Summary of Consolidated Financial Results for the First Six Months of FY 3/2020[Japanese GAAP]
Company Name
Securities CodeNISSO CORPORATION
6569
ＵＲＬ https://www.nisso.co.jp/

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

President (CEO) &November 6, 2019
Stock Exchange Listing: Tokyo（Name）Takuo Yabana

Representative Director
Managing Director（Name）Shinichi Matsuo
Scheduled date ofNovember 13, 2019

ＴＥＬ 045-514-4323－

payment of dividend

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

1. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2020
(April 1, 2019 – September 30, 2019)(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

Million yen％

Million yen％

Million yen％

Million yen％

September 30, 2019
September 30, 2018

36,79732,783

12.2
－

1,128
915

23.2
－

1,154
930

24.0
－

785
588

33.5
－

(Note) Comprehensive income

For the first six months ended September 30, 2019:
For the first six months ended September 30, 2018:

Net income per share

741 Million yen (24.3 %)597 Million yen ( - %)Diluted net income
per shareFirst six months ended

Yen

Yen

September 30, 2019
September 30, 2018

23.39
17.63

23.14
17.14

（Note）１．Since the Company did not prepare quarterly consolidated financial statements for the first six months of FY 3/2018,
the ratio of year-on-year changes to the first six months of FY 3/2019 are not listed.
２．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
As of

September 30, 2019
March 31, 2019
(Reference) Equity capital

Net assets

Equity ratio

Million yen

Million yen％

20,01121,01910,681
10,54453.4
50.2

As of September 30, 2019:
As of March 31, 2019:

10,681 Million yen
10,544 Million yen

2. Dividends
Dividend per share
1Q-endFiscal year ending
March 31, 2019
Fiscal year ending
March 31, 2020
Fiscal year ending
March 31, 2020
(Forecast)

2Q-end3Q-endYear-end

Total

Yen

Yen

Yen

Yen

Yen

－

0.00

－

37.00

37.00

－

0.00
－

25.00

25.00

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

The Company's common stock was split at a ratio of 2 shares for 1 share on May 1, 2019. However, the actual dividend
amount before the stock split is listed for the FY 3/2019 dividends.

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2020
(April 1, 2019 – March 31, 2020)（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

80,000

15.7

3,900

35.9

4,000

38.1

2,760

34.4

82.19

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

※

Notes
(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting inchanges in the scope of consolidation): None
Newly added: （Co. name）, Excluded: （Co. name）(2) Application of special accounting methods for the presentation of quarterly consolidated financial
statements: None
(3) Changes in accounting policies and accounting estimates, and restatements① Changes in accounting policies due to revisions in accounting standards, etc.:② Changes in accounting policies other than ① above:③ Changes in accounting estimates:④ Restatements:

None
None
None
None

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

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

As of Sep.
30, 2019
As of Sep.
30, 2019

33,977,200 Shares

390,772 SharesFirst sixmonths ended
Sep. 30, 2019

As of Mar.
31, 2019
As of Mar.
31, 2019

33,961,200 Shares

400,174

SharesFirst six
33,574,276 Sharesmonths ended

33,365,286 SharesSep. 30, 2018

（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 numberof shares outstanding during the period" are calculated assuming that the shares were split at the beginning of
the previous consolidated fiscal year.

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

Cautionary statement on the appropriate use of earning forecasts, and other special items（Notes on forward-looking statements, etc.）
・ Earnings forecasts regarding future performance and other forward-looking statements in thismaterial are based on certain assumptions judged to be valid and on information that is currently
available to the Company, and do not represent promises by the Company that these figures will beachieved. In addition, actual results may differ significantly due to a variety of factors. For
prerequisite conditions, etc. regarding the earnings forecasts, please refer to "1. Qualitative
Information on Quarterly Financial Results, (3) Description of Future Forecast Information such as
Consolidated Forecasts, etc." on P.4 of the attachments.
・ The average number of shares outstanding during the period, which is the basis for the calculationof "net income per share" listed under the FY 3/2020 consolidated forecast, is calculated byreflecting the number of increase in shares due to the exercising of share acquisition rights up
until the second quarter of the current fiscal year.
（Supplementary materials for quarterly financial results and method of obtaining content for quarterly
financial results meeting）
The Company is planning to hold a briefing session for institutional investors and analysts on Monday,
November 11, 2019.
Quarterly financial results materials to be used on that day will be posted on the Company's website
promptly after the meeting.

（Reference）Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2020
(April 1, 2019 – September 30, 2019)(1) Non-consolidated results of operations）（Percentages represent year-on-year changes）
Net salesFirst six months ended

September 30, 2019
September 30, 2018

Operating profit

Ordinary profit

Quarterly net profit

Million yen％

Million yen％

Million yen％

Million yen％

33,95529,969

13.3
－

1,131
977

15.8
－

1,136
983

15.6
－

777
629

23.5
－

Net income per share

Diluted net income
per shareFirst six months ended

Yen

Yen

September 30, 2019
September 30, 2018

23.14
18.86

22.89
18.33

（Note）１．Since the Company did not prepare quarterly financial statements for the first six months of FY 3/2018, the ratio ofyear-on-year changes to the first six months of FY 3/2019 are not listed.
２．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 of

September 30, 2019
March 31, 2019
(Reference) Equity capital

Net assets

Equity ratio

Million yen

Million yen％

17,592
18,482

9,982
9,852

56.7
53.3

As of September 30, 2019:
As of March 31, 2019:

9,982 Million yen
9,852 Million yen

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

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

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

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

4

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

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

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

6

Quarterly Consolidated Statement of Income
For the First Six Months ended September 30, 2019 ……………………………………………………

6

Quarterly Consolidated Statement of Comprehensive Income
For the First Six Months ended September 30, 2019 ……………………………………………………

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

－

1 －

１．Qualitative Information on Quarterly Financial Results（１）Description of Results of Operations
Japan's economy during the current consolidated cumulative second quarter (hereinafter, the "period
under review") continued to recover moderately, partly due to firm corporate profits and steady
improvement in employment conditions, despite continued weaknesses in exports and production. On theother hand, it is necessary to pay close attention to developments in overseas economies such as thetensions over trade issues, the outlook for the Chinese economy, the direction of the UK's withdrawal
from the European Union, as well as the effects of fluctuations in financial and capital markets.
As for the business environment surrounding the Nisso Group (hereinafter, the "Group"), theproduction of domestic manufacturers, who are NISSO CORPORATION's (hereinafter, the "Company")
important clients, has remained firm in the transportation machinery industry (mainly automobiles),and although the electronic components・device industry has showed signs of bottoming out, overseas
economic trends, such as the Chinese economy, should be closely monitored. Also, in terms of
employment conditions, although the effective opening-to-application ratio of jobs has declined
recently as the number of new job openings remains flat, it continues to be high. On the other hand,the demand for external human resources remains firm.
In this environment, the Group has formulated a medium-term management plan for the fiscal year
ending March 31, 2020 to the fiscal year ending March 31, 2022 under the founding philosophy of"Nurturing and Bringing Out the Best in People", and in order to achieve the mission of "Becoming theLeader in Absolute Evaluation in the Manufacturing-related Human Resources Business Field", theCompany is striving to further evolve the NISSO Medium-term Growth Cycle, as well as expanding
business performance and improving profitability.
In the period under review, with regards to the manufacturing-related human resources services
business, which is the flagship of the General Human Resources Services Business, the Company has
focused on assigning "skilled staff", who are indefinite-term employees with high retention rates, to"Account Companies", who are important clients, and enabling them to advance their skills, which has
resulted in the enhancement of the provided services and the improvement of customer satisfaction.
Furthermore, in terms of recruiting, by utilizing the big data of human resources, the Company has
achieved an increase in the number of assigned staff while suppressing recruitment costs. In addition,by actively utilizing its 9 training facilities located throughout Japan, the Company has put into
practice education that contributes to the improvement of profits.
Meanwhile, in Other Businesses, although investment costs were incurred as a result of the openingof its 6th nursing care facility, "Sweetpea Higashi Totsuka", which was opened in Yokohama on March 1,
2018, in the period under review, the Company has strived to improve the quality of its nursing careservices, to improve customer satisfaction, and to secure the number of its residents.
As a result, the results of operations for the period under review are as follows: net sales of
36,797 million yen (up 12.2% year-on-year), operating profit of 1,128 million yen (up 23.2% year-onyear), ordinary profit of 1,154 million yen (up 24.0% year-on-year), and profit attributable to ownersof parent amounted to 785 million yen (up 33.5% year-on-year).
The results of operations by segment are as follows:（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 business-related tasks to a [third-party] specialized company) for its administrative humanresources services.
In manufacturing-related human resources services, which is the core business of this businesssegment, in order to enhance the provided services, in the period under review, the Company has
utilized its training facilities, and has nurtured and trained human resources who can be active inthe fields of automobiles, electrical devices, precision and electrical machinery, etc. The Company isactively investing in training facilities to create an environment where the use of semiconductor
manufacturing equipment, as well as the assembly, painting and inspection of automobiles can bepracticed in the same way as in clients' production sites. By putting into practice education thatutilizes these training facilities, the number of enrolled staff increased by 597 compared with theend of the previous consolidated fiscal year, through increases in the manufacturing staff's－

2 －motivation to work and improvements in retention rates.
As a result, net sales amounted to 35,432 million yen (up 12.2% year-on-year), and operating profit
was 1,126 million yen (up 6.3% 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, thenumber of residents of the nursing care facility, "Sweetpea Higashi Totsuka", increased during theperiod under review. In addition, the Company strived to improve profitability by reducing the cost of
sales, such as personnel and operating expenses, including for its existing facilities.
As a result, net sales amounted to 1,369 million yen (up 13.4% year-on-year), and operating profit
was 2 million yen (which was at a loss of 143 million yen in the corresponding period of the previousyear).

－

3 －（２）Description of Financial Position（Assets）
Current assets at the end of the period under review amounted to 13,262 million yen, which was adecrease of 911 million yen from the end of the previous consolidated fiscal year. This was mainly due
to a decrease of 1,122 million yen in cash and deposits.
Non-current assets at the end of the period under review amounted to 6,748 million yen, which was adecrease of 96 million yen from the end of the previous consolidated fiscal year. This was mainly due
to a decrease of 97 million yen in "other" under the investments and other assets category.
As a result, total assets amounted to 20,011 million yen, which was a decrease of 1,008 million yen
from the end of the previous fiscal year.
（Liabilities）
Current liabilities at the end of the period under review amounted to 8,028 million yen, which was adecrease of 1,133 million yen from the end of the previous consolidated fiscal year. This was mainly
due to decreases of 225 million yen in income taxes payable and 158 million yen in accrued expenses.
Non-current liabilities at the end of the period under review amounted to 1,301 million yen, which
was a decrease of 10 million yen from the end of the previous consolidated fiscal year. This was
mainly due to a decrease of 58 million yen in long-term loans payable.
As a result, total liabilities amounted to 9,329 million yen, which was a decrease of 1,144 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 10,681 million yen, which was anincrease of 136 million yen from the end of the previous consolidated fiscal year. This was mainly due
to the 785 million yen in profit attributable to owners of parent, and 620 million yen in dividends ofsurplus.
As a result, the equity ratio was at 53.4% (which was at 50.2% at the end of the previous
consolidated fiscal year).
（３）Description of Future Forecast Information such as Consolidated Forecasts, etc.
There are no changes to the Consolidated Forecast for the full year disclosed in the "Summary ofConsolidated Financial Results for FY 3/2019" which was announced on May 10, 2019.

－4 －２．Quarterly Consolidated Financial Statements and Notes（１）Quarterly Consolidated Balance Sheet(Unit: Million yen)
FY 3/19

2Q of FY 3/20

(As of Mar. 31, 2019)(As of Sep.30, 2019)

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

－

5 －

5,633
7,757
793
(10)
14,174

4,510
7,962
798
(9)
13,262

2,033
2,760
149
4,942
359

1,993
2,760
149
4,903
400

1,543
(1)
1,542
6,844
21,019

1,445
(1)
1,444
6,748
20,011

183
4,751
742
738
2,745
9,161

133
4,592
517
808
12
1,964
8,028

750
124
437
1,312
10,474

692
195
413
1,301
9,329

2,006
2,357
6,514
(342)
10,535

2,006
2,363
6,678
(334)
10,714

41

-

1
(32)
9
10,54421,0191(34)(33)
10,681
20,011

（２）Quarterly Consolidated Statements of Income and Comprehensive Income（Quarterly Consolidated Statement of Income）（For the First Six Months ended September 30, 2019）(Unit: Million yen)First six months of
FY 3/19(Apr. 1, 2018 –Sep. 30, 2018)

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

6 －First six months of
FY 3/20(Apr. 1, 2019 –Sep. 30, 2019)

32,78327,275
5,508
4,593
915

36,79730,587
6,210
5,082
1,128

0
6
20
22
20
72

1
3
24
16
16
63

18

7

1

1

10
27
57
930

8
19
37
1,154

-

64
64

930
360
(18)
342
588
588

3
3
1,214
423
6
429
785
785

（Quarterly Consolidated Statement of Comprehensive Income）（For the First Six Months ended September 30, 2019）(Unit: Million yen)First six months of
FY 3/19(Apr. 1, 2018 –Sep. 30, 2018)

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

7 －First six months of
FY 3/20(Apr. 1, 2019 –Sep. 30, 2019)

588

785

9
(0)

(41)
(2)

(0)

(0)

8
597

(43)
741

597

741

-

-

（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－8 －