www.nichiigakkan.co.jp

NICHI GAKKAN COMPANY
For the Year Ended March 2012 (FY2012)

Financial Results Briefing Document
May 17, 2012

Information Meeting of
Financial Report for the Year
Ended March 31, 2012
President and Representative Director

Masatoshi Saito

Copyright © 2012 Nichii Gakkan Company. All rights reserved.

FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料1

Overview of Financial Results

1. FY2012 Overview of Financial Results
1) FY2012 Financial Results2) Overview of FY2012
3) FY2012 Net Sales and Operating Income by Business
4) Factors of Changes in Net Sales and Operating Income
5) FY2012 Financial Results by Business6) Consolidated Cash Flows

P4
P5
P6
P7
P8-11
P12

2. FY2013 Forecast
1) Management Strategy 1-42) Strategy by Business
3) Strategic Investment 1-44) FY2013 Forecast
5) FY2013 Key Points in the Results Outlook
6) FY2013 Forecast Net Sales and Operating Income by Business
7) Factors of Changes in Net Sales and Operating Income8) 2012 Revisions to Long-Term Care Compensation
9) Returns to Shareholders

Copyright © 2012 Nichii Gakkan Company. All rights reserved.

P14-17
P18
P19-P22
P23
P24
P25
P26
P27
P28

FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料2

FY2012 Overview of Financial Results

Copyright © 2012 Nichii Gakkan Company. All rights reserved.

FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料3

FY2012 Financial Results(Unit: Million yen)

Consolidated
Consolidated

FY2011FY2012

AmountNet sales
Operating income%

Ordinary income%

Net income%<Reference>
Comprehensive
income%Copyright © 2012 Nichii Gakkan Company. All rights reserved.

AmountYear on Year

240,827

257,340

6.9%

7,868

11,672

48.3%

3.3%

4.5%

9,660

12,674

4.0%

4.9%

3,478

5,897

1.4%

2.3%

3,375

5,933

1.4%

2.3%

31.2%
69.5%
75.8%

FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料4Overview of FY2012
1. Net sales reached another record high (for 4 consecutive years)
1) Revenue growth trend continued at Health Care Business・Solid growth in number of users for each service
・Fiscal year-end of Nichii Care Palace Co., Ltd. (Nichii Home) changed from Dec. to Mar.
Results recorded for 15-month period from January 2011 to March 2012
2) Expanded Education Business by making GABA as a consolidated subsidiary

2. Operating income exceeded ¥10.0 billion, profit growth for 3 consecutive years
1) Operating income:Exceeded ¥10.0 billion for the first time since FY2004 (Company’s 3rd highest)
Large profit growth on improved operational efficiency at main businesses
2) Net income: ROE 10.8% (up 3.9% year on year)3) Operating cash flow: A record ¥16,128 million

3. Strengthening of group management capabilities with new management
structure
1) Earnings contribution from GABA from 3Q
2) Launched business development in China by NICHII CARENET COMPANY andestablishing Riyi Fuli Qiju Maoyi (Shanghai) Co., Ltd. in China
3) Nichii Care Palace Co., Ltd. (Nichii Home) achieved full-year profitability
Copyright © 2012 Nichii Gakkan Company. All rights reserved.

FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料5

FY2012 Net Sales and Operating Income by Business
Consolidated net sales
FY2011 Result

FY2012 Result

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

103,301
138,493
15,451
1,427(1,333)257,340

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

Consolidated operating income
FY2011 Result FY2012 Result
Medical Support Business
Health Care Business
Education Business
Other Businesses
Eliminations / Corporate
Total
Copyright © 2012Nichii Gakkan Company. All rights reserved.

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

8,547
10,142715(334)(7,397)
11,672(Unit: Million yen)
Year on Year
Change%74
14,172
2,544
(215)
(62)
16,513

0.1%
11.4%
19.7%
(13.1%)
6.9%(Unit: Million yen)
Year on Year
Change

1,505
3,642
(881)
(266)
(196)
3,804

%

21.4%
56.0%
(55.2%)
48.3%

FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料

6Factors of Changes in Net Sales and Operating Income (Year on Year)Net sales

Effect from change of fiscal Health Careyear-end at Nichii Care
+14,172
Palace approx. + ¥4.2 billion

Hospitals approx. + ¥0.5 billion
Clinics approx. - ¥0.45 billion

２４０,８２７

Education+2,544

Other-215

Eliminations /Corporate-61(Unit: Million yen)

GABA made wholly owned subsidiary
approx. + ¥4.5 billion (of 6 months)

MedicalSupport+73

Medical Administration course approx. - ¥0.2 billion
Home Helper course approx. - ¥0.8 billion

２５７,３４０Home care approx. + ¥6.7 billion
Facility care approx. + ¥3.3 billion+ ¥16,513 million (6.9%) year on year
FY2011
Effect from change of fiscal year-end at
Nichii Care Palace approx. + ¥0.2 billion

Operating income

MedicalSupport
+1,504

Health Care
+3,642

Education-880

FY2012
Other-265

Eliminations /Corporate-196(Unit: Million yen)

GABA made wholly owned subsidiary
approx. + ¥0.6 billion (of 6 months)

１１,６７２
７,８６８+ ¥3,803 million (48.3%) year on year
FY2011
Copyright © 2012 Nichii Gakkan Company. All rights reserved.

FY2012FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料

7

Medical Support Business FY2012 Financial Results
Consolidated
Consolidated ■Net
■Net sales
sales ■Operating■Operating income
income(Unit:(Unit: Million
Millionyen)
yen)

103,301
103,227

+0.1％

8,547
+21.4％

7,042

Overview of Financial results for FY2012◆Hospital sales rose on efforts to stabilize earnings
・Sales growth maintained on expansion of business withhospitals under contract

・New contracts acquired, mainly with private hospitals
Received contracts for services related to revisions to medical
service fees
⇒No. of hospitals under contract: up 35 cases year on year

◆Progress in contract revision strategy
FY2011FY2012FY2011FY2012

NumberNumber ofof contracted
contracted medical
medical institution
institution(Unit:(Unit: Cases)
Cases)■■ Hospitals
Hospitals■■ Clinics
Clinics andand otherother・Continued increases in staff compensation
・Higher profitability through improved operational efficiency⇒Operating income + ¥1,505 million (+21.4%) year on year

◆Expanded management support services
8,644

8,441
-2.3％

1,990
+1.8％

・Expanded international medical exchange services

1,955

FY2011・Developed and offered new products
Medical care market survey services, patient satisfaction
survey services, etc.

FY2012

Copyright © 2012Nichii Gakkan Company. All rights reserved.

FY2011FY2012

Collaboration with language business to support medical
institutions
Received contract to support development of Ministry of
Health, Labour and Welfare’s system to certify medical
institutions to receive foreign patients
FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料8

Health Care Business

FY2012 Financial Results

Consolidated
Consolidated ■Net
■Net sales
sales ■Operating■Operating income
income(Unit:(Unit: Million
Million yen)yen)

138,493

10,142+56.0％+11.4%

Overview of financial results for FY2012◆Expansion of Home care and Facility care Services
・Increase in the number of service users
・Aggressive service center development

124,321

Including
non-insured services¥11,153 million

FY2011FY2012

NumberNumber ofof users
users byby service
service■■ HomeHome care
care

6,500
Including
non-insured services¥1,550 million

FY2011FY2012(Unit:(Unit: Person)
Person)■■ Facility
Facility care
care

9,189
+10.1％

129,733

FY2011FY2012Care plan694

737 (+43)

Home-visit long-term
care

1,022

1,062 (+40)

Home-visit nursing care2

23 (+21)Day-care294

326 (+32)

Hohoemi217

241 (+24)

Kirameki34

42 (+8)

Nichii Home48

50 (+2)◆Earnings contribution from Nichii Care Palace

137,030+5.6%

No. of facilities

・Achieved full-year profitability, earnings
recorded of 15 months
Net sales ¥20,369 million; Operating income ¥369 million(Including 3-month portion: ¥4,214 million / ¥214 million)◆Strengthened services not covered by insurance
・The number of users of welfare services for the handicappedsurpassed 10,000
・FY2012 operating margin for non-insured services: 13.9%(Composition to Health care business operating income: 15.3%)

8,348◆Preparations to develop welfare equipment
wholesale business in China
FY2011FY2012

Copyright © 2012 Nichii Gakkan Company. All rights reserved.

FY2011FY2012・Established Riyi Fuli Qiju Mayoi (Shanghai) Co., Ltd., in
February 2012
FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料9FY2012 Financial Results - Facility care service -Health Care Business(Unit: Million yen)

FY2011FY2012

2Q

Full Year

2Q

Full Year

AmountAmountAmountRevised Forecast

Amount (Result)

Hohoemi

8,683

17,6409,479

19,40019,480Kirameki

3,276

6,594

3,560

7,400

7,350

Home

7,505

15,471

7,940

16,40020,369Net sales

19,46439,70520,98043,20047,200

Hohoemi

1,204

2,467

1,580

3,100

3,314

%

13.9%

14.0%

16.7%

16.0%

17.0%

Kirameki

367

716

403

700

723

%

11.2%

10.9%

11.3%

9.5%

9.8%

Home

278

838

554

1,600

2,010

%

3.7%

5.4%

7.0%

9.8%

9.9%

Gross profit

1,850

4,021

2,539

5,400

6,048

9.5%

10.1%

12.1%

12.5%

12.8%

%
Copyright © 2012Nichii Gakkan Company. All rights reserved.

FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料10

FY2012 Financial Results

Education Business

Consolidated
Consolidated ■Net
■Net sales
sales ■Operating■Operating income
income15,451
12,907+19.7％(Unit:(Unit: Million
Million yen)
yen)◆Students increased particularly for 2 main courses

Languagebusiness¥4,540 million

・Home Helper Level 2 course:
Languagebusiness¥603 million

1,596

715
-55.2％FY2011FY2012FY2011

NumberNumber ofof students
students byby course
courseFY2012(Unit:(Unit: Person)
Person)■Home■Home Helper
Helper Level
Level 22 ■Medical■Medical Administration
Administration ■Language■Language-11.1％

43,638 35,494-18.7％

Beforemakingsubsidiary

After making
subsidiary
6 monthaverage

18,81018,011 +4.4％

FY2012

59,748 students (down 11.1% year on year)
・Medical Administration course:
・ 35,494 students (down 18.7% year on year)◆Full-fledged entry into language business・Made GABA Corporation a wholly owned subsidiary・Solid growth in the number of clients
18,810 (up 4.4% year on year)⇒Contributing to earnings stabilization
Net sales ¥4,540 million, Operating income ¥603 million◆Strengthened development and expansion of new
courses・Redoubled efforts to develop Web College (e-learning courses)
・Developed and expanded Dispensing Pharmacy Administration
Course67,192 59,748

FY2011

Overview of financial results for FY2012

FY2011FY2012

Copyright © 2012 Nichii Gakkan Company. All rights reserved.

FY2010 3Q◆Aggressively pursued job training program contracts
・Pursued contracts for public job training programs, “Study andobtain a qualification as a care worker while working at long-termcare facilities” program by Ministry of Health, Labor and Welfare
and subsidized job training programs(shifted to job-seeker support system in October)

FY2012FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料11Consolidated Cash Flows(Unit: Million yen)

Operating CF

Investing CF

Free CF

Financing CF

16,12816,00014,00012,00010,00011,726

10,988
9,795

8,000
6,000

4,392

4,000

3,077

1,911

2,000
0
(2,000)(738)(4,000)(6,000)(4,518)(5,402)(8,000)(10,000)(11,607)(12,000)(14,217)
FY2010 FY2011 FY2012

Copyright © 2012 Nichii Gakkan Company. All rights reserved.

FY2010 FY2011 FY2012

FY2010 FY2011 FY2012

FY2010 FY2011 FY2012

FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料12

FY2013 Forecast

Copyright © 2012 Nichii Gakkan Company. All rights reserved.

FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料13

Management Strategy 1

Management Targets

Achieve stable and long-term growth by expanding areas ofbusiness and strengthening management base
FY2013: New Strategic investment for stable growth
FY2014 and beyond: Aiming for stable growth by investment recovery
in existing and new businesses

Management Indicate as Target
FY2012Medium- to Long-Term Target

Net sales growth 6.9% year on year

Double-digit growth of net sales
year on year

Operating margin 4.5%
ROE 10.8%

Copyright © 2012 Nichii Gakkan Company. All rights reserved.

Operating margin 7% or higher
ROE 15% or higher
FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料

14

Management Strategy 2 Management Issues and Responses (FY2000–FY2012)
Review of Management Issues and Responses During Rapid Growth Period from FY2000 to
FY2012
FY2000 Net sales ¥92,178 million Operating income ¥5,143 million
FY2012 Net sales ¥257,340 million Operating income ¥11,672 million

Issue

Response
・Revision of contracts for medical support services

Profitability

・Expansion of services not covered by long-term care insurance
Risk from
regulatory changes

FY2012: Net sales ¥11,153 million (8.1%); Operating income ¥1,550 million (15.3%)

・Expansion of total long-term care service menu

*Figures in parentheses arecomposition ratio to Health Care business.

FY2001: 6 services
FY2012: 15 services

・Make Health care business as 2nd pillar of internal growth and achieve high growth through M&A
FY2001: Net sales ¥20,346 million; Number of facilities 749
FY2012: Net sales ¥138,493 million; Number of facilities 1,285

Growth・M&A
July 1999: Healthy Life
November 2007: COMSN
September 2011: GABA

Risk frommacroeconomic changes

Group strength

・GABA becoming subsidiary reduced macroeconomic risk at Education Business, but issues remain
FY2004: Net sales ¥17,443 million; Operating income ¥3,093 million
FY2006: Net sales ¥13,559 million; Operating income - ¥ 2,419 million
FY2010: Net sales ¥15,255 million; Operating income ¥ 2,922 million

・Increase of subsidiaries which contribute to earning ; Nichii Care Palace, GABA and others
FY2011 Consolidated-parent ratio: Net sales 1.08; Operating income 0.93
FY2012 Consolidated-parent ratio: Net sales 1.12; Operating income 1.06

Issues remain at Education Business
Copyright © 2012 Nichii Gakkan Company. All rights reserved.

FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料15

Management Strategy 3 Issues by BusinessRestructuring of Education Business essential for earning stabilization
Medical Support:
Profit level recovering

Health Care:
Profit level rising

Education:
Large profit fluctuation

FY2012 operating margin
8.3%
FY2011 operating margin
6.8%

FY2012 operating margin
7.3%
FY2011 operating margin
5.2%

FY2012 operating margin
4.6%
FY2011 operating margin
12.4%

Average operating income margin(10 years) 10.5%

Average operating income margin(10 years) 2.3%

Average operating income margin(10 years) 6.2%

■Operating income by business
Education

20％

Medical Support
Health Care

10％

0％
1
FY2002

2
FY2003

3
FY20044FY20055FY20066FY20077FY20088FY20099FY201010FY201111
FY2012-10％-20％

Copyright © 2012 Nichii Gakkan Company. All rights reserved.

FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料

16

Management Strategy 4 Positioning of Respective Business and Issues
Going Forward
Growth rate

Health Care
Enhance earning strength

Resolve issues to achieve

Avoid regulatory risk

stable and long-term growth

Education

MedicalSupportStabilize earnings

Enhance growth strength

Eliminate macroeconomic risk

Further enhance earning strength

Profit margin
Copyright © 2012 Nichii Gakkan Company. All rights reserved.

FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料

17Strategy by Business
Medical Support Increase growth and profitability by strengthening management
support services development

Existing

Strengthen human resource base, further raise
operational efficiency

Health Care

New Businesses

Proactively open facilities

Expand non-insured services
New Businesses

Strengthen collaboration between medical
facilities and long-term care through home-visit
nursing

Education・Welfare services for the handicapped
・Daily life support services
・Private brand products, etc.

Raise growth and profitability by developing new courses inlanguage business

Strengthen job training support function
Existing(collaboration with regional medical facilities,
international medical exchanges, etc.)

Raise profitability and avoid regulatory risk by strengthening
development of non-insured services

Raise facility utilization, operational efficiency
Existing

Strengthen development of total
management support services

Review curricula
Develop courses that address regulatorychanges

Copyright © 2012 Nichii Gakkan Company. All rights reserved.

Strengthen language business development
New Businesses

Develop and expand lifelong learning,professional accreditation courses

FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料18

Strategic Investment 1 Purpose of Investment- Stable and Long-Term Growth Strengthen position in language school market, where stable growthis forecast, to bolster competitiveness and earnings strength

1. Pursue synergies between businesses
Use strategic investment to organically connect businesses and deploy competitive advantages
1) Combination of Language and child care (English conversation lessons for children)2) Combination of Language and medical support (international medical exchanges)3) Combination of Long-term care and child care (increase facility utilization, raise customer
satisfaction)

2. Avoid macroeconomicrisks■Change in operating income by respective types in(Unit: Million yen) education business

4,000

GABA
Existing Course

3,000
2,000
1,000

Address issues at Education Business
1) Enhance earnings strength2) Address macroeconomic (hiring trend) risks

0(1,000)(2,000)(3,000)GABA results for FY2011: from Jan. to Dec.
FY2007

Copyright © 2012 Nichii Gakkan Company. All rights reserved.

FY2008FY2009FY2010FY2011FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料19

Strategic Investment 2 Language Business Going forward

Expand business scale by cultivating group lesson market
Expansionofbusiness
scale【Initiatives】●Strengthen development of Nichii’s COCO Juku group lessons
Aiming for nationwide rollout during FY2013
Increase efficiency utilizing management resources like Web College●Work with SELC language school to strengthen study abroad support
structure and build structure for supplying instructors
Strengthen group structure through development in North America, United Kingdom, etc.

●Develop and provide global human resources
Guide students and graduates to Nichii’s businesses

Enter a group lesson market, strengthen development
Roll out and strengthen nationwide development of COCO Juku

Built study abroad
留学支援
support structure●●●体制構築(with SELC)

Strengthen
collaboration

Entered one-on-one
lesson market (madeGABA a subsidiary)
2H FY2012
Copyright © 2012 Nichii Gakkan Company. All rights reserved.

Strengthen study abroad support structure(Australia, North America, United Kingdom, etc.)

Strengthen one-on-one lesson development(Enhancement of marketing, promotional campaigns)
FY2013

FY201X
FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料20

Strategic Investment 3 Cultivate Language Education Market

Spur innovation in Japan’s language education market

Cultivate and create language
education markets

・Medical institution staff

Foreign language school market¥303.3 billion (FY2010)・Foreign language schools for adults
Group lessons, one-on-one, and businesses

・Children, preschool English conversation
marketReplace existing
services
Copyright © 2012 Nichii Gakkan Company. All rights reserved.

→

Develop classes
to meet customer
needs

Job training
support・ Students
・ Senior citizens・ Schools for children andpreschoolers

Provide more
services to existingcustomers→ Cultivate, expand → Create new markets
new customer base
FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料21

Strategic Investment 4 Background behind full-fledged entry into language education market

Diversification

Activation

・Make education businessthe 3rd pillar
・Secure earnings source

・Reduce macroeconomic risk

・Expand education course
lineup・Go into prospective businessfields・Nationwide network

Sophistication
Copyright © 2012 Nichii Gakkan Company. All rights reserved.

・Revitalize existing businesses
Medical support, International medical exchanges,
Health care, English conversation lessons for seniorcitizens, Child care, Preschool English programs

Main Business’s customer bases

・Multiple utilization ofmanagement resources
Utilization
FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料22

FY2013 Forecast

Consolidated
Consolidated(Unit: Million yen)

FY2012
Amount(Result)

FY2013
AmountYear on Year
(Forecast)

Net sales

257,340

274,000

6.5%

Operating income

11,672

11,400(2.3%)

4.5%

4.2%

12,674

11,000

4.9%

4.0%

5,897

5,800

2.3%

2.1%

%

Ordinary income%

Net sales%

Copyright © 2012 Nichii Gakkan Company. All rights reserved.

(13.2%)(1.6%)FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料23

FY2013 Key Points in the Results Outlook

1. Strategic investment for stable, long-term growth・Invest in education, language business – develop nationwide
group lesson business through COCO Juku

2.Another record-high net sales (up 6.5% year on year)
・Health care business (up 3.4% year on year)
Increase the number of users in respective services
・Education business (up 72.1% year on year)
Full contribution from business results of GABA and beginning ofcontribution from COCO Juku

3. Intentional profit decline resulting from strategic
investment (down 2.3% year on year)
・Temporary profit decline from upfront investment for nationwide
rollout of language education business
Copyright © 2012 Nichii Gakkan Company. All rights reserved.

FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料24

FY2013 Forecast Net Sales and Operating Income by Business
Consolidated net sales(Unit: Million yen)

FY2012 Results

FY2013 Forecast

103,301
138,493
15,451
1,427(1,333)257,340

103,800
143,200
26,6001,400(1,000)274,000

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

Consolidated operating income

Medical Support Business
Health Care Business
Education Business
Other Businesses
Eliminations / Corporate
Total
Copyright © 2012 Nichii Gakkan Company. All rights reserved.

FY2012 Results

FY2013 Forecat

8,547
10,142715(334)(7,397)
11,672

7,900
10,000700
0(7,200)11,400year on year
%

0.5%
3.4%
72.1%
(1.9%)
6.5%(Unit: Million yen)year on year%

(7.6%)(1.4%)(2.2%)(2.3%)FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料

25Factors of Changes in Net Sales and Operating Income (Year on Year)Child care
+ ¥0.2 billion

Net sales

Education+ ¥5.65 billion

MedicalSupport+ ¥0.5 billion

Health care
+ ¥4.5 billion

Other- ¥ 0 billion

Eliminations/
Corporate+ ¥0.3 billion(Million yen)

COCO Juku+ ¥5.5 billion
Medical Support approx. ¥ - billion
Health care approx. + ¥0.2 billion

Home care approx. ¥4.5 billion
Facility care approx. ¥ - billion

274,000

Education (Exclude GABA) approx. + ¥1.2 billion
GABA approx. + ¥4.45 billion

２５７,３４０+ ¥16,660 million (6.5%) year on year
Other
Health care + ¥0.3 billion+ ¥0.95 billion

FY2012

Operating income
Education Medical Support+ ¥0.7 billion + ¥0.1 billion

FY2013Eliminations / COCO Jukurelated
Corporate+ ¥0.2 billion investment- ¥2.2 billion

Education approx. - ¥0.7 billion
Medical Support approx. - ¥0.65 billion
Health Care approx. - ¥0.8 billion

１１,６７２

Education (Exclude GABA) approx. + ¥0.35 billion
GABA approx. + ¥0.35 billion(Million yen)Child carerelated
investment- ¥0.35 billion

Medical Support approx. - ¥0.1 billion
Health Care approx. - ¥0.25 billion

11,400- ¥272 million (-2.3%) year on year
FY2012
Copyright © 2012 Nichii Gakkan Company. All rights reserved.

FY2013
FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料26

2012 Revisions to Long-Term Care Compensation
Revisions
Under the 2012 revisions, compensation for long-term care services was revised as follows, based on
improved compensation for care workers, lower prices, business conditions for care workers, andmoves toward regional comprehensive care:
Revision to long-term care compensation: +1.2% (home +1.0%, facility +0.2%)(As a result of the improved compensation for care workers factored into compensation for long-term cares services:-0.8%)

Main Points●Review of compensation prices
Review of prices for each service
Regional portion: Review based on civil service pay scale
Time portion: Review of time portion in calculation of compensation for home-visit and day-care services●Strengthening of home care through collaboration between medical institutions

and long-term care services
Introduction of 24-hour local patrols, on-demand home visits, strengthen home-visit care
●Shift to higher compensation paid to long-term care workers
Higher compensation paid to long-term care workers, which had been implemented to March 2012 to improvelabor conditions, was factored into long-term care compensation.
●Promoting prioritization, efficiency
Strengthening preventive care and services that prevent symptom aggravation, increase efficiency in long-termcare services
Copyright © 2012 Nichii Gakkan Company. All rights reserved.

FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料27

Returns to Shareholders

４．株式情報“Stable and continuous returns” is our basic principle
In anticipation of record profit going forward, dividend increase for 4 consecutive years

Forecast for FY2013: ¥18 (¥9 interim dividend + ¥9 year-end dividend)
(yen)

20

１８.０
１６.０

16
12

１４.０
１１.０

１１.０

１１.０

１１.０

FY2006

FY2007

FY2008FY2009

１２.０

8
4
0

FY2010FY2011FY2012FY2013 (Forecast)*The Company executed a 2-for-I common share split on April 1, 2009, and the figures were retroactively
adjusted accordingly.
Copyright © 2012 Nichii Gakkan Company. All rights reserved.

FY2012２０１２年３月期
Financial Results
Briefing Document
通期決算説明会資料28

All the profit targets and other forecasts, including the number ofcontracts, number of users, and goals contained in thisdocuments, are based on the current information available to the
Nichii Group. Such information is subject to the influence of factors
such as economic circumstances, relaxation of regulations andemployment conditions. Please understand that actual businessperformance and other achievements, such as the number ofcontracts and number of users, may be substantially different form
the forecasts.

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