www.nichiigakkan.co.jp

NICHII GAKKAN COMPANY

Financial Results Briefing Document
for the Fiscal Year Ended March 31, 2016
May 17, 2016

Overview of Financial Resultsfor Fiscal Year Ended March 31, 2016

© 2016 Nichii Gakkan Company. All rights reserved.

1

Financial Results Highlights（Unit:million yen）

FY2015.3
Amount

FY2016.3
Amount（Forecast）

Amountyoy（％）

271,868

275,500

273,583

0.6%

5,173

200

▲ 785

-

1.9%

0.1%

▲ 0.3%-

3,144▲ 2,400▲ 3,629

-

%

1.2%

▲ 0.9%▲ 1.3%-Net income attributableto owners of parent

416▲ 3,500▲ 15,995

-

%

0.2%

▲ 1.3%▲ 5.8%-Net Sales
Operating Income%

Ordinary Income※ For the forecast, using the announcement numerical Value November 10, 2015

© 2016 Nichii Gakkan Company. All rights reserved.

2

Overview of Financial Results for Fiscal Year Ended March 31, 2016
Net sales hit record high. Net income fell sharply mainly due to recognition of impairment loss.
(i) In addition to the medical support segment, new businesses (language education, childcare, China)
contributed to sales. Net sales hit record high for the 8 th consecutive fiscal year.
・Net sales: 273,583 million yen (up 1,715 million yen YoY)
・Childcare business - Net sales: 3,382 million yen（up 1,153 million yen YoY);
Number of new child care center openings: 14

・Education business – Net sales: 13,053 million yen（up 788 million yen);
Number of COCO Juku attending students: 11,811（up 4,099 YoY)(ii) Decline in profitability mainly due to impact of revision of nursing care compensation, and delay in hiring staff
・Operating loss:

785 million yen (down 5,958 million yen of operating income YoY)(iii)Sharp drop in net income as a result of recognition of impairment loss and reversal of deferred tax assets
・Recognition of impairment loss: 5,718 million yen; reversal of deferred tax assets: 4,318 million yen
・Net loss: 15,995 million yen（down 16,411 million yen of net income YoY)
© 2016 Nichii Gakkan Company. All rights reserved.
3

Consolidated Net Sales and Operating Income by Segment（Unit:million yen）

Net Sales（Unit:million yen）

yoy

Operating(%）

incomeyoy

FY2015.3

FY2016.3

Medical Support

108,378

108,789

0.4%

Medical Support

8,039

7,605

Long-term care

144,987

143,041▲ 1.3%

Long-term Care

11,546

6,694 ▲ 42.0%

Health Care

4,402

4,057

▲ 7.8%

Health Care

234

556

-

Education

12,265

13,053

6.4%

Education▲ 6,169▲ 5,667-

Child Care

2,228

3,382

51.8%

Child Care

▲ 706

▲ 954

-

Other

1,336

2,541

90.2%

Other

457

▲ 124

-

Elimination▲ 1,730▲ 1,282-

Elimination

8,229▲ 8,894-

Total

271,868

273,583

0.6%

Total

5,173

▲ 785

-

FY2015.3

FY2016.3(%）▲ 5.4%© 2016 Nichii Gakkan Company. All rights reserved.

4

Major Changes in Net SalesYear on year Increase insales of ＋1,715 million yen（Unit : million yen）

＋448

273,583+1,204

Medical Support ＋0.65Billion yen
Medical Education －0.25Billion yen
Home care－2.7Billion yen＋1Billion yen
Care Education－0.25Billion yen＋411＋1,153271,868+788▲1,946▲344
FY15.3

MedicalSupportLong-term
Care

Health Care

Education

Child
Care

Other

FY16.3© 2016 Nichii Gakkan Company. All rights reserved.

5

Major Changes in Operating Income
Year on year Decrease inprofit of ▲5,958million yen（Unit : million yen）

5,173
▲434
Home care
Facility care
Care Education－3.25Billion yen－2.6Billion yen＋1Billion yen

+501
＋321

▲248

▲4,851▲582▲665

FY15.3

MedicalSupportLong-term
Care

Health Care

Education

Child
Care

Other

▲785
FY16.3© 2016 Nichii Gakkan Company. All rights reserved.

6

Changes in Cash flow
(Unit：million yen）

End of March 2015 End of March 2016

Difference

Cash flows from Operating activities

10,6292,546▲ 8,082

Cash flows from Investing activities▲ 8,085▲ 6,250

1,835

Cash flows from Financial activities▲ 3,198

5,381

8,580

Free cash flow

2,543

▲ 3,703▲ 6,246

Cash and cash equivalents at end of year

9,821

14,3734,552© 2016 Nichii Gakkan Company. All rights reserved.

7

FY2017.3 Earnings Forecast© 2016 Nichii Gakkan Company. All rights reserved.

8

FY2017.3 Earnings Forecast（Unit:million yen）

FY2016.3
AmountNet Sales
Operating income%

Ordinary income%

Net income attributableto owners of parent%

FY2017.3
Amountyoy（％）

273,583

294,700

7.7%

▲ 785

4,800

-

▲ 0.3%

1.6%-▲ 3,6291,300-▲ 1.3%

0.4%-▲ 15,995500-▲ 5.8%

0.2%-© 2016 Nichii Gakkan Company. All rights reserved.

9

FY2017.3 Earnings Forecast by segment (Consolidated)（Unit：million yen）

FY2016.3
Medical support

First Harf Second Harf
54,39654,391FY2017.3（Forecast）
Full year

Change108,787

0.4%First Harf Second Harf
57,50057,500

Full year

Change115,000

5.7%

71,76871,272

143,040▲ 1.3%

74,40075,900150,300

5.1%

Health care

1,949

2,113

4,062

▲ 7.7%

2,000

2,900

4,900

20.6%

Education

6,346

6,657

13,003

6.0%

6,800

8,800

15,60020.0%Child care

1,486

1,947

3,433

54.1%

2,300

2,800

5,100

48.6%

China

712

892

1,604

-

1,100

2,900

4,000

149.3%

Other

515

428

943 ▲ 29.4%

500

500

1,000

6.0%

Long-term care

▲ 600

▲ 691

▲ 1,291

-

▲ 600

▲ 600

▲ 1,200-

136,575

137,008

273,5830.6%

144,000

150,700

294,700

7.7%

Medical support

3,831

3,860

7,691

▲ 4.3%

4,000

4,100

8,100

5.3%

Long-term care

3,383

3,426

6,809 ▲ 41.0%

4,300

4,500

8,800

29.2%

132

436

568

142.7%

200

600

800

40.8%

Education▲ 2,862▲ 2,815▲ 5,677-▲ 2,800▲ 800▲ 3,600-

Child care

▲ 460

▲ 423

▲ 883

-

▲ 400

▲ 100

▲ 500

-

China

▲ 410

▲ 623

▲ 1,033

-

▲ 700

▲ 200

▲ 900

-

Other

140

134

274 ▲ 40.0%

200

100

300

9.3%

▲ 4,227▲ 4,306▲ 8,533-▲ 4,200▲ 4,000▲ 8,200-▲ 473▲ 1,701▲ 1,556▲ 312▲ 1,928▲ 14,439▲ 785▲ 3,629▲ 15,995-

600▲ 1,100▲ 1,500

4,200
2,400
2,000

4,800
1,300
500

-

Elimination

Net Sales

Health care

Elimination

Operating income
Ordinary income
Net Income--© 2016 Nichii Gakkan Company. All rights reserved.

10

FY2017.3 Earnings Forecast by segment (Non-consolidated)（Unit:million yen）

FY2016.3
First Harf

Second Harf

FY2017.3(Forecast)

Full yearchangeFirst Harf

Second Harf

Full yearchangeMedical support

54,23054,237

108,467

0.5%

57,30057,200114,500

5.6%

Long-term care

61,33961,671122,010 ▲ 2.0%

63,00063,500126,500

3.7%

Health care

1,721

1,702

3,423

26.1%

1,750

2,450

4,200

22.7%

Education

794

807

1,601

12.5%

1,000

2,700

3,700 131.1%

Child care

1,459

1,924

3,383

51.8%

2,300

2,800

5,100

50.8%

119,545

119,340

238,8850.0%

125,350

128,650

254,000

6.3%

Medical support

1,943

1,931

3,874 ▲ 11.8%

2,050

2,250

4,300

11.0%

Long-term care

1,088

813

1,901 ▲ 68.0%

1,800

1,600

3,400

78.9%

Health care

193

227

420 ▲ 13.8%

200

350

550

31.0%

Education▲ 3,523▲ 3,354▲ 6,877-▲ 3,300▲ 1,400▲ 4,700-

Child care

▲ 519

▲ 496

▲ 1,015

-

▲ 400

▲ 250

▲ 650

-

▲ 818
▲ 879 ▲ 1,697▲ 748 ▲ 2,024 ▲ 2,772▲ 926 ▲ 15,767 ▲ 16,693

-

350
200
50

2,550
1,500
1,650

2,900
1,700
1,700

-

Net saleOperating income
Ordinary income
Net Income--© 2016 Nichii Gakkan Company. All rights reserved.

11

FY2017.3 Earnings Forecast Major Changes in Net Sales（Unit：million yen）

＋2,396＋57+91

294,700＋1,667・Medical Support＋5.7Billion yen
・Medical Education＋0.5Billion yen＋2,597＋7,260＋838＋6,213Home care＋2.35Billion yen
Facility care
＋4.4Billion yen
Care education ＋0.5Billion yen

273,583

FY16.3

MedicalSupportLong-term
care

Health care

LanguageYear on year Increase in salesof ＋21,117 million yen

Child
care

China

Other

Elimination

FY17.3© 2016 Nichii Gakkan Company. All rights reserved.

12

FY2017.3 Earnings Forecast Major Changes in Operating Income＋333（Unit：million yen）
＋383

+133

+26

4,800

＋2,077＋1,991＋232

Year on year Increase inprofit of +5,585million yen
＋409

▲785
FY16.3

MedicalSupportLong-term
care

Health care

Language

Child
care

China

Other

Elimination

FY17.3© 2016 Nichii Gakkan Company. All rights reserved.

13

Profit return system
Dividends per share
The middle

The term end

Amount

FY2013.3

9.0yen9.0yen18.0yen

FY2014.3

10.0yen

10.0yen

20.0yen

FY2015.3

10.0yen

10.0yen

20.0yen

FY2016.3

11.0yen

11.0yen

22.0yen

FY2017.3

11.0yen

11.0yen

22.0yen© 2016 Nichii Gakkan Company. All rights reserved.

14

Management Strategy© 2016 Nichii Gakkan Company. All rights reserved.

15

1．Nichii’s Management Strategy
SBI Management Strategy:（Structure Balance Improvement)“Business Structure Balance Improvement Five-Year Plan”（2012-2016）
SocialContribution
MedicalSupportUtilization ofhuman
resourcesCore
businesses（Social）
Language education
business
Healthcare business

Return of profits

Management
Philosophy
Strategic
businesses

Globalization
businesses（Economic)（Marketable)

Long-term
Care

Child Care

Creation of employment and utilization ofhuman resources in regional communities

China
Australia, Canada
Singapore, Philippines

Expansion in size
© 2016 Nichii Gakkan Company. All rights reserved.

16

Nichii’s Course and Future Growth Projection
Fiscal Year ending March 31, 2017 is year
for turning toward long-term stable growthFirst Growth Phase

Strategic
Investment Phase

Second Growth Phase

Third Growth
Phase

Operating margin

14%

Operating margin

7%

Operating margin

0%

Investment
recoveryFuture-oriented
strategic investment
´90

´95

´00

´05

´10

´15

´16

´20

© 2016 Nichii Gakkan Company. All rights reserved.

17

Results of Strategic Investment
Investment
RecoveryPhase

Establishment of integrated language
education structureMarket entry andnationwide rollout●Made GABA a subsidiary● The launch of COCO juku schools
Languageeducation●The launch of COCO juku Junior school● Made SELC(Australia)
a subsidiary ● NYU-SCPS-ALI Tokyo Open● Made SELC(Canada) a subsidiary
2012

2013

2014

Marketing activities● Established SELC Manila
2015

2016

Establishment of businessstructure and service base････ 2021
Investment
Recovery
Phase●NICHII CARENET CHINA Co., Ltd. established● Nichii China Co., Ltd. ● Strategic partnership with the China Planning
China
Buisiness

established

Institute on Aging, which is directly run
by the Chinese government●Reorganization of a local businesses into a group company●Nichii (Guangzhou) Co., Ltd. established●Nichii Hong Kong Limited established
Zhongfu Nichii Healthservices Co., Ltd. established ●© 2016 Nichii Gakkan Company. All rights reserved. 18

2．Nichii’s Strategic Businesses (1) Language Education BusinessMeasures to improve COCO Juku profitability
Expand share by differentiation achieved through introduction of COCO Progress Program andfull-scale community-based expansion
Hard
Soft

FurtherStrengthening
MeasuresFull-scale communitybased expansion（Expand regionswith H.I. classrooms)

Expansion andimprovement of
online services

Differentiation throughmutual complementation

School base
Current
Strengths

・Education branches
51 branches
・COCO Juku
80 schools
・COCO Juku Jr.
85 schools
・COCO Juku Jr. HI classrooms
420 classrooms

Improvementin salesExpansionin shareQuality of services
・Ranked No. 1
for customer satisfaction

・Continuation rate 63％（Fiscal year ended Mar 31, 2016)

Improvementin profits

・Satisfaction guarantee*COCO：Communication Coｍpetence*HI：Home Instructor© 2016 Nichii Gakkan Company. All rights reserved.

19

Flow of Expansion in Volume and Improvement in Average SpendDevelopment of new channels using online services as entrance
Previous flow

Advertising

Information
requestFree taster
lessonSchoolattendance

Setattendance
Onlineattendance

Online free taster lesson

Advertising

Online flow

【Trends in COCO Juku Attending Students 】

Early stage
Seed stage

Apr. 2016

Plan
Targets

Jun.

Sep.

Dec.

Mar. 2017

Fiscal year ending
Mar. 31, 2017 (Est.)

・Achievement of monthly profitability: Sep. 2017

・Achievement of full-year profitability: Fiscal year ending Mar. 31., 2018
・Completion of investment recovery: FY2021© 2016 Nichii Gakkan Company. All rights reserved.

20

COCOJuku Multiple network●Vancouver●●●●COCOJuku●ManilaSingapore●New York●●Sydney

80 Schools

COCOJuku Jr.

85 Schools

H.I Classroom

420 Classroom●Gaba

42 Schools●NYU

Tokyo Center●SELC Australia

Sydney●SELC Canada

Vancouver：1 School●SELC Manila

Manila：2 Schools：1 School© 2016 Nichii Gakkan Company. All rights reserved.

21

Nichii’s Strategic Businesses (2) Health Care Business
Strengthen profitability by promoting business centered on Nichii Life
・Shortage of human resources
Health Care Business(doubling up by long-term care human resources）
Problem Recognition

・Increased dependence on Long-term Care Business (Dependence 90%)

Priority Measures

Market size and future projection forhousekeeping services

Housekeeping services (Nichii Life)

600

・Optimize interrelation between housekeeping services
and long-term care business（management, human resources, customers, services).

billion yen

6.1times

Strengthen sales of PB products
・Develop sales channels such as medical institutions.
（Strengthen cooperation with Medical Support business)

81.1

billion yen

98.0

billion yen

Helper dispatch
・Secure human resources and demonstrate brand power.

Future projection(Source) Cited from METI data
© 2016 Nichii Gakkan Company. All rights reserved.

22

Nichii’s Strategic Businesses: Nichii Life
Keywords for expansion of housekeeping services
１.

Secure humanresources.

2. Raise quality.
3.

Strengthen
corporate sales.

Establish new routes foracquiring human resources.

Concentrate qualified employees

Develop new customer groups.

Stabilize profit base.

Strengthen company special
benefit services.

Introduce customers tohome-visit care

【Illustration of Housekeeping (Nichii Life) Sales Growth 】

Net sale
867
million yen

YoY 32.8％
1,151
million yen

on insurance operations■New customer groups ■Existing customer groups

Maximization ofsynergy
Nichii Life

Home-visit
careTarget for fiscal year
ending March 31, 2021

CAGR
Component
ratio of new
customergroups18％35％© 2016 Nichii Gakkan Company. All rights reserved.
823

Nichii’s Strategic Businesses (3) China Business
Display color

Progress of Expansion in China
・Areas in which Nichii has approval to operate: 4 cities ＋17 provinces
under direct control ＋1 autonomous region
・Cities in which Nichii already operates: 10 areas, 14 cities, 19 business bases

Harbin●・Cities in which Nichii plans to start operating this fiscal year:
10 areas, 21 cities, 57 business bases
・FY2016: 20 areas, 35 cities, 76 business bases●Changchun

Tangshan● Shenyang● DalianBeijing● ●●Tianjin●Wuhan/Jingzhou
Huangshi/ Ezhou●●●●

Qingdao/Weihai
Yantai/ Weifang

Changzhou/Suzhou
Zhengzhou Jinan●Xuzhou Nanjing/ Wuxi
●
Xi’an
●
Nantong/ Yangzhou
・Hefei ●● ●●●●● ● Shanghai●
Hangzhou●●● ●Chengdu● ●●Ningbo●●Shaoxing●●
FuzhouHuzhouChangsha Nanchang●
Chongqing●

Kunming●●Nanning
Qinzhou

北京三傑聖一Beijing/Tianijin/Tangshan/Nanchang
Chongqing/Chengdu/Kunming

瀋陽助尓

Shenyang/Changchun

済南仁徳

Jinan/Qingdao/Weihai/Yantai/Weifang

大連九鼎互聯Dalian/Harbin

常州金蓓蕾Changzhou/Suzhou/Nanjing/Wuxi
Nantong/Yangzhou/Xuzhou

杭州天使

Hangzhou/Ningbo/Shaoxing/Huzhou

武漢尓邦

Wuhan/Jingzhou/Huangshi/Ezhou

安徽賽菲

Hefe

西安海鑫

Xi'an

深圳市中家

Shenzhen/Huizhou/Meizhou

広州市正祥和Guangzhou●

広西康之橋
Nanning/Qinzhou/Liuzhou/Guilin
XiamenShenzhen
日医広州●
Zuhai/Foshan/Zhongshan
Huizhou
Meizhou
Shanghai/Xiamen/Fuzhou
Zhuhai Guangzhou
中福日医Zhengzhou/Changsha
Foshan*The areas with names of cities are the cities for which Nichii already has approval to operate.
Zhongshan

Liuzhou●
Guilin ●●●●Name of city

Name of company●●●© 2016 Nichii Gakkan Company. All rights reserved.

24

Start of China Business
Finished creating basic model for business promotion environmentand started long-term care services.
Now it is time for full-scale operation of the Nichii Model operation system.
Promote business and strengthen management framework
Create businesspromotion environment
2016.62016.1

Step uplocalization

Establish operation system
2016.12【 Nichii Operation System 】
Management development：
N1-N2 management development
Staff

cultivation

・Long-term care・Post-natal care・Housekeeping
・Child care

Provision of high-quality
services・Acquire appointment customers
・Prepare service plan・Conclude contracts
・Start services

Matching

Customization

Standardization

Cultivation of humanresources*April 25, 2016: Start of long-term care services© 2016 Nichii Gakkan Company. All rights reserved.

25

Localization Step-up Strategy (Branch Establishment Five-Year Plan)
2016

2017

2018

2019

2020

2016

2017

2018

2019

2020

Installed Plans to establish Amount

Plans to establish

Plans to establish

Plans to establish

Plans to establish

Installed Plans to establish Amount

Plans to establish

Plans to establish

Plans to establish

Plans to establish

50

3

9

12

44

75

108

140

7

7

19

31

42

Beijin

2

4

6

13

22

30

40

Changzhou

2

2

4

6

6

6

Tianjin

1

0

1

9

16

23

30

Nanjing

2

2

5

8

10

12

Tangshan

1

1

3

5

8

10

Suzhou

2

2

4

6

9

12

Nanchang

1

1

5

8

12

15

Wuxi

1

1

3

5

7

8

Chengdu

1

1

6

11

15

20

Nantong

2

4

5

6

Chongqing

1

1

5

8

12

15

Yangzhou

1

2

3

3

Kunming

1

1

3

5

8

10

1

5

6

10

14

17

20

Hangzhou

1

4

5

7

9

11

13

Ningbo

1

1

3

5

6

7

1

4

5

10

15

20

25

Wuhan

1

2

3

3

3

3

3

Jingzhou

2

2

6

6

6

6

1

6

6

6

5

5

北京三傑聖一人力資源有限公司

瀋陽助尓家政服務有限公司
Shengyang
Changchun
済南仁徳家庭服務有限公司
Jinan
Qinhdao
Weihai
Yantai
Weifang
大連九鼎互聯科技発展有限公司
Dalian

5
1

5

6

12

19

23

34

1

4

5

11

17

20

29

1

1

1

2

3

5

Harbin

2016

2017

2018

2019

2020

Installed Plans to establish Amount

Plans to establish

Plans to establish

Plans to establish

Plans to establish

深圳市中家Group

4

3

7

12

17

22

25

Shenzhen

3

2

5

10

15

20

23

Huizhou

1

0

1

1

1

1

1

1

1

1

1

1

1

2

0

2

8

13

18

23

2

0

2

8

13

18

23

2

3

5

10

15

20

25

Nanning

1

1

2

4

6

8

10

Qinzhou

1

0

1

2

3

4

5

Liuzhou

1

1

2

3

4

5

Guilin

1

1

2

3

4

5

6

6

21

36

51

66

Zhuhai

3

3

8

13

18

23

Foshan

3

3

8

13

18

23

5

10

15

20

Meizhou
広州市正祥和家政服務有限公司
Guangzhou
広西康之橋護理服務有限公司

日医（広州）商貿有限公司

Zhongshan0

常州金蓓蕾健康諮詢服務有限公司

0

Xuzhou杭州天使家政服務有限公司

2

3

1

4

5

10

15

20

25

1

3

4

8

10

10

15

1

1

2

5

10

10

1

4

5

10

15

20

25

1

2

3

9

13

14

15

2

2

1

2

3

4

Huangshi

2

2

Ezhou

1

4

武漢尓邦家政有限公司

安徽賽菲家庭服務管理有限公司
Hefei
西安海鑫家政清潔工程有限公司

2

3

5

10

15

20

25

2

3

5

10

15

20

25

0

2

2

5

10

15

20

2

2

5

10

15

20

Xi'an

中福日医（上海）健康服務有限公司

2016

2017

2018

2019

2020

Installed Plans to establish Amount

Plans to establish

Plans to establish

Plans to establish

Plans to establish

1

2

3

5

5

5

5

1

0

1

1

1

1

1

Xiamen

1

1

1

1

1

1

Fuzhou

1

1

1

1

1

1

Zhengzhou

1

1

1

1

Chongqing

1

1

1

1

ShanghaiAmount

2016

2017

2018

2019

2020

Installed Plans to establish Amount

Plans to establish

Plans to establish

Plans to establish

Plans to establish

186

295

401

508

19

57

76

© 2016 Nichii Gakkan Company. All rights reserved.

26

3．For the establishment of strong corporate foundations
Keywords for the achievement of long-term stable growth1

Improve businessprofit structure

Reduce risks from changes in the environment(systems) by improving business structure balance.

2

Increase businessgrowth potential

Expand scale of business by promoting globalization
strategy.

3

Maintain high quality
care services

Secure human resources inside and outside of Japanand establish schemes for cultivating human resources.

4

Create robust
corporate structure

Seek to share vision with employees and strengthenbusiness frontline, and decisively implement reform of
the management execution structure and otherinternal reform.
© 2016 Nichii Gakkan Company. All rights reserved.

27

Establishment of Base for Nichii’s Core Businesses (i)(Secure human resources and share future aspirations)
Establish and expand service provision structure for core businesses
Strengthen schemes forcultivating and acquiring
human resources

Strengthen frontline environment

・Promote employment support
including employment advice
and workplace visits

Enhancement of
personnel programs

・Strengthen staff follow-up
・Develop management

Share visionof futureaspirations

・Promote work-life balance
・Encourage employees to takelong-term care/child care leave

Career support

・Educate global human resources.
・Educate human resources by area

© 2016 Nichii Gakkan Company. All rights reserved.

28

Establishment of Base for Nichii’s Core Businesses (ii)(Promote business cooperation and create employment)
Nichii’s contribution in regional communities through comprehensive care
Maximize sales and profits through cooperation
between businesses

Promote establishment of regional networks

MedicalSupportMaximize health care and long-term care in each
community through coordination at regional
conferences, etc.

・Expand establishment of childcare centers in hospitals
・Increase synergy between businesses through linkage
with COCO Juku Junior ad Nichii Life

SocialContribution

Long-term
Care

Child care
Promote cooperation to secure human resourcesand enhance the workplace environment

Provide care services according to area needs
・Promote cooperation between health care and long-term careby actively expanding small-scale multi-function home care・Promote consignment of local authorities dementia services

・Support social advancement for women who are raisingchildren・Promote child care centers, housekeeping support,

long-term care advice, etc. for employees© 2016 Nichii Gakkan Company. All rights reserved.

29

Strengthening of Management Execution Environment
Introduction of
executive officer
systemSpeedy Management

Speed up management decision-making

Strategy execution

Strengthen business activity
execution functions

Plan attainment

Clarify responsibility for execution

New governanceenvironment
Decision-making
Board of Directors
・Inside Directors (8)・Outside Directors (2)Differentiation
andimprovementof functions

Execution of operation
Board of Executive Officers
・Managing Executives (6)・Executive Officers (15 ~ 20)（*Directors and Managing Executive Officers to be elected June 28, 2016.)

Speed up management execution by improving middle-management
and execute region-based strategies
Enhance executive
officer system
Elect 6 Managing Executive Officers
Elect 15 ~ 20 Executive Officers
Assign Executive Officer to eachbranchExpand to 5-branch structure

Strengthen branch-basestructure

Establish Kyushu Branch in Kyushu areain addition to branches in East Japan,
Tokyo, Central Japan ad West Japan（From 4 branches to 5 branches）

・Strengthen strategy to secure
human resources
・Assign COCO Juku School Manager
to all classrooms© 2016 Nichii Gakkan Company. All rights reserved.

30

The base plans and other information contained in thisaccompanying document are forward-looking statements basedon the information currently held by the Nichii Gakkan Group.
For this reason, they may be affected by uncertain factors, suchas the economic environment, deregulation, and employment
conditions.
Please note that actual base plans and other information may
differ from those stated in this accompanying document.

Contact information
Nichii Gakkan Company
IR Division, Public Relations Department
Corporate Planning Headquarters
Address: 2-9 Kanda Surugadai, Chiyoda-ku, Tokyo
Tel: 03-3291-5637 (IR Division)
E-mail: nichii-ir@nichiigakkan.co.jp31