www.nichiigakkan.co.jp

NICHII GAKKAN COMPANY
For the Year Ended March 2011 (FY2011)

Financial Results Briefing Document
May 23, 2011

Information Meeting of
Financial Report for the Year
Ended March 31, 2011
President and Representative Director

Masatoshi Saito

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

FY2011 Financial Results Briefing Document1

Overview of Financial Results
1. FY2011 Overview of Financial Results1) Impacts of the Great East Japan Earthquake and the Company’s Response
2) Disaster Relief Activities
3) FY2011 Financial Results4) Overview of FY2012
5) FY2011 Net Sales and Operating Income by Business
6) Factors of Changes in Net Sales
7) FY2011 Financial Results by Business8) Consolidated Cash Flows

P4
P5
P6
P7
P8
P9
P10 - P13
P14

2. FY2012 Forecast
1) FY2012 Forecast
2) FY2012 Key Points in the Results Outlook
3) FY2012 Forecast : Net Sales and Operating Income by Business4) Dividend Policy
5) FY2012 Forecast by Business

P16
P17
P18
P19
P20 - P23

3. Management Strategy
1) Management Strategy
2) Change in the Business Structure Balance3) Business Strategy
4) Playing a Part in Innovation in the Fields of Medical and Long-Term Care
5) Lakewoods Garden Himeharu no Sato

P25
P26
P27 - P30
P31
P32

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

FY2011 Financial Results Briefing Document2

FY2011 Overview of Financial Results

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

FY2011 Financial Results Briefing Document

3

Impacts of the Great East Japan Earthquake and the Company’s Response
The areas overseen by the following branches suffered damage:
Aomori Branch, Hachinohe Branch, Morioka Branch, Kitakami Branch, Sendai Branch,
Furukawa Branch, Fukushima Branch, Iwaki Branch, Koriyama Branch, Mito Branch

Medical Support
Business

Medical institutions under contract were damaged
Medical institutions under contract are in the area evacuated due to the nuclear
accident
Æ Support staff of other branches have been dispatched to affected branches

Health Care
Business

Company’s facilities providing long-term care were damaged
Company’s facilities providing long-term care are in the area evacuated due to the
nuclear accident
Æ Concentrating on restoring services
Æ Striving to confirm the safety of users

Education BusinessCompany’s training facilities were damaged
Company’s training facilities are in the area evacuated due to the nuclear accident
Suspension of advertising activities
Æ Transferring classes unable to give lectures to classes that are heldÆ Transferring classes unable to give lectures to Web College (e-learning)

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

FY2011 Financial Results Briefing Document

4

Disaster Relief Activities◆Relief activities by the Company
1. Material support(1) Provision of food and other daily life necessities to evacuation centers(2) Acceptance of disaster victims into long-term care facilities
2. Physical support(1) Assistance with the 24/7 operation of disaster base hospitals(2) Dispatch of long-term care staff to confirm the safety of senior citizens(3) Dispatch of home-visit bathing vehicles to evacuation centers
Kitakami Branch staff called for help and the Company supported the rescue ofover 100 survivors.

Nichii’s capabilities on the ground, comprehensive strength, andnational network are helping to reassure and support communities.
FY2011 Financial Results Briefing Document

5

FY2011 Financial Results
Consolidated
Consolidated(Million y en)

FY2011FY2010
AmountNet sales
Operating income%

Ordinary income%

Net income%<Reference>
Comprehensive
income%Copyright © 2011 Nichii Gakkan Company. All rights reserved.

Amount(Forecast)Amount(Result)

Y on Y

2.3%
14.6%

235,352
6,864

240,000
8,000

240,827
7,868

2.9%

3.3%

3.3%

6,877

8,300

9,660

2.9%

3.5%

4.0%

3,154

3,500

3,478

1.3%

1.5%

1.4%

3,274

3,375

1.4%

1.4%

40.5%
10.3%

3.1%

FY2011 Financial Results Briefing Document

6

Overview of FY2012

1. Another record-high sales
1) Net sales reached another record high (3 consecutive years) .
¥240,827 million (up 2.3% year on year)
2) Performance of the mainstay Medical Support and Health Care businesses
is trending upward.

2. Two consecutive years of higher profits
1) Operating income: ¥7,868 million (up 14.6% year on year)2) Ordinary income: The 3rd highest of ¥9,660 million (up 40.5%)
Æ ¥12,891 million (FY2003), ¥14,045 million (FY2004)
Of ¥2,537 million in non-operating income, ¥1,628 million iscommission on consignment for job creation businesses* Job-creation operations: Personnel expenses are recorded as costs,
while service fees are recorded as non-operating income

3) Net income: ¥3,478 million (up 10.3% year on year)

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

FY2011 Financial Results Briefing Document7

FY2011 Net Sales and Operating Income by Business
Consolidated net sales(Million yen)

FY2010 Result

Y on YFY2011 Result
Change％Medical Support Business
Health Care Business

101,553
118,074

103,227
124,321

1,674
6,247

1.6%
5.3%

Education Business
Other Businesses

15,255
2,603

12,907
1,642(2,348)(961)(15.4%)(36.9%)

Eliminations / Corporate
Total(2,134)
235,352(1,271)
240,827

863
5,475

2.3%

Consolidated operating income
FY2010 Result(Million yen)

FY2011 Result(Previous standard)

Medical Support Business
Health Care Business
Education Business
Other Businesses
Eliminations / Corporate
Total
Copyright © 2011 Nichii Gakkan Company. All rights reserved.

8,181
3,586
2,992
394
(8,291)
6,864

8,161
7,433
1,482
(68)
(9,139)7,868

Y on Y (to new standard)(New standard)

7,042
6,500
1,596
(68)
(7,201)
7,868％(13.9%)
81.2%(46.7%)
14.6%

FY2011 Financial Results Briefing Document8

Factors of Changes in Net Sales
Medical Administration course
Home Helper course, etc.

approx. - ¥1.05 billion
approx. - ¥1.3 billion

Home care approx. + ¥7.05 billion
Facility care approx. - ¥0.8 billion（Million yen）

Education-2,348
Health Care
+6,247

Other-961

Eliminations/
Corporate+863

Hospitals approx. + ¥2.3 billion
Clinics
approx. - ¥0.65 billion

MedicalSupport
+1,674

２３５,３５２

240,827+¥5,475 million (2.3%) year on year

FY2010FY2011

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

FY2011 Financial Results Briefing Document

9

Medical Support Business
Consolidated
Consolidated

Net sales

FY2011 Financial Results

Operating income （Millions yen）

◆Higher net sales per hospital

103,227
101,553

+1.6％

8,161
8,181

-0.2％

7,042
-13.9％
Previousstandard

FY2010FY2011FY2010New
standard

FY2011

NumberNumber ofof contracted
contracted medical
medical institutions
institutions
Clinics

Hospitals

Overview of financial results for FY2011
・ Continuous pursuit of the contract revision strategy produced
higher net sales per hospital and a second
consecutive fiscal year of higher net sales
・ Per hospital net sales: ¥46 million (FY2010: ¥44 million)◆Continued increases in staff compensation
・ Continued increases in staff compensation have promoted thehiring of outstanding personnel and greater efficiency in staff
deployment, resulting in upward trend upward of income insecond halfÆ Even with higher health insurance rates and otherfactors which contributed to higher personnel expense, income
remained at roughly the same level as FY2010 (based on
existing standards)(Cases)◆Reducing the administrative burden of physicians・ Launched of the cyber clerk business・ Promoted deployment of medical office work assistants

1,970

FY2010

1,955

8,994

-0.8％

FY2011

8,644
-3.9％

FY2010

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

◆Redoubled efforts to develop the childcare business・ The childcare business division was made into a separate
division in February and efforts have been redoubled todevelop childcare services within offices and medical
institutions

FY2011FY2011 Financial Results Briefing Document 10

Health Care Business
Consolidated
Consolidated

FY2011 Financial Results

Net sales

Operating income (Million yen)

124,321

7,433

+5.3%

Overview of financial results for FY2011◆Home-care services and non-insurance services+107.2％

118,0746,500+81.2％

3,586

Previousstandard

New
standard

・Increase in Care plan users
・Increase in users of home-visit care, day care, and careequipment leasing services (up 7% vs. FY2010)
・Increase in number of designated home-care support facilities
acquired additional compensation
・Increase in users of welfare services for the handicapped (up
50% vs. FY2010)◆Stronger efforts to develop service centers
・Numbers of new service centers for primary services

FY2010FY2011

NumberNumber ofof users
users byby service
service

FY2010FY2011(Cases)(Cases)Home care

Facility care

129,733

8,348

+7.0%

+6.1％

121,2617,867

FY2010FY2011

Care plan

673

694 (+21)

Home-visit

989

1,022 (+33)

Day-care285

294 (+9)

Hohoemi203

217 (+14)

Kirameki32

34 (+2)◆ Implementation of staff compensation improvements
・Continued to increase staff compensation
・Enhanced job-specific training to improve skills
FY2010FY2011

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

FY2010FY2011FY2011 Financial Results Briefing Document 11

Health Care Business

FY2011 Financial Results – Facility care service –（Million yen）

FY2010FY2011

1Q

2Q

3Q

4Q

Full Year

1Q

2Q

3Q

4Q

AmountAmountAmountAmountAmountAmountAmountAmountAmount (Result)

Hohoemi

3,675

3,764

7,776

3,903 19,120

4,266

4,416

4,479

4,478 17,600 17,640

Kirameki

1,176

1,316

2,831

1,483

6,808

1,622

1,653

1,644

1,674

Home

3,558

3,592

3,682

3,373 14,606

3,688

3,816

3,962

4,003 15,400 15,471

Net sales

8,410

8,673 14,290

9,160 40,535

9,578

9,885 10,085 10,155 39,600 39,705

Full Year
Amount (Forecast)

6,600

Amount (Result)

6,594

Hohoemi

483

421

1,070

473

2,440

557

647

667

596

2,450

2,467

%

13.1%

11.2%

13.8%

12.1%

12.8%

13.1%

14.7%

14.9%

13.3%

13.9%

14.0%

Kirameki

(93)

(20)

129

95

90

165

202

180

168

760

716

%

(7.9%)(1.5%)

4.6%

6.4%

1.3%

10.2%

12.2%

10.9%

10.0%

11.5%

10.9%

Home

126

111

188

239

665

116

162

265

294

960

838

%

3.5%

3.1%

5.1%

7.1%

4.6%

3.1%

4.2%

6.7%

7.3%

6.2%

5.4%

Grpss profit

515

511

1,387

809

3,196

839

1,011

1,113

1,058

4,170

4,021

%

6.1%

5.9%

9.7%

8.8%

7.9%

8.8%

10.2%

11.0%

10.4%

10.5%

10.1%

* With respect to the Ohtohen, which was previously managed by Nichii Care Palace Co., Ltd. before merger, its brand name was changed to “Nichii Home” in January 2010.
* Because of fiscal year changes of the successor companies following mergers and reorganizations, Hohoemi and Kirameki recorded six months worth of results as of the end of the third
quarter of the fiscal year ended March 2010. For the full term, these two companies recorded 15 months worth of results.
Copyright © 2011 Nichii Gakkan Company. All rights reserved.

FY2011 Financial Results Briefing Document 12

Education Business
Consolidated
Consolidated

Net sales

FY2011 Financial Results
Operating income (Million yen)

Overview of financial results for FY2011◆ Students increased particularly for 2 main courses

15,255

12,9072,992-15.4%

1,596

1,482
-50.5%

Previousstandard

FY2010FY2011FY2010FY2011

・Boosted efficiency by using e-learning for internal training

Medical Administration course◆Aggressively moved ahead with efforts to win job
training program contracts

54,12567,192

43,638-19.4%-19.4%FY2011・Developed new courses (46 courses offered as of March 31,
2011)

・Pursued efficient advertising and promotion activities toraise awareness

83,365FY2010New
standard◆Redoubled efforts to develop Web College (elearning) services(Students)

NumberNumber ofof students
students byby course
courseHome Helper course-46.7%• Home Helper Level 2 course:
67,192 students (down 19.4% year on year)• Medical Administration course:
43,638 students (down 19.4% year on year)

FY2010

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

・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)→ Recorded ¥1,628 million of commission on consignment
for job creation businesses as non-operating income

FY2011FY2011 Financial Results Briefing Document 13

Consolidated Cash Flows(Million yen)

Operating CF

Investing CF

Financing CF

Free CF

14,00012,00011,726

10,00010,988

9,795

8,000
6,000

4,393

4,000
2,000

2,772

2,337

0
(738)

(2,000)(1,802)(4,000)(4,139)(6,000)(4,518)(5,402)(8,000)(10,000)(11,607)(12,000)
FY2009 FY2010 FY2011

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

FY2009 FY2010 FY2011

FY2009 FY2010 FY2011

FY2009 FY2010 FY2011

FY2011 Financial Results Briefing Document 14

FY2012 Forecast

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

FY2011 Financial Results Briefing Document 15

FY2012 Forecast
Consolidated
Consolidated(Million y en)

FY2012FY2011
Amount (Result)
Net sales
Operating income%

Ordinary income%

Net income%

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

Amount(Forecast)

Y on Y

240,827

250,000

3.8%

7,868

9,000

14.4%

3.3%

3.6%

9,660

9,300

4.0%

3.7%

3,478

4,500

1.4%

1.8%

(3.7%)
29.4%

FY2011 Financial Results Briefing Document 16

FY2012 Key Points in the Results Outlook

1. Another record-high sales
Net sales reached record high (4 consecutive years)¥250,000 million (+3.8% year on year)
Health care¥133,400 million (+7.3% year on year)
Medical support ¥104,300 million (+1.0% year on year)

2. Three consecutive years of higher operating income¥9,000 million (+14.4% year on year)

3. Expansion of group management capabilities(1) Nichii Care Palace Co., Ltd. go into black(2) Transition to new executive management system at Nichii Carenet Co., Ltd.

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

FY2011 Financial Results Briefing Document 17

FY2012 Forecast : Net Sales and Operating Income by Business
Consolidated net sales(Million yen)

FY2011 Result
Medical Support Business
Health Care Business
Education Business
Other Businesses
Eliminations / Corporate
Total

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

FY2012 Forecast

1.0%
7.3%
(7.0)%(8.7)%
3.8%(Million yen)

FY2011 Results

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

%

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

Consolidated operating income

Medical Support Business
Health Care Business
Education Business
Other Businesses
Eliminations / Corporate
Total

year on year

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

FY2012 Forecast

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

year on year
%

5.1%
30.8%
(43.6)%
14.4%
FY2011 Financial Results Briefing Document 18

Dividend Policy

Dividend increase for 3 consecutive years
Annual dividend for FY2011: ¥14 (¥7 interim dividend + ¥7 year-end dividend)
Forecast for FY2012:¥16 (¥8 interim dividend + ¥8 year-end dividend)

(yen)

１６.０

16

１４.０
１２.０

12

１１.０

１１.０

１１.０

１１.０

’06.3

’07.3

’08.3

’09.3

8
4
0

’10.3

’11.3

’12.3 (Plan)

The Company executed a 2-for-1 common share split on April 1, 2009, and thefigures were retroactively adjusted accordingly.
Copyright © 2011 Nichii Gakkan Company. All rights reserved.

FY2011 Financial Results Briefing Document 19

Medical Support Business
Consolidated
Consolidated

Net sales

FY2012 Forecast

Operating income (Million yen)

Major issues for FY2012

104,300+1.0%

103,227

7,400
+5.1%

7,042

FY2011FY2011FY2012 (Forecast)

NumberNumber ofof contracted
contracted
medicalmedical institutions
institutions Hospitals

FY2012 (Forecast)(Cases)Clinics

8,644
1,970

8,300
-4.0%

1,955

March 31, 2012

March 31, 2011

(Forecast)
Copyright © 2011 Nichii Gakkan Company. All rights reserved.

- Reinforce comprehensive support systems for medical
institutions by expanding doctors’ office work support services
and management support products- Link to long-term care business- Undertake the project for supporting development of a system
to certify medical institutions to receive foreign patients by the
Ministry of Health, Labor and Welfare◆Continuation of the contract revision strategy for a
fourth consecutive fiscal year
- Continue to improve profit margin and staff
compensation by increasing net sales per medical institution
and gaining new contracts at appropriate pricing+0.8%March 31, 2011

◆Further strengthening of medical management support
system - Management support department established◆Gain new contracts- Strengthen sales efforts targeting private hospitals- Strengthen sales efforts targeting clinics (Everyday work andreceipt examination work)- Gain new contracts for PFI business

March 31, 2012
(Forecast)

FY2011 Financial Results Briefing Document 20

FY2012 Forecast

Health Care BusinessNet sales

Consolidated
Consolidated

Operating income (Million yen)

133,400

8,500

+7.3％

124,321+30.8％

6,500

FY2011FY2012 (Forecast)

FY2011

NumberNumber ofof users
users byby service
service(Cases)(Cases)Home care◆ Further strengthening of home-care & facility-care services- Increase the usage rate of each service facility- Improve efficiency further by boosting productivity of
individual service center and training facility- Actively open new facilities

FY2012 (Forecast)March 31, 2011

March 31, 2012 (Plan)

Care plan694

747 (+53)

Home-visit

1,022

1,085 (+63)

Day-care294

319 (+25)

Hohoemi217

240 (+23)

Kirameki34

44 (+10)

Nichii Home

48

Plan as of December 31, 2011

Facility care
136,900

129,733

Major issues for FY2012

+5.5％

8,348

49 (+1)

9,080◆ Enhancement of services not covered by insurance+8.8％- Actively develop welfare services for the handicapped andhomemaker services- Commencement of therapy service◆Actively advance home-visit nursing care services

March 31, 2011

March 31, 2012

March 31, 2011

(Forecast)
Copyright © 2011 Nichii Gakkan Company. All rights reserved.

March 31, 2012

- Strengthen development of home-visit nursing care services- Strengthen ties to existing services
Æ 100 facilities in operation three years from now(Forecast)

FY2011 Financial Results Briefing Document 21

Health Care Business

FY2012 Forecast of Facility
Care Service
F(Million yen)

4Q

Full year

FY2012
1Q+2Q Full year

AmountAmountAmountAmount

8,683

4,479

4,478 17,640

9,500 19,200

1,653

3,276

1,644

1,674

3,600

3,688

3,816

7,505

3,962

4,003 15,471

9,578

9,885 19,464 10,085 10,155 39,705 21,100 43,100

FY2011
1Q+2Q
3Q

1Q

2Q

AmountAmountAmountHohoemi

4,266

4,416

Kirameki

1,622

Home
Net sales
Hohoemi%Kirameki%Home%
Gross profit
%

6,594

Amount7,400

8,000 16,500

557

647

1,204

667

596

2,467

1,300

2,500

13.1%

14.7%

13.9%

14.9%

13.3%

14.0%

13.7%

13.0%

165

202

367

180

168

716

400

800

10.2%

12.2%

11.2%

10.9%

10.0%

10.9%

11.1%

10.8%

116

162

278

265

294

838

550

1,600

3.1%

4.2%

3.7%

6.7%

7.3%

5.4%

6.9%

9.7%

839

1,011

1,850

1,113

1,058

4,021

2,250

4,900

8.8%

10.2%

9.5%

11.0%

10.4%

10.1%

10.7%

11.4%

* Only net sales and gross profit are reported due to the mergers and restructurings of the transferred companies.

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

FY2011 Financial Results Briefing Document 22

FY2012 Forecast

Education Business
Consolidated
Consolidated

Net sales

Operating income (Million yen)

Major issues for FY2012
12,907

12,000◆ Course improvement-7.0%1) Make existing courses more attractive- Achieve further improvements in course quality

1,596
900
-43.6%FY2011FY2012 (Forecast)

FY2011FY2012 (Forecast)Net
Net sales
sales byby course
course(Million yen)

2) Enhancement of the Web College (e-learning)- Expand course offerings- Enhance development and promotion of various
learning courses- Increase awareness through effective PR activities◆ Promotion of course enrollment- Enhancement of promotion for companies & schools

Home helper course

Medical Administration course

67,19261,00043,63840,500
-7.2%

-9.2%

◆ Actively pursue job training program contracts- Actively pursue contracts of the Human
Resources Development Assistance Program(such as the subsidized job trainings and thegovernment’s support program “Study and obtain aqualification as a care worker while working at
long-term care facilities”)* Transition to job-seeker support system (scheduled for
October 2011)

FY2011FY2012 (Forecast)

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

FY2011FY2012 (Forecast)
FY2011 Financial Results Briefing Document 23

Management Strategy

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

FY2011 Financial Results Briefing Document 24

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- Childcare business, international
businesses

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

FY2011 Financial Results Briefing Document 25

Change in the Business Structure Balance -Business scale has expandedGroup-wide Sales Structure

Medical support

Health care

FY2011

FY2004

FY2001

Education¥240,827 million¥189,987 million¥114,226 million

12,907

17,443
15,504
20,34671,004

124,32196,982103,227

75,527

Health-care Business
Sales Structure
6.2％
14.2％
5.9％

31.7％
7.3％
15.7％
18.6％

6.8％
6.4％
16.9％

Facility-care services
Non-insurance services
Welfare equipment, house renovation

73.7％

58.4％

38.2％

Day careHome-visit care

FY2011 Financial Results Briefing Document 26

Medical Support: Business Strategy
Medical institutions Expand management support services(Net sales per medical institution: Thousand yen)

(Net sales: Million yen)

10,000120,000
Net sales
110,000

Net sales per medical institution
9,000

100,000
8,000
90,0007,000
80,0006,000

70,00060,0005,000
FY2001

FY2002

FY2003

Added value for medical
practice services
Medical practiceservices
Medical fee claims

FY2004

FY2005

FY2006

FY2007

FY2008FY2009FY2010FY2011

Enhancement of management support related services
2005: Start–up of Yao Medical PFI Co., Ltd. Launched hospital PFI business.
2009: Established Nichii Research Institute Co., Ltd.
2009: Began offering “DPC Revolution,” “MediClips,” and “Lifeclover” services.
2010: Made Cyber Clerk Institute Co., Ltd. into a subsidiary. Launched the “cyber clerk business.”
2011: Selected as an implementation body of the project for supporting development of a system to certify
medical institutions to receive foreign patients by the Ministry of Health, Labor and Welfare.
FY2011 Financial Results Briefing Document27

Health-care Business
October 2007 -:Took over facility-care business and stabilized income around two core operations ofhome-care services and facility-care services
Year ended March 31, 2011: Recording cumulative operating income
April 2011:
Established the Health Care Business department to enhance non-insurance services(Million yen)
15,00010,00000.4
介護保険法施行
700拠点設置

April 2000’
Long-Term Care Insurance
Law took effect
700 service centers andtraining facilities established

October 2007
’07.10Tookover facility-care
居住系介護事業承継
business
April 2003
’03.4
Revision of
報酬改定
compensation

April’06.4
2006
Long-Term Care Insurance
介護保険法改正
Law revised
報酬改定
Revisionof compensation

5,000
FY20000

FY2001

FY2002

April
2009
’09.4
Revision of
報酬改定
compensation

FY2009FY2003

FY2004

FY2005

FY2006

FY2007

FY2008FY2010FY2011FY2012(Forecast)-5,000-10,000-15,000

Operating income
Accumulated operating
income-20,000

FY2011 Financial Results Briefing Document 28

Education: Business Strategy
1968
Start-up

1980

1996

2010

Medical Administration Course
Nationwide
developmentfrom 1980

Nationwide
developmentfrom 1997

Home Helper Course
Nichii e-learning “Web College”
Public Vocational Training
Started in2010

Web College

Education Business supporting the“Education-to-Work” business model

Education Businesssupporting a society withparticipation by all
FY2011 Financial Results Briefing Document 29

Childcare: Business Strategy
Developing the Childcare Centers which Utilizing Synergies with Nichii’s Core Businesses- Promotion of the Childcare Business Using Nichii’s Management Resource Keeping Future System Design in Mind -Establishment of a new childcare system (Launch slated for 2013)[System Overview](1) Government-backed system and centralized financial support(2) Unification of nursery school and preschool services(3) Provision of diversified childcare services[Services](1) Kodomo-en (Tentative name)
This facility will do away with the barriers separating preschools, nursery schools, certified Kodomo-en, public andprivate facilities, and certified and non-certified facilities to provide both nursery school and preschool services. It isnecessary to respond to the needs for short-term and nighttime services, services for children recovering from
illnesses, etc.
(2) Small-scale childcare services
For areas with declining populations, we limit the number of children per facility to 20, consisting mainly of children
less than 3 years old. Facilities will cooperate with Kodomo-en and other facilities to provide small-scale childcare
services.
(3) Home-visit services
Nursery school services will be provided to applying users at their homes. These services will be available to families
with children recovering from illnesses or who need services within the home environment.

Copyright © 2011 Nichii Gakkan Company. All rights reserved.

FY2011 Financial Results Briefing Document 30

<Playing a Part in Innovation in the Fields of Medical and Long-Term Care>● Survey on IT Contributions to the Management Efficiency and Stability
for Long-Term Care Service Provider
Ministry of Economy, Trade and Industry <Fiscal 2010>
The Company accepted a commission to study the application of voice-recognition technology to improve
the front-line operations of long-term care facilities and ultimately improve their management efficiency andoperational stability.
The Company proceeded with studies and assessments of topics including the document creation scheme
using voice-recognition technology for business documents, possibilities for improving the front-line
operations of long-term care facilities by centralizing administrative tasks, and new job creation approaches.

● Project for supporting development of a system to certify medical
institutions to receive foreign patientsInternational Strategic Project: International Medical Exchanges <Fiscal 2012>
Ministry of Health, Labor and Welfare has been promoting a development of certification system for medical
institutions for the purpose of smoothly receiving foreign patients as part of the International Medical
Exchanges positioned as a National Strategic Project under the New Growth Strategy approved by the
Cabinet on June 18, 2010. The Company accepted a commission of the supporting business from the said
Ministry.

FY2011 Financial Results Briefing Document 31

Lakewoods Garden Himeharu no Sato
Lakewoods Garden Himeharu no Sato
Grand Opening on April 6, 2011
A park resting on the concept of bringing joy andhealing to all visitors in an atmosphere of harmony
between humankind and naturezBeautiful flowers in each season
Featuring venerable and noted species of hybrid
tea roses whose big blooms grace every season,
the Garden is the only one in Japan wherevisitors can get a good appreciation of thevariety and history of roses. There are also
German irises, cherry trees that blossom along
the banks of the lake, and an abundance ofother flowers to delight the eye, whatever theseason.

zContact with lovable dogs
Rare and beautiful species of dogs such as theAustralian Labradoodle, which has great promise
for service as a therapy dog, also await visitors at
the Garden. Don’t miss the chance to meet thesedogs and enjoy the various events staged in the
Garden!

zVisitor-friendly facilities
In keeping with the Nichii spirit, efforts weremade to condition the Garden environment toenable enjoyment with peace of mind by all
visitors including the aged and those inwheelchairs. The Garden has a room wherevisitors can rest or get first aid, and rents
wheelchairs for a fee.
Copyright © 2011 Nichii Gakkan Company. All rights reserved.

The Australian Labradoodle, a species of dog
that has excellent qualities for service as atherapy dog
The Australian Labradoodle was bred for the purpose of service asa care dog for people who are allergic to animals. Nichii uses thisspecies in the dog therapy it provides at long-term care facilities.

zFeatures and appeal of the Australian Labradoodle
Allergy-friendly
Almost no odor
Intelligent
LovingLittle shedding

Family Care Home (FCH) system
In advance of implementation of dog
therapy, a new form of care provided in its
long-term care facilities and other facilities,
Nichii instated this system to maintain thepedigree of the Australian Labradoodle, a
species of dog bred to serve as a therapy
dog. We are recruiting foster families tocooperate with breeding activities.

FY2011 Financial Results Briefing Document 32

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