Consolidated Financial Results for FY 3/2021〔Japanese GAAP〕
May 12, 2021
Company NameNISSO CORPORATION

Securities Code

6569

Representative(Title)Stock Exchange Listing:Tokyo

ＵＲＬ https://www.nisso.co.jp/
Representative Director,
President & CEO
Sr. Executive Officer（Name）Ryuichi Shimizu

Contact Person(Title)（Name）Norihiro Sekido
ＴＥＬ +81-45-514-4323
Scheduled date of Annual
Scheduled date ofGeneral Meeting ofJune 24, 2021
June 25, 2021
payment of dividend
Shareholders
Scheduled date of filing
June 25, 2021
Annual Securities Report
Preparation of supplementarymaterials for financial(Scheduled to be posted on the Company's website on May 12, 2021 (Wednesday))results: Yes
Holding of financial results(Scheduled to be held for institutional investors and analysts on May 14, 2021
meeting: Yes(Friday))（All amounts are rounded down to the nearest million yen）

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 - March 31, 2021)（Percentages represent year-on-year changes）(1) Consolidated results of operations
Net sales
Fiscal year ended
Mar. 31, 2021
Mar. 31, 2020

Operating profit

Profit attributable toowners of parent

Ordinary profit

Million yen％

Million yen％

Million yen％

Million yen％

68,21374,966

(9.0)
8.4

2,599
3,061

(15.1)
6.7

2,949
3,149

(6.4)
8.8

1,592
2,033

(21.7)(1.0)(Note) Comprehensive income

Fiscal year ended Mar. 31, 2021:
Fiscal year ended Mar. 31, 2020:

Net income per share
Fiscal year ended
Mar. 31, 2021
Mar. 31, 2020

1,690 Million yen ( -13.1%)
1,944 Million yen (3.6%)

Diluted net income per
share

Ratio of ordinary
Ratio of
Return on equity profit on total operating profit
assetson net sales

Yen

Yen

％

％

％

47.08
60.51

46.89
59.90

12.9
18.1

13.4
14.5

3.8
4.1

(Reference) Equity in earnings of affiliates

Fiscal year ended Mar. 31, 2021:
Fiscal year ended Mar. 31, 2020:

7 Million yen
34 Million yen(Note) The Company's common stock was split at a ratio of 2 shares for 1 share on May 1, 2019. Net income per share" and "diluted
net income per share" are calculated assuming that the shares were split at the beginning of the previous consolidated
fiscal year.

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

As ofMar. 31, 2021
Mar. 31, 2020

Million yen

Million yen％

Yen

21,631
22,494

12,763
11,89559.0
52.9

375.90351.84(Reference) Equity capital

As of Mar. 31, 2021:
As of Mar. 31, 2020:

12,763 Million yen
11,895 Million yen(3) Consolidated cash flows
Cash flows from operating Cash flows from investing Cash flows from financing Cash and cash equivalents
activities
activities
activities
at end of period
Million yen
Million yen
Million yen
Million yen
Fiscal year ended
Mar. 31, 2021
1,672
(496)
(1,668)
5,873
Mar. 31, 2020
1,922
(289)
(901)
6,365

2. Dividends
Dividend per share
1Q-end2Q-end3Q-endYear-end

Total

Fiscal year ended
Mar. 31, 2020
Mar. 31, 2021

Yen
－
－

Yen
0.00
0.00

Yen
－
－

Yen
25.00
20.10

Yen
25.00
20.10

Fiscal year ending
Mar. 31, 2022
(forecast)

－

0.00

－

18.00

18.00

Total dividends

Dividend payout
ratio(consolidated)

Million yen
845
682

Dividend on
equity(consolidated)

％
41.3
42.7

％
7.5
5.5

30.6

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 – March 31, 2022)(Percentages represent year-on-year changes)
Profit attributable to Net income
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Full year

Million yen％

Million yen％

Million yen％

Million yen％

Yen

76,000

11.4

3,000

15.4

3,000

1.7

2,000

25.6

58.90

※ Notes（１）Changes in the 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）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：（３）Number of outstanding shares（Common stock）① Number of shares outstanding at the
As of Mar.
end of the period （including
31, 2021
treasury shares）② Number of treasury shares at the end
As of Mar.
of the period
31, 2021

34,320,400

Shares

As of Mar.
31, 2020

366,381

Shares

As of Mar.
31, 2020

33,836,595

SharesFiscal year

③ Average number of shares outstanding
during the period

ended Mar.
31, 2021

None
None
None
None

34,201,200 Shares

390,853

SharesFiscal year
ended Mar.
31, 2020

33,598,989 Shares(Note) The Company's common stock was split at a ratio of 2 shares for 1 share on May 1, 2019. "Number of shares
outstanding at the end of the period", "number of treasury shares at the end of the period" and "average number ofshares outstanding during the period" are calculated assuming that the shares were split at the beginning of theprevious consolidated fiscal year.

（Reference）Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2021（April 1, 2020 - March 31, 2021）(1) Non-consolidated results of operations（Percentages represent year-on-year changes）
Net sales
Fiscal year ended
Mar. 31, 2021
Mar. 31, 2020

Operating profit

Ordinary profit

ProfitMillion yen％

Million yen％

Million yen％

Million yen％

62,54969,209

(9.6)
9.0

2,622
3,119

(15.9)
5.3

2,863
3,124

(8.3)
6.2

1,530
2,030

(24.6)(9.4)

Net income per share
Fiscal year ended
Mar. 31, 2021
Mar. 31, 2020

Diluted net income per
share

Yen

Yen

45.22
60.43

45.04
59.81

(Note) The Company's common stock was split at a ratio of 2 shares for 1 share on May 1, 2019. "Net income per share" and"diluted net income per share" are calculated assuming that the shares were split at the beginning of the previous fiscal
year.

(2) Non-consolidated financial position
Total assets
As ofMar. 31, 2021
Mar. 31, 2020
(Reference) Equity capital

Net assets

Equity ratio

Net assets per share

Million yen

Million yen％

Yen

19,811
20,024

11,955
11,24760.3
56.2

352.10332.68

As of Mar. 31, 2021:
As of Mar. 31, 2020:

11,955 Million yen
11,247 Million yen※

The current financial statement is not subject to audit procedures by certified public accountants or auditing
corporations.

※

Cautionary statement on the appropriate use of earnings forecasts, and other special items(Notes on forward-looking statements, etc.)
Earnings forecasts regarding future performance and other forward-looking statements in this material 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 be achieved. In addition, actual results may differ
significantly due to a variety of factors. For prerequisite conditions and precautions regarding the usage of
earnings forecasts, please refer to “1. Overview of Operating Results, (4) Future Prospects” on P. 5 of theattachments.
（Supplementary materials for financial results and method of obtaining content for financial results briefing）
Financial results briefing materials are scheduled to be posted on the Company's website on May 12, 2021
(Wednesday).
In addition, the Company is scheduled to hold a Financial Results Briefing (for institutional investors andanalysts) on May 14, 2021 (Friday).

○Contents of Attachments
１．Overview of Operating Results ………………………………………………………………………………………

2（１）Overview of Operating Results for the Current Fiscal Year ……………………………………………
（２）Overview of Financial Position for the Current Fiscal Year …………………………………………

2
3（３）Overview of Cash Flows for the Current Fiscal Year ……………………………………………………
（４）Future Prospects …………………………………………………………………………………………………

45（５）Basic Policy on Profit Distribution and Dividends for Current and Next Terms …………………
２．Basic Approach to the Selection of Accounting Standards ……………………………………………………

5
7

３．Consolidated Financial Statements and Notes ……………………………………………………………………
（１）Consolidated Balance Sheet ……………………………………………………………………………………

88（２）Consolidated Statements of Income and Comprehensive Income …………………………………………
Consolidated Statement of Income ……………………………………………………………………………

10
10

Consolidated Statement of Comprehensive Income …………………………………………………………
（３）Consolidated Statement of Changes in Equity ………………………………………………………………

1112（４）Consolidated Statement of Cash Flows ………………………………………………………………………
（５）Notes regarding Consolidated Financial Statements ………………………………………………………

14
15（Notes regarding Going Concern Assumption） ………………………………………………………………
(Additional Information) …………………………………………………………………………………………

15
15（Segment Information） ……………………………………………………………………………………………
（Per Share Information） …………………………………………………………………………………………

15
18（Significant Subsequent Events） ………………………………………………………………………………

18

－

1 －

１．Overview of Operating Results（１）Overview of Operating Results for the Current Fiscal Year
Although Japan's economy during the current consolidated fiscal year (hereinafter, the "period underreview") has been in a severe situation due to the effects of the spread of the new coronavirus (hereinafter,"COVID-19"),economic activity was affected by the effects of various policies and improvements in overseas
economies, while taking measures to prevent the spread of infections. Although there are signs of recovery,
it is necessary to pay close attention to the effects of fluctuations in the financial and capital markets.
As for the business environment surrounding the Nisso Group (hereinafter, the "Group") has been improving
as domestic manufacturers, who are NISSO CORPORATION's (hereinafter, the "Company") important clients,
have shown signs of recovery as mentioned above. As for the automobiles-related industry, production
remained firm, although there were effects such as temporary suspensions of operations due to the impactof the Fukushima earthquake that occurred in February 2021. With regard to the electronic devices industry,
production of electronic components and devices has been on a recovery trend against the backdrop ofincreased demand for IT as a result of 5G and changes in work-styles. In addition, in the employment
situation, movements such as the number of employees and other factors, have shown signs of resilience,and the needs of the Company's clients to utilize external human resources have also been increasing.
In this environment, based on its founding philosophy of "Nurturing and Bringing Out the Best in People",the Group will continue the following initiatives to realize the enhancement of its corporate value withthe aim of creating workplaces where employees can work with a sense of satisfaction and flourish, andprovide services that can contribute to its growth as a company.
In the period under review, in the manufacturing-related human resources services, which is the corebusiness of the Group, under the strategy of focusing on the assignment of "skilled staff", who areindefinite-term employees, to Account Companies, that are positioned as important clients, the Company
has been actively developing human resources by utilizing its own educational facilities to improve theskills and retention rates of its manufacturing staff.
In Other Businesses, the Group has been making efforts to improve its management structure by enhancing
the quality of services provided at "Sweetpea", its nursing care facilities located in 6 locations in
Yokohama, increasing the number of its residents, and promoting operational efficiency.
In addition, 399 million yen in subsidy income was generated from non-operating income. This was mainly
due to subsidies for employment adjustment associated with the spread of COVID-19.
In addition, extraordinary losses of 449 million yen were recorded. This was due to a loss on valuationof investment securities and a loss on retirement of non-current assets.
As a result, the results of operations for the period under review are as follows: net sales of 68,213
million yen (down 9.0% year-on-year), operating profit of 2,599 million yen (down 15.1% year-on-year),ordinary profit of 2,949 million yen (down 6.4% year-on-year), and profit attributable to owners of parent
amounted to 1,592 million yen (down 21.7% year-on-year).
Based on its policy of putting the safety of its clients and employees as a top priority, the Group has
established the "COVID-19 Countermeasures Headquarters" and is conducting business activities thatstrengthen measures to prevent the spread of COVID-19 infections. In addition, in nursing care facilities
in Other Businesses, although patients suffering from COVID-19 occurred to residents and employees inJanuary 2021, the Group has returned to normal business in February of the same year by thoroughly
implementing infection prevention measures.
The results of operations by segment are as follows:（General Human Resources Services Business）
Within the General Human Resources Services Business, the Company 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 businessrelated tasks to a [third-party] specialized company) for its administrative human resources services.
In manufacturing-related human resources services, the core business which accounted for 91.8% ofconsolidated net sales during the period under review, the Company has been making efforts to increase
the motivation of manufacturing staff to work, and improve the retention rate by implementing educationthat enhances added value, including the use of on-line education, etc., as well as its own educational－

2 －facilities. Net sales related to the automobiles industry have been on an increasing trend due to therecovery in overseas economies, and as a result of efforts to recover incoming order volumes, net sales
have improved. However, the Company failed to absorb the decline in demand in the first quarter
consolidated accounting period (April 1, 2020 to June 30, 2020), resulting in a 14.4% year-on-year
decrease in net sales. On the other hand, semiconductor-related production has remained firm due toinvestments in IT infrastructure, etc., and net sales related to the electronic devices industry
increased, resulting in a 3.2% year-on-year increase.
In addition, in the manufacturing-related human resources services for the period under review,
although net sales to Account Company Groups, which are positioned as important clients, decreased (down
372 million yen year-on-year), its ratio to the Company’s net sales was at 47.6% (which was at 45.9%
year-on-year). Furthermore, the demand for skilled staff with high skills and retention rates remained
strong, increasing by 186 staff compared to the end of the previous consolidated fiscal year.
However, in the period under review, despite efforts to reduce expenses such as recruitment costs,
the Company was not able to absorb the decreases in enrollment and net sales due to the effects of
COVID-19, resulting in decreased revenue and profits.
As a result, net sales amounted to 65,250 million yen (down 9.6% year-on-year), and operating profit
was 2,578 million yen (down 17.3% year-on-year).
（Other Businesses）
The Company operates nursing care and welfare businesses for its Other Businesses.
In the facilities nursing care business, which is the core business of this business segment, theoccupancy rate of the nursing care facility, "Sweetpea Higashi Totsuka" exceeded 90% during the period
under review as a result of promoting on-line facility preview events on the premise of preventing the
spread of COVID-19 infections. Revenues and profits increased as a result of efforts to reduce the costof sales and improve profitability through efforts such as streamlining labor and operating expenses.
As a result, net sales amounted to 2,972 million yen (up 6.3% year-on-year), and operating profit was
23 million yen (which was at a loss of 54 million yen in the corresponding period of the previous year).
（２）Overview of Financial Position for the Current Fiscal Year
（Assets）
Current assets at the end of the period under review amounted to 14,813 million yen, which was adecrease of 808 million yen from the end of the previous consolidated fiscal year. This was mainly due
to decreases of 491 million yen in cash and deposits, and 339 million yen in notes and accounts
receivable (trade).
Non-current assets at the end of the period under review amounted to 6,817 million yen, which was adecrease of 54 million yen from the end of the previous consolidated fiscal year. This was mainly due
to an increase of 76 million yen in net defined benefit asset, while leased assets and buildings andstructures decreased by 66 million yen and 52 million yen, respectively.
As a result, total assets amounted to 21,631 million yen, which was a decrease of 862 million yen
from the end of the previous consolidated fiscal year.
（Liabilities）
Current liabilities at the end of the period under review amounted to 8,178 million yen, which was adecrease of 1,100 million yen from the end of the previous consolidated fiscal year. This was mainly
due to decreases in accrued consumption taxes and income taxes payable of 741 million yen and 317
million yen, respectively.
Non-current liabilities at the end of the period under review amounted to 689 million yen, which wasa decrease of 629 million yen from the end of the previous consolidated fiscal year. This was mainly
due to a 623 million yen decrease in long-term loans payable.
As a result, total liabilities amounted to 8,868 million yen, which was a decrease of 730 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 12,763 million yen, which was an－

3 －increase of 867 million yen from the end of the previous consolidated fiscal year. This was mainly due
to an increase in retained earnings of 747 million yen as a result of the appropriation of 1,592
million yen in profit attributable to owners of parent, and the payment of 845 million yen in
dividends of surplus.
As a result, the equity ratio was 59.0% (which was at 52.9% at the end of the previous consolidated
fiscal year).
（３）Overview of Cash Flows for the Current Fiscal Year
Cash flows for the period under review are as follows: Net cash provided by operating activities was
1,672 million yen, net cash used in investing activities was 496 million yen, and net cash used infinancing activities was 1,668 million yen.
As a result, cash and cash equivalents for the period under review decreased by 491 million yen to5,873 million yen compared to the balance at the beginning of the current period.
The status and contributing factors of cash flows from operating, investing and financing activities
in the period under review are as follows:（Cash flows from operating activities）
Net cash provided by operating activities amounted to 1,672 million yen (which was an inflow of
1,922 million yen in the previous consolidated fiscal year), as a result of an inflow of 2,500 in
profit before income taxes, which absorbed outflows such as 1,247 million yen in income taxes paid.
（Cash flows from investing activities）
Net cash used in investing activities amounted to 496 million yen (which was an outflow of 289
million yen in the previous consolidated fiscal year), as a result of outflows such as 310 million yen
in purchase of securities, 93 million yen in purchase of property, plant and equipment, and 97 million
yen in purchase of intangible assets.
（Cash flows from financing activities）
Net cash used in financing activities amounted to 1,668 million yen (which was an outflow of 901
million in the previous consolidated fiscal year), as a result of outflows such as 845 million yen in
cash dividends paid and 750 million yen in repayments of long-term loans payable.

－

4 －（４）Future Prospects
With regard to future prospects, there are concerns about temporary delay in the automobiles-relatedindustry production due to the spread of COVID-19 and the shortage of semiconductors. In addition, due totechnological innovations such as DX, a decrease in the labor force due to the declining birthrate andaging population, changes in worker demand and the diversification of work-styles have led to rapid andcomplex changes in the business environment, and management decisions will be required to be expedited.
Under these circumstances, based on its mission of "Creating opportunities and hopes for people to work"in its newly created Medium-term Management Plan, the Group aims to create workplaces where employees canfeel a sense of satisfaction and flourish with human resources solution services that support the growthof companies and people, as well as to provide services that can respond to social changes and changes inindustrial structures. In order "to transform into a corporate group with high growth potential", theGroup will promote the following initiatives.
In the Group's core business of Manufacturing-related Human Resources Services, the Group will increase
profitability by increasing investment in promotions in existing areas such as manufacturing dispatching
and contracting, hiring a large number of human resources, improving added value by training workers, andstrengthening the service system to its clients such as Account Companies. In addition, in the Engineering
Business, the Group will expand its business by providing high-quality curriculums to a large number ofhuman resources while introducing new digital technologies in addition to existing educational expertise.
Furthermore, in New Businesses, although the Company has provided services that provide job seekers with
employment destinations and skills improvement through education, it will also provide services to otherlife stages such as job-hunting, career changes, and re-employment after retirement. To that end, theGroup will actively invest in the introduction of new digital technologies such as AI and the building of
new partnerships to create businesses that have synergies with the Group.
In Other businesses, the Group will maintain a high occupancy rate by improving the quality of services
provided by its nursing care facilities, "Sweetpea", which are located in 6 locations throughout Yokohama.
In addition, the Group will continue to make efforts to improve its management structure, such as promoting
the efficiency of its operations, in order to build a stable revenue base.
The Group will strengthen its measures to prevent the spread of COVID-19 and promote its businessactivities with the safety of its clients and employees as its top priority. Despite delays in vaccinationsin Japan, the Group's business performance is expected to remain firm, as the status of orders received
by clients is also showing a recovery trend. On the other hand, it can have an impact in the event ofcases such as the occurrence of affected persons at the Group's clients, workplaces, or its nursing carefacilities.
Based on the above, the Company expects full-year consolidated results for the fiscal year ending March
31, 2022, as follows: net sales of 76,000 million yen (up 11.4% year-on-year), operating profit of 3,000
million yen (up 15.4% year-on-year), ordinary profit of 3,000 million yen (up 1.7% year-on-year), andprofit attributable to owners of parent of 2,000 million yen (up 25.6% year-on-year).
※The above forecasts are based on information available as of the date of release of this document, andactual results may differ from forecasts due to various factors in the future.
（５）Basic Policy on Profit Distribution and Dividends for Current and Next Terms
The Company considers the redistribution of profits to shareholders and the enhancement of corporate
value as key management issues, taking into consideration the balance between securing funds for growthinvestments and strengthening the corporate structure that can respond to changes in the businessenvironment. In addition, by setting the consolidated dividend payout ratio of 30% as a generalstandard, the Company's basic policy is to continue to steadily redistribute profits to all of its
shareholders.
Furthermore, although the Company considers the year-end dividends as a general principle, theArticles of Incorporation stipulate that it is possible to distribute dividends of surplus twice a year
as interim dividends and year-end dividends in order to enhance the redistribution of profits toshareholders. As the decision-making body, the Board of Directors is determined to make it possible toflexibly carry out the payment of interim dividends while taking into consideration performance trends
and other factors.
－

5 －In accordance with the above policy, the dividend for the fiscal year ended March 31, 2021 isscheduled to be a payment of 20.10 yen per share (consolidated dividend payout ratio of 42.7%), which
includes an addition of a commemorative dividend of 5.00 yen to the ordinary dividend of 15.10 yen.。
In addition, for the fiscal year ending March 31, 2022, the Company is scheduled to pay a dividend of
18.00 yen per share (consolidated dividend payout ratio of 30.6%).

－

6 －２．Basic Approach to the Selection of Accounting Standards
Since many of the stakeholders are domestic shareholders, creditors, business partners, etc., and due tothe lack of funding from overseas, the Group has applied generally accepted accounting principles inJapan.

－

7 －３．Consolidated Financial Statements and Notes（１）Consolidated Balance Sheet(Unit: Million yen)
FY 3/20（As of Mar. 31, 2020）
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Leased assets
Other
Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets－

8 －FY 3/21（As of Mar. 31, 2021）

6,365
8,434
562
264
(4)
15,622

5,873
8,094
566
284
(5)
14,813

5,387(3,535)
1,852
2,738
521
(357)
164
4,754

5,248
(3,448)
1,799
2,704
522
(372)
150
4,654

121
255
377

55
249
305

241
658
474
365
(0)
1,739
6,871
22,494

263
676
466
76
393
(19)
1,857
6,817
21,631

(Unit: Million yen)
FY 3/20（As of Mar. 31, 2020）
Liabilities
Current liabilities
Current portion of long-term loans payable
Lease obligations
Accrued expenses
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
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
incomeTotal net assets
Total liabilities and net assets－

9 －FY 3/21（As of Mar. 31, 2021）

126
78
4,648
812
1,904
879
829
9,279

55
4,541
494
1,163
950
972
8,178

623
68
303
324
1,319
10,598

12
345
332
689
8,868

2,012
2,369
7,926
(334)
11,974

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

1
(79)

1
17

(78)

18

11,89522,494

12,763
21,631

（２）Consolidated Statements of Income and Comprehensive Income（Consolidated Statement of Income）(Unit: Million yen)
FY 3/20(Apr. 1, 2019 –Mar. 31, 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
Loss on cancellation of rental contracts
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales of investment securities
Loss on valuation of investment securities
Directors' retirement benefits
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
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

－

10 －

FY 3/21(Apr. 1, 2020 –Mar. 31, 2021)
74,96661,85013,115
10,054
3,061

68,21356,426
11,787
9,188
2,599

3
3

3
0

34

7

53
35
30
160

399
40
35
487

14
22
34
71
3,149

11
26
27
71
136
2,949

121
121

-

3
152
155
3,115
1,144
(61)
1,082
2,033

296
50
18
32
51
449
2,500
943
(35)
907
1,592

-

-

2,033

1,592

（Consolidated Statement of Comprehensive Income）(Unit: Million yen)
FY 3/20(Apr. 1, 2019 –Mar. 31, 2020)
ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
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

－

11 －

FY 3/21(Apr. 1, 2020 –Mar. 31, 2021)
2,033

1,592

(41)

-

(47)

97

(0)

0

(88)
1,944

97
1,690

1,944

1,690

-

-

（３）Consolidated Statement of Changes in Equity
FY 3/20 (Apr. 1, 2019 - Mar. 31, 2020)(Unit: Million yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodIssuance of new shares –(exercise of shareacquisition rights）

Capital surplus

Retained earnings

2,006

2,357

6

6

6,514

Total shareholders'equityTreasury shares(342)

10,535

12

Dividends of surplus

(620)

(620)

Profit attributable toowners of parent

2,033

2,033

Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period

6

(0)

(0)

8

14

6

12

1,412

7

1,439

2,012

2,369

7,926

(334)

11,974

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodIssuance of new shares (exercise of shareacquisition rights）

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurements ofdefined benefit
plans

Total accumulated
othercomprehensive
income

41

1

(32)

9

Total net assets

10,544

12

Dividends of surplus(620)

Profit attributable toowners of parent

2,033

Purchase of treasury
shares(0)

Disposal of treasury
shares14

Net changes of items
other than shareholders'equity）
Total changes of items
during period
Balance at end of current
period

(41)

(0)

(47)

(88)

(88)

(41)

(0)

(47)

(88)

1,350

-

1

(79)

(78)

11,895－12 －FY 3/21 (Apr. 1, 2020 - Mar. 31, 2021)(Unit: Million yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodIssuance of new shares (exercise of shareacquisition rights）

Capital surplus

Retained earnings

2,012

2,369

3

3

7,926

Treasury shares(334)

Total shareholders'equity11,974

6

Dividends of surplus

(845)

(845)

Profit attributable toowners of parent

1,592

1,592

Purchase of treasury
shares-

Disposal of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period

(4)

20

16

3

(1)

747

20

770

2,015

2,368

8,674

(313)

12,744

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodIssuance of new shares (exercise of shareacquisition rights）

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurements ofdefined benefit
plans

Total accumulated
othercomprehensive
income

-

1

(79)

(78)

Total net assets

11,895

6

Dividends of surplus(845)

Profit attributable toowners of parent

1,592

Purchase of treasury
shares-

Disposal of treasury
shares16

Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period

0

97

97

97

-

0

97

97

867

-

1

17

18

12,763－13 －（４）Consolidated Statement of Cash Flows(Unit: Million yen)
FY 3/20(Apr. 1, 2019 –Mar. 31, 2020)
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Decrease (increase) in net defined benefit asset
Increase (decrease) in net defined benefit
liability
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Loss (gain) on sales of securities
Loss (gain) on valuation of securities
Impairment loss
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted forusing equity method
Decrease (increase) in notes and accounts
receivable - trade
Decrease (increase) in lease and guarantee
deposits
Increase (decrease) in accrued expenses
Increase (decrease) in accrued consumption taxes
Other, net
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
Proceeds from sales of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Other, net
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
Purchase of treasury 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

－

14 －

FY 3/21(Apr. 1, 2020 –Mar. 31, 2021)

3,115
303

2,500
288

(6)

20

140
(4)

71
(51)

120

156

(117)
152
(6)
14

18
32
296
51
(4)
11

(34)

(7)

(676)

339

2

(18)

(100)
485
(383)
3,004
6
(17)
0
(1,072)
1,922

(106)
(741)
65
2,924
4
(11)
3
(1,247)
1,672

(190)
210
(122)

(310)
(93)

-

3

(187)
0
(289)

(97)
1
(496)

(183)
(110)
12
(0)
(620)
(901)

(750)
(78)
6
(845)
(1,668)

-

-

731

(491)

5,633
6,365

6,365
5,873

（５）Notes regarding Consolidated Financial Statements（Notes regarding Going Concern Assumption）
Not applicable.
（Additional Information）（Accounting Estimates Associated with the Spread of COVID-19 Infections）
Although it is difficult to accurately predict the timing of the convergence of COVID-19 infections,the Company assumes that the impact of the spread of COVID-19 infections on the Group's business inthe period under review has been limited, and therefore, it is assumed that the impact will be limitedin the future.
Accounting estimates in the period under review (determination of recoverability of deferred tax
assets, determination of impairment loss on non-current assets) are based on forecasted figures thattake this assumption into account.
In the event that the economic environment changes due to the spread of COVID-19 infections, theGroup's financial condition and business results may be affected.
（Segment Information）
１．Overview of reportable segments
The reportable segments of the Group are constituent units for which separate financial information
is available, and are evaluated regularly by the Board of Directors to determine the allocation ofmanagement resources and assess performance.
The Group is comprised of segments classified according to the content of the businesses, and its 2reportable segments are the "General Human Resources Service Business" and "Other Businesses".
２．Calculation methods for net sales, profits or losses, assets, liabilities, and other items for eachreportable segment
The accounting methods used for reportable segments are the same as those adopted for the
preparation of the consolidated financial statements.
Profits for reportable segments are based on operating profit figures.
Inter-segment sales or transfers are based on prevailing market prices.
３．Information related to net sales, profits or losses, assets, liabilities, and other items for eachreportable segment
FY 3/20 (Apr. 1, 2019 - Mar. 31, 2020)(Unit: Million yen)Amounts shown on
Consolidated
Statement of
Income（Note）２

Reportable Segments
General Human
Resources
Service Business

Other
Businesses

Adjustments（Note）１

Subtotal

Net sales

72,1702,796

74,966-74,966

7

-

7

(7)

-

72,1782,796

74,974(7)

74,966

Segment profit (loss)

3,117

(54)

3,063

(2)

3,061

Segment assets

20,715

1,819

22,535(41)

22,494

Depreciation

289

6

296

7

303

Investment in equity-method
affiliates

226

-

226

-

226

284

0

285

-

285

Sales to external clientsInter-segment sales ortransfers
Total

Other items

Increase in property, plantand equipment andintangible assets

－

15 －

（Note）１．The adjustments are as follows:（１）The adjustments on segment profit (loss) of (2) million yen are eliminations of inter-segment
transactions.
（２）The adjustments on segment assets of (41) million yen are eliminations of transactions.
（３）The adjustments on depreciation of 7 million yen is the depreciation not included in segment profit(loss).
２．Segment profit (loss) is adjusted with operating profit on the Consolidated Statement of Income.

FY 3/21 (Apr. 1, 2020 - Mar. 31, 2021)(Unit: Million yen)Amounts shown on
Consolidated
Statement of
Income（Note）２

Reportable Segments
General Human
Resources
Service Business

Other
Businesses

Adjustments（Note）１

Subtotal

Net sales

65,2402,972

68,213-

68,213

10

-

10

(10)

-

65,2502,972

68,223(10)

68,213

Segment profit (loss)

2,578

23

2,602

(3)

2,599

Segment assets

20,572

1,834

22,406(774)

21,631

Depreciation

274

5

280

7

288

Investment in equity-method
affiliates

234

-

234

-

234

192

-

192

-

192

Sales to external clientsInter-segment sales ortransfers
Total

Other items

Increase in property, plantand equipment andintangible assets（Note）１．The adjustments are as follows:（１）The adjustments on segment profit (loss) of (3) million yen are eliminations of inter-segment
transactions.
（２）The adjustments on segment assets of (774) million yen are eliminations of transactions.
（３）The adjustments on depreciation of 7 million yen is the depreciation not included in segment profit(loss).
２．Segment profit (loss) is adjusted with operating profit on the Consolidated Statement of Income.

－

16 －

【Related Information】
FY 3/20 (Apr. 1, 2019 - Mar. 31, 2020)
１．Information by product and service(Unit: Million yen)
Manufacturingrelated Human
Resources Services
Sales to external clients

Administrative
Human Resources
Services

69,275

Other

2,895

Total

2,796

74,966

２．Information by region(1）Net sales
Since net sales to external clients in Japan exceed 90% of net sales on the consolidated
statement of income, the description has been omitted.
(2）Property, plant and equipment
This has not been listed since there are no property, plant and equipment locatedoutside Japan.
３．Information by main clients
Since there is no other party that accounts for 10% or more of the net sales on the
consolidated statement of income, this has not been listed.
FY 3/21 (Apr. 1, 2020 - Mar. 31, 2021)
１．Information by product and service(Unit: Million yen)
Manufacturingrelated Human
Resources Services
Sales to external clients

Administrative
Human Resources
Services

62,586

Other

2,654

Total

2,972

68,213

２．Information by region(1）Net sales
Since net sales to external clients in Japan exceed 90% of net sales on the consolidated
statement of income, the description has been omitted.
(2）Property, plant and equipment
This has not been listed since there are no property, plant and equipment locatedoutside Japan.
３．Information by main clients
Since there is no other party that accounts for 10% or more of the net sales on the
consolidated statement of income, this has not been listed.
【Information on impairment loss on non-current assets by reporting segment】
FY 3/20 (Apr. 1, 2019 - Mar. 31, 2020)(Unit: Million yen)
General Human Resources
Service BusinessImpairment loss

Other Businesses

152

Total

-

152

FY 3/21 (Apr. 1, 2020 - Mar. 31, 2021)(Unit: Million yen)
General Human Resources
Service BusinessImpairment loss

Other Businesses

51
－

17 －

Total

-

51

【Information on amortization of goodwill and unamortized balances by reporting segment】
The description has been omitted due to its lack of materiality.
【Information on negative goodwill gains by reporting segment】
Not applicable.
（Per Share Information）
FY 3/20(Apr. 1, 2019 –Mar. 31, 2020)

FY 3/21(Apr. 1, 2020 –Mar. 31, 2021)

Net assets per share

351.84 Yen

375.90 Yen

Net income per share

60.51 Yen

47.08 Yen

Diluted net income per share

59.90 Yen

46.89 Yen

(Note) 1. By the resolution of the Board of Directors on March 15, 2019, the Company's common stock was split at aratio of 2 shares for 1 share on May 1, 2019. Net assets per share, net income per share, and diluted net
income per share are calculated assuming that the stock split was made at the beginning of the previous
consolidated fiscal year.
2. The basis for the calculation of net income per share and diluted net income per share is as follows:

FY 3/20(Apr. 1, 2019 –Mar. 31, 2020)

FY 3/21(Apr. 1, 2020 –Mar. 31, 2021)

2,033

1,592

-

-

2,033

1,592

33,598,989

33,836,595--

343,751

131,584（343,751）（131,584）－－

Net income per share
Profit attributable to owners of parent（Million yen）
Amount not attributable to commonshareholders（Million yen）
Profit attributable to owners of parent
related to common shares（Million yen）
Average number of common shares outstanding
during the period（Shares）

Diluted net income per share
Profit attributable to owners of parent
adjustment（Million yen）
Increase in number of common shares（Shares）（Share acquisition rights（Shares））
Since there is no dilution effect, summary ofpotentially dilutive shares not included in
the calculation of diluted net income per
share（Significant Subsequent Events）
Not applicable.

－

18 －