www.nichiigakkan.co.jp

NICHIIGAKKAN CO., LTD.

Financial Results Briefing Document
for the Three Months Ended June 30, 2019

August 8,2019

Overview of Financial Results© 2019 NICHIIGAKKAN CO., LTD. All rights reserved.

1

Financial Results Highlights
1

Achieved another record high in quarterly net sales by returning
to the roots of NICHII’s strengths based on its core businesses.

2

A continuous improvement in profitability resulted in thehighest profit in eight quarters.
（Unit: million yen）

FY2020.3

FY2019.3
1Q

Difference1Q(yoy)Change70,835

73,523

1,263

2,723%

1.8%

3.7%

--

Ordinary Income

139

1,574+1,434-%

0.2%

2.1%

--

▲ 158927+1,086-Net Sales
Operating Income

Profit attributable toowners of parents+2,6873.8%+1,459 115.5%© 2019 NICHIIGAKKAN CO., LTD. All rights reserved.

2

Overviews by Business Segment(Consolidated Net Sales)（Unit:million yen)

FY2019.3

FY2020.3

Difference

1Q

1Q(yoy)Medical Support

26,79428,467+1,673

6.2%

Long-term Care

37,44838,059

+611

1.6%

2,568

3,153+585

22.8%

381423+4211.0%

2,893

2,785

▲108▲ 3.7%

Therapy

88145+57

64.8%

Global502430▲72▲ 14.3%

Others508210▲298▲ 58.7%

Eliminations▲ 350▲ 153+197-Total

70,83573,523+2,687

3.8%

Net SalesChild Care
Health Care
Education

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

3

Overviews by Business Segment(Consolidated Operating Income)(Unit:million yen)

FY2019.3

FY2020.3

Difference

1Q

1Q(yoy)Medical Support

2,119

2,359+240

11.3%

Long-term Care

3,649

4,191+542

14.9%

Child Care

▲ 404

▲ 546▲142-

Health Care▲ 115▲ 493▲378-▲ 1,210▲ 56+1,154-Therapy▲ 152▲ 85+67-

Global▲ 326▲ 149+177-

Others

7647▲29▲38.2%▲ 2,373▲ 2,542▲169-

1,263

2,723+1,459

115.5%

Operating Income

Education

Eliminations

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

4

Overviews by Business Segment(Consolidated Ordinary Income)(Unit:million yen)

FY2019.3

FY2020.3

Difference

1Q

1Q(yoy)Medical Support

2,155

2,390+235

10.9%

Long-term Care

2,525

3,040+515

20.4%

Child Care▲ 448▲ 581▲133-

Health Care▲ 115▲ 494▲379-▲ 1,213▲ 77+1,136-

Therapy▲ 152▲ 85+67-

Global▲ 381▲ 165+216-

Others7750▲27▲ 35.1%▲ 2,309▲ 2,503

▲194-

139

1,574+1,434-

Ordinary Income

Education

Eliminations

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

Summary of Balance Sheet (Consolidated)(Unit : million yen)

End of March 2019

End of June 2019

Difference

65,684
127,955

67,251
126,753+1,566▲1,201

193,640

194,005+364

60,664
91,89862,83590,302+2,171▲1,596

Total liabilities

152,562

153,137+574

Total net assets

41,07740,867▲209

193,640

194,005+364

Current assets
Fixed assets
Total assets
Current liabilities
Non-current liabilities

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

6

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

7

(Core Business) Medical Support
Achieved sales growth of 6.2% by acquiring medical administration contracts
and undertaking new consolidation
Overview of Financial Results
Net Sales
Operating Income

28,467million yen（yoy+1,673 million yen）
2,359million yen（ yoy +240 million yen）

→Net sales and income increased by acquiring new contracts
with large hospitals and consolidating Yao Medical PFI Co., Ltd.
→Maintained an upward trend in the number of persons taking
the medical administration course【Quarterly Net Sales &Operating Income】■Net Sales━Operating Income

28,467

26,794

26,877• Promote the medical administration course to increase
participant numbers, provide employment guidance upon
the completion of the course, and improve recruitment
activities• Strengthen sales activities to acquire new contracts withhospitals and clinics

27,062

27,040
2,553

2,329

Future actions（Unit：million yen）

2,119

2019.3
1Q

2Q

2,359

2,245

3Q

4Q

2020.3
1Q© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 8

（Reference）about Yao Medical PFI Co., Ltd
Representative company ：NICHIIGAKKAN CO., LTD.（51% investment）
Investment company：KANDEN Facilities., LTD ,Mitsubishi Corporation
Japan Clinical Laboratories,Inc.
Contract：1st period（2014.4~2019.3）、2 nd period（2019.4~2034.3）

2Q Net Sales (Forecast) ：3,500million yen（1Q amount 1,134million yen）●Feature of Yao Medical
PFI Co., Ltd

Yao Medical PFI Co., Ltd（SPC）

Request levelmonitoring

Facility maintenance
Facility management

Yao Medical
PFI Co., Ltd

Hospital operation（8 business of cabinet order）
Proposal andimplementation

Other hospital operations© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 9

(Core Business) Long-Term Care
The trend of improvement in productivity per worker continued thanks to anincrease in the occupancy of long-term care facilities and the service unit priceOverview of Financial Results
Net Sales
Operating Income

38,059million yen（ yoy +611million yen）
4,191million yen（ yoy +542million yen）

→Net sales and income grew thanks to the high occupancy oflong-term care facilities and an increase in the unit price forusing services.
→The total number of people using long-term care benefits
and support for the independence of people with disabilities
increased steadily.

Future actions• In-home care service: Continue to improve responses topatients in a moderate or severe condition• Residential care service: Maintain high occupancy by taking
measures such as campaigns•Human resources: Continue to improve employee compensation
Continue to take measures to acquire human resources at thefacilities【Quarterly Net Sales &Operating Income】■Net Sales━Operating Income （Unit：million yen）

38,07838,64137,44838,05937,277

4,370

4,191

4,455
3,909

3,649

2019.3
1Q

2Q

3Q

4Q

2020.3
1Q© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 10

(Core Business) Child Care
Maintained the trend of sales growth by actively opening childcare facilities
Overview of Financial Results
Net Sales
Operating Income【Quarterly Net Sales &Operating Income】■Net Sales━Operating Income

3,153million yen（ yoy +585million yen）
▲546million yen（ yoy ▲142million yen）

→Established 34 new childcare facilities in the 1st quarter(total of 285 locations)→Net sales increased due to higher occupancy at existing
facilities→Income decreased due to upfront expenses for establishing
new facilities

Future actions（Unit：million yen）

3,820
3,306
2,865
2,568

248

3,153435

▲ 73

▲ 404

▲ 546

• Acquire corporate-user contracts for corporate-run childcare
centers and promote expansion in regional usage limits• Strengthen sales activities targeting local governments• Take measures to increase recognition in communities(hold private viewings, childcare events, etc.)

2019.3
1Q

2Q

3Q

4Q

2020.3
1Q© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 11

(BS Business) Health Care
Focused on the development of the human resourcesbase in view of growth in the housekeeping service market

Overview of Financial Results【Quarterly Net Sales &Operating Income】■Net Sales

Net Sales
Operating Income

423million yen（ yoy +42million yen）
▲493million yen（ yoy ▲378million yen）

→Increased net sales by acquiring customers throughcampaigns and corporate contracts→Income decreased due to an increase in upfront expenses for
accepting foreign personnel━Operating Income（Unit：million yen）

449404398423381

▲ 115

▲ 194

Future actions• Prepare for the expansion of areas to provide services(planning to expand to Aichi Pref. in September and Chiba city inChiba Pref. in the 4th quarter)• Strengthen sales promotion through campaigns, events, etc.
2019.3• Strengthen sales activities targeting companies
1Q▲ 3982Q3Q▲ 4414Q▲ 4932020.31Q© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 12

(BS Business) Education
Steady progress made to turn a profit
at an early stage based on the new Gaba 50 LS organization
Overview of Financial Results
Net Sales
Operating Income

2,785million yen（ yoy ▲108million yen）
▲56million yen（ yoy +1,154million yen）

【Quarterly Net Sales &Operating Income】■Net Sales

2,893━Operating Income

3,036→Income decreased due to withdrawal from the COCO Jukubusiness→Operating loss was reduced by school closures, a decrease inadvertising expenses, etc.
→Maintained a stable number of participants in the conventional
Gaba 44 Learning Studios (“LS”)

3,027

2,785
▲ 56▲ 720

▲ 831

Future actions• Improve acquisition of new participants(promote through trial lessons and improve measures toincrease sales per customer)• Improve the retention of continuing participants (improvepromotion for continuous participation)• Take measures to close franchise schools (end of March 2020)

2,985（Unit：million yen）

▲ 1,210▲ 1,349
2019.3
1Q

2Q

3Q

4Q

2020.3
1Q© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 13

(BS Business) Therapy
New and repeat customers increased thanks to successful campaigns
and other promotional activities

Overview of Financial Results【Quarterly Net Sales &Operating Income】■Net Sales

Net Sales
Operating Income━Operating Income

145million yen（ yoy +57million yen）
▲85million yen（ yoy +67million yen）

253

→Net sales increased and operating loss decreased due to an
Increase in the number of customers as a result ofcampaigns and other promotional activities to meetseasonal demand.
→Salons moving into the black in single months increased.

12Future actions• Further improve target-specific campaigns and events• Prepare for the opening of a new salon in July
*One opening in the quarter under review (the total will be25 salons)

88

▲ 152

2019.3
1Q（Unit：million yen）

145
109

97

▲ 85

▲ 107

▲ 136

2Q

3Q

4Q

2020.3
1Q© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 14

Global Business
Increased profit by concentrating management resources
through corporate reorganization
Overview of Financial Results【Quarterly Net Sales &Operating Income】■Net Sales

Net Sales
Operating Income

430million yen（ yoy ▲72million yen）
▲149million yen（ yoy +177million yen）

502

━Operating Income503（Unit：million yen）

491
457

→Net sales decreased, primarily due to the reorganization ofthe joint venture in China→Operating loss decreased due to corporate reorganization(integrated management function with Nichii Beijing

430

▲ 138

▲ 149

4Q

2020.3
1Q

Future actions▲ 326• Acquire contracts for the operation of facilities that treat
dementia patients in China• Improve the promotion of BtoB and BtoC long-term caretraining• Improve the acquisition of consulting projects for theestablishment of long-term care facilities

▲ 368
▲ 413

2019.31Q

2Q

3Q© 2019 NICHIIGAKKAN CO., LTD. All rights reserved. 15

FY2020.3 Earnings Forecast© 2019 NICHIIGAKKAN CO., LTD. All rights reserved.

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FY2020.3 Earnings Forecast(Unit :million yen)

Consolidated

FY2019.3

Difference

FY2020.3

Change(yoy)Net Sales

287,822

303,000+15,178

5.3%

Operating Income

10,032

15,200+5,168

51.5%

3.5%

5.0%

-

5,703

11,000+5,297

2.0%

3.6%

-6,108

6,700

+592

2.1%

2.2%

-%

Ordinary Income%

Profit attributable toowners of parent%

92.9%9.7%© 2019 NICHIIGAKKAN CO., LTD. All rights reserved.

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Consolidated Net Sales by Segment(Unit :million yen)

Net Sales

FY2019.3

Difference

FY2020.3(yoy)

ChangeMedical Support

107,773

113,100+5,327+4.9%

Long-term Care

151,444

157,500+6,056+4.0%Child Care

12,55914,800+2,241+17.8%

Core Business

271,777

285,400+13,623+5.0%

Health Care

1,632

3,100+1,468+90.0%

11,941

11,300▲641▲ 5.4%

547

900+353+64.5%

14,12015,300+1,180+8.4%

Global

1,953

2,300

+347

+17.8%

Others1,410700▲710▲ 50.4%▲ 1,380▲ 700+680-287,882

303,000+15,118+5.3%

Education
Therapy
BS BusinessEliminations
Total© 2019 NICHIIGAKKAN CO., LTD. All rights reserved.

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Consolidated Operating Income by Segment(Unit :million yen)

Operating Income

FY2019.3

Difference

FY2020.3(yoy)

ChangeMedical Support

9,246

9,600+354+3.8%

Long-term Care

16,38317,000+617+3.8%

206

700+494+239.8%

Core Business

25,83627,300+1,464+5.7%

Health Care

▲ 1,148▲ 2,000▲852-

Education▲ 4,110▲ 900+3,210-▲ 383▲ 100+283-

BS Business▲ 5,641▲ 3,000+2,641-

Global

▲ 1,246▲ 300+946-

Others228200▲28▲ 12.3%▲ 9,143▲ 9,000+143-

10,032

15,200+5,168+51.5%

Child Care

Therapy

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

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Consolidated Ordinary Income by Segment(Unit :million yen)

Ordinary Income

FY2019.3

Difference

FY2020.3(yoy)ChangeMedical Support

9,382

9,500+118+1.3%

Long-term Care

11,892

12,900+1,008+8.5%▲ 33500+533-Business

21,241

22,900+1,659+7.8%

Health Care

▲ 1,149▲ 2,000▲851-

Education▲ 4,032▲ 700+3,332-▲ 384▲ 100+284-

BS Business▲ 5,565▲ 2,800+2,765-

Global

▲ 1,342▲ 300+1,042-

Others242200▲42▲ 17.4%▲ 8,871▲ 9,000▲129-5,703

11,000+5,297+92.9%

Child CareCoreTherapy

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

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All performance targets and other forecasts, including numbers ofcontracts and users, and goals, contained in this document arebased on information currently available to the Nichii Gakkan Groupand will be affected by uncertain factors, including economic
circumstances, the relaxation of regulations, and employmentconditions. Please note that actual results, numbers of contracts andusers, 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© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

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