Consolidated Financial Results for the First Quarter of FY 3/2023 [Japanese GAAP]
August 8, 2022
Company NameNISSO CORPORATION

Securities Code6569

ＵＲＬ https://www.nisso.co.jp/

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

Contact Person(Title)Sr. Executive Officer（Name）Kenichi Nomura

Scheduled date of filing
Quarterly Report

Stock Exchange Listing: Tokyo

Scheduled date ofAugust 8, 2022

Preparation of supplementary materials
for quarterly financial results: Yes

payment of dividend

ＴＥＬ +81-45-514-4323－(Scheduled to be posted on the Company's website on August 8, 2022 (Mon.))Holding of quarterly financial results(A video explaining the financial results will be posted on the Company's

meeting: Yes

website on August 19, 2022 (Fri.))（All amounts are rounded down to the nearest million yen）

1. Consolidated Financial Results for the First Quarter of FY 3/2023 (April 1, 2022 – June 30, 2022)(1) Consolidated results of operations（Percentages represent year-on-year changes）
Net salesFirst three months ended
June 30, 2022
June 30, 2021
(Note) Comprehensive income

Operating profit

Million yen%

20,501
18,045

13.6
9.0

Million yen%

Million yen

259 (44.8)
470 127.9

First three months ended
June 30, 2022
June 30, 2021%

Million yen

313 (40.1)
524 119.4

For the first 3 months ended June 30, 2022:
For the first 3 months ended June 30, 2021:

Net income per share

Profit attributable toowners of parent

Ordinary profit%

182 (47.2)
345 239.7

182 Million yen (-46.6%)
342 Million yen (235.1%)

Diluted net income per
share

Yen

Yen

5.36
10.17

5.36
10.16

(2) Consolidated financial position
Total assets
2023年３月期第１四半期
2022年３月期(Reference) Equity capital

Net assets

Equity ratio

Million yen

Million yen%

26,711
27,462

13,13013,55949.2
49.4

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

13,130 Million yen
13,559 Million yen

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

2Q-end3Q-endYear-end

Total

Yen

Yen

Yen

Yen

Yen

－

0.00

－

18.00

18.00

0.00

－

16.00

16.00

－

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

3. Consolidated Forecast for FY 3/2023 (April 1, 2022 – March 31, 2023)（Percentages represent year-on-year changes）
Net sales
Million yen

Full year

88,600Operating profit% Million yen

14.2

2,700

% Million yen

29.4

Profit attributableto owners of parent

Ordinary profit

2,700% Million yen

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

1,800

Net income per
share

%

Yen

6.1

52.97

※

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)

As of Jun.
30, 2022

Number of treasury shares at theend of the period

As of Jun.

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

First three30, 2022

months ended
Jun. 30, 2022

34,330,800

Shares348,444

Shares

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

34,330,800

Shares348,444

Shares33,954,019

SharesFirst three
33,982,356 Sharesmonths ended
Jun. 30, 2021※

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

Cautionary statement on the appropriate use of earning forecasts, and other special items（Notes on forward-looking statements, etc.）
・Earnings forecasts regarding future performance and other forward-looking statements in thismaterial are based on certain assumptions judged to be valid and on information that is currently
available to the Company, and do not represent promises by the Company that these figures will beachieved. In addition, actual results may differ significantly due to a variety of factors. For
prerequisite conditions, etc. regarding the earnings forecasts, please refer to "1. Qualitative
Information on Quarterly Financial Results, (3) Description of Future Forecast Information such as
Consolidated Forecasts, etc." on P.4 of the attachments.
（Supplementary materials for quarterly financial results and method of obtaining content for quarterly
financial results meeting）
Materials related to the explanation of the Company's financial results are scheduled to be posted on
its website on August 8, 2022 (Monday).
In addition, a video explaining the financial results will be posted on the Company's website on
August 19, 2022 (Friday). (In Japanese only)（Reference）Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the First Quarter of FY 3/2023（April 1, 2022 – June 30, 2022）(1) Non-consolidated results of operations（Percentages represent year-on-year changes）
Net salesFirst three months ended
June 30, 2022
June 30, 2021

First three months ended
June 30, 2022
June 30, 2021

Operating profit
Million yen

Ordinary profit

Million yen%

18,958
16,684

13.6
10.1

263 (45.4)
482 135.7%

Net income per share

Diluted net income per
share

Yen

Yen

5.60
9.40

5.60
9.39

Million yen

Quarterly net profit%

310 (37.5)
496 126.5

Million yen%

190 (40.4)
319 229.7(2) Non-consolidated financial position
Total assets
As ofJune 30, 2022
March 31, 2022
(Reference) Equity capital

Net assets

Equity ratio

Million yen

Million yen%

24,64925,32912,475
12,89650.6
50.9

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

12,475 Million yen
12,896 Million yen

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

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

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

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

4

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

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

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

7

Quarterly Consolidated Statement of Income
First Quarter of FY 3/23 ……………………………………………………………………………………

7

Quarterly Consolidated Statement of Comprehensive Income
First Quarter of FY 3/23 ……………………………………………………………………………………

8（３）Notes regarding Quarterly Consolidated Financial Statements …………………………………………

9（Notes regarding the Going Concern Assumption） …………………………………………………………

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

9（Additional Information） ………………………………………………………………………………………

9（Significant Subsequent Events） ………………………………………………………………………………

9

- 1 -

１．Qualitative Information on Quarterly Financial Results（１）Description of Results of Operations
Although Japan's economy has shown signs of recovery during the current consolidated cumulative
first quarter (hereinafter, the "period under review"), it has continued to be affected by factors
such as supply constraints caused by the prolonged situation in Ukraine and supply chain stagnation
caused by continued lockdowns in China.
In such a business environment, based on its mission of "Creating opportunities and hopes for people
to work", the Nisso Group (hereinafter, the "Group") aims to create workplaces where workers can gain
a sense of self-fulfillment and flourish, with human resources solution services that support thegrowth of companies and people. In addition, the Group is promoting initiatives " To transform into a
corporate group with high-growth potential" in order to provide services that can respond to socialchanges and changes in industrial structures.
The Group defines materiality (key issues) for the realization of its mission as "creation of acomfortable workplace", "responding to social changes and changes in industrial structures", and"strengthening of governance". By promoting digitization (digitalization) and actively investing inhuman resources, the Group aims to enhance corporate value through the creation of social value by
maximizing employee satisfaction and customer/client satisfaction, providing high value-added
services, and strengthening management structures and internal controls.
The results for the period under review are as follows:(Unit: Million yen)

Net sales
Operating profit
Ordinary profit
Profit attributable toowners of parent

FY 3/2022
Cons. cumulative 1st Qtr.
(April 1, 2021 June 30, 2021)
Amount(YoY)
18,045(up 9.0%)
470(up 127.9%)
524(up 119.4%)
345(up 239.7%)

FY 3/2023
Cons. cumulative 1st Qtr.
(April 1, 2022 June 30, 2022)
Amount(YoY)
20,501(up 13.6%)
259(down 44.8%)
313(down 40.1%)
182(down 47.2%)

At NISSO CORPORATION (hereinafter, "the Company"), which is the core of the Group, during the period
under review, the number of enrolled manufacturing staff steadily increased to 15,270 (up 325 from theend of the previous consolidated fiscal year) as a result of responding to the vigorous humanresources needs of its clients, manufacturers, and promoting the expansion of recruitment interview
opportunities through the use of Web interviews and other means. In the automobiles-related industry,
net sales amounted to 8,243 million yen (up 14.2% year-on-year) due to strong demand for humanresources in preparation for recovery production after various risks have been resolved. In theelectronic devices-related industry, production remained high due to demand for semiconductors, andnet sales amounted to 5,980 million yen (up 16.8% year-on-year). Also, the Company is striving to
expand orders by actively developing sales activities centered on Account Companies, who are importantclients, and Account Companies accounted for 45.3% of the Company's net sales. In addition, with theaim of providing high value-added services, the Company has been developing human resources byutilizing 8 training facilities nationwide, and the total number of participants trained, including
manufacturing staff and engineers, was 1,981 (up 583 year-on-year). As a result of promoting these
initiatives, net sales per capita amounted to 411 thousand yen (which was 409 thousand yen in thecorresponding period of the previous fiscal year), and the Company's net sales increased by 13.6%
year-on-year.
On the other hand, in terms of profits, although there was an increase in enrollment, the Company's
operating profit decreased by 45.4% year-on-year due to the significant impact on operating hours as aresult of parts shortages caused by supply chain delays.
Based on its policy of putting the safety of its clients and employees as a top priority, the Grouphas established the "COVID-19 Countermeasures Headquarters", and is promoting business activities thatstrengthen measures to prevent the spread of COVID-19 infections. Going forward, the Group's businessperformance is expected to remain firm as the economic activities of clients related to the Company
are expected to recover, and the needs for external human resources are expected to resume. On theother hand, in the event of an occurrence where individuals are affected by the virus at its clients,
workplaces or nursing care facilities, the Group may be affected.

- 2 -The results of operations by segment are as follows:(General Human Resources Services Business)(Unit: Million yen)

FY 3/2022
Cons. cumulative 1st Qtr.
(April 1, 2021 June 30, 2021)
AmountNet sales
Manufacturing・Production
Human Resources Services
Engineering Human Resources
Services
Administrative Human Resources
Services
Other Human Resources Services
Total
Segment profit

FY 3/2023
Cons. cumulative 1st Qtr.
(April 1, 2022 June 30, 2022)
Amount(YoY)

15,442

17,346

1,242

1,814

607

584

13
17,305452

19
19,765254(up

12.3%)(up

46.1%)

(down

3.7%)

(up
49.3%)(up 14.2%)(down 43.7%)(Note) Net sales figures are shown after the elimination of internal transactions.
Manufacturing・Production Human Resources Services (NISSO CORPORATION, Vector Shinwa Co., Ltd.)In the Manufacturing・Production Human Resources Services, the Group is mainly engaged in
manufacturing dispatching and manufacturing contracting, and will strengthen its service provisionsystem to clients and improve the share ratio of account clients in order to improve efficiency andstrengthen its earning power.
During the period under review, the number of enrolled staff amounted to 14,118 (up 1,123 year-onyear) by responding to the strong human resources needs of clients. In addition, as a result ofefforts to improve communication in order to create a comfortable workplace, the turnover rate of
employed workers remained at a low level of 3.8% (which was at 3.7% in the corresponding period of
the previous fiscal year). As a result, net sales per capita amounted to 407 thousand yen (which was
at 402 thousand yen in the corresponding period of the previous fiscal year), partly due to theeffect of increased enrollment, and revenue increased by 12.3% year-on-year.
Engineering Human Resources Services (NISSO CORPORATION, Vector Shinwa Co., Ltd.)In the Engineering Human Resources Services, the Group dispatches engineers mainly in the
manufacturing industry and provides SES (System Engineering Service), and it will continue to expand
the high value-added area and develop it into the next core business.
During the period under review, the number of enrolled engineers was 1,239 (up 378 year-on-year) byexpanding educational opportunities for employed workers, and the turnover rate remained at a low
level of 2.3% (which was at 1.4% in the corresponding period of the previous fiscal year). As aresult, although net sales per capita amounted to 514 thousand yen (which was at 523 thousand yen in
the corresponding period of the previous fiscal year), due to the effect of increased enrollment,
revenue increased by 46.1% year-on-year.
Administrative Human Resources Services (Nisso Brain Co., Ltd.)In the Administrative Human Resources Services, the Group provides general office work dispatching
and BPO (Business Process Outsourcing), and is working to restructure services and develop new menus.
During the period under review, although the Group promoted recruitment activities centered on
public relations and customer attraction activities, due to sluggish growth in the number ofregistrants, the number of enrolled administrative dispatched staff amounted to 600 (down 26 year-onyear).
Other Human Resources Services (Nisso Pure Co., Ltd.)In the Other Human Resources Services, the Group is engaged in light work contracting and sale ofgoods business while utilizing human resources with disabilities.
Nisso Pure Co., Ltd., a special-purpose subsidiary of the Company, aims to create a workplaceenvironment where diverse human resources can flourish. Rather than simply hiring employees withdisabilities, the Group is promoting activities that take advantage of the characteristics of each- 3 -individual, such as being entrusted with light work by external clients, and aiming to coexist withlocal communities, including school officials, support organizations, and the government. The numberof employees with disabilities during the period under review was 210.
(Other Businesses)(Unit: Million yen)
FY 3/2022
Cons. cumulative 1st Qtr.
(April 1, 2021 June 30, 2021)
AmountNet sales
Nursing Care・Welfare Services
Segment profit

742
18

FY 3/2023
Cons. cumulative 1st Qtr.
(April 1, 2022 June 30, 2022)
Amount(YoY)
736
5(down 0.8%)(down 70.4%)(Note) Net sales figures are shown after the elimination of internal transactions.
Nursing Care・Welfare Services (Nisso Nifty Co., Ltd.)In the Nursing Care・Welfare Services, the Group provides facility nursing care and home-based
nursing care, and is working to restructure its provided services while developing new menus.
During the period under review, in the facility nursing care business, which is the mainstay ofthis service, the Group promoted Web previews and other activities on the premise of preventing the
spread of COVID-19 infections. However, the number of residents in the nursing care facilities was
369 (down 12 year-on-year), and the occupancy rates at the facilities was 91.8% (which was at 94.8%
in the corresponding period of the previous fiscal year), a 0.8% decrease in revenue year-on-year.
（２）Description of Financial Position（Assets）
Current assets at the end of the period under review amounted to 18,487 million yen, which was adecrease of 580 million yen from the end of the previous consolidated fiscal year. This was mainly due
to a decrease of 1,059 million yen in cash and deposits.
Non-current assets at the end of the period under review amounted to 8,224 million yen, which was adecrease of 170 million yen from the end of the previous consolidated fiscal year. This was mainly due
to a decrease of 111 million yen in "other" under the investments and other assets category.
As a result, total assets amounted to 26,711 million yen, which was a decrease of 751 million yen
from the end of the previous consolidated fiscal year.
（Liabilities）
Current liabilities at the end of the period under review amounted to 10,176 million yen, which wasa decrease of 234 million yen from the end of the previous consolidated fiscal year. This was mainly
due to a decrease of 467 million yen in provision for bonuses.
Non-current liabilities at the end of the period under review amounted to 3,404 million yen, which
was a decrease of 87 million yen from the end of the previous consolidated fiscal year. This was
mainly due to a decrease of 122 million yen in long-term loans payable.
As a result, total liabilities amounted to 13,581 million yen, which was a decrease of 322 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 13,130 million yen, which was adecrease of 428 million yen from the end of the previous consolidated fiscal year. This was mainly due
to the 182 million yen in profit attributable to owners of parent, and 611 million yen in dividends ofsurplus.
As a result, the equity ratio was at 49.2% (which was at 49.4% at the end of the previous
consolidated fiscal year).
（３）Description of Future Forecast Information such as Consolidated Forecasts, etc.
Regarding the consolidated earnings forecast, there are no changes to the Consolidated Forecast for- 4 -the full year announced in the "Consolidated Financial Results for FY 3/2022" on May 12, 2022.

- 5 -２．Quarterly Consolidated Financial Statements and Notes（１）Quarterly Consolidated Balance Sheet（Unit: Million yen）
FY 3/22(As of Mar. 31, 2022)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Current portion of long-term loans payable
Accrued expenses
Income taxes payable
Contract liabilities
Provision for bonuses
Provision for directors' bonuses
Provision for shareholder benefit program
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets- 6 -1Q of FY 3/23
(Jun. 30, 2022)

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

7,719
9,785
987
(4)
18,487

1,771
2,670
136
4,578

1,766
2,670
130
4,567

970
696
1,667

945
673
1,618

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

2,065
(27)
2,038
8,224
26,711

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

490
5,668
76
245
590
2
17
3,084
10,176

2,509
473
509
3,492
13,903

2,386
514
503
3,404
13,581

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

2,016
2,368
9,025
(298)
13,1110
17
18
13,55927,4620
18
19
13,13026,711

（２）Quarterly Consolidated Statements of Income and Comprehensive Income（Quarterly Consolidated Statement of Income）（First Quarter of FY 3/23）（Unit: Million yen）
1Q of FY 3/22
(Apr. 1, 2021 Jun. 30, 2021)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted 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
Rent expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on sales of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controllinginterests
Profit attributable to owners of parent- 7 -1Q of FY 3/23
(Apr. 1, 2022 Jun. 30, 2022)
18,04515,007
3,038
2,568
470

20,501
17,387
3,114
2,854
259

0
0

0
0

9

-

36
10
13
70

54
10
16
82

-

2

-

6

4
12
16
524

5
13
27
313

7
7
516
52
119
171
345

313
32
98
131
182

-

-

345

182

（Quarterly Consolidated Statement of Comprehensive Income）（First Quarter of FY 3/23）（Unit: Million yen）
1Q of FY 3/22
(Apr. 1, 2021 Jun. 30, 2021)
ProfitOther comprehensive income
Remeasurements of defined benefit plans, netof taxShare of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests- 8 -1Q of FY 3/23
(Apr. 1, 2022 Jun. 30, 2022)
345

182

(2)

0

(0)

(0)

(2)
342

0
182

342

182

-

-

（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.
（Additional Information）（Accounting Estimates Associated with the Spread of COVID-19 Infections）
There are no significant changes to the assumptions regarding the effects of the spread of COVID-19
infections described in the (Additional Information) of the Securities Report for the previous
consolidated fiscal year.
（Significant Subsequent Events）(Change of Equity-method Affiliate (Consolidated Subsidiary Acquisition))
At the Board of Directors' Meeting held on May 19, 2022, the Company resolved to acquire
additional equity interest in Nikon Nisso Prime Corporation, an equity-method affiliate of theCompany, and make it a consolidated subsidiary, and on July 1, 2022, the Company acquired additional
equity interest and made the company concerned a consolidated subsidiary.
(1) Overview of Business Combination① Name of acquired company and its description of business
Name of Acquired Company
Nikon Nisso Prime Corporation
Description of Business
Human resources dispatching・recruitment
Human resources sharing business
Consignment/entrustment・contracting business
Planning, R&D, operation and support of structure development
and opportunity creation for seniors' continued employment② Main reasons for business combination
Nikon Nisso Prime Corporation was established in January 2020 as a joint venture between the
Company and Nikon Corporation in order to integrate the expertise of both companies and createsynergies through collaboration. Since then, Nikon Nisso Prime has been working to enhance thedispatching business, support the active participation of older employees of the Nikon Group, anddevelop, secure, and build a structure for employment opportunities where such employees cancontinue to work.
In addition, through cooperation with local governments, Nikon Nisso Prime Corporation is
promoting new initiatives, such as providing support for the realization of regional
revitalization by passing on the diverse experiences and knowledge of Nikon Nisso Prime's humanresources to local communities, and aims to further strengthen these initiatives.
③ Date of business combination
July 1, 2022
④ Legal form of business combination
Acquisition of shares with cash as consideration⑤ Name after business combination
The name has not been changed.
⑥ Percentage of voting rights acquired
Percentage of voting rights held immediately prior to business combination
Percentage of voting rights additionally acquired on date of business combination
Percentage of voting rights after acquisition
⑦

49.0%
2.0%
51.0%

Main reasons for determining acquisition of company
The Company acquired the voting rights of Nikon Nisso Prime Corporation, an equity-method
affiliate, through the acquisition of shares with cash as consideration.

- 9 -(2) Breakdown by Acquisition Cost and Type of Consideration of Acquired Company
Consideration for acquisition Market value of common stock of Nikon Nisso Prime
Corporation held immediately prior to businesscombination on date of business combination
Market value of common stock of Nikon Nisso Prime
Corporation additionally acquired on date ofbusiness combination
Acquisition cost

262 Million yen

10 Million yen
272 Million yen(3) Details and amount of major acquisition-related expenses
Remuneration, fees, etc. for advisory
1 Million yen(4) Difference Between Acquisition Cost of Acquired Company and Total Acquisition Cost for Each
Transaction that Led to Acquisition
Not finalized at this time.
(5) Amount of Goodwill Generated, Cause of Occurrence, Amortization Method and Amortization Period
Not finalized at this time.
(6) Amount of Assets Accepted and Liabilities Assumed on
Breakdown Thereof
Not finalized at this time.

- 10 -

Date of Business Combination and Main