Summary of Consolidated Financial Results for the First Six Months of the Fiscal Year Ending
March 31, 2019 [Japanese GAAP]
Company Name
Securities CodeNISSO CORPORATION
6569
ＵＲＬ https://www.nisso.co.jp/
President (COO), &Representative
Title（Name）Ryuichi Shimizu
Representative Director
Managing Director,
Administration Department,
Contact Person
Title（Name）Shinichi Matsuo
General Affairs Division
Director
Scheduled date of filing
Scheduled date ofNovember 9, 2018－
Quarterly Report
payment of dividend
Preparation of supplementary materials
for quarterly financial results：Yes
Holding of quarterly financial results（for institutional investors and analysts）
meeting：Yes

November 5, 2018
Stock Exchange Listing: Tokyo

ＴＥＬ 045-514-4323（All amounts are rounded down to the nearest million yen）

1. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2019
(April 1, 2018 – September 30, 2018)(1) Consolidated results of operations（Percentages represent year-on-year changes）
Profit attributable
Net sales
Operating profit
Ordinary profit
to owners of parent
First six months ended

September 30, 2018
September 30, 2017
(Note) Comprehensive income

Million yen％

Million yen％

Million yen％

Million yen％

32,783
－

－
－

915
－

－
－

930
－

－
－

588
－

－
－

For the first six months ended September 30, 2018:
For the first six months ended September 30, 2017:

Net income per share

597 Million yen (- %)- Million yen (- %)Diluted net income
per shareFirst six months ended

Yen

Yen

September 30, 2018
September 30, 2017

35.26
－

34.29
－

（Note）１．Since the Company did not prepare quarterly consolidated financial statements for the first six months of FY 3/2018,
those figures and the ratio of year-on-year changes to the first six months of FY 3/2019 are not listed.
２．As of August 22, 2018, the Company's common stock was split at a ratio of 2 shares for 1 share. "Net income pershare" and "diluted net income per share" are calculated assuming that the shares were split at the beginning of thecurrent consolidated fiscal year.

(2) Consolidated financial position
Total assets
As of

September 30, 2018
March 31, 2018
(Reference) Equity capital

Net assets

Equity ratio

Million yen

Million yen％

20,11519,870

9,582
9,317

47.6
46.9

As of September 30, 2018:
As of March 31, 2018:

9,582 Million yen
9,317 Million yen

2. Dividends
Dividend per share
1Q-endFiscal year ended
March 31, 2018
Fiscal year ending
March 31, 2019
Fiscal year ending
March 31, 2019
(Forecast)

2Q-end3Q-endYear-end

Total

Yen

Yen

Yen

Yen

Yen

－

0.00

－

42.00

42.00

－

0.00
－

－

－

(Note) １．Revisions to the most recently announced dividend forecast: None

２．As of August 22, 2018, the Company's common stock was split at a ratio of 2 shares for 1 share. However, the actual
dividend amount before the stock split is listed for FY 3/2018.
３．The dividend forecast for FY 3/2019 is undecided at this time.

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2019
(April 1, 2018 – March 31, 2019)（Percentages represent year-on-year changes）
Profit
Net income per
Net sales
Operating profit Ordinary profit attributable toshareowners of parent

Full year

Millionyen％

Millionyen％

Millionyen％

Million
yen

％

Yen

65,686

10.9

2,099

16.6

2,144

20.4

1,376

35.7

82.40

(Note) １．Revisions to the most recently announced consolidated earnings forecast: None
２．As of August 22, 2018, the Company's common stock was split at a ratio of 2 shares for 1 share. Net income per sharelisted in the Consolidated Forecast for FY 3/2019 is calculated taking into consideration the impact of the stock
split.

※Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting inchanges in the scope of consolidation): None
Newly added: （Co. name）, Excluded: （Co. name）(2) Application of special accounting methods for the presentation of quarterly consolidated financial
statements: None
(3) Changes in accounting policies and accounting estimates, and restatements① Changes in accounting policies due to revisions in accounting standards, etc.:
None② Changes in accounting policies other than ① above:None③ Changes in accounting estimates:
None④ Restatements:
None(4) Number of outstanding shares (Common stock)① Number of shares outstanding at
the end of the period(including treasury shares)②③

Number of treasury shares atthe end of the period
Average number of shares
outstanding during the period

As of Sep. 30,
2018

16,734,680

Shares64

Shares

As of Sep. 30,
2018First six months
ended Sep. 30,

As of Mar. 31,
2018
As of Mar. 31,
201816,582,400 Shares－

SharesFirst six months
16,682,643

2018

Sharesended Sep. 30,－ Shares2017(Note) １．Since the Company did not prepare quarterly consolidated financial statements for the first six months of
FY 3/2018, the "average number of shares outstanding during the period" is not listed.
２．As of August 22, 2018, the Company's common stock was split at a ratio of 2 shares for 1 share. "Number ofoutstanding shares at the end of the period", "number of treasury shares at the end of the period" and"average number of shares outstanding during the period" are calculated assuming that the shares were split at
the beginning of the previous consolidated fiscal year.

※ The quarterly financial statement is not subject to the quarterly review procedures of certified public
accountants or auditing corporations※

Cautionary statement on the appropriate use of earning forecasts, and other special items（Notes on forward-looking statements, etc.）
・ Earnings forecasts regarding future performance and other forward-looking statements in thismaterial are based on certain assumptions judged to be valid and on information that is currently
available to the Company, and do not represent promises by the Company that these figures will beachieved. In addition, actual results may differ significantly due to a variety of factors. For
prerequisite conditions, etc. regarding the earnings forecasts, please refer to "1. Qualitative
Information on Quarterly Financial Results, (3) Description of Future Forecast Information such as
Consolidated Forecasts, etc." on P.4 of the attachments.
・ The average number of shares outstanding during the period, which is the basis for the calculationof "net income per share" listed under the FY 3/2019 consolidated forecast, is calculated byreflecting the number of increase in shares due to the exercising of share acquisition rights up
until the second quarter of the current fiscal year.
（Supplementary materials for quarterly financial results and method of obtaining content for quarterly
financial results meeting）
The Company is planning to hold a briefing session for institutional investors and analysts on
Thursday, November 8, 2018.
Quarterly financial results materials to be used on that day will be posted on the Company's website
promptly after the meeting.
（Regarding the changing of the date display format）
From the first quarter of the current consolidated accounting period, the display format of dates (onJapanese-language financial results materials) have been changed from the Japanese calendar to theWestern calendar, and have been simplified, on occasion, on English-language materials.

（Reference）Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2019
(April 1, 2018 – September 30, 2018)(1) Non-consolidated results of operations（Percentages represent year-on-year changes）
Net salesFirst six months ended

September 30, 2018
September 30, 2017

Operating profit

Ordinary profit

Quarterly net profit

Million yen％

Million yen％

Million yen％

Million yen％

29,969
－

－
－

977
－

－
－

983
－

－
－

629
－

－
－

Net income per share

Diluted net income
per shareFirst six months ended

Yen

Yen

September 30, 2018
September 30, 2017

37.71
－

36.67
－

（Note）１．Since the Company did not prepare quarterly financial statements for the first six months of FY 3/2018, those figures
and the ratio of year-on-year changes to the first six months of FY 3/2019 are not listed.
２. As of August 22, 2018, the Company's common stock was split at a ratio of 2 shares for 1 share. "Net income pershare" and "diluted net income per share" are calculated assuming that the shares were split at the beginning of thecurrent fiscal year.

(2) Non-consolidated financial position
Total assets
As of

September 30, 2018
March 31, 2018
(Reference) Equity capital

Net assets

Equity ratio

Million yen

Million yen％

17,34017,257

8,686
8,380

50.1
48.6

As of September30, 2018:
As of March 31, 2018:

8,686 Million yen
8,380 Million yen

○Contents of Attachments
１．Qualitative Information on Quarterly Financial Results ……………………………………………………

2（１）Description of Results of Operations ………………………………………………………………………

2（２）Description of Financial Position ……………………………………………………………………………

4（３）Description of Future Forecast Information such as Consolidated Forecasts, etc. ………………

4

２．Quarterly Consolidated Financial Statements and Notes ………………………………………………………

5（１）Quarterly Consolidated Balance Sheet ………………………………………………………………………

5（２）Quarterly Consolidated Statements of Income and Comprehensive Income ……………………………

6

Quarterly Consolidated Statement of Income
For the First Six Months ended September 30, 2018 ……………………………………………………

6

Quarterly Consolidated Statement of Comprehensive Income
For the First Six Months ended September 30, 2018 ……………………………………………………

7（３）Notes regarding Quarterly Consolidated Financial Statements …………………………………………

8（Notes regarding the Going Concern Assumption） …………………………………………………………

8（Notes on Significant Changes in the Amount of Shareholders' Equity） ……………………………

8（Additional Information） ………………………………………………………………………………………

8

－

1 －

１．Qualitative Information on Quarterly Financial Results（１）Description of Results of Operations
Japan's economy during the current consolidated cumulative second quarter (hereinafter, the "period
under review") has remained on a modest recovery trend despite the impact of natural disasters such as
the torrential rain in western Japan in July and the Hokkaido Eastern Iburi earthquake in September,and due to the effects of various policies amid the continued improvement in the employment and income
environments.
Also, in the world economy, although it was necessary to take heed to matters such as the trends oftrade issues, the uncertainty of overseas economies, and the effects of fluctuations in financial andcapital markets, an overall gradual recovery has continued.
Amid such circumstances, the production of domestic manufacturers, who are NISSO CORPORATION's(hereinafter, the “Company”) important clients, has remained steady, and the need to utilize external
human resources has remained strong.
On the other hand, with regards to the employment situation, amid the stringency of labor market
conditions, it has been continuously difficult to secure human resources.
In this environment, the Nisso Group (hereinafter, the "Group) has formulated a mid-term management
plan for the fiscal year ending March 31, 2019 to the fiscal year ending March 31, 2021 under thefounding philosophy of "Nurturing and Bringing Out the Best in People", and along with reinforcing
sales, recruiting and educational activities, the Group has striven to improve customer and employee
evaluations.
As a result, the results of operations for the period under review are as follows.
It is to be noted that since quarterly consolidated financial statements based on the Financial
Instruments and Exchange Act were not prepared for the first six months of the fiscal year ending
March 31, 2018, the figures for comparisons with the corresponding period of the previous year arepresented for reference purposes.
①

Net sales
Net sales for the period under review increased by 16.8% compared to the corresponding period of theprevious year (28,073 million yen), to 32,783 million yen.
This was mainly due to the increase in revenue from the General Human Resources Services Business(Note) that contributed to the overall performance of the Group.
In the General Human Resources Services Business, with regards to the manufacturing-related humanresources services which accounts for 91.5% of net sales, under the strategy of prioritizing theassignment of "skilled staff" to key account companies, who are the Company's important clients, theCompany has been actively investing in the development of human resources, and has striven to improve
the skills and increase the retention rate of manufacturing staff. By utilizing its training
facilities such as the "Nisso Technical Center Naka-Nihon (Okaya City, Nagano)", which was opened on
May 1, 2018, the Company has nurtured human resources who are capable of actively working in fields
such as automobiles, electronic components and precision equipment, in order to provide high valueadded services to its clients. As a result, in the client environment, incoming orders were expanded
mainly by transportation equipment and electronic components manufacturers. In addition, the Company
has achieved low-cost hiring by utilizing its own recruitment sites, and has made strides to increase
retention rates through the improvement of treatment and the enhancement of educational opportunities
in order to heighten the motivation of manufacturing staff. As a result, the number of enrolled staff
grew steadily (up by 1,102 staff compared to the end of the previous consolidated fiscal year).
Furthermore, as a result of the favorable conditions of proposals to assign "skilled staff", who areindefinite-term employees with high retention rates, to our important clients, the average monthly percapita sales increased by 14 thousand yen during the period under review.
As a result, net sales for the General Human Resources Services Business increased by 17.2% comparedto the corresponding period of the previous year (26,937 million yen), to 31,580 million yen.
Furthermore, with regards to Other Businesses (Note), there was an increase in the number ofresidents at the nursing care facility, "Sweetpea Higashi Totsuka (Totsuka-ku, Yokohama)", which was
opened on March 1, 2018.
As a result, net sales for Other Businesses increased by 5.7％ compared to the corresponding periodof the previous year (1,143 million yen), to 1,208 million yen.
（Note）Within the General Human Resources Services Business, the Company carries out manufacturing
dispatching and contracting for its manufacturing-related human resources services, and general－

2 －office work dispatching and BPO (Business Process Outsourcing: the outsourcing of operations andprocesses of specific business-related tasks to a [third-party] specialized company) for its
administrative human resources services. Also, the Company operates nursing care and welfare
businesses for its Other Businesses.
②

Operating profit
Operating profit for the period under review increased by 33.4% compared to the corresponding periodof the previous year (686 million yen), to 915 million yen.
With regards to the General Human Resources Services Business, as a result of the effect of thesubstantial increase in revenue and the efforts to reduce the ratio of selling and administrative
expenses, the rise in costs for the improvement of treatment of manufacturing staff and the investment
in education were absorbed, and the operating profit increased by 47.4% compared to the corresponding
period of the previous year (719 million yen), to 1,060 million yen.
Meanwhile, with regards to Other Businesses, although the number of residents of "Sweetpea Higashi
Totsuka" increased, because it has not been long since the facility opened, the costs of sales such as
personnel and operating expenses could not be absorbed, and operating loss increased by 112 million
yen compared to the corresponding period of the previous year (30 million yen operating loss), to 143
million yen.
③

Ordinary profit
Non-operating income for the period under review increased by 14.5％ compared to the corresponding
period of the previous year (63 million yen), to 72 million yen. In addition, non-operating expenses
decreased by 23.9% compared to the corresponding period of the previous year (75 million yen), to 57
million yen, due to a decrease in interest expenses accompanying a decrease in loans payable.
As a result, ordinary profit for the period under review increased by 38.0% compared to thecorresponding period of the previous year (674 million yen), to 930 million yen.
④

Profit attributable to owners of parent
Income taxes for the period under review increased by 49.7% compared to the corresponding period of
the previous year (228 million yen), and was posted at 342 million yen.
As a result, profit attributable to owners of parent increased by 32.0% compared to thecorresponding period of the previous year (445 million yen), to 588 million yen.

－

3 －（２）Description of Financial Position（Assets）
Current assets at the end of the period under review amounted to 12,939 million yen, which was anincrease of 186 million yen from the end of the previous consolidated fiscal year. This was mainly due
to an increase of 362 million yen in notes and accounts receivable (trade), while cash and deposits
decreased by 165 million yen.
Non-current assets at the end of the period under review amounted to 7,176 million yen, which was anincrease of 59 million yen from the end of the previous consolidated fiscal year. This was mainly due
to an increase of 62 million in "other" under the investment and other assets category.
As a result, total assets amounted to 20,115 million yen, which was an increase of 245 million yen
from the end of the previous consolidated fiscal year.
（Liabilities）
Current liabilities at the end of the period under review amounted to 8,183 million yen, which was adecrease of 23 million yen from the end of the previous consolidated fiscal year. This was mainly due
to a decrease of 174 million yen in income taxes payable, while provision for bonuses increased by 147
million yen.
Non-current liabilities at the end of the period under review amounted to 2,350 million yen, which
was an increase of ４ million yen from the end of the previous consolidated fiscal year. This was
mainly due to a 28 million yen increase in net defined benefit liability.
As a result, total liabilities amounted to 10,533 million yen, which was a decrease of 18 million
yen from the end of the previous consolidated fiscal year.
（Net assets）
Total net assets at the end of the period under review amounted to 9,582 million yen, which was anincrease of 264 million yen from the end of the previous consolidated fiscal year. This was mainly due
to the 588 million yen of profit attributable to owners of parent and the 348 million yen of dividendsof surplus.
As a result, the equity ratio was at 47.6% (which was at 46.9% at the end of the previous
consolidated fiscal year).
（３）Description of Future Forecast Information such as Consolidated Forecasts, etc.
There are no changes to the Consolidated Forecast for the full year disclosed in the "Summary ofConsolidated Financial Results for Fiscal Year Ended March 31, 2018" which was released on May 10,
2018.

－

4 －

２．Quarterly Consolidated Financial Statements and Notes（１）Quarterly Consolidated Balance Sheet（Unit: Thousand yen）

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Current portion of long-term loans payable
Accrued expenses
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets－

5 －FY 3/18

2Q of FY 3/19

(As of Mar. 31, 2018)(As of Sep.30, 2018)

5,283,739
6,791,691
684,061(6,444)
12,753,048

5,117,861
7,153,936
673,233(5,727)
12,939,304

2,113,842
2,771,384
109,108
4,994,335
380,215

2,088,882
2,771,384
155,093
5,015,360
356,562

1,744,344(1,742)
1,742,601
7,117,152
19,870,200

1,806,365(1,726)
1,804,639
7,176,562
20,115,866

501,889
4,331,212
632,856
528,328
2,212,673
8,206,960

518,724
4,451,717
458,029
675,992
2,078,957
8,183,421

1,883,221
36,418425,978
2,345,618
10,552,579

1,832,090
64,560453,530
2,350,181
10,533,602

1,985,364
2,336,314
4,808,584
9,130,263

1,993,359
2,344,309
5,048,626(156)
9,386,138

160,525

170,110

1,529
25,302
187,357
9,317,621
19,870,200

1,364
24,650196,125
9,582,264
20,115,866

（２）Quarterly Consolidated Statements of Income and Comprehensive Income（Quarterly Consolidated Statement of Income）（For the First Six Months ended September 30, 2018）（Unit: Thousand yen）
First six months of FY 3/19
(Apr. 1, 2018 – Sep. 30, 2018)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Subsidy income
House rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Rent expenses
Other
Total non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent－

6 －32,783,827
27,275,027
5,508,800
4,593,429
915,371917
6,987
20,99022,78920,71872,402
18,051
1,335
10,84827,08457,319930,454
930,454360,673(18,490)
342,182
588,272
588,272

（Quarterly Consolidated Statement of Comprehensive Income）（For the First Six Months ended September 30, 2018）（Unit: Thousand yen）
First six months of FY 3/19
(Apr. 1, 2018 – Sep. 30, 2018)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests－

7 －588,272
9,585
(652)
(165)
8,767
597,040
597,040-

（３）Notes regarding Quarterly Consolidated Financial Statements（Notes regarding the Going Concern Assumption）
Not applicable.
（Notes on Significant Changes in the Amount of Shareholders' Equity）
Not applicable.
（Additional Information）（Application of “Partial Revisions to ‘Accounting Standards for Tax Effect Accounting’ ”）“Partial Revisions to ‘Accounting Standards for Tax Effect Accounting’ ”(ASBJ [Accounting Standards
Board of Japan] Statement No. 28, February 16, 2018) have been applied from the beginning of the firstquarter, and deferred tax assets have been included in the investment and other assets category.

－

8 －