business which accounted for
92.5% of consolidated net sales during the period under review, production adjustments occurred in
the automobiles-related industry, while production by semiconductor equipment manufacturers in theelectronic devices-related industry performed well. From the second half of the third quarter, theGroup will be strengthening its efforts to secure personnel aimed at contributing to recovery
production, mainly for auto-body manufacturers, and has been actively investing in manufacturing
staff recruitment measures, such as starting the broadcasting of TV commercials from October 1,
2021, in order to improve the visibility of the Company's recruitment website "Kojo Kyujin Navi".
During the period under review, the Company expanded recruitment interview opportunities throughthe use of on-line interviews, and promoted efforts such as compensating for the decrease inoperations due to production adjustments, in order to improve the retention rate of manufacturing
staff. The turnover rate of manufacturing staff remained at a low level of 3.7% (which was at 4.2%
in the previous consolidated fiscal year), and the number of enrolled manufacturing staff was 14,225(up 1,079 from the previous consolidated fiscal year).
As a result, the Company implemented education for manufacturing staff to increase added value,
including the utilization of not only its own educational facilities but also the use of the Web.
However, due to the decrease in the hours of operation as a result of the impact of operational
adjustments by major clients, the average monthly net sales per capita was 406 thousand yen (adecrease of 3 thousand yen from the first quarter), and although the growth of business performanceslowed due to the recovery of investment costs such recruitment measures, revenue and profits
increased year-on-year.
Nisso Pure Co., Ltd., a special-purpose subsidiary of the Company, promotes the employment of- 3 -persons with disabilities. With the aim of creating a workplace environment where diverse humanresources can flourish, the Group not only hires employees with disabilities, but also promotes
activities that take advantage of each individual's characteristics, such as being entrusted withlight work operations from external clients, and promotes coexistence with local communities,
including those related to schools, support organizations, and the government. As a result, thenumber of employees with disabilities as of the end of September 2021 was 196.
Administrative Human Resources Services (Nisso Brain Co., Ltd.)The administrative human resources services carry out general office work dispatching and BPO(Business Process Outsourcing: the outsourcing of operations and processes of specific businessrelated tasks to a [third-party] specialized company).
In the period under review, in order to stabilize existing businesses, although the Company
engaged in recruitment activities centered on public relations and customer attraction activities,
due to the stagnation of business activities caused by the declaration of the state of emergency,
the number of employees dispatched for administrative work was 628 (down 62 from the end of theprevious fiscal year). As a result, the decrease in sales did not absorb personnel expenses andoperating expenses, resulting in a decrease in sales and profits.
（Other Businesses）
FY 3/2022 Net sales
Cons. cumulative 2nd Qtr.
Amount (YoY)YoY AmountNursing care・welfare
business

1,494（up 2.2%）

1,461(Unit: Million yen)
FY 3/2022 Operating profit
Cons. cumulative 2nd Qtr.
Amount (YoY)YoY Amount
20 （

- ）

(39)

Nursing care・welfare services business (Nisso Nifty Co., Ltd.)In the facilities nursing care business, which is the core business of this business segment,
during the period under review, as a result of promoting on-line facility preview events and otheractivities on the premise of preventing the spread of COVID-19 infections, the occupancy rate ofnursing care facilities was maintained at a high level of 95.0%, and revenues and profits increased
through efforts to improve profitability such as improving the efficiency of personnel and operating
expenses.

- 4 -（２）Description of Financial Position（Assets）
Current assets at the end of the current second quarter amounted to 13,846 million yen, which was adecrease of 967 million yen from the end of the previous consolidated fiscal year. This was mainly due
to decreases of 818 million yen in cash and deposits, and 117 million yen in notes and accounts
receivable (trade).
Non-current assets at the end of the current second quarter amounted to 8,208 million yen, which was
an increase of 1,391 million yen from the end of the previous consolidated fiscal year. This was
mainly due to an increase of 1,345 million yen in goodwill.
As a result, total assets amounted to 22,055 million yen, which was an increase of 423 million yen
from the end of the previous consolidated fiscal year.
（Liabilities）
Current liabilities at the end of the current second quarter amounted to 8,692 million yen, which
was an increase of 514 million yen from the end of the previous consolidated fiscal year. This was
mainly due to increases of 169 million yen in accrued expenses and 93 million yen in provision forbonuses.
Non-current liabilities at the end of the current second quarter amounted to 917 million yen, which
was an increase of 227 million yen from the end of the previous consolidated fiscal year. This was
mainly due to an increase of 86 million yen in net defined benefit liability.
As a result, total liabilities amounted to 9,610 million yen, which was an increase of 742 million
yen from the end of the previous consolidated fiscal year.
（Net assets）
Total net assets at the end of the current second quarter amounted to 12,444 million yen, which wasa decrease of 318 million yen from the end of the previous consolidated fiscal year. This was mainly
due to the 587 million yen in profit attributable to owners of parent, and 682 million yen in
dividends of surplus.
As a result, the equity ratio was at 56.4% (which was at 59.0% at the end of the previous
consolidated fiscal year).
（３）Description of Cash Flows
Cash and cash equivalents for the period under review decreased by 824 million yen from the end of
the previous consolidated fiscal year to 5,048 million yen.
The status of each cash flow for the period under review and their factors thereof are as follows:(Cash flows from operating activities)
Cash flows from operating activities amounted to proceeds of 1,191 million yen (compared toproceeds of 547 million yen in the same quarter of the previous fiscal year) due to proceeds of 901
million yen for profit before income taxes, etc.
(Cash flows from investing activities)
Cash flows from investing activities amounted to expenditures of 1,302 million yen (compared to
expenditures of 398 million yen in the same quarter of the previous fiscal year) due to expendituresof 1,212 million yen for purchase of shares of subsidiaries resulting in change in scope of
consolidation, etc.
(Cash flows from financing activities)
Cash flows from financing activities amounted to expenditures of 713 million yen (compared to
expenditures of 944 million yen in the same quarter of the previous fiscal year) due to expendituresof 682 million yen for cash dividends paid, etc.。
（４）Description of Future Forecast Information such as Consolidated Forecasts, etc.
Based on the results of the period under review, the Full-year Consolidated Forecast and Dividend
Forecast announced on May 12, 2021 has been revised.
For details, please refer to the "Notice of Revisions of Full-year Consolidated Forecast for the
Fiscal Year Ending March 31, 2022" announced today (Monday, November 8, 2021).

- 5 -２．Quarterly Consolidated Financial Statements and Notes（１）Quarterly Consolidated Balance Sheet(Unit: Million yen)
FY 3/21(As of Mar. 31, 2021)
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
Goodwill
Other
Total 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
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- 6 -2Q of FY 3/22
(As of Sep. 30, 2021)

5,873
8,094
850
(5)
14,813

5,054
7,977
818
(4)
13,846

1,799
2,704
150
4,654

1,818
2,710
148
4,677

305
305

1,345
257
1,603

1,876
(19)
1,857
6,817
21,631

1,956
(28)
1,928
8,208
22,055

4,541
494
950
2,191
8,178

26
4,710
497
1,044
2,413
8,692

345
344
689
8,868

71
431
414
917
9,610

2,015
2,368
8,674
(313)
12,744

2,015
2,368
8,345
(298)
12,4311
17
18
12,763
21,6311
12
13
12,44422,055

（２）Quarterly Consolidated Statements of Income and Comprehensive Income（Quarterly Consolidated Statement of Income）（For the First Six Months ended September 30, 2021）(Unit: Million yen)First six months
of FY 3/21
(Apr. 1, 2020 –Sep. 30, 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 for using equity
methodSubsidy income
House rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodRent expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on sales of non-current assets
Directors' retirement benefits
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 7 -First six months
of FY 3/22
(Apr. 1, 2021 –Sep. 30, 2021)

32,972
27,879
5,093
4,361
731

36,69430,659
6,035
5,211
824

1
0

1
0

-

6

274
20
12
309

65
20
22
116

6

-

4

-

10
30
51
989

8
23
32
908

50
50
938
388
(47)
341
596
596

7
7
901
369
(55)
313
587
587

（Quarterly Consolidated Statement of Comprehensive Income）（For the First Six Months ended September 30, 2021）(Unit: Million yen)First six months
of FY 3/21
(Apr. 1, 2020 –Sep. 30, 2020)

ProfitOther comprehensive income
Remeasurements of defined benefit plans, net oftax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests- 8 -First six months
of FY 3/22
(Apr. 1, 2021 –Sep. 30, 2021)

596

587

1

(5)

(0)

(0)

1
598

(5)
581

598

581

-

-

（３）Quarterly Consolidated Statements of Cash Flows(Unit: Million yen)First six months
of FY 3/21
(Apr. 1, 2020 –Sep. 30, 2020)

Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for directors'
bonuses
Increase (decrease) in provision for bonuses
Decrease (increase) in net defined benefit asset
Increase (decrease) in net defined benefit liability
Loss (gain) on sales of non-current assets
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted forusing equity method
Decrease (increase) in notes and accounts receivable- tradeDecrease (increase) in lease and guarantee deposits
Increase (decrease) in accrued expenses
Increase (decrease) in accrued consumption taxes
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes refund
Income taxes paid
Cash flows from operating activities
Cash flows from investing activities
Purchase of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of shares of subsidiaries resulting inchange in scope of consolidation
Other
Cash flows from investing activities
Cash flows from financing activities
Repayments of long-term loans payable
Repayments of lease obligations
Proceeds from issuance of common shares
Cash dividends paid
Cash flows from financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 9 -First six months
of FY 3/22
(Apr. 1, 2021 –Sep. 30, 2021)

938
141

901
137

7

7

14

-

113
89
(2)
6

88
(3)
86
7
(1)
-

4

(6)

1,192

182

10
(329)
(939)
8
1,257
2
(6)
3
(708)
547

6
142
81
(34)
1,595
1
2
(407)
1,191

(300)
(53)
(45)

(72)
1
(19)

-

(1,212)0(398)

0(1,302)

(58)
(40)
(845)
(944)

(31)
0
(682)
(713)

-

-

(794)
6,365
5,570

(824)
5,873
5,048

（４）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.
（Changes in Accounting Policies）（Application of Accounting Standards for Revenue Recognition）"Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020. Hereinafter,the "Revenue Recognition Accounting Standards") etc., have been applied from the beginning of thefirst quarter, and revenue was recognized at the amount expected to be received in exchange for thepromised goods or services when the control of those goods or services is transferred to clients.
The main changes resulting from the application of Revenue Recognition Accounting Standards are as
follows:(Human Resources Services Business)
Previously, although consideration paid to clients, such as rent, was treated as cost of sales, it
has been changed to a method of reducing it from the transaction price.
(Other Businesses)
In the past, the lump-sum payment received from a client in a nursing care facility's occupancy
contract was recognized as revenue after the expiration of the amortization period under theoccupancy contract. However, the method has been changed to recognize revenue over the period ofresidence in which the service is expected to be provided.
The application of the Revenue Recognition Accounting Standards is in accordance with thetransitional treatment set forth in the Revenue Recognition Accounting Standards No. 84. The
cumulative effect of retroactively applying the new accounting policy prior to the beginning of thefirst quarter was added to or subtracted from retained earnings at the beginning of the firstquarter, and the new accounting policy was applied from the beginning balance.
As a result, net sales for the period under review decreased by 127 million yen, cost of sales
decreased by 131 million yen, and operating profit, ordinary profit, and profit before income taxes
each increased by 4 million yen. In addition, the balance at the beginning of current period ofretained earnings decreased by 233 million yen. Furthermore, "other" under the current liabilities
category increased by 230 million yen at the end of the current second quarter.。
In accordance with the transitional treatment set forth in Paragraph 28-15 of the "AccountingStandard for Quarterly Financial Statements" (ASBJ Statement No. 12, March 31, 2020), the revenue
generated from contracts with clients for the previous year's consolidated cumulative second quarter
is not presented.

（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 previous period under review (firstquarter consolidated accounting period).

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（Business Combinations, etc.）
Business Combination by Acquisition
At the Board of Directors' Meeting held on August 10, 2021, the Company resolved to acquire all sharesof Vector Shinwa Co., Ltd., which is based on contracting operations in the manufacturing industry ofsemiconductors and precision equipment, and made it a subsidiary. In addition, the Company concluded ashare transfer agreement on the same day, and acquired all shares on August 31 of the same year.
１．Overview of Business Combination(1) Name of acquired company and its description of business
Name of Acquired Company
Vector Shinwa Co., Ltd.
Description of Business
General Human Resources Services Business(2) Main reasons for business combination
Based on the mission of "Creating opportunities and hopes for people to work", the Group aims tocreate workplaces where employees can feel motivated and grow with Human Resources Solution
Services that support the growth of companies and people, and to provide services that can
respond to social changes and changes in industrial structures.
As the first step in the growth strategy for the expansion of existing areas announced in theMedium-term Management Strategy, the Company has decided to acquire all shares of Vector Shinwa
Co., Ltd. and make it a subsidiary. Based in Aichi Prefecture, Hiroshima Prefecture, and Fukuoka
Prefecture, Vector Shinwa Co., Ltd. focuses on human resources development with a slogan of"Minority Elite", and engages in a wide range of operations such as designing, developing andmanufacturing jigs and various production equipment, dispatching human resources, andrecruitment. The main pillar of Vector Shinwa's business is contracting operations in the
manufacturing industry, such as for semiconductors and precision equipment. With Vector Shinwa
Co., Ltd. joining the Group, the Company believes that it will be able to grow together as agroup by strengthening its business foundation and expanding its business in existing areas suchas manufacturing dispatching and contracting, which are the core businesses of the Group.
Vector Shinwa will be able to utilize the resources of the Group, such as its client base,recruitment base, and education base, and by having the Company combine its resources with thetechnology and human resources development expertise that Vector Shinwa has cultivated so far,the Company will be able to strengthen its service supply system and expand its business,enabling it to respond to the needs of not only existing clients of both companies, but also to awider range of clients. By doing so, the Company will contribute to the future of Japanese
MONOZUKURI (manufacturing) in a wide variety of ways.
(3) Date of business combination
August 31, 2021
（Date of Share Acquisition）(4)

September 30, 2021
（Date of Deemed Acquisition）
Legal form of business combination(5)

Acquisition of shares with cash as consideration
Name of Company after combination(6)

There is no change.
Percentage of voting rights acquired

(7)

100%
Main reasons for determining acquisition of company
The Company acquired the shares in consideration for cash.

２．Period of Business Performance of the Acquired Company included in the Quarterly Consolidated
Statement of Income for the Quarterly Consolidated Cumulative Period
Since the date of deemed acquisition is September 30, 2021, only the balance sheet is consolidated
for the current second quarter, and the financial results of the acquired company are not included in
the Quarterly Consolidated Statement of Income for the period under review.

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３．Breakdown by Acquisition Cost and Consideration by Type of Acquired Company
Consideration for acquisition
Cash 1,700 Million yen
Acquisition cost

1,700 Million yen

４．Breakdown and Amount of Major Acquisition-related Expenses
Remuneration for financial and legal investigations
7 Million yen
５．Amount of Goodwill Generated, Cause of Occurrence, Amortization Method and Amortization Period(1) Amount of Goodwill Generated
1,345 Million yen
The above amounts are provisionally calculated because the period from the business combination
date to the closing date is short, and the identification of identifiable assets and liabilities
as of the business combination date and the estimate of market value have not been completed, andin addition, the allocation of acquisition costs has not been completed.
(2)

Cause of OccurrenceThis was mainly due to a reasonable estimate of future excess earning power expected from futurebusiness development.

(3)

Amortization Method and Amortization Period
Amortization will be made regularly by the straight-line method over the effective period.
amortization period is under calculation.

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The