www.nichiigakkan.co.jp

NICHIIGAKKAN CO., LTD.

Financial Results Briefing Document
for the 1H of the Fiscal Year Ending March 31, 2019

November 8, 2018

Implemented key strategies in the fiscal year under review as thefirst year of the medium-term management plan, VISION 2025
FY ending March 2019: Progress in Key Strategy Implementation
Achievement of Net Sales
Growth- Childcare:up 38.5% year on year
- Health Care: up 15.6% year on year
- Therapy:
up 90.7% year on year
- Long-Term Care:up 0.2% year on year

Improvement of Business
Structure to Allow
Commitment toAchievement of Plans- Expansion of executive officer
system- Expansion of VIPRO in its 2nd year
- Change to regular employment andindefinite-term hiring- Incentive reform- Marketing reform

Structural Reform of
Education Business- Gaba-COCO system integrationand parallel brand operation- Growth of former Gaba: up 6.7%
- School integration: 8 locations

Reorganization of Consolidated Subsidiaries and Disposal of Unprofitable Business
Reorganization of China business companies (transfer to Nichii’s direct control system)
Disposed of 7 companies and 6 school corporations in the first half of the fiscal year under review© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

1

Financial Highlights
1. Record-high net sales for the 4th consecutiveyear- Significant sales growth in the Childcare segment lifted theoverall performance.
- Long-Term Care, Nichii Life, and Therapy also contributed
to sales growth.
- Former Gaba remained strong.

2. Operating income: Offset the delay in the 1stquarter to increase profit- Long-Term Care: Operating income for the first half of the fiscal
year reached a record high.
→ Higher occupancy of nursing care facilities- Childcare: The results of the China business improved.

Operating margin (quarterly transition)
4.00%

4.0％

3.1％

3.00%

1.5％

2.00%
1.00%

0.2％

0.00%
-1.00%-2.00%

1Q

2Q
3Q
FY2016.3

4Q

1Q

2Q
3Q
FY2017.3

4Q

1Q

2Q
3Q
FY2018.3

4Q

1Q

2Q
FY2019.3© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

2

Financial Results Highlights（Unit: million yen）

FY2019.3

FY2018.3
2Q

Net Sales

2Q

141,426

Difference

142,596 +1,169

3,753

4,154

+401

2.7%

2.9%

＋0.2 pt

1,815

1,947

+131

%

1.3%

1.4%

+0.1ptProfit attributable to

918

251

-667

0.6%

0.2%

-0.4ptOperating Income%

Ordinary Income

owners of parent%© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

3

Consolidated Net Sales by Segment（Unit: million yen）

Net Sales

FY2018.3 2Q

FY2019.3 2Q

ChangeDifference

FY2019.3

FY2019.3(yoy)（Initial forecast）（Revised forecast）

Medical Support

53,67253,671-0.0%▲1113,200

110,000

Long-term Care

75,40475,5260.2%

122

162,100

152,800

Child Care

3,922

5,433

38.5%

1,511

13,00012,000

Health Care

674

779

15.6%

105

3,500

2,000

Education

5,962

5,929

-0.6%

▲ 33

17,00013,000

Therapy

97

185

90.7%

88

1,400

1,000

Global

1,683

1,005

-40.3%

▲ 678

4,400

2,800

Others

733

729

-0.5%

▲4

1,900

1,900

▲ 722

▲ 663

-

59

▲ 2,000▲ 2,000

141,426

142,596

0.8%

1,169

314,500

293,500

Elimination

Total© 2018NICHIIGAKKAN CO., LTD. All rights reserved.

4

Consolidated Operating Income by Segment（Unit: million yen）

OperatingincomeFY2018.3 2Q

FY2019.3 2Q

OperatingchangemarginDifference

FY2019.3

FY2019.3（yoy）（Initial forecast）（Revised forecast）

Medical Support

4,522

4,448

8.3%

-1.6%

▲ 74

10,80010,000Long-term Care

7,509

8,019

10.6%

6.8%

510

15,00016,000Child Care

▲ 728

▲ 477

▲ 8.8%

-

251

400

400

Health Care

36

▲ 309

▲ 39.7%

-

▲ 345

▲ 770

▲ 600

Education▲ 2,043▲ 2,041▲ 34.4%

-

2

▲ 900

▲ 1,500

Therapy▲ 175▲ 288 ▲ 155.9%

-

▲ 113

40

40

Global

▲ 885

▲ 694

▲ 69.1%

-

191

▲ 500

▲ 900

Others

96

126

17.3%

31.3%

30

250

260

▲ 4,577▲ 4,627--50▲ 9,620▲ 9,000

3,753

4,154

2.9%

10.7%

401

14,70014,700Elimination

Total© 2018NICHIIGAKKAN CO., LTD. All rights reserved.

5

Summary of Balance Sheet (Consolidated)（Unit: million yen）
End of March 2018

End of Sep 2018

Difference

End of Sep 2017

Current assets

65,24968,5483,299

61,915

Fixed assets

124,990

124,034▲ 955

126,600

190,239

192,583

2,343

188,516

Current liabilities

60,45958,727 ▲ 1,731

69,786

Non-current
liabilities

92,12496,5384,414

82,385

Total liabilities

152,583

155,266

2,682

152,171

Total net assets

37,65637,316▲ 339

36,344

Total liabilities andnet assets

190,239

192,583

2,343

188,516

Total assets© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

6

Summary of Cash Flows (Consolidated)

Free cash flow and cash and cash equivalents at the end of the fiscal year
remained at high levels, and the ability to generate cash improved.
（Unit: million yen）

FY2015.3

FY2016.3

FY2017.3

FY2018.3

FY2019.3

2Q

2Q

2Q

2Q

2Q

5,372

1,028

2,854

9,927

4,823

▲4,325▲2,761▲ 2,709

▲ 479

▲ 257

1,046

▲1,733

144

9,448

4,566

Cash flows from Financial activities▲3,084

1,718▲ 1,387▲ 10,139▲ 2,456

Cash and cash equivalents at end of year

8,402

12,59913,171

15,57920,365

Cash flows from Operating activities

Cash flows from Investing activities

Free cash flow

© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

7

部門別概況
Segment
Overview© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

8

Core Business (Medical Support)
Focused on negotiations for contract rationalization and obtaining
new contracts during the period.
Quarterly net sales and operating income began to improve.
[Overview of Financial Results]
Net sales : 53,671 million yen （ yoy ▲1 million yen ）Operating income : 4,448 million yen （ yoy ▲74 million yen ）- Sales increased in the hospital department (up 274 million yen year onyear) and decreased in the clinic department (down 259 million yen year
on year) due to a decrease in the number of contracts.
- Both net sales and operating income tended to increase on a quarterly
basis, and sales and profit grew in a year-on-year comparison.

【Quarterly Net Sales &Operating Income】
Net Sales（Left axis）

Operating Income (Right axis)(Unit : million yen)

26,88526,80230,0005,000

26,787

26,79826,794

26,87725,0004,000

20,0002,358
15,000

2,119

2,329

[Activities in the First Half of the Fiscal Year]- Improved sales activities to acquire new contracts during the period- Supported the promotion of physicians’ workstyle reforms
Worked to meet the growing demand of assistants in the operations for
medical administration- Continued the negotiations for contract rationalization→ Net sales per hospital increased (up 1.7% year on year)

3,000

2,000
10,000

2,201

2,321

2,019
1,000

5,000

0

0

2018.3
1Q

2Q

3Q

4Q

2019.3
1Q

2Q© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

9

Core Business (Long-Term Care)
Quarterly profit increased substantially as a result of an increase in theoccupancy of nursing care facilities and the improved acceptance of patients in amoderate or severe condition【Quarterly Net Sales &Operating Income】[Overview of Financial Results]
Net sales : 75,526 million yen （ yoy ＋122 million yen ）Operating income : 8,019 million yen （ yoy ＋510 million yen ）- In the residential care services, both net sales and income increased
due to a rise in occupancy rates of fee-charging elderly care facilities- In the at-home type care services, while net sales decreased due to afall in the number of users, income increased as a result mainly of a risein sales per customer.
- Quarterly profit grew significantly thanks to increased productivity.

Net Sales（Left axis）

40,00037,462 37,942 37,911 36,496 37,448 38,078

30,000

8,000

6,000

4,370
3,598

20,0003,659[Activities in the First Half of the Fiscal Year]- Improved services to patients in a moderate or severe condition andworked to acquire users eligible for long-term care insurance benefits- On-site personnel led an increase in efficiency and labor productivity- Commenced major renovations of day service centers (77 locations
scheduled in FY2018)

Operating Income (Right axis)(Unit : million yen)

3,850

3,649

4,000

3,703

10,0002,000

002018.3
1Q

2Q

3Q

4Q

2019.3
1Q

2Q© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

1

Core Business (Childcare)
Both net sales and operating income grew substantially thanks to the opening ofa large number of childcare facilities and an increase in occupancy.
【Quarterly Net Sales &Operating Income】[Overview of Financial Results]
Net sales : 5,433 million yen （yoy＋1,511 million yen ）Operating income : ▲477 million yen (yoy＋251 million yen ）- Sales increased and loss was reduced as a result of opening a large
number of childcare facilities and raising occupancy rates.
- Quarterly profit rose considerably.

Net Sales（Left axis）

Operating Income (Right axis)(Unit : million yen)

4,000

600

3,033

3,000

2,865

2,568

2,410
2,107
[Activities in the First Half of the Fiscal Year]- Aggressive development of childcare facilities consisting mostly ofcorporate-run childcare centers (additional 21 corporate-run centers and
27 facilities of other types to total 48)→ As of the end of September, the number of childcare centers operated
was 247.
- Carried out promotions such as enterprise sales activities to increase
occupancy rates (the number of corporate contracts for corporate-run
childcare centers is 276, including 139 head offices and 137 branches).

2,000

219

-157

(400)

-404

(600)

-571
2018.3
1Q

2Q

0
(200)

-55

1,000

0

200

-73

1,815

400

3Q

4Q

2019.3
1Q

2Q© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

1

BS Business (Health Care)
Maintained strong sales by providing services to meet customer needs
Worked to prepare for the expansion of Sunny Maid Service【Quarterly Net Sales &Operating Income】[Overview of Financial Results]
Net sales : 779 million yen （yoy＋105 million yen ）Operating income : ▲309 million yen （yoy▲345 million yen ）- Net sales increased due to an increase in the number of users of thehousekeeping services (number of Nichii Life users: up 12.1% year onyear).
- Income decreased due to prior investment in the preparation for thelaunch of Sunny Maid Service, housekeeping services provided byforeign employees, in western Japan.

Net Sales（Left axis）

500(Unit : million yen)

100

74

400
332

342

377

347

381

398

[Activities in the First Half of the Fiscal Year]

100

50
0

300
200

- Number of foreign employees as of the end of September: 274- Improved enterprise sales activities, etc. to acquire users.

Operating Income (Right axis)

(50)
(135)

(38)

(115)

(100)
(194)

(124)

(150)
(200)

0

(250)

© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

1

BS Business (Education)
Former Gaba remained strong.
Focused on measures to generate the effects of business structural reform.
【Quarterly Net Sales &Operating Income】[Overview of Financial Results]

Net Sales（Left axis）

Net sales : 5,929 million yen （ yoy ▲ 33million yen ）Operating income : ▲2,041 million yen （ yoy ＋2 million yen ）- Net sales decreased chiefly due to discounts given to the students ofthe former COCO Juku who continued their courses at Gaba.
- The number of the former Gaba users increased (up 6.7% year on year).
- Both net sales and operating income began increasing in the quarterly
results.
After system integration in the 4th quarter of the previous year, a trendof improvement began in the first and second quarters of the fiscal year
ending March 31, 2019.

Operating Income (Right axis)(Unit : million yen)

3,500

2,937

3,025

2,950

3,156
2,893

3,000
2,500

3,036

(831)

(836)

2,000

(1,210)(500)(1,000)

1,500
1,000

(1,030) (1,013)(1,500)[Activities in the First Half of the Fiscal Year]500- Promoted collaborative operation that would take advantage of theGroup’s resources.
Standardized counselor and instructor levels.
- Integrated eight schools.

0(1,595)0(2,000)2018.3
1Q

2Q

3Q

4Q

2019.3
1Q

2Q© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

1

BS Business (Therapy)
Both quarterly net sales and operating income tended to improve,
focused on enhancing promotion and services to increase the number ofcustomers.
【Quarterly Net Sales &Operating Income】[Overview of Financial Results]
Net sales : 185 million yen （yoy＋88 million yen ）Operating income : ▲288 million yen （yoy▲113 million yen ）New sales grew owing to the opening of new outlets and increased sales.
Income decreased because prior investment in outlet opening andoperation expenses could not be offset.
Improving moderately on a quarterly basis.

[Activities in the First Half of the Fiscal Year]- A-LOVE opened in Josui-dori, Fukuoka (July)→ 21 salons across Japan.
- Distributed information to increase recognition through social media such
as Instagram.
- Developed new services to meet customer needs.

Operating Income (Right axis)

Net Sales（Left axis）(Unit : million yen)

250

0

(9)

200

(50)

210

(68)

150

(107)

100
50

88

97

(100)

66
51

(150)

46

(156)

(152)

4Q

2019.3
1Q

(136)

0

(200)
2018.3
1Q

2Q

3Q

2Q

© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

1

Global Business
Implemented reorganization by disposing of joint ventures.
Focused on increasing income by both acquiring new projects and raisingbusiness efficiency.
【Quarterly Net Sales &Operating Income】[Overview of Financial Results]
Net sales : 1,005 million yen （yoy▲678 million yen ）Operating income : ▲694 million yen （yoy＋191 million yen ）- Sales declined due to the dissolution of joint ventures with eight of theregional operating companies in China.
- Loss was reduced by increasing business efficiency largely through thedissolution of joint ventures.

Net Sales（Left axis）

Operating Income (Right axis)(Unit : million yen)

1,200

0

1,000
800

802

881

954

(200)

600

502

[Activities in the First Half of the Fiscal Year]- Worked to reorganize regional operating companies.
- Acquired contracts for facility projects and carried out training business.
→ Facility operation contracts: 3 (2 in Beijing and 1 in Dalian)→ Training provided: 9 projects- The nursing facility complex construction project in China was selected
for the project for promoting the development of international healthcare
centers organized by the Ministry of Economy, Trade, and Industry.

400

(344)
(405)

200
0

(100)

937

(368)

(300)
(400)

(500)

(436)

(480)
2018.3
1Q

(326)

503

(600)
2Q

3Q

4Q

2019.3
1Q

2Q© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

1

To Achieve the Targets
Set in the Full-Year Plan

© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

16

Key Strategies to Achieve the Targets Set in the Full-Year Plan
Increase the likelihood of achieving the full-year targets
through measures for further improvement that take into accountthe results of the first half of the fiscal year under review.
1. Achieving net sales growth- Sales activity reform: Accelerate company-wide sales activities- Childcare business: Achieve annual sales of 10 billion yen and turn full-year a profit

2. Improving business structure to allow commitment to achievement of plan
- Implement further business reforms led by on-site personnel→ Increase operation efficiency→ Increase the profitability of each establishment

3. Implementing structural reform of Education business- Integrate the systems of Gaba and COCO Juku and operate parallel brands- Close COCO Juku Jr. satellite classrooms

4. Reorganizing China business and acquiring new projects© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

17

Key Strategies to Achieve the Targets Set in the Full-Year Plan:
Net Sales Growth
Create opportunities for further sales growth by accelerating
sales promotion and maximizing the use of human resources
Accelerate sales promotion (change from quantity to quality)⚫ Improve the analysis of sales activities and targets
Placed the Sales Planning Department in the Nichii Sales and Marketing
Headquarters on October 16.
⚫ Further promote cross-selling marketing (among core, BS, and Global
businesses).
Provide 260 salespeople with SFA accounts and support daily sales activities.

Increase supply capacity by maximizing the use of human resources

Numerical Target
Year-on-year growth offull-year net sales(company-wide)

3.4%⚫ Improve human resource matching.
Efficient matching between employees and projects through reassignment based on
employees’ requests and skills⚫ Implement measures to acquire participants in certification courses and improve theapproach to people who have completed a course.
© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

18

Key Strategies to Achieve the Targets Set in the Full-Year Plan:
Improvement of Business Structure to Allow Commitment
to Achievement of Plans
Implement further business reforms led by on-site personnel
with the aim of raising profitability
Increase operation efficiency⚫ Implement work-style reforms (reducing long working hours).
Reduce overtime work and long working hours by improving
operation management.

Increase the profitability of each establishment

Numerical Target
Medical Support and Long-Term Care segments:
year-on-year increase in operating income

Approx.

2,300

million yen⚫ Increase autonomy through VIPRO activities.
Increase workplace efficiency and labor productivity throughleadership of on-site personnel.
Operating income: Aim for consecutive record highs.

© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

19

Key Strategies to Achieve the Targets Set in the Full-Year Plan:
Structural Reform of Education Business
Maintain the new Gaba school system
Aim to turn a profit by improving management
Pursue customer satisfaction:
Thoroughly implement the Gaba method

Pursue customer
satisfaction- Thoroughly support customers in achieving their improvement goals
Provide lessons for customers to attain their goals- Improve counseling and instructor training

Pursue operation efficiency

Key Strategies
Build a new
Pursue operation Gaba businessefficiency
model- Build an optimal area-specific resource allocation model for Gaba-COCO
Juku- Close COCO Juku Jr. satellite classrooms* Eliminate inefficiency due to geographically spread locations and focus
on increasing convenience of planned class attendance

Build a new Gaba business model- Take on the challenge of switching to a nationwide business using thebusiness model of the former COCO Juku from the current urban
business model that focus on the Tokyo metropolitan area
© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

20

Key Strategies to Achieve the Targets Set in the Full-Year Plan:
Reorganization of China Business
Build a market creation system while turning wholly owned companies
into an operating company in response to changes
in the business environment and demand in China
Nichii Gakkan
Turn three wholly-owned companies
into an operating company

Nichii-HTW

NichiiHong Kong

Nichii
BeijingNichii
Guangzhou

NichiiShanghai

Further reorganization of regional operating companies
At the end of the previous fiscal year

At the end of the current fiscal year

20 operating companies
and 9 school corporations

9 operating companies
and 3 school corporations© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

21

Key Strategies to Achieve the Targets Set in the Full-Year Plan:
Creation of Growth Opportunities
Focus on acquiring new projects to turn a profit in the China businessin the fiscal year ending March 31, 2020.
Promote the business of contract facility operation and training⚫ Facility operation contracts: 3 contracts expected (2 in Shenyang and 1 in Beijing)⚫ Outside sales training: 7 projects scheduled⚫ Build a future business model based on the facility complex operation (Beijing and Dalian) for the international healthcare
facility development promotion project subsidized by the Ministry of Economy, Trade, and Industry (METI), for which Nichii
was selected in July

Selection for the international healthcare facility development promotion project subsidized by METI
Project name:Nursing facility complex development project in China
Consortium members: Nichii (consortium representative), NEC Corporation, IAO Takeda Architects Associates Co., Ltd., Paramount Bed

Period:Project:(China) Co., Ltd. (Paramount Bed Holdings’ local affiliate in China), and Toto (China) Co., Ltd. (Toto Ltd.’s local
affiliate in China)
July 19, 2018 through February 28, 2019
Establishment of corporate partnerships through the foundation of facility complexes, the delivery of at-home nursing
care and monitoring services, the placement of model rooms for nursing care facilities, the delivery of briefings tofamilies of users requiring nursing care, the development and training of facility managers, and the delivery ofbriefings to Chinese business operators© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

22

FY2019.3 Earnings Forecast© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

23

FY2019.3 Earnings Forecast (Consolidated)（Unit:million yen）

FY2018.3

FY2019.3 2Q

AmountAmount

FY2019.3
Initial forecast

Revised forecast

Corection Amountyoy(%)

283,767

142,596314,500

293,500▲ 21,000

3.4%

7,630

4,154

14,70014,700

0

92.7%

2.7%

2.9%

4.7%

5.0%

-

-

3,628

1,947

10,500

9,600

▲ 900

164.6%

%

1.3%

1.4%

3.3%

3.3%

-

-

Profit attributable to

854

251

6,300

5,100

▲ 1,200

496.9%

0.3%

0.2%

2.0%

1.7%

-

-

Net Sales
Operating
Income%Ordinary
Incomeowners of parent%© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

24

Consolidated Net Sales by Segment（Unit：million yen）

FY2018.3

FY2019.3 2Q

AmountAmount

FY2019.3

Net Sales
Initial forecast

Revised forecast

Corection Amountyoy(%)

Medical Support

107,272

53,671

113,200

110,000▲ 3,200

2.5%

Long-term Care

149,81175,526

162,100

152,800▲ 9,300

2.0%

Child Care

9,365

5,433

13,00012,000▲ 1,000

28.1%

Health Care

1,398

779

3,500

2,000

▲ 1,500

43.1%

Education

12,0685,929

17,00013,000▲ 4,000

7.7%

373

185

1,400

1,000

▲ 400

168.1%

Global

3,574

1,005

4,400

2,800

▲ 1,600-21.7%

Others

1,933

729

1,900

1,900

0

-1.7%

Elimination▲ 2,030▲ 663▲ 2,000▲ 2,000

0

-

Total

283,767

142,596314,500

293,500▲ 21,000

3.4%

Therapy© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

25

Consolidated Operating Income by Segment
Operation
IncomeFY2018.3

FY2019.3 2Q

AmountAmount（Unit:million yen）

FY2019.3
Initial forecast

Revised forecast

8,899

4,448

10,80010,000

8.3%

8.3%

9.5%

9.1%

Long-term Care

14,8108,019

15,00016,000％Child Care％
Health Care％
Education％
Therapy％
Global％Others
％

9.9%

10.6%

9.3%

10.5%

▲ 564

▲ 477

400

400

6.0%

-8.8%

3.1%

3.3%

▲ 223

▲309

▲ 770

▲ 600

-16.0%-39.7%-22.0%-30.0%▲ 4,474▲ 2,041▲ 900▲ 1,500-37.1%-34.4%-5.3%-11.5%

▲ 340

▲ 288

40

40

-91.3%-155.9%

2.9%

4.0%

▲ 1,665

▲ 694

▲ 500

▲ 900

-46.6%-69.1%-11.4%-32.1%

204

126

250

260

10.6%

17.3%

13.2%

13.7%

▲ 9,014▲ 4,627▲ 9,620

7,630

4,154

2.7%

2.9%

Medical Support％

Elimination

Total
％

Corectionyoy(%)

Amount

▲ 800

12.4%

1,000

8.0%

0

-

170

-

▲ 600

-

0

-

▲ 400

-

10

27.5%

▲ 9,000

620-

14,70014,700

0

92.7%

4.7%

5.0%
© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

26

FY2019.3 Earnings Forecast (Non-Consolidated)（Unit:million yen）

Net Sales
Operating
Income%Ordinary
Income%Net Income%

FY2018.3

FY2019.3 2Q

AmountAmount

FY2019.3
Initial forecast

Revised forecast

Corectionyoy(%)

Amount243,588

122,599

268,700

251,300 ▲ 17,400

3.2%

6,241

4,020

12,10012,100

0

93.9%

2.6%

3.3%

4.5%

4.8%

-

-

4,939

3,429

10,80010,300▲ 500

108.5%

2.0%

2.8%

4.0%

4.1%

-

-

3,300

2,051

7,600

6,900

▲ 700

109.1%

1.4%

1.7%

2.8%

2.7%

-

-

© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

27

Shareholder Return
An annual dividend of 30 yen per share after adding 8 yen per share is scheduled
to be paid based on an increase in the ability to generate cash.

Annual dividend

30yen
20yen

FY2015.3

22yen

22yen

22yen

FY2016.3

FY2017.3

FY2018.3

FY2019.3(Forecast)© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

28

ESG Activities
Aim to achieve sustainable growth on a global scaleby linking the Nichii Vision and SDGs.

E

Global warming and natural resources
Reduce CO2 emissions by installing high-efficiency
energy facilities through the renovation of day
service centers

V I S I O N

2 0 2 5

Four priority themes that are closely relevant to the Company

S

Solution of social issues and social market
opportunities
Promote sustainable management strategies bylinking the UN’s Sustainable Development Goals
and Nichii’s management philosophy, “Nichii Vision”

G

Compensation
Introduce a restricted stock compensation plan andstock options in view of market conditions© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

29

All performance targets and other forecasts, including numbers ofcontracts and users, and goals, contained in this document are
based on information currently available to the Nichii Gakkan Groupand will be affected by uncertain factors, including economic
circumstances, the relaxation of regulations, and employment
conditions. Please note that actual results, numbers of contracts andusers, and other data may be different from the forecasts.

Contact information
NICHIIGAKKAN Co ., LTD.
PR Division, Public Relations Department
Corporate Governance Headquarters
Address: 2-9 Kanda Surugadai, Chiyoda-ku, Tokyo
Tel: 03-3291-3954 (PR Division)
E-mail: nichii-ir@nichiigakkan.co.jp© 2018 NICHIIGAKKAN CO., LTD. All rights reserved.

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