Summary of Consolidated Financial Results for FY 3/2019〔Japanese GAAP〕
May 10, 2019
NISSO CORPORATION
Stock Exchange Listing: Tokyo
6569
ＵＲＬ https://www.nisso.co.jp/
President (CEO) &Representative(Title)（Name）Takuo Yabana
Representative Director
Contact Person(Title)Managing Director（Name）Shinichi Matsuo
ＴＥＬ 045-514-4323
Scheduled date of Annual
Scheduled date ofGeneral Meeting ofJune 27, 2019
June 28, 2019
payment of dividend
Shareholders
Scheduled date of filing
June 28, 2019
Annual Securities Report
Preparation of supplementarymaterials for financial
results: Yes
Holding of financial results（for institutional investors and analysts）
meeting: Yes
Company Name
Securities Code（All amounts are rounded down to the nearest million yen）

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2019 (April 1, 2018 - March 31, 2019)(1) Consolidated results of operations（Percentages represent year-on-year changes）
Net sales
Fiscal year ended
Mar. 31, 2019
Mar. 31, 2018

Million yen

69,161
59,208(Note) Comprehensive income

Operating profit

％
16.8
10.6

2,869
1,800

％
59.4
109.3

Fiscal year ended Mar. 31, 2019:
Fiscal year ended Mar. 31, 2018:

Net income per share
Fiscal year ended
Mar. 31, 2019
Mar. 31, 2018

Million yen

Ordinary profit
Million yen

2,895
1,781

％
62.5
113.8

Profit attributable toowners of parent
Million yen
％

2,053
1,014

102.4
106.6

1,876 Million yen (89.0%)
992 Million yen (80.2%)

Diluted net income per
share

Yen

Yen

61.58
37.89

60.14
34.52

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

％
20.7
14.6

％
14.2
9.6

％
4.1
3.0

(Reference) Equity in earnings of affiliates

Fiscal year ended Mar. 31, 2019:(2) Million yen
Fiscal year ended Mar. 31, 2018:
4 Million yen（Note）１．The Company's common stock was split at a ratio of 10 shares for 1 share on October 16, 2017, then at aratio of 2 shares for 1 share on February 1, 2018, followed by a common stock split at a ratio of 2 sharesfor 1 share on August 22, 2018, and then at a ratio of 2 shares for 1 share on May 1, 2019. "Net income pershare" and "diluted net income per share" is calculated assuming that the shares were split at the beginningof the previous consolidated fiscal year.
２．For the fiscal year ended March 31, 2018, since the Company's shares were listed on the First Section of theTokyo Stock Exchange on March 16, 2018, "diluted net income per share" is calculated by regarding the averagestock price from the initial listing date to the last day of the fiscal year as the average stock priceduring the period.
(2) Consolidated financial position
Total assets
As ofMar. 31, 2019
Mar. 31, 2018
(Reference) Equity capital

Net assets

Million yen

Million yen

21,01919,870

10,5449,317

Equity ratio

％
50.2
46.9

Net assets per shareYen

314.20280.95

As of Mar. 31, 2019:10,544 Million yen
As of Mar. 31, 2018:
9,317 Million yen(Note） The Company's common stock was split at a ratio of 10 shares for 1 share on October 16, 2017, then at a ratioof 2 shares for 1 share on February 1, 2018, followed by a common stock split at a ratio of 2 shares for 1
share on August 22, 2018, and then at a ratio of 2 shares for 1 share on May 1, 2019. "Net assets per share" iscalculated assuming that the shares were split at the beginning of the previous consolidated fiscal year.

(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
Fiscal year ended
Million yen
Million yen
Million yen
Million yen
Mar. 31, 2019
2,565
0(2,215)
5,633

2,751

Mar. 31, 2018

(102)

(735)

5,283

2. Dividends
Dividend per share
Total

Total
dividends

Dividend payout
ratio(consolidated)

Dividend on
equity(consolidated)

1Q-end2Q-end3Q-endYear-end

Fiscal year ended
Mar. 31, 2018

Yen
－

Yen
0.00

Yen
－

Yen
42.00

Yen
42.00

Million yen
348

％
27.7

％
4.6

Mar. 31, 2019

－

0.00

－

37.00

37.00

620

30.0

6.2

Fiscal year ending
Mar. 31, 2020
(forecast)

－

0.00

－

25.00

25.00

30.4

（Note）The Company's common stock was split at a ratio of 2 shares for 1 share on August 22, 2018, and then at a ratioof 2 shares for 1 share on May 1, 2019. However, regarding dividends for the fiscal year ended March 31, 2018,
the dividend amount before the stock splits is listed, and regarding dividends for the fiscal year ended March
31, 2019 the dividend amount before the May 1, 2019 stock split is listed.

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2020 (April 1, 2019 – March 31, 2020)(Percentages represent year-on-year changes)
Net sales
Million yen
Full year※

80,000Operating profit％
15.7

Million yen

3,900

％
35.9

Ordinary profit
Million yen

4,000

％
38.1

Profit attributable toowners of parent
Million yen
％

2,760

34.4

Net income
per share
Yen

82.24

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：

None
None
None
None

（３）Number of outstanding shares（Common stock）① Number of shares outstanding at
As of Mar.
As of Mar.
the end of the period （including
33,961,200 Shares
33,164,800 Shares
31, 2019
31, 2018
treasury shares）
As of② Number of treasury shares at the
As of Mar.
Mar. 31,
Shares400,174- Sharesend of the period
31, 2018
2019
Fiscal year
Fiscal year
③ Average number of shares
ended Mar.
ended Mar.
33,352,061 Shares
26,778,668 Shares
outstanding during the period
31, 2019
31, 2018（Note）The Company's common stock was split at a ratio of 10 shares for 1 share on October 16, 2017, then at aratio of 2 shares for 1 share on February 1, 2018, followed by a common stock split at a ratio of 2 sharesfor 1 share on August 22, 2018, and then at a ratio of 2 shares for 1 share on May 1, 2019. "Number ofshares outstanding at the end of the period", "number of treasury shares at the end of the period" and"average number of shares outstanding during the period" are calculated assuming that the shares were split
at the beginning of the previous consolidated fiscal year.

（Reference）Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2019（April 1, 2018 - March 31, 2019）(1) Non-consolidated results of operations（Percentages represent year-on-year changes）
Net sales
Fiscal year ended
Mar. 31, 2019
Mar. 31, 2018

Million yen

63,47453,184

Operating profit

％
19.3
13.3

2,962
1,796

％
64.9
116.4

Yen

Diluted net income per
share
Yen

67.18
37.36

65.61
34.04

Net income per share
Fiscal year ended
Mar. 31, 2019
Mar. 31, 2018

Million yen

Ordinary profit
Million yen

2,943
1,759

％
67.3
131.5

Profit

％
124.0
128.8

Million yen

2,240
1,000

（Note）１．The Company's common stock was split at a ratio of 10 shares for 1 share on October 16, 2017, then at a ratioof 2 shares for 1 share on February 1, 2018, followed by a common stock split at a ratio of 2 shares for 1
share on August 22, 2018, and then at a ratio of 2 shares for 1 share on May 1, 2019. "Net income per share"and "diluted net income per share" is calculated assuming that the shares were split at the beginning of theprevious fiscal year.
２．For the fiscal year ended March 31, 2018, since the Company's shares were listed on the First Section of theTokyo Stock Exchange on March 16, 2018, "diluted net income per share" is calculated by regarding the averagestock price from the initial listing date to the last day of the fiscal year as the average stock priceduring the period.
(2) Non-consolidated financial position
Total assets

Net assets

Equity ratio

As ofMar. 31, 2019
Mar. 31, 2018

Million yen

Million yen

18,482
17,257

9,852
8,380

(Reference) Equity capital

As of Mar. 31, 2019:
As of Mar. 31, 2018:

％
53.3
48.6

Net assets per shareYen

293.58252.699,852 Million yen
8,380 Million yen（Note）The Company's common stock was split at a ratio of 10 shares for 1 share on October 16, 2017, then at a ratio of
2 shares for 1 share on February 1, 2018, followed by a common stock split at a ratio of 2 shares for 1 share on
August 22, 2018, and then at a ratio of 2 shares for 1 share on May 1, 2019. "Net assets per share" is calculated
assuming that the shares were split at the beginning of the previous fiscal year.
※

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
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）
The Company is planning to hold a briefing session for institutional investors and analysts on Tuesday, May 14,
2019.
Quarterly financial results materials to be used on that day will be posted on the Company's website promptly after
the briefing.
（Regarding the changing of the date display format）
From the first quarter of the current consolidated accounting period, the display format of dates (on Japaneselanguage financial results materials) have been changed from the Japanese calendar to the Western calendar, and havebeen simplified, on occasion, on English-language materials.

○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
6

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

77（２）Consolidated Statements of Income and Comprehensive Income …………………………………………
Consolidated Statement of Income ……………………………………………………………………………

9
9

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

1011（４）Consolidated Statement of Cash Flows ………………………………………………………………………
（５）Notes regarding Consolidated Financial Statements ………………………………………………………

13
14（Notes regarding Going Concern Assumption） ………………………………………………………………
（Changes in Display Method） ……………………………………………………………………………………

14
14（Segment Information） ……………………………………………………………………………………………
（Per Share Information） …………………………………………………………………………………………

14
17（Significant Subsequent Events） ………………………………………………………………………………

18

- 1 -

１．Overview of Operating Results（１）Overview of Operating Results for the Current Fiscal Year
Japan's economy during the current consolidated fiscal year (hereinafter, the "period under review")
continued to recover moderately due to the effects of various policies of the government and the Bank ofJapan (hereinafter, the “BOJ”) as the employment and income environments continued to improve. On theother hand, in the world economy, the outlook of economic conditions is uncertain, and it has become
necessary to pay close attention to the impact of trade frictions between the U.S. and China in the world
economy, the uncertainty of overseas economies, as well as the fluctuations in financial and capital
markets.
As for the business environment surrounding the Nisso Group (hereinafter, the "Group"), while theproduction of domestic manufacturers, who are NISSO CORPORATION's (hereinafter, the "Company") importantclients, remained stable, the demand for the utilization of external human resources remained strong due
to the continued shortage of workers.
In this environment, the Group has formulated a medium-term management plan for the fiscal year ended
March 31, 2019 to the fiscal year ending March 31, 2021 under the founding philosophy of "Nurturing andBringing Out the Best in People, and along with reinforcing sales, recruiting and educational activities,
the Group has striven to improve client and employee evaluations.
As a result, the results of operations for the period under review are as follows.
①

Net sales
Net sales for the period under review increased by 16.8% compared to the previous consolidated
fiscal year (59,208 million yen), to 69,161 million yen. This was mainly due to the increase inrevenue from the General Human Resources Business (Note) which contributed to the overall performanceof the Group.
In the General Human Resources Services Business, with regards to the manufacturing-related humanresources services which accounts for 95.3% of net sales, under the strategy of prioritizing theassignment of "skilled staff" to key Account Companies, who are the Company's important clients, theCompany has been actively investing in the development of human resources, and has striven to improve
the skills and increase the retention rate of manufacturing staff. By utilizing its training
facilities such as the "Nisso Technical Center Naka-Nihon (Okaya City, Nagano)", which was opened on
May 1, 2018, the Company has nurtured human resources who are capable of actively working in fields
such as automobiles, electronic components and precision equipment, in order to provide higher valueadded services to its clients. As a result, in the client environment, incoming orders were expanded
mainly by transportation equipment and electronic components manufacturers. In addition, the Company
has achieved low-cost hiring by utilizing its own recruitment sites, and has made strides to increase
retention rates through the improvement of treatment and the enhancement of educational opportunities
in order to heighten the motivation of manufacturing staff. As a result, the number of enrolled staff
grew steadily (up by 1,598 staff compared to the end of the previous consolidated fiscal year).
Furthermore, as a result of the favorable conditions of proposals to assign "skilled staff", who areindefinite-term employees with high retention rates, to our important clients, the average monthly net
sales per capita increased by 24 thousand yen during the period under review.
As a result, net sales for the General Human Resources Services Business increased by 17.1% comparedto the previous consolidated fiscal year (56,947 million yen), to 66,684 million yen.
Furthermore, with regards to Other Businesses (Note), there was an increase in the number ofresidents at the nursing care facility, "Sweetpea Higashi Totsuka (Totsuka-ku, Yokohama)", which was
opened on March 1, 2018.
As a result, net sales for Other Businesses increased by 9.3% compared to the previous consolidated
fiscal year (2,273 million yen), to 2,485 million yen.
(Note) Within the General Human Resources Services Business, the Company carries out manufacturing
dispatching and contracting for its manufacturing-related human resources services, and general office
work dispatching and BPO (Business Process Outsourcing: the outsourcing of operations and processes of- 2 -specific business-related tasks to a [third-party] specialized company) for its administrative humanresources services. Also, the Company operates nursing care and welfare businesses for its Other
Businesses.
②

Operating profit
Operating profit for the period under review increased by 59.4% compared to the previous
consolidated fiscal year (1,800 million yen), to 2,869 million yen.
With regards to the General Human Resources Services Business, as a result of the effect of theincrease in revenue and the efforts to reduce the ratio of selling and administrative expenses, therise in costs for the improvement of treatment of manufacturing staff and the investment in education
were absorbed, and the operating profit increased by 62.8% compared to the previous consolidated
fiscal year (1,905 million yen), to 3,102 million yen.
Meanwhile, with regards to Other Businesses, although the number of residents of "Sweetpea Higashi
Totsuka" increased, the costs of sales such as personnel and operating expenses could not be absorbed,
and operating loss increased by 146 million yen compared to the previous consolidated fiscal year (101million yen operating loss), to 247 million yen.

③

Ordinary profit
Non-operating income for the period under review decreased by 6.2 ％ compared to the previous
consolidated fiscal year (157 million yen), to 147 million yen. In addition, non-operating expenses
decreased by 31.0% compared to the previous consolidated fiscal year (176 million yen), to 121 million
yen.
As a result, ordinary profit for the period under review increased by 62.5% compared to the previous
consolidated fiscal year (1,781 million yen), to 2,895 million yen.

④

Profit attributable to owners of parent
As a result of recording gain on sales of investment securities of 74 million yen, impairment loss of
65 million yen, and total income taxes of 849 million yen, profit attributable to owners of parent in
the period under of review increased by 102.4% compared to the previous consolidated fiscal year (1,014
million yen), to 2,053 million yen.

（２）Overview of Financial Position for the Current Fiscal Year
（Assets）
Current assets at the end of the period under review amounted to 14,174 million yen, which was anincrease of 1,421 million yen from the end of the previous consolidated fiscal year. This was mainly
due to increases of 965 million yen in notes and accounts receivable (trade), and 349 million yen in
cash and deposits.
Non-current assets at the end of the period under review amounted to 6,844 million yen, which was adecrease of 272 million yen from the end of the previous consolidated fiscal year. This was mainly due
to a decrease of 212 million yen in investment securities.
As a result, total assets amounted to 21,019 million yen, which was an increase of 1,149 million yen
from the end of the previous consolidated fiscal year.
（Liabilities）
Current liabilities at the end of the period under review amounted to 9,161 million yen, which was
an increase of 954 million yen from the end of the previous consolidated fiscal year. This was mainly
due to increases of 420 million yen in accrued expenses, 333 million yen in accrued consumption taxes,
and 210 million yen in provision for bonuses.
Non-current liabilities at the end of the period under review amounted to 1,312 million yen, which
was a decrease of 1,033 million yen from the end of the previous consolidated fiscal year. This was
mainly due to a 1,132 million yen decrease in long-term loans payable.
As a result, total liabilities amounted to 10,474 million yen, which was a decrease of 78 million
yen from the end of the previous consolidated fiscal year.
- 3 -（Net assets）
Total net assets at the end of the period under review amounted to 10,544 million yen, which was anincrease of 1,227 million yen from the end of the previous consolidated fiscal year. This was mainly
due to an increase in retained earnings of 1,705 million yen as a result of the appropriation of 2,053
million yen in profit attributable to owners of parent, and the payment of 348 million yen in
dividends of surplus.
As a result, the equity ratio was 50.2% (which was at 46.9% 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 were as follows: 2,565 million yen in revenues for cash flows
from operating activities, 0 million yen in revenues for cash flows from investing activities, and2,215 million yen in expenditures for cash flows from financing activities.
As a result, cash and cash equivalents for the period under review increased by 349 million yen to5,633 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）
Cash flows from operating activities consisted of income/revenue such as profit before income taxesof 2,903 million yen, increase in accrued expenses of 420 million yen, and increase in accrued
consumption taxes of 333 million yen, etc., and amounted to 2,565 million yen (which was 2,751 million
yen in the previous consolidated fiscal year) including the absorption of an increase in notes andaccounts receivable (trade) expenditures of 965 million yen, etc.
（Cash flows from investing activities）
Cash flows from investing activities amounted to 614 thousand yen in revenue (which was 102 million
yen in expenditures in the previous consolidated fiscal year) due to revenues of 173 million yen inproceeds from sales of securities, and the absorption of expenditures of 120 million yen in purchaseof property, plant and equipment.
（Cash flows from financing activities）
Cash flows from financing activities consisted of expenditures such as repayments of long-term loans
payable of 1,651 million yen, purchase of treasury shares of 342 million yen, and cash dividends paidof 348 million yen, etc., which resulted in expenditures of 2,215 million yen (which was expendituresof 735 million yen in the previous consolidated fiscal year).

- 4 -（４）Future Prospects
With regard to future prospects, amid continued improvement of employment and income conditions in thedomestic economy, moderate recover is expected to continue due to the effects of various policies of thecurrent administration and the BOJ. Meanwhile, in the world economy, due to the effects of trade frictions
between the U.S. and China, U.K.'s withdrawal from the EU, etc., the future outlook is uncertain. Although
weaknesses can be seen in exports and production in some of the domestic manufacturing industries, it isbelieved that stable levels of production will continue to be maintained by major domestic manufacturers,
who are the Group's important clients.
Under these circumstances, the Group is aiming to realize its founding philosophy, "Nurturing andBringing Out the Best in People", and its vision, "To Be the Finest Professional Organization Supporting
Made-in-Japan", and in doing so, Takuo Yabana (formerly Executive Vice President & Representative
Director) assumed the office of President, CEO & Representative Director from April 1, 2019. Under thisnew management structure, the Group will undertake the task of implementing the following measures.
Regarding the Group's core business of Manufacturing-related Human Resources Services, under the
strategy of prioritizing the assignment of "skilled staff", who are indefinite-term employees, toAccount Companies, who are positioned as important clients, the Group will strive to actively conduct
human resources development by utilizing its own educational facilities in 9 locations nationwide,
centering on the "Nisso Technical Centers", to enhance the skills of manufacturing staff and improve
retention rates.
Regarding Other Businesses, the Group will improve the quality of services provided by its nursing
care facilities, "Sweetpea", which are located in 6 places in Yokohama, and strive to increase thenumber of residents of those facilities. In addition, the Group will continue to make efforts to improvethe management structure by promoting the efficiency of its operations, and to increase profitability.
As a result of the above, the Group anticipates the full year consolidated financial results for the
fiscal year ending March 31, 2020 to be as follows: net sales of 80,000 million yen (up 15.7% year onyear), operating profit of 3,900 million yen (up 35.9% year on year), ordinary profit of 4,000 million
yen (up 38.1% year on year), and profit attributable to owners of parent of 2,760 million yen (up 34.4%
year on year).
※The above-mentioned earnings forecasts are based on information available as of the publication dateof this material, and actual results may differ from the 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 dividend as a general principle, the Articles
of Incorporation stipulate that it is possible to distribute dividends of surplus twice a year as
interim dividends and end-of-period 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.
In accordance with the above policy, the dividend for the fiscal year ended March 31, 2019 isscheduled to be a payment (the Company's common stock was split at a ratio of 2 shares for 1 share on
May 1, 2019, and at 18.50 yen after the stock split) of 37.00 yen per share (consolidated dividend
payout ratio of 30.0%).
In addition, the dividend for the fiscal year ending March 31, 2020 is scheduled to be a payment of
25.00 yen per share (consolidated dividend payout ratio of 30.4%).

- 5 -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.

- 6 -３．Consolidated Financial Statements and Notes（１）Consolidated Balance Sheet（Unit: Thousand yen）
FY 3/18（As of Mar. 31, 2018）
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
Long-term loans receivable
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- 7 -FY 3/19（As of Mar. 31, 2019）

5,283,739
6,791,691
454,303229,758(6,444)
12,753,048

5,633,545
7,757,343
561,203
232,525(10,323)
14,174,293

5,434,544(3,320,701)
2,113,842
2,771,384
411,722(302,613)
109,108
4,994,335

5,462,547(3,429,302)
2,033,245
2,760,323
487,447(338,111)
149,335
4,942,904

287,317
92,898380,215

216,389
143,560
359,950

380,056
1,882
680,928
317,190
78,942
285,343(1,742)
1,742,601
7,117,152
19,870,200

167,166
1,587
660,933
373,193
5,128
335,414(1,285)
1,542,138
6,844,993
21,019,286

（Unit: Thousand yen）
FY 3/18（As of Mar. 31, 2018）
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
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeTotal net assets
Total liabilities and net assets- 8 -FY 3/19（As of Mar. 31, 2019）

501,889
108,228
4,331,212
632,856
1,085,514
528,328
1,018,930
8,206,960

183,202110,365
4,751,535
742,813
1,418,779
738,891
1,216,291
9,161,879

1,883,221
220,542
36,418205,435
2,345,618
10,552,579

750,652
146,903
124,065
290,817
1,312,438
10,474,318

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

2,006,269
2,357,219
6,514,260(342,603)
10,535,146

160,525

41,3791,529
25,302

1,256(32,813)

187,357

9,821

9,317,621
19,870,200

10,544,968
21,019,286

（２）Consolidated Statements of Income and Comprehensive Income（Consolidated Statement of Income）（Unit: Thousand yen）
FY 3/18(Apr. 1, 2017 –Mar. 31, 2018)
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
Share of loss of entities accounted forusing equity method
Commission fee
Rent expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
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- 9 -FY 3/19(Apr. 1, 2018 –Mar. 31, 2019)59,208,463
48,834,760
10,373,703
8,573,170
1,800,532

69,161,550
56,922,021
12,239,528
9,370,104
2,869,424

1,210
13,354

3,812
13,5304,895-

52,01456,65429,394
157,523

49,12940,72840,564
147,766

82,86030,591-

2,504

34,652
58,864
176,376
1,781,679

19,11623,88845,678
121,779
2,895,411-

74,105
74,105

1,781,679
506,203260,713766,917
1,014,762

65,95765,9572,903,559
885,050(35,396)
849,653
2,053,906--

1,014,762

2,053,906

（Consolidated Statement of Comprehensive Income）（Unit: Thousand yen）
FY 3/18(Apr. 1, 2017 –Mar. 31, 2018)
ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Remeasurements of defined benefit plans
Share 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- 10 -

FY 3/19(Apr. 1, 2018 –Mar. 31, 2019)

1,014,762

2,053,906(25,291)(119,145)

2,976(58,116)

207

(273)

(22,107)992,655(177,536)
1,876,370

992,655

1,876,370--

（３）Consolidated Statement of Changes in Equity
FY 3/18 (Apr. 1, 2017 - Mar. 31, 2018)(Unit: Thousand yen)

Shareholders' equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodIssuance of new shares
Issuance of new shares exercise of shareacquisition rights

Capital surplus

Retained earnings

Total shareholders'equityTreasury shares

50,000400,950

3,941,339

4,392,289

1,893,185

1,893,185

3,786,371

42,17842,17884,357

Dividends of surplus(147,517)(147,517)

Profit attributable toowners of parent

1,014,762

1,014,762

4,737,974

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

1,935,364

1,935,364

867,245

1,985,364

2,336,314

4,808,584-

9,130,263

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodValuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurements ofdefined benefit
plans

Total accumulated
othercomprehensive
income185,816

1,322

22,326

209,465

Issuance of new shares

Total net assets

4,601,754

3,786,371

Issuance of new shares exercise of shareacquisition rights

84,357

Dividends of surplus(147,517)

Profit attributable toowners of parent

1,014,762

Purchase of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period(25,291)

207

2,976

(22,107)(22,107)(25,291)

207

2,976

(22,107)4,715,866

160,525

1,529

25,302

187,357

9,317,621- 11 -

FY 3/19 (Apr. 1, 2018 - Mar. 31, 2019)(Unit: Thousand yen)

Shareholders' equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodCapital surplus

1,985,364

2,336,314

20,90520,905Retained earnings
4,808,584

Total shareholders'equityTreasury shares-

9,130,263

Issuance of new shares
Issuance of new shares exercise of shareacquisition rights

41,811Dividends of surplus(348,230)(348,230)

Profit attributable toowners of parent

2,053,906

2,053,906

Purchase of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period(342,603)(342,603)

20,90520,905

1,705,675(342,603)

1,404,883

2,006,269

2,357,219

6,514,260(342,603)

10,535,146

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodValuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurements ofdefined benefit
plans

Total accumulated
othercomprehensive
income160,525

1,529

25,302

187,357

Total net assets

9,317,621

Issuance of new shares
Issuance of new shares exercise of shareacquisition rights

41,811Dividends of surplus(348,230)

Profit attributable toowners of parent

2,053,906

Purchase of treasury
shares(342,603)

Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period(119,145)(273)(58,116)(177,536)(177,536)(119,145)(273)(58,116)(177,536)

1,227,347

41,3791,256(32,813)

9,821

10,544,968- 12 -

（４）Consolidated Statement of Cash Flows（Unit: Thousand yen）
FY 3/18(Apr. 1, 2017 –Mar. 31, 2018)
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 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
Proceeds from sales of securities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments of loans receivableCollection of loans receivable
Other, net
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans
payableProceeds from long-term loans payable
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- 13 -

FY 3/19(Apr. 1, 2018 –Mar. 31, 2019)

1,781,679
253,975

2,903,559
285,389(1,756)

3,422

131,784(7,230)210,563
37,36522,651

72,899(14,564)
82,860(74,105)
65,957(17,343)
30,591(4,895)2,504(579,262)(965,651)(174,580)

19,994820,032
67,024
480,1122,857,830
14,564(79,924)
6,717(47,476)
2,751,711

420,355
333,265(7,044)
3,321,724
17,343(30,157)
13,144(756,977)
2,565,077(66,386)(36,295)(1,926)
3,697(1,288)(102,198)

173,244(120,057)(58,186)(2,390)
2,630
5,375
614

(2,600,000)-

330,000(2,063,793)(108,604)
3,854,620(147,517)(735,294)

200,000(1,651,256)(115,607)
41,811(342,603)(348,230)(2,215,886)--

1,914,218

349,806

3,369,520
5,283,739

5,283,739
5,633,545

（５）Notes regarding Consolidated Financial Statements（Notes regarding Going Concern Assumption）
Not applicable.
（Changes in Display Method）（Changes Associated with the Application of “Partial Revisions to ‘Accounting Standards for Tax
Effect Accounting’ ”）"Partial Revisions to ‘Accounting Standards for Tax Effect Accounting'" (ASBJ [Accounting Standards
Board of Japan] Statement No. 28, February 16, 2018. Hereinafter, "Partial Revisions to Tax EffectAccounting Standards" have been applied from the beginning of the period under review. Deferred tax
assets have been included in the investments and other assets category, and the method in which
deferred tax liabilities are displayed have been changed, and are included in the non-current
liabilities category.
As a result, under the previous consolidated fiscal year section (FY 3/18) of the consolidatedbalance sheet, "deferred tax assets" of 305,118 thousand yen under "current assets", and "deferred tax
liabilities" of 11,049 thousand yen under "non-current liabilities" are included and displayed in"deferred tax assets" of 317,190 thousand yen under "investments and other assets".
In addition, deferred tax assets and deferred tax liabilities of the same taxable entity are offset
and displayed, and total assets decreased by 11,049 thousand yen compared to before the change.
（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".
However, since the "General Human Resources Service Business" accounts for a high proportion of all
segments within the Group, the description of segment information was omitted because of its lack ofsignificance as disclosure information.
From the period under review, with the establishment of the nursing care facilities in the nursing
care and welfare businesses, or "Other Businesses", segment information has been included because of
its increasing significance as disclosure information. In addition, segment information for theprevious consolidated fiscal year is disclosed based on the classification of reportable segments forthe period under review.
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.

- 14 -

３．Information related to net sales, profits or losses, assets, liabilities, and other items for eachreportable segment
FY 3/18 (Apr. 1, 2017 - Mar. 31, 2018)(Unit: Thousand yen)
Reportable Segments
General Human
Resources
Service Business

Other
Businesses

Amounts shown on
Consolidated
Statement of
Income（Note）２

Adjustments（Note）１
Subtotal

Net sales

56,934,900

2,273,563

59,208,463-

59,208,463

12,514-

12,514(12,514)-56,947,414

2,273,563

59,220,978(12,514)59,208,463

Segment profit (loss)

1,905,878(101,143)

1,804,734(4,202)1,800,532

Segment assets

18,072,109

1,799,498

19,871,607(1,406)

19,870,200

228,788

9,633

238,421

15,553

253,975

5,328

-

5,328

-

5,328

Sales to external clientsInter-segment sales ortransfers
Total

Other items
Depreciation
Investment in equity-method
affiliates

Increase in property, plantand equipment and
241,544
11,826
253,371
253,371
intangible assets（Note）１．The adjustments are as follows.
（１） The adjustments on segment profit (loss) of (4,202) thousand yen are eliminations of inter-segment
transactions.
（２） The adjustments on segment assets of (1,406) thousand yen are eliminations of transactions.
（３） The adjustments on depreciation of 15,553 thousand 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.

- 15 -

FY 3/19 (Apr. 1, 2018 - Mar. 31, 2019)(Unit: Thousand yen)
Reportable Segments
General Human
Resources
Service Business

Other
Businesses

Amounts shown on
Consolidated
Statement of
Income（Note）２

Adjustments（Note）１
Subtotal

Net sales

66,676,103

2,485,447

69,161,550-

69,161,550

8,716

-

8,716

(8,716)-

66,684,819

2,485,447

69,170,267(8,716)

69,161,550

Segment profit (loss)

3,120,755(247,311)

2,873,443(4,019)2,869,424

Segment assets

19,098,750

1,922,180

21,020,931(1,644)21,019,633

264,807

9,669

274,476

10,913285,389

2,550

-

2,550

-

2,550

Sales to external clientsInter-segment sales ortransfers
Total

Other items
Depreciation
Investment in equity-method
affiliates

Increase in property, plantand equipment and
244,174
3,737
247,912
247,912
intangible assets（Note）１．The adjustments are as follows.
（１） The adjustments on segment profit (loss) of (4,019) thousand yen are eliminations of inter-segment
transactions.
（２） The adjustments on segment assets of (1,644) thousand yen are eliminations of transactions.
（３） The adjustments on depreciation of 10,913 thousand 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 -

（Per Share Information）
FY 3/18(Apr. 1, 2017 –Mar. 31, 2018)

FY 3/19(Apr. 1, 2018 –Mar. 31, 2019)

Net assets per share

280.95 Yen

314.20 Yen

Net income per share

37.89 Yen

61.58 Yen

Diluted net income per share

34.52 Yen

60.14 Yen

（注）１．For the previous consolidated fiscal year, since the Company's shares were listed on the First Section of theTokyo Stock Exchange on March 16, 2018, the average stock price from the initial listing date to the last dayof the fiscal year is calculated as the average stock price during the period.
２．By the resolutions of the Board of Directors on September 15, 2017, on January 15, 2018, on August 6, 2018,
and on March 15, 2019, the Company's common stock was split at a ratio of 10 shares for 1 share on October
16, 2017, then at a ratio of 2 shares for 1 share on February 1, 2018, followed by a common stock split at aratio of 2 shares for 1 share on August 22, 2018, and then at a ratio of 2 shares for 1 share on May 1, 2019,respectively.Net assets per share amount, net income per share amount and diluted net income per share amountare calculated assuming that the stock split was made at the beginning of the previous consolidated fiscal
year.
３．The basis for the calculation of the net income per share is as follows.

FY 3/18(Apr. 1, 2017 –Mar. 31, 2018)

FY 3/19(Apr. 1, 2018 –Mar. 31, 2019)

1,014,762

2,053,906--

Profit attributable to owners of parent
related to common shares（Thousand yen）

1,014,762

2,053,906

Average number of common shares outstanding
during the period（Shares）

26,778,668

33,352,061--

2,616,856

798,923（2,616,856）（798,923）

Net income per share
Profit attributable to owners of parent
amount（Thousand yen）
Amount not attributable to commonshareholders（Thousand yen）

Diluted net income per share
Profit attributable to owners of parent
adjustment（Thousand 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 pershare- 17 -－

（Significant Subsequent Events）（Notice of Stock Split and Partial Amendment to the Articles of Incorporation）
By the resolution of the Board of Directors held on March 15, 2019, the Company implemented a stock
split and a partial amendment to the Articles of Incorporation on May 1, 2019.
１．Purpose of Stock Split
Due to the decrease in the number of shareholders of the Company at the end of February 2019 toapproximately 2,000, the amount per investment unit was lowered to create an environment in whichinvestors can easily invest in. The Company implemented a stock split with the aim of improving
the liquidity of its shares and expanding the investor base.
２．Overview of Stock Split（１）Method of split
With the record date of April 30, 2019 (Tue) (actual date: April 26, 2019 (Fri)), theCompany's common stock owned by shareholders listed or recorded on the same day's final
register of shareholders was split at a ratio of 2 shares for 1 share.
（２）Number of shares increased by split
Total number of shares outstanding before stock split

16,982,200 Shares

Number of shares increased by this split
Total number of shares outstanding after stock split

16,982,200 Shares
33,964,400 Shares

Total number of authorized shares after stock split（３）Schedule of split

102,400,000 Shares

Record Date Notification Date Apr 12, 2019
Record Date
Apr 30, 2019
Effective Date
May 1, 2019（４）Impact on per share information
The impact of the stock split is described in the “Per Share Information”.
３．Partial Amendment to the Articles of Incorporation associated with Stock Split（１）Reason for amendment to the Articles of Incorporation
As a result of the stock split, the Company's Articles of Incorporation was partiallyamended in accordance with the provisions of Article 184, item 2 of the Companies Act.
（２）Contents of amendment to the Articles of Incorporation
The contents of the amendment to the Articles of Incorporation are as follows.
(Changes are underlined.)
Before Amendment

After Amendment（Total number of authorized shares）（Total number of authorized shares）

Article 6 The total number ofauthorized shares of the Company

Article 6 The total number ofauthorized shares of the Company

shall be 51,200,000 shares.

shall be 102,400,000 shares.

（３）Schedule of amendment to the Articles of Incorporation
Board of Directors Resolution Date
Effective Date

Mar 15, 2019
May 1, 2019- 18 -

４．Other（１）Change in amount of capital
There is no change in the amount of capital at the time of this stock split.
（２）Adjustment of exercise value of share acquisition rights
As a result of this stock split, from May 1, 2019 onwards, the exercise value per share ofshare acquisition rights issued by the Company was adjusted as follows.
Board of Directors
Resolution Date
March 22, 2016

Name of Share

Exercise Value

Exercise Value

Acquisition Rights

before Adjustment

after Adjustment

105 Yen53 Yen5th Share Acquisition
Rights- 19 -