Consolidated Financial Results for the First Six Months of FY 3/2023 [Japanese GAAP]
November 7, 2022
Company Name
Securities CodeNISSO CORPORATION

Stock Exchange Listing: Tokyo

6569

ＵＲＬ

Representative(Title)Representative Director,
President & CEO（Name）Ryuichi Shimizu

Contact Person(Title)Sr. Executive Officer（Name）Kenichi Nomura ＴＥＬ +81-45-514-4323

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

Scheduled date of filing
Scheduled date ofNovember 11, 2022－
Quarterly Report
payment of dividend
Preparation of supplementary materials(Scheduled to be posted on the Company's website on November 7, 2022 (Mon.))for quarterly financial results: Yes
Holding of quarterly financial results (Scheduled to be held for institutional investors and analysts on November 10,
meeting: Yes
2022 (Thu.))（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, 2023
(April 1, 2022 – September 30, 2022)(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, 2022
September 30, 2021
(Note) Comprehensive income

Million yen％

43,162
36,694

17.6
11.3

Million yen％

First six months ended

September 30, 2022
September 30, 2021

Yen

Yen

10.22
17.28

(2) Consolidated financial position
Total assets
September 30, 2022
March 31, 2022

Million yen％

347 (40.9)
587 (1.6)

329 Million yen (-43.3%)
581 Million yen ( -2.7%)

Diluted net income
per share

10.22
17.30

As of

％

582 (35.9)
908 (8.2)

For the first six months ended September 30, 2022:
For the first six months ended September 30, 2021:

Net income per share(Reference) Equity capitalMillion yen

510 (38.1)
824
12.7

Net assets

Equity ratio

Million yen

Million yen％

27,904
27,462

13,546
13,55947.7
49.4

As of September 30, 2022:
As of March 31, 2022:

13,307 Million yen
13,559 Million yen

2. Dividends
Dividend per share
1Q-endFiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023
Fiscal year ending
March 31, 2023
(Forecast)

2Q-end3Q-endYear-end

Total

Yen

Yen

Yen

Yen

Yen

－

0.00

－

18.00

18.00

－

0.00
－

16.00

16.00

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

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2023
(April 1, 2022 – March 31, 2023)（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

88,600

14.2

2,700

29.4

2,700

13.9

1,800

6.1

52.95

(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
(Note) Although not applicable to changes in specified subsidiaries, Nikon Nisso Prime Corporation has
been included in the scope of consolidation from the consolidated cumulative second quarter.
(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:(4) Number of outstanding shares (Common stock)① Number of shares outstanding at
As of Sep.
the end of the period (including
30, 2022
treasury shares)②③

Number of treasury shares at theend of the period

As of Sep.

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

First six

30, 2022

months ended
Sep. 30, 2022

34,330,800 Shares

328,480 Shares

As of Mar.
31, 2022
As of Mar.
31, 2022

None
None
None
None

34,330,800 Shares

348,444 SharesFirst six
33,989,011 Sharesmonths ended

33,963,598 SharesSep. 30, 2021※

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, (4) Description of Future Forecast Information such as
Consolidated Forecasts, etc." on P. 5 of the attachments.
（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 10, 2022.
Quarterly financial results briefing materials to be used on that day will be posted on the Company's
website on the day of the announcement of financial results (Monday, November 7, 2022).

（Reference）Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2023
(April 1, 2022 – September 30, 2022)(1) Non-consolidated results of operations（Percentages represent year-on-year changes）
Net salesFirst six months ended

September 30, 2022
September 30, 2021

First six months ended

September 30, 2022
September 30, 2021

Operating profit

Ordinary profit

Million yen

Million yen

Million yen％

38,87533,98114.4
12.7

554 (35.7)
863
13.5

Net income per share

Diluted net income
per share

Yen

Yen

11.33
16.82

11.32
16.80

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

September 30, 2022
March 31, 2022
(Reference) Equity capital％

Quarterly net profit％

627 (29.3)
888 (9.1)

Net assets

Million yen％

385 (32.6)
571 (5.7)

Equity ratio

Million yen

Million yen％

24,88025,32912,681
12,89651.0
50.9

As of September 30, 2022:
As of March 31, 2022:

12,681 Million yen
12,896 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 ……………………………………………………………………………

5（３）Description of Cash Flows ………………………………………………………………………………………

5（４）Description of Future Forecast Information such as Consolidated Forecasts, etc. ………………

5

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

6（１）Quarterly Consolidated Balance Sheet ………………………………………………………………………

6（２）Quarterly Consolidated Statements of Income and Comprehensive Income ……………………………

7

Quarterly Consolidated Statement of Income
For the First Six Months ended September 30, 2022……………………………………………………

7

Quarterly Consolidated Statement of Comprehensive Income
For the First Six Months ended September 30, 2022……………………………………………………

8（３）Quarterly Consolidated Statements of Cash Flows …………………………………………………………

9（４）Notes regarding Quarterly Consolidated Financial Statements ………………………………………… 10（Notes regarding the Going Concern Assumption） …………………………………………………………

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

10（Additional Information） ………………………………………………………………………………………

10（Business Combinations, etc.）…………………………………………………………………………………

10

- 1 -

１．Qualitative Information on Quarterly Financial Results（１）Description of Results of Operations
Although Japan's economy has shown signs of recovery during the current consolidated cumulative
second quarter (hereinafter, the "period under review"), it is necessary to pay close attention to therisk that the prolonged situation in Ukraine and the downturn in overseas economies associated with
global monetary tightening will exert downward pressure on Japan's economy, as well as price increases
and supply-side constraints.
In such a business environment, based on its mission of "Creating opportunities and hopes for people
to work", the Nisso Group (hereinafter, the "Group") aims to create workplaces where workers can gain
a sense of self-fulfillment and flourish, with human resources solution services that support thegrowth of companies and people. In addition, the Group is promoting initiatives " To transform into a
corporate group with high-growth potential" in order to provide services that can respond to socialchanges and changes in industrial structures.
The Group defines materiality (key issues) for the realization of its mission as "Creation of acomfortable workplace", "Responding to social changes and changes in industrial structures", and"Strengthening of governance". The Group aims to enhance corporate value through the creation ofsocial value by promoting digitization (digitalization) and actively investing in human resources,
maximizing employee satisfaction and customer/client satisfaction, providing high value-added
services, and strengthening management structures and internal controls.
The results for the period under review are as follows:(Unit: Million yen)

Net sales
Operating profit
Ordinary profit
Profit attributable toowners of parent

FY 3/2022
Cons. cumulative 2nd Qtr.
(April 1, 2021 September 30, 2021)
Amount(YoY)
36,694(up 11.3%)
824(up 12.7%)908(down 8.2%)
587(down 1.6%)

FY 3/2023
Cons. cumulative 2nd Qtr.
(April 1, 2022 September 30, 2022)
Amount(YoY)
43,162(up 17.6%)
510(down 38.1%)
582(down 35.9%)
347(down 40.9%)

At NISSO CORPORATION (hereinafter, "the Company", non-consolidated), which is the core of the Group,
during the period under review, the number of enrolled manufacturing staff steadily increased to
15,730 (up 785 from the end of the previous consolidated fiscal year) as a result of responding to thevigorous human resources needs of its clients, manufacturers, and by increasing the number ofinterviewees by strengthening promotions such as TV commercials. In the automobile-related industry,
the utilization rate of manufacturing staff has improved, albeit moderately, and net sales amounted to
16,981 million yen (up 15.9% year-on-year). In the electronic devices-related industry, althoughdemand for components related to PCs and communications equipment declined, production has remained
high due to demand for semiconductors, and net sales amounted to 12,285 million yen (up 17.2% year-onyear). Also, the Company is striving to expand orders by actively developing sales activities centeredon Account Companies, who are important clients, and Account Companies accounted for 43.9% of theCompany's net sales. In addition, with the aim of providing high value-added services, the Company has
been developing human resources by utilizing 8 training facilities nationwide, and the total number ofparticipants trained, including manufacturing staff and engineers, was 1,945 (up 435 year-on-year). As
a result of promoting these initiatives, net sales per capita amounted to 418 thousand yen (which was
406 thousand yen in the corresponding period of the previous fiscal year), and the Company's net sales
increased by 14.4% year-on-year. On the other hand, in terms of profits, although there was anincrease in enrollment, the Company's operating profit decreased by 35.7% year-on-year due to thesignificant impact on operating hours as a result of continued parts shortages caused by supply chain
delays.
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
are expected to recover. On the other hand, in the event of an occurrence where individuals areaffected by the virus at its clients, workplaces or nursing care facilities, the Group may beaffected.

- 2 -The results of operations by segment are as follows:（General Human Resources Services Business）(Unit: Million yen)
FY 3/2022
Cons. cumulative 2nd Qtr.
(April 1, 2021 September 30, 2021)
AmountNet sales
Manufacturing・Production
Human Resources Services
Engineering Human Resources
Services
Administrative Human Resources
Services
Other Human Resources Services
Total
Segment profit

FY 3/2023
Cons. cumulative 2nd Qtr.
(April 1, 2022 September 30, 2022)
Amount(YoY)

31,43535,333(up

12.4%)

2,545

3,986

(up

56.6%)

1,197

1,146

(down

4.2%)

21
35,200805

1,198
41,665492(up
5,359.6%)(up
18.4%)(down
38.8%)(Note) 1. Net sales figures are shown after the elimination of internal transactions.
2. Net sales of Other Human Resources Services include net sales of Nikon Nisso Prime
Corporation from the current second quarter consolidated accounting period (hereinafter,the "second quarter").
Manufacturing・Production Human Resources Services (NISSO CORPORATION, Vector Shinwa Co., Ltd.)In the Manufacturing・Production Human Resources Services, the Group is mainly engaged in
manufacturing dispatching and manufacturing contracting, and will strengthen its service provisionsystem to clients and improve the share ratio of account clients in order to improve efficiency andstrengthen its earning power.
During the period under review, the number of enrolled staff amounted to 14,400 (up 1,076 year-onyear) by responding to the strong human resources needs of clients. In addition, as a result ofefforts to improve communication in order to create a comfortable workplace, the turnover rate of
employed workers remained at a low level of 4.0% (which was at 3.8% in the corresponding period of
the previous fiscal year). As a result, net sales per capita amounted to 413 thousand yen (which was
at 402 thousand yen in the corresponding period of the previous fiscal year), partly due to theeffect of increased enrollment, and revenue increased by 12.4% year-on-year.
Engineering Human Resources Services (NISSO CORPORATION, Vector Shinwa Co., Ltd.)In the Engineering Human Resources Services, the Group dispatches engineers mainly in the
manufacturing industry and provides SES (System Engineering Service), and it will continue to expand
the high value-added area and develop it into the next core business.
During the period under review, the number of enrolled engineers was 1,426 (up 525 year-on-year) byexpanding educational opportunities for employed workers, and the turnover rate remained at a low
level of 2.2% (which was at 1.7% in the corresponding period of the previous fiscal year). As aresult, net sales per capita amounted to 524 thousand yen (which was at 509 thousand yen in thecorresponding period of the previous fiscal year), and due to the effect of increased enrollment,
revenue increased by 56.6% year-on-year.
In addition, the Company has announced plans to open a training center in Kumamoto Prefecture inorder to respond to the shortage of human resources at semiconductor-related companies. By doing so,
the Company aims to increase the number of educational activities conducted for engineers.
Administrative Human Resources Services (Nisso Brain Co., Ltd.)In the Administrative Human Resources Services, the Group provides general office work dispatching
and BPO (Business Process Outsourcing), and is working to restructure services and develop new menus.
During the period under review, although the Group promoted recruitment activities centered on
public relations and customer attraction activities, due to sluggish growth in the number ofregistrants, the number of enrolled administrative dispatched staff amounted to 598 (down 30 year-on-- 3 -year).
Other Human Resources Services (Nikon Nisso Prime Corporation, Nisso Pure Co., Ltd.)In Other Human Resources Services, the Group is developing a model which will allow older employees
and employees with disabilities to flourish.
The Company acquired additional equity interest in Nikon Nisso Prime Corporation, an equity-method
affiliate, and made it a consolidated subsidiary on July 1, 2022. In addition to enhancing its humanresources dispatching business, the company concerned is working to support the active participationof older employees, develop, secure and build a structure for employment opportunities where such
employees can continue to work. The number of older employees employed during the period under review
was 531.
Nisso Pure Co., Ltd., a special-purpose subsidiary of the Company, aims to create a workplaceenvironment where diverse human resources can flourish. Rather than simply hiring employees withdisabilities, the Group is promoting activities that take advantage of the characteristics of eachindividual, such as being entrusted with light work by external clients, and aiming to coexist withlocal communities, including school officials, support organizations, and the government. The numberof employees with disabilities during the period under review was 208.
（Other Businesses）(Unit: Million yen)
FY 3/2022
Cons. cumulative 2nd Qtr.
(April 1, 2021 September 30, 2021)
AmountNet sales
Nursing Care・Welfare Services
Segment profit

1,494
20

FY 3/2023
Cons. cumulative 2nd Qtr.
(April 1, 2022 September 30, 2022)
Amount
(YoY)
1,497
18

(up 0.2%)(down 7.2%)(Note) Net sales figures are shown after the elimination of internal transactions.
Nursing Care・Welfare Services (Nisso Nifty Co., Ltd.)In the Nursing Care・Welfare Services, the Group provides facility nursing care and home-based
nursing care, and is working to restructure its provided services while developing new menus.
During the period under review, in the facility nursing care business, which is the mainstay ofthis service, the Group promoted Web previews and other activities on the premise of preventing the
spread of COVID-19 infections. The number of residents in the nursing care facilities has recovered
to 375 (down 7 year-on-year), and the occupancy rates at the facilities was 93.3% (which was at 95.0%
in the corresponding period of the previous fiscal year), a 0.2% increase in revenue year-on-year.

- 4 -（２）Description of Financial Position（Assets）
Current assets at the end of the current second quarter amounted to 19,648 million yen, which was anincrease of 580 million yen from the end of the previous consolidated fiscal year. This was mainly due
to an increase of 1,431 million yen in notes and accounts receivable (trade).
Non-current assets at the end of the current second quarter amounted to 8,256 million yen, which wasa decrease of 138 million yen from the end of the previous consolidated fiscal year. This was mainly
due to a decrease of 51 million yen in goodwill.
As a result, total assets amounted to 27,904 million yen, which was an increase of 442 million yen
from the end of the previous consolidated fiscal year.
（Liabilities）
Current liabilities at the end of the current second quarter amounted to 11,009 million yen, which
was an increase of 598 million yen from the end of the previous consolidated fiscal year. This was
mainly due to increases of 467 million yen in accrued expenses and 308 million yen in provision forbonuses.
Non-current liabilities at the end of the current second quarter amounted to 3,348 million yen,which was a decrease of 143 million yen from the end of the previous consolidated fiscal year. Thiswas mainly due to a decrease of 245 million yen in long-term loans payable.
As a result, total liabilities amounted to 14,358 million yen, which was an increase of 455 million
yen from the end of the previous consolidated fiscal year.
（Net assets）
Total net assets at the end of the current second quarter amounted to 13,546 million yen, which wasa decrease of 13 million yen from the end of the previous consolidated fiscal year. This was mainly
due to the 347 million yen in profit attributable to owners of parent, 611 million yen in dividends ofsurplus, and 238 million yen in non-controlling interests.
As a result, the equity ratio was at 47.7% (which was at 49.4% at the end of the previous
consolidated fiscal year).
（３）Description of Cash Flows
Cash and cash equivalents at the end of the current second quarter decreased by 846 million yen fromthe end of the previous consolidated fiscal year to 7,927 million yen.
The status of each cash flow for the period under review and their factors thereof are as follows:(Cash flows from operating activities)
Cash flows from operating activities amounted to expenditures of 96 million yen (compared toproceeds of 1,191 million yen in the corresponding period of the previous fiscal year), as proceeds of
582 million yen in profit before income taxes, etc., failed to absorb expenditures such as an increasein notes and accounts receivable (trade) of 767 million yen.
(Cash flows from investing activities)
Cash flows from investing activities amounted to proceeds of 113 million yen (compared to
expenditures of 1,302 million yen in the corresponding period of the previous fiscal year) due toproceeds of 251 million yen for proceeds from purchase of shares of subsidiaries resulting in change
in scope of consolidation, etc.
(Cash flows from financing activities)
Cash flows from financing activities amounted to expenditures of 863 million yen (compared to
expenditures of 713 million yen in the corresponding period of the previous fiscal year) due to
expenditures of 611 million yen for cash dividends paid, etc.
（４）Description of Future Forecast Information such as Consolidated Forecasts, etc.
With regards to the consolidated forecasts, there is no change to the Full-year Consolidated
Forecast announced in the "Consolidated Financial Results for FY 3/2022" on May 12, 2022.

- 5 -２．Quarterly Consolidated Financial Statements and Notes（１）Quarterly Consolidated Balance Sheet(Unit: Million yen)
FY 3/22(As of Mar. 31, 2022)

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
Goodwill
Other
Total 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
Contract liabilities
Provision for bonuses
Provision for directors' bonuses
Provision for shareholder benefit program
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
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets- 6 -2Q of FY 3/23
(As of Sep. 30, 2022)

8,779
9,390
902
(4)
19,068

7,933
10,822897(4)19,648

1,771
2,670
136
4,578

1,758
2,670
127
4,556

970
696
1,667

919
663
1,583

2,177
(28)
2,149
8,394
27,462

2,144
(27)
2,117
8,256
27,904

490
5,381
395
247
1,058
63
2,773
10,411

490
5,848
434
259
1,367
3
6
2,599
11,009

2,509
473
509
3,492
13,903

2,264
561
523
3,348
14,358

2,016
2,368
9,454
(298)
13,540

2,016
2,367
9,185
(281)
13,2870
17
18
13,55927,4620
19
20
238
13,54627,904

（２）Quarterly Consolidated Statements of Income and Comprehensive Income（Quarterly Consolidated Statement of Income）（For the First Six Months ended September 30, 2022
(Unit: Million yen)First six months
of FY 3/22
(Apr. 1, 2021 –Sep. 30, 2021)

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 for using
equity method
Subsidy income
House rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodRent expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on sales of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent- 7 -First six months
of FY 3/23
(Apr. 1, 2022 –Sep. 30, 2022)

36,69430,659
6,035
5,211
824

43,162
36,574
6,587
6,067
510

1
0

1
0

6

-

65
20
22
116

87
20
26
134

-

5

-

29

8

9

23
32
908

17
62
582

7
7
901
369
(55)
313
587
587

582
330
(76)
253
328
(18)
347

（Quarterly Consolidated Statement of Comprehensive Income）（For the First Six Months ended September 30, 2022
(Unit: Million yen)First six months
of FY 3/22
(Apr. 1, 2021 –Sep. 30, 2021)

ProfitOther comprehensive income
Remeasurements of defined benefit plans, net oftax
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 ofparentComprehensive income attributable to noncontrolling interests- 8 -First six months
of FY 3/23
(Apr. 1, 2022 –Sep. 30, 2022)

587

328

(5)

1

(0)

(0)

(5)
581

1
329

581

348

-

(18)

（３）Quarterly Consolidated Statements of Cash Flows(Unit: Million yen)First six months
of FY 3/22
(Apr. 1, 2021 –Sep. 30, 2021)
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for directors'
bonuses
Increase (decrease) in provision for bonuses
Decrease (increase) in net defined benefit asset
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for shareholder
benefit program
Loss (gain) on sales of non-current assets
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted forusing equity method
Decrease (increase) in notes and accounts receivable- tradeDecrease (increase) in lease and guarantee deposits
Increase (decrease) in accrued expenses
Increase (decrease) in accrued consumption taxes
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes refund
Income taxes paid
Cash flows from operating activities
Cash flows from investing activities
Purchase of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of shares of subsidiaries resulting inchange in scope of consolidation
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Other
Cash flows from investing activities
Cash flows from financing activities
Repayments of long-term loans payable
Repayments of lease obligations
Proceeds from issuance of common shares
Cash dividends paid
Cash flows from financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 9 -First six months
of FY 3/23
(Apr. 1, 2022 –Sep. 30, 2022)
901
137
-

582
129
56

7

(0)

-

3

88
(3)
86

192
5
87

-

(57)

7
(1)
-

(1)
5

(6)

29

182

(767)

6
142
81
(34)
1,595
1
2
(407)
1,191

22
142
(442)
218
207
1
(5)
11
(312)
(96)

(72)
1
(19)

(60)
(43)
(10)

(1,212)

-

-

251

0
(1,302)

(24)
113

(31)
0
(682)
(713)

(245)
(6)
(611)
(863)

-

-

(824)
5,873
5,048

(846)
8,773
7,927

（４）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）（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) section of the Annual Securities Report (inJapanese only) for the previous consolidated fiscal year.
（Business Combinations, etc.）
Business Combination by Acquisition
At the Board of Directors' Meeting held on May 19, 2022, the Company resolved to acquire
additional equity interest in Nikon Nisso Prime Corporation, an equity-method affiliate of theCompany, and make it a consolidated subsidiary, and on July 1, 2022, the Company acquired additional
equity interest in the company concerned and made it a consolidated subsidiary.
(1) Overview of Business Combination① Name of acquired company and its description of business
Name of Acquired Company
Nikon Nisso Prime Corporation
Description of Business
Human resources dispatching・recruitment
Human resources sharing business
Consignment/entrustment・contracting business
Planning, R&D, operation and support of structure development
and opportunity creation for seniors' continued employment② Main reasons for business combination
Nikon Nisso Prime Corporation was established in January 2020 as a joint venture between the
Company and Nikon Corporation in order to integrate the expertise of both companies and createsynergies through collaboration. Since then, Nikon Nisso Prime has been working to enhance thedispatching business, support the active participation of older employees of the Nikon Group, anddevelop, secure, and build a structure for employment opportunities where such employees cancontinue to work.
In addition, through cooperation with local governments, Nikon Nisso Prime Corporation is
promoting new initiatives, such as providing support for the realization of regional
revitalization by passing on the diverse experiences and knowledge of Nikon Nisso Prime's humanresources to local communities, and aims to further strengthen these initiatives.
③ Date of business combination
July 1, 2022
④ Legal form of business combination
Acquisition of shares with cash as consideration⑤ Name after business combination
The name has not been changed.
⑥ Percentage of voting rights acquired
Percentage of voting rights held immediately prior to business combination
Percentage of voting rights additionally acquired on date of business combination
Percentage of voting rights after acquisition⑦ Main reasons for determining acquisition of company
The Company acquired the voting rights of Nikon Nisso Prime Corporation, an equity-method- 10 -

49.0%
2.0%
51.0%

affiliate, through the acquisition of shares with cash as consideration.
(2) Period of Performance of the Acquired Company included in the Quarterly Consolidated Statement of
Income for the Quarterly Consolidated Cumulative Period
From April 1, 2022 to September 30, 2022
Since the acquired company was an equity-method affiliate, the results up to the first quarter
consolidated accounting period were recorded as "share of (profit) loss of entities accounted forusing equity method".
(3) Breakdown by Acquisition Cost and Type of Consideration of Acquired Company
Consideration for acquisition Market value of common stock of Nikon Nisso Prime
Corporation held immediately prior to businesscombination on date of business combination
Market value of common stock of Nikon Nisso Prime
Corporation additionally acquired on date ofbusiness combination
Acquisition cost

262 Million yen

10 Million yen
272 Million yen(4) Details and Amount of Major Acquisition-related Expenses
Remuneration, fees, etc. for advisory
1 Million yen(5) Difference Between Acquisition Cost of Acquired Company and Total Acquisition Cost for Each
Transaction that Led to Acquisition
Gain on step acquisitions
4 Million yen(6) Amount of Goodwill Generated, Cause of Occurrence, Amortization Method and Amortization Period① Amount of goodwill generated
5 Million yen② Cause of occurrence
Since the amount of net assets at the time of the business combination fell below theacquisition cost, the difference is recognized as goodwill.
③ Amortization method and amortization period
Due to its immateriality, the entire amount is amortized in a lump sum.
(7) Amount of Assets Accepted and Liabilities Assumed on Date of Business Combination and Main
Breakdown Thereof
Current assets
1,086 Million yen
Non-current assets
132
Total assets
1,219
Current liabilities
694
Total liabilities694- 11 -