Shareholder memo
Fiscal Year

April 1 to March 31 of the following year

Ordinary General
Meetings ofShareholders

Late June each year

Record Dates

Voting rights at the Ordinary General Meeting of Shareholders
March 31 of each year
Year-end dividend
September 30 of each year
Interim dividend

Method of
Public Notices

It will be posted at the following address on NISSO's website:
https://www.nisso.co.jp/en/ir/notice/
However, if electronic public notices cannot be made due toaccidents or other unavoidable reasons, public notices will be
published in the Nihon Keizai Shimbun (Nikkei Newspaper).

Stock Exchange
ListingFirst Section of the Tokyo Stock Exchange(Securities Code 6569)

Shareholder
Registry
Administrator

Mizuho Trust & Banking Co., Ltd.
1-2-1 Yaesu, Chuo-ku, Tokyo Japan

Mailing Address

2-8-4 Izumi, Suginami-ku, Tokyo 168-8507 Japan

Telephoneinquiries

Stock Transfer Agency (Business Planning) Department
Mizuho Trust & Banking Co., Ltd.
TEL. 0120-288-324 (Toll-free, in Japanese only)(9:00～17:00 excluding Saturdays, Sundays and publicholidays)t CharacterOﬃcial Masco“Seizo-kun” and “Peta”
supporting Japanʼs
MONOZUKURITo Our Shareholders

March 31 of each year

April 1, 2020 ~ September 30, 2020
［41st Fiscal Year Interim Report］

Seizokun
Peta"Seizo-kun" is the oﬃcial mascot character of NISSOCORPORATION.He has been active since 2007!
He came from faraway in space to protect the safe andcomfortable workplaces of people who work in factories.
Even today, Seizo-kun and Peta support Japan's
MONOZUKURI.

Securities Code 6569

Founding Philosophy

Nurturing and Bringing Out
the Best in People
We believe in the unlimited potential of people,
will grow together through teaching and learning,
and will expand our circle of trust
while creating a lively workplace.

Business
Introduction

What are NISSO's strengths?

What is the Nisso Group?

In addition to NISSO, which conducts worker dispatching andcontracting for manufacturing, our group companies are engaged
in business in a variety of ﬁelds, including oﬃce work dispatchingand employee placement businesses, nursing care and welfare
businesses, and the employment of people with disabilities.

General Human Resources Business
NISSO CORPORATION
Manufacturing dispatching･
contracting businesses
Conducts business with leading
domestic manufacturers

Nisso Pure Co., Ltd.
Promotes employment ofpeople with disabilities
NISSO CORPORATION's special
purpose subsidiary

Other Businesses

Nisso Brain Co., Ltd.

Nisso Nifty Co., Ltd.

General oﬃce work
dispatching businessBusiness centers around Yokohama

Home・facility nursing
care businesses
Operates 6 facilities in Yokohama

Greetings
Please allow me to express my sincere gratitude for your continued
support of the Nisso Group. I would also like to express my heartfelt
sympathy to those aﬀected by the new coronavirus infections, and to
those who have faced management diﬃculties as a result. In such asocial environment, the Nisso Group believes that it is necessary toconvey our business activities and growth strategies in more detail, andin order to further deepen our communication with all of you, we havepublished this ﬁrst Shareholder Report.
NISSO CORPORATION was founded in 1971 as a pioneer inmanufacturing-related human resources services. Since then, for 50
years, based on our founding philosophy of "Nurturing and Bringing
Out the Best in People", we have focused on "human development",
taking into account the aptitude of each individual, and "workplacecreation", where workers can ﬂourish with a sense of satisfaction, andhave built strong relationships of trust with our client companies.
Today, Japan's industrial world is facing a variety of challenges, including
the transformation of industrial structures through technologies such as
AI, IoT, and 5G, productivity reforms in preparation for a declining
workforce, and the threat of infectious diseases and natural disasters
that are expanding worldwide. We will take on these social issues
together with our client companies, contribute to solving them fromthe aspect of human development, and aim to enhance our corporate
value by realizing the growth of the working people and the growth ofindustry together.
We look forward to your continued support and encouragement in
the future.

FY 3/2020 Sales by Segment

General Human Resources Services Business, 96.3％

72,178 Million yen

Other Businesses, 3.7％

2,796 Million yen

In order to enhance the skills and techniques necessary in MONOZUKURI(manufacturing) workplaces in a practical manner, we are actively
What are NISSO's strengths?
engaged in training using actual equipment and machines such as
semiconductor manufacturing equipment and automobile assembly
tools. As a foundation for supporting all of these educational systems, we have established education・training facilities andvarious facilities and tools in 8 locations nationwide. By utilizing these facilities to develop skilled human resources, we areable to aim for a wide range of career development based on the aptitudes and hopes of the working people. As a result,
employees become established, leading to the assignment of high-added value human resources in line with client needs.
We are also working on the development of human resources in more advanced areas such as equipment maintenance,
aiming to provide higher quality services.

Ryuichi Shimizu

1

Chairman, President, CEO & Representative Director

2

Presidentʼs
Message
Dividends per share/Consolidated payout ratio

Consolidated Forecast

We will respond to the needsof human resources
utilization associated withthe recovery of domestic andoverseas demand with highly
skilled human resources
unique to the Nisso Group.

Previous forecast（A）
Present forecast（B）
Change（B - A）% Change(Reference)Previous FY results(FY 3/2020)

Market Environment andBusiness Performance Report

3

The domestic economy during the consolidated
cumulative second quarter of FY 3/2021 was greatly
aﬀected by the spread of the new coronavirus (COVID-19)
infections.
In the General Human Resources Services Business, withregard to the core manufacturing-related humanresources services, in the ﬁrst quarter, production lines ofclient manufacturers were partially suspended, closed,
and operational adjustments were made due to theimpact of the drop in demand as a result of the state of
emergency declaration and the spread of infections
worldwide. In the second quarter, there were signs ofrecovery in automobiles-related production, andproduction of electronic components・devices remained ﬂatdue to increased IT demand as a result of 5G and changes
in work-styles. Although we have focused on protecting
the employment of manufacturing staﬀ, the number ofenrolled staﬀ at the end of September 2020 decreased by
2,246 compared to the end of the previous ﬁscal year due
to the decline in the need to utilize external humanresources.
In such an environment, NISSO has developed a strategy
to focus on assigning "skilled staﬀ", who are indeﬁnite-term employees, to Account Companies, who arepositioned as important clients, while developing humanresources by utilizing our own educational facilities. As aresult, the General Human Resources Services Business
reported net sales of 31,515 million yen (down 11.1%
year-on-year), and operating proﬁt of 771 million yen(down 31.5% year-on-year).
In the nursing care business operated by Nisso Nifty Co.,
Ltd., a group company, eﬀorts were made to improve thequality of services and to increase the number of residents
at the "Sweetpea" nursing care facilities (6 locations in
Yokohama, Kanagawa). However, although the number of
new residents increased due to the spread of infections,personnel and operating expenses increased, and thebusiness performance of Other Businesses resulted in net
sales of 1,461 million yen (up 6.7% year-on-year), andoperating loss was 39 million yen (which was an operating
proﬁt of 2 million yen in the corresponding period of theprevious ﬁscal year).
As a result, net sales for the consolidated cumulative
second quarter amounted to 32,972 million yen (down
10.4% year-on-year). Operating proﬁt was 731 million
yen (down 35.2% year-on-year), ordinary proﬁt was 989
million yen (down 14.3% year-on-year), and proﬁt
attributable to owners of parent amounted to 596 million
yen (down 24.0% year-on-year).

■ Dividends per share

Revision of Full-year Consolidated Forecast for FY 3/2021(April 1, 2020 - March 31, 2021)
Net sales

OperatingproﬁtOrdinary
proﬁt

Proﬁt
attributable toowners ofparent

Net income
per share

Million yen

Million yen

Million yen

Million yen

1,050

Yen

31.06

67,000

1,800

2,100

1,300

38.43

3,000

300

350

250

－

4.7

20.0

20.0

23.8

－

74,966

3,061

3,149

2,033

60.51

64,000

1,500

1,750

Consolidated payout ratio

41.3%
30.0%

30.0%

25.00
yen

18.50
yen

(Forecast)

11.53

yen
(Forecast)
FY 3/2019

FY 3/2020

FY 3/2021

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 amountafter the stock split.

Revisions of Full-year
Consolidated Forecast andDividend Forecast for FY 3/2021

Approach to
Redistribution of Proﬁts

In the "Notice of Full-year Consolidated Forecast andDividend Forecast for the Fiscal Year Ending March 31,2021" announced on August 7, 2020, it was assumed
that economic activity will gradually resume and that thebusiness environment of the Nisso Group will moderately
recover from the impact of the spread of COVID-19
infections from the second quarter onwards, and the
Full-year Consolidated Forecast was calculated.
On the other hand, with regard to manufacturing-related
human resources services, the Nisso Group's corebusiness, recovery has taken place earlier than originallyplanned, including the improvement of net sales per
capita due to an increase in operations of manufacturing
staﬀ under the resumption of production activities atclient manufacturers as a result of the lifting of the stateof emergency declaration. In addition, in the automobiles-related industry, partial suspensions of productionlines and operational adjustments were improved due tothe recovery of domestic and overseas demand, and in
the electronic devices-related industry, IT demand due to
5G and changes in work-styles remained ﬁrm. As signs ofrecovery are beginning to appear, we have revised ourFull-year Consolidated Forecast and Dividend Forecast.

NISSO considers the redistribution of proﬁts toshareholders and the enhancement of corporate value as
key management issues, taking into consideration thebalance between securing funds for growth investments
and strengthening the corporate structure that can
respond to changes in the business environment. In
addition, by setting the consolidated dividend payout ratioof 30% as a general standard, NISSO's basic policy is tocontinue to steadily redistribute proﬁts to all of ourshareholders.
Furthermore, although NISSO considers the year-end
dividends as a general principle, the Articles ofIncorporation stipulate that it is possible to distributedividends of surplus twice a year as interim dividends andyear-end dividends in order to enhance the redistributionof proﬁts to shareholders.
As the decision-making body, the Board of Directors isdetermined to make it possible to ﬂexibly carry out thepayment of interim dividends and year-end dividends
while taking into consideration business performancetrends and other factors.
4

NISSO's Past
and Future
Introducing the history
of NISSO, from our founding
in 1971 to the present, andour future growth strategies.

2018

2015

Feature“Excellent Dispatching
Business Operator”
certiﬁcation obtainment

2011

1980

Listed on the First Section of
the Tokyo Stock Exchange

Received certiﬁcation as an excellent business
operator in the dispatching business"Superior Manufacturing
Contractor" certiﬁcation
obtainment

Received certiﬁcation as a superior business
operator in the contracting business2004

Established NISSO CORPORATION
Created a new market by setting up productmanufacturing contracting on premises ofmanufacturer factories

Diversity

Business development
centered on the
manufacturing dispatching
Business

Japan achieved high-levels of growth in the 1970s, andsupplying high-quality industrial products was the objectiveof each and every company. It was during this era that our
founder embraced the desire for his company "to be
entrusted with Japan's (日本) entire (総) factory (工場)
production operations (生産業務)" and named his company"NISSO" (or Nisso Kosan, 日総工産 in Japanese).

Established Nisso Koei Co., Ltd., the predecessor of NISSO

5

Our founder, from his experience of working as a welding technician for shipbuilding, originally launched
the business of welding work contracting.
The work of "contracting", which was created by the accumulation of our founder's personally-chosen
power of professionals, and which produces results within the organization that he is responsible for, has
led to the current manufacturing contracting and dispatching businesses.

AI

Growth Strategy

High-added value ofhuman resources

Started manufacturing dispatching businessin response to the lifting of the ban on
dispatching to manufacturing
operations

Utilizing our own unique training expertise,
we will increase the added value of "people", andOrigin of Company Name

1971Foundation

The Nisso Group has comeface-to-face with "people"
for 50 years
Aiming to become a
100-year company, we willcontinue to comeface-to-face with “people”,
and work to enhance
human capitalCore Competence＋

continue to create "workplaces"
where they can ﬂourish
Well-being

FutureProduction
technology

Skilled Staﬀ・Accounts

Human resources
development capabilities

Past

Key Clients6Performance
Highlights
Consolidated
Net sales (Million yen)

■ 2Q YTD

69,161

Trend of Net Sales Composition
Ratios by Industry (NISSO)（%）

Operating proﬁt (Million yen)
■ 2Q YTD

Full-year

74,966Full-year

2,869

67,000(Forecast)

FY 3/2019

36,7971,800

32,972

FY 3/2020

Full-year

2,895
14.2
930
FY 3/2019■ 2Q YTD

3,149

2,100

14.5

7

50.2

2,053
20.7

(Forecast)(Forecast)

989

588

FY 3/2020

FY 3/2021

FY 3/2019

52.9

56.2

22,494 20,770

FY 3/20192Q-endFY 3/2020end

FY 3/2020
2Q-end2,033

9.5

20,115 21,019 20,011

FY 3/2019end

FY 3/2020

731
FY 3/2021

FY 3/2021
2Q-end

17.7
16.1
30.0

15.6
13.8
25.6

15.4
13.3
30.2

36.3

45.0

41.2

FY 3/2020
2Q

FY 3/2021
2Q

FY 3/2019
2Q

18.1

1,300

785

10.7 (Forecast)596

FY 3/2020

13,546 14,042 14,639

14,770FY 3/2019
2Q

FY 3/2020

FY 3/2019

FY 3/2020
2Q

12,524FY 3/2021
2Q

Trend of Net Sales per Capita(Monthly average conversion) (Thousand yen)

Trend of Turnover Rates（%）

Full-year

1,154

53.4

1,128

Proﬁt attributable to owners of parent (Million yen)
／ROE （%）

Total assets (Million yen)／Equity ratio （%）

47.6

FY 3/2019

FY 3/2021

Ordinary proﬁt (Million yen)／ROA （%）■ 2Q YTD

915

Trend of Number of Enrolled Staﬀ (# of staﬀ)■ Automobiles ■ Elec. Devices ■ Precision・Elec. Machinery ■ Other

3,061(Forecast)

32,783

Non-consolidated(NISSO)

4.6

4.6

4.6

4.7

FY 3/2019
2Q

FY 3/2019

FY 3/2020
2Q

FY 3/2020

4.7

381

391

394

397

FY 3/2019
2Q

FY 3/2019

FY 3/2020
2Q

FY 3/2020

373(Forecast)

FY 3/2021

Glossary
What is ROE?
Abbreviation for Return on Equity. It is one of the
proﬁtability indicators that shows how much proﬁt
a company has made in relation to the invested
capital.
NISSO's ROE is calculated by using the following
formula:Return on Equity = Proﬁt ÷ Average equity capital× 100

FY 3/2021
2Q

Ratio of Account Company Groups
Net Sales to NISSO Total（%）

43.3

44.4

48.0

FY 3/2019

FY 3/2020

FY 3/2021
2Q

FY 3/2021
2Q

Glossary
What are Account Companies?

A general term for corporate groups with high-added
value products who have a deep understanding of
NISSO, and have established a relationship of mutual
trust with our company in a long-standing history of
conducting transactions.
By leveraging our strong network of contacts withAccount Companies, NISSO is able to make uniqueproposals to the management of our clients. In
addition, since clients share their mid- to long-term
production plans with us, it has led to ourimplementation of planned staﬃng.

8

Corporate
Outline/Statusof Shares

TOPICS
Capital and Business Alliance with Cross Compass Ltd.

Corporate Outline

Key Initiatives

・Sales expansion/promotion of services utilizing bothclient bases and sales networks
・Joint development of platforms for the manufacturingindustry・Human resources exchanges for the purpose of
training/development
Factories

Signing Ceremony

NISSO has concluded a capital alliance agreement and abusiness alliance agreement with Cross Compass Ltd. on
September 17, 2020.
By leveraging the strengths and expertise of bothcompanies, NISSO and Cross Compass will aim to createhigh-added value services for the manufacturing industry
referred to as “Worksite Solutions by Humans and AI” withthe aim of improving productivity and quality at
manufacturing sites through digitalization, and to further
enhance corporate value and create new services toachieve synergy.

Worksite solutions
by Humans and AI(As of September 30, 2020)

Challenges・needs ofmanufacturing worksites

Extensive knowledge andhuman resources atmanufacturing worksites

AI technology anddevelopment capabilities

NISSO

Cross Compass

Trade NameNISSO CORPORATION(Japanese Co. Name 日総工産株式会社)

Securities Code 6569
Date Founded

February 3, 1971

Headquarters

Nisso Kosan (NISSO) Shin Yokohama Bldg.,
1-4-1 Shin Yokohama, Kohoku-ku,
Yokohama, Kanagawa 222-0033

URL

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

Number of
Employees(Consolidated)

2,038

2,012 Million yen

Main Business
Activities

Manufacturing-related Human Resources
Services(Manufacturing Dispatching, Manufacturing
Contracting, Employment Placement, etc.)
Chairman, President, CEO & Representative Director
Ryuichi Shimizu
Senior Managing Director

The CSR Report 2020 was released on NISSO's website in October 2020.
This report sets concrete plans and targets based on stakeholder engagement.
Going forward, we will continue to contribute to the resolution of social issues through ourbusiness, engage in corporate activities with the aim of achieving sustainable growth, andstrive to enhance corporate value.
Key Initiatives

・CSR activities for the realization of a sustainable society
・Implementation of the "Sustainable Development Goals" that SDGs strive for・Promotion of human development in line with the new9Managing Director (External)
Managing Director (External)

102,400,000 shares

Total number of outstanding shares

34,201,200 shares

Number of shareholders

4,494

Status of Major Shareholders
Number of
Shares Held(shares)Name / Company Name

Toshiyasu Udagawa

Percentage (%)

12,604,000
2,216,800

37.25

The Master Trust Bank of Japan, Ltd.
(Trust Account)

2,147,100

6.35

Custody Bank of Japan, Ltd.
(Trust Account)

2,026,100

5.99

The Nomura Trust and Banking Co., Ltd.
(Investment Trust Account)

1,043,600

3.08

974,000

2.88

820,960

2.43

816,900

2.41

672,600

1.99

520,200

1.54

Tadao Shimizu

CapitalCorporate
OﬃcersTotal number of authorized shares

NS Holdings Co., Ltd.

Manufacturing
Staﬀ・Dispatched 13,251 (Avg. during FY)
Staﬀ

Managing Director

Nisso Group CSR Report 2020

Status of Shares

Chikako Shimizu
BNY GCM CLIENT ACCOUNTJPRD AC ISG(FE-AC)
Custody Bank of Japan, Ltd.
(Trust Account 9)
J.P. MORGAN SECURITIES PLC
FOR AND ON BEHALF OF ITS
CLIENTS JPMSP RE CLIENTASSETS-SEGR ACCTNOMURA PB NOMINEESLIMITED OMNIBUSMARGIN(CASHPB)

6.55

Shinichi Matsuo※ The percentage ﬁgures listed above are rounded oﬀ to the second decimal point.

Shin Monzawa

Status of breakdown by shareholder-type(Percentage, No. of Shares Held)

Miki Ohno

Full-time Audit & Supervisory Board Member (External)
Akira Ishida
Audit & Supervisory Board Member (External)
Ryuta Hasegawa
Audit & Supervisory Board Member (External)
Hideo Sakano

Treasury shares

Financial instruments ﬁrms

0.51% (173,321)

1.07 % (366,381)
Foreign corporations

15.20 %

(5,199,902)

Financial institutions

20.29 %

Total

34,201,200
sharesOther corporations

37.19 %

(12,720,904)(6,937,900)

Individuals and other25.74 % (8,802,792)
10