Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending
March 31, 2019 [Japanese GAAP]
August 6, 2018
Company NameNISSO CORPORATION

Securities

6569

ＵＲＬ http://www.nisso.co.jp/

Stock Exchange Listing: Tokyo

Representative

Title

President (COO)（Name）Ryuchi Shimizu

Managing Director,
Contact Person

Title

Administration Department,（Name）Shinichi Matsuo

ＴＥＬ 045-514-4323

General Affairs Division
Scheduled date of filing

Scheduled date ofAugust 9, 2018

Quarterly Report－

payment of dividend

Preparation of supplementary materials
for quarterly financial results: Yes
Holding of quarterly financial resultsmeeting: Yes（for institutional investors and analysts）（All amounts are rounded down to the nearest million yen）

1. Consolidated Financial Results for the First Quarter of FY 3/2019 (April 1, 2018 – June 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

FY 3/2019 1Q
FY 3/2018 1Q（Note）
Comprehensive
incomeFY 3/2019 1Q

Millionyen％

Millionyen％

Millionyen％

Millionyen％

15,999
－

－
－

372
－

－
－

389
－

－
－

242
－

－
－

234

Million yen

Net income per share

FY 3/2019 1Q
FY 3/2018 1Q（－％）

FY 3/2018 1Q－

Million yen（－％）

Diluted net income
per share

Yen

Yen

29.10
－

28.23
－

（Note）Since the Company did not prepare quarterly consolidated financial statements for FY 3/2018 1Q, the figures for FY 3/2018
1Q and the ratio of year-on-year changes to FY 3/2019 1Q are not listed.

(2) Consolidated financial position
Total assets
FY 3/2019 1Q
FY 3/2018（Reference）
Equity capital

FY 3/2019 1Q

9,213

Net assets

Equity ratio

Million yen

Million yen％

19,376
19,870

9,213
9,317

47.6
46.9

Million yen

FY 3/2018 1Q

9,317

Million yen

2. Dividends
Dividend per share
1Q-endFY 3/2018
FY 3/2019
FY 3/2019（Forecast）

2Q-end3Q-endYear-end

Total

Yen

Yen

Yen

Yen

Yen

－
－

0.00

－

42.00

42.00

－

－

－

－

（Note）１．Revisions to the most recently announced dividend forecast: None
２．The dividend forecast for FY 3/2019 is undecided at this time.

3. Consolidated Forecast for FY 3/2019 (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

165.44（Note）Revisions to the most recently announced consolidated earnings forecast: None

※

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.:② Changes in accounting policies other than ① above:③ Changes in accounting estimates:④ Restatements:

None
None
None
None

(4) Number of outstanding shares (Common stock)①②③

Number of shares outstanding at
the end of the period (including
treasury shares)
Number of treasury shares at theend of the period
Average number of shares
outstanding during the period（Quarterly total）

FY 3/2019 1Q

8,337,400 Shares

FY 3/2019 1Q

FY 3/2019 1Q

32Shares8,322,068 Shares

FY 3/2018

8,291,200 Shares

FY 3/2018－

SharesFY 3/2018 1Q－

Shares（Note）Since the Company did not prepare quarterly consolidated financial statements for FY 3/2018 1Q, the "average
number of shares outstanding during the period" are not listed.

※ 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.3 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 first 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
Tuesday, August 21, 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 (hereinafter the “firstquarter”), the display format of dates (on Japanese-language financial results materials) have beenchanged from the Japanese calendar to the Western calendar, and have been simplified on English-language
materials.

（Reference）Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the First Quarter of FY 3/2019（April 1, 2018 – June 30, 2018）(1) Non-consolidated results of operations（Percentages represent year-on-year changes）
Net sales

FY 3/2019 1Q
FY 3/2018 1Q

Operating profit

Quarterly net profit

Millionyen％

Millionyen％

Millionyen％

Millionyen％

14,590
－

－
－

399
－

－
－

411
－

－
－

259
－

－
－

Net income per share

FY 3/2019 1Q
FY 3/2018 1Q

Ordinary profit

Diluted net income
per share

Yen

Yen

31.24
－

30.31
－

（Note）Since the Company did not prepare quarterly financial statements for FY 3/2018 1Q, the figures for FY 3/2018 1Q and theratio of year-on-year changes to FY 3/2019 1Q are not listed.

(2) Non-consolidated financial position
Total assets
FY 3/2019 1Q
FY 3/2018（Reference）
Equity capital

FY 3/2019 1Q

8,294

Net assets

Equity ratio

Million yen

Million yen％

16,781
17,257

8,294
8,380

49.4
48.6

Million yen

FY 3/2018 1Q

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
First Quarter of FY 3/19 ……………………………………………………………………………………

6

Quarterly Consolidated Statement of Comprehensive Income
First Quarter of FY 3/19 ……………………………………………………………………………………

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（Significant Subsequent Events） ………………………………………………………………………………

8

－

1 －

１．Qualitative Information on Quarterly Financial Results（１）Description of Results of Operations
Japan's economy during the current consolidated cumulative first quarter (hereinafter the“consolidated first quarter”) has been on a moderate recovery trend due to the effects of various
policies of the government and the Bank of Japan, as the employment and income environments continued
to improve.
Also, in the world economy, although it was necessary to take heed to matters such as the economic
outlook of emerging countries, the influence of policy uncertainties, the trends in trade issues, andthe effects of fluctuations in financial markets, an overall gradual recovery has continued.
Amid such circumstances, the production of domestic manufacturers, who are the Company's importantclients, has been perceived to become revitalized in the transportation machinery sector, while there
was continued mild growth in the electronic components and devices sectors.
On the other hand, with regards to the employment situation, the opening-to-application ratio ofjobs continued to increase against the backdrop of labor shortages, and there were upward trends ofovertime hours in the manufacturing industry.
Furthermore, due to the impending so-called 2018 Issue accompanying the revisions of the Labor
Contract Act and the Worker Dispatch Law, domestic manufacturers have been faced with having to
respond to such a challenge, and the need to utilize external human resources have become everincreased.
In this environment, the Nisso Group (hereinafter “the Group”) has formulated a mid-term management
plan for the fiscal year ending March 2019 to the fiscal year ending March 2021 under the founding
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 consolidated first quarter 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 quarter of the fiscal year ending March
31, 2018, the figures for comparisons with the corresponding period of the previous year are presented
for reference purposes.
①

Net sales
Net sales for the consolidated first quarter increased by 15% to 15,999 million yen compared to thecorresponding period of the previous year (13,907 million yen). This was mainly due to the increase inrevenue from the manufacturing-related human resources services (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 91.3% 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 strived to improve
the skills and increase the retention rate of the manufacturing staff. On May 1, 2018, the Company
opened the "Nisso Technical Center Naka-Nihon (Okaya City, Nagano)", and established a system tonurture human resources capable of actively working in fields such as electric components andprecision equipment, in order to provide high value-added services to its clients. As a result, in theclient environment, incoming orders were expanded mainly by transport equipment and electronic
components manufacturers, and the number of enrolled staff increased substantially (up by 606 staff
compared to the corresponding period of the previous year). In addition, as a result of the favorable
conditions of proposals to assign "skilled staff", who are indefinite-term employees with highretention rates, to our important clients, the monthly per capita sales increased by 12 thousand yen
during the first quarter compared to the previous consolidated fiscal year. Furthermore, 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 employee motivation. As a result, net sales for the general human resources
services business increased by 15.5% to 15,411 million yen compared to the corresponding period of theprevious year (13,339 million yen).
Furthermore, with regards to other businesses (Note), there was an increase in the number ofresidents of the nursing care facility, "Sweetpea Higashi Totsuka (Totsuka-ku, Yokohama)", which was－

2 －opened on March 1, 2018. As a result, net sales for other businesses increased 3.4% to 587 million yen
compared to the corresponding period of the previous year (568 million yen).
（Note）The Company carries out manufacturing dispatching and contracting for its manufacturingrelated human resources services, and general office work dispatching and BPO (Business Process
Outsourcing: the outsourcing of operations and processes of specific business-related tasks to a[third-party] specialized company) for its administrative human resources services, as well as
nursing care and welfare businesses for its other businesses.
②

Operating profit
Operating profit for the consolidated first quarter decreased by 2.3% to 372 million yen compared tothe corresponding period of the previous year (381 million yen).
In the general human resources services business, as a result of the effect of the substantial
increase in revenue and the efforts to reduce the ratio of selling and administrative expenses, therise in costs for the improvement of treatment of manufacturing staff and the investment in education
were absorbed, and the operating profit (after elimination of internal transactions) increased by
14.3% to 454 million yen compared to the corresponding period of the previous year (397 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 (after elimination ofinternal transactions) increased by 65 million yen, to 81 million yen compared to the corresponding
period of the previous year (15 million yen operating loss).

－

3 －③ Ordinary profit
Non-operating income of the consolidated first quarter increased by 18.4% to 45 million yen comparedto the corresponding period of the previous year (38 million yen). In addition, non-operating expenses
decreased by 21.5% to 28 million yen compared to the corresponding period of the previous year (36million yen), due to a decrease in interest expenses accompanying a decrease in loans payable.
As a result, ordinary profit of the consolidated first quarter increased by 1.6% to 389 million yen
compared to the corresponding period of the previous year (383 million yen).
④

Profit attributable to owners of parent (quarterly net profit attributable to parent company
shareholders)
Income taxes for the consolidated first quarter increased by 15.5% and was posted at 147 million yen
compared to the corresponding period of the previous year (127 million yen).
As a result, quarterly net profit attributable to parent company shareholders decreased by 5.3% to
242 million yen compared to the corresponding period of the previous year (255 million yen).
（２）Description of Financial Position（Assets）
Current assets at the end of the first quarter amounted to 12,312 million yen, which was a decreaseof 440 million yen from the end of the previous consolidated fiscal year. This was mainly due to adecrease of 680 million yen in cash and deposits, while notes and accounts receivable (trade)increased by 178 million yen.
Non-current assets at the end of the first quarter amounted to 7,063 million yen, which was adecrease of 53 million yen from the end of the previous consolidated fiscal year. This was mainly due
to a decrease of 85 million in "other" under the investment and other assets category.
As a result, total assets amounted to 19,376 million yen, which was a decrease of 493 million yen
from the end of the previous consolidated fiscal year.
（Liabilities）
Current liabilities at the end of the first quarter amounted to 7,926 million yen, which was adecrease of 280 million yen from the end of the previous consolidated fiscal year. This was mainly due
to an increase of 246 million yen in accrued expenses, while income taxes payable decreased by 535
million yen.
Non-current liabilities at the first quarter amounted to 2,236 million yen, which was a decrease of
109 million yen from the end of the previous consolidated fiscal year. This was mainly due to a 125
million yen decrease in long-term loans payable.
As a result, total liabilities amounted to 10,162 million yen, which was a decrease of 389 million
yen from the end of the previous consolidated fiscal year.
（Net assets）
Total net assets at the end of the first quarter amounted to 9,213 million yen, which was a decreaseof 103 million yen from the end of the previous consolidated fiscal year. This was mainly due to the242 million yen of quarterly net profit attributable to parent company shareholders and the 348
million yen of dividends of 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

1Q of FY 3/19

(Mar. 31, 2018)(Jun. 30, 2018)

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

4,603,296
6,969,855
747,159(7,408)12,312,903

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

2,116,984
2,771,384
157,9815,046,350
360,601

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

1,658,461(1,703)
1,656,758
7,063,710
19,376,614

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

510,306
4,577,336
97,112
317,496
2,424,135
7,926,387

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

1,757,675
48,198430,676
2,236,550
10,162,937

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

1,990,215
2,341,165
4,702,506(156)
9,033,731

160,525

153,546

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

1,421
24,976
179,945
9,213,676
19,376,614

（２）Quarterly Consolidated Statements of Income and Comprehensive Income（Quarterly Consolidated Statement of Income）（First Quarter of FY 3/19）（Unit: Thousand yen）
1Q of FY 3/19
(Apr. 1, 2018 – Jun. 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 －15,999,213
13,339,020
2,660,192
2,287,508
372,684
458
6,987
9,718
11,536
16,87945,580
9,049
1,213
5,599
12,973
28,836
389,428
389,428
51,98095,294
147,275
242,152－
242,152

（Quarterly Consolidated Statement of Comprehensive Income）（First Quarter of FY 3/19）（Unit: Thousand yen）
1Q of FY 3/19
(Apr. 1, 2018 – Jun. 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 －242,152(6,978)(326)(107)(7,412)
234,740
234,740－

（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.
（Significant Subsequent Events）（Stock Split and Partial Amendments to Articles of Incorporation Due to Stock Split）
At the Board of Directors' Meeting held on August 6, 2018, the Company has resolved to conduct astock split and to make partial amendments to the Articles of Incorporation associated with the stock
split.
１．Purpose of Stock Split
The purpose of the stock split is to reduce the monetary amount per investment unit, as well as
aiming to improve the liquidity of the Company's shares and to expand the investor base.
２．Summary of Stock Split（１）Ratio and timing of stock split
With the Record Date of August 21, 2018 (TUE), the Company will split the common stock ownedby the shareholders listed or recorded in the final register of shareholders on the same day, at
a ratio of 2 shares for 1 share.
（２）Number of shares to be increased by stock split
Total number of shares outstanding before stock split
Number of shares to be increased by this split

8,350,940 Shares
8,350,940 Shares

Total number of shares outstanding after stock split
Total number of possible shares outstanding after stock split

16,701,880 Shares
51,200,000 Shares（Note）The total number of shares outstanding and the shares to be increased listed above arebased on the total number of shares outstanding as of July 31, 2018, and there is apossibility that they may increase due to the exercising of share acquisition rights up
until the Record Date of the stock split.
（３）Schedule of stock split
Public Notice Date of Record Date
Record Date

August 6, 2018 (MON)August 21, 2018 (TUE)

Effective Date

August 22, 2018 (WED)（４）Influence on per share information
The per share information, assuming that the stock split was conducted at the beginning of thecurrent fiscal year, is as follows.
1Q of FY 3/19
(Apr. 1, 2018 – Jun. 30, 2018)

Net income per share

14.55 Yen

Diluted net income pershare

14.12 Yen－

8 －

３．Partial Amendments to Articles of Incorporation Due to Stock Split（１）Reason for amendments to Articles of Incorporation
In accordance with the stock split, a portion of the Company's Articles of Incorporation willbe amended pursuant to Article 184, paragraph 2 of the Companies Act.
（２）Content of amendments to Articles of Incorporation
The contents of the amendments are as follows.（The changes are underlined.）
Before amendment

After amendment（Total Number of Authorized Shares）
Article 6 The total number of authorized（Total Number of Authorized Shares）
Article 6 The total number of authorizedshares of the Company shall be
25,600,000 shares.

shares of the Company shall be
51,200,000 shares.

（３）Schedule of amendments to Articles of Incorporation
Board of Directors' Resolution Date
August 6, 2018 (MON)
Effective Date

August 22, 2018 (WED)

４．Other Information
Change in amount of capital
There is no change in the amount of capital at the time of this stock split.
５．Adjustment of Exercise Price of Share Acquisition Rights
In accordance with the stock split, from August 22, 2018 and thereafter, the exercise price pershare of the share acquisition rights issued by the Company will be adjusted as follows.
Board of Directors'

Name of share

Exercise price before

Exercise price after

resolution dateacquisition rights

adjustment

adjustment

thMarch 22, 2016

The 5 Share
Acquisition Rights

－

9 －

210円

105円