www.nichiigakkan.co.jp

NICHIIGAKKAN CO., LTD.

Financial Results Briefing Document
for the 3Q of the Fiscal Year Ending March 31, 2019

February 8, 2019

Financial Results Highlights（Unit: million yen）

FY.2019

FY2018.3
3Q

Net Sales
Operating Income%Ordinary Income%

Profit attributable toowners of parent%

3Q

Difference

Change212,914215,723 +2,809

1.3%

5,963

7,336 +1,373

23.0%

2.8%

3,014

3.4%

+0.6pt

4,043 +1,029

1.4%

1.9%

+0.5pt1,704

2,107+403

0.8%

1.0%

＋0.2pt34.1%

23.7%© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 1

Financial Highlights①
Measures implemented by the Group successfully achieved record-high net sales.

.

・Total net sales215,723million yen（yoy＋1.3%）
・Quarterly net sales growth rate recovered to over 2%.
・ Core businesses (Medical Support/Long-Term Care/Childcare) led the growth of net sales.
・Results of the subsidiaries, GABA and Nichii Carepalace contributed to the growth.

Trend of quarterly net sales growth rate

8.0%

●Dissolution of local companies in China.
●Complete transaction to Long-term careprevention for the elderly in general.

6.0%
4.0%

Factors of decrease in growth rate

3.9％

2.8％

2.0%

1.0％

0.2％

0.6％

1.2％

2015.32016.32017.3

2.3％

0.0%
-2.0%
-4.0%

FY2013.3

2014.32018.32019.3© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 2

Financial Highlights②
Thanks to the recovered revenue of core businesses,
quarterly operating income recovered to over 3 billion yen since March FY2012.
Trend of quarterly net sales growth rate

（Unit：million yen）

4,000
3,500

7.00%

3,752

Operating Income （left axis）

operating profit margin（right axis）

5.８％

3,182

3,000

6.00%

5.00%

4.4％

2,500

4.00%

2,000
3.00%
1,500
2.00%
1,000
1.00%

500

0.00%

0-1.00%-500-1,000FY2012.3

2013.32014.32015.32016.32017.32018.32019.3-2.00%© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 3

Consolidated Net Sales by Segment（Unit: million yen）

Net Sales

FY2018.3 3Q

FY2019.3 3Q

Difference(yoy)

Medical Support

80,47080,733263

Long-term Care

113,315

114,167852

Child Care

6,332

8,739

2,407

Health Care

1,051

1,228

177

Education8,912

8,9142

Therapy307438131

Global

2,637

1,496

▲ 1,141

Others

1,083

1,051▲ 32

Elim ination▲ 1,197▲1,045152

Total

212,914215,7232,809© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 4

Consolidated Operating Income by Segment（Unit: million yen）

Operatingincome

FY2018.3 3Q

FY2019.3 3Q

Difference（yoy）

Medical Support

6,541

6,693

152

Long-term Care

11,212

12,474

1,262

Child Care▲ 783

▲ 229

554

Health Care

▲ 88▲ 707▲ 619

Education▲ 2,879▲ 2,761118

Therapy▲ 184▲ 276▲ 92Global▲ 1,229▲ 1,107

122

Others150

173

23▲ 6,774▲ 6,920▲1465,963

7,336

1,373

Elim ination

Total© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 5

Summary of Balance Sheet (Consolidated)（Unit: million yen）
End of March 2018

End of Dec 2018

Difference

End of Dec 2017

Current assets

65,24966,875

1,625

66,117

Fixed assets

124,990122,249 ▲2,741

122,964

190,239

189,124 ▲1,115

189,082

Current liabilities

60,45956,275 ▲4,183

60,215

Non-currentliabilities

92,124

95,771

3,647

90,784

Total liabilities152,583

152,047▲535

151,000

Total net assets

37,65637,076▲579

38,081

Total liabilities andnet assets

190,239

189,124 ▲1,115

189,082

Total assets© 2019 NICHIIGAKKAN CO., LTD. All rights reserved.

6

Summary of Cash Flows (Consolidated)(Unit：million yen）
FY2015.3

FY2016.3

FY2017.3

FY2018.3

FY2019.3

3Q

3Q

3Q

3Q

3Q

8,836

4,441

7,448

11,441

6,788▲ 5,851▲ 3,545▲ 1,958

▲ 166

▲ 398

2,984

896

5,490

11,275

6,390

Cash flows from Financial activities▲ 5,072

1,282▲ 6,928▲ 10,586▲ 5,438

Cash and cash equivalents at end of year

8,362

14,806

13,003

16,958

19,115

Cash flows from Operating activities

Cash flows from Investing activities

Free cash flow

© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 7

Segment Overview© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 8

Core Business (Medical Support)
Net sales increased for the first time in three fiscal years
due to the effects of sales system enhancement.
The number of students in the medical administration course is also on a recovery trend.
【 Quarterly Net Sales &Operating Income 】

Overview of Financial Results■ Net Sales ● Operating Income(Unit : million yen)

30,0005,000

26,885 26,787 26,798 26,802 26,794 26,877 27,062

NetSales

25,000: 80,733 million yen（yoy＋263million yen）
20,000Operating Income : 6,693million yen（yoy＋152million yen）

4,000

2,358

2,119

2,329

2,245

3,000

15,000・The clinic department posted a decrease in net sales (down 31 million
yen year on year), while net sales increased in the hospital department 10,000(up 247 million yen year on year) and medical education (up 47 million
yen year on year). Income also increased by 152 million yen year on year. 5,000
・The number of students in the medical administration course increased
15.5% year on year.

02,0002,201 2,321

2,019
1,000

2018.3
1Q

2Q

3Q

4Q

2019.31Q

02Q

3Q© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 9

Core Business（Long-Term Care）
Recovery trend maintained for patients eligible for Long-term care benefits
in the Home-visit care service.
High occupancy rate of care facilities also maintained,continuing the increase in both net sales and income.
Overview 業績の概況of Financial Results【 Quarterly Net Sales &Operating Income 】
50,000■ Net Sales ● Operating Income(Unit : million yen)

37,462 37,942 37,911 36,496 37,448 38,078 38,641: 114,167million yen
40,000（yoy＋852million yen）
4,370 4,455
Operating Income : 12,474million yen（yoy＋1,262million yen）30,000
3,598 3,649

NetSales・Net sales increased because an increase in Residential care services(up 2,307 million yen year on year) absorbed decreases in In-home care20,000
services (down 1,226 million yen year on year) and nursing care education(down 229 million yen year on year).
・Nursing care education posted a decrease in income (down 117 million10,000
yen year on year), but due to a rise in the percentage of patients inmoderate or severe condition and increased occupancy rate of thefacilities, income increased in In-home care services (up 679 million yen
0year on year) and Residential care services (up 700 million yen year onyear).

3,659

3,850

8,000

7,000
6,000

5,000
4,000

3,000

3,703

2,000

1,000
2018.31Q

2Q

3Q

4Q

2019.31Q

02Q

3Q© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 10

Core Business（Child Care）
Quarterly operating income entered the black due to successin community-based sales activities.
【 Quarterly Net Sales &Operating Income 】

Overview of Financial Results■ Net Sales ● Operating Income(Unit : million yen)

3,500

Net: 8,739million yen
3,000（yoy＋2,407million yen）
2,500
Operating Income : ▲229million yen（yoy＋554million yen） 2,000

3,033

Sales・Both net sales and income increased due to the acquisition of1,500corporate-user contracts for corporate-run childcare centers andimproved recognition in the municipalities and regions that led to the 1,000
increase in the utilization rate of childcare facilities.
・During this fiscal year, 48 new childcare facilities are to be established,500
resulting in a total of 250 facilities in operation across Japan (during 3Q,three facilities were opened).
0

3,306
2,865

400

2,568

2,410

200

2,107
1,815

(73)
219

248

(157)

(400)

(404)
2018.31Q

2Q

0(200)

(55)
(571)

600

3Q

4Q

2019.3
1Q

(600)
2Q

3Q

© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 11

BS Business（Health Care）
Growth of net sales continued by steadily increasing the number of users.
Further expansion of Sunny Maid Service has been promoted.
【 Quarterly Net Sales &Operating Income 】

Overview of Financial Results【業績概況】

NetSales■ Net Sales ● Operating Income500: 1,228million yen（yoy＋177million yen） 400
Operating Income : ▲707million yen（yoy▲619million yen） 300
・Net sales increased with an rise in the number of housekeeping
200
service users (number of Nichii Life users: up 8.3% year on year).
・Income decreased due to prior investment in the expansion of thearea where the Sunny Maid Service housekeeping support business is100
provided by foreign employees.
・Preparation is currently underway to provide the service in Aichi
Prefecture.
0(Unit : million yen)

74

332

449

342

377

347

381

398

0(194)

(100)

(38)
(124)

(135)

100

(115)

(200)

(398)

(300)

(400)

2018.3
1Q

(500)
2Q

3Q

4Q

2019.3
1Q

2Q

3Q© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 12

BS Business（Education）
Number of students at conventional Gaba steadily increased.
Promoted efficient business operation and concentration of management resources.
【 Quarterly Net Sales &Operating Income 】

Overview of Financial Results
NetSales■ Net Sales ● Operating Income
3,500: 8,914million yen（yoy＋2million yen） 3,000
Operating Income : ▲2,761million yen
2,500（yoy＋118million yen）

2,937

3,025

2,950

0

3,156

3,036
2,893

2,985(500)

(831)

(836)

2,000

・Last April, structural reform was implemented, focusing on
1,500
reorganization of the brand. (Adults were integrated into Gaba andchildren into COCO Juku Junior.)
・The number of students at conventional Gaba increased steadily, but1,000
the effects of the reorganization of the brand were not observed, and net
500
sales and income leveled off.
・Further structural reform was resolved based on the progress through
03Q.

(Unit : million yen)

(1,210)(1,030)(1,000)(720)(1,013)(1,500)(1,595)(2,000)2018.3
1Q

2Q

3Q

4Q

2019.3
1Q

2Q

3Q© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 13

Outline of the Structural Reform of Education Business
Trend of the number of properties
Existing GabaTotal

Outline of structural reform
・Closure of COCO Juku Jr. classes
・Partial closure of Gaba Learning Studios
・ Closure of 51 LS’ among former COCO
Juku classes
・To be implemented at the end of March2019
・Securing employment
・Influence currently under scrutiny

Former COCO Juku

Before structural reform of the business(End of March 2018)＊1

204 properties
44 properties

80 properties(Junior annexed)

Satellite
80 properties

2018 Structural reform of the business(End of September 2018)

217 properties＊2＊1 Franchised schools continued (354 classes as of the end of December 2018)＊2 Extended until the expiration of the classroom lease contract

44 properties

72 properties(Junior annexed)

Satellite
101 properties

2019 Structural reform of the business

65 properties
44 properties

All schools
changed toGaba
without
21 properties
Junior(Excluding COCO Juku Jr. franchised schools)© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 14

List of Gaba Schools after Implementation of the Reform
Hokkaido・Tohoku region
3properties

B l u e : Former COCO Juku（21properties）
Green ：Existing Gaba（44properties）【Hokkaido】JR Tower Sapporo LS【Miyagi】Sendai LS

Chubu region 7properties【Iwate】Morioka Malios LS【Nagano】 Nagano LS, Matsumoto LS【Ishikawa】 Kanazawa LS【Shizuoka】 Shizuoka LS

Chugoku・Shikoku region
3properties【Aichi】

Sakae LS, Nagoya LS【Gifu】

Gifu LS

Kanto region 42properties【Gunma】

Takasaki LS【Tochigi】 Utsunomiya LS【Ibaraki】

Mito LS, Tsukuba LS【Okayama】 Okayama LS【Saitama】 Omiya LS, Minami-Koshigaya LS, Kawagoe LS【Hiroshima】 Hiroshima LS【Chiba】

Ichikawa LS, Chiba LS, Kashiwa LS, Funabashi LS【Kagawa】【Tokyo】

Akasaka LS, Akabane LS, Akihabara LS, Ikebukuro LS,Ebisu LS, Otemachi LS, Omotesando LS, Kitasenju LS,
Kichijoji LS, Kinshicho LS, Ginza-Urakucho LS,
Shinagawa LS, Shibuya LS, Shimokitazawa LS,
Jiyugaoka LS, Shinjuku Nishiguchi LS, Shinjuku
Higashiguchi LS, Shinbashi-Shiodome LS, Seijo LS,
Tachikawa LS, Tokyo LS, Hachioji LS, Futakotamagawa
LS, Machida LS, Meguro LS, Roppongi LS

Takamatsu LS

Kinki region 8properties
Kyushu region
2properties【Fukuoka】

Fukuoka-Tenjin LS【Kagoshima】Kagoshima LS【Wakayama】Wakayama LS【Kyoto】

Kyoto LS Annex, Kyoto LS【Osaka】

Umeda LS, Hankyu-Umeda LS,【Kanagawa】Yokohama LS, Aobadai LS, Kawasaki LS,Tennoji LS, Nanba LS
Fujisawa LS, Musashikosugi LS
Kobe LS【Hyogo】© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 15

BS Business（Therapy）
Signs of improvement appeared for quarterly income.
Focusing on customer acquisition through the promotion and enhancement ofservices.
【 Quarterly Net Sales &Operating Income 】

Overview 業績の概況of Financial Results【業績概況】Net■ Net Sales ● Operating Income(Unit : million yen)

300

50253

Sales: 438million yen（ yoy ＋131million yen）250
Operating Income : ▲276million yen
200（ yoy ▲92million yen）
150
・Net sales increased due to the promotional effects of proactively
holding events, which increased demand at the year end.
・Income decreased due to prior investment to open new stores, but 100
quarterly income showed a tendency toward improvement.
・This fiscal year, five new dog salons will open, resulting in a 24-salon 50
system for the Group. (In 3Q, three new salons will be established.)
・The number of customers per salon has been increasing steadily.
012(9)

0(50)210(68)(107)
51

2018.31Q

66

88

97(100)
(150)

46

2Q

3Q

(156)

(152)

4Q

2019.3
1Q

(136)
(200)
2Q

3Q

© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 16

Global Business
Local system in China was reorganized to strengthen organizational power.
Conversion to profitable constitution was promoted via selection andconcentration.
Overview 業績の概況
of Financial ResultsNet【 Quarterly Net Sales &Operating Income 】
1,200: 1,496million yen
1,000（ yoy ▲1,141million yen）
800
Operating Income : ▲1,107million yen（ yoy ＋122million yen）

■ Net Sales ● Operating Income

Sales

802881600

・Net income decreased due to the disposition of consolidated businesscompanies in China: 29 companies (end of March FY2018) to 12 companies
400(end of 3Q of March FY2019).
・Loss was reduced by increasing business efficiency largely through the200
dissolution of joint ventures.
・Project acquisitions by promoting sales→ Undertaking contracts for facility operation: 3 projects (2 in Beijing and 1 0in Dalian)→ Training for external sales: 11 trainings

(405)

954

0(100)

937(344)(436)(480)(Unit : million yen)

(200)

(326)
(368)
502
503

(413)

(300)
(400)

491

(500)
(600)
(700)
(800)

2018.3
1Q

2Q

3Q

4Q

2019.3
1Q

2Q

3Q© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 17

FY2019.3
Earnings Forecast© 2019 NICHIIGAKKAN CO., LTD. All rights reserved.

18

FY2019.3 Earnings Forecast(Consolidated)（Unit：million yen）

FY2018.3
Amount

FY2019.3
3Q
Amount

FY2019.3

yoy（％）

Revised forecast

283,767

215,723

293,500

3.4%

7,630

7,336

14,700

92.7%

2.7%

3.4%

5.0%

-3,628

4,043

9,600

164.6%%

1.3%

1.9%

3.3%

-Profit attributable to854

2,107

5,100

496.9%

0.3%

1.0%

1.7%

-Net Sales
Operating
Income%Ordinary
Incomeowners of parent%© 2019 NICHIIGAKKAN CO., LTD. All rights reserved.

19

Consolidated Net Sales by Segment（Unit：million yen）

FY2018.3

Net Sales
Amount

FY2019.3
3Q
Amount

FY2019.3
Revised forecastyoy(%）

Medical Support

107,272

80,733110,000

2.5%

Long-term Care

149,811

114,167

152,800

2.0%

Child Care

9,365

8,739

12,00028.1%

Health Care

1,398

1,228

2,000

43.1%

Education

12,0688,914

13,0007.7%

373

438

1,000

168.1%

Global3,574

1,4962,800▲ 21.7%

Other1,933

1,051

1,900

▲ 1.7%

Elimination▲ 2,030▲ 1,045▲ 2,000-Total

283,767

215,723

293,500

3.4%

Therapy© 2019 NICHIIGAKKAN CO., LTD. All rights reserved.

20

Consolidated Operating Income by Segment（Unit：million yen）

FY2018.3

Operating Income
AmountMedical Support％
Long-term Care％
Child Care％
Health Care％
Education％
Therapy％
Global％Other％
Elimination

Total％FY2019.33Q
Amount

FY2019.3
Revised forecastyoy(%）

8,8996,693

10,000

8.3%

8.3%

9.1%

14,81012,47416,000

9.9%

10.9%

10.5%

▲ 564

▲ 229

400

6.0%

2.6%

3.3%

▲ 223▲707▲ 600▲ 16.0%57.6%▲ 30.0%▲ 4,474▲ 2,761▲ 1,500▲ 37.1%▲ 31.0%▲ 11.5%

▲ 340

▲ 276

40

▲ 91.3%▲ 63.0%4.0%▲ 1,665▲ 1,107▲ 900▲ 46.6%▲ 74.0%▲ 32.1%204173

260

10.6%

16.5%

13.7%

▲ 9,014▲ 6,920▲ 9,000-7,6307,336

14,700

92.7%

2.7%

3.4%

5.0%

12.4%
8.0%
27.5%

© 2019 NICHIIGAKKAN CO., LTD. All rights reserved.

21

Allこの配付資料に記載されている業績目標および契約数・利用者数・目
performance targets and other forecasts, including numbers ofcontracts
and users, and goals, contained in this document are
標等は、いずれも当社企業グループが現時点において把握している情報
based
on information currently available to the Nichii Gakkan Groupを基にした予想値であり、これらは経済環境、規制緩和、雇用情勢など
and will be affected by uncertain factors, including economicの不確実な要因の影響を受けます。
circumstances, the relaxation of regulations, and employment
したがって、実際の業績および契約数・利用者数等はこの配付資料にconditions. Please note that actual results, numbers of contracts and
記載されている予想とは異なる場合がありますことをご承知ください。
users, and other data may be different from the forecasts.

Contact information
NICHIIGAKKAN Co ., LTD.
PR Division, Public Relations Department
Corporate Governance Headquarters
Address: 2-9 Kanda Surugadai, Chiyoda-ku, Tokyo
Tel: 03-3291-3954 (PR Division)
E-mail: nichii-ir@nichiigakkan.co.jp© 2019 NICHIIGAKKAN CO., LTD. All rights reserved.

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