(JASDAQ 2162）
nms Holdings Corporation
Overview of the First Quarter of Fiscal Year Ending March 31, 2019

Overview of Financial Performance

Performance Firm Overall; Growth in Both Operating and Ordinary Income
 The company achieved YoY growth in net sales, operating income, and ordinary income
despite the advance costs of investment in building the manufacturing plant in Vietnam for
the EMS Business. This growth resulted from firm demand for the HS Business in Japan andthe contribution from new orders in the PS Business.
 Although profit attributable to owners of parent posted a YoY decline, the decline was in linewith the plan. Contributing factors were ¥58 million in gain on sales of non-current assets; again of ¥161 million on the sale of shares; and ¥48 million in expenses for structural reforms
at overseas locations.

Net sales
Q1 Results(Apr.-Jun. 2018)

Operating income
YoY

Million yen

13,742

Q1 Results(Apr.-Jun. 2018)

YoY

Million yen

Up 6.3%258

Ordinary income
Q1 Results(Apr.-Jun. 2018)

YoY

Million yen

Up 18.5%

203

Profit attributable toowners of parent
Q1 Results(Apr.-Jun. 2018)

YoY

Million yen

Up 27.9%63Down 78.4%

1

1. Financial Performance Highlights
for the First Quarter of Fiscal Year Ending March 31, 2019
 Although profit attributable to owners of parent posted a YoY decline, the decline was in linewith the plan. Contributing factors were a gain of ¥58 million on the sale of property, plant, andequipment; a gain of ¥161 million on the sale of shares; and ¥48 million in expenses forstructural reforms at overseas locations.

(Million yen)

Net sales

Operating income

First Quarter
FYE Mar. 31, 2018
Results

12,932

218

First Quarter
FYE Mar. 31, 2019

ResultsYoY

13,742258

Main Points

6.3%

18.5%

[Ordinary income]Non-operating income: ¥132 million(Up ¥28 million YoY)
Non-operating expenses: ¥187 million(Up ¥24 million YoY)
[Extraordinary income] ¥0 million(Down ¥220 million YoY)

[Extraordinary loss] ¥48 million(Up ¥47 million YoY)

Ordinary income

159

203

27.9%

Profit attributable toowners of parent

293

63

(78.4％)©nms Holdings Corporation2

2. Financial Performance Highlights by Segment(Million yen)
Net salesFirst Quarter
FYE Mar. 31, 2019

First Quarter
FYE Mar. 31, 2018
Results

Results

YoY
Net sales: %Profit: Million yen

4,060

4,524

11.4％

14899(49)

6,287

6,422

2.2%

131124(6)

2,583

2,794

8.2%

20158

137

HS Business
Segment income

Net sales

EMS Business
Segment income

Net sales

PS Business
Segment income

Segment
Eliminations

Main Points
Demand was firm despite the pressure on
profits from the cost of advance investment in a
new logistics-related company, a company toprovide training for foreign technical trainees,and other investments.
Segment income declined YoY due toexpenses associated with the establishment ofa manufacturing plant in Vietnam. However,machine tool-related demand and overseas
manufacturing demand were strong.
The period of adjustment to demand forexisting products and the hiatus in the
introduction of products in new areas ended, asteady start to mass production of new orders,and growth in sample product shipments
resulted in growth in both net sales andsegment income.
Company-wide expenses attributable to theholding company.

Segment income

Net sales

(82)

(123)

(41)

12,932

13,742

6.3%

218

258

40

＊These expenses were not allocated to theindividual segments due to the migration to aholding company structure and have thus been
eliminated from segment profits.

TotalSegment income* HS Business: Human Resource Solution Business; EMS Business: Electronics Manufacturing Service Business; PS Business: Power Supply Business©nms Holdings Corporation3

(For Reference) Financial Performance by Segment: HS Business・ Hiring capabilities were strengthened and the retention rate improved by making
employees full-time employees, utilizing foreign technical trainees, and taking othersteps.
・ The advance investment costs incurred to establish a company to train foreigntechnical trainees and invest in the third party logistics contracting business, thetechnical logistics processing business, and other investment projects caused a YoY
decline in profits.

JapanNet sales

・ China continued to see changes in the market environment and a rapid rise inpersonnel costs and other expenses, but we stepped up efforts to expand local
contract manufacturing overseas.
・ In Vietnam and Thailand, we used group partnerships and resources to respond todemand and drive efforts to improve profitability.

Overseas

Up 11.4% YoY2502004,000148150

3,000

1,000

99100Segmentincome

2,000[Business Entity]
Nippon Manufacturing
Service Group4,524(Million yen)

4,060

Net sales

Down ¥49 million YoY（単位：百万円）

Segment incomeSegment
income¥99 million(Million yen)
5,000

Net sales¥4,524 million

5000

First Quarter
FYE March 31, 2018©nms Holdings Corporation

First Quarter
FYE March 31, 20194

(For Reference) Financial Performance by Segment: EMS Business・ Machine tool-related orders were firm.
・ Profits declined YoY due to expenses incurred to implement key strategic measures
such as establishing the manufacturing plant in Vietnam and launching newbusinesses, but the decline was in line with the forecast.

JapanNet sales

・ Demand for production of household appliances remained firm in China andMalaysia.
・ Structural reforms were implemented at overseas manufacturing sites to prepare for
future changes in production.

Up 2.2% YoY

6,000

150

131

4,000

2,000

[Business Entity]
・ SHIMA ELECTRONIC
INDUSTRY Group・ TKR Group

200

6,422

6,287

Net sales

Down ¥6 million YoY（単位：百万円）

124
1000First Quarter
FYE March 31, 2018©nms Holdings CorporationFirst Quarter
FYE March 31, 2019

50Segment incomeSegment
income¥124 million(Million yen)

(Million yen)
8,000

Segment
incomeOverseas

Net sales¥6,422 million05

(For Reference) Financial Performance by Segment: PS Business・ Both segment sales and profit increased, due in part to the steady start of mass
production of new orders and increase in the shipment of sample products as theOverallsegment completed adjustments to demand for existing products and moved past
the hiatus in introduction of new products for new areas.

Net sales

・ The power supply technology developed up to this point was used to launch thebattery management system business, and order inquiries were strong for LiB
secondary battery packs.

¥2,794 million

・ The Matsusaka Factory in Mie Prefecture was opened on January 11, 2018 as adevelopment and mass production center for that, and mass production isscheduled to begin in September 2018.

Up 8.2% YoY

3,000

Power Supply
Technology CO., LTD.

350

2,794

300
250

2,500

1,500500

20158

0First Quarter
FYE March 31, 2018©nms Holdings Corporation

200150

Segment
incomeNet sales

2,000

1,000

[Business Entity]（単位：百万円）

2,583

Net salesUp ¥137 million YoY(Million yen)

(Million yen)
3,500First Quarter
FYE March 31, 2019

100Segment income

Segment
income¥158 million

・ We will target expansion of orders through the two strategies of strengthening thebusiness base and developing, manufacturing, and expanding sales of newproducts.

50

06

3. Financial Performance Highlights (B/S)(Million yen)March 31, 2018

June 30, 2018

ChangeMain Points

20,43420,920

485

6,061

6,955

893

Property, plant andequipment

4,505

5,441

936

Intangible assets

503

516

12

1,053

997(55)

Total assets

26,49627,875

1,378

Total liabilities

20,34522,035

1,689

13,584

14,370

786

6,761

7,665

903

6,150

5,839(311)

26,49627,875

1,378

Current assets

Non-current assets

Investments and otherassets

Current liabilities
Non-current liabilities

Total net assets
Total liabilities and netassets©nms Holdings Corporation

Cash and deposits: (¥169 million)
Notes and accounts
receivable – trade: ¥166 million
Inventories:¥188 million[Loans payable balance]¥2,858 million
Jun. 30, 2018: ¥13,494 million
Mar. 31, 2018: ¥10,635 million

7nms Group: Three Business Segments
Bringing Japanese Manufacturing Quality to the WorldThis is the rallying cry of the nms group.
Our business is a combination of three business segments that meet the many different needs of ourcustomers, from the Human Resource Solution Business, to the EMS (Electronics Manufacturing Service)Business which performs contract manufacturing and achieves production efficiency, and the Power
Supply Business, which engages in the development, manufacturing, and sale of power sources thatensure the safety and security of many types of equipment.

ＨＳＥＭＳ

ＰＳ

Human ResourceSolution BusinessElectronics Manufacturing
Service Business

Power SupplyBusiness

Staff members who are highly knowledgeable
about products, manufacturing processes andproduction sites are taking an active role in eachregion of Japan, China and ASEAN membercountries.

This business implements total solutions that
help customers to improve their competitivestrength.

This business offers improved solutions that area step above the rest with our technicalexpertise as a dedicated power source
manufacturer.

Legal Entity

Legal Entity

Legal Entity

Nippon Manufacturing
Service Corporation

SHIMA ELECTRONIC
INDUSTRY CO., LTD.
TKR Corporation

Power Supply
Technology CO., LTD.

© nms Holdings Corporation8

(For Reference) nms Group Business Structure

Main Consolidated Subsidiaries

Countries/Regions
Entered(fiscal year end for each company listed inparentheses)

Main Business Activities

Human Resource Solution Business (HS Business)•••

Nippon Manufacturing Service Corporation (Mar.)
Sino-Japan Stafftraining and Dispatch Co., Ltd. (Dec.)
Sino Manufacturing Service Corporation (Dec.)

Japan
China
VietnamThailand•••

Worker dispatch for manufacturing
Customer service for repairs
Dispatch of engineers

Electronics Manufacturing Service Business (EMS Business)••

SHIMA ELECTRONIC INDUSTRY CO., LTD. (Dec.)
TKR Corporation (Dec.)

JapanHong Kong(China)
Malaysia•JapanHong Kong(China)••

Electronics Manufacturing Service business (substrate mounting,substrate assembling, simple pressing, resin molding, assembly,etc.)
Labor-saving Device Manufacturing/Sales business

Power Supply Business (PS Business)••

Power Supply Technology CO., LTD. (Dec.)
TKR Corporation (Dec.)•••

Custom power supply (low/high-voltage): development, design,manufacturing, sales
Magnet roll: development, design, manufacturing, sales
A wide variety of transformers (switching/high-voltage
transformers): development, design, manufacturing, sales
Development, design, manufacture and sale of battery management
system related products© nms Holdings Corporation

9(For Reference)

Corporate Profile
http://www.n-ms.co.jp/english/

Company Name

nms Holdings Corporation

Head Office

Tokyo Opera City Tower 45F, 3-20-2 Nishi-shinjuku, Shinjuku-ku,
Tokyo 163-1445, Japan

Representative

Fumiaki Ono, President and CEO

Capital500,690,000 yen (as of April 1, 2017)

Stock Exchange
Listings

Tokyo Securities Exchange (JASDAQ market)
Securities Code 2162

Business Activities

Integration of group businesses, management of operations, etc.
in the Human Resource Solution (HS) Business,
Electronics Manufacturing Service (EMS) Business, andPower Supply (PS) Business

Main Consolidated
Subsidiaries

Nippon Manufacturing Service Corporation
SHIMA ELECTRONIC INDUSTRY CO., LTD.
TKR Corporation
Power Supply Technology CO., LTD.
©nms Holdings Corporation

10

(For Reference)

Migrated to a Holding Company Structure on April 1, 2017
PurposeTo strengthen group management functions and enable flexible
response on expansion of markets and business domains

 Group management structure after migration to a holding company structure<April 2017 onward>
Nippon Manufacturing Service Corporation[Group management functions][Staffing service business]

SHIMA ELECTRONIC INDUSTRYCO., LTD.

nms Holdings Corporation[Group business integration andmanagement, etc.]
Nippon Manufacturing Service Group[Took over staffing service business]

SHIMA ELECTRONIC INDUSTRY GroupTKR Corporation

TKR Group
Power Supply Technology CO., LTD.

Power Supply Technology Group© nms Holdings Corporation

11

None of the information in these materials constitutes a solicitation to purchase or sellshares in nms Holdings Corporation.
The financial forecasts and other forward-looking statements in these materials are basedon information available at the time these materials were produced as well as certain
assumptions deemed reasonable by the company. Actual results may differ substantially
due to various risks and uncertainties.
nms Holdings Corporation does not make any recommendations, warranties, etc.
concerning the information contained in these materials, and accepts no liability whatsoever
for any damages incurred.

Contact for inquiries:
nms Holdings Corporation
Corporate Communications & IR Dept.
Tel: +81-3-5333-1737
E-mail: nms-ir@n-ms.co.jp©nms Holdings Corporation12