Securities Code 6569

To Our Shareholders
43rd Fiscal Year Interim Report

April 1, 2022 ~ September 30, 2022

CONTENTS

1Presidentʼs Message, Medium-term Management Plan

2Topics

3

Consolidated Performance Highlights
Greetings
I would like to express my sincere gratitude to all of our shareholders for your continued support of theNisso Group.
Since our founding, the Nisso Group has been committed to providing human resource services that support
the Japanese MONOZUKURI (manufacturing) industry with the philosophy of "Nurturing and Bringing Out
the Best in People". The times are now entering Society 5.0, where digital technology innovations are being
used to solve various social problems. The Nisso Group aims to transform itself significantly and become ahuman resources company that meets the needs of the times.
I hereby present the Nisso Group's 43rd Interim Report (from April 1, 2022 to September 30, 2022).

Representative Director, President & CEO Ryuichi Shimizu

See inside for details

Presidentʼs Message― Formulation of a New Medium-term Management Plan ―We have reexamined our management plans inresponse to changes in the business environment.
We will aim for greater growth based on our businessportfolio strategy.

Financial Results for FY 3/2023 2Q
In 2Q, the number of enrolled staff increased steadily
to 15,730 (non-consolidated・up 785 from the end of
the previous fiscal year), partly due to the strong humanresources needs of our clients and the strengthening ofpromotions such as TV commercials. In the automobilesrelated industry, operations improved moderately, andnet sales in the automobiles-related industry amounted
to 16,981 million yen (up 15.9% year-on-year). In theelectronic devices-related industry, although demand forcomponents related to PCs and communications
equipment decreased, production remained highdue to demand for semiconductors, and net sales
in the electronic devices-related industry were
12,285 million yen (up 17.2% year-on-year).
As a result, the Nisso Group's net sales amounted
to 43,162 million yen (up 17.6% year-on-year).
On the other hand, in terms of profit, although
there was an increase in the number of enrolled
staff, operating profit was 510 million yen (down
38.1% year-on-year), due in part to the impact ofa decrease in operating hours as a result of parts
shortages, etc.
Growth rate (CAGR Targets) 14.1%

Review of the Medium-term Management Plan

Achievement ofGrowth rate (CAGR Results) 7.0%
Unit: Billion yen

Prospect88.6 B

Result77.5 B

Cons. Net sales

100.0 B

59.2 B

Convergence ofthe effects of COVID-19and parts shortages

Effects of COVID-19 and parts shortages

Opportunity loss due toreduced operations
ResultCons. Operating profit

2.0 B

1.8 B

（2.7％）（3.0％）

FY 3/2018

FY 3/2019

FY 3/2020

Results

FY 3/2021

FY 3/2022

115.0 B

Expecting a full recovery
in operations

Prospect

2.7 B（3.0％）

FY 3/2023

FY 3/2024

FY 3/2025

Medium-term Management Plan Period(After rolling)The Medium-term Management Plan announced inMay 2021 was a 3-year plan starting from FY 3/2022,
but although net sales for FY 3/2022 exceeded theplan, operating profit fell short of the initial plan. In
response to this, NISSO reorganized and reviewed ourbusiness environment and market opportunities, andin August 2022, we announced a new Medium-termManagement Plan centered on business portfolio
strategies and infrastructure strengthening strategies.
We will push back our management targets by 1 year
and will work to achieve sales of 115 billion yen for
FY 3/2025.

Business Portfolio Strategy
Considering the future business environment andmarket opportunities, we believe that although thelabor force population will decrease, this will accelerate
human resources mobility and expand opportunities in
the human resources market. Regarding our businessportfolio, we will take on the challenge of expanding
our business from our current core "efficiency area" tothe next-generation core "focus area", where we willfurther enhance our business to develop humanresources, and increase profits over the medium term.
In anticipation of future market trends, we believe thatdeveloping specialized human resources in growthareas will lead to our next stage of growth.

Provision of Services that Respond to Changing
MONOZUKURI (Manufacturing)
The manufacturing industry has undergone majorchanges since the days of simply making hardware andselling it to customers. Under such circumstances, ourbusiness model must also be transformed. In addition
to providing tangible things as we have in the past, wewill take on the challenge of a model that increases
customer/client satisfaction through services andexperience. By doing so, we hope to earn the trust ofour clients even more.

Business Portfolio Strategy

High

Future potential

Focus area (next core)

Sow seeds to create
new businesses

Develop into thenext core business■HR Tech■Healthcare/HealthTech■Care Tech

Market growth potential

Background of the Announcement of the New
Medium-term Management Plan

■AI-related services■HR Tech■Healthcare/HealthTech■Technical services
by foreign nationalsTransition(dispatching, SES, etc.)■Care Tech
Growth■Engineer dispatchingTransition

Investment

Development

Conversion

Rebuild

Efficiency area (current core)Rebuild services,develop new menus

Improve efficiency andstrengthen"earning power"■Facility nursing care
■Manufacturing dis p atching/business,manufacturing contracting
Transition
home-visit care, etc.
(high-skill areas)■Administrative dispatching ,■Human resources s ervices
BPO, employment
for seniors
placement, etc.
■Manufacturing dispatching /manufacturing contracting■Skilled services
by foreign nationals(dispatching, contracting)

Low

NISSO's profitability

High

Based on these strategies, we will work to strengthen
our business foundation, focusing on 4 key areas:practice of human capital management, response tohuman resources mobility, realization of business
transformation by digitizing business operations, andstrengthening of governance. We hope that you will
look forward to the further growth of the Nisso Group.

WEB

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

Topics
T OPIC S

Business
Alliance

AugustCapital and Business Alliance with DOCTORS Co., Ltd.

In order to develop new businesses in the medical DX area for the era ofonline medicine, we have concluded a basic agreement for a businessalliance with DOCTORS Co., Ltd., including capital participation. With themission of "supporting the construction, distribution, and sales of new
digital healthcare services in the DX era" through the power of doctors x
IT, DOCTORS Co., Ltd. is building and promoting a "Digital Health
Platform" from the perspective of on-site medical professionals together
with medical specialists (more than 600 doctors). Leveraging theCstrengths and expertise of both companies, we aim to develop new“Medical, Human, and Labor” services that utilize digital health.

T OPIC S
Hu m a nResources
D e v e l o pm e n t

Examples of the business alliance■ Development of new “Medical, Human, and Labor”

services in the Healthcare/ HealthTech field■ Development of new services centered on thedevelopment of medical DX human resources■ Other matters discussed by both parties thatwould contribute to the enhancement of corporate
value

Announced Plans to Open a Training
Center in Kumamoto

October

NISSO has 8 training centers, including the Nisso Technical Center
Higashi-Nihon (Kurihara City, Miyagi) and Naka-Nihon (Okaya City,Nagano), which introduce actual semiconductor manufacturing equipment
and implement various educational programs to develop human resources
who can maintain equipment in areas such as semiconductors, whereneeds are expanding.
The training facility in Kumamoto, which is scheduled to be the 9th inJapan, plans to operate training equipment and training programs thatfurther enhance the expertise cultivated at the existing training facilities,
and will contribute to the shortage of human resources at semiconductor
manufacturers in terms of both quality and speed of human resources
development.

T OPIC S
Information
Disclosure

NovemberPublished the Nisso Group Sustainability Report 2022

NISSO has been publishing the "CSR Report" since 2020. In response to the growing demand for
information disclosure on sustainability, including society and the environment, we have changed thename of the report to the "Sustainability Report" this year to enrich information related to Nisso Group's
approach to the responsibilities we should fulfill as a member of society, and our activities. Goingforward, we will continue to communicate the corporate activities of the Nisso Group through theSustainability Report in order to deepen dialogue with our stakeholders, and strive to enhance corporate
value.
WEB

https://www.nisso.co.jp/en/ir/esg/esg̲13.html

Consolidated Performance Highlights
Profit attributable to owners of parent (Million yen)
Operating profit (Million yen) ■ 2Q YTD Full-year／ Operating profit margin（%） 2Q YTD Full-year ／ROE ※（%）

Net sales (Million yen)
■ 2Q YTD

Full-year

88,60077,5492.2

68,213

3.0

2.7
2.2

(Forecast)

12.9

1.2

1,592

1,696

1,800

(Forecast)

2,087

36,694FY 3/2022

13.0

2,700596

FY 3/2021

Full-year(Forecast)

2,599

43,16232,972■ 2Q YTD

3.8(Forecast)

FY 3/2023

731

824

FY 3/2021

FY 3/2022

587
347

510

FY 3/2021

FY 3/2023

FY 3/2022

FY 3/2023

https://www.nisso.co.jp/en/ir/ﬁnance/ﬁnance̲03.html

WEB

Shareholder Returns
Dividends

Shareholder
Benefits

16

FY 3/2023

yenNISSO considers the redistribution of profits to shareholders and theenhancement of corporate value as key management issues. In addition,
by setting the consolidated dividend payout ratio of 30% or more as ageneral standard, NISSO's basic policy is to continue to steadily(Forecast )redistribute profits to all of our shareholders.

Presentation of benefit
points from the NISSO
Premium Benefits ClubIn addition to expressing our gratitude to our shareholders for their continued support, we have establisheda Shareholder Benefits Program with the aim of enhancing the attractiveness of investing in our shares andincreasing the number of shareholders who will hold our shares over the medium to long term.

■

The accumulated points can be exchanged for more than 5,000
different complimentary products.

■

Presentation conditions require one to be listed as a shareholder
holding 300 shares or more in the register of shareholders at theend of March every year from 2022.

Corporate Outline (As of September 30, 2022)
Trade NameNISSO CORPORATION(Japanese Co. Name 日総工産株式会社)

Listed Exchange

Prime Market, Tokyo Stock Exchange(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

Status of Shares (As of September 30, 2022)
Total number ofauthorized shares

102,400,000 shares

Total number ofoutstanding shares

34,330,800 shares

Number of shareholders

4,784

Status of breakdown by shareholder-type

Financial instruments firms

Number of Employees(Consolidated)

2,201

Foreign corporations
12.79 %（4,391,874）

Manufacturing Staff・Dispatched Staff

16,221 (Avg. during FY)

Financial institutions

Capital2,016 Million yen

Main BusinessActivities

Manufacturing-related Human Resources Services(Manufacturing Dispatching, Manufacturing
Contracting, Employment Placement, etc.)

Corporate Officers

Representative Director, President & CEO
Ryuichi Shimizu

Managing Director (External)

Shin Monzawa
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

0.96 %（328,480 ）Total

34,330,800
shares20.06 %（6,888,200）

Managing Director (External)

Treasury shares

1.99 %（682,269 ）Other corporations

40.78%（14,001,523 ）Individuals and other
23.41 %（8,038,454）

Shareholder memo
Shareholder Registry
Administrator

Mizuho Trust & Banking Co., Ltd.
1-3-3 Marunouchi, Chiyoda-ku, Tokyo, Japan

Mailing Address

Mizuho Trust & Banking Co., Ltd.
Stock Transfer Agency (Business Planning) Department
2-8-4 Izumi, Suginami-ku, Tokyo 168-8507 Japan

Telephone inquiries

TEL. 0120-288-324 (Toll-free, in Japanese only)(9:00～17:00 excluding Saturdays, Sundays andpublic holidays)

NISSO's brand movie "Dream, Together"
won the Award for Design Excellence at the Eibunren Awards 2022
We are pleased to announce that NISSO's brand movie won the Award for Design Excellence at theEibunren Awards 2022 (JAAP International Short Film Festival) sponsored by the Japan Association of
Audiovisual Producers, Inc. 『Dream, Together』 is a short film that depicts the deepening of bonds
from the perspective of dispatched staff through their daily communication with labor managers.
Available on NISSO's YouTube channel (in Japanese only).
WEB

https://www.youtube.com/watch?v=p3Yi6F3zi-4