nms Holdings Corporation
Overview of Financial Resultsfor Fiscal Year Ended March 31, 2019

(JASDAQ 2162)● Net sales

The EMS Business saw a decline in demand for machine tool-related products and overseas
household appliances. However, firm demand in the Human Resource Solution Business (HSBusiness), mainly in the domestic human resources business, led to growth in net sales.

● Profit・ Factors that put pressure on profit included the decline in orders and steep rise in material
prices in the EMS Business and the PS Business due to deceleration in the growth in theChinese economy, and approximately ¥600 million in advance investment costs incurred in
the HS Business in relation to contracting provision of services for foreign technicaltrainees and the establishment of a third party logistics contracting and technical logistics
processing business, and the launch of a company that dispatches technicians.
・ Both operating income and ordinary income outperformed the earnings forecasts disclosed
on February 8, 2019. The slight decline in profit attributable to owners of parent reflected
the loss on the liquidation of a business, however, the benefits derived from reforms will bereflected in the results for fiscal year ending March 31, 2020.
(Million yen)

Earnings Forecasts(Disclosed Feb. 8, 2019)

Results% Change

57,50057,7590.5%

Operating income

520

548

5.4%

Ordinary income

510

569

11.6%

Profit attributable toowners of parent

430

415

(3.5%)Net sales

11. Financial Performance for Fiscal Year Ended March 31, 2019
Net sales were firm and the decline in profit reflected the cost of advance investment
and structural reforms implemented. However, the benefits of these measures will be
reaped in fiscal year ending March 31, 2020.

(Million yen)

Net sales

Operating income

FYE
March 31, 2018
Results

FYE March 31, 2019
Results

YoY

54,17257,759

6.6%

1,292

548

(57.5%)

Ordinary income

1,506

569

(62.2%)

Profit attributable toowners of parent

1,188415(65.0%)©nms Holdings Corporation

Main Points[Net sales]
Sales were firm in the HS Business and PSBusiness.
[Operating income]The decline in operating income wasmainly caused by the cost of advanceinvestment and the steep rise in material
prices.
[Ordinary income]Non-operating income:(Up ¥74 million YoY)
Non-operating expenses:(Up ¥267 million YoY)¥542 million¥522 million[Extraordinary income]Gain on the sale ofnon-current assets:¥126 million
Gain on the sale ofinvestment securities:¥38 million
Gain on reversal of
FX translation adjustment: ¥91 million[Extraordinary loss]
Cost of businessstructure reform:
Business liquidation loss:¥47 million¥99 million

22. Financial Performance Highlights by Segment(Million yen)

HS Business

EMS Business

PS Business

Segment
Eliminations

Total

FYE
March 31, 2018
Results

FYE March 31, 2019

Results

Main Points

YoYNet sales

17,06919,33113.3%

Segment
income610

196(67.8%)

Net sales

26,16525,819(1.3%)

Segment
income648436(32.6%)

Net sales

10,936

12,60815.3%

Segment
income469443(5.6%)

Segment
income(436)(527)―Net sales

54,17257,7596.6%

Segment
income1,292548(57.5%)

Domestic demand for the business was
firm despite the pressure on profits fromthe cost of advance investment in a newlogistics-related company, a company toprovide training for foreign technicaltrainees, and other investments (approx.
¥600 million).
Expenses associated with theestablishment of a manufacturing plant in
Vietnam were recognized in addition to thedeceleration in demand for machine toolrelated products and overseas household
appliances, but steps will be taken to
improve income next period and beyond.
Segment income declined due to theimpact from the steep rise in materialprices, but the hiatus in demand ended,and new orders also contributed to arebound in sales.
We also began shipping and delivery ofbattery packs.
Company-wide expenses attributable to theholding company* These expenses were not allocated to theindividual segments due to the migration to aholding company structure and have thus been
eliminated from segment profits.

* 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

Up 13.3% YoYSegment
income

The cost of advance investment in establishing a contracting business for foreign technicaltrainees, and establishing a third party logistics contracting and technical logistics
processing company, as well as the start-up costs associated with consolidation of atechnician dispatch company put pressure on profits. However, these costs were incurredas part of our growth strategy and we will work to reap the results quickly and improve
profitability.

[Business Entity]
Nippon Manufacturing
Service Group

1,000

19,331

20,00017,069750

15,000Net sales¥

Down 67.8% YoY(Million yen)

(Million yen)

10,000

5,000

0610
500

FY ended March 31, 2018
Full Year©nms Holdings Corporation

196

FY ended March 31, 2019
Full Year

Segment income

196 million

Overseas

China continued to see changes in the market environment and a rapid rise in personnel
costs and other expenses, but we stepped up efforts to expand local contract manufacturing
overseas. In Vietnam and Thailand, we worked to promote combining expertise in the EMS
Business within the group, proposed the introduction of labor-saving measures, and took
other steps to promote new services and improve profitability.

Segment
income19,331 million¥

In the manufacturing worker dispatch/contract manufacturing business, we worked to
improve hiring ability and retention by making employees full-time employees, utilizing
foreign technical trainees, and taking other steps. Demand remained firm.

Net sales

Net salesJapan25004

(For Reference) Financial Performance by Segment: EMS Business

Down 1.3% YoYSegment
incomeThe pace of growth in household appliance-related demand slowed in Malaysia, while
demand in China was strong.

TKR Corporation (TKR): A new plant was completed in Vietnam in April 2019 in addition to
those already established in China and Malaysia. On March 31, 2019, Sony Corporation soldthe functions and business of Sony Service and Operations of Americas, a business divisionof its U.S. subsidiary Sony Electronics Inc., and the production plant in Mexico to TKR, aspart of TKR’s expansion of its global business structure and goal of business expansion.

・ SHIMA ELECTRONIC
INDUSTRY Group・ TKR Group25,81925,000Net sales

15,000

5,000

0750

648

20,00010,000[Business Entity]

1,000

26,165¥

Down 32.6% YoY(Million yen)

(Million yen)
30,000FY ended March 31, 2018
Full Year©nms Holdings Corporation

436

500

Segment income

436 million

Overseas

Segment
income25,819 million¥The pace of growth in machine tool-related demand slowed upon entering the secondquarter, but demand was firm for existing products in general.

Net sales

Net sales

Japan250

FY ended March 31, 2019
Full Year05

(For Reference) Financial Performance by Segment: PS Business・ Sales rebounded, due in part to the steady start of mass production of new orders andincrease in the shipment of sample products as the segment completed adjustments todemand for existing products and moved past the hiatus in introduction of new products
for new areas.

Overall

Net sales

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

12,608 million

・ The Matsusaka Factory in Mie Prefecture was opened on January 11, 2018 as adevelopment and mass production center for that. Production started in September 2018,
and deliveries began in October.

¥UP 15.3% YoY

12,608
10,936

Net sales
5,000[Business Entity]
Power Supply
Technology CO., LTD.

469

10,0000443

Segment
income¥Down 5.6% YoY750

FY ended March 31, 2018
Full Year©nms Holdings Corporation

500

250

FY ended March 31, 2019
Full Year

Segment income

443 million(Million yen)

(Million yen)
15,000Net sales

Segment
income

The areas of application for battery packs are expanding, and we aim to grownet sales and segment income through the two strategies of strengthening thebusiness base and developing, manufacturing, and expanding sales of newproducts.

06

3. Financial Performance Highlights (B/S)(Million yen)

Current assets
Non-current assets

March 31, 2018

March 31, 2019

ChangeMain Points

20,43422,082

1,648

6,061

7,380

1,319

Property, plant andequipment

4,505

5,612

1,107

Intangible assets

503

540

36

1,053

1,227

174

Total assets

26,496

29,462

2,966

Total liabilities

20,34523,717

3,371

13,584

21,744

8,159

6,761

1,973

(4,787)

6,150

5,744

(405)

26,496

29,4622,966

Investment and otherassets

Current liabilities
Non-current liabilities

Total net assets
Total liabilities andnet assets©nms Holdings Corporation

Cash and deposits:(¥290 million)
Notes and accounts
receivable – trade:¥699 million
Inventories: ¥1,057 million

The increase was due toacquisition of theMatsusaka Factory in thePS Business.

[Loans payable balance]
Mar. 31, 19: ¥14,286 million
Mar. 31, 18: ¥10,636 million

74. Financial Performance Highlights (Cash Flows)(Million yen)

Income before income taxes
Depreciation

March 31, 2018

March 31, 2019

1,664

694716828

Main Points

Notes and accounts
receivable – trade:(¥885 million)
Inventories:(¥1,210 million)
Accounts payable – trade: ¥243 million(132)(1,852)18(942)

Net cash flow from operating
activities

2,266(1,272)

Purchase/sales of non-current
assets(604)(1,943)

Gains on sale:¥311 million
Expenditures for acquisition:(¥2,255 million)

Other516(156)

Proceeds from sale of investmentsecurities:¥78 million

Net cash flow from investing
activities(87)(2,100)2,178(3,372)(1,115)

3,676

(17)

(521)

Net cash flow from financing
activities(1,133)

3,154

Cash and cash equivalents atend of period

4,449

4,195

Change in operating capital
Other

Free cash flow
Change in loans payable
Payment of dividends, etc.

©nms Holdings Corporation

Dividends paid:(¥77 million)85. Earnings Forecasts for Fiscal Year Ending March 31, 2020
 In fiscal year ending March 31, 2020, we expect to reap the benefits of previous
advance investment and achieve growth in both net sales and income despite thepressure on profits from strategic investments, primarily in the EMS Businesssegment.
 During fiscal year ending March 31, 2020, we will steadily advance efforts to build abase for achieving the new Medium-Term Business Plan (announced on Feb. 8,2019), and will target the next stage of growth.

(Million yen)

Net sales

FYE
March 31, 2019
Results

57,759Operating income

548

Ordinary income

569

Profit attributable toowners of parent415

FYE
March 31, 2020
Forecasts

72,000

24.7%

1,300

136.9%

1,000

75.6%

850

104.5%

H1: 32,000/H2: 40,000©nms Holdings Corporation

YoY

H1: 100/H2: 1,200

H1: 60/H2: 940

H1: 165/H2: 685

9(For Reference) Full-year Earnings Forecasts by Segment
 In the HS Business, we project firm demand in Japan and overseas, in addition to reaping
the benefits of advance investment.
 The EMS Business will see a decline in profit from advance investment in Mexico, Vietnam,
and elsewhere, but we expect the gradual growth to continue in the PS Business.
FYEMarch 31, 2019
Results(Million yen)

27,740

43.5%

196

1,070

446.0%

25,81929,960

16.0%

436

310

(28.9%)

12,60814,30013.4%

Segment income

443

515

16.3%

Segment income

(527)

(595)

―57,759

72,000

24.7%

548

1,300

137.2%

Segment income
Net sales

EMS Business

Segment income
Net sales

PS Business
Segment Eliminations

Total

YoY

19,331

Net sales

HS Business

FYE
March 31, 2020
Forecasts

Net sales
Segment income©nms Holdings Corporation

10(For Reference) 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 Resource
Solution 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 member
countries.

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 Corporation

11(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.)

Japan
Hong Kong(China)
Malaysia•

Japan
Hong 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-voltagetransformers): development, design, manufacturing, sales
Development, design, manufacture and sale of battery management
system related products© nms Holdings Corporation12(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, 2019)

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 CorporationPower Supply Technology CO., LTD.
©nms Holdings Corporation

13

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 Corporation14