Nichii Gakkan Company

Financial Results
2008年3月期通期

Briefing Document
for the Year Ended March 2008
(FY2008)

May 28, 2008

FY2008 Financial Highlights
Mid-term Business Perspective

President and Representative Director
Takashi Mori

Financial Results Briefing Document for the Year Ended March 2008

1

FY2008 Financial Results (Consolidated/Non-consolidated)
Consolidated

Net sales
Operating income
Ordinary income
Net income(Millions of yen)

FY2007 Result

FY2008 Result

202,549
2,635
2,709
774

199,797
2,171
2,042(834)1

YoY
Change%(2,752)(464)(667)(1,608)Non-consolidated

Net sales
Operating income
Ordinary income
Net income(1.4)(17.6)(24.6)(Millions of yen)

FY2007 Result

FY2008 Result

198,099
2,506
2,682
856

Financial Results Briefing Document for the Year Ended March 2008

2

YoY
Change％185,557(12,542)

(6.3)

2,660
2,983
954

154
301
98

6.2
11.2
11.5

Overview of FY2008

FY2008・Take over the Long-term care business from COMSN Inc. and M＆A
Establish one-stop services for long-term care business(Preventive care service and facility care service)・Move to Specialized Branch System - branch management system specialized
for each business segment

・Integrate multiple brand names used in the group into “Nichii”

・Draw up Mid-Term Business Plan（FY2009-FY2011）

Financial Results Briefing Document for the Year Ended March 20083

History of Healthcare Business
Implement a growth strategy with internal growth and M&A combined
Aiming to be a leading company providing home care and facility care businesses
2000/4 Established 770
long-term care service
facilities across thecountry

2006/4
Expanded
preventive careservices acrossthe country

2002/4Merged with
Aitac Co., Ltd.

1,200

2002/3Developed dayservice centers
across the country

600

Took over the longterm care businessof COMSN, Inc.

Conversion to
subsidiary 3(Millions
1,400 of yen)800

2007/11Merger 4

1999/7 Merged with
Healthy Life Service
Co., Ltd.

1,000

＝M&A

＝Internal growth

758

710

809

2007/4
Moved to theSpecialized
Branch System
1,054
1,088
782

797

605

434

To be a leading company inhome care and facility carebusinesses

400
203

200
0
FY2001

FY2002

FY2003Financial Results Briefing Document for the Year Ended March 2008

FY2004

FY20054FY2006

FY2007

FY2008FY2009FY2009(Plan)

Organization of the Nichii Group
Nichii Gakkan Company
Roris Co., Ltd.

Tokyo Marunouchi Publishing Co., Ltd.

Nihon Support Service Co., Ltd.

Nihon Credit Lease Co., Ltd.

Keihin Life Service Co., Ltd.

Nichii Care Net Co, Ltd.

Nichii Living Co, Ltd.

Nichii Home Co, Ltd.

Nichii no Hohoemi Co, Ltd

Nichii no Kirameki Co, Ltd.

Nichii Kanto Inc.

Nichii Care Palace Co., Ltd.

Heisei Kaigo Co., Ltd.

Subsidiaries
Subsidiaries engaged
engaged in
in Health
Health Care
Care BusinessBusiness<New subsidiaries>[Nichii no Kirameki Co, Ltd.][Nichii no Hohoemi Co, Ltd]
Representative: Kensuke Oba

Representative: Yoko Kawase

Capital: ¥100 million[Nichii Kanto Inc.] (Non-consolidated)[Nichii Home Co, Ltd.]
Representative: Michihiro Tokiwa

Representative: Masao Taguchi

Capital: ¥60 million

Capital: ¥10 million[Heisei Kaigo Co., Ltd.] (Non-consolidated)[Nichii Care Palace Co., Ltd.]

Representative: Yu Tatebe(Previous “Nihon Silver Service Corporation”)

Representative: Yu Tatebe

Capital: ¥40 million

Capital: ¥80 million

Financial Results Briefing Document for the Year Ended March 2008

5

Capital: ¥52 million

FY2009 Growth of net sales by segment（year-to-year comparison）

Net sales(Billions of yen)

300

Health care business steps up to the second growth stage
Facility care business initiatively drives growth

3.5

6.1
10.1
200

3.5
Kirameki

199.7

2.5

（4.8）

222.0
Education
Home Care
Medical

Nichii

NichiiHome

Care Palace

HohoemiSupport(Ohtohen)

FY2008Financial Results Briefing Document for the Year Ended March 2008

1.3

FY20096

Key points of each segment◆ Health Care Business
April 2009 Long-term care payment revision◆ Medical Support Business
Reform of the medical-care system
Revision of medical treatment payment◆ Education Business
Reform of long-term care and medical system
Economic Trend＊ Reform of social security system
Financial Results Briefing Document for the Year Ended March 2008

7

Health Care Business Revision of long-term care insurance law ①■ “Special measures law on securing human resources for care workers”
May 21, 2008

Unanimously approved in the Upper House plenary session

1) Take necessary measures by April 1, 2009
2) Investigate measures for improving labor conditions while considering wage levels and otherconditions■ “Revised long-term care insurance law”
May 21, 2008

Unanimously approved in the Upper House plenary session(1) Obligation for long-term care service providers to improve service management
The following instructions to the providers shall be given by every local government.
・On-site inspection, business improvement administrative recommendation or order・Change from abolition notification to prior notification system
・Judgment about complicity(2) The service providers are obliged to secure services for users in abolishing the business.
Additional resolutions
1) Obligation for improving the service management system shall require improvement of thesupervisory system as well as avoiding excessive burdens on long-term care service providers.
2) Improvement of labor conditions for care workers shall be included in the next long-term care payment revision.
3) Consider how the taxation system revision may affect elderly households for the insurance payment calculation

Financial Results Briefing Document for the Year Ended March 20088

Health Care Business Revision of long-term care insurance law ②■ Review of long-term care insurance benefits
May 13 Estimation of long-term care insurance benefits to be restrained (see the following cases) waspresented by the Ministry of Finance to the Finance Council
・Cases where mild-level care users are excluded from the long-term care insurance benefits
・Cases where livelihood support benefit for mild-level care users is abolished.
・Cases where the self-pay burden ratio of mild-level care users is raised by 10 - 20%.

■ Revision of long-term care payment
December, 2007 Long-term Care Benefits Session of the Social Security Council
Study by working team to grasp the current situation of the long-term care service business
1) Method to evaluate the efforts leading to career-enhancement for workers
2) Workload3) Level of wages4) Standard for staff assignment, evaluation of long-term care payment, etc.

Financial Results Briefing Document for the Year Ended March 20089

Responding to a changing society with total long-term care service
Elderly
population(thousands)

60,00036,35050,000Accelerated increase in thenumber of the elderly aged
75 or older

40,00030,00025,7601.4 times

11,64021,6701.9 times

20,00010,0000

2005
Aged 75 or older

The ratio of the elderly aged 75 or overcertified as care levels 4 and 5

2025
Aged 65 to 74

Age-specific rate of certification (Jan. 2008)
People certified
as requiringlong-term care

Rate ofcertificationof care needs

14,760658

4.5％

thousandthousand

Population
Elderly
aged 65 to74
Elderly
aged 75 orolder

12,7003,779

thousandthousand

Total certified
people(1)Aged 75 or older(2)
Rate of the aged
75 or older((2)/(1))

29.8％

Care level
4

Care level
5

Total

585

524

1,109

thousandthousandthousand

490

436

926

thousandthousandthousand

83.9％

83.1％

83.5％

Responding to a changing society with total long-term care service
Financial Results Briefing Document for the Year Ended March 200810

Nichii’s total long-term care service<Completely cover all service infrastructures for users, including independent people and thoserequiring moderate to severe long-term care>

Nichii’s facility-care service

Nichii’s home care services

Level of long-term care required
Mild
SevereHome care
supportHelper station
tenant occupancy

Preventive care

Iris Garden(Rental housing
for elderly)Home-visit care
Care House

Home bathing
assist service

Day careGroup home
(Nichii Care Garden)

HohoemiPreventive care

Regional cooperation
Home nursing
stationEmergency
doctor visit

Emergency
Cooperating
hospitalization

hospital(Group home)

Facility Services(Jointly with other companies)
Antcare holdings
Special elderly nursing home
Health care facility
for elderlyHome

Kirameki(Pay nursing home withlonglong-term care)(Pay nursing homewith longlong-term care)Financial Results Briefing Document for the Year Ended March 2008

11

Otoen
(Pay nursing home withlonglong-term care)

Periodical
Home carehomesupportcliniccare*For cooperation, toppriority is to our users
entrusted with medical
clerk business

The revision of the medical treatment payment
Change in the revision rate for medical treatment payment (The main content ）2.5
2.0

The main content is revised for1.5

the first time in eight years.

1.0＋0.38％

0.5
0.0
1998

2000

2002

2004

2006

2008

-0.5
-1.0
-1.5

Six keywords of revision 2008
◆ Follow-up of previous revision ◆ Rearrangement of cooperative routes◆ Reduction of burdens on doctors
and promotion of earlier hospitalworking in hospitals
discharge◆ Reduction of financial resources of ◆ Foundation of benefits forlatter-stage elderly people◆ Evaluation of outcome after acuteclinics and small-and-medium-sizedstage
hospitals
Financial Results Briefing Document for the Year Ended March 2008

12

Economic trends and change in number of students
Unemployment rate and jobs-to-applicants ratio (Times)

GDP growth rates
Real GDP(year-to-year basis)

Unemployment
Rate (right)

Real GDP(quarter-to-quarter basis
in annual rate)
Source: Cabinet Office(Note) The periods in blue represents recession.
(Last updated: April 28)
Source: Nikkei NET(Person)Jobs-to-applicantsratio (left)

Source: Unemployment rate: Ministry of Internal Affairs and Communications
Jobs-to-applicants ratio:

Ministry of Health, Labor and Welfare(Note) The periods in blue represents recession.

Education BusinessChange in the number of students(Last updated: April 28)
Source: Nikkei NET

140000120000Home Helper
Level-2 Course

100000
80000
60000
40000

Medical OfficeWork Course

20000
0

97

(Seasonallyadjusted)

99

Financial Results Briefing Document for the Year Ended March 2008

01

03
13

05

07

Nichii supports training of care workers in Japan
Changes in share of home helper trainees(Thousand of people)
350
347
331
300
34.9％

317

34.3％
29.7％

27.2％

200

Responsibility as a leading
company in the industry

40％

237

31.6％

30％

100

20％
90
2002

121
2003

120

94

75

2004

2005

2006

Continue to foster humanresources in the longer
run

Total number of home helper trainees from level 1 to level 3 (Reference: National Commission on Social Security)
Total number of students enrolled in our classes of home-helper level 1 and 2

Estimated number of workers in the long-term care industry
2005 1,012 thousand people (of which care workers are 2,590 thousands)

2014

1,460 -1,560 thousand people

The figures were our estimation based on increase in the number of care service users.
(Reference: Documents of Ministry of Health, Labor and Welfare)
Financial Results Briefing Document for the Year Ended March 200814

Mid-Term Business Plan (FY2008-FY2011)（Billions of yen）

To two-digit growth trend in sales and profits again

350

300.0

300

25
20

250

199.8

17.5

200
150

15
10

100
5

2.1

50
0

0
FY2008FY2011■Net sales (Consolidated)■Operating income (Consolidated)

Point of growth strategy
Endeavors to securely achieve the sales profit goal for FY2011
Financial Results Briefing Document for the Year Ended March 200815

Mid-Term Business Plan
Nichii supporting Japan’s safety net
・Medical Support Business Support medical institutions under the universal health insurance system
・Health Care Business

Provide total services for long-term care insurance(Preventive care・Home care・Facility care）

・Education BusinessTrain and develop human resources for the universal health insurance and long-term careinsurance system

To be a leading company in human directly connected industry
Expand and improve services for each Medical Support Business, Health Care Business andEducation Business
Meet new needs of the public*Human directly connected industry ：Theme discussed in Council on Economic and Fiscal Policy

The human directly connected industry, covering service fields such as medical, health support, child care, long-term care life
support, education, movement, and community business, and the potential needs for such industry, are very high, so that this isdefined as a growth field. For just the medical and long-term care fields, the market scale and the number of employees for 2010
are expected to be about 75 trillion yen and about 7.5 million, respectively.

By supporting Japan’s safety net and meeting new needs, the Nichii, as the leading company, will aim to become a Number 1
company in the market for “Net sales,” ”Profits,” ”Product competitiveness” ”Employees’ working conditions,” and”Compliance.”
Financial Results Briefing Document for the Year Ended March 2008

16

Dividend
¥25

3.0%

DOE（％）

Dividend (Yen)
22.0

22.0

22.0

22.0

22.0

2.5%
¥20
17.5

2.0%
¥15

1.5%

1.5%

1.5%

1.5%

1.5%
1.5%

1.3%
¥10

1.0%
¥5

0.5%

0.0%

¥0

04/3

05/3

06/3

07/3

＊DOE・・・Ratio of dividends to shareholders' equity(Dividend payout ratio × ROE (Consolidated) )Financial Results Briefing Document for the Year Ended March 2008

17

08/3
(Plan)

09/3(Plan）

09/9 pay an interim
dividend

FY2008 Financial Result
FY2009 Forecast

Senior Executive Director（in charge of business promotion)

Daisuke Terada

Financial Results Briefing Document for the Year Ended March 2008

18

FY2008 Financial highlights and topics
Take over the facility care service in the Health Care Business,and construct a mid-term growth base
POINT 1

◆ Health Care Business first increase in revenue in 2 periods
Net sales: 79,702 million yen(1,429 million yen increase from the previous year)

POINT 2

◆ Cost-reduction in selling, general and administrative expenses
Down 7.4% year on year

POINT 3

◆ Non-consolidated result: First increase in profits in 4 periods
Operating income: 2,660 million yen(154 million yen increase from the previous year)

Financial Results Briefing Document for the Year Ended March 200819

Result of FY2008 (Consolidated/Non-consolidated)
Consolidated(Millions of yen)

FY2007 Result

FY2008 Result

YoY
Change％Operating income

202,549
2,635

199,797
2,171(2,752)
(464)

(1.4)
(17.6)

Ordinary income

2,709

2,042

(667)

(24.6)

774(834)(1,608)-Net sales

Net income

Non-consolidated
単独(Millions of yen)

YoY

Net sales
Operating income
Ordinary income
Net income

FY2007 Result

FY2008 Result

198,099
2,506
2,682
856

185,557
2,660
2,983
954

Financial Results Briefing Document for the Year Ended March 2008

20

Change(12,542)
154
301
98

％

(6.3)
6.2
11.2
11.5

FY2008 Performance factors
Non-operating income
349 million yen

Extraordinary income

POINT 1

327 million yen

Achieved our goal for operating income

POINT 2
Resulted in extraordinary loss due to postingof losses on revaluation of welfare
equipment

Non-operating
expenses-478 million yen

Extraordinary loss
1,275 million yen

POINT 3

Income, inhabitants and business taxes
491 million yen
Adjustments for income and other taxes
1,406
million yen
Total

Adjustments for income and other taxes
were increased due to adaptation ofamortization of goodwill into tax effectaccounting associated with the business
transfer.

1,897 million yen

Operating Income
2,171 million yen

Net loss -834 million yen

The bottom line was lowered due to posting of extraordinary loss
and adjustment for income and other taxes
Financial Results Briefing Document for the Year Ended March 2008

21

FY2009 Net sales and operating income by segment (Consolidated)(Millions of yen)

FY2007
ResultNet
Net sales
sales

YoY

FY2008Result%Medical Support Business

110,966

109,217(1.6)

Health Care Business

78,27279,702

1.8

Education Business

12,478

10,158(18.6)

Others

2,793

1,970

(29.4)

Elim inations(1,962)(1,251)-

Total

202,549

199,797(1.4)(Millions of yen)

OperatingOperating
FY2007
ResultincomeincomeYoY

FY2008Result%Medical Support Business

10,824

10,700(1.1)

Health Care Business

1,820

190

(89.5)

Education Business(1,709)(1,793)

-

254

215

(15.4)(8,555)(7,139)(16.5)

2,635

2,171

(17.6)

OthersElim inations
Total

Financial Results Briefing Document for the Year Ended March 2008

22

FY2008 Financial conditions by quarter (Consolidated）
Consolidated

Net sales began to increase in the 2nd quarter

Net sales
Operating income
Ordinary income
Net income

1Q
51,096260
308
49

FY2007
2Q
3Q
51,11550,954
1,068
763
1,063
788
435
417

FY20084Q
49,384
544
550
(127)

The number of consolidated subsidiaries
FY20082Q:

6 companies

3Q:

7 companies

4Q: 10 companies

Financial Results Briefing Document for the Year Ended March 2008

23

1Q
48,624
229
262
2

2Q
48,077
651
704
11

3Q
50,622
916
965
263

4Q
52,377304
69(1,126)

Financial conditions by segment (consolidated)
FY２００７
1Q
Medical Support Business
Health Care Business
Education Business
OthersEliminations

Net sales
Medical Support Business
Health Care Business

Education BusinessEliminations
Operating income

1Q

4Q

3Q

2Q

4Q

27,623 27,702 27,942 27,699 27,475 27,470 27,382 26,890
19,778 19,917 19,783 18,794 18,131 17,862 20,622 23,087
3,471
3,279 2,992 2,736 2,856
2,545 2,432
2,325
1,029
667
621
476
463
502
560
445
(806)
(451) (384)
(321)
(301)
(303) (375)(272)
51,0962,424

51,115 50,954 49,384 48,624
2,747
2,656 2,997 2,405

8.8%

9.9%

9.5%

10.8%

8.8%

265

800

532

223

238

1.3%

4.0%

2.7%

1.2%

1.3%

(315)

(325)

(605)

(464)

(351)

(9.1)%(9.9)%(20.2)%(17.0)%(12.3)%

48,077 50,622 52,474
2,711 2,625
2,959
9.9%

9.6%

11.0%

203

1

(252)

(1.1)%(0.0)%(1.1)%

(469)

(372)

(18.4)%(15.3)%(601)(25.8)%

7

169

39

43

(22)

164

30

3.8%

1.0%

27.2%

8.2%

9.3%

(7.3)%(29.3)%(6.7)%(2,153)(2,160)(1,990)(2,252)(2,107)

260

1,068

763

544

39

Others

0.5%

POINT

3Q

2Q

0(Millions of yen）

FY２００８

2.1%

1.1%

1.5%

(1,771) (1,501) (1,760)
229
651
916
375
0.5%

1.4%

(1) Medical Support Business
While the number of contracts was squeezed, profits were maintained.
(2) Health Care Business
Sales bottomed out in the 2nd quarter and profits bottomed out in the 4th quarter.
(3) Education Business
While the fall in revenue continued, costs were restrained.

Financial Results Briefing Document for the Year Ended March 2008

24

1.8%

0.7%

Medical Support Business Result of FY2008
Consolidated

Non-consolidated(Millions of yen)
Change(Millions of yen)

Change(%)

FY2007

FY2008Net sales

110,966

109,217(1,749)(1.6)

Operating
Income10,824

10,700

(124)

(1.1)

Operatingincomemargin(%)

9.8

9.8

-

-

FY2008ChangeNet sales

110,609108,879(1,730)(1.6)

Operating
Income

5,962

6,417

455

7.6

Operatingincomemargin(%)

5.4

5.9

-

(Case)(Millions of yen)
FY2008Change-Contractual medical facilities

Home care Net sales by service
FY2007

Change(%)

FY2007

2007/3

Change (%)

2008/3

ChangeChange (%)

Hospitals

91,881

91,351

(530)

(0.6)

Hospitals

2,368

2,204

(164)

(6.9)

Clinics

18,727

17,527(1,200)(6.4)

Clinics

10,746

10,232

(514)

(4.8)

Total

110,609108,879(1,730)

(1.6)

Total

13,114

12,436

(678)

(5.2)

Financial Results Briefing Document for the Year Ended March 200825

Medical Support Business Our approach in FY2008
Change in net sales per hospital

PursuePursue profit-oriented
profit-oriented strategy
strategy(Thousand of yen)

Expand contract services per medical institution

4,000
3,800
3,600

・Acquire contracts for new businesses

3,927
3,836

3,490

3,400

・Acquire short-term contracts

3,200 FY2006

FY2007

FY2008

Expanding
Expanding businessbusiness support
support service
serviceObligatory online receipts processing

Develop and supply “Receipt Check Eye” which
systematizes the know-how of medical service payment
systemDeal with increased patients in medical
institutions

Develop and supply “Marketing Eye” which analyzes theability of local medical institutions to attract customers（Marketing Service）

Promote cooperation between medical and long-termcare services through the “Community Care System
Improvement” in each prefectures

Financial Results Briefing Document for the Year Ended March 2008

Develop a “Map for medical, care and welfare services”

26

Health Care Business Result of FY2008
Consolidated

Non-consolidated(Millions of yen)
ChangeChange(%)(Millions of yen)

FY2007

FY2008ChangeChange(%)

FY2007

FY2008Net sales

78,27279,702

1,430

1.8

Net sales

75,011

66,519(8,492)

Operatingincome1,820

190(1,630)(89.6)

Operatingincome(1,206)(1,569)

(363)

-

-

Operatingincomemargin(%)

(1.6)

(2.4)

-

-

Operatingincomemargin(%)

2.3

0.2

-

(Non-consolidated) Home care(Non-consolidated) Home care

Net sales by service

Users by service(Millions of yen)

FY2008ChangeHome-visit
care service

40,45337,849(2,604)(6.4)

Day care service

14,25615,301

1,045

7.3

Sales and rentalof welfare

10,501

6,032(4,469)(42.6)

Others

9,801

7,337

(2,464)

Total

75,011

66,519(8,492)Financial Results Briefing Document for the Year Ended March 2008

(Case)

Change(%)

FY2007(11.3)

2007/3Care planning
serviceHome-visit
care service

2008/3

ChangeChange(%)

34,44332,916(1,527)(4.4)

61,877

61,193

(684)

(1.1)

Day care service

17,33817,600262

1.5(25.1)

Sales and rentalof welfare

26,29423,999(2,295)(8.7)(11.3)

Total

105,509102,792(2,717)(2.6)

27

Health Care BusinessOur approach to Home Care Business
Number of preventive care services(1) Expand Preventive Care Services

23,000・Revise our program based on the actual data of preventive effects

22,00022,52721,000・Care center numbers: 839 (As of March 2008)

21,69220,00019,000(2) Expand welfare services for the disabled・Expansion of care centers nationwide: app. 730

18,000(Millions of yen)・Pursue to expand services

1,000
10

(3) Seek to acquire contracts for our regional
support business・Number of contracts in FY2007: 124

8008
6006

19,940

仮

07/3

07/9

Welfare services for the disabled

売上高
拠点数

Net sales
Number of facilities

670

820

07/3

08/3

500

4004
2002
00

Acquire potential users for services using long-term care benefits(Provide long-term services to our clients)

Financial Results Briefing Document for the Year Ended March 2008

08/3

28

0

Health Care Business Financial Condition of Home Care Business
Acquired companies P/L（3rd quarter of FY2007）
Nichii no
HohoemiNet sales

Nichii no
Kirameki

Nichii Home

Nichii
Care Palace

Total

1,966

458

394

5,528

8,383

Operating income (loss)

(11)

(199)

(94)

(377)

(682)

Operating incom e (loss) m argin (%)(0.6)(43.4)(23.9)

(6.8)

(8.1)

Ordinary income (loss)

(56)

(216)

(120)

(454)

(848)

Acquired companies; Two months (November and December in 2007)
Nichii Care Palace Co., Ltd. ; Six months (from September to December in 2007)

Factors in our operating loss

Number of residences at facilities【居住系施設入居者数推移】

6,400(1) Amortization of goodwill
Amortization of goodwill of the four companies during FY2008:

6,300

214 million yen(2) Costs for rent of in-progress facilities were generated
All facilities in progress will open by July 1.

(3) Sales force temporarily lowered by taking over the business

Financial Results Briefing Document for the Year Ended March 2008

29

6,326

6,200
6,100

(16 of which opened by May 1)

Steady increase ofresidences

6,000

6,126
07.11末
07/11

08.3末
08/3

Education Business Result of FY2008

Consolidated

Non-consolidated(Millions of yen)

FY2007

FY2008ChangeChange(%)

Net sales

12,478

10,158(2,320)(18.6)

Operatingincome(1,709)(1,793)(84)

Operatingincomemargin(%)(13.7)(17.7)-(Millions of yen)

FY2007-

FY2008Net sales

12,478

10,158(2,320)Operatingincome(2,250)(2,187)

63

Operatingincome margin(%)(18.0)(21.5)Net sales by course(Millions of yen)

FY2007

FY2008ChangeChange(%)

Medical Office Work

5,500

5,022

(478)

(8.7)

Home Helper Level-2

5,754

4,292

(1462)(25.4)

Babysitter and Others

1,224

844

(380)

(31.0)

Total

12,478

10,158(2320)(18.6)

Financial Results Briefing Document for the Year Ended March 2008

30

Change-Change(%)(18.6)-

Education BusinessOur approach in FY2008(Millions of yen)

(1) Promote effective class management

7,000

・Increase the number of students per class

6,000

・Conduct effective class management

Changes in educational costs
6,598
5,963
5,120

5,000

under the Specialized Branch System

4,000(2) Promote efficient advertisement

（％）

100
80
in the past
60
・Focus advertisements on a month when classes start40
and the attendance are very high20
・Promote the effective commercial on TV with high responsiveness
0

FY2006

FY2007

FY2008Change in recognition of “Nichii”
corporate brand・Place advertisements in the media with a good response

88

81
66

58

30% up from 06/5
06/5

06/11

07/5

07/11

(3) Develop new courses
・Develop courses to meet needs in medical and long-term care service fields→ Nurse Assistant Training Course (starting in September)・Develop livelihood support-related courses→ Mental Training Course (starting in February)
Financial Results Briefing Document for the Year Ended March 200831

Education Business Trend of qualifications of care workers
Qualifications of care workers under the long-term care insurance system＜National Certification＞

Care workers

Care Workers’ Basic Course

Home-Visit Care Worker （Home Helper）
Training Course Level 1

To be integrated into
Care Workers’ Basic
Course in 2012.
Home Helper Level 2

Home-Visit Care Worker （Home Helper）
Training Course Level 2
Home-Visit Care Worker （Home Helper）
Training Course Level 3

qualification is maintained
due to secure care workers.
To be excluded from thelong-term care payment
calculation in 2009.

Source: Documents of Ministry of Health, Labor and Welfare
Financial Results Briefing Document for the Year Ended March 200832

Forecast of FY2009

Financial Results Briefing Document for the Year Ended March 2008

33

FY2009 Forecast (Consolidated/Non-consolidated)
Consolidated

Net sales
Operating income
Ordinary income
Net income(Millions of yen)

FY2008 Result

FY2009 Forecast

199,797
2,171
2,042
(834)

222,000
3,140
2,720
50

YoY
Change％22,203
969
678
884

11.1
44.6
33.2
-

Non-consolidated(Millions of yen)

Net sales
Operating income
Ordinary income
Net income

FY2008 Result

FY2009 Forecast

185,557
2,660
2,983
954

185,500
4,700
5,140
2,730

Financial Results Briefing Document for the Year Ended March 2008

34

YoY
Change

(57)
2,040
2,157
1,776

％

0.0
76.6
72.3
186.0

Forecast of net sales and operating income by segment (Consolidated)(Millions of yen)

Net sales
FY2008FY2009YoY

ResultForecast％

Other
Eliminations

109,21779,702
10,1581,970(1,251)

104,400
105,400
11,5002,000(1,300)

(4.4)
32.2
13.2
1.5
-

Total

199,797

222,000

11.1

Medical Support Business
Health Care Business
Education Business

Operatingincome(Millions of yen)

FY2008FY2009YoY

ResultForecast％

10,700190(1,793)215(7,139)2,171

Medical Support Business
Health Care Business
Education Business
Other
Eliminations

Total
Financial Results Briefing Document for the Year Ended March 2008

35

9,600
700
(900)
200
(6,460)3,140(10.3)
268.4
(7.0)
44.6

Medical Support BusinessOur approach in FY2009

Establish a solid business base aimed to enforce mid- and long-term profitability(1) Maintain a profit-oriented strategy(2) Invest in human resources

・Increase the net sales per hospital・Improve the stability of the workforce

・Further review the contracts (Select and focus)

with the better working conditions
・Recruit workers through the Web site(3) Expand the management
support service

・Foster highly-skilled staff

Provide the high-value-added service responding to the new system
Additional payment to the doctor assistant office worker
General hospitals, excluding special functioning
hospitals (app. 7,700 institutions)

Healthcare system reforms implemented in April 2008
Community Care System Improvement
・Development of infrastructure for decrease in thenumber of beds for medical treatment

Requirements:(1) Contract of dispatched worker

・Cooperation between medical institutions andlong-term care facilities(2) Prohibition of dual employment(neither full-time nor part-time)

Obligatory online receipts processing by 2011

Develop and market new products that match the new system

Expand temp staff business・Enhance sales of receipt check system Receipt Check EyeStrengthen the staff support system

・Develop and supply marketing service Marketing Eye

Financial Results Briefing Document for the Year Ended March 200836

Health Care BusinessOur approach in FY2009- Stabilize profits Home care services
・Improve operation efficiency per care worker

Promote cooperation between home care and・Expand our regional support business and the disabledfacility care services

independence support services(1) Improve ability to attract

・Improve customer satisfaction

and retain care workers

・Strengthen the management of income and expenditures(2) Attract more customers
through one-stop service

Facility care services(3) Expand non-insured pay services

・Improve operation efficiency at newly launched facilities
・Promote rearrangement of facilities operations within the group

Enhance competitiveness・Improve customer satisfaction
・Strengthen the management of income and expenditures

Livelihood support service market position

Promote livelihood support services

Elderly
Our target

Healthconcern・Promote homemaker services especiallyYes

for the elderly.

None（Acquire potential users of long-term care services）
Youth

Financial Results Briefing Document for the Year Ended March 2008

37

Other companies
targetEducation BusinessOur approach in FY2009

Quantitative expansion of Education Business・Aggressively promote the related courses tailored to the trend of care worker qualification
・Promote group-based courses
・Develop new courses adapted to the site’s needs and health related course

Ability to supply human resources
・Promote cooperation between branches for Medical Support Business and branches for
Health Care Business・Promote helper internal instructors and promote periodic training for medical office work
instructors
・Aggressively hold recruiting orientations

Profit improvement
・Promote an increase in the number of students per class・Promote group-based courses
・Earlier switch training facilities run by other companies to our own facilities
Financial Results Briefing Document for the Year Ended March 200838