www.nichiigakkan.co.jp

NICHIIGAKKAN CO., LTD.

Financial Results Briefing Document
for the First Three Months of the Fiscal Year Ending March 31, 2017

August 12, 2016

Financial Results Highlights（Unit: million yen）

FY2016 1Q
AmountNet Sales
Operating Income%Ordinary Income%

Profit attributable toowners of parent%

FY2017 1Ｑ
AmountChange67,878

68,4140.8%

▲614

▲215-

▲0.9%

▲0.3％

▲1,028▲1,250

▲1.5％

▲1.8％

▲1,165▲1,313

▲1.7％

▲1.9％

-© 2016 NICHIIGAKKAN CO., LTD. All rights reserved.

2

Main Points of Results1Net sales hit a record highNet sales were driven by the childcare, language
education, and China businesses.

Accelerated growth inchildcare business

Sales rose 62.3% year on year.

3

Improved operating income

The operating loss was reduced by 399 million yen
from a year ago.

4

High level of customer
satisfaction

Nikkei DUAL 2016: Ranked first among housekeeping service providers.
Oricon, IID Awards 2015: Ranked first among English conversation schools.
The Company’s customer satisfaction survey (long-term care): Overall customer
satisfaction stood at 95.4%.

2© 2016 NICHIIGAKKAN CO., LTD. All rights reserved.
3

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

Net Sales

FY2016 1Q

FY2017 1Q

Change（Unit: million yen）
Operating Income

FY2016 1Q

FY2017 1Q

Change(%）

Medical Support

27,10627,010 ▲0.4%

Medical Support

1,900

1,672

▲12.0%

Long-term Care

35,74835,685 ▲0.2%

Long-term Care

1,608

2,037

26.6%

944

858 ▲9.1%

3397

194.5%

Health Care

Health Care

Education

3,116

3,2133.1%

Education▲1,606▲1,110-Child Care

712

1,156

62.3%

Child Care▲261▲262-

China318482

51.4%

China▲116▲365-Others

296232 ▲21.7%

749628.8%▲2,246▲2,381-▲614▲215-

Elimination▲ 365▲223－

Total

67,87868,4140.8%

OthersElimination

Total© 2016 NICHIIGAKKAN CO., LTD. All rights reserved.

4

Major Changes in Net Sales（Unit: million yen）

・Hospitals ＋0.15 billion yen
・Clinics－0.15 billion yen
・Medical Education－0.05 billion yen

・Home Care －0.65 billion yen
・Facility Care ＋0.65 billion yen
・Care Education－0.05 billion yen

Medical‘16.3 Support
1Q＋142＋164＋44467,878▲96

Year on year
Increase in sales of536million yen
68,414▲64+97▲63Long-term
Care▲86

HealthCareEducation

ChildCareChinaOtherElimination

‘17.3
1Q

Contribution 3strategy business© 2016 NICHIIGAKKAN CO., LTD. All rights reserved.

5

Major Changes in Net Sales(Year On Year）（Unit: million yen）

FY2016
1Q

・Hospitals ＋0.45 billion yen
・Clinics－0.2 billion yen
・Medical Education－0.1 billion yen

67,720・Home Care －0.6 billion yen
・Facility Care ＋0.1 billion yen
・Care Education－0.0５billion yen+173+18+103Year on year Increase insales of 158 million yen+243▲3・China existing＋0.3billion yen
・Domestic －0.1billion yen

▲587

‘15.3
1Q

MedicalSupport

・Hospitals ＋0.15 billion yen
・Clinics－0.15 billion yen
・Medical Education－0.05 billion yen

FY2017
1Q

Long-term
Care

HealthCareChildCare

Other

Elimination

Year on year Increase insales of 536 million yen+142+164+444

‘16.3
1Q
68,414▲64+97
▲96

‘16.3
1Q

Education

・Home Care －0.65 billion yen
・Facility Care ＋0.65 billion yen
・Care Education－0.0５billion yen

67,87867,878+209

MedicalSupport▲63Long-term
Care▲86HealthCareEducation

ChildCareChinaOtherElimination‘17.31Q© 2016 NICHIIGAKKAN CO., LTD. All rights reserved.

6

Major Changes in Operating Income
Year on Year
（Unit: million yen）

Increase in profit of 399 million yen（improvement in Operating loss ）・Home Care
+ 0.25 billion yen
・Facility Care+ 0.2 billion yen
・Care Education － 0.05 billion yen＋496＋429＋22
▲1＋64

▲249

▲135

▲215

▲614
‘16.31Q▲228
Medical Long-term HealthSupportCareCareEducation

ChildCareContribution Long-term care and EducationChinaOther‘17.3
Elimination
1Q© 2016 NICHIIGAKKAN CO., LTD. All rights reserved.

7

Major Changes in Operating Income（Unit: million yen）

1,258

FY2016
2016年
1Q
3月期

・Home Care

▲94・Facility Care
・Care Education

１Q実績－1.25 billion yen－0.6billion yen+ 0.2billion yen+79▲1,676‘15.3
1Q

FY2017
2017年
3月期
1Q

Year on year
Decrease in profit of
1,872 million yen

・ Medical Support－ 0.45 billion yen
・Medical Education+0.35 billion yen

MedicalSupport

Long-term
Care▲82HealthCare・Home Care
+0.25 billion yen
・ Medical Support・Facility Care－ 0.1 billion yen+0.2 billion yen
・Medical Education
・Care Education－0.1 billion yen－0.05 billion yen+429

１Q実績

・Domestic－0.1billion yen

Education+126▲98▲130ChildCare

Other

▲614
Elimination

‘16.3
1Q

Year on year
+142
Increase in profit of399 million yen+496（improvement in Operating loss ）+22+64▲1▲249▲135▲215

Elimination

‘17.3
1Q

▲614
‘16.3
1Q

▲228
Medical Long-term
SupportCare

HealthCare

Education

ChildCare

ChilnaOther© 2016 NICHIIGAKKAN CO., LTD. All rights reserved.

8Ordinary income and Profit attributable to owners of parent（Unit：million yen）
・Interest expenses
973million yen（yoy・Rent expenses
9million yen（ 〃・Foreign exchange losses
3million yen（ 〃・Share of loss of entities accounted for using
3million yen（ 〃・Other60million yen（ 〃▲215

Operatingincome+173million yen）
▲5.6million yen）
+349million yen）

[FY17.3 1Q]
前期比 4,907百万円減益
Ordinary Income ▲1,250million yen▲4.4millionyen）▲5.4million yen）

▲1,313million yen

Profit attributable to owners of parent

359

Nonoperating
income▲1,394▲1,2508Nonoperating
expenses

Ordinary
incomeExtraordinary
income▲1Extraordinary
losses▲1,243

Incomebeforeincometaxes

▲9323

Total
incometaxes

Profit attributable
to non-controllinginterests▲1,313

Profit attributable toowners of parent© 2016 NICHIIGAKKAN CO., LTD. All rights reserved.
9

Changes in Cash flow
(Unit : million yen）
FY2016.3

FY2017.3

1Q

1Q

Difference

Cash flows from Operating activities▲1,701▲724977

Cash flows from Investing activities▲2,050

▲596

1,454

Cash flows from Financial activities

4,172

924

▲3,248

Free cash flow

▲3,751▲1,3202,431

Cash and cash equivalents at end of year

11,676

14,0152,339© 2016 NICHIIGAKKAN CO., LTD. All rights reserved.

10Summary of the balance sheet（Unit : millon yen）
End of March 2016

End of June 2016

Difference

End of June
2015

Current assets

63,181

62,183▲998

61,881

Fixed assets

120,988

124,131

3,143

126,346

Total assets

184,170

186,3152,145

188,227

Current liabilities

68,171

69,393

1,222

59,282

Non-currentliabilities

77,89680,3152,419

75,336

Total liabilities

146,068

149,708

3,640

134,619

Total net assets

38,10136,606▲1,49553,608

Total liabilities
and net assets

184,170

186,3152,145

188,227© 2016 NICHIIGAKKAN CO., LTD. All rights reserved.
11

Core Businesses: Steps for Recovery in Long-term Care Business
Students in Care Education (initial training for care workers + practical courses for careworkers) increased.
1st step (increase instudents)

2nd step (increase in staff)

Number of students has been on
an upward trend.

6,043(Number of people)

2,500
2,000
1,500

Practicalcourses for care
介護福祉士実務者研修workers
介護職員初任者研修
Initialtraining for care workers

3,748

1,0005000Apr

4月 May
5月

June
6月

Fiscal year ended
FY15.3Mar. 2015

AprMayJune

4月 5月 6月
Fiscal year ended
FY16.3Mar. 2016

AprMayJune

4月 5月 6月
Fiscal year ending
FY17.3Mar.
2017

3rd step (increase inusers)► April to June of fiscal year ending
March 2017
Up around 60% year on year
►The number of students taking
practical courses for care workers
increased significantly in association withchanges in the qualifications for the careworker national examination.
© 2016 NICHIIGAKKAN CO., LTD. All rights reserved.

12【Core businesses 】Active development to the spreading childcare market
Totaling over 100 facilities.
End of Jun.
2016
(Fore cast)

2028+81442+281822+475▲21617+175114+39

Taking over the business of a company that operated in Tokyo, where there are strong needs for child care
On July 1, 2016, the Company took over the child care business operated by Tokyo Living Service, a subsidiary of Nippon General
Food, a major food service company.

■Method of business succession■Outline of the company that the Company has taken overTokyo Living Service established Sawayaka Hoiku , which took
over the child care business via an absorption-type company
split. The Company then acquired all the shares in Sawayaka
Hoiku K.K. to take over the business.

NameSawayaka Hoiku

Facilities
taken over

One authorized childcare facility and six
certified childcare facilities

LocationTokyo© 2016 NICHIIGAKKAN CO., LTD. All rights reserved. 13

Strategic Businesses: Recovery of Investment in COCO Juku Schools
The number of attending students has been increasing steadily, a reflection of improved
customer satisfaction and new customers.
May 2016COCO Juku introduces
a satisfaction guaranteesystem

New customers

April 2016
Launch of online
lessons

Renewal・COCO Juku in April 2015
(Introduction of point system)
・COCO Juku Junior inMarch 2016 (Curriculum)

Number ofstudents
attendingschools▶Number of students in June 2016
・COCO Juku: Up 27.6% year on year
・COCO Juku Junior: Up 34.8% year on year(including HI classrooms)▶December 2015
COCO Juku was ranked first among English conversation
schools in the 2015 Oricon Japan Customer Satisfaction
Ranking.

▶October 2015
COCO Juku won the top English conversation school prize of IID
Awards 2015.

Customer satisfaction© 2016 NICHIIGAKKAN CO., LTD. All rights reserved.

14

【 Global 】China Business Consolidation progressCompanySchool１

広州市正祥和家政服務有限公司

２

北京三傑聖一人力資源有限公司

３

瀋陽助尓家政服務有限公司

４

済南仁徳家庭服務有限公司

５

常州金蓓蕾健康諮詢服務有限公司

６

深圳市中家家庭服務有限公司

７

深圳市中家華傭家政服務有限公司

８

深圳市中家星級家政服務有限公司

９

深圳市中家職業技能培訓学校

10

杭州天使家政服務有限公司

11

大連九鼎互聯科技発展有限公司

12

武漢尓邦家政有限公司

13

広西康之橋護理服務有限公司

14

南寧康之橋職業培訓学校

学15

欽州康之橋職業培訓学校

学16

安徽賽菲家庭服務管理有限公司

17

合肥賽菲職業培訓学校

ＰＬＢＳ

FY2016FY2016

9 companies and 1school corporation
were consolidated.

11 companies
and 1 school
corporation wereconsolidated（Unit：millions or Yen）

1Q
（Jun.-Mar.）Net Sales

482

Operating
Income▲365

Amortization of goodwill

81

Includes wholly-owned subsidiaries of the Nichii Group学（Unit：millions or Yen）

1Q
2Companies※2Q（expected）

1Q

Total Assets

6,351

2 companies
and 3school
corporation

Net assets

2,676

Goodwill

2,078

学© 2016 NICHIIGAKKAN CO., LTD. All rights reserved.

15

Expansion of the Executive Officer System to Enhance
Organizational Operations
The executive officer system was expanded in April 2016 to strengthen the execution ofbusiness operations.
Executive officers have been assigned nationwide to strengthen thebusiness execution structures at branches and work sites.
Total 26people（Executive Managing Officer 5people + Executive Officer 21people）

Head Office
Executive ManagingOfficer
Ms. Hoshino
Ms. Tanemoto
Mr. Nakamura
Executive Officer
Mr. Tsurumaru
Mr. Fukuda
Ms. Suzuki
Mr. Kodama
Mr. Tsujiuchi
Ms. Suzuki

East Japan
Executive Officer
Ms. Saito
Ms. Kudo
Ms. Nikaido

Tokyo
Executive Officer
Ms. Itagaki
Mr. Kawauchi
Ms. Endo
Ms. Nagashima

Central JapanWest JapanKyushu

Executive Officer
Mr. Hayami
Ms. Saegusa
Mr. Watanabe

Executive ManagingOfficer
Ms. Kihara

Executive Officer
Ms. Nishi
Mr. Yamanaka
Mr. kawakami

Executive Officer
Mr. Tsujimoto
Ms. Miyai© 2016 NICHIIGAKKAN CO., LTD. All rights reserved.

16

All performance targets and other forecasts, including
numbers of contracts and users, and goals, contained in thisdocument are based on information currently available to
the Nichii Gakkan Group and will be affected by uncertainfactors, including economic circumstances, the relaxation ofregulations, and employment conditions. Please note that
actual results, numbers of contracts and users, and otherdata 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
17