www.nichiigakkan.co.jp

NICHII GAKKAN COMPANY

Financial Results Briefing Document
for the Fiscal Year Ended March 31, 2013

May 16, 2013

Today’s Contents
1.Overview of Financial Results for
Fiscal Year Ended March 31, 2013
(1) Operating Results(2) Financial Results Highlights(3) Consolidated Net Sales and Operating
Income by Business(4) Major Factors for Changes in Net Sales(year on year)(5) Major Factors for Changes in Operating
Income (year on year)(6) Segments Highlights(7) Education Business Highlights by Brand(8) Status of Child Care Business3.Medium-Term Management Strategy. . . P3
. . . P4
. . . P5
. . . P6
. . . P7
. . . P8-P11. . . P12
. . . P13

2.Status of Strategic Investment(1) Language Education Business: Status of. . . P15
Classroom Development(2) Overview of COCO Juku Junior. . . P16
(3) Language Education Business: Progress of . . . P17
Strategic Investment and Future Development(4) Education Business Strategy in the. . . P18
Medium Term Management Strategy(5) TOPICS: NYU-SCPS ALI Tokyo Center. . . P19
Copyright © 2013 Nichii Gakkan Company. All rights reserved.

(1) Medium-Term Management Strategy(2) New Business Segments from FY2014(3) Nichii’s Service Initiatives in Its Growth
Strategy. . . P21
. . . P22
. . . P23

4.Earnings Forecasts for Fiscal YearEnding March 31, 2014
(1) Earnings Forecasts(2) Earnings Forecasts Highlights(3) Earnings Forecasts by Business(4) Major Factors for Changes in Net Sales(year on year)(5) Major Factors for Changes in Operating
Income (year on year)(6) Distribution of Profits. . . P25
. . . P26
. . . P27
. . . P28
. . . P29
. . . P30

FY2013 Results Briefing

1Overview
Overview ofof Financial
Financial Results
Resultsforfor Fiscal
Fiscal Year
Year Ended
Ended March
March 31,
31, 2013
2013

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

FY2013 Results Briefing

2Operating Results for Fiscal Year Ended March 31, 2013
(Unit: million y en)

FY2013

FY2012
AmountAmountYear on year

Net Sales

257,340

267,191

3.8%

Gross Profit

53,82657,753

7.3%

20.9%

21.6%

-

11,672

8,741(25.1%)

4.5%

3.3%

-

12,6748,326(34.3%)

4.9%

3.1%

-

5,897

4,383

(25.7%)

2.3%

1.6%

-

16,90014,384(14.9%)

6.6%

5.4%

-

%

Operating Income%

Ordinary Income%

Net Income%

EBITDA%

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

FY2013 Results Briefing

3

Financial Results Highlights for Fiscal Year Ended March 31, 2013
The 5th consecutive year of revenue growth with record-breaking net sales of ¥267,191 million(up 3.8% from the previous fiscal year)
Education Business achieved net sales of more than ¥20 billion (up 40.6% year on year).
- A full-year contribution from operating results of GABA
- Anticipating the change in the health care workers qualification system, annual enrolment for Home
Helper training courses increased significantly.

Health Care Business saw an increase in the number of care service users.
- The 6th consecutive year of revenue growth, absorbing the impact of the revision of compensation for longterm care

Improved earnings power of principal businesses, achieving gross profit of ¥57,753 million(up 7.3% year on year)
Health Care Business posted record profit, attributable to the improvement in facility efficiency.
- Operating income: ¥11,183 million (up 10.3% year on year)- Nichii Care Palace achieved stable profitability.

Implementation of strategic investment for long-term stable growth
Language Education Business: 73 classrooms for COCO Juku in 44 prefectures
Child Care Business: 3 directly managed child care centers
Copyright © 2013 Nichii Gakkan Company. All rights reserved.

FY2013 Results Briefing

4Consolidated Net Sales and Operating Income by Businessfor Fiscal Year Ended March 31, 2013

(Unit: million yen)

Net Sales
FY2012

Operating Income

FY2013

Year on year

FY2012

Year on year

FY2013%%

104,1100.8%

Health Care

103,301
138,493

141,289

Education

15,451OthersElimination/
Corporate
Total

Medical Support

8,301(2.9%)

2.0%

8,547
10,142

11,183

10.3%

21,72740.6%

715(3,338)

-

1,427

1,684

18.0%

(334)

128

-

(1,333)(1,620)-(7,397)(7,534)-257,340

267,191

3.8%

11,672

8,741(25.1%)

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

FY2013 Results Briefing5

Major Factors for Changes in Net Sales (year on year)
for Fiscal Year Ended March 31, 2013
Increase
Decrease(Unit: million yen)
270,000

Child Care Business (reposting)
In-hospital child care centers (Medical Support) +28
In- office child care centers, etc. (Health Care) +243

265,000

Child Care Business Total+6,275+257+270

267,191-286+2,795260,000

257,340+809

255,000

250,000

An increase in revenue of ¥9,851 million
FY2012

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

MedicalSupport

Health Care

Education

Other

Elimination/
Corporate

FY2013

FY2013 Results Briefing

6

Major Factors for Changes in Operating Income (year on year)
for Fiscal Year Ended March 31, 2013Child Care Business (reposting)

Increase

In-hospital child care centers (Medical Support) +50

Decrease

In- office child care centers, etc. (Health Care) -153

(Unit: million yen)Child Care Business Total[COCO Juku advertising expenses distribution (full year)]-104

Advertisingexpenses

13,000+1,041¥4,169 million

Medical Support¥964 million

Health Care

¥1,120 million

Education¥2,084 million

11,672
11,500-245
10,000

8,741

+463
8,500

-136

-4,053

A decrease in profit of ¥2,930 million
7,000

FY2012

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

MedicalSupport

Health Care

Education

Other

Elimination/
Corporate

FY2013

FY2013 Results Briefing

7Segment Highlights for Fiscal Year Ended March 31, 2013 (Medical Support)
Consolidated net sales and operating income(year-on-year change)
Net sales:¥104,110 million (+0.8%)
Operating income: ¥8,301 million (-2.9%)
104,110
103,301(+0.8%)

8,547

8,301
(-2.9%)

Revenue continued to increase, reflecting a solid
performance in the hospital business.
f Won new contracts with hospitals and expanded thescope of work.
f Improved operational efficiency by enhancing staff
skills.
f Expanded management support services.
- Obtained a patent for the DPC Revolution system.
- Formed an alliance with Microsoft Corporation.

Net Sales

Operating Income

Net sales related to hospitals and number ofcontracts (year-on–year change)f Preparation for developing a clinic in Singapore- In October 2012, a subsidiary was established in
preparation for developing the clinic in Singapore.

91,79590,505(+1.4%)

1,990

1,983

[Outline of the subsidiary](-0.4%)

Name: NICHII INTERNATIONAL CLINIC PTE. LTD．
Capital: SGD1 million (approx. ¥76 million)
Description of business: Management of a clinic in Singapore

Net Sales

Number of contracts(as of the end of March)

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

Date of inauguration: Late July 2013 (schedule)
FY2013 Results Briefing8(TOPICS) Management of a Clinic in Singapore
Ensure continuous business expansion through new overseas development
Management of a clinic in Singapore
NICHII INTERNATIONAL CLINIC- Medical treatment: General medical treatment, health checkup, detailed examination, etc.
- Medical treatment in four languages (English, Japanese, Chinese and Indonesian)Establish a secure medical treatment system for both Japanese and non-Japanese throughaffiliation with local firms and medical specialists.
Waiting room * before renovation

Synergies across the Group’s businesses
Medical Support Business
Improve the quality ofbusiness support services

Language Education BusinessRealize the development of
global health care providers- Utilize our know-how in the management of medical
practice and international medical exchange- Dispatch students of our courses with health carerelated qualifications to the clinic as trainees- Develop and offer new services to medical institutions
which promote medical exchange- Develop and offer services related to medical
English, etc.

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

FY2013 Results Briefing

9Segments Highlights for Fiscal Year Ended March 31, 2013 (Health Care)
Consolidated net sales and operating income(year-on-year change)
Net sales:¥141,289 million (+2.0%)
Operating income: ¥11,183 million (+10.3%)

Increases in both revenue and profits, reflecting
a rise in the number of care service users
f Aggressive development of facilities

141,289
138,493

End of March 2012(+2.0%)

11,183(+10.3%)

10,142

Net sales

Operating income

Net sales by business (year-on-year change)
128,823
127,340(+1.2%)

737
1,062
135
326
23
241
42
50

f Aggressively developed home nursing facilities: Managed 59
facilities as a result of an increase of 36 facilities.
f Services not covered by the long-term insurance system
performed well (an increase in sales of 11.8%).

12,465(+11.8%)

11,153Service coveredby the long-term
insurance system

Care plan
Home visit
Welfare goods leasing
Day careHome nursing care
HohoemiKirameki
Nichii Home

End of March 2013(actual results)
774 (+37)
1,101 (+39)
137 (+2)
353 (+27)
59 (+36)247 (+6)
52 (+9)52 (+2)Service not coveredby the long-term
insurance system

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

Developed and offered private brand products and promoted sales ofgeneral housekeeping services, etc.

f Establishment of a cooperative business relationship withSECOM CO., LTD.
Prepared for developing SECOM My Doctor Plus, an emergency response
service for elderly patients.
FY2013 Results Briefing

10Segments Highlights for Fiscal Year Ended March 31, 2013 (Education)
Consolidated net sales and operating income(year-on-year change)
Net sales:¥21,727 million (+40.6%)
Operating income: -¥3,338 million (¥715 million)

Strong revenue growth, attributable to a full-year
contribution from the operating results of GABA and anincrease in the number of students for helper training
Continued long-term strategic investments

21,727(+40.6%)f Strategic investments to build a nationwide Language
Education Business base

15,451- 73 COCO Juku in 44 prefectures (as of end of March)715- Preparation for the development of a new brandcalled COCO Juku Junior

Net sales-3,338(-)

Operating income

Net sales by business (year-on-year change)
11,611
10,116

10,911(+6.4%)(+122.8%)

4,540
Language education
Copyright © 2013 Nichii Gakkan Company. All rights reserved.

- Aggressive promotion activities
f In anticipation of a revision of qualifications for healthcare workers, the number of students for Home
Helper Level 2 accreditation increased.
- Cumulative total number of students ofHome Helper Level 2 courses
FY2012FY2013Growth rate

59,748 persons

89,475 persons

49.8%

Existing
FY2013 Results Briefing

11Education Business Highlights by Brand for Fiscal Year Ended March 31, 2013
Net sales

Nichii(existingbrands)

COCO
Juku

Medical education
Social education¥4,206 million (down 15.1% year on year)¥7,404 million (up 24.3% year on year)

Operating income¥322 million (-¥242 million in the previous year)

Net sales¥228 million

Operating income -¥5,047 million

Net sales

GABA¥11,611 million (up 6.4% year on year)¥9,421 million (up 107.5% year on year)

Operating income ¥1,140 million (up 89.0% year on year)* Operating income figures indicate post-goodwill figures.
* The operating results of GABA started to be incorporated in the consolidated financial
results in the third quarter of the fiscal year ended March 31, 2012.

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

FY2013 Results Briefing

12Status of Child Care Business
Consolidated net sales and operating income(year-on-year change)
Net sales:¥1,054 million (+34.4%)

Expanding the size and scope of operations
through proactive developmentf Active expansion of in-hospital, in-office, anddirectly managed child care centers

1,054

Actual results at end of March 2013(+34.4%)- In-hospital child care centers: 26 locations (an increase of one
location from the previous fiscal year)784- In-office child care centers: 39 locations (an increase of 13
locations from the previous fiscal year)- Directly managed child care centers: 7 locations (an increaseof 3 locations from the previous fiscal year)

Net salesf Offered English conversation lessons throughcooperation with COCO Juku.
Net sales by business (year-on-year change)
851(+39.8%)

203
175

608

(+15.7%)In-hospital child care

In-office child care

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

FY2013 Results Briefing

13

Status
Status ofof Strategic
Strategic Investment
Investment

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

FY2013 Results Briefing

14

Language Education Business: Status of Classroom Development
COCO Juku: 73 schools (as of March 31, 2013)[Hokkaido]

GABA: 38 schools[Aichi]Shizuoka,Hamamatsu

Nagoya, Sakae

ToyamaHokkaido[Aomori][Niigata]
Niigata,
Nagaoka[Nagano][Ishikawa]
Ishikawa

Okayama

Nagano,Matsumoto[Hiroshima][Gifu]

Hiroshima

3[Yamaguchi]

Gifu

Tokuyama

Fukui[Okayama]

13[Shizuoka][Toyama]

2

[Mie]

Chubu

6

[Kumamoto]

Naha

Yokohama,
Kawasaki, Fujisawa,
Hiratsuka, Kamiooka[Tottori]Nara

Tottori[Saitama][Shimane]

Kawagoe, Minami
Koshigaya, Omiya[Kyoto]Takamatsu

Kyoto

Matsue[Tokushima][Shiga]6

4[Kanagawa][Nara][Kagawa]

Tokushima

Kyushu[Tokyo][Tokyo]Ochanomizu, Yaesu,
Yurakucho, Kinshicho,
Akasaka, Ikebukuro
Higashiguchi,
Shinjuku, NishiShinjuku, Shibuya,
Aoyama, Osaki,
Kichijoji, Hachioji,
Tachikawa

Umeda, Kyobashi, Sakai Higashi[Okinawa]

5

Tohoku[Oita]

Kagoshima

Sendai

Yamagata

Osaka[Kagoshima]

Akita

Sakae, Nagoya

FukuokaSaga[Miyagi][Yamagata][Fukuoka][Saga]

Morioka Malios[Akita]Yokkaichi[Fukui]

Kumamoto[Iwate]Aomori[Aichi]

ChugokuOita

1

JR Tower Sapporo

10[Chiba]Chiba, Kashiwa,
Matsudo,Funabashi[Gunma]Takasaki[Tochigi]〜〜[Kanagawa]Aobadai, Kawasaki,
Fujisawa-Shonan,
Yokohama[Saitama][Ibaraki][Osaka]Tsukuba, Mito

[Kochi][Wakayama][Yamanashi]

Kochi

Wakayama

Umeda, Chayamachi,
Namba, Tennoji[Ehime][Hyogo][Kyoto][Hyogo]Matsuyama

Sannomiya

Kyoto

Kobe

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

30

Utsunomiya

Kusatsu

Shikoku

31

Akasaka-Tameike,
Akabane, Akihabara,
Ikebukuro, Ebisu,
Otemachi, Omotesando,
Kitasenju, Kichijoji, GinzaYurakucho, Shinagawa,Shibuya, Shimokitazawa,
Jiyugaoka, Shinjuku,
Shinbashi-Shiodome,
Seijo, Tachikawa, Tokyo,
Hachioji,
Futakotamagawa,
Machida, Meguro

Omiya[Chiba]Chiba, Kashiwa

Kofu

Kanto

Kinki
FY2013 Results Briefing

15

Overview of COCO Juku Junior
Overview
Target:From infants and elementary school
children to high-school students
Courses: Courses in accordance with different
levels and needs

Goals of COCO Juku Junior(International Course)
Achieving standard levels
three years earlier(1) Standard Course
A lesson a week

COCO Jr.
pre.

(2) International Course

COCO
Jr. 3
STEP
3rd
grade

Can think and talk in
EnglishTwo lessons a week; aiming to achieve standard
levels three years earlier(3) Rapid Course

COCO
Jr. 1

COCO
Jr. 2

COCO
Jr. 4

COCO
Jr. 5

COCO
Jr. 6

COCO
Jr. 7

COCO
Jr. 10COCO
Jr. 9
Can enter
COCO
Jr. 8 Can go to top-level
university universities
overseas overseas

STEP
2nd
grade

Can transmit
information actively

TOEFL
iBT
score:
80

TOEFL
iBT
score:100

STEP
Pre-1st
grade

STEP
1st
grade

Can clearly discuss and theorize

Homestay, overseas life experience programs
Infants

Elementary school
childrenJunior high-school
students

High-school
students

One-on-one intensive course

Course fee: ¥20,000 to ¥24,000 (monthly)* International Course

Developing schools efficiently, using Nichii’s
management resources
Existing
schools

Instructors: Japanese* A native speaker gives a lesson a month.

Maximum number of students in a class: 6

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

COCO
Juku

Adult daycare centersFCNew
schools

FY2013 Results Briefing

16

Language Education Business:
Progress of Strategic Investment and Future Development
Aiming to create new value in tandem with Nichii’s global development by
expanding the service lineup and building a global network
Progress ofstrategic
investment✔ Entering the language
education market

Building anationwide baseDeveloped language
education at childcare centers

Collaboration
with newbusinesses

Studying abroadat college or inshort-termcourses✔

Started international medical
exchange support service

Made SELC a subsidiary

Established YORK Global
Study Center

Establishing integrated
language education
programs for studying abroad

Commencement of a
Singapore clinic business

Building a global base

Collaboration in tandem with
Nichii’s global development

Business development incollaboration with NYU-SCPS
Expansion of the global
network

Made GABA a subsidiary

Developed a nationwide
network of COCO Juku
schools

Efficient development of
COCO Juku Junior schools

Domesticschools

Further community-based
development

FY2012
Copyright © 2013 Nichii Gakkan Company. All rights reserved.

FY2013

FY2014FY2015 and later
FY2013 Results Briefing

17

Education Business Strategy in the Medium-Term Management Strategy

Nichii’s global education business for all generations
Synergies- Courses for seniorcitizens- SELC
Vancouver

COCO Juku- Childcare business
GABA COCO Juku Junior- International medical
exchange- NYU-SCPS- YORK Global Study Center- Singapore clinic
business- SELC Sydney- Kennel business

Expansion of the existing
business fields

Comprehensive language
education business

The education business is the core of the Nichii Group’s strategy for expanding earnings.
Copyright © 2013 Nichii Gakkan Company. All rights reserved.

FY2013 Results Briefing

18

TOPICS: NYU-SCPS ALI Tokyo Center
On March 7, 2013, Nichii entered into a collaboration agreement to open the American Language
Institute (ALI) Tokyo Center with the New York University School of Continuing and Professional
Studies (NYU-SCPS).
New York University School of Continuing and Professional Studies
American Language Institute (ALI) Tokyo Center- The center will offer a variety of programs for nurturing aninternational perspective and communication skills(A general English course, business English course, a college preparatory
course, and other courses)- At the center, the NYU-SCPS will provide more specialized
courses for professionals in different industries.

The center will open on the 22th floor of
Shinagawa Intercity Building A in October.

Synergy with Nichii’s language education business- Nichii will oversee operations except teaching and will recruit students, using its nationwide
operating base.
- Nichii will offer integrated education programs for students ranging from preschool children
to people who will go to college overseas, with COCO Juku, GABA, and COCO Juku Junior(new brand) schools collaborating with the ALI Tokyo Center.

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

FY2013 Results Briefing

19Medium-Term
Medium-Term Management
Management Strategy
Strategy

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

FY2013 Results Briefing

20Medium-Term Management Strategy

Medium-Term Management Strategy
A five-year plan from FY2013 through FY2017
Expanding business fields and strengthen operating base;
restructuring the business portfolio;
achieving stable earnings growth over the long term
Target management indicators

Double-digit year-on-year sales growth, an operating margin of
7% or more, an ROE of 15% or more

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

FY2013 Results Briefing

21New Business Segments from FY2014
To enhance services that are not covered by the long-term care insurance, Nichii will divide its
Health Care Business into a Long-Term Care Business and a Health Care Business (services
not covered by the long-term care insurance) at the beginning of FY2014.
Old segment
Health Care
Business

Classification

Major services

Covered by long-termcare insuranceHome-visit care, day care, home-visit nursing, pay nursing homes, group homes

Not covered by longterm care insurance(Welfare services for the disabled, childcare in workplaces), housekeeping services,
meal home delivery, sales of healthcare products, care staff dispatching service

Welfare services for the disabled and childcare in workplaces
will be included in the Long-Term Care Business.
New segment
Long-Term Care Business
Health Care Business

Major services
Home-visit care, day care, home-visit nursing, pay nursing homes, group homes,(welfare services for the disabled, childcare in workplaces)
Housekeeping services, meal home delivery, sales of healthcare products, care staff
dispatching service

Active development of Health Care Business (for global operations)
The Nichii Group participated in the 2nd China International Senior Service Expo,
one of China’s biggest international welfare exhibitions, held in May 2013. Nichii
displayed welfare equipment that it is selling in China and demonstrated its homenursing care techniques, expertise in human resource development, the concept ofsanitary care, and sanitary care products.
In collaboration with Riyi Fuli Qiju Maoyi (Shanghai) Co., Ltd., a Group company inChina, Nichii is gearing up to launch a long-term care business in Beijing (inOctober).
Copyright © 2013 Nichii Gakkan Company. All rights reserved.

2nd China International Senior Service Expo
FY2013 Results Briefing

22

Nichii’s Service Initiatives in Its Growth Strategy
Business Environment to consider in developing growth strategies
Developing and exchanging human resources
capable of working in the international arena

The declining birth rate and aging population, andwomen’s social advancement- Support for studying abroad (interest-free loans)- Drastic change in English education at school- Doubling the number of foreign visitors to Japan(aiming for 20 million people per year)- A new childcare support system to be implemented in2015- Plans for accelerating elimination of children waiting
to get in day-care facilities

Realizing and improving a healthy longevity society- Globalization of the medical and healthcare industries- Development and expansion of the healthcare
industry

Increasing mobility of employment- Expansion of subsidies for promoting labor mobility- Re-employment support Æ Promoting employment in
the medical and nursing-care fields

The government is discussing growth strategies in fields closely
associated with Nichii’s businesses.
Nichii aims to overcome institutional risks and provide high-value-added services.
Medical care

Nursing care

HealthcareChildcare

Support for international
medical exchangeManagement assistanceusing IT

Aggressively expandingbases for operations
Bolstering welfare services
for the disabled
Enhancing humanresources

Promoting healthcare
products, housekeeping
services, and foodservices

Developing small daycare centers andcertified quasi-day-care
centers

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

Languageeducation
Developing communitybased schools
Building a network ofsupport for studying
abroadFY2013 Results Briefing

23

Earnings
Earnings Forecasts
Forecasts forfor Fiscal
Fiscal YearYear
EndingEnding March
March 31,
31, 2014
2014

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

FY2013 Results Briefing

24

FY2014 Earnings Forecasts(Unit: million y en)

FY2013

FY2014

ResultNet sales
Operating income%

Ordinary income%

Net income%

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

Forecast

Year on year

267,191

277,600

3.9%

8,741

9,000

3.0%

3.3%

3.2%

-

8,326

8,000

(3.9%)

3.1%

2.9%

-

4,383

4,500

2.7%

1.6%

1.6%

-

FY2013 Results Briefing25

FY2014 Earnings Forecasts Highlights

Record sales

Net sales: ¥277,600 million (up 3.9% year on year)- An increase in sales in the six consecutive year

Income to start to rise

Operating income: ¥9,000 million (up 3.0% year on year)- Both sales and income to rise in the language education business- Both sales and income to increase in the Medical Support Business and Long-Term Care
Business, the core businesses- Both sales and income to climb at certain subsidiaries (Nichii Care Palace, GABA)

Annual dividend forecast: 20.0 yen (payout ratio: 31.1%)- An increase for the fifth consecutive year

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

FY2013 Results Briefing

26

FY2014 Earnings Forecasts by Business(Unit: million yen)

Net sales
FY2013ResultOperating income

FY2014
Forecast

FY2013Result

FY2014
Forecast

Long-term Care

104,110
128,823

104,900
143,500

8,301
9,977

8,500
11,300

Health Care

12,465

5,500

1,206

200

141,289
21,7271,684

149,000
23,3001,600

11,183(3,338)128

11,500(3,300)100(1,620)(1,200)(7,534)(7,800)267,191

277,600

8,741

9,000

Medical Support

Long-term Care +Health Care
Education
Other
Eliminations/
Corporate
Total

Health Care Business: From FY2014, services covered by long-term care insurance is the Long-Term Care Business, and services not covered by long-term care insurance is the Health Care
Business. Welfare services for the disabled and childcare in workplaces, which were classified as services not covered by long-term care insurance, are included in the Long-Term Care Business.

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

FY2013 Results Briefing27

Major Factors for Changes in Net Sales (year on year)
Child Care Business (reposting)(Unit: million yen)
280,000

Increase

In-hospital child care centers (Medical Support) +32
In-office child care centers(Long-Term Care + Health Care)
+363
Total

Decrease

+395

+420

+1,572+7,710277,600-84

275,000

270,000

267,191+789

265,000

An increase in revenue of ¥10,408 million

260,000

FY2013

MedicalSupport

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

Long-Term Care+
Health Care

Education

Other

Eliminations/
Corporate

FY2014FY2013 Results Briefing28

Major Factors for Changes in Operating Income (year on year)
Child Care Business (reposting)(Unit: million yen)
11,000

Increase

In-hospital child care centers (Medical Support) +3
In-office child care centers(Long-Term Care + Health Care)
+132
Total

Decrease+136

10,000

+316
9,000

8,741

+38

9,000

-28

+198

-265

8,000

An increase in profit of ¥258 million

7,000

FY2013

MedicalSupport

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

Long-Term Care+
Health Care

Education

Other

Eliminations/
Corporate

FY2014FY2013 Results Briefing

29

Distribution of Profits

Our basic policy is distributing stable and continuous returns.
In anticipation of long-term stable growth,
we plan to increase our dividend for the fifth consecutive year.
FY2014 forecast: 20.0 yen (10.0 yen interim dividend + 10.0 yen year-end dividend)
(Yen)
24

20.0

20

18.0
16.0

16
12

14.0
11.0

11.0

11.0

FY2007

FY2008FY200912.0

840
FY2010FY2011FY2012FY2013

FY2014(forecast)

The Company executed a 2-for-1 stock split on April 1, 2009, and the figures for the fiscal years before that are adjusted to reflect the effect of the stock split.

Copyright © 2013 Nichii Gakkan Company. All rights reserved.

FY2013 Results Briefing

30All performance targets and other forecasts, including numbers ofcontracts and users, and goals, contained in this document are
based on information currently available to the Nichii Gakkan
Group and will be affected by uncertain factors, including
economic circumstances, the relaxation of regulations, andemployment conditions. Please note that actual results, numbersof contracts and users, and other data may be different from theforecasts.

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.jp