www.nichiigakkan.co.jp

NICHIIGAKKAN CO., LTD.

Financial Results Briefing Document
For the Three Months Ended Jun. 30, 2017

August 10, 2017

Financial Results Highlights(Unit：million yen）

FY2018FY2017
1Q

1Q

increase and decrease

Net Sales

68,41470,313+1,898Operating Income

▲ 215

1,519

+1,734▲ 0.3%

2.2%＋2.5pt▲ 1,250560+1,810▲ 1.8%

0.8%＋2.6pt▲ 1,313510+1,824▲ 1.9%

0.7%＋2.6pt%Ordinary Income%

Profit attributable toowners of parent%© 2017 NICHIIGAKKAN CO., LTD. All rights reserved.

1

Financial Results Highlights ①
Record-high sales for the quarter revised. Growing force also recovered.

FY2013.3
1Q
7.4%

Sales increase rate change by quarter

FY2018.3
1Q
2.8%

FY2014.3
1Q
3.8%

FY2016.3
1Q
0.2%

FY2017.3
1Q
0.8%

FY2015.3
1Q▲0.6%© 2017 NICHIIGAKKAN CO., LTD. All rights reserved.

2

Financial Results Highlights ②
Operating Income, Maintaining an increasing trend (1,734 million yen increase compared to the previous year)

Changed nearly as planned against the result forecast
Interim forecast 3,000 million yen (progress rate 50.6%) Full-year forecast 9,300 million yen (progress rate 16.3%)

Quarterly Operating Income■1Q（Unit : million yen）
3,000
2,500
2,000

1,863

1,519

1,727

1,500

1,258

FY2013.3

FY2014.3

FY2015.3

▲215
▲614

FY2017.3

FY2018.3

FY2016.3© 2017 NICHIIGAKKAN CO., LTD. All rights reserved.

3

Major Changes in Net SalesYear on year Increase inSales of 1,898 million yen（Unit : millon yen）
Globalization businesses+70

Core businesses ＋1,845

Strategic businesses ▲44＋31＋659▲74＋1,290

68,414+70＋166▲170,313▲138・ Home Care
+47million yen
・ Facility Care+1,310million yen
・ Care Education －67million yen▲104・ Hospitals+ 81 million yen
・ Clinics－105million yen
・ Medical Education －80million yen

FY2017.3
1Ｑ

MedicalSupport

Long-term
Care

ChildCare

Health Care

Education

Therapy

China

OthersElimination

FY2018.3
1Ｑ© 2017 NICHIIGAKKAN CO., LTD. All rights reserved.

4

Major Changes in Operating Income
Year on year Increase in Operating
Income of 1,734 million yen
Core businesses ＋1,738（Unit：million yen）

Globalization businesses
Strategic businesses ＋18▲42・Home Care+711million yen
・Facility Care+748million yen
・Care Education ＋70million yen＋1,529＋13＋32▲309▲28▲42▲48

Therapy

ChinaOthers＋69

1,519

Elimination

FY2018.3＋517▲215
FY2017.3
1Ｑ

MedicalSupport

Long-term
Care

ChildCare

Health Care

Education

1Ｑ© 2017 NICHIIGAKKAN CO., LTD. All rights reserved.

5

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

（Unit:million yen）

FY2017.3

FY2018.3

changeOperating1Q

1Q

(%）

incomeMedical Support

27,01026,906▲ 0.4%

Medical Support1,6722,190

30.9%

Long-term Care

35,82837,118

3.6%

Long-term Care

2,073

3,602

73.8%

Child Care

1,156

1,815

57.0%

Child Care

▲ 262

▲ 571-

Health Care

654

685

4.8%

Health Care

117

130

11.1%

3,213

3,138

▲ 2.3%

Education▲ 1,110▲ 1,077-6059▲ 2.4%

Therapy※

▲ 55

▲ 83-

China

482

552

14.7%

China

▲ 365

▲ 407-

Others

232

398

71.6%

Others96

Elimination▲ 223▲ 362-

Total

68,41470,313

2.8%

Net Sales

Education
Therapy ※Elimination

Total

FY2017.3

FY2018.3

change1Q

1Q(%）

47 ▲ 50.3%▲ 2,381▲ 2,311-▲ 215

1,519-※New segment display from the fiscal year ended March 31, 2018
© 2017 NICHIIGAKKAN CO., LTD. All rights reserved.

6

Changes in Cash flow
(Unit : million yen）

FY2017.3

FY2018.3

1Q

1Q

Difference

Cash flows from Operating activities▲724171+ 896

Cash flows from Investing activities

▲596

▲722

▲125▲1,321▲550+ 770

Cash flows from Financial activities

924▲1,250▲2,174

Cash and cash equivalents at end of year

14,015

14,461+ 445

Free cash flow

© 2017 NICHIIGAKKAN CO., LTD. All rights reserved.

7

Summary of the balance sheet(Unit：million yen）
End of March 2017、

End of June 2017

Difference

End of June2016

Current assets

64,72364,146▲576

62,183Fixed assets

126,984

127,727

743

124,131

191,708

191,874

166

186,315

Current liabilities

68,53067,764▲766

69,393

Non-current liabilities

85,25286,3831,130

80,315

Total liabilities

153,783

154,147364

149,708

Total net assets

37,92437,726▲197

36,606

Total liabilities andnet assets

191,708

191,874

166

186,315

Total assets© 2017 NICHIIGAKKAN CO., LTD. All rights reserved. 8

Segment Overview© 2017 NICHIIGAKKAN CO., LTD. All rights reserved.

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Core businesses Overview （Medical Support business）
Profit increase trend is maintained by continuing execution of profitfocused strategy
Results
overview-Sales 26,906 million yen (yoy ▲0.4%)→Conclusion of the contract at a proper price by
providing added value was a priority
Impacted by sales decrease of clinic and medicaleducation

Quarterly Operating Income（Unit : million yen）

■ 1Q
第1四半期営業利益
Operating Income2,190-Operating profit 2,190 million yen (yoy ＋30.9%）→Operating profit ratio increased by 1.9pt to 8.1%

Future strategic policy-Further advancement of contract optimization-Work environment improvement (retaining of human resources)
and recruit promotion-Enhancing sales to clinics
FY13.3

FY14.3

FY15.3

FY16.3

FY17.3

FY18.3※Segment change and cost allocation rule change are retroactively processed.
© 2017 NICHIIGAKKAN CO., LTD. All rights reserved.

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Core businesses Overview （ Long-term Care business ）Record-high sales for the quarter revised mainly due to unit price increase.
Resultsoverview-Sales 37,118 million yen (yoy ＋3.6%)→Home care changed to positive results, including treatment（Unit : million yen）
improvement addition effect→Facility-care services progress accelerated (yoy＋9.6%)-Operating profit 3,602 million yen (yoy ＋73.8%)→Home care service operation efficiency increased→Facility-care base operation rate increased
Operating rate as of the end of June 87.7％ (yoy +1.5Pt）

Quarterly Net sales and Operating Income（Unit : million yen）

■ 1Q Net sales■ 1Q Operating income

37,1183,602

Future strategic policy-Further increase of operation rate-Business model creation matched to system trends→Reinforcement of moderate-severe persons response, etc.
-Secure human resources by work environment improvement
and recruit promotion, etc.

FY13.3
FY17.3
FY18.3
FY16.3
FY15.3
FY14.3※Segment change and cost allocation rule change are retroactively processed.
© 2017 NICHIIGAKKAN CO., LTD. All rights reserved.

11

Core businesses Overview （Child Care business ）High level sales progress continued due to aggressive new opening
Resultsoverview- Sales 1,815 million yen (yoy +57.0%)→Number of new opening: 68 sites(Corporate-run type: 46 sites, Registered: 20 sites, Nonregistered: 2 sites)→Registered child care centers progressed as planned- Operating loss: 571 million yen(Operating loss in the previous year: 262 million yen)
→Advance investment accompanied by new opening

Quarterly Net sales and Operating Income（Unit : million yen）
2000

1500

1,815

■ 1Q Net sales■ 1Q Operating loss

1000

Future strategicpolicy- Corporate sales reinforcement and regional sales
reinforcement in corporate-run type

- Newly open preparation in the following fiscal year
- Sales, etc. of child care related goods

5000▲571-500

FY13.3

FY14.3

FY15.3

FY16.3

FY17.3

FY18.3-1000※Segment change and cost allocation rule change are retroactively processed.
© 2017 NICHIIGAKKAN CO., LTD. All rights reserved.

12Strategic businesses Overview （Education business ）In an attempt to achieve our plan, area development andcorporate sales strengthened.
Results
overview-Sales 3,138 million yen (yoy ▲2.3%)→ COCO Juku sales 455 million yen (yoy +7.1%)→ Gaba sales 2,469 million yen (yoy ▲3.3%)-Operating profits ▲1,077 million yen (Previous year▲1,110 million yen）

About satellite classrooms→COCO Juku ▲1,118 million yen (Previous year ▲1,322 million yen）

→Gaba

75 million yen （yoy ▲64.6％）

By operating classrooms in residential
areas/high-traffic places, Satellite classrooms

Future strategic
policy-Counseling reinforcement-Corporate sales reinforcement-COCO Juku Junior Satellite Classroom development
reinforcement-Further area promotion efficiency-Management resources sharing between brands andbusinesses

provide safe lesson environments wherechildren are easy to commute to.
16 satellite classrooms (as of the end of June)© 2017 NICHIIGAKKAN CO., LTD. All rights reserved.

13

Strategic businesses Overview （Health Care）
Housekeeping services and sales of sanitary products continued favorably.
Resultsoverview- Sales 685 million yen (yoy +4.8%)- Operating profit 130 million yen (yoy +11.1%)→ Housekeeping service “Nichii Life,” sanitary products sales
continued favorably→ Foreigner Housekeeping Support, “Sunny Maid Service,”development preparation:- Installed Strategic Business Promotion Dept. in all branches- Increased the number of sales representatives (relocation fromadministrative departments, etc.)

Sunny Maid Service Outline- Staff with housekeeping support qualification and practical work
experience of more than one year in the Philippines provides
services- Possible to communicate in English- Carry out Japanese cooking training to staff- Establish unique service provision system- Launch from September, aims at full-fledged development fromnext year

Future strategic policy- Market development by Nichii Life and Sunny Maid Service- Foreign human resources plan overseas trip to Japan early
September- Plans to start Sunny Maid Service at the end of September- Expansion of product sales and sales promotion reinforcement© 2017 NICHIIGAKKAN CO., LTD. All rights reserved.

14Strategic businesses Overview （Therapy）
Aim at creating added values by collaborating with other businesses
Resultsoverview-Sales 59 million yen (yoy ▲2.4%)-Operating profit ▲83 million yen (Previous year▲55 million yen)
→Grooming Salon, “A-LOVE Gakugei University branch”
Opened on June 15→”A-LOVE Oyamadai“ which was opened in February and “A-LOVEGakugei University” which was opened in June operated favorably

Future strategic policy- Strengthen area marketing- Reinforcement of grooming salon development (target 40sites)- Collaboration reinforcement with long-term care service(dog therapy)© 2017 NICHIIGAKKAN CO., LTD. All rights reserved.

15

Strategic businesses Overview （China business ）Preparation started for dementia-response facility in Beijing and Shanghai
Results
overview- Sales- Operating profit

TOPICS552 million yen (yoy 14.7%)▲407 million yen (Previous year▲365 million yen)
→ ZhongFu Nichii Healthservices Co.,LTD became
consolidated company→ Preparation is underway for opening (or being outsourced)
dementia-response facility

Future strategic policy- Open preparation for dementia-response facility(Shanghai and Beijing)- Promote acquisition for outsourcing project by the Chinesegovernment→Visiting nursing business (Jinan City)→Nursing personnel training business (Nanning City)- Promote outsourcing project by the Ministry of Economy, Tradeand Industry

The Ministry of Economy, Trade and Industry adopted the “Medical
Technology and Service Base Promotion Project”<Outline>(1) Carry out education activities aiming at enhancing nursing recognition
for the city government by forming a consortium with NEC→Carry out introduction and training on Japan’s nursing and“Nursing degree determination system*” which NEC offers to the city
government(2) Training nursing human resources→Carry out for workers at elderly care centers as well as ordinary people<Period>

From July 6, 2017 to February 28, 2018*“Nursing degree determination system”
System to determine degree of necessity based on 52 items
related to physical conditions© 2017 NICHIIGAKKAN CO., LTD. All rights reserved.

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【List of business subsidiaries】

List of Cities Where Nichii’s China
Business is established

Name of company※Includes non-consolidated subsidiaries※Underlined cities in bold letters:
Locations of the headquarters of operation companies※End of July 2017

Changchun●
BeijingLangfang

Shenyang●●●●

DalianTianjinChengsu

Advanced
Into 26
Cities

●

Hefei
●
●
Wuhan
●

●
●
●
Liuzhou
● ●●
●●
●●
●
Hong kongNanning
Qinzhou

Beijing

瀋陽日医助尓家庭服務有限公司

Shenyang

深セン市中家家庭服務有限公司

ShenzhenZhuhai
FoshanJiangmen

Jinan

広州市正祥和家政服務有限公司

Guangzhou

常州金蓓蕾健康諮詢服務有限公司

Changzhou

深セン市中家星級家政服務有限公司

Shenzhen

深セン市中家華傭家政服務有限公司

Shenzhen

深セン市中家職業技能培訓学校

Shenzhen

杭州天使家政服務有限公司

Hangzhou

大連九鼎互聯科技発展有限公司

Dalian武漢尓邦家政有限公司

Wuhan

広西康之橋護理服務有限公司

Nanning

南寧康之橋職業培訓学校

Nanning

欽州康之橋職業訓練学校

Qinzhou●● Shanghhai

柳州康之橋職業訓練学校

Liuzhou●

安徽賽菲家庭服務管理有限公司

Hefei

合肥賽菲職業訓練学校

Hefei● Qingdao● JinanXi’an

北京三傑聖一人力資源有限公司

済南仁徳家庭服務有限公司●

Name of city

Changzhou

HangzhouShenzhenHuizhou
Meizhou

Guangzou

日医（珠海）健康服務有限公司

Zuhai

日医（仏山）健康服務有限公司

Foshan

梅州市客家大嫂家政服務有限公司

Meizhou

梅州市華傭職業培訓学校

Meizhou

西安海鑫家政清潔工程有限公司

Xi’an

西安海鑫職業技術培訓学校

Xi’an

中福日医（上海）健康服務有限公司

Shanghai© 2017 NICHIIGAKKAN CO., LTD. All rights reserved.

17

2018年3月期 通期
FY2018.3 Earnings Forecast
業績見通し© 2017 NICHIIGAKKAN CO., LTD. All rights reserved.

18

FY2018.3 Earnings Forecast
We’ll continue to focus on achieving the annual performance plan!
（Unit:million yen）

FY2017.3
AmountNet Sales
Operating income%Ordinary Income%

Profit attributable toowners of parent%

EP S （ ye n ）Cash Dividends perShare(yen)FY2018.3
Amountyoy（％）

276,659

300,000

8.4%

4,2069,300

121.1%

1.5%

3.1%

-

1,429

6,000

319.9%

0.5%

2.0%

-

1,403

3,000

113.8%

0.5%

1.0%

-

21.86yen

46.73yen-22yen22yen-© 2017 NICHIIGAKKAN CO., LTD. All rights reserved.

19

Consolidated Net Sales and Operating Income by Segment
There is no change in the forecast by segment（Unit:million yen）

Net Sales（Unit:million yen）

changeOperating(%）

IncomeFY2018.3

Medical Support

108,325

112,300

3.7%

Medical Support

8,012

9,200

14.8%

Lomg-term care

144,416

154,100

6.7%

Lomg-term care

11,18312,80014.5%Child Care5,949

9,30056.3%

Child Care615600▲ 2.4%

Health Care

2,926

4,600

57.2%

Health Care

▲ 4,647▲ 2,900-

Education

12,771

15,00017.5%

Education▲ 781▲ 600-

Therapy ※

377

1,600

324.4%

Therapy▲1070-

China

2,007

3,100

54.5%

China

▲ 1,416▲ 1,100-

Other

1,303

1,600

22.8%

Other285

Ellimination▲ 1,417▲ 1,600-

Total

276,659

300,000

8.4%※New segment display from the fiscal year ended March 31, 2018

Ellimination

Total

FY2017.3

changeFY2017.3

FY2018.3(%）

200 ▲ 29.8%▲ 8,937▲ 8,900-4,206

9,300

121.1%© 2017 NICHIIGAKKAN CO., LTD. All rights reserved.

20

Strategy Execution Stance Toward Vision Achievement
Achieve Vision by Practice of Entire Site Participation!
Nichii Strategy Execution Stance

Board of Directors
ReportInstruction

Executive Officers Committee
Management execution by area
-Speed management: Speeding up of management decisions-Strategy execution: Reinforcement of executive function for businessactivities-Plan achievement: Clarification of executive responsibility

ReportInstruction

Mid-term Target of Business StructureBalance

Globalization Business10%
Strategic business 10%
20%Profitbreakdown

40%

Sales
breakdown

50%Core business
70%

VIPRO Committee/Meeting*VIPRO: Vision achieving promotion project
Business field/branches independently promote reform-Business reform: Productivity improvement and steady strategy
execution-Workplace reform: Create a pleasant working environment© 2017 NICHIIGAKKAN CO., LTD. All rights reserved.

21

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 employmentconditions. 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© 2017 NICHIIGAKKAN CO., LTD. All rights reserved.

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