First Quarter of FY 2019
Financial Results Briefing Materials
August 21, 2018
NISSO CORPORATION
TSE1 Code: 6569

Financial Results Summary for FY 3/2019 1Q

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved1

FY 3/2019 1Q Consolidated Financial Results Highlights◆NISSO: Increase in account companies, steady expansion of financial results due toincrease in skilled staff◆Nisso Nifty: Opening of new nursing care facility (Sweetpea Higashi Totsuka),
occurrence of upfront investment（Unit: Million yen）
FY 3/2018 1QResults% of TotalFY 3/2019 1QResults

Year-on-Year% of Total

Increase(Decrease)% Change

Net sales

13,907100.0%

15,999100.0％

2,091

15.0％

Gross profit

2,434

17.5%

2,660

16.6％

225

9.3％

SG&A expenses

2,053

14.8%

2,287

14.3％

234

11.4％

Operating profit

381

2.7%

372

2.3％

(8)

(2.3％)

Ordinary profit

383

2.8%

389

2.4％

61.6％

Profit attributable toowners of parent

255

1.8%

242

1.5％

(13)

(5.3％)（Note）Quarterly consolidated financial statements based on the Financial Instruments and Exchange Act were notprepared for FY 3/2018 1Q.
Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved2

FY 3/2019 1Q Factors contributing to changes in consolidated operating profit◆General HR Services Business
Manufacturing-related HR Services: Increase in # of enrolled staff and profit growth due to sales per capita increase◆Other Businesses: Fall in profit due to opening of new nursing facility and increases in administrative expenses, etc.

（Unit: Million yen）

General HR Services Business

381-12+69372-65

・Decrease in # ofemployed staff

・Increased enrollment（＋1,422 staff）・Sales per capita increase（＋27 thousand yen）

FY 3/2018 1Q Manufacturing-related
HR services
Operating profit

AdministrativeHR services

・Increase in occupancy
at new facility
・Increase in expenses
for new facility

Other Businesses

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

FY 3/2019 1Q
Operating profit4

FY 3/2019 1Q Non-consolidated Financial Results Highlights◆ Increase in sales and profit due to skilled staff placement at account companies◆ Actively investing in human resources development to improve provision of services andemployee motivation (opening of educational facilities, increasing # of participants)(Unit: Million yen)
FY 3/2018 1Q
Results

FY 3/2019 1Q% of Total

Results

Year-on-Year% of Total

Increase% ChangeNet sales

12,325100.0%

14,590100.0%

2,265

18.4％

Gross profit

2,205

17.9%

2,515

17.2％

309

14.0％

SG&A expenses

1,868

15.2%

2,115

14.5％

247

13.3％

Operating profit

337

2.7%

399

2.7％

62

18.5％

Ordinary profit

331

2.7%

411

2.8％

79

23.9％

Profit

221

1.8%

259

1.8％

37

17.1％

（Note）1. Quarterly financial statements based on the Financial Instruments and Exchange Act
were not prepared for FY 3/2018 1Q.
Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved4

1Q Sales by Industry (NISSO, Non-consolidated)【Trend of Sales Composition Ratios（Unit: Million yen）】
16,00014,00012,00010,000※（ ）= % of total sales※ □ = % of Year-on-Year growthOther2,607 （17.9％）

Other2,548 （20.7％）

Precision · Electrical machinery

2,424 （16.6％）+2.3％+12.8％

Precision · Electrical machinery

8,000
6,000

2,149（17.4％）

Electronic devices
3,275 （26.6％）

4,000Automobiles
Automobiles

2,000Electronic devices +32.２％
4,330 （29.7％）

4,353（35.3％）

5,227 （35.8％）+20.1％

 Electronic devices:
Increase in demand forsmartphones/automotive
electronic components
 Automobiles:
Favorable production
conditions domestically/overseas for auto body
/automobile parts
manufacturers

0

FY 3/18 1Q

FY 3/19 1Q（Note）1. Quarterly financial statements based on the Financial Instruments and Exchange Act
were not prepared for FY 3/2018 1Q.
Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved5Trend of Enrolled Staff (NISSO, Non-consolidated)◆Enrollment is steadily on an upward trend (up 4.9% from end ofprevious FY)（Staff）

Trend of Number Enrolled at FY-end

14,00013,05013,00012,44412,00011,00010,00011,497
10,561＋936 staff/year＋606 staff/3 months

 Increase of 606 staff fromprevious FY-end
 Looking ahead, increasein number of enrolled
staff is expected due tocontinuous, strong clientdemand＋947 staff/year[Reference]
FY 3/18 1Q-end enrollment:
11,628 staff(FY 3/17-end + 131 staff)

9,000
8,00007,000
FY 3/16-end

FY 3/17-end

FY 3/18-end

FY 3/19 1Q-end

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

6Trend of Sales per Capita（NISSO, Non-consolidated）◆Sales per capita rose from previous FY（Thousand yen）
390

Sales per capita (monthly average conversion)

379

380

360
350

＋12,000 yen/3 months

344＋22,000 yen/year

340

320
310

FY 3/17

 Unit price increases are partly
redistributed as employeecompensation improvements Increases in sales per capita expected
due to continued facilitation of skilled
staff assignment to accountcompanies

330

3000

 Increased sales in account companies
 Rise in unit prices with increased # ofclients adopting skilled staff system
and increase of skilled staff

367370 Increase of approx. 12,000 yen fromprevious FY (up 3.3%)

FY 3/18

FY 3/19
列2 1Q[Reference]
FY 3/18 1Q sales per capita:
351 Thousand yen(Approx. 7,500 yen, or 2.2% increase
from FY 3/17)

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved7

Number of Skilled Staff（NISSO, Non-consolidated）◆ Skilled staff are steadily increasing[Skilled staff compensation, etc.]
Skilled staff

Non-skilled staff

Employment contracts"Region-" or “industry type-"
restrictedindefinite-term employee

Fixed-term（with someindefinite-term）

Appointment criteria

Work, ability evaluation－SalaryMonthly

Hourly

Bonus

Yes

No

Salary increases

Yes

NoRetirement planYes

No[# of Skilled Staff]

FY 3/18-end
approx. 1,600 staff

COM
PENSA
TI
ON

FY 3/19 1Q-end

Job duties

2,034 staff（by October, 2018）
2,875 staff expected・Production line・Equipment maintenance・Workplace management,etc.
Requires unique skills

Mainly production line

Career pathYesー

Educationalopportunities

Mainly skill enhancement
education

Mainly basic education（work-specific, safety,etc.）

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

8Turnover Rates (NISSO, Non-consolidated)◆Turnover rate of skilled staff is stable at 1% level◆Overall turnover rate has improved
（%）
76

5.9

5.5
4.9

5

Overall

4.6

43
2
1.0
Skilledstaff

10

FY 3/16

FY 3/17

FY 3/18

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

19年３月期１Q
FY 3/19 1Q
9Account Companies (NISSO, Non-consolidated)◆Existing 4 Groups (auto/electronic components/precision equipment/electricalmachinery): sales with all groups increased year-on-year
In particular, automobiles and electronic components groups increased significantly◆In addition to expanding transactions with existing companies, expansion of market size ofaccount companies by increasing number of new companies◆Increase in sales due to rise in sales per capita in association with increase of skilled staff inaccount companies◆Production conditions of account companies will continue to be strong, and demand for
NISSO is also expected to increase◆New account company group selection is in progress for future business expansion【Account Company Group Sales】（Unit: Million yen）

FY 3/2018 1Q
Amount% of Total

FY 3/2019 1Q
AmountIncrease% Change% of Total

Accounts total(４Groups)

4,575

37.1%

6,107

41.9%

1,532

33.5%

Total sales

12,325100.0%

14,590100.0%

2,264

18.4%

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved10

Educational Achievements（NISSO, Non-consolidated）【1Q Course-specific educational achievements (total # of participants)】
Training course name

Quarterly Total

Skilled staff education

523

Standard skilled staff education

63

Miyagi Prefecture-accredited
vocational training (productionequipment-related courses)

Accredited vocational
training education

Educational content

Manufacturing education

1,173

Basic MONOZUKURI(manufacturing) education, outbound education (MONOZUKURI,safety, etc.)

Safety education

202

Danger・risk simulation education

Basic maintenanceeducation

34

Employee education

149

Other education

Total

22

Basic equipment maintenanceeducation
New graduate/mid-career entry
training, newly appointed chief
education, on-site supervisor
education...
Contracted education from externalsources

2,166
Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved Conducted education for
2,166 participants in 1Q(including 523 skilled staff)
 Skilled staff education
participants are assigned tohigh-unit cost production
sites, including accountcompanies, which leads torise in sales per capita
 Other education is also
actively conducted to improve
employee/staff ability andretention, also in an effort toincrease sales
 NISSO will continue to focus
on education in order toachieve mid-term
management plan goals andfor employee growth11

Educational Achievements（NISSO, Non-consolidated）1Q Topics[Nisso Technical Center Naka-Nihon (Okaya City, Nagano) ]※Opened on May 1, 2018

 Semiconductor manufacturing equipment maintenance Course Period: 1.5 months
 # of participants to date: 3 terms/33 (10 - 15 participants/course) Upon course completion, participants are assigned to work at major semiconductor manufacturers ofaccount companies
 FY 3/2019 Expected # of Nisso Technical Center Naka-Nihon participants: 240

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved12

Recruiting Reinforcements
Yokohama Tsurumi Center 【Scheduled opening: September 2018】

Aggressive recruiting methods
Actively approaching potential candidates (Scout-type)＜Improvement of recruitment capabilities with dedicated teams＞
In order to approach potential job seekers, NISSO is establishing the Yokohama Tsurumi Center, utilizing HR
information databases, and conducting scouting of "required personnel" to meet job seeker needs at their "requiredtiming", to achieve increased recruitment and low-cost hiringWants to work as
an engineer

Wants to transfer to alarge corporation

Wants to work as aregular employee

Wants to work as adispatched staff

Wants to work
locally

Wants a good job ina rural area

Yokohama Tsurumi Center

Okaya Center

Talent Pool Strategy Utilization of internal・external HR data
Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

14

Earnings Forecast for FY 3/2019

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

14

Future Prospects (Market Environment and Competitive Advantages of Nisso Group)Market Environment

Nisso Group’s Competitive Advantages

MarketEnvironment

Automobiles（Parts）
Market expansion due to advances in developmentof EV's and self-driving vehicles
Semiconductors・Electronic Components
Increase in demand for in-vehicle devices, IoT market
expansion, etc.

Recruiting
Environment

Effective opening-to-application ratio of jobs remains at a highlevel ⇒ competition for recruitment is expected to intensify

Promotion of efficient recruiting activities through utilization ofown recruitment websites and big data

Revised Worker
Dispatch Law

Career development support, provision of 8 hours of educationand training opportunities per year, maintenance of stable
work environments

Provision of educational programs including education andtraining at 7 educational facilities nationwide

Revised Labor
Contract Act

Conversion to indefinite-term labor contracts from April 2018 /Adoption of "Termination of Employment Doctrine"

Appointment of skilled staff, establishment of conversion
system to indefinite-term employment

Regulation of workers' human rights protection, health andsafety, environmental conservation, and corporate ethics insupply chains of electronic equipment-related industries. Samestandards are required at dispatching companies

Disaster prevention through extensive health and safety
activities, creation of comfortable work environments

Demand for HR services will continue to increase⇒In order to correspond to intensified job markets and revised
laws/acts, NISSO's expertise and strength as a company willcontinue to be required
Business environments for small-scaled・local dispatchingcompanies have become tougher, as selection of suitabledispatching companies continues

NISSO has continued to respond to changes in surrounding
environments⇒Business environments are favorable for NISSORBA (ex-EICC)（Responsible BusinessAlliance）

Conclusion

Placement of skilled staff into strong automobile (parts) andsemiconductor・electronic components account companies toincrease staffing levels and raise unit prices

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved15

FY 3/2019 Consolidated Earnings Forecast◆Consolidated earnings forecast for FY 3/2019 is unchanged from initial forecast
Regarding Sales

Increase in revenue is expected due to account strategies and increase of skilled staff (# enrolled by FY 3/19-end: 4,000)
Regarding Operating Profit
Although upfront investment in education and recruitment reinforcements, as well as upfront investment in new facilities for otherbusinesses may be suppressing factors, improvement of sales per capita and strengthening of operational frameworks have contributed
to productivity, and profit growth is expected

FY 3/18 Results
Results% of Total

FY 3/19 Forecast
Results% of Total

Year-on-Year
Increase% Change

Net sales

59,208100.0%

65,686100.0%+6,478+10.9%

Operating profit

1,800

3.0%

2,099

3.2％

+299

+16.6%

Ordinary profit

1,781

3.0%

2,144

3.3%

+363

+20.4%

Profit attributable toowners of parent

1,014

1.7%1,376

2.1%+362+35.7%

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved16The forward-looking statements and performance forecasts contained in this document are forecasts determined byNISSO 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 forward-looking statements described due
to changes in various factors.

For future IR-related inquiries
NISSO CORPORATION, IR Management Division
TEL ： 045-777-7630

E-mail ： ir@nisso.co.jp
URL ： https://www.nisso.co.jp/