www.nichiigakkan.co.jp

NICHII GAKKAN COMPANY
For the First Half of the YearEnding March 2012 (FY2012)

Financial Results Briefing Document
November 8, 2011

Contents

1. 1H FY2012 Overview of Financial Results1) 1H FY2012 financial results2) Overview of 1H FY2012
3) 1H FY2012 net sales and operating income by business
4) Factors of changes in net sales and operating income5) 1H FY2012 financial results by business

P4
P5
P6
P7
P8 – P11

2. FY2012 Forecast
1) FY2012 forecast
2) Key points in the FY2012 forecast
3) FY2012 forecast: Net sales and operating income by business
4) Major reasons for the revisions of forecast
5) FY2012 forecast by business
6) Management strategy

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

P13
P14
P15
P16
P17 – P24
P25

1H FY2012 Financial Results Briefing Document

1

Information Meeting of
Financial Reportfor the First Half of the Year
２０１
２年３月期中間決算説明会
Ending March 31, 2012
株式会社ニチイ学館
Masatoshi Saito
President and Representative Director

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

1H FY2012 Financial Results Briefing Document2

Information Meetingof Financial Reportfor the First Half of the YearEnding March 2012

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

1H FY2012 Financial Results Briefing Document

3

1H FY2012 financial results
Consolidated
Consolidated(Million y en)

1H FY2012

1H FY2011
ResultNet sales
Operating income%

Ordinary income%

Net income%<Reference>
Com prehensive
Incom e%Copyright © 2011 Nichii Gakkan Company. All rights reserved.

Result119,623
3,401
2.8%

3,727
3.1%

1,329
1.1%

1,207
1.0%

YoY

123,342

Beginning of
Period Forecast

3.1%

123,700

4,902 44.1%

3,600

4.0%

2.9%

4,855 30.3%
3.9%

3,500
2.8%

2,208 66.2%
1.8%

1,400
1.1%

2,233 85.0%
1.8%
1H FY2012 Financial Results Briefing Document

4

Overview of 1H FY2012 – Summary of financial result 1. Another record-high of 1H net sales
1) Net sales reached another record high (4 consecutive years).
Æ ¥123,342 million (+3.1% year on year)
2) Performance of the mainstay Medical Support and Health Care businesses is trending upward.
3) The impact of the earthquake on the Group’s performance is limited.

2. Three consecutive years of higher profits
1) Operating income: The 3rd highest of ¥4,902 million (+ 44.1% year on year)
Significantly increased because operational efficiency of mainstay businesses
improved.
Operating income Operating income
2) Ordinary income: ¥4,855 million (+30.3% year on year)of 1H FY2004
of 1H FY2003
3) Net income:¥2,208 million (+66.2% year on year)¥6,644 million¥5,551 million

3. Strengthening of group management capabilities
1) Transition to the new executive management system
2) Making of GABA Corporation into a consolidated subsidiary as of Sept. 29, 2011 via TOB
3) Beginning of preparations by Nichii Carenet Co., Ltd. to develop business in China
4) Profitability at Nichii Care Palace Co., Ltd. for month of June

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

1H FY2012 Financial Results Briefing Document

51H FY2012 net sales and operating income by business
Consolidated net sales(Million yen)
1H FY2012
1H FY2011 Result

51,223
61,177
7,076
805
(660)
119,623

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

Result51,44465,914
5,900
659
(576)
123,342YoY (%)

0.4%
7.7%(16.6)%(18.2)%
3.1%

Consolidated operating income

Beginning of Period
Forecast

51,70065,600
6,100
800
(500)
123,700(Million yen)

1H FY2012
1H FY2011 Result

Medical Support Business
Health Care Business
Education Business
Other Businesses
Elim inations
Total
Copyright © 2011 Nichii Gakkan Company. All rights reserved.

2,951
3,102
1,043
5
(3,700)3,401

Result

3,884
4,758
358
(250)
(3,847)
4,902

YoY (%)

31.6%
53.4%
(65.7)%
44.1%

Beginning of Period
Forecast

3,200
4,100
400
(100)
(4,000)3,600

1H FY2012 Financial Results Briefing Document

6

Factors of changes in net sales and operating income
Net sales

Home care approx. +¥3.2 billion
Facility care approx. +¥1.5 billion

Hospitals approx. +¥0.6 billion
Clinics
approx. -¥0.4 billion

Medical Support

Health Care
+4,736

Medical Administration course
Home Helper course

Education-1,176

Other

-146

approx. -¥0.8 billion
approx. -¥0.3 billion(Million yen)
Eliminations
+84

+220

123,342
119,623+¥3,718 million (3.1%) year on year

1H FY2011

1H FY2012

OperatingincomeHealth Care
+1,655

Education-685(Million yen)

Other

-255

Eliminations-147

Medical Support

+933

3,401
1H FY2011
Copyright © 2011 Nichii Gakkan Company. All rights reserved.

4,902+¥1,500 million (44.1%) year on year
1H FY2012
1H FY2012 Financial Results Briefing Document

7

Medical Support Business
Consolidated
Consolidated

Net sales

1H FY2012 results

Operating income （Million yen）

51,444+0.4%

51,2233,884+31.6%

2,951

1H FY2011

1H FY2012

1H FY2011

Clinics

1,946
1,918

+1.5%

End-Sep. 2010

End-Sep. 2011

8,494

Contract revision strategy beginning to pay off
in 4th year of implementation◆Expanded net sales to hospitals• Upward trend in net sales maintained throughexpanded business with hospitals under contract• Signing of new contracts promoted primarily withprivate hospitals
Æ Hospitals under contract grew by 28

1H FY2012

NumberNumber ofof contracted
contracted medical
medical institutions
institutions
Hospitals

Overview of financial results for 1H FY2012(Cases)

8,305
-2.2%

◆Improved operational efficiency• Continued increases in staff compensation• Increased profitability through operational efficiency
improvements
Æ Operating income: +¥933 million (31.6%) year on
year◆Expanded management support services• Expanded the “cyber clerk” and other management
support services• Began offering the “Medi-Antenna” medical caremarket survey service and other services

End-Sep. 2010

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

End-Sep. 2011
1H FY2012 Financial Results Briefing Document8

Health Care Business
Consolidated
Consolidated

Net sales

1H FY2012 results

Operating income （Million yen）

Overview of financial results for 1H FY2012◆Status of home-care and facility-care services

65,914

4,758

+7.7%

+53.4%

61,1773,102
Of which,
uninsured services¥5,321 million

Of which,
uninsured services¥622 million

・Usage of home-care services
Home-care services: +6.6% from Sep. 30, 2010
Care plan:+8.4% from Sep. 30, 2010
・Facility-care services openings and usage status
Opened 20 new facilities during the first half, bringing
the total to 320
Usage rate of 93.3% comparable to last year
(94.5% as of Sep. 2010)◆New openings of primary service facilities
Care plan

1H FY2011

1H FY2012

1H FY2011

Numberof
Numberof users
users byby service
service
NumberNumber ofof
HospitalscareHome care
Facilityusers
users byby service
service

1H FY2012

Home-visit
Day-careClinics(Cases)(Cases)HohoemiKirameki
Nichii Home

133,573

8,780

+6.7%

+7.4%

125,244

End-Mar. 2011

End-Sep. 2011

694
1,022
294
217
34
48

717 (+23)
1,043 (+21)
304 (+10)233 (+16)
38 (+4)48 (±0)◆Status of services not covered by insurance
・Users of welfare services for the handicapped:+31.4% from Sep. 30, 2010

8,172

◆Status of home-visit nursing care services

End-Sep. 2010

End-Sep. 2011

End-Sep. 2010

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

End-Sep. 2011

・Opened 16 new facilities during the first half, bringing the total
to 18
Æ Developing services that will strengthen ties between
medical and nursing-care communities and increase customer
satisfaction
1H FY2012 Financial Results Briefing Document

9

Health Care Business 1H FY2012 results – Facility care service –(Million yen)

1Q

FY2011
2Q

First half

1Q

2Q

ResultResultResultResultResultHohoemi

4,266

4,416

8,683

4,645

4,834

9,500

9,479

Kirameki

1,622

1,653

3,276

1,732

1,828

3,600

3,560

Nichii Home

3,688

3,816

7,505

3,912

4,028

8,000

7,940

9,578

9,885

19,464

10,29010,69021,10020,980

Hohoemi

557

647

1,204

735

845

1,300

1,580

%

13.1%

14.7%

13.9%

15.8%

17.5%

13.7%

16.7%

Kirameki

165

202

367

189

214

400

403

%

10.2%

12.2%

11.2%

10.9%

11.7%

11.1%

11.3%

Nichii Home

116

162

278

244

310

550

554

%

3.1%

4.2%

3.7%

6.2%

7.7%

6.9%

7.0%

Gross profit

839

1,011

1,850

1,168

1,369

2,250

2,539

%

8.8%

10.2%

9.5%

11.4%

12.8%

10.7%

12.1%

Net sales

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

FY2012First half
Beginning of
Period Forecast

Result1H FY2012 Financial Results Briefing Document

10

Education Business
Consolidated
Consolidated

Net sales

1H FY2012 results
Operating income （Million yen）

Overview of financial results for 1H FY2012◆The number of students of the two main courses

7,076

・Home Helper Level 2 course:
31,901 students (-12.0% year on year)
・Medical Administration course:
20,056 students (-20.0% year on year)

1,043

5,900
-16.6%

358-65.7%

1H FY2011

1H FY2012

1H FY2011(Students)

NumberNumber ofof students
students byby course
courseHome Helper Level 2 course

Medical Administration course

36,26925,061

31,901-12.0%

1H FY2011

1H FY2012

1H FY2012

20,056-20.0%

1H FY2011

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

◆Further develop Web College (e learning course)
・Began offering 12 new courses in September(bringing total to 72 courses)◆Aggressively moved ahead with efforts to win job
training program contracts
・Actively pursued contracts of job training programs by publicbodies and Human Resources Development Assistance
Program (such as the government’s support program “Studyand obtain a qualification as a care worker while working at
long-term care facilities” and the subsidized job trainings)◆Made GABA Corporation into a subsidiary
・Acquired 96.59% of the issued and outstanding shares via
TOB and other means
・Made GABA Corporation into a consolidated subsidiary as of
September 29, 2011

1H FY2012
1H FY2012 Financial Results Briefing Document11

FY2012 Forecast

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

1H FY2012 Financial Results Briefing Document12

FY2012 forecast

Consolidated
Consolidated(Million yen)
FY2012FY2011
AmountNet sales
Operating income%

Ordinary income%

Net income%

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

240,827
7,868
3.3%

9,660
4.0%

3,478
1.4%

Revised Forecast

YoY (%)

Beginning of Period Forecast

253,700

5.3%

250,000

11,000 39.8%

9,000

4.3%

3.6%

11,700 21.1%
4.6%

3.7%

5,700 63.9%
2.2%

9,300
4,500
1.8%

1H FY2012 Financial Results Briefing Document

13

Key points in the FY2012 forecast
1. Another record-high sales
Net sales to be reached record high: ¥253,700 million (+5.3% year on year）
Health care
¥ 134,300 million (+8.0% year on year)
Medical support¥ 103,700 million (+0.5% year on year)

2. Three consecutive years of higher operating income, revised upwards of the
beginning of period forecast¥11,000 million (+39.8% year on year)
Helped by a remarkable profitability improvement in mainstay businesses

3. Strengthening of group management capabilities
1) Profitability at Nichii Care Palace Co., Ltd.
2) GABA Corporation slated to become a wholly owned subsidiary via share exchange
Results contribution for FY2012: Net sales of approx. ¥4,300 million, operating
income of approx. ¥400 million
3) Nichii Carenet Co., Ltd. planning to establish a new company in China in January
2012 to develop a care equipment wholesale business

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

1H FY2012 Financial Results Briefing Document14

FY2012 forecast: Net sales and operating income by business
Consolidated net sales(Million yen)
FY2012 Forecast
FY2011 Result

Medical Support Business

Health Care Business

Education Business
Other Businesses
Eliminations

Total

103,227
124,321
12,907
1,642(1,271)
240,827

Revised Forecast

103,700
134,300
15,7001,300(1,300)253,700

YoY (%)

Beginning of Period
Forecast

0.5%
8.0%
21.6%
(20.8)%
5.3%

104,300
133,400
12,0001,500(1,200)250,000

Consolidated operating income(Million yen)
FY2012 Forecast

FY2011 Result

Revised Forecast
Medical Support Business

Health Care Business

Education Business
Other Businesses
Eliminations

Total
Copyright © 2011 Nichii Gakkan Company. All rights reserved.

7,042
6,500
1,596
(68)
(7,201)
7,868

YoY (%)

8,400
19.3%
9,700
49.2%
1,000 ( 37.4)%(400)(7,700)11,00039.8%

Beginning of Period
Forecast

7,400
8,500
900
(100)
(7,700)9,000

1H FY2012 Financial Results Briefing Document15

Major reasons for the revisions of forecast
Net sales

Reasons for the revisions

Differences

Medical support

Emphasis on improving profitability of
hospitals leading to lower net sales-¥600 million

Health care

Solid increases in users of home-careand facility-care services+¥900 million

Education

Addition of GABA as a consolidated subsidiary: +¥4,300 million
Decline in mainstay course enrollment：-¥600 million+¥3,700 million

Others, and elimination

Decrease in transactions with subsidiaries, etc.

-¥300 million

Operating income

Medical support

Better operational efficiency, increases
in staff compensation+¥1,000 million

Health care

Higher facility usage rate and addition of
new facilities+¥1,200 million

Education

Addition of GABA as a consolidated subsidiary: +¥400 million
Decline in mainstay course enrollment：-¥300 million+¥100 million

Others, and elimination

Increase in promotion expenses for Nichii
Green Farm Co., Ltd., etc.

-¥300 million

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

1H FY2012 Financial Results Briefing Document

16

Medical Support Business FY2012 forecast
Consolidated
Consolidated

Net sales

104,300

Operating income （Million yen）

103,700

8,400+19.3%+0.5%

103,2277,400

FY2011

Beginningof period
forecast

Revisedforecast

FY2012

NumberNumber ofof contracted
contracted
medicalmedical institutions
institutions

FY2011

Hospitals

8,644
2,000

Revisedforecast

FY2012Clinics(Cases)

8,400
-2.8%

+2.3%

1,955
Revisedforecast

End-Mar. 2011

End-Mar. 2012

◆Continue pursuing contract revision
strategy・Strengthen sales efforts to increase net sales per
hospital・Continue to increase staff compensation

7,042

Beginningof period
forecast

Major issues from now through FY2012◆Gain new contracts
・Continue efforts to gain new contracts, primarily withprivate hospitals
・Pursue focused sales efforts by establishing highpriority markets◆Strengthen medical management support
system・Develop new management support services andenhance functionality
・Promote international medical exchange services
・Strengthen ties with long-term care business

Revisedforecast

End-Mar. 2011

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

End-Mar. 2012
1H FY2012 Financial Results Briefing Document

17

Health Care Business
Consolidated
Consolidated

Net sales

FY2012 forecast

Operating income （Million yen）

134,300

9,700

+8.0%

124,321+49.2%

133,400

Major issues from now through FY2012◆Further enhance home-care and facility-careservice・Actively expand service facilities
・Increase service facility productivity and pursue higher usage
rate

8,500
6,500

Care plan

FY2011

Beginning Revisedof period
forecast
forecast
FY2012FY2011

Beginning Revisedof period forecast
forecast
FY2012Home-visit
Day-careHohoemiKirameki

NumberNumber ofof users
users byby service
service
Home care
Facility care

Nichii Home*(Cases)136,900
+5.5%

9,180

129,733

8,348+10.0%

End-Mar. 2011

End-Mar. 2012 (Forecast)

694
1,022
294
217
34
48

747 (+53)
1,085 (+63)
328 (+34)
241 (+24)
43 (+9)49 (+1)*As of End-Dec. 2011 (Plan)◆Expand uninsured services
・Enhance efforts to develop welfare services for thehandicapped and homemaker services
・Prepare for the commencement of dog therapy services
Æ Delivery of added value to users of the Company’s
long-term care facilities◆Actively advance home-visit nursing care service
Revisedforecast

End-Mar. 2011

End-Mar. 2012

Revisedforecast

End-Mar. 2011

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

End-Mar. 2012

・Strengthen development of home-visit nursing care services
Æ Five offices to be decided to open during the second half
FY2012◆Preparations to develop a care equipment
wholesale business in China
1H FY2012 Financial Results Briefing Document

18

Health Care Business

FY2012 forecast – Facility care service –(Million yen)

FY2011First half
Full year

First half

ResultResultResultHohoemi

8,683

17,6409,479

19,20019,400Kirameki

3,276

6,594

3,560

7,400

7,400

Nichii Home

7,505

15,471

7,940

16,50016,40019,46439,70520,98043,10043,200

1,204

2,467

1,580

2,500

3,100

%

13.9%

14.0%

16.7%

13.0%

16.0%

Kirameki

367

716

403

800

700

%

11.2%

10.9%

11.3%

10.8%

9.5%

Nichii Home

278

838

554

1,600

1,600

%

3.7%

5.4%

7.0%

9.7%

9.8%

1,850

4,021

2,539

4,900

5,400

9.5%

10.1%

12.1%

11.4%

12.5%

Net sales
HohoemiGross profit%
Copyright © 2011 Nichii Gakkan Company. All rights reserved.

FY2012
Full year
Beginnin of Period
Revised Forecast
Forecast

1H FY2012 Financial Results Briefing Document

19

Health Care Business

Nichii Carenet’s business development in China■Growth trend for population 65 and older■Long-term care environment in China(10,000s of people)
45,000Aging society

Low awarenessof long-term care

Lack ofcare workers

Lack of service
infrastructure

Japan
China

40,000

Outlook of 2050
China:
400 million
Japan: 37.64 million

35,00030,000■China’s policy on aging

25,00020,000Chinese Government’s 12th Five-Year Plan (covering 2011-2015)
1) Increase the number of people employed in elderly care by 50 million
2) Double the number of beds in long-term care facilities to 6 million

15,00010,000
5,000
0
1980

1985

1990

1995

2000

2005

2009

2020

2050

New care equipment wholesale company to be established in China in January 2012
■ Company overview
Name

Yet-to-be-determined

Establishment

January 2012 (scheduled)Paid-in capital

10 million Yuan (approx. ¥120 million)

Investment
sharesNichii Care Net

Headquarters

Shanghai

80%
Changzhou Zhongzin Mecical Equipments 20%

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

■Overview of new company establishment

Nichii CarenetCo., Ltd.

100%
investment

New
company

Sale ofwholesale
operations

Changzhou Zhongjin
Medical Equipments
Co., Ltd.

Sell 20% of shares

The sales network of Changzhou Zhongjin Medical Equipments will be put to workin developing a general care equipment wholesaling business in China, andpromote the adoption of high-quality care equipment.

First step in developing business in China for the Nichii Group
1H FY2012 Financial Results Briefing Document

20

Education Business
Consolidated
Consolidated

Net sales

FY2012 forecast
Operating income （Million yen）

15,700◆Enhancement of existing courses+21.6%

12,907FY2011

1,596
1,000

12,000

Beginningof period
forecast

Revisedforecast

FY2012FY2011

67,192900-37.4%

Beginningof period
forecast

Revisedforecast

・Revamp the Medical Administration course
・Strengthen development of the Medical Administrator
course◆Development of new courses

FY2012(Students)

NumberNumber ofof students
students byby course
courseHome Helper Level 2 course

Major issues from now through FY2012

・Develop new courses that meet employment and careerdevelopment needs◆Preparations to develop language courses together
with GABA
・Plans call for development of courses making effective use of
Web College and the Company's classroom and otherresources

Medical Administration course◆Redoubled efforts to develop Web College(e-learning) services
61,200-8.9%

43,63837,700-13.6%・Enhance course offerings(5 new courses to start in the second half)・Develop and actively promote various training courses◆Efforts to win more job training program contracts
Revisedforecast

FY2011FY2012

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

Revisedforecast

FY2011・Actively pursue contracts for job training programs provided bypublic bodies
・Actively pursue contracts under the job-seeker support system

FY2012
1H FY2012 Financial Results Briefing Document

21

Education Business

Addition of GABA Corporation as a subsidiary (1) — Company Overview —■ Business activities:

Operation of English conversation schools specializing in one-on-one
instruction (Separate courses for adults and children)
Dispatch of instructors for English conversation lessons■ Representative:

Bruce Anderson,

President, Representative Director, and CEO*To be assigned in December 5, 2011

■ Employees:

410 (As of End-Jun. 2011)■ Learning studios:36 *29 in Kanto, 2 in Chubu, and 5 in Kansai (As of Sep. 30, 2011)■ Growth potential:

With developments like the adoption of English as the official language
for business by some Japanese companies and the education policy
decision to begin teaching English to schoolchildren at a younger age,
there is growing demand for foreign language education and it isexpected that the market for one-on-one English conversation lessons
will continue to grow steadily■ Reference:
Net sales

Operating income

Ordinary income

Net income

Year ending Dec. 2011 (Forecast)¥8,350 million¥1,360 million¥1,420 million¥830 million

Year ended Dec. 2010

¥7,751 million¥1,063 million¥1,120 million¥596 million

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

1H FY2012 Financial Results Briefing Document22

Education Business Addition of GABA Corporation as a subsidiary (2) — Highlights —■ Overview of process to make GABA a subsidiary- Acquisition price: Approx. ¥10,100 million (actual as of September 30, 2011)
TOB to acquire common shares and share options- Goodwill
Goodwill: Approx. ¥8,800 million (actual as of September 30, 2011)
Amortization period: 11 yrs. (approx. ¥800 million per year)- Financing
Up to ¥10,100 million in loans and other settlement financing will be obtained from Bank of TokyoMitsubishi UFJ.
- Schedule: GABA will be made into a wholly owned subsidiary, via share exchange, on December 5, 2011
- Anticipated contributions to business results
GABA is expected to begin contributing to business results from the second half (October 2011 toMarch 2012), including net sales of approx. ¥4,300 million and operating income of approx. ¥400
million (after goodwill amortization).

■ Contributions to the Company's growth strategy- Strengthening of the foundation of, and provision of stable earnings in, Education Business- Maximization of the Company’s business value by giving rise to synergies with the Medical Support
Business, childcare business, etc.
- Promotion of a change in corporate culture through the addition of people versed in the GABA approachto language education- Opportunity to work with GABA’s foreign nationals numbering around 1,000 (900 instructors and 100
administrative staff)
Copyright © 2011 Nichii Gakkan Company. All rights reserved.

1H FY2012 Financial Results Briefing Document23

Education Business

Addition of GABA Corporation as a subsidiary (3)—Impacts on the Company's businesses—

Health care
Building of local
教育communities

Direct impacts
Indirect impacts

Medical care

English conversation
courses for doctors andnursesQuantitative expansion ofdaily life support services
Quality-of-life improvement
for the elderly

Expansion of international
medical exchange support
services
Linking of international
Job creation
medical exchange support

English conversation
courses for the elderly

Education
GABA

and "cyber clerk" operations

Active development of daily life
support services for parents
Active development of facilities
combining childcare and longlongterm care services

Child care
English education
for children

Expansion ofcustomer reach
Stronger matching of
programs to needs
Job creation

Existing resources
Effective use of classrooms
Effective use of Web College resources
Development and provision ofinternational medical exchange
personnel

Stabilization of
Education Business

Development and provision of childcare
personnel

Language education operations will be a source of competitive advantage leading to new businesses.
Copyright © 2011 Nichii Gakkan Company. All rights reserved.

1H FY2012 Financial Results Briefing Document24

Management strategy
Improve business structurebalance

Profitability- Expand management support
services for medical institutions- Expand non-insurance services- Enhance education course menu

Key Goal Indicators- Double-digit year-onyear net sales growth

Expand new businesses

Growth- Operating margin of 7%
or higher- ROE of 15% or higher

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

- Childcare business, international
businesses

Enhance existing businessesGroupstrength- Improve profitability of Nichii Care
Palace Co., Ltd. and Nichii CarenetCo., Ltd.

1H FY2012 Financial Results Briefing Document25

All the profit targets and other forecasts, including the number of contracts,
number of users, and goals contained in this document, are based on thecurrent 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 understandthat actual business performance and other achievements, such as thenumber of contracts and number of users, may be substantially different
from the forecasts.

<<Contact information>>
Nichii Gakkan Company
Corporate Planning Headquarters
IR Department
Address: 2-9 Kanda Surugadai,,Chiyoda-ku, Tokyo
Tel: 03-3291-5637 (IR)
Mail: nichii-ir@nichiigakkan.co.jp