Financial Results Briefing Materials
for the First Six Months of FY 2019
November 8, 2018
NISSO CORPORATION

TSE1 Code: 6569

1

Financial Results Summary
for the First Six Months of FY 3/2019

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved1

FY 3/2019 2Q Consolidated Financial Results Highlights (P/L)◆NISSO: Promotion of skilled staff assignment to account companies, steady growth of financial
results◆Nisso Nifty: Although sales increased due to increase in residents at Sweetpea Higashi Totsuka,occurrence of upfront investment continued（Unit: Million yen）
FY 3/2018 2Q
Results

FY 3/2019 2Q% of Total

Results

Year-on-Year% of Total

Increase(Decrease)% ChangeNet sales

28,073100.0% 32,783

100.0%

4,709

16.8%

Gross profit

4,864

17.3%

5,508

16.8%

643

13.2%

SG&A expenses

4,178

14.9%

4,593

14.0%

414

9.9%

Operating profit

686

2.4%

915

2.8%

229

33.4%

Ordinary profit

674

2.4%

930

2.8%

256

38.0%

Profit attributableto owners of parent

445

1.6%

588

1.8%

142

32.0%

（Note）Quarterly consolidated financial statements based on the Financial Instruments and Exchange Act were not preparedfor FY 3/2018 2Q.
Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

2FY 3/2019 2Q Quarterly Financial Results Trend【Sales】【Operating Profit】（Million yen）

20,000（Million yen）

800
700

15,000600
500

10,000

400
300

5,000

200
100

00

１Q

２Q

３Q

４Q

【FY 3/2018】

１Q

２Q

３Q

４Q

【FY 3/2019】

１Q

２Q

３Q

４Q

【FY 3/2018】

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

１Q

２Q

３Q

４Q

【FY 3/2019】
3FY 3/2019 2Q Consolidated Financial Results Highlights（B/S）
【Quarterly Consolidated Balance Sheet】（Unit: Million yen, %）FY 3/18-end
AmountCurrent assets
Cash and deposits

FY 3/19-end% of Total Amount% of Total

Increase(Decrease)12,753
5,283

64.2
26.6

12,939
5,117

64.3
25.4

186
(165)

Non-current assets
Property, plant and equipment

6,791
7,117
4,994

34.2
35.8
25.1

7,153
7,176
5,015

35.6
35.7
24.9

362
59
21

Intangible assets
Investments and other assets
Total assets

380
1,742
19,870

1.9
8.8
100.0

356
1,804
20,1151.8
9.0
100.0

(23)
62
245

Current liabilities
Accrued expenses

8,206
4,331

41.3
21.8

8,183
4,451

40.7
22.1

(23)
120

Income taxes payableNon-current liabilities
Long-term loans payable

632
2,345
1,883

3.2
11.8
9.5

458
2,350
1,832

2.3
11.7
9.1

(174)
4(51)

Total liabilities
Shareholders' equity
Total net assets

10,552
9,130
9,317

53.1
45.9
46.9

10,533
9,386
9,582

52.4
46.7
47.6

(18)
255
264

Total liabilities and net assets

19,870100.0

20,115100.0

245Notes and accounts receivable - trade①Increase due to businessexpansion"Notes and accounts receivable trade" increased due to an increasein net sales, and "accruedexpenses" increased due topersonnel expenses related todispatched staff, etc.
②OverallIn addition to a decrease inliabilities due to tax and otherscheduled payments, "cash anddeposits" decreased due todividends. However, current assets
increased due to an increase in"notes and accounts receivable trade" accompanying businessexpansion. Furthermore, since noncurrent assets increased due tocapital investment, total assets alsoincreased.
Shareholders' equity and total netassets increased due to quarterly
profit.

（Note）Quarterly consolidated financial statements based on the Financial Instruments and Exchange Act were not preparedfor FY 3/2018 2Q.
Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

4

FY 3/2019 2Q Consolidated Financial Results Highlights（C/F)
【Quarterly Consolidated Statement of Cash Flows】（Unit: Million yen）

First 6months of
FY 3/18First 6months ofFY 3/19

AmountAmountIncrease(Decrease)

Cash flows from operating activities

1,227

351

(875)

Cash flows from investing activities

(41)

(93)

(51)

Cash flows from financing activities(1,061)

(424)

637

Net increase (decrease) in cash andcash equivalents

123

(165)

(289)

Cash and cash equivalents at
beginning of period

3,369

5,283

1,914

Cash and cash equivalents at
end of period

3,493

5,117

1,624

①Cash flows from operating activities
While profit before income taxes andproceeds from increases in allowances, etc.
increased YOY, due to expenditures from anincrease in notes and accounts receivabletrade accompanying business expansion, andincreases in tax payments from increases incapital stock from the previous fiscal year, theamount of revenue decreased YOY, andamounted to 351 million yen②Cash flows from investing activities
Expenditures increased YOY mainly due toinvestments related to training facilities, andamounted to 93 million yen③Cash flows from financing activities
While cash dividends paid increased YOY,in addition to proceeds from long-term loans
payable, due to decreases in expenditures forrepayments of long- and short-term loans
payable, the amount of expenditures
decreased YOY, and amounted to 424 millionyen（Note）Quarterly consolidated financial statements based on the Financial Instruments and Exchange Act were not preparedfor FY 3/2018 2Q.
Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

5Other Businesses

Business Revenue【Other Businesses Results】（Unit: Million yen）

FY 3/18

FY 3/19

FY 3/18

FY 3/19

Full year

Full year
Forecast

1Q

2Q

2nd Half

1Q

2Q

2nd Half
Forecast

Net sales

568

574

1,130587

620

1,299

2,273

2,508

Expenses584

589

1,200669685

1,385

2,374

2,739

Operatingprofit (loss)

(16)

(14)

(70)

(81)

(64)

(85)

(101)

(231)

◆Sales increased due to increase in residents at Sweetpea Higashi Totsuka◆Upfront investment expenses such as personnel expenses, operation costs, etc., associated with theopening of Sweetpea Higashi Totsuka continue to occur◆Occupancy is progressing almost as planned, and operating loss of approx. 200 million yen isexpected for the full year
◆Residents are moving in according to plans《Fee-based senior-care nursing home # of residents as of 9/2018-end》
Bldg. #1 - 5# of residents: 292 occupancy rate: 94.8% (capacity: 308)
Bldg. #6 (Sweetpea Higashi Totsuka) # of residents: 21 occupancy rate: 22.3% (capacity: 94)
Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

6

FY 3/2019 2Q Non-consolidated Financial Results Highlights◆Amidcontinued strong demand from automobiles and electronic components industries, sales and◆アカウント企業への技能社員投入により売上及び利益増加
profits increased due to placement of skilled staff to high-unit cost clients, mainly account companies◆提供サービスの質と就業意欲の向上のため、人材育成への投資を積極的に行う◆Although gross profit margin decreased YOY due to upfront costs such as housing and education（教育施設開所、受講者増加）
accompanying
staff increases, due to efforts to control increases in SG&A expenses, operating profit
margin increased YOY(Unit: Million yen)
FY 3/2018 2Q
Results

FY 3/2019 2Q% of Total

Results

Year-on-Year% of Total

Increase% ChangeNet sales

24,983100.0%

29,969100.0% 4,985

20.0%

Gross profit

4,437

17.8%

5,228

17.4%

790

17.8%

SG&A expenses

3,78715.2%

4,251

14.2%

463

12.2%

Operating profit

650

2.6%

977

3.3%

326

50.3%

Ordinary profit

627

2.5%

983

3.3%

356

56.8%

Profit

411

1.6%

629

2.1%

217

52.8%

（Note）Quarterly consolidated financial statements based on the Financial Instruments and Exchange Act were not preparedfor FY 3/2018 2Q.
Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

7

FY 3/2019 2Q Sales by Industry (NISSO, Non-consolidated)【 Trend of Sales Composition Ratios 】（Unit: Million yen）

30,00025,00020,00015,00010,0005,000

Other+3.5％

5,298（17.7％）
Other

Precision · Electrical machinery

5,120（20.5%）

4,829 （16.1％）+13.5％

Precision · Electrical machinery

4,255（17.0％）

Electronic devices

Electronic devices

8,976 （30.0％）+33.6％

6,718（26.9％）

Automobiles

Automobiles+22.2％

8,889（35.6％）

10,863（36.2％）

FY 3/18 2Q

FY 3/19 2Q0※（ ）= % of total sales※ □ = % of Year-on-Year growth Strong growth in client
markets, including
automobiles and electronic
device industries where
NISSO has high market
shares Automobiles:
Domestic productionremained strong
 Electronic devices:
Continued increase indemand for smartphones,automotive electronic andsemiconductor components（Note）Quarterly consolidated financial statements based on the Financial Instruments and Exchange Act were not preparedfor FY 3/2018 2Q.
Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved8Trend of Enrolled Staff (NISSO, Non-consolidated)
Trend of Number Enrolled at FY-end
15,000(Unit: # of staff)

14,00013,546

13,00011,00011,497＋1,102 staff/6 months

10,561＋947 staff/year

10,0009,000 Increased enrollment
mainly in automobiles andelectronic device companies

12,44412,000＋936 staff/year Looking ahead, demand forhuman resources is
expected to remain high[Reference]
FY 3/18 2Q-end enrollment:
11,797 staff
From FY 3/17-end:+ 300 staff (2.6%)

8,000
7,000
0
FY 3/16-end

 From previous FY-end:
Increase of 1,102 staff(8.8%)

FY 3/17-end

FY 3/18-end

FY 3/19
2Q-endCopyright ⓒ 2018 NISSO CORPORATION All Rights Reserved9

Trend of Sales per Capita（NISSO, Non-consolidated）【Sales per capita (monthly average conversion) 】(Unit: Thousand yen)

390

381

380
370

350

 Continued implementation ofunit cost negotiations fromprevious FY, increase in sales
per capita due to placement ofskilled staff

367＋14,000 yen/6 months360

 FY 3/19 2Q:
Up approx. 14,000 yen fromprevious FY (3.8%)

344[Reference]
FY 3/18 2Q sales per capita:
353 Thousand yen
From FY 3/17:
Up 9,000 yen（2.6％）＋22,000 yen/year

340
330
FY 3/17

FY 3/18

FY 3/192Q
２Q

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved10

Number of Skilled Staff（NISSO, Non-consolidated）◆Skilled staff are increasing as planned 4,000 staff expected by FY 3/19-end as planned【Trend in # of skilled staff】(Unit: # of staff)

4,000

FY 3/18-end
approx. 1,600 staff
3,000
2,611
2,034
1,600

FY 3/19 2Q-end

2,611 staff
FY 3/18-end

FY 3/19

FY 3/19

FY 3/19

Jun.-end

Sep.-end

Dec.-end(expected)

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

FY 3/19-end(expected)

11Turnover Rates (NISSO, Non-consolidated)◆Overall turnover rate is maintained at 4.6%
◆Skilled staff turnover rate for 2Q: 1.3% (+ 0.3 pts vs. 1Q)【Trend of Turnover rate】

765.9（Unit：％）

5.5
4.9

5

Overall

4.6

Skilledstaff

1.0

4.6

43

1.7

21

1.3

0
FY 3/16

FY 3/17

FY 3/18

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

FY 3/192019年3月(Apr. - Jun.)

FY 3/19
2Q累計(Apr. - Sep.)
12

Account Companies (NISSO, Non-consolidated)【Account Company Group Sales and % of Total】（Unit：Million yen/％）14,00043.0%

12,672

12,000

42.3%

9,249

10,000
8,000

42.0%
41.0%
40.0%

37.0%

 Account Company Groups (automobiles /electronic components / precisionequipment / electrical machinery):favorable production conditions
continued

39.0% Increase in sales due to reinforcement ofskilled staff assignments to account
37.0%
companies and negotiation of unit costs;
amounted to 42.3% of NISSO's sales
36.0%
shares in 2Q
35.0%

6,000

38.0%

4,000
2,000
034.0%

FY 3/18 2Q
FY 3/18 2Q

FY 3/19 2Q
FY 3/19 2Q

 Production trends of account company
groups are expected to remain strong
hereafter

Increase

Accounts total(４Groups)

9,249

12,672

3,422

Total sales

24,98329,9694,985% of Total

37.0%

42.3%

5.3 pts[Reference]
FY 3/19 1Q: % of Total: 41.9%

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

13Educational Achievements（NISSO, Non-consolidated）【2Q Course-specific educational achievements (total # of participants)】（Unit: # of participants）

 1,831 educational participantsfor 2Q (FY total: 3,997)

Training course name2Q(Jul. - Sep.)

Total(Apr. - Sep.)

Skilled staff education

393

916

Standard skilled staff education

Accredited vocational
training education

80

143

Accredited vocational training school(Miyagi Prefecture)
Basic MONOZUKURI (manufacturing)education, pre-assignment training for
manufacturing staff, mobile education

Manufacturing
education

975

2,148

Safety education

264

466

Basic maintenanceeducation

58

92

Basic equipment maintenance education

210

New graduate/mid-career entry training,
newly appointed chief education, on-site
supervisor education

22

Contracted education from external sources

Employee education

61Other education

Total

1,831

Danger・risk simulation education

3,997
Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved Participants for basic
maintenance education are
steadily increasing and areworking at major semiconductor
manufacturers upon course
completion
 Participants for skilled staff
education are assigned to highunit cost production sites,
including account companies,
which lead to rise in sales percapita

 NISSO will continue to enhancevarious educational
opportunities in order toprovide higher quality ofservices in the future14

Topics◆Nisso Technical Center Naka-Nihon・Semiconductor manufacturing equipment maintenanceparticipants: 6 terms 70 participantsWorking at major semiconductor manufacturers
・Certified as an accredited polytechnic school (vocational skillsdevelopment) by the Nagano Prefecture Governor (11/1)◆Yokohama Tsurumi Center
Opened: October 1, 2018
As a new recruiting approach, started proactive
recruiting activities by utilizing both internal・
external human resources information
databases【Yokohama Tsurumi Center exterior】
Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved15

Topics ~ New Recruiting Channels
Business model establishment for utilization of excellent human resources by utilizing overseas business experiences・human networks②Educationin China①Recruitment oflocal students

Education of Japanese language

Recruitment of third-year students

and basic technology skills③Pre-assignment
Training
Learning of Japanese manners and culture
Technical training at NISSO's training facilities

in local universities◆Hiring of Chinese Graduates
９/18
９/19～
10/22～

1st Term: 10 graduates
Welcoming Ceremony held at NISSO HQ
Education at NISSO Technical Center
Assignment to NISSO’s clients【 Beihua University HQ 】
Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

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

Client MarketEnvironment

Recruiting
Environment

Legal
Environment

Conclusion

Nisso Group’s Competitive Advantages

Automobiles (Parts)
Continued strong automobile production, including newtechnology-equipped vehicles
Semiconductors・Electronic Components
Continued high level of demand due to advancements ofsmartphones, automotive applications and other IoT
developments

Promotion of skilled staff assignment to account companies in
automobiles and electronic devices industries where NISSO hashigh market shares, efforts for further expansion of market
shares and sales profit increases

Continued rise of effective opening-to-application ratio of jobs (at1.64 in September, 2018)
Continued harsh conditions regarding securement of workers

Efforts to increase number of hires by expanding proactive
recruiting through utilization of Yokohama Tsurumi Center
opened in October, in addition to current recruiting methods

2018 Issue…Possibility of employers terminating employment may
arise after September

Appointment of skilled staff, implementation of conversion toindefinite-term employment

Demand for provision of educational opportunities andestablishment of career development support systems for workers(Revised Worker Dispatch Law）

Enhancement of various educational opportunities such asutilization of educational facilities, continued promotion of humanresources development

Although increase in demands for human resources services areexpected to continue, harsh conditions for recruiting environment
will also continue

NISSO has continued to develop measures to correspond tomarket environments
Furthermore, by promoting these initiatives, NISSO strives toexpand business and aims to increase sales profits

Human resources service providers will be required to becompanies that are able to provide stable employment and conduct
proper education and nurturing of workers
Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved17

２Earnings Forecast
for the First Six Months of FY 3/2019

Copyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

18

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 increase in skilled staff, increase in sales per capita due to promotion of placement toaccount companies, and increase in # of residents for Other Businesses

Regarding Operating profit
Although investments in education and housing costs of staff will increase and investment in new facilities for Other Businesses will
precede, due to substantial increase in revenue and efforts to reduce SG&A costs ratio, profit growth is expected（Unit: Million yen）

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%

2,0993.2％+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 Reserved19Outlook for Consolidated Earnings Forecast

Net sales（Unit: Million yen）

70,00059,20860,00050,000Operating profit
65,686（Unit: Million yen）

2,500

2,099

53,5332,000

47,335

1,800

1,500

40,00030,000

1,000

999

860

20,000500

10,00000
FY 3/16

FY 3/17

FY 3/18

FY 3/19

FY 3/16ForecastCopyright ⓒ 2018 NISSO CORPORATION All Rights Reserved

FY 3/17

FY 3/18

FY 3/19Forecast20

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/