Summary of Consolidated Financial Results for FY 3/2020〔Japanese GAAP〕
May 12, 2020NISSO CORPORATION
Stock Exchange Listing: Tokyo
6569
ＵＲＬ https://www.nisso.co.jp/
Chairman, President (CEO) &Representative(Title)（Name）Ryuichi Shimizu
Representative Director
Sr. Executive Officer,
Contact Person(Title)Corporate Planning Dept.
（Name）Kenichi Nomura
ＴＥＬ +81-45-514-4323
Director
Scheduled date of Annual
Scheduled date ofGeneral Meeting ofJune 24, 2020
June 25, 2020
payment of dividend
Shareholders
Scheduled date of filing
June 25, 2020
Annual Securities Report
Preparation of supplementarymaterials for financial
results: Yes
Holding of financial results(Video of financial results explanation will be posted on the Company's website on
meeting: Yes
May 15, 2020 (Friday) in Japanese only)
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, 2020 (April 1, 2019 - March 31, 2020)(1) Consolidated results of operations（Percentages represent year-on-year changes）
Net sales
Fiscal year ended
Mar. 31, 2020
Mar. 31, 2019

Operating profit

Ordinary profit

Million yen％

Million yen％

Million yen％

74,966
69,161

8.4
16.8

3,061
2,869

6.7
59.4

3,149
2,895

8.8
62.5

(Note) Comprehensive income

Fiscal year ended Mar. 31, 2020:
Fiscal year ended Mar. 31, 2019:

Net income per share
Fiscal year ended
Mar. 31, 2020
Mar. 31, 2019

Profit attributable toowners of parent
Million yen
％

2,033
2,053

(1.0)
102.4

1,944 Million yen ( 3.6%)
1,876 Million yen (89.0%)

Diluted net income per
share

Yen

Yen

60.51
61.58

59.90
60.14

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

18.1
20.7

14.5
14.2

4.1
4.1

(Reference) Equity in earnings of affiliates

Fiscal year ended Mar. 31, 2020:
34 Million yen
Fiscal year ended Mar. 31, 2019:(2) Million yen(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. "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 ofMar. 31, 2020
Mar. 31, 2019

Net assets

Equity ratio

Net assets per share

Million yen

Million yen％

Yen

22,49421,01911,895
10,54452.9
50.2

351.84314.20(Reference) Equity capital

As of Mar. 31, 2020:
11,895 Million yen
As of Mar. 31, 2019:10,544 Million yen(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. "Net assets per share" is calculated 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, 2020
1,922
(289)
(901)
6,365
Mar. 31, 2019
2,565
0(2,215)5,633

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

Total

Fiscal year ended
Mar. 31, 2019
Mar. 31, 2020

Yen
－
－

Yen
0.00
0.00

Yen
－
－

Yen
37.00
25.00

Yen
37.00
25.00

Fiscal year ending
Mar. 31, 2021
(forecast)

－

－

－

－

－

Total dividends
Million yen
620
845

Dividend payout
ratio(consolidated)

Dividend on
equity(consolidated)

％
30.0
41.3

％
6.2
7.5

－

(Note) 1. The Company's common stock was split at a ratio of 2 shares for 1 share on May 2019. However, regarding thedividends for the fiscal year ended March 31, 2019, the dividend amount before the stock split is listed.
2. The dividend forecast for the fiscal year ending March 31, 2021 has not yet been decided at this time. The
Company will promptly announce it as soon as it becomes possible to disclose the earnings forecast in the
future.
3. Consolidated Forecast for the Fiscal Year Ending March 31, 2021 (April 1, 2020 – March 31, 2021)
The consolidated (earnings) forecast for the fiscal year ending March 31, 2021 has not yet been decided due to thedifficulty of reasonably calculating the effects of the new coronavirus (COVID-19) at this time. The Company willpromptly announce the disclosure of the consolidated (earnings) forecast as soon as it becomes possible to in the
future.

※ Notes（１）Changes in the significant subsidiaries during the period (changes in specified subsidiaries resulting in changes
in the scope of consolidation: None
Newly added:（Co. name）－、Excluded（Co. name）－（２）Changes in accounting policies and accounting estimates, and restatements① Changes in accounting policies due to revisions in accounting standards, etc.：② Changes in accounting policies other than ① above：③ Changes in accounting estimates：④ Restatements：（３）Number of outstanding shares（Common stock）① Number of shares outstanding at theend of the period （including
treasury shares）② Number of treasury shares at the endof the period③ Average number of shares outstanding
during the period

None
None
None
None

As of Mar.
31, 2020

34,201,200

Shares

As of Mar.
31, 2019

33,961,200

Shares

As of Mar.
31, 2020

390,853

Shares

As of Mar.
31, 2019

400,174

Shares33,598,989

Shares33,352,061

SharesFiscal year

Fiscal year

ended Mar.

ended Mar.

31, 2020

31, 2019(Note) The Company's common stock was split at a ratio of 2 shares for 1 share on August 22, 2018, and then at aratio of 2 shares for 1 share on May 1, 2019. "Number of shares outstanding at the end of the period", "numberof treasury shares at the end of the period" and "average number of shares outstanding during the period" arecalculated 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, 2020（April 1, 2019 - March 31, 2020）(1) Non-consolidated results of operations（Percentages represent year-on-year changes）
Net sales
Fiscal year ended
Mar. 31, 2020
Mar. 31, 2019

Operating profit

Ordinary profit

ProfitMillion yen％

Million yen％

Million yen％

Million yen％

69,20963,474

9.0
19.3

3,119
2,962

5.3
64.9

3,124
2,943

6.2
67.3

2,030
2,240

(9.4)
124.0

Yen

Diluted net income per
share
Yen

60.43
67.18

59.81
65.61

Net income per share
Fiscal year ended
Mar. 31, 2020
Mar. 31, 2019

(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. "Net income per share" and "diluted net income per share" are calculated
assuming that the shares were split at the beginning of the previous fiscal year.
(2) Non-consolidated financial position
Total assets
As ofMar. 31, 2020
Mar. 31, 2019

Net assets

Equity ratio

Net assets per share

Million yen

Million yen％

Yen

20,024
18,482

11,247
9,852

56.2
53.3

332.68293.58(Reference) Equity capital

As of Mar. 31, 2020:
11,247 Million yen
As of Mar. 31, 2019:
9,852 Million yen(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. "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
The consolidated (earnings) forecast for the fiscal year ending March 31, 2021 has not yet been decided due to thedifficulty of reasonably calculating the effects of the new coronavirus (COVID-19) at this time. The Company willpromptly announce the disclosure of the consolidated (earnings) forecast as soon as it becomes possible to in the
future..
（Supplementary materials for financial results and method of obtaining content for financial results briefing）
Materials related to the explanation of the Company's financial results are scheduled to be posted on its website
on May 12, 2020 (Tuesday).

○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
4（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） ………………………………………………………………
（Segment Information） ……………………………………………………………………………………………

14
14（Per Share Information） …………………………………………………………………………………………
（Significant Subsequent Events） ………………………………………………………………………………

16
16

－

1 －

１．Overview of Operating Results（１）Overview of Operating Results for the Current Fiscal Year
Although Japan's economy during the current consolidated fiscal year (hereinafter, the “period underreview") weakened due to due to developments in the U.S.-China trade issues, trends in overseas economies
such as the outlook for the Chinese economy, and fluctuations in financial and capital markets, withcorporate profits remaining firm and the employment situation improving steadily, it showed a gradual
recovery. However, due to the spread of the new coronavirus (hereafter, “COVID-19”), the economy has beensignificantly depressed in recent months, and the situation remains uncertain.
As for the business environment surrounding the Nisso Group (hereinafter, the “Group"), although the
production of domestic manufacturers, who are NISSO CORPORATION's (hereinafter, the “Company") importantclients, was affected by the consumption tax hike in some transportation machinery (mainly automobiles)
companies, production trends remained firm. On the other hand, the electronic components ・devices
industries remained weak due to stagnant trends in product demand. In addition, although the employment
situation has shown signs of improvement, the spread of COVID-19 is also affecting the external humanresource utilization needs of the Company's clients.
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 andBringing Out the Best in People", and in order to achieve the mission of “Becoming the Leader in Absolute
Evaluation in the Manufacturing-related Human Resources Business Field", the Company is striving tofurther 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 "AccountCompanies", 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. In addition, by
actively utilizing its 9 training facilities located throughout Japan, the Company has put into practiceeducation that contributes to the improvement of profits.
Meanwhile, in Other Businesses, although investment costs were incurred as a result of the opening of
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 care services,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 74,966
million yen (up 8.4% year-on-year), operating profit of 3,061 million yen (up 6.7% year-on-year), ordinary
profit of 3,149 million year (up 8.8% year-on-year), and profit attributable to owners of parent amounted
to 2,033 million yen (down 1.0% year-on-year).
The results of operations by segment are as follows:（General Human Resources Services Business）
Within the General Human Resources Services Business, the Company carries out manufacturing dispatching
and contracting for its manufacturing-related human resources services, general office work dispatching
and BPO (Business Process Outsourcing: the outsourcing of operations and processes of specific businessrelated tasks to a [third-party] specialized company) for its administrative human resources services.
In manufacturing-related human resources services, which is the core business of this business segment,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 in the fields ofautomobiles, electrical devices, precision and electrical machinery, etc. By putting into practiceeducation that utilizes these training facilities, the number of enrolled staff increased by 728 comparedto the end of the previous consolidated fiscal year, through increases in the manufacturing staff's
motivation to work and improvements in retention rates.
On the other hand, despite an increase in sales with the increase in staff enrollment, there was anincrease in revenue and a decrease in profits, since the increase in expenses such as training andemployee recruiting expenses were not absorbed.
As a result, net sales amounted to 72,178 million yen (up 8.2% year-on-year), and operating profit－

2 －was 3,117 million yen (down 0.1% year-on-year).
（Other Businesses）
The Company operates nursing care 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, by striving to improve profitability by reducing the cost of sales,such as personnel and operating expenses, including for existing facilities, operating losses werereduced.
As a result, net sales amounted to 2,796 million yen (up 12.5% year-on-year), and operating loss was
54 million yen (which was at a loss of 247 million yen in the corresponding period of the previousyear).

－

3 －（２）Overview of Financial Position for the Current Fiscal Year
（Assets）
Current assets at the end of the period under review amounted to 15,622 million yen, which was anincrease of 1,447 million yen from the end of the previous consolidated fiscal year. This was mainly
due to increases of 731 million yen in cash and deposits, and 676 million yen in notes and accounts
receivable (trade).
Non-current assets at the end of the period under review amounted to 6,871 million yen, which was anincrease of 26 million yen from the end of the previous consolidated fiscal year. This was mainly due
to an increase of 100 million yen in deferred tax assets.
As a result, total assets amounted to 22,494 million yen, which was an increase of 1,474 million yen
from the end of the previous consolidated fiscal year.
（Liabilities）
Current liabilities at the end of the period under review amounted to 9,279 million yen, which was
an increase of 117 million yen from the end of the previous consolidated fiscal year. This was mainly
due to an increase of 485 million yen in accrued consumption taxes.
Non-current liabilities at the end of the period under review amounted to 1,319 million yen, which
was an increase of 6 million yen from the end of the previous consolidated fiscal year. This was
mainly due to a 179 million yen increase in net defined benefit liability.
As a result, total liabilities amounted to 10,598 million yen, which was an increase of 124 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 11,895 million yen, which was anincrease of 1,350 million yen from the end of the previous consolidated fiscal year. This was mainly
due to an increase in retained earnings of 1,412 million yen as a result of the appropriation of 2,033
million yen in profit attributable to owners of parent, and the payment of 620 million yen in
dividends of surplus.
As a result, the equity ratio was 52.9% (which was at 50.2% at the end of the previous consolidated
fiscal year).
（３）Overview of Cash Flows for the Current Fiscal Year
Cash flows for the period under review are as follows: Net cash provided by operating activities was
1,922 million yen, net cash used in investing activities was 289 million yen, and net cash used infinancing activities was 901 million yen.
As a result, cash and cash equivalents for the period under review increased by 731 million yen to
6,365 million yen compared to the balance at the beginning of the current period.
The status and contributing factors of cash flows from operating, investing and financing activities
in the period under review are as follows:（Cash flows from operating activities）
Net cash provided by operating activities amounted to 1,922 million yen (which was an inflow of
2,565 million in the previous consolidated fiscal year), as a result of inflows such as 3,115 million
yen in profit before income taxes and a 485 million yen increase in accrued consumption taxes, which
absorbed outflows such as 1,072 million yen in income taxes paid.
（Cash flows from investing activities）
Net cash used in investing activities amounted to 289 million yen (which was an inflow of 0 million
yen in the previous consolidated fiscal year), as a result of outflows such as 190 million yen inpurchase of securities and 187 million yen in purchase of intangible assets.
（Cash flows from financing activities）
Net cash used in financing activities amounted to 901 million yen (which was an outflow of 2,215
million in the previous consolidated fiscal year), as a result of outflows such as 620 million yen in
cash dividends paid and 183 million yen in repayments of long-term loans payable.

－

4 －（４）Future Prospects
With regard to future prospects, due to the worldwide spread of COVID-19, the decline in orders due toactivity restrictions in exporting partner countries, and the lack of parts due to disruptions of supply
chains resulted in line outages and operation restrictions of domestic manufacturers, many of whom are
the Company's clients. In Japan, in the event that COVID-19 spreads for a prolonged period of time, itwill further affect the production trends of the Company's clients, and the scale of transactions withthem may be reduced or transactions may be terminated, so the business environment for future prospects
are uncertain.
In addition, there are concerns that corporate profits will deteriorate, due to restrictions on mobility,
which will affect the recruitment of human resources.
Under these circumstances, based on its founding philosophy of “Nurturing and Bringing Out the Best in
People", the Group will continue to implement the following initiatives in order to achieve businessgrowth, with the aim of creating workplaces where workers can gain a sense of fulfillment and flourish,
as well as providing services that can contribute to its growth as a company.
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, to Account Companies,
who are positioned as important clients, the Group will strive to actively conduct human resources
development by utilizing its own education facilities to enhance the skills of manufacturing staff and to
improve its retention rates.
Regarding Other Businesses, the Group will improve the quality of services provided by its nursing carefacilities, “Sweatpea", which are located in 6 places throughout Yokohama, and strive to increase thenumber of residents at those facilities. In addition, the Group will continue to make efforts to improve
its management structure by promoting the efficiency of its operations, and to increase profitability.
Furthermore, the Group will strengthen its measures to prevent the spread of COVID-19 and promote its
business activities with the safety of its clients and employees as its top priority.
However, due to the difficulty of reasonably calculating its effects on the Group's business activities
at this time, the consolidated (earnings) forecast has not yet been decided. The Company will promptly
announce its disclosure as soon as it becomes possible to in the future.

（５）Basic Policy on Profit Distribution and Dividends for Current and Next Terms
The Company considers the redistribution of profits to shareholders and the enhancement of corporate
value as key management issues, taking into consideration the balance between securing funds for growthinvestments and strengthening the corporate structure that can respond to changes in the businessenvironment. In addition, by setting the consolidated dividend payout ratio of 30% as a generalstandard, the Company's basic policy is to continue to steadily redistribute profits to all of its
shareholders.
Furthermore, although the Company considers the year-end dividends as a general principle, theArticles of Incorporation stipulate that it is possible to distribute dividends of surplus twice a year
as interim dividends and year-end dividends in order to enhance the redistribution of profits toshareholders. As the decision-making body, the Board of Directors is determined to make it possible toflexibly carry out the payment of interim dividends while taking into consideration performance trends
and other factors.
In accordance with the above policy, the dividend for the fiscal year ended March 31, 2020 isscheduled to be a payment of 25.00 yen per share (consolidated dividend payout ratio of 41.3%).
The dividends for the fiscal year ending March 31, 2021 has not yet been decided due to the difficultyof forecasting business performance at this time. The Company will announce the dividend forecast assoon as it becomes possible to disclose the consolidated (earnings) forecast in the future.

－

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: Million yen)
FY 3/19（As of Mar. 31, 2019）
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Leased assets
Other
Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets－

7 －FY 3/20（As of Mar. 31, 2020）

5,633
7,757
561
232
(10)
14,174

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

5,462(3,429)
2,033
2,760
487
(338)
149
4,942

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

216
143
359

121
255
377

167
660
373
5
337
(1)
1,542
6,844
21,019

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

(Unit: Million yen)
FY 3/19（As of Mar. 31, 2019）
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 3/20（As of Mar. 31, 2020）

183
110
4,751
742
1,418
738
1,216
9,161

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

750
146
124
290
1,312
10,474

623
68
303
324
1,319
10,598

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

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

41

-

1
(32)

1
(79)

9

(78)

10,54421,01911,89522,494

（２）Consolidated Statements of Income and Comprehensive Income（Consolidated Statement of Income）(Unit: Million yen)
FY 3/19(Apr. 1, 2018 –Mar. 31, 2019)
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
Loss on sales of investment securities
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 3/20(Apr. 1, 2019 –Mar. 31, 2020)
69,161
56,922
12,2399,370
2,869

74,96661,85013,115
10,054
3,061

3
13

3
3

-

34

49
40
40
147

53
35
30
160

30

14

2

-

19
23
45
121
2,895

22
34
71
3,149

74
74

121
121

65
65
2,903
885
(35)
849
2,053

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

-

-

2,053

2,033

（Consolidated Statement of Comprehensive Income）(Unit: Million yen)
FY 3/19(Apr. 1, 2018 –Mar. 31, 2019)
ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Remeasurements of defined benefit plans, netof taxShare of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests

－

10 －

FY 3/20(Apr. 1, 2019 –Mar. 31, 2020)
2,053

2,033

(119)

(41)

(58)

(47)

(0)

(0)

(177)
1,876

(88)
1,944

1,876

1,944

-

-

（３）Consolidated Statement of Changes in Equity
FY 3/19 (Apr. 1, 2018 - Mar. 31, 2019)(Unit: Million yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodIssuance of new shares –(exercise of shareacquisition rights）

Capital surplus

Retained earnings

1,985

2,336

4,808

20

20

Total shareholders'equityTreasury shares
-

9,130

41

Dividends of surplus

(348)

(348)

Profit attributable toowners of parent

2,053

2,053

Purchase of treasury
shares(342)

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

(342)
-

20

20

1,705

(342)

1,404

2,006

2,357

6,514

(342)

10,535

Accumulated other comprehensive income

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

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurements ofdefined benefit
plans

Total accumulated
othercomprehensive
income

160

1

25

187

Total net assets

9,317

41

Dividends of surplus(348)

Profit attributable toowners of parent

2,053

Purchase of treasury
shares(342)

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

(119)

(0)

(58)

(177)

(177)

(119)

(0)

(58)

(177)

1,227

41

1

(32)

9

10,544－11 －FY 3/20 (Apr. 1, 2019 - Mar. 31, 2020)(Unit: Million yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodIssuance of new shares (exercise of shareacquisition rights）

Capital surplus

Retained earnings

2,006

2,357

6

6

6,514

Total shareholders'equityTreasury shares(342)

10,535

12

Dividends of surplus

(620)

(620)

Profit attributable toowners of parent

2,033

2,033

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

6

(0)

(0)

8

14

6

12

1,412

7

1,439

2,012

2,369

7,926

(334)

11,974

Accumulated other comprehensive income

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

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurements ofdefined benefit
plans

Total accumulated
othercomprehensive
income

41

1

(32)

9

Total net assets

10,544

12

Dividends of surplus(620)

Profit attributable toowners of parent

2,033

Purchase of treasury
shares(0)

Disposal of treasury
shares14

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

(41)

(0)

(47)

(88)

(88)

(41)

(0)

(47)

(88)

1,350

-

1

(79)

(78)

11,895－12 －（４）Consolidated Statement of Cash Flows(Unit: Million yen)
FY 3/19(Apr. 1, 2018 –Mar. 31, 2019)
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
Purchase of securities
Proceeds from sales of securities
Purchase of property, plant and equipment
Purchase of intangible assets
Other, net
Cash flows from investing activities
Cash flows from financing activities
Proceeds 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 3/20(Apr. 1, 2019 –Mar. 31, 2020)

2,903
285

3,115
303

3

(6)

210
37

140
(4)

72

120

(74)
65
(17)
30

(117)
152
(6)
14

2

(34)

(965)

(676)

19

2

420
333
(7)
3,321
17
(30)
13
(756)
2,565

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

(0)
173
(120)
(58)
6
0

(190)
210
(122)
(187)
0
(289)

200
(1,651)
(115)
41
(342)
(348)
(2,215)

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

-

-

349

731

5,283
5,633

5,633
6,365

（５）Notes regarding Consolidated Financial Statements（Notes regarding Going Concern Assumption）
Not applicable.
（Segment Information）
１．Overview of reportable segments
The reportable segments of the Group are constituent units for which separate financial information
is available, and are evaluated regularly by the Board of Directors to determine the allocation ofmanagement resources and assess performance.
The Group is comprised of segments classified according to the content of the businesses, and its 2reportable segments are the "General Human Resources Service Business" and "Other Businesses".
２．Calculation methods for net sales, profits or losses, assets, liabilities, and other items for eachreportable segment
The accounting methods used for reportable segments are the same as those adopted for the
preparation of the consolidated financial statements.
Profits for reportable segments are based on operating profit figures.
Inter-segment sales or transfers are based on prevailing market prices.
３．Information related to net sales, profits or losses, assets, liabilities, and other items for eachreportable segment
FY 3/19 (Apr. 1, 2018 - Mar. 31, 2019)(Unit: Million yen)Amounts shown on
Consolidated
Statement of
Income（Note）２

Reportable Segments
General Human
Resources
Service Business

Other
Businesses

Adjustments（Note）１

Subtotal

Net sales

66,676

2,485

69,161-

69,161

8

-

8

(8)

-

66,684

2,485

69,170(8)

69,161

Segment profit (loss)

3,120

(247)

2,873

(4)

2,869

Segment assets

19,098

1,922

21,020(1)

21,019

264

9

274

10

285

2

-

2

-

2

3

247

-

247

Sales to external clientsInter-segment sales ortransfers
Total

Other items
Depreciation
Investment in equity-method
affiliates

Increase in property, plantand equipment and244
intangible assets（Note）１．The adjustments are as follows:（１）The adjustments on segment profit (loss) of (4) million yen are eliminations of inter-segment
transactions.
（２）The adjustments on segment assets of (1) million yen are eliminations of transactions.
（３）The adjustments on depreciation of 10 million yen is the depreciation not included in segment profit(loss).
２．Segment profit (loss) is adjusted with operating profit on the Consolidated Statement of Income.

－

14 －

FY 3/20 (Apr. 1, 2019 - Mar. 31, 2020)(Unit: Million yen)Amounts shown on
Consolidated
Statement of
Income（Note）２

Reportable Segments
General Human
Resources
Service Business

Other
Businesses

Adjustments（Note）１

Subtotal

Net sales

72,1702,796

74,966-74,966

7

-

7

(7)

-

72,1782,796

74,974(7)

74,966

Segment profit (loss)

3,117

(54)

3,063

(2)

3,061

Segment assets

20,715

1,819

22,535(41)

22,494

Depreciation

289

6

296

7

303

Investment in equity-method
affiliates

226

-

226

-

226

284

0

285

-

285

Sales to external clientsInter-segment sales ortransfers
Total

Other items

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

－

15 －

（Per Share Information）
FY 3/19(Apr. 1, 2018 –Mar. 31, 2019)

FY 3/20(Apr. 1, 2019 –Mar. 31, 2020)

Net assets per share314.20 Yen

351.84 Yen

Net income per share

61.58 Yen

60.51 Yen

Diluted net income per share

60.14 Yen

59.90 Yen

(Note) １. By the resolutions of the Board of Directors on August 6, 2018, and on March 15, 2019, the Company's common
stock was 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, respectively. Net assets per share, net income per share, and diluted net income pershare are calculated assuming that the stock split was made at the beginning of the previous consolidated
fiscal year.
２．The basis for the calculation of the net income per share is as follows:

FY 3/19(Apr. 1, 2018 –Mar. 31, 2019)

FY 3/20(Apr. 1, 2019 –Mar. 31, 2020)

2,053

2,033

-

-

2,053

2,033

33,352,061

33,598,989--

798,923

343,751（798,923）（343,751）－－

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

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

－

16 －