Consolidated Financial Results for the First Quarter of FY 3/2022 [Japanese GAAP]
August 10, 2021
Company NameNISSO CORPORATION

Securities Code

6569

Representative(Title)Contact Person(Title)Scheduled date of filing
Quarterly Report

Stock Exchange Listing:Tokyo

ＵＲＬ https://www.nisso.co.jp/
Representative Director,（Name）Ryuichi Shimizu

President & CEO
Sr. Executive Officer（Name）Norihiro Sekido
Scheduled date ofAugust 10, 2021

Preparation of supplementary materials

payment of dividend

ＴＥＬ +81-45-514-4323－(Scheduled to be posted on the Company's website on August 10, 2021 (Tues.))for quarterly financial results: Yes
Holding of quarterly financial results(Scheduled to be held for institutional investors and analysts on August 16,

meeting: Yes

2021 (Mon.))（All amounts are rounded down to the nearest million yen）

1. Consolidated Financial Results for the First Quarter of FY 3/2022 (April 1, 2021 – June 30, 2021)(1) Consolidated results of operations（Percentages represent year-on-year changes）
Net sales

Operating profit

Ordinary profit

Profit attributable toowners of parent

First three months ended

Millionyen％

Millionyen％

Millionyen％

Millionyen％June 30, 2021
June 30, 2020

18,045
16,557

9.0
(7.9)

470
206

127.9
(56.8)

524
238

119.4
(51.3)

345
101

239.7
(71.6)(Note) Comprehensive income

For the first 3 months ended June 30, 2021:
For the first 3 months ended June 30, 2020:

Net income per share

Diluted net income per
share

Yen

Yen

10.17
3.01

10.16
2.99

First three months ended
June 30, 2021
June 30, 2020

342 Million yen (235.1%)
102 Million yen (-67.6%)(2) Consolidated financial position
Total assets
As ofJune 30, 2021
March 31, 2021
(Reference) Equity capital

Net assets

Equity ratio

Million yen

Million yen％

21,361
21,631

12,18912,76357.1
59.0

As of June 30, 2021:
As of March 31, 2021:

12,189 Million yen
12,763 Million yen

2. Dividends
Dividend per share
1Q-endFiscal year ending March
31, 2021
Fiscal year ending March
31, 2022
Fiscal year ending March
31, 2022（Forecast）

2Q-end3Q-endYear-end

Total

Yen

Yen

Yen

Yen

Yen

－

0.00

－

20.10

20.10

0.00

－

18.00

18.00

－

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

3. Consolidated Forecast for FY 3/2022 (April 1, 2021 – March 31, 2022)（Percentages represent year-on-year changes）
Net sales

Full year

Operating profit

Ordinary profit

Profit attributableto owners of parent

Net income pershare

Millionyen％

Millionyen％

Millionyen％

Million
yen

％

Yen

76,000

11.4

3,000

15.4

3,000

1.7

2,000

25.6

58.90

(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
in changes 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:

Yes
None
None
None

(Note) For details, please refer to page 7 "2. Quarterly Consolidated Financial Statements and Notes (3) Notes
regarding Quarterly Consolidated Financial Statements (Changes in Accounting Policies) of the attachments.

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

Number of shares outstanding at
the end of the period (including
treasury shares)

As of Jun.
30, 2021

Number of treasury shares at theend of the period

As of Jun.

Average number of shares
outstanding during the period（Quarterly total）

First three30, 2021

months ended
Jun. 30, 2021

34,320,400

Shares366,381

Shares

As of Mar.
31, 2021
As of Mar.
31, 2021

34,320,400

Shares366,381

Shares33,810,347

SharesFirst three
33,954,019 Sharesmonths ended
Jun. 30, 2020※

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.
（Supplementary materials for quarterly financial results and method of obtaining content for quarterly
financial results meeting）
Materials related to the explanation of the Company's financial results are scheduled to be posted on
its website on August 10, 2021 (Tuesday).
In addition, a Financial Results Briefing (for institutional investors and analysts) is scheduled tobe held on August 16, 2021 (Monday). (In Japanese only)（Reference）Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the First Quarter of FY 3/2022（April 1, 2021 – June 30, 2021）(1) Non-consolidated results of operations（Percentages represent year-on-year changes）
Net sales

Operating profit

Ordinary profit

Quarterly net profit

First three months ended

Millionyen％

Millionyen％

Millionyen％

Millionyen％June 30, 2021

16,684

10.1

482

135.7

496

126.5

319

229.7

June 30, 2020

15,153(8.5)

204(56.3)

219(53.3)

96(71.7)Net income per shareFirst three months ended
June 30, 2021
June 30, 2020

Diluted net income per
share

Yen

Yen

9.40
2.86

9.39
2.85

(2) Non-consolidated financial position
Total assets
As ofJune 30, 2021
March 31, 2021
(Reference) Equity capital

Net assets

Equity ratio

Million yen

Million yen％

19,58819,811

11,592
11,955

59.2
60.3

As of June 30, 2021:

11,592 Million yen

As of March 31, 2021:

11,955 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 3/22 ……………………………………………………………………………………

6

Quarterly Consolidated Statement of Comprehensive Income
First Quarter of FY 3/22 ……………………………………………………………………………………

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（Changes in Accounting Policies） ……………………………………………………………………………

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

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

9

－

1 －

１．Qualitative Information on Quarterly Financial Results（１）Description of Results of Operations
Although Japan's economy during the current consolidated cumulative first quarter (hereinafter, the"period under review") remained in harsh conditions due to the spread of the new coronavirus
infections (hereinafter, "COVID-19 infections"), while taking measures to prevent the spread of
infections, there has been a recovery in economic activity, partly due to the effects of various
policies and improvements in overseas economies. On the other hand, it is necessary to pay close
attention to the effects of the spread of COVID-19 infections on domestic and overseas economies, andfluctuations in financial and capital markets.
As for the business environment surrounding the Nisso Group (hereinafter, the "Group"), regarding
domestic manufacturers, who are important clients, although the effects of semiconductor shortages
remained in part, automobiles-related production has remained firm, and electronic devices-related
production has also increased due to a vigorous increase in semiconductor demand. Also, regarding
employment conditions, although the number of employed persons has been more or less unchanged, thehours of operation in the manufacturing industry are recovering, and the needs for utilizing external
human resources are also increasing for some manufacturers who are NISSO CORPORATION's (hereinafter,the "Company") clients.
In such an environment, based on its mission of " Creating opportunities and hopes for people towork", the Group aims to create workplaces where workers can gain a sense of self-fulfillment andflourish, with human resources solution services that support the growth of companies and people, andto provide services that can respond to social changes and changes in industrial structures. In order"To transform into a corporate group with high-growth potential", the Group is promoting the following
initiatives.
Regarding manufacturing-related human resources services, the Group's core business, in existingareas such as manufacturing dispatching and contracting, the Group is increasing investments inpromotions, recruiting a large number of human resources, improving added value by training workers,
and strengthening its service supply system to clients, including Account Companies, in order toincrease profitability. Also, in the engineering business, the Group is expanding its business byproviding a high-quality curriculum to a large number of human resources while introducing new digitaltechnologies, in addition to existing educational expertise. Furthermore, in new businesses, although
the Group has provided services to jobseekers to improve their skills by providing employment
destinations and education, it will also provide services for other life stages such as job hunting,job changes, and reemployment at retirement age. To that end, the Group will actively invest in the
introduction of digital technologies such as AI, and the building of new partnerships in order tocreate businesses that have synergies with the Group.
In Other Businesses, the Group will strive to maintain a high occupancy rate by improving thequality of services provided at "Sweetpea", its nursing care facilities located in 6 locations in
Yokohama. In addition, the Group is making efforts to build a stable profit base by continuing efforts
to improve its management structure, such as promoting operational efficiency.
As a result, the results of operations for the period under review are as follows: net sales of
18,045 million yen (up 9.0% year-on-year), operating profit of 470 million yen (up 127.9% year-onyear), ordinary profit of 524 million yen (up 119.4% year-on-year), and profit attributable to ownersof parent amounted to 345 million yen (up 239.7% year-on-year).
Based on its policy of putting the safety of its clients and employees as a top priority, the Grouphas established the "COVID-19 Countermeasures Headquarters", and is promoting business activities thatstrengthen measures to prevent the spread of COVID-19 infections. Going forward, the Group's businessperformance is expected to remain firm as the economic activities of clients related to the Company
recover, and the needs for external human resources resume. On the other hand, in the event of an
occurrence where individuals are affected by the virus at its clients, workplaces or nursing carefacilities, the Group may be affected.
The results of operations by segment are as follows:（Human Resources Services Business）
Within the General Human Resources Services Business, the Group carries out manufacturing
dispatching and contracting for its manufacturing-related human resources services, 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 humanresources services.
In manufacturing-related human resources services, the core business which accounts for 92.5% of－

2 －consolidated net sales in the period under review, the production of manufacturers, who are ourclients, is steadily increasing, and we have endeavored to expand orders by actively developing sales
activities centered on Account Companies, who are our important clients. Also, in addition topromoting the expansion of recruitment interview opportunities through the use of web (on-line)
interviews, the number of enrolled staff was at 13,856 (up 710 from the end of the previous fiscal
year) as a result of the continued efforts to improve the retention rate of manufacturing staff andthe increasing stability orientation of manufacturing staff due to social unrest caused by COVID-19,
resulting in a low turnover rate of 3.5%.Furthermore, the monthly average net sales per capita of 409
thousand yen (up 51 thousand yen year-on-year) was partly due to the impact of not only in house
educational facilities, but also the implementation of education that enhances added value, including
the use of the Web, as well as the recovery in operations.
In addition, in existing areas such as manufacturing dispatching and contracting, the Group has beenstrengthening its service supply system and improving the share ratio of Account Companies, who areimportant clients, and the share ratio has remained at a high level of 47.2%. In the engineering area,client needs are strong, the number of incoming orders is on an increasing trend, and the Group willcontinue to expand its recruitment channels for engineers. Furthermore, in order to create new
businesses, since the Group has been investigating business opportunities in order to build the second
pillar of its business, the period under review was set as the preparation period.
In order to reduce the ratio of selling, general and administrative expenses, although the cost ofactively recruiting manufacturing staff and investments in various measures increased compared to thecorresponding period of the previous fiscal year, the Group aimed to improve the efficiency of its
recruitment costs, etc., and as a result of these efforts, revenue and profits increased.
As a result, net sales amounted to 17,305 million yen (up 9.3% year-on-year), and operating profit
was 452 million yen (up 100.8% year-on-year).
（Other Businesses）
The Group operates nursing care businesses for its Other Businesses.
In the facilities nursing care business, which is the core business of this business segment, during
the period under review, the occupancy rate of the nursing care facility "Sweetpea Higashi Totsuka(Building 6) has remained at a high level of over 90%, as a result of promoting web-based facility
preview events on the premise of preventing the spread of COVID-19 infections. In addition, as aresult of efforts to improve profitability by reducing the cost of sales through initiatives toimprove the efficiency of labor costs and operating expenses, revenue and profits increased.
As a result, net sales amounted to 742 million yen (up 3.1% year-on-year), and operating profit was
18 million yen (which was an operating loss of 18 million yen in the corresponding period of theprevious year).

－3 －（２）Description of Financial Position（Assets）
Current assets at the end of the period under review amounted to 14,680 million yen, which was adecrease of 133 million yen from the end of the previous consolidated fiscal year. This was mainly due
to a decrease of 249 million yen in cash and deposits.
Non-current assets at the end of the period under review amounted to 6,681 million yen, which was adecrease of 136 million yen from the end of the previous consolidated fiscal year. This was mainly due
to a decrease of 116 million yen in "other" under the investments and other assets category.
As a result, total assets amounted to 21,361 million yen, which was a decrease of 269 million yen
from the end of the previous consolidated fiscal year.
（Liabilities）
Current liabilities at the end of the period under review amounted to 8,449 million yen, which was
an increase of 271 million yen from the end of the previous consolidated fiscal year. This was mainly
due to an increase of 213 million yen in accrued expenses.
Non-current liabilities at the end of the period under review amounted to 722 million yen, which was
an increase of 32 million yen from the end of the previous consolidated fiscal year. This was mainly
due to an increase of 43 million yen in net defined benefit liability.
As a result, total liabilities amounted to 9,171 million yen, which was an increase of 303 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 12,189 million yen, which was adecrease of 573 million yen from the end of the previous consolidated fiscal year. This was mainly due
to the 345 million yen in profit attributable to owners of parent, and 682 million yen in dividends ofsurplus.
As a result, the equity ratio was at 57.1% (which was at 59.0% at the end of the previous
consolidated fiscal year).
（３）Description of Future Forecast Information such as Consolidated Forecasts, etc.
Regarding the consolidated earnings forecast, there are no changes to the Consolidated Forecast for
the full year announced in the "Consolidated Financial Results for FY 3/2021" on May 12, 2021.

－

4 －２．Quarterly Consolidated Financial Statements and Notes（１）Quarterly Consolidated Balance Sheet（Unit: Million yen）
FY 3/21(As of Mar. 31, 2021)
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
Accrued expenses
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Other
Total current liabilities
Non-current liabilities
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
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets－

5 －1Q of FY 3/22
(Jun. 30, 2021)

5,873
8,094
850
(5)
14,813

5,624
8,162
899
(5)
14,680

1,799
2,704
150
4,654
305

1,812
2,696
150
4,659
280

1,876
(19)
1,857
6,817
21,631

1,759
(19)
1,740
6,681
21,361

4,541
494
950
2,191
8,178

4,755
96
530
4
3,062
8,449

345
344
689
8,868

388
333
722
9,171

2,015
2,368
8,674
(313)
12,744

2,015
2,368
8,103
(313)
12,1731
17
18
12,763
21,6311
14
16
12,18921,361

（２）Quarterly Consolidated Statements of Income and Comprehensive Income（Quarterly Consolidated Statement of Income）（First Quarter of FY 3/22）（Unit: Million yen）
1Q of FY 3/21
(Apr. 1, 2020 Jun. 30, 2020)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted forusing equity method
Subsidy income
House rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rent expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on sales of non-current assets
Directors' retirement benefits
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controllinginterests
Profit attributable to owners of parent－

6 －1Q of FY 3/22
(Apr. 1, 2021 Jun. 30, 2021)
16,557
14,197
2,360
2,154
206

18,04515,007
3,038
2,568
470

0
0

0
0

0

9

33
10
5
50

36
10
13
70

3
6
8
18
238

4
12
16
524

50
50
188
30
55
86
101

7
7
516
52
119
171
345

-

-

101

345

（Quarterly Consolidated Statement of Comprehensive Income）（First Quarter of FY 3/22）（Unit: Million yen）
1Q of FY 3/21
(Apr. 1, 2020 Jun. 30, 2020)
ProfitOther comprehensive income
Remeasurements of defined benefit plans, netof taxShare of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests－

7 －1Q of FY 3/22
(Apr. 1, 2021 Jun. 30, 2021)
101

345

0

(2)

(0)

(0)

0
102

(2)
342

102

342

-

-

（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.
（Changes in Accounting Policies）（Application of Accounting Standards for Revenue Recognition）"Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020. Hereinafterreferred to as "Revenue Recognition Accounting Standards") have been applied from the beginning of theperiod under review, and revenue is recognized at the amount expected to be received in exchange forthe promised goods or services when the control of those goods or services is transferred to clients.
The main changes resulting from the application of Revenue Recognition Accounting Standards are as
follows:（Human Resources Services Business）
Previously, although consideration paid to clients, such as rent, was treated as cost of sales, it
has been changed to a method of reducing it from the transaction price.
（Other Businesses）
In the past, the lump-sum payment received from a client in a nursing care facility's occupancy
contract was recognized as revenue after the expiration of the amortization period under the occupancy
contract. However, the method has been changed to recognize revenue over the period of residence inwhich the service is expected to be provided.
The application of the Revenue Recognition Accounting Standards is in accordance with thetransitional treatment set forth in the Revenue Recognition Accounting Standards No. 84. The
cumulative effect of retroactively applying the new accounting policy prior to the beginning of theperiod under review is added to or subtracted from retained earnings at the beginning of the period
under review, and the new accounting policy is applied from the beginning balance.
As a result, net sales for the period under review decreased by 59 million yen, cost of sales
decreased by 63 million yen, and operating profit, ordinary profit, and profit before income taxes
each increased by 4 million yen. In addition, the balance at the beginning of current period ofretained earnings decreased by 233 million yen. Furthermore, "other" under the current liabilities
category increased by 229 million yen at the end of the period under review.
In accordance with the transitional treatment set forth in Paragraph 28-15 of the "AccountingStandard for Quarterly Financial Statements" (ASBJ Statement No. 12, March 31, 2020), the revenue
generated from contracts with clients for the previous year's consolidated cumulative first quarter is
not presented.
（Additional Information）（Accounting Estimates Associated with the Spread of COVID-19 Infections）
There are no significant changes to the assumptions regarding the effects of the spread of COVID-19
infections described in the (Additional Information) of the Securities Report for the previous
consolidated fiscal year.

－

8 －（Significant Subsequent Events）（Acquisition of Company through Acquisition of Shares）
At the Board of Directors' Meeting held on August 10, 2021, the Company resolved to acquire the sharesof Vector Shinwa Co., Ltd. (hereinafter, the "Target Company") and make the Target Company a subsidiary.
The share transfer agreement was concluded on August 10, 2021, and the shares of the Target Company will
be acquired on August 31,2021 to make the Target Company a consolidated subsidiary.
１．Purpose of Share Acquisition
In the business environment surrounding the Group, although some of the effects of semiconductor
shortages remain, automobiles-related production remained firm, and electronic devices-related
production has also increased due to a vigorous increase in semiconductor demand. Regarding employment
conditions, although the number of employed persons has been more or less unchanged, the status ofoperations in the manufacturing industry are recovering, and the needs for utilizing external humanresources are also increasing for some manufacturers who are the Company's clients.
In such an environment, based on its mission of " Creating opportunities and hopes for people towork", the Group aims to create workplaces where workers can gain a sense of self-fulfillment andflourish, with human resources solution services that support the growth of companies and people, andto provide services that can respond to social changes and changes in industrial structures.
As the first step in the growth strategy for expanding existing areas announced in the Medium-termManagement Plan, the Company has decided to acquire all the shares of Vector Shinwa Co., Ltd., andmake it a subsidiary.
Based in Aichi Prefecture, Hiroshima Prefecture, and Fukuoka Prefecture, Vector Shinwa Co., Ltd.
focuses on human resources development with a slogan of "Minority Elite", and engages in a wide range
of operations such as designing, developing and manufacturing jigs and various production equipment,
dispatching human resources, and recruitment. The main pillar of Vector Shinwa's business iscontracting operations in the manufacturing industry, such as for semiconductors and precisionequipment.
With Vector Shinwa Co., Ltd. joining the Nisso Group, the Company believes that it will be able togrow together as a group by strengthening its business foundation and expanding its business inexisting areas such as manufacturing dispatching and contracting, which are the core businesses of theGroup.
Vector Shinwa will be able to utilize the resources of the Group, such as its client base,recruitment base, and education base, and by having the Company combine its resources with thetechnology and human resources development expertise that Vector Shinwa has cultivated so far, theCompany will be able to strengthen its service supply system and expand its business, enabling it torespond to the needs of not only existing clients of both companies, but also to a wider range ofclients. By doing so, the Company will contribute to the future of Japanese MONOZUKURI (manufacturing)in a wide variety of ways.
２．Overview of Target Company(1) Company name(2) Location(3) Representative(4) Business description(5) Capital(6) Date of establishment

Vector Shinwa Co., Ltd.
3-1 Ikehata, Chiryu City, Aichi
President & Representative Director Masao Kanemoto
General Human Resources Services Business78.25 Million JPY
June 24, 2004

３．Timing of Share Acquisition(1) Date of resolution of Board of Directors(2) Date of conclusion of share transfer agreement(3) Date of execution of share transfer

August 10, 2021
August 10, 2021
August 31, 2021 (Scheduled)

４．Number of Shares to be Acquired and Equity Ratio after Acquisition(1) Number of shares to be acquired
440 shares(2) Equity ratio after acquisition
100％
Furthermore, the Company will refrain from disclosing the name and acquisition price of thecounterparty to the share acquisition, as it is obligated to maintain confidentiality under the sharetransfer agreement. However, the Company has determined and agreed on a reasonable price calculated by
the Company based on objective criteria.
－

9 －