www.nichiigakkan.co.jp

NICHII GAKKAN COMPANY

Financial Results Briefing Document
for the First Nine Months of the Fiscal YearEnding March 31, 2015
February 10, 2015

www.nichiigakkan.co.jp

株式会社ニチイ学館
Overview of Financial Results
2014年３月期 通期決算
for the First Nine Months of the Fiscal YearEnding March 31, 2015

参考資料

Financial Results Highlights(Unit: million yen)

FY2014 3Q

FY2015 3Q

AmountNet Sales
Operating Income%Ordinary Income%Net Income%AmountYear on Year

204,208

204,307

0.0%

5,061

4,795

(5.3%)

2.5%

2.3%-3,951

3,376(14.5%)

1.9%

1.7%

-2,3001,336(41.9%)

1.1%

0.7%

-© 2015 Nichii Gakkan Company. All rights reserved.

3

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

Net Sales
Medical Support
Long-term &Health Care
Education
OthersElimination/
CorporateTotal

FY2014 3Q

79,373
110,502
14,124
1,051(843)
204,208

Year on year

FY2015 3Q%

79,601
112,100
12,505
1,296(1,195)
204,307

0.3%
1.4%(11.5%)
23.3%
0.0%(Unit: million yen)

OperatingIncome
Medical Support
Long-term &Health Care
Education
OthersElimination/
CorporateTotal

FY2014 3Q

Year on year

FY2015 3Q%

6,110
9,947(5,163)
69(5,901)
5,061

6,874
9,642
(5,788)350(6,284)
4,795

12.5%
(3.1%)
407.9%(5.3%)© 2015 Nichii Gakkan Company. All rights reserved.

4

Major Changes in Net Sales(Unit: million yen)

+1,598- Hospital- Clinics- Existing-2,000 million yen- Language education +400 million yen+700 million yen-500 million yen

204,208

+245

+227

204,307-1,619- Home care
- Facility care
- Child care
- Health care-352-600 million yen+1,700 million yen+250 million yen+250 million yen

Increase in sales of 98 million yen
year on year
FY2014
3Q

MedicalSupport

Long-term &Health Care

Education

OtherElimination/CorporateFY2015
3Q© 2015 Nichii Gakkan Company. All rights reserved.

5

Major Changes in Operating Income(Unit: million yen)
- Existing -1,100 million yen- Language education +500 million yen

+764

-305

+281

5,061
4,795-624- Home care
- Facility care
- Child care
- Health care-382

-400 million yen+150 million yen-100 million yen+50 million yenDecrease in profit of 266
million yen year on year
FY2014
3Q

MedicalSupport

Long-term &Health Care

Education

OtherElimination/Corporate

FY2015
3Q© 2015 Nichii Gakkan Company. All rights reserved.

6Looking Back on the Third Quarter
Achievements● Progress in improving the efficiency in the medical
support business

Operating margin
Up 0.9 points year on year

8.6 ％● Rollout of services that support integrated
community care

Growth rate of sales forthe healthcare business● Aggressive acquisition of users of “Nichii Homes”
through public advertising.

Number of new facilities to bebuilt in the next fiscal year

9.1 ％
9

● Further development of COCO Juku Junior throughfranchising

Number of franchised classrooms
Up 210 classrooms year on year

facilities

272classrooms

Key measures to be taken going forward● Promotion of lecture attendance for acquiring
qualifications, strengthening of measures to secure
human resources● Enhancement of support for return-to-home care
● Pursuit of customer-oriented management at COCO
Juku, further improvement in franchising development● Promotion of the child-care business© 2015 Nichii Gakkan Company. All rights reserved.

7Enhancement of Support from Training to Employment● Provisioning of curriculum in line with actual work
● Active organization of job consultations and on-site tours● Introduction of a cashback system

Rate of students
who land jobs

UP

Rate of students
who leave jobs

DOWN

● Career support after employment■Estimate of demand for long-term care workers (Material from the Ministry of Health, Labour and Welfare)
FY2000FY2012FY2015

FY2025

1,490,000

1.67 - 1.76 million(1.64 - 1.72 million)

Note）Long-term carestaff550,000

Note)2.37 - 2.49 million(2.18 - 2.29 million)

Note: Based on the reform scenario predicated on a revised service provisioning system discussed in the Comprehensive Reform of Social
Security and Taxation. Figures in brackets are based on a scenario reflecting a projection in which the current situations are applied as they are.

[Source] Based on a ”Survey of Institutions and Establishments for Long-term Care” and “Long-Term Predictions Pertaining toMedical Services and Long-tem Care (March, 2012)” by the Ministry of Health, Labour and Welfare© 2015 Nichii Gakkan Company. All rights reserved.

8Strengthening Operations of COCO Juku Junior● Strengthening operations through franchising● Strengthening support for studying abroad● Strengthening the collaboration with JSS Corporation

3,815■Changes in the number of Coco Juku students

3,135
COCO塾ジュニア
COCO Juku Junior (incl. franchised schools)
COCO塾
COCO Juku

End
6月Jun
FY2014/3

EndSep
9月

EndDec
12月

EndMar
3月

EndJun
6月2
FY2015/3

EndSep
9月2

EndDec12月2© 2015 Nichii Gakkan Company. All rights reserved.

9Reforming Service for the Operation of Customer-oriented COCO Juku
● Revision in the way lessons are provided→ Lessons with a small number of students and one instructor● Establishment of flexible lecture courses→ Introduction of lesson points
Curriculum customization to respond to lecture needs● Revision of course settings→ Integration of lecture levels and courses→ Increasing the number of lectures for classes of thesame level© 2015 Nichii Gakkan Company. All rights reserved.

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FY2015 Earnings Forecasts(Unit: million yen)

FY2014
Result

FY2015ResultAmountYear on Year

AmountNet Sales

271,447

274,300

1.1%

Operating
Income

6,322

7,700

21.8%

2.3%

2.8%

-4,9405,70015.4%

1.8%

2.1%

-2,831

3,000

6.0%

1.0%

1.1%

-%

Ordinary
Income%Net Income%© 2015 Nichii Gakkan Company. All rights reserved.

11

Forecasts for Full Year Results
Net Sales and Operating Income by Business
Net Sales
Medical Support
Long-term & Health Care
Education
Other
Eliminations/ Corporate
Total

FY2014.3(Unit: million yen)

Year on Year

FY2015.3%

105,974
146,744
18,516
1,330(1,117)
271,447

106,200
150,400
17,7001,600(1,600)274,300

0.2%
2.5%(4.4%)
20.2%
1.1%(Unit: million yen)

Operatingincome
Medical SupportLong-term & Health Care
Education
Other
Eliminations/ Corporate
Total

Year on Year
FY2014.3

FY2015.3%

8,660
12,770(7,269)
45(7,885)
6,322

9,500
13,800(7,600)
300(8,300)
7,700

9.7%
8.1%
560.5%
21.8%© 2015 Nichii Gakkan Company. All rights reserved.

12

Purchase of Treasury Stock

Outline of Purchases (Announced on November 12, 2014)
Purpose of holding treasury stock

Type of shares to be purchased: Common stock
Total number of shares to be purchased:8,500,000 shares (upper limit)(Percentage of total number of shares issued:12.16%)

Use for M&A

Total cost of shares purchased: 6,000 million yen (upper limit)
Purchase period:
Method of purchase:

Returns to shareholders

November 13, 2014 - May 31, 2015
Purchase from the market at the Tokyo
Stock Exchange

Status of stock purchases[During the period from November 13, 2014
until January 31, 2015]

Implementation of flexible capital policy
and increased profit returns

Progress rate of share purchases(on monetary amount basis)

Changes in the Company’s stock prices[as of January 31, 2015][November 13, 2014 – February 9, 2015]
1,300

Total cost of shares purchased:
2,296,779,573 yen

Feb. 2 1,272 yen(Year high)

1,200
1,100

Total number of shares purchased:
2,426,300 shares

Approx.

38%

1,000

Nov. 13 902 yen(Commenced treasurystock purchases)

900
800

© 2015 Nichii Gakkan Company. All rights reserved.

13

Key Strategies to be Implemented
Going Forward● Promotion of globalization strategy● Strategic recruitment and developmentof human resources● Strengthening the group’s revenueearning capabilities© 2015 Nichii Gakkan Company. All rights reserved.

14

www.nichiigakkan.co.jp

株式会社ニチイ学館
2014年３月期

通期決算

Business in China参考資料

Topics 1 Establishment of Operation Bases

Building operation bases
through two strong partnerships
Partnership with the governmental sector- Conclusion of strategic alliance with the China Planning Institute on
Aging which is under direct control of the government→ Spreading high-quality and efficient long-term care services andformulation of a healthy long-term care market
Progress in the integration ofcompanies into one group company

Partnership with the private sector- Integrating local experienced Chinese companies in their respective
regions into one group company→ Reflecting the culture and needs of various regions of China inservices (community based)→ Actively promoting the business across China

12companies

School corporations under the group

5companies© 2015 Nichii Gakkan Company. All rights reserved.

16

List of companies that have been decided to be incorporated into
the group (as of February 10, 2015)
Name of company

Main business1

北京三傑聖一人力資源有限公司

Corporate management consulting Temporary staffing services

2

重慶凱爾老年公寓管理有限公司

Facility-care services

3

江門市中家家政服務有限公司

Housekeeping services

4

深圳市中家華傭家政服務有限公司

Housekeeping services

5

深圳市中家星級服務有限公司

Housekeeping services

6

深圳市中家家庭服務有限公司

Housekeeping services

7

瀋陽助尓家政服務有限公司

Home-visit care services

8

梅州市客家大嫂家政服務有限公司

Housekeeping services

9

済南仁徳家庭服務有限公司

Housekeeping services

10

広州市正祥和家政服務有限公司

Housekeeping services

Babysitting services

11

北京無憂草科技発展有限公司

Maternity care services

Babysitting services

12

常州金蓓蕾健康諮詢服務有限公司

Postnatal care services

Postnatal care center operations

Name of school

Information management
consulting

Housekeeping services

Main job training courses

1

重慶市渝北区世達培訓学校

Management consultant

2

深圳中家職業技能培訓学校

Care staff

Housekeeping service staff

3

江門市中家職業培訓学校

Care staff

Housekeeping service staff

4

梅州市華傭職業培訓学校

Care staff

Housekeeping service staff

5

無憂草東光職業培訓学校

Postnatal mother helpers

Housekeeping service staff© 2015 Nichii Gakkan Company. All rights reserved.

17

Operation areas

FY2019 Period of expansion

Heilongjiang
・HarbinChangchun
Jilin
Inner Mongolia
Autonomous Region Shenyang・Xinjiang-Uygur
Autonomous Region

Liaoning
Beijing
Gansu

Tianjin Dalian

Ninxia HuiAutonomous Region

FY2017 - FY2018

Hebei
・Shandong

Shanxi450 branches(220 cities)

Qinghai・
XianTibet
AutonomousRegion

End March 2015

Jinan

JiangsuZhengzhou
AnhuiHenan
・Changzhou
・HubeiShanghai・ HefeiWuhanHangzhou

Shaanxi
SichuanChengdu・
Chongqing・
Changsha

Jiangxi Zhejiang・

Hunan Nanchang

9 branches(9 cities)

・Fujian

GuizhouFuzhouKunming・… Operations as of theend of March 2015
… FY2017- 2018

YunnanGuangxi
Guangdongprovince・・
Guangzhou Hong Kong
NanningHainan© 2015 Nichii Gakkan Company. All rights reserved.

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Topics 2 Progress in human resources development business

Launch of pilot training for instructors End of November 2014 - Commenced consulting training courses for instructors and pilot training at job
training schools owned by local companies in China- Cultivated 39 instructors (long-term care, maternity care, baby-sitters)

Validation and training brush-up for instructors January 2015 - Validating the effectiveness of pilot training and brushing up the curriculum

Launch of training for instructors

Number of job training schools
to be opened in FY2016/3

100 schools

Approx.

- Launching full-scale instructor training that matches local culture and needs

Launch of staff training- Launching staff training after the completion of instructor training

Launch of the provisioning of various care services- Commencing the provisioning of services after the completion of staff training© 2015 Nichii Gakkan Company. All rights reserved.

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Training Images

External view of a job training school

Scenes from the cultivation of housekeeping service staff

A scene from instructor training

Scenes from the cultivation of babysitters© 2015 Nichii Gakkan Company. All rights reserved.

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Topics 3 Strengthening of Maternity Care and Babysitting Services

Social Environment in China
Childbirths are expected to increase due to the easing of the one-child policy.
→ Markets related to childbirth and child care are expected to expand.

Rate of increase in childbirths
for 2015 (estimate)

10＋％Unique Chinese Customs”座月” (Post-natal care period)→ The custom of attaching importance to the physical healing of women
through the restriction of food and action after their childbirthMarket size for maternity care“月嫂” (Women engaged in maternity care)→ Women who specialize in care for women after childbirth as well as
newborn babies at hospital and home during the post-natal care period

35 billion yuan
- Based on calculations made bythe Company

We will strengthen maternity care and babysitting services,
as well as long-term care services, positioning them as
main revenue sources, in the China business.
© 2015 Nichii Gakkan Company. All rights reserved.

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China Business –Market Size for Businesses that Support Human Activities
Development ofHuman Resources

Housekeeping
services

Maternity
Care

Child careLong-term carefor the elderly

18035205

340

billion yuanbillion yuanbillion yuanbillion yuan

The market size is expected to expand further due to such factors as the spread ofservice industries and an increase in the percentage of aged people.
- Source: 95081 “Kateiseikatsu (Home Life),” March 2013 issue,- Based mainly on the data from “Chinese Silver Market Yearbook” by Yano Research Institute and calculations made by the Company© 2015 Nichii Gakkan Company. All rights reserved.

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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
Group and will be affected by uncertain factors, including
economic circumstances, the relaxation of regulations, andemployment conditions. Please note that actual results, numbersof contracts and users, and other data may be different from theforecasts.

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