Financial Results Briefing Document
For the First Halfof the Year Ending March 2010
(1H FY2010)
November 19, 2009

Information Meeting of
Financial Report for the First Half of
FY2010Nichii Gakkan Company
President and Representative Director

Daisuke Terada

Contents
1. 1H FY2010 Overview of Financial Results1) 1H FY2010 financial results2) Overview of 1H FY2010
3) 1H FY2010 net sales and operating income by segment
4) Quarterly net sales and operating income by segment
5) 1H FY2010 financial results
Medical Support Business
Health Care Business
Education Business6) Quarterly cash flows (consolidated)

P3
P4
P5
P6
P7
P8 – P9P10P11

2. FY2010 Forecast
1) FY2010 forecast
2) FY2010 net sales and operating income by segment
Medical Support Business
Health Care Business
Education Business
3) Education Business: Expanding course menu
4) Business Environment for 2H FY2010 onwards5) Dividend policy

P13
P14
P15
P16 – P17
P18
P19
P20 – P21
P22

3. Business Strategies
1) Future business outlook2) Our strategies for future growth

P24
P25

Financial Results Briefing Document for the First Half of the Year Ending March 2010

2

1H FY2010 financial results

Consolidated
Consolidated(Million yen)

1H FY2010

1H FY2009
Am ount
Net sales
Operating incom e (loss)%

Ordinary incom e (loss)%

Net incom e (loss)%

Am ount (Current- Am ount (Result)term initial forecast)

105,958(1,181)

113,300
1,600

112,6432,398(1.1)%

1.4%

2.1%(1,313)

1,500

2,293

(1.2)%

1.3%

2.0%(1,539)500677(1.5)%

0.4%

0.6%

Financial Results Briefing Document for the First Half of the Year Ending March 2010

3

YoY

6.3%
-

Overview of 1H FY2010
1. Another record-high sales
Health Care Business: Net sales reached a record high of ¥53,632 million (up 8.2%
year on year)
Education Business: Net sales reached ¥8,333 million (up 55.6% year on year)

2. Operating income improved significantly: a 49.9% increase
compared with the current-term initial forecast
Education Business: Open courses by taking full advantage of our nationwideclassroom network
Operating income: ¥1,923 million (profit margin 23.1%),
successfully moved into the black
Health Care Business: Earnings from home care service and facility care service
have been improved substantially

3. Cash flow improved significantly
Operating cash flow:
Free cash flow:¥5,175 million (1H FY2009: -¥826 million)¥6,115 million (1H FY2009: -¥1,984 million)

Financial Results Briefing Document for the First Half of the Year Ending March 20104

1H FY2010 net sales and operating income by segment
Consolidated net sales(Million yen)
1H FY 2009

1H FY 2010

YoY

ResultResult％50,72349,549
5,354
1,207
(877)
105,958

Medical Support Business
Health Care Business
Education Business
Other Businesses
Elim inations
Total

Consolidated operating income

50,43553,6328,333
1,340(1,098)112,643( 0.6)%
8.2%
55.6%
11.0%
6.3%
(Million yen)

1H FY 2009

1H FY 2010

YoY

ResultResult％Medical Support Busines
Health Care Business
Education Business
Other Businesses
Elim inations
Total
Financial Results Briefing Document for the First Half of the Year Ending March 2010

3,736
(833)
(887)
119
(3,316)(1,181)
5

3,680
731
1,923
185
(4,123)
2,398(1.5)%
55.5%-

Quarterly net sales and operating income by segment
Consolidated net sales
FY20091Q
52,815
596
2,736

2Q
53,143
611
2,618

3Q
53,464
598
2,850

4Q
54,179
683
3,710

1Q
56,174747
4,528

24,61024,93925,257

24,964

26,409(Million yen)
FY20102Q
56,469593
3,805
27,223Eliminations
Other
Businesses
Education
Business
Health Care
Business

25,34325,38025,26025,30625,12425,311

(470)

(407)

(500)

(484)

(635)

(463)

Consolidated operating income
FY2009
1Q
-881

55

2Q
-300

3Q
789

64

153
86

1Q
1,046
76
1,319

634

97

1,791

1,945

(690)
(281)

(143)
(606)

(1,756)

4Q
1,405
137
342

(Million yen)
FY2010
2Q
1,352
109
604

2,672

2,376

1,667
(132)

(11)

(1,694)(1,733)Eliminations

Other
Businesses
Education
Business
Health Care
Business(2,114)(2,009)
MedicalSupportBusiness(1,560)Financial Results Briefing Document for the First Half of the Year Ending March 2010

2,013

MedicalSupportBusiness6Medical Support Business
Consolidated
Consolidated

Net sales

50,72350,435

1H FY2010 financial results
1H FY2010

Operating income (Million yen)

Net sales
Operating income¥50,435 million¥3,680 million

Overview of Financial Results for
1H FY2010(0.6)%

3,736

The second year of updating contract
terms

3,680
(1.5)%

・Promote updating contract terms
・Establish a system designed for negotiating
contracts next fiscal year
1H FY2009

1H FY2010

NumberNumber ofof contracted
contracted
medicalinstitutions
medical institutions

1H FY2009

Hospitals

9,397
2,014

1H FY2010

Expand medical management support
service

Clinics (Cases)

・Launch Nichii Research Institute Co., Ltd.
・Promote doctors’ office work support services
・Collaborate with Advanced Media, Inc. in termsof capital and business operations to provide
services using a voice-recognition technology
・Launch several solution services

8,899(5.3)%

1,902(5.6)%

Improve working conditions of staff‘Sep. 2008

Sep. 2009‘Sep. 2008

・Utilize improved outcomes obtained from thefirst year’s update of contract terms in order toimprove working conditions of staff

Sep. 2009

Financial Results Briefing Document for the First Half of the Year Ending March 20107

Health Care Business
Consolidated
Consolidated

Net sales

1H FY2010 financial results
1H FY2010

Operating income (Million yen)

Moved into
the black53,632+8.2%

Net sales
Operating income¥53,632 million¥731 million

Overview of Financial Results for
1H FY2010

731

731
49,549Home care, non-insurance services• Increase in the number of care planning users(Care planning users at end of September: +3,503 YoY)

• Home-visit care and day care service
users increased(833)
1H FY2009

1H FY2010

NumberNumber ofof users
users byby service
service
Home care

110,151

104,534
103,337

1H FY2009

1H FY2010(Home-visit care service users at end of September:+3,732 YoY)
(Day care service users at end of September:+993 YoY)

• Users of welfare services for the handicapped
expanded(Cases)Facility care

Facility care service+5.4%• Increase in the number of group home facilities

+1.2%

7,549
6,759

+11.7%+10.3%(3 new facilities established, 7 facilities transferred from
DUSKIN Zero-Care Co., Ltd.)• Improve the utilization rate of facilities
The beginning of FY2009 (January):
The end of 1H FY2009 (June): 86.6%

6,126

83.8%

Improve working conditions of staff
Sep. 2008 ‘

Sep. 2008 Sep. 2009

Nov. 2008 ‘ Sep. 2008 Sep. 2009

Financial Results Briefing Document for the First Half of the Year Ending March 20108

1H FY2010 forecast –Facility care service-

Health Care Business(Million yen)

FY2009HohoemiKirameki
Home
Care Palace
Net sales
Hohoemi%Kirameki%
Home%
Care Palace%
Operating income%

FY2010

1Q

2Q

1H

Full year

1Q

2Q

1H

Full year

AmountAmountAmountAmountAmountAmountAmountAmount (Forecast)

3,031
743
560
2,863

3,042
817
645
2,821

6,073 12,548
1,560 3,605
1,205 2,617
5,684 11,340

3,675
1,176
816
2,741

3,764
1,317
871
2,722

7,439 18,680
2,493 6,430
1,687 3,500
5,463 11,570

7,200
(9)

7,323 14,523 30,110
65
56
435

8,410
208

8,674 17,084 40,180201
409 1,300(0.3)%

2.1%

(388)

0.9%

3.5%

5.7%

5.3%

5.5%

7.0%

(409)

(797) (1,370)

(190)

(116)

(306)

(190)

(52.2)%(50.1)%(51.1)%(38.0)%(16.2)%(8.8)%(12.3)%(3.0)%

(257)

(192)

(449)

(817)

(136)

(62)

(198)

(270)

(45.9)%(29.8)%(37.3)%(31.2)%(16.7)%(7.1)%(11.7)%(7.7)%

(11)

(57)

(68)

(6)

(115)

(148)

(263)

60

(0.4)%(2.0)%(1.2)%(0.1)%(4.2)%(5.4)%(4.8)%

0.5%

(667)

(591) (1,258) (1,759)

(233)

(126)

(359)

900

(9.3)%(8.1)%(2.8)%(1.5)%(2.1)%

2.2%(8.7)%(5.8)%

With respect to the business results for the current period, results of Nichii no Hohoemi and Nichii no Kirameki for the
15-month period between January 2009 and March 2010 will be included, as a result of consolidation to Nichii Gakkan
Co., Ltd. on October 1 (their accounting periods have been changed).

Financial Results Briefing Document for the First Half of the Year Ending March 20109

Education Business
Consolidated
Consolidated

Net sales

1H FY2010 financial results
1H FY2010

Operating income (Million yen)

Net sales
Operating income

8,333+55.6%

Moved into
the black

1,923¥8,333 million¥1,923 million

Overview of Financial1H
Resultsfor 1H FY2010
FY20105,354

Increased in students particularly for 2
principal courses
・A rebound in the numbers of students for both
two courses from the second half (2H) of FY2009(887)

1H FY2009

1H FY2010

1H FY2009

NumberNumber ofof students
students byby course
courseHome Helper course

Home Helper course:
Medical Office Work course:

1H FY2010

Strengthened efforts to promote theJapan’s first Medical Office Clerical
Workers course
・Designated as a course eligible for the(Students)

Medical Office Work course

44,668government’s “Education Training Benefit
Program” in October 2009

29,578+72.1%+16.8%

25,315Development of e-learning courses

25,953

1H FY2009+72% YoY+17% YoY

・We set up and are currently in the development
1H FY2010

1H FY2009

phase of a new e-learning project, as part ofour mid- to long-term strategies for businessgrowth1H FY2010

Financial Results Briefing Document for the First Half of the Year Ending March 201010

Quarterly cash flows (consolidated)(Million yen)

7,000

OperatingCash Flows

InvestingCash Flows

Financing
Cash Flows

Term-endbalance

6,000
5,000
3,886

3,996

4,000
3,000

2,229

2,026

2,000

1,179

1,050

1,000

1,510
466
(1,327)

(836)

0
1,337
(1,000)

1,190
519

1,137

(110)
(817)

(2,000)(1,007)(1,407)(2,144)(3,000)(4,000)(3,712)(5,000)(6,000)(7,000)■ 2Q FY2009■ 3Q FY2009■ 1Q FY2010■ 2Q FY2010

Financial Results Briefing Document for the First Half of the Year Ending March 2010

■ 4Q FY200911

FY2010 Forecast

Financial Results Briefing Document for the First Half of the Year Ending March 201012

FY2010 forecast
Consolidated
Consolidated(Million y en)

FY2010FY2009Amount (Result)
Net sales
Operating income

Amount(Forecast)

YoY

213,601
1,013

236,000
5,470

0.5%

2.3%

800

5,350

0.4%

2.3%

(1,090)2,500(0.5)%

1.1%%

Ordinary income%

Net income (loss)%

Financial Results Briefing Document for the First Half of the Year Ending March 2010

13

10.5%
440.0%
568.8%-

FY2010 net sales and operating income by segment
Consolidated net sales(Million yen)

FY2009 Result

FY2010 Forecast

YoY％

101,289
99,77011,914
2,488(1,861)
213,601

Medical Support Business
Health Care Business
Education Business
Other Businesses
Eliminations
Total

102,000
119,000
14,5002,200(1,700)236,000

Consolidated operating income (loss)

0.7%
19.3%
21.7%
(11.6)%
10.5%(Million yen)

FY2009 Result

FY2010 Forecast

YoY％

Medical Support Business
Health Care Business
Education Business
Other Businesses
Eliminations
Total
Financial Results Briefing Document for the First Half of the Year Ending March 2010

8,784
(758)
(677)
409
(6,743)
1,013
14

8,800
2,500
2,000
200
(8,030)5,470

0.2%(51.1)%
440.0%

FY2010 forecast

Medical Support Business
Consolidated
Consolidated

Net sales

Operating income (Million yen)

Major issues for 2H FY2010

102,000
101,289◆Restructuring of the sales system

+0.7%

8,800
+0.2%

8,784

・Restructure sales departments in major urban
areas such as Kanto and Kinki, to strengthen
the sales system◆Enhancement of the operational
efficiency
・Enhance efficiency of the shifting operation bycreating a virtuous cycle effect
FY2009FY2010 (Forecast) FY2009

NumberNumber ofof contracted
contracted
medicalmedical institutions
institutions

Hospitals

FY2010 (Forecast)Clinics

9,364(Cases)9,380

・Acquire new contracts, focusing on management

support services as a key stepping stone
・Proactively acquire contracts for businesses
related with the medical service fee system revision of
FY2011◆Strengthen efforts to acquire contracts
for doctors’ office work support services+0.2％

・Develop new services using a voice-recognition

2,010
1,977

◆Efforts to acquire new contracts

technology
・Offer services by students who have completed
the Medical Office Clerical Workers course+1.7%◆Expansion of the childcare business
March 2009

March 2010
(Forecast)March 2009

・Strengthen sales efforts for child-care centers within
medical institutions and offices

March 2010
(Forecast)Financial Results Briefing Document for the First Half of the Year Ending March 201015

Health Care Business
Consolidated
Consolidated

Net sales

FY2010 forecast

Operating income (Million yen)

Major issues for 2H FY2010
2,500

119,000+19.3％◆Home care services
・Increase the number of care plans per care
99,770manager・Strengthen sales efforts for home-visit care and day
care services
・Promote acquisition of additional points forfacilities offering specific services(758)
FY2009FY2010 (Forecast)

NumberNumber ofof users
users byby service
service
Home care

FY2009FY2010 (Forecast)◆Facility care service
・Improve the utilization rate of Ohtohen,(Cases)Facility care
121,500

7,670*+14.8％+7.29％

7,149

a facility of Nichii Care Palace Co., Ltd.
・Conduct efficient business management throughreorganizing of acquired businesses after taking
over・Proactive efforts to set up further new facilities◆Non-insurance services

105,848

・Strengthen development of welfare services for thehandicapped
・Expand offering of homemaker services
FY2009FY2010 (Forecast)

FY2009Financial Results Briefing Document for the First Half of the Year Ending March 2010

FY2010 (Forecast)
16*Figures for Nichii Home Co., Ltd. and Nichii Care Palace Co.,
Ltd. are forecasts as of December 2009.

Reorganization of subsidiaries

Health Care Business
Nichii Gakkan Company

Nichii Research Institute Co., Ltd.

Nihon Credit Lease Co., Ltd.

Nichii Green Firm Co., Ltd.

Nihon Support Service Co., Ltd.

Tokyo Marunouchi Publishing Co., Ltd.

Nichii Carenet Co., Ltd.

Nichii Care Palace Co., Ltd.

Nichii Home Co., Ltd.

Nichii Living Co., Ltd.

Keihin Life Service Co., Ltd.

Nichii Care Hyogo Co., Ltd.

Nichii Care Kyoto Co., Ltd.

Nichii Care Aichi Co., Ltd.

Nichii Care Gifu Co., Ltd.

Nichii Care Nagano Co., Ltd.

Nichii Kanto Co., Ltd.

Nichii no Kirameki Co., Ltd.

Nichii no Hohoemi Co., Ltd.

October 1, 2009
(1) Eight companies of Health Care Business were merged into Nichii Gakkan Company.
Consolidated subsidiaries: Nichii no Hohoemi Co., Ltd., Nichii no Kirameki Co., Ltd., and Nichii Kanto Co., Ltd.
Non-consolidated subsidairies: Nichii Care Nagano Co., Ltd., Nichii Care Gifu Co., Ltd., Nichii Care Aichi Co., Ltd.,
Nichii Care Kyoto Co., Ltd., and Nichii Care Hyogo Co., Ltd.
*Due to a change in accounting periods of consolidated subsidiaries Nichii no Hohoemi Co., Ltd., Nichii no Kirameki Co., Ltd., and Nichii
Kanto Co., Ltd., their results for the 15 month period will be posted in the current period.

(2) Nichii Home Co., Ltd. and Nichii Living Co., Ltd. were merged into Nichii Care Palace Co., Ltd.
January 1, 2010(3)Keihin Life Service Co., Ltd., which provides services such as home-visit care andhome-visit bathing, will be merged into Nichii Gakkan Company.
Financial Results Briefing Document for the First Half of the Year Ending March 201017

Education Business
Consolidated
Consolidated

Net sales

FY2010 forecast

Operating income (Million yen)

Major issues for 2H FY2010

2,000

14,500◆Enhancement of existing courses
・Further promote our mainstay courses of “HomeHelper Level 2” and “Medical Office Work” as in
the previous term
・Efficient use of advertisement campaigns
・Efficient setting of classrooms
・Enhance the contents and marketing of theMedical Office Clerical Workers course+21.7%

11,914(677)
FY2009FY2010 (Forecast)

FY2009Net
Net sales
sales byby course
courseHome Helper course

FY2010 (Forecast)（Million yen）

Medical Office Workcourse
7,250

6,300
5,109

FY2009+23.3%FY2010 (Forecast)+20.8%

6,003

FY2009◆Acquire contracts under the“Emergency Job Creation Program”
・Make a proactive effort to acquire contracts
under the Human Resources Development
Assistance Program (subsidies for job trainings)
・Strengthen acceptance of students under thegovernment’s support program “Study andobtain a qualification as a care worker whileworking at long-term care facilities”◆Develop new courses
・Promote the development of new courses that can

FY2010 (Forecast)Financial Results Briefing Document for the First Half of the Year Ending March 201018

respond to various needs for courses such as
medical, long-term care courses and courses
related to the people's daily lives
・Develop e-learning courses from the mid- and longterm perspectives

Education Business

Expanding course menu

・Set up new courses such as the Medical Office Clerical Workers course,
in addition to our mainstays of “Home-Helper Level 2” and “Medical OfficeWork”
・Further increase in contracts under job training programs (approx. ¥400
million)¥8,333 million
Others 4.8%

1H FY2010
Net sales ¥8,333 million

1H FY2000
Net sales ¥5,659 million（Million yen）

National exam prep
course for certified
long-term care workers
1.1%

Medical Office Clerical
Workers 1.3%
（Million yen）

¥5,659 million

Home
HelperHome
Helper

48.3%

4,023
3,712*

44.4%

3,148
2,510

Medical
Office
Work
55.6%

400
105
Medical OfficeWork course*Excluding Medical
Office Clerical Workers
医療事務講座医療事務講座Medical
OfficeWork course

ホームヘルパー講座
Home
HelpercourseTotal

Financial Results Briefing Document for the First Half of the Year Ending March 2010

ホ ームヘルパー講座

Home Helpercourse (A)1992National exam
Medical Office
Clerical Workers prep course forcertified long-termcourse (B)care workers
Ｄ－クラーク400

介護福祉士受験対策

その他

Other courses

Job training
programs(Extracted from(A) and (B))

Medical
Office
work
44.5%

Total

Business environment for 2H FY2010 onwards:
Employment environment
Trends in Unemployment Rate andEffective Ratio of Job Offers to Applicants◆Unemployment rate and effective ratioof job offers to applicants(Times)Unemployment
rate (left axis)

Unemployment rate (Sep.): 5.3%
Effective ratio of job offers to applicants(Sep.): 0.43 times
Effective ratio of job offers
to applicants (right axis)●Unemployment rate
Employment environment isstill harsh, although the unemployment rate has
eased for the second consecutive month by 0.2
points compared with the previous month.

(Graph= updated on November 16)
Source: Unemployment rate: Ministry of Internal Affairs and Communications
Effective ratio of job offers to applicants: Ministry of Health, Labour and Welfare(Note) Blue parts in the above graph represent the duration of economic recession. Currently, it is assumed
that the recession has reached its bottom in March 2009.

医療・福祉の就業者数の推移●Effective ratio of job offers to applicants(10,000
employees)

The ratio
increased by 0.01 points compared with theprevious month, for the first time in the past 2
years and 4 months

Number of Employees in Medical andWelfare Industries

630
620
610

●Number of employees in the medical
and welfare industries increased in
September by 370,000 compared withthe same month of the previous year to
6.26 million.

600
590
580
570
560
550

*Labour Force Survey (QE, monthly-base), Statistics
Bureau, Ministry of Internal Affairs and Communications
Financial Results Briefing Document for the First Half of the Year Ending March 2010

(Seasonally-adjusted)

'06.9

'07.9

'08.9

'09.9

Source: Labour Force Survey (by industry and occupation), Statistics Bureau, Ministry ofInternal Affairs and Communications
20

Business environment for 2H FY2010 onwards:
Government’s measures
Manifesto• Reform medical and long-term care businesses: improve working conditions of long-term care workers through efforts
such as addressing doctor shortage problem, taking preventive measures against the H1N1 influenza, etc.
• Position the long-term care business as a new growth industry, and foster further growth to generate a lot of employment
opportunities. This can be achieved by enhancing attractiveness and growth capability of the industry through improving
compensation and working conditions for workers, etc.

Government measures●Review on the second supplementarybudget for FY2010
The government’s focus will be on the areas of
employment, the environment, and economic-stimulus
measures. They will deploy a policy that emphasizes
on job creation in the field of long-term care services,
etc.

●Emergency employment measures•Create 100,000 new jobs•“Emergency Job Creation Program”•Promote the support program “Study and obtain aqualification as a care worker while working at long-term carefacilities”•Utilize the Emergency Job Creation Businesses Fund (¥450
billion)●Medical service fee revision expected in April 2010
The result of sorting out operations by the Government Revitalization Unit:(1)Review medical service fees of medical departments where unreasonably high levels of incomes were found(2)Eliminate income disparities between hospital doctors and private practitioners

Financial Results Briefing Document for the First Half of the Year Ending March 201021

Dividend policy
Annual dividend for FY2010 ending March 31: 12 yen (interim dividend
6 yen + year-end dividend 6 yen)
Annual dividend increased by 2 yen per share for FY2010
A stock split (1:2) has taken place in FY2009(Yen)(円)30.0
Dividend

25.0
20.0

１７.５

１７.５

２００３年
’03.3

２００４年
’04.3

２２.０

２２.０

２２.０

２００５年
’05.3

２００６年
’06.3

２２.０

１２.０

２２.０

24.0 yena year

15.0
10.0
5.0
0.0
２００７年
’07.3

２００８年
’08.3

２００９年
’09.3
’10.3２０１０年(Plan)<Dividend results> The Group has raised the dividend four times and split its stock six times since thecompany went public and started trading on the over-the-counter‘’95.3

’96.3

’97.3

’98.3

’99.3

’00.3

’01.3

’02.3

’03.3

’04.3

’05.3

’06.3

’07.3

’08.3

’10.3
’09.3 (Forecast)

Dividend per share
(Yen)

12.5

15.0

15.0

15.0

15.0

15.0

15.0

15.0

17.5

17.5

22.0

22.0

22.0

22.0

22.0

Stock split

-

1：1.1

-

-

1：1.1 1：1.5

-

-

-

-

-

-

1：2

Financial Results Briefing Document for the First Half of the Year Ending March 201022

1：1.1 1：1.1

-

12.0

Business Strategies

Financial Results Briefing Document for the First Half of the Year Ending March 201023

Future business outlook
Expanding possibility for future
growth of the market

Increasing demand forservices

Increased demand for humanresource development•Our rapidly aging society will lead tothe expansion of the market (theaging pace will accelerate until 2030)

In addition to the insurance
business, demands for peripheralservices are also expected toincrease•Government’s policy change to theconcept of “Moderate Welfare,
Moderate Burden” will encourage
further growth of the market

Aging people as a “consumer”

Labor shortages dueto the declining
birthrate will increase
the demand forhuman resource
development→ emergence of new demands→ expansion into peripheralservices

Nichii’s sustainability of growthand competitive advantage• As a leading company in the fields of medical support and long-term careservices, we will be able to realize a continuous healthy growth:<<Sustainable growth of our core business>>• Our strength of having a human development department:<<This will further sharpen our competitive edge>>

Financial Results Briefing Document for the First Half of the Year Ending March 201024

Our strategies for future growth1

Investment in human resources• Improve the working conditions of staff for the Medical Support Business• Improve the working conditions of staff for the long-term care services

2

Strategies for the Health Care Business growth• Enhance the scope and quality of our services –(1) Make vigorous efforts to obtain licenses for opening new care facilities, especially grouphome facilities(2) Segmentation of offices for home-visit care, establishment of new facilities for day-careservices(3) Expand more home-maker services as well as support services for people with handicaps

3

Launch of new projects• Health Care Business – Create new added-value features such as a horticulture therapy• “Himeharu no Sato (Mobara City, Chiba Prefecture)” is expected to open in the next period• Medical Support Business –(1) Collaboration with Advanced Media Inc. to develop a new system combining humanresources and IT technology(2) Consulting services developed by Nichii Research Institute Co., Ltd.
• Education Business – Development of e-learning courses (to be used for in-house trainings as
well)
Financial Results Briefing Document for the First Half of the Year Ending March 201025

All the profit targets and other forecasts, including the number of contracts, number ofusers, and goals contained in this document, are based on the current information
available to the Nichii Group. Such information is subject to the influence of factors
such as economic circumstances, relaxation of regulations and employment conditions.
Please understand that actual business performance and other achievements, such as
the number of contracts and number of users, may be substantially different from theforecasts.

Financial Results Briefing Document for the First Half of the Year Ending March 201026