・The Financial Results Summary for FY 3/2019 1Q and the Earnings Forecast for FY 3/2019
will be explained within these materials.

・The following is the report of the Financial Results Summary for FY 3/2019 1Q.

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・The following is the explanation of Consolidated Financial Results for FY 3/2019 1Q.
Please note that since quarterly consolidated financial statements based on the Financial
Instruments and Exchange were not prepared for FY 3/2018 1Q, the figures that areprovided are for reference purposes.
・Net sales amounted to 15,999 million yen (up 2,091 million yen or 15.0% year on year).
The factors for the increase in revenue were:①With regards to Manufacturing-related HR Services, revenue increased due toan increase in the number of enrolled staff and a rise in sales per capita.
②With regards to Other Businesses, revenue increased due to an increase in thenumber of residents of the nursing care facility "Sweetpea Higashi Totsuka"
which opened on 3/1/2018.
・Gross profit amounted to 2,660 million yen (up 225 million yen or 9.3% year on year).
The factors for the increase in profit were:① With regards to Manufacturing-related HR Services, although there was an increase insales, housing- and education-related expenses increased due to an increase in thenumber of enrolled staff.
② With regards to Other Businesses, although sales increased due to an increase in thenumber of residents of the nursing care facility "Sweetpea Higashi Totsuka", upfront
investment in personnel and operating expenses associated with its opening occurred.
・Operating profit amounted to 372 million yen (down 8 million yen or 2.3% year on year).
The factors for the decrease in profit were:① With regards to Manufacturing-related HR Services, personnel and employee recruitment
expenses associated with the strengthening of business increased.
② With regards to Other Businesses, taxes and various charges/expenses increased due tothe opening of "Sweetpea Higashi Totsuka".
・Ordinary profit amounted to 389 million yen (up 6 million yen or 1.6% year on year).
This was due to a decrease in interest expenses associated with a decrease in borrowings.
・Profit attributable to owners of parent amounted to 242 million yen (down 13 million yen or
5.3% year on year).
This was due to an increase in (corporate) income taxes.

2・The factors contributing to the changes in consolidated operating profit for each businesscompared to the corresponding period of the previous year are as follows:
１．General HR Services Business① With regards to Manufacturing-related HR Services, the number of enrolled staff
increased by 1,422, and sales per capita increased by 27,000 yen compared to thecorresponding period of the previous year. As a result, the operating profit of the General
HR Services Business increased by 69 million yen.
② With regards to Administrative HR Services, since business was withdrawn from thehighly competitive metropolitan area and operations were consolidated in Yokohama,Kanagawa, there was a decrease in the number of employed staff and profits
decreased.
Hereafter, efforts will be made to expand sales mainly in Yokohama, Kanagawa.
２．Other Businesses
With regards to Other Businesses, as a result of the occurrence of upfront investment inpersonnel and operating expenses associated with the opening of the nursing care facility"Sweetpea Higashi Totsuka", profits declined by 65 million yen.
In the future, as the number of tenants increases, profits are expected to improve
gradually.
・As a result of the above, consolidated operating profit amounted to 372 million yen, adecrease in profit of 8 million yen compared to the corresponding period of the previous year.

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・The following is the explanation of NISSO's Non-consolidated Financial Results.
Please note that since quarterly consolidated financial statements based on the Financial
Instruments and Exchange were not prepared for FY 3/2018 1Q, the figures that areprovided are for reference purposes.
・Net sales amounted to 14,590 million yen (up 2,265 million yen or 18.4% year on year).
Based on the strategy of prioritizing the assignment of "skilled staff" to account companies,
which are NISSO's key clients, and as a result of actively investing in human resources
development as well as aiming to improve the skills and the retention rates of manufacturing
staff, there were increases in the number of enrolled staff and sales per capita.
・Gross profit amounted to 2,515 million yen (up 309 million yen or 14% year on year).
In terms of cost of sales, housing- and education-related expenses increased due to anincrease in the number of enrolled staff.
In addition, lump-sum payments to a number of employees occurred.
・Operating profit amounted to 399 million yen (up 62 million yen or 18.5% year on year).
Personnel and employee recruitment expenses associated with the strengthening ofbusiness increased.
・Ordinary profit amounted to 411 million yen (up 79 million yen or 23.9% year on year).
There was a decrease in interest expenses associated with a decrease in borrowings.

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・The following is the explanation of NISSO's non-consolidated net sales by industry.
Please note that since quarterly consolidated financial statements based on the Financial
Instruments and Exchange were not prepared for FY 3/2018 1Q, the figures that areprovided are for reference purposes.
・The above is the sales by industry compared to the corresponding period of the previousyear.
・Electronic devices and automobiles-related (auto body/automobile parts) sales increased
substantially.
・Electronic devices sales increased by 32.2% compared to the corresponding period of theprevious year due to increased demand for smartphones and automotive components.
・Automotive-related sales increased by 20.1% compared to the corresponding period of theprevious year due to steady progress in domestic production.
・Demand centered on electronic devices and automotive-related fields is expected tocontinue increasing in the future.

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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 June 2018 was 13,050.
There were 12,444 staff at the end of the previous fiscal year, and increased by 606 staff in
3 months.
・The factors for the increase were:① Recruiting activities were conducted smoothly.
② The decrease in the number of people leaving employment attributed to the reduction in
the turnover rate.
For reference, the number of enrolled staff at the end of the first quarter of 2017 was11,628, which was an increase of 131 staff from the end of the previous fiscal year.

6・The following is the explanation of NISSO's sales per capita.
・ Although sales per capita increased by 22,000 yen (6.6%) during the period from FY
3/2017 to FY 3/2018,
・The monthly sales per capita for FY 3/2019 1Q amounted to 379 thousand yen, which was aincrease in 1Q of 12,000 yen (3.3%) from the previous fiscal year.
・For reference, the monthly sales per capita in FY 3/2018 1Q was 351 thousand yen, which
was a increase in 1Q of 7,500 yen (2.2%) from the previous fiscal year.
・The factors for the increase were:① Prioritizing the assignment of skilled staff to account companies, which are NISSO's keyclients.
② The rise in unit prices of skilled staff.
・Moving forward, NISSO will continue to promote this strategy and aim to raise sales percapita.

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・The following is the explanation of NISSO's skilled staff.
・The number of skilled staff at FY 3/2019 1Q-end was 2,034 (approximately 1,600 at FY
3/2018-end).
・NISSO is currently promoting their appointment and development, and is expecting to have
2,875 staff by October, as well as aiming for 4,000 staff at the end of the fiscal year.
・The following is the explanation of the differences between skilled and non-skilled staff.
Skilled staff are indefinite-term employees who are restricted by "region" or "industry type".
Skilled staff are on a monthly salary system that is not affected by the number of theirworking days, and they are provided with bonuses and retirement plans.
In addition, they are provided with opportunities for skill enhancement education.
・Skilled staff are able to increase their capabilities in such a stable employment environment,
and as a result, they are able to provide clients with a higher quality of services in a stablemanner.

8・The following is the explanation of NISSO's turnover rates.
・The turnover rate of skilled staff for FY 3/2019 1Q is 1%.
(In FY 3/2018, it was at 1.7%.）
Due to the acquirement of skills while receiving stable income and education, the motivationof employees improved, and the turnover rate declined.
・With the advancement of the workplace environment, such as improved retention andtreatment of skilled staff, NISSO's overall turnover rate for FY 3/2019 1Q is 4.6% (in FY
3/2018 it was at 4.9%), or a decrease of 0.3 points.

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・The following is the explanation of NISSO's account companies.
・By developing skilled staff, who are high-quality human resources and integral to the basic
strategy of NISSO's mid-term management plan, and assigning them to high unit costproduction sites of mainly account companies who are NISSO'S key clients, sales to accountcompanies (4 groups) also increased.
・In addition to expanding the shares in existing companies, NISSO's shares in the accountcompany groups also expanded due to the start of transactions with new factories.
・NISSO is in the process of selecting new account company groups for future businessexpansion.

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・The following is the explanation of NISSO's educational achievements.
・The educational achievement for FY 3/2019 1Q amounts to 2,166 participants.
Of which, 523 participants received skilled staff education, and they were assigned to highunit cost production sites such as account companies, in an effort to expand sales and profits.
・With regards to other education and training, the improvement of individual capabilities, aswell as the improvements of productivity and quality of contracting workplaces, also led to anincrease in sales.
・Hereafter, NISSO will continue to provide educational opportunities for individual skill
enhancement, raise the quality of services, and aim to improve client and employee
satisfaction.

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・The following is the explanation of the operational status of "Nisso Technical Center NakaNihon" (opened on May 1, 2018), the 1Q topics for NISSO's educational achievements.
・At present, 33 participants have completed the maintenance education of semiconductor
manufacturing equipment, and work as maintenance personnel at the major semiconductor
manufacturers of NISSO's account companies.
・Since the production status of semiconductor manufacturers is on an upward trend due tothe advances of self-driving vehicles and the progress of IoT in the future, NISSO expects anincrease in demand from clients for the maintenance of their manufacturing facilities. In orderto satisfy such client demands, NISSO will continue to promote the development ofmaintenance personnel.
・Nisso Technical Center Naka-Nihon also conducts skilled staff education and etc., andexpects 240 participants during the current fiscal year.

12・The following is the explanation of NISSO's efforts toward securing (recruiting) humanresources.
・NISSO is planning to open the Yokohama Tsurumi Center in Tsurumi-ku, Yokohama in
September 2018.
・In addition to passive recruiting methods utilizing free newspapers and web media, byutilizing both internal and external human resources databases, NISSO will incorporate more
active recruiting methods such as conducting the scouting of "required personnel" to meetthe job seeker needs at their "required timing", and will continue to achieve expanded
recruitment and low-cost hiring.

13・The following is the explanation of the Earnings Forecast for FY 3/2019.

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・Regarding future prospects
As for external environment trends①The manufacturing industry, which is NISSO's main client, continues to fare well.
②The circumstances regarding the securing of workers will remain severe due to the rise in
the effective opening-to-application ratio of jobs.
③Corresponding to the Revised Worker Dispatch Law and the Revised Labor Contract Act
will be required.
④High compliance standards, such as those of the RBA (formerly the ElectronicIndustry Citizenship Coalition, or EICC), will be demanded from clients.
・In general, the demand for human resources services in the future will further increase.
However, in order to deal with these situations, NISSO's expertise and strength as acompany will continue to be required, and it is thought that as the business environments forsmall-scaled・local dispatching companies become tougher, the selection of suitabledispatching companies will continue.
・NISSO will continue to respond appropriately to these issues, and aim to expand businessperformance by taking advantage of such changes in the environments.

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・The following is the explanation of the Earnings Forecast for the full year of the current fiscalyear.
①Net sales
NISSO expects an increase in revenue compared to the previous fiscal year due to thepromotion of account company strategies and an increase of skilled staff.
②Operating profit
Although there are investments in education and recruitment reinforcements, as well as
upfront investment in new facilities for other businesses, due to the rise in sales per capita,
the increase in enrolled staff and the reduction of selling, general and administrative
expenses associated with the improvement of operational efficiency, NISSO expects anincrease in profit compared to the previous fiscal year.
・NISSO will not make any changes to the earnings forecast of the mid-term management
plan which was announced on May 30th.

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