Nisso : Notice of Full-year Consolidated Forecast and Dividend Forecast for the Fiscal Year Ending March 31, 2021

	August 7, 2020
Company Name:	N I S S O C O R P O R A T I O N
Representative:	Ryuichi Shimizu,
	Chairman, President,
	CEO & Representative Director
	(Securities Code: 6569, TSE First Section)
Contact Person:	Kenichi Nomura, Senior Executive Officer,
	Corporate Planning Department Director
	(TEL. [phone])

Notice of Full-year Consolidated Forecast and Dividend Forecast

for the Fiscal Year Ending March 31, 2021

NISSO CORPORATION (hereinafter, the "Company") hereby announces that it has resolved the Full-year Consolidated Forecast and Dividend Forecast for the Fiscal Year Ending March 31, 2021 (April 1, 2020 - March 31, 2021), which was undecided in the "Summary of Consolidated Financial Results for FY 3/2020 [Japanese GAAP]" announced on May 12, 2020, at the Board of Directors' Meeting held earlier today, as follows.

1. Consolidated Forecast

1. Full-yearConsolidated Forecast for the Fiscal Year Ending March 31, 2021 (April 1, 2020 - March 31, 2021)

				Profit
	Net sales	Operating profit	Ordinary profit	attributable to	Net income per
	owners of	share
				parent
Previous forecast（A）	Million yen	Million yen	Million yen	Million yen	Yen
－	－	－	－	－
Present forecast（B）	64,000	1,500	1,750	1,050	31.06
Change（B - A）	－	－	－	－	－
% Change	－	－	－	－	－
(Reference)	74,966	3,061	3,149	2,033	60.51
Previous FY results
(FY 3/2020)

(2) Reason for Earnings Forecast

In the "Summary of Consolidated Financial Results for FY 3/2020 [Japanese GAAP]" announced on May 12, 2020, due to the difficulty in calculating a reasonable outlook for the impact of the spread of the new coronavirus infections (hereinafter, "COVID-19 infections") on the Nisso Group (hereinafter, the "Group") at that time, the Full-year Consolidated Forecast for FY 3/2021 was not yet decided. However, with the lifting of the state of emergency declaration in May 2020, it is assumed that economic activity will gradually resume and that the business environment of the Group will moderately recover with preventive measures from the second quarter onwards, and therefore, the Full-year Consolidated Forecast has been calculated based on the information available at this time, and is being announced.

With regard to the manufacturing-related human resources services, the Group's core business, in the first quarter (April - June 2020), due to a decline in demand as a result of decreases in consumption due to movement restrictions associated with the issuance of the state of emergency declaration, as well as the effects of the spread of global COVID-19 infections, the production lines of the Company's client manufacturers experienced partial stoppages, suspensions of operations, and operational adjustments. On the other hand, in the second quarter (July - September 2020), although their needs for new external human resources utilization have been sluggish, the production activities of client manufacturers related to the Company are showing signs of recovery.

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Trends by major industries are as follows:

		1Q		2Q onwards
	・	Occurrences of suspensions of	·	Resolution of partial stoppages and
		operations and operational adjustments		operational adjustments of production
Automobiles-related		as a result of partial stoppages of		lines due to recovery in domestic and
industries		production lines due to a shortage of		overseas demand, etc.
		parts and a substantial decrease in	·	Production activity is expected to recover
		demand
			moderately in the future
	·	Occurrences of some suspensions of	·	Gradual resolution of suspensions of
		operations and operational adjustments		operations and operational adjustments
Electronic		due to a shortage of parts and a	·	IT-related demand also expected to
devices-related		decrease in demand		remain firm due to changes in behavioral
industries	·	Meanwhile, production activity remains		patterns such as tele-working (working
		firm due to expansion of IT infrastructure		remotely)
		investments

Furthermore, the Group is strengthening measures to prevent the spread of COVID-19 infections and carrying out business activities with the safety of its clients and employees as a top priority. However, in the event of another implementation of movement restrictions as a result of an issuance of a state of emergency declaration due to a second wave of the spread of infections, in addition to an occurrence where individuals are affected by the virus at its clients, workplaces or nursing care facilities, the business activities of the Group may be affected, and such impact on the Company's business performance is uncertain.

Based on the above, the Company has decided to review the management targets for the Medium-term Management Plan for FY 3/2021 to FY 3/2022 in consideration of the impact of COVID-19.

(3) Future Management Policies and Strategies

Going forward, the Company will continue to develop "skilled staff", who are indefinite-term employees, which is the basic strategy of its Medium-term Management Plan, at its own educational facilities, and while following the strategy of assigning such staff to Account Companies, who are important clients of the Group, the Company will continue to forge ahead with its business activities and promptly respond to the rapidly changing business environment, aiming for further growth.

Therefore, the Company will push forward with its business activities by positioning the current fiscal year as a year for strengthening its business management functions and investing in growth for the next fiscal year and beyond. Moreover, the new Medium-term Management Plan will be announced in May 2021, in conjunction with the Full-year Consolidated Forecast for FY 3/2022.

2. Dividend Forecast

1. Dividend Forecast

			Annual dividend per share
	2Q-end		Year-end	Annual
Previous forecast		－	－	－
Present forecast	0.00	yen	9.32 yen	9.32 yen
(Reference)	0.00	yen	25.00 yen	25.00 yen
Previous FY results
(FY 3/2020)

(2) Reason for Dividend Forecast

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 growth investments and strengthening the corporate structure that can respond to changes in the business environment. In addition, by setting the consolidated dividend payout ratio of 30% as a general standard, the Company's basic policy is to continue to steadily redistribute profits to all of its shareholders.

In the "Summary of Consolidated Financial Results for FY 3/2020 [Japanese GAAP]" announced on May 12, 2020, the Dividend Forecast for FY 3/2021 was not yet decided. However, as a result of careful consideration of the earnings forecast and the business environment, the Company has decided to forgo the dividends for the end of the 2nd Quarter, and forecasts the year-end dividends to be 9.32 yen, which is being announced.

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(Notes Concerning Earnings Forecast, etc.)

The forward-looking statements, including the earnings forecast, are calculated based on the information available to the Group at this time and assumptions that are deemed reasonable.

Actual results may differ from the forecasts due to changes in various factors. The Company will promptly announce any significant events that should be disclosed regarding the earnings forecast, etc., in the future.

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