Financial Results for the Year Ended March 31, 2018 (J-GAAP)May 11, 2018
Name of listed company: NICHIIGAKKAN CO., LTD.
Listed on:
Tokyo Stock Exchange 1st Section
Securities code:
9792
URL:
http://www.nichiigakkan.co.jp
Representative:
Nobusuke Mori, President and COO
Contact:
Kazuya Shiiya, Executive Officer, Acting Division Director Accounting Division
Scheduled date to hold the ordinary general meeting of shareholders: June 26, 2018
Scheduled date to start dividends distribution:
June 27, 2018
Scheduled date for filing annual financial report:
June 27, 2018
Supplementary materials prepared: Yes
Results information meeting held: Yes (for institutional investors and financial analysts)

TEL: 03-3291-2121(Figures shown are rounded down to the nearest million yen.)
1. Consolidated financial results for the year ended March 31, 2018(April 1, 2017 – March 31, 2018)(1) Consolidated operating results(Percentage figures represent changes from the previous year.)
Profit attributable to owners
Net Sales
Operating Income
Ordinary Incomeof parent
Million yen%
Million yen%
Million yen%
Million yen%
283,767
2.6
7,630
81.4
3,628
153.9
854
Year ended March 31, 2018（39.1）
276,659
1.1
4,206
1,429
―
1,403
―
Year ended March 31, 2017―
(Note) Comprehensive income: Year ended March 31, 2018: 1,080 million yen (64.7%)
Year ended March 31, 2017: -655million yen (－%)
Net Income
Diluted Net Income
Ordinary Income toOperating Income to
Return on Equity
per Shareper Share
Total Assets
Net Sales
Yen
Yen
%
%
%
Year ended March 31, 2018
13.31
13.27
2.3
1.9
2.7
Year ended March 31, 2017
21.86
21.84
3.8
0.8
1.5
Reference: Equity-method investment profit (loss): Year ended March 31, 2018: 60 million yen Year ended March 31, 2017: 55 million yen(2) Consolidated financial position
Total Assets
Net Assets
Equity Ratio
Million yen
Million yen%
As of March 31, 2018190,243
37,656
19.1
As of March 31, 2017
191,708
37,924
19.1
Reference: Shareholders’ equity: Year ended March 31, 2018: 36,363 million yen Year ended March 31, 2017: 36,592 million yen

Net Assets per ShareYen
566.48570.05(3) Consolidated cash flows

Year ended March 31, 2018Year ended March 31, 2017

Cash Flows from Operating Cash Flows from Investing Cash Flows from Financing Cash and Cash Equivalents at
Activities
Activities
Activities
End of Year
Million yen
Million yen
Million yen
Million yen
15,802(1,897)(11,792)
18,267
16,1899,379(3,567)（4,246）

2. Dividends
Annual dividends
1Q-endYen

2Q-end3Q-endYen

Year-end

AnnualYear ended March 31, 2017
Year ending March 31, 2018

—
—

Yen
11.00
11.00

—
—

Yen
11.00
11.00

Yen
22.00
22.00

Year ending March 31, 2019 (forecast)

—

15.00

—

15.00

30.00

Total Dividends
Paid (annual)

Payout Ratio(consolidated)

Dividends to Net
Assets(consolidated)

Million yen
1,412
1,412

%
100.6
165.3

%
3.8
3.9

30.6

3. Forecast of consolidated financial results for the year ending March 31, 2019(April 1, 2018– March 31, 2019)(Percentage figures represent changes from previous year for full year figures and from same period of previous year for interim period figures.)
Profit attributable to owners Net Income per
Net Sales
Operating Income
Ordinary Incomeof parent
ShareMillion yen%
Million yen%
Million yen%
Million yen%
Yen
First six months
151,800
7.3
5,000
33.2
2,800
54.2
1,400
52.3
21.81
Full year
314,500
10.8
14,70092.7
10,500
189.4
6,300
637.3
98.14

－

1 －

* Notes(1) Changes in subsidiaries during the fiscal year (Changes in specified subsidiaries resulting in changes in scope of consolidation): None
(2) Changes in accounting policies, changes of accounting estimates and restatement
1) Changes in accounting policies due to revisions of accounting standards, etc.: None
2) Changes in accounting policies due to reasons other than those stated in 1): None
3) Changes in accounting estimates: None
4) Restatement: None
(3) Number of shares outstanding (common stock)1) Number of shares issued and outstanding (including treasury stock)
Year ended March 31, 2018
73,017,952
2) Number of treasury stockYear ended March 31, 2018
8,825,572
3) Average number of shares issued and outstanding in each period
Year ended March 31, 2018
64,192,894

Year ended March 31, 2017:

73,017,952

Year ended March 31, 2017:

8,825,656

Year ended March 31, 2017:64,192,407(Reference) Overview of the non-consolidated business results
1. Non-consolidated financial results for the year ended March 31, 2018(April 1, 2017– March 31, 2018)(1) Non-consolidated operating results(Percentage figures represent changes from previous year.)
Net Sales
Operating Income
Ordinary Income
Net Income
Million yen%
Million yen%
Million yen%
Million yen%
Year ended March 31, 2018
243,588
1.6
6,241
76.2
4,939
87.1
3,300
8.4
239,776
0.4
3,542
2,639
3,044
Year ended March 31, 2017―――
Net Income
per Share
Yen
Year ended March 31, 2018Year ended March 31, 2017

51.41
47.43

Diluted Net Income per
Share
Yen
51.27
47.38

(2) Non-consolidated financial position
Total Assets
Million yen
As of March 31, 2018
148,872
As of March 31, 2017
150,839
Reference: Shareholders’ equity: As of March 31, 2018: 42,276 million yen

Net Assets
Equity Ratio
Million yen%
42,83728.4
40,92226.8
As of March 31, 2017: 40,390million yen

Net Assets per ShareYen
658.59629.21

2. Forecast of non-consolidated financial results for the year ending March 31, 2019(April 1, 2018 March 31, 2019)(Percentage figures represent changes from previous year for full year figures and from same period of previous year for interim period figures.)
Net Income per
Net Sales
Operating Income
Ordinary Income
Net Income
Share
Million yen%
Million yen%
Million yen%
Million yen%
Yen
First six months
130,200
7.0
4,300
42.2
3,900
45.6
2,700
40.2
42.06
Full year
268,700
10.3
12,10093.9
10,800
118.6
7,600
130.3
118.39* Summaries of financial results are not subject to audit.
* Explanation concerning the appropriate use of financial result forecasts and other special notes
The above forecasts are based on information Nichii Gakkan had as of the time this report was prepared and on certain assumptions judged to be reasonable.
Various factors may cause actual results to differ significantly from forecasts. Please refer to the disclaimers, provided under“(1) Analysis of business results”
of “1.Analysis of business results and financial position” on page 4 of the attached document, regarding the assumptions upon which forecasts are based andthe use of forecasts.

－

2 －○Table of Contents for the Attached Document
1. Overview of Business Results, Etc. ………………………………………………………………………………………………………

4(1) Analysis of business results …………………………………………………………………………………………………………

4(2) Analysis of financial position ………………………………………………………………………………………………………

8(3) Basic principles of profit distribution and dividends for the fiscal year under review and the next fiscal year ………………………

8(4) Business and other risks …………………………………………………………………………………………………………………

9

2. Overview of Nichii Group …………………………………………………………………………………………………………………

12

3. Basic Approach to Selection of Accounting Standards ……………………………………………………………………………………

17

4. Consolidated Financial Statements and Major Notes ………………………………………………………………………………………

18(1) Consolidated balance sheets ……………………………………………………………………………………………………………

18(2) Consolidated statements of income and comprehensive income ………………………………………………………………………

21(3) Consolidated statements of changes in net assets ………………………………………………………………………………………

24(4) Consolidated statements of cash flows …………………………………………………………………………………………………

26

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3 －

1. Overview of Business Results, Etc.
(1) Analysis of business results1) Overview of business results
NICHIIGAKKAN CO., LTD., (the “Company”) has been striving to build a solid business promotion system by pursuing
improvements in the business profit structure in a group-wide effort to realize its vision and ensure stable long-term profit
growth.
On December 1, 2017, Nobusuke Mori (formerly the Executive Vice President) acceded to the role of President and COO.
Under a new business management system, efforts were made to strengthen area management and improve productivity bycontinuously implementing initiatives for realizing Nichii’s Vision.
Business results for the fiscal year under review are as follows.
Net sales were 283,767 million yen (compared with 276,659 million yen in the previous fiscal year). Operating income was
7,630 million yen (compared with 4,206 million yen in the previous fiscal year).
Net sales increased 2.6% year on year, led by the Long-Term Care Business and the Childcare Business.
In the Long-Term Care Business, the number of users of residential care services remained stable, and in the Childcare
Business, the opening of new childcare centers made progress, mainly helped by corporate-run childcare centers that were
promoted by the government with the aim of reducing the number of children on nursery school waiting lists. Thesedevelopments contributed to the rise in sales.
Operating income increased 81.4% year on year, led by the Medical Support Business, where our efforts for proper contracts
and an improvement in operations at contracted medical institutions were successful, and the Long-Term Care Business,
which undertook continuous reviews in order to achieve efficient personnel placement and improved operational efficiency.
(Overviews by business segment)
Results by business segment are as follows.
<Medical Support Segment>
Net sales were 107,337 million yen (compared with 108,322 million yen in the previous fiscal year). Operating income was
8,876 million yen (compared with 8,012 million yen in the previous fiscal year).
We strengthened the foundation of human resources by improving the treatment and work environment of medical
administration staff and made efforts to achieve proper contracts at medical institutions by improving the quality of ouroperations. We also worked to expand and enhance operations at medical institutions by proposing diverse, high value-added
services and systems including a range of management support services in anticipation of revisions of medical service fees.
Because the number of contracts and the number of students in medical administration courses remained weak in the Clinic
Department, sales declined in the Medical Support Business as a whole. Profits increased thanks to progress in our efforts toachieve proper working hours through improvements in operational efficiency and productivity and the acquisition of proper
contracts from medical institutions.
<Long-Term Care Segment>
Net sales were 148,122 million yen (compared with 144,346 million yen in the previous fiscal year). Operating income was
14,516 million yen (compared with 11,183 million yen in the previous fiscal year).
To build a system for stably providing appropriate services in each area, we worked to ensure and retain human resources toprovide long-term care services by improving their treatment and enhancing and publicizing various systems.
In at-home type care services, while the number of users declined, spending per customer rose due to the impact of theincreased subsidy for improving the benefits of care staff and the enhanced response to moderate-severe persons.
In residence type care services, the number of users remained stable as a result of focusing on active sales activities andcampaigns, etc., and sales rose in the Long-Term Care Segment as a whole. Profits increased due to a rise in occupancy rates
at residence type care facilities and the contribution of improved operational efficiency on the business frontlines.
<Childcare Segment>
Net sales were 9,363 million yen (compared with 5,940 million yen in the previous fiscal year). Operating loss was 564
million yen (compared with an operating loss of 781 million yen in the previous fiscal year).
We opened 48 facilities in the fiscal year under review by actively promoting the establishment of corporate-run childcare
centers that are institutionalized based on the Acceleration Plan for Eliminating All Waiting Lists for Childcare Openings ofthe government, with the aim of reducing the number of children on nursery school waiting lists in local regions and helping－

4 －to ensure and retain our own staff. We operate 202 childcare facilities nationwide, including other childcare-related facilities
such as registered child care centers.
Net sales increased substantially by 57.6% year on year as a result of developing facilities tailored to regional needs. While
the segment posted an operating loss due to upfront costs associated with the opening of new childcare centers, the amount of
the loss was smaller than a year ago, thanks to an increase in the number of basic agreements on childcare usage withcompanies and corporations at corporate-run childcare centers and an improvement in occupancy rates.
<Health Care Segment>
Net sales were 3,053 million yen (compared with 2,910 million yen in the previous fiscal year). Operating income was 69
million yen (compared with 615 million yen in the previous fiscal year).
Demand for housekeeping services continues to grow in Japan due to changes in lifestyles and values such as an increase indouble-income households due to the promotion of women’s participation and advancement in the workplace and a trend
toward the nuclear family. In February 2018, we began providing the Sunny Maid Service provided by our foreign staff thatutilizes the foreign housekeeper program in the National Strategic Special Zone, in addition to the Nichii Life housekeeping
service provided by our Japanese staff.
Net sales increased due to a rise in the number of users as a result of campaigns for the Nichii Life housekeeping service instep with seasonal needs and solid sales of private brand products for which we conducted strategic sales promotion activities
nationwide in cooperation with long-term care services. Profits declined due to expenses for the preparation of the Sunny
Maid Service.
<Education Segment>
Net sales were 13,069 million yen (compared with 12,771 million yen in the previous fiscal year). Operating loss was 4,620
million yen (compared with an operating loss of 4,647 million yen in the previous fiscal year).
Associated with the Education Business structural reforms (integration and parallel operation of Gaba and COCOJUKU), ouradult-oriented services focused on preparations for the transition from COCOJUKU to one-to-one English conversation
lessons at Gaba and conducted efficient marketing and promotion activities. In our child-oriented services, we havecompleted the establishment of 80 schools as a result of working to expand facilities centered on community-based satellites
from which it is easy for children to commute.
Due to an increase in the number of students in both adult-oriented and child-oriented services thanks to the initiatives above
and a rise in spending per customer, both sales and profits increased (the amount of loss decreased).
<Therapy Segment>(*We have changed the reporting segment classification from the consolidated fiscal year under review, and the Therapy
Business and the Grooming Business, which were previously grouped in the Health Care Segment, are now segmented
separately in the Therapy Segment.)
Net sales were 241 million yen (compared with 194 million yen in the previous fiscal year). Operating loss was 419 million
yen (compared with an operating loss of 107 million yen in the previous fiscal year).
We expanded our A-LOVE dog grooming salons, which are built on the concept of pet health and the theme of “always happy
together,” all over Japan and prepared the opening of salons in Australia. As for our Japan salons, we opened 19 salons in thefiscal year under review using area marketing. Sales increased as a result of acquiring new customers and repeaters byholding events at each salon and actively implementing sales expansion in SNS, etc. Profits declined due to the generation ofcapital investment such as expenses for new salon openings ahead of others.
<China Business Segment>
Net sales were 2,365 million yen (compared with 1,966 million yen in the previous fiscal year). Operating loss was 1,417
million yen (compared with an operating loss of 1,416 million yen in the previous fiscal year).
Entrusted with the “Promotion Project to Establish Medical Technologies and Service Bases” of the Ministry of Economy,
Trade and Industry, we worked on educational campaigns to increase the recognition of long-term care services to municipal
governments and the cultivation of long-term care workers in China, where aging is advancing rapidly.
In our services, we are promoting sales of sanitary products and the establishment of long-term care facilities that will becomea core base in local communities. In December 2017, we opened Itsu-un-in Beijing Chaoyang, the first facility specializing indementia in Beijing.
Net sales increased due to the expansion of sales in each operating company and educational corporations, but profits declined.
－

5 －<Other Segments>
Net sales were 213 million yen (compared with 207 million yen in the previous fiscal year). Operating income was 204
million yen (compared with 285 million yen in the previous fiscal year).
We strove to strengthen cooperation between group companies, with the aim of promoting and strengthening our mainstay
businesses and improving added value. Net sales increased 6 million yen in the fiscal year under review, but operating income
declined 81 million yen.

－

6 －2) Future outlook
Based on our management philosophy “At Nichii, we are committed to helping people live healthy and vibrant lives,” weformulated the “strategic triangle” that shows our vision as the Nichii Group in April 2016.
We aim to realize Nichii’s Vision to achieve stable long-term profit growth with three types of businesses, namely corebusinesses that pursue and contribute to sociality (medical support, long-term care and child care), BS (Balance Supply)
businesses that pursue economic performance (health care, language and therapy) and global businesses that pursue growth ina future-oriented manner (overseas business in China, etc.), cooperating with each other while pursuing their own
characteristics.
As a road map for realizing the Vision, we have formulated the medium-term management plan VISION 2025 (from thefiscal year ending March 31, 2019 to the fiscal year ending March 31, 2025) .
Performance targets based on the medium-term management plan are as follows.

Performance targets for 2025

Net sales

Operating margin

500 billion yen or more

10% or more

To realize the vision of stable long-term profit growth, it is essential to continue being selected and supported by users andcustomers by creating added value and strengthening our competitiveness by building a business foundation that is able torespond and contribute to social needs and issues that differ depending on the country, region, generation and situation. The
Nichii Group will increase the degree of certainty of realizing the vision by ensuring that it implements the key strategies of“strengthening the strategy execution power,” “establishing the foundation of existence,” “enhancing the earnings power,”“strengthening service and product appeals,” “strengthening human resources strategies” and “strengthening global readiness”
through the implementation of organizational and business reforms for the complete achievement of a short-term businessplan to restore the strength of Nichii. With these initiatives, we will evolve to become an “excellent company” that has asustainable presence on a global scale by contributing to local communities and the advancement of globalization.
In the fiscal year ending March 31, 2019, we will work on “expansion of the top line” as the highest priority issue toachieve profit growth associated with sales growth in order to proceed further with improving the business profit structure.
We will enhance service and product appeal and corporate competitiveness by strengthening our strategy execution power
based on stronger area management through the further enhancement of the executive officer system, on which we have been
focusing, and the higher mobility created by the autonomous actions of business frontlines as a result of ensuring that thevision penetrates throughout the company. We will also strengthen our cross-sectional sales driving force by developing ahighly-mobilized sales promotion system transcending borders between businesses, and strengthen our earnings power as aresult.
By ensuring that we put a range of initiatives based on these key strategies into practice, we will aim for profit growth
associated with sales growth, restore the profitability of the Education Business in which the recovery of strategic investments
is an urgent need, and reduce the operating loss in the China business.
Based on the above, we expect sales and income to increase in our earnings forecast for the next fiscal year as follows.
[Earnings forecast for the fiscal year ending March 31, 2019]
Net sales
Fiscal year ending
March 31, 2019
(Forecast)
Actual results for theprevious fiscal year

(Unit: Million yen)
Profit attributable toOperating income

Ordinary income

314,500

14,70010,5006,300

283,767

7,630

3,628

854

owners of parent* The above forecast is calculated based on information that is currently available. The actual results may therefore differ
from the stated forecasts due to changes in business conditions, etc.

－

7 －(2) Analysis of financial position
1) Overview of financial position
During the fiscal year under review, cash and cash equivalents (“cash”) increased 2,077 million yen year on year, to 18,267
million yen. Cash flows from each category of activities and their main factors are described below.
[Cash flows from operating activities]
Net cash provided by operating activities stood at 15,802 million yen.
The main factors were depreciation and amortization and interest expenses.
[Cash flows from investing activities]
Net cash used in investing activities came to 1,897 million yen.
This was primarily the result of the purchase of property, plant and equipment and the purchase of intangible assets.
[Cash flows from financing activities]
Net cash used in financing activities amounted to 11,792 million yen.
This was chiefly due to a net decrease in short-term loans payable and the repayment of long-term loans payable.
Trends in cash flow indicators for the Group can be seen below.
Year ended March 31, 2017

Year ended March 31, 2018

Equity Ratio (%)

19.1

19.1

Equity ratio based on present value (%)

28.3

40.3

Debt redemption (years)

10.3

5.6

Interest coverage ratio (times)

2.3

3.4

Notes: Equity ratio: Shareholders’ equity/total assets
Equity ratio based on present value: Total present value of stock/total assets
Debt redemption: Interest-bearing liabilities/operating cash flow
Interest coverage ratio: Operating cash flow/interest payments
1. Each indicator was calculated from consolidated financial results.
2. Total present value of stock is the product of closing stock price at the end of period and the total number of outstanding
shares at the end of period (after deducting treasury stock).
3. Operating cash flow is equal to the cash flows from operating activities in the consolidated statements of cash flow.
Interest-bearing liabilities are all the liabilities on which interest is paid, out of the liabilities in the consolidated balance
sheet. Interest payments are the interest payments as shown in the consolidated statements of cash flow.

(3) Basic principles of profit distribution and dividends for the fiscal year under review and the next fiscal year
Our basic policy is to provide our shareholders with stable and continuous profit distributions. Considering businessperformance trends from a mid- to long-term standpoint, we formulated a consolidated dividend policy. For the year ended
March 31, 2018, we are planning to pay a year-end dividend of 11 yen per share.
Cash Dividends per Share (Yen)Record date2Q-endYear-end

AnnualYear ended March 31, 2018

11.00 (Actual)

11.00 (Forecast)

22.00 (Forecast)Year ending March 31, 201915.00 (Forecast)

15.00 (Forecast)

30.00 (Forecast)－

8 －(4) Business and other risks
Potential risks to the operations of each segment of the Nichii Group are described below. The Group strives to mitigate
these risks by enhancing its business portfolio, focusing on developing and providing high value-added services that are notdependent on the medical insurance and long-term care insurance systems. However, under unexpected circumstances, theserisks could have serious implications for the Group’s business performance and financial position. The Company identified thefollowing risks at the end of the fiscal year under review, but risks associated with investments in shares in the Company are
not limited to those described below.
1) Business risks[Medical Support Segment]
The Nichii Group’s Medical Support Segment provides, among other services, medical services other than medical practiceby medical institutions, medical-related services, medical practice management consulting, and courses in medical
administration. Medical institutions will see major fluctuations in revenues due to biennial revisions of the medical service
fees and medical insurance system reform. The Group provides services to medical institutions, and the contents of social
security reforms, percentage changes in medical service fees, or advances in information technology could affect the Group’s
contracts, including contract fees.
The number of students attending the Group’s courses in medical administration could fluctuate dramatically due tochanges in the employment environment and other factors, and this could affect the Group’s performance.
[Long-Term Care Segment]
The Nichii Group’s Long-Term Care segment principally provides services regulated under the Long-Term Care Insurance
Law and other relevant laws. Income from these services could be impacted by the revisions to the long-term care insurance
system made every five years or by the revisions to compensation for long-term care made every three years. The Company
strives to diversify risks by providing services that are not covered by long-term care insurance and by expanding its service
offerings. Nevertheless, these efforts may not be sufficient to offset a decrease in income that could be caused by a reduction
in compensation for long-term care and other factors, which could have a significant adverse effect on earnings.
The long-term care facilities (including group homes, pay nursing homes, and day-care facilities) operated by the Group
offer community-based services under lease agreements. The term of most of these lease agreements is 20 years, and declines
in occupancy rates caused by decreases in resident numbers and falls in market rates for residents could have adverse effects
on earnings in the Long-Term Care segment.
The number of students attending the Group’s long-term care courses, especially training for newly appointed long-termcare workers, could fluctuate dramatically due to changes in the employment environment and other factors, and this could
affect the Group’s performance.
[Education Segment]
The Nichii Group’s Education Segment provides services consisting mainly in the Gaba and COCOJUKU Junior English
conversation schools. The amount of the course fees paid at the time of application for courses at these schools that
corresponds to lessons yet to be provided is included in the liability section of the balance sheet as “Advances received.” If alarge number of students cancel their classes within a short period of time, a substantial amount of the advances received must
be reimbursed, which may affect the financial position and financial results of the Company.
[Child Care Segment]
The Nichii Group’s Child Care Segment provides child care services, including registered child care centers, child carecenters in hospitals and companies and corporate-run child care centers, as well as child care courses. Factors such as changes
to child care systems could affect the expansion of these services and the Group’s performance.
[Health Care Segment]
The Nichii Group’s Health Care Segment provides the Nichii Life housekeeping service provided by its Japanese staff and
the Sunny Maid Service provided by its foreign staff.
The Sunny Maid Service is provided under the policy of the National Strategic Special Zone promoted by the government,
and the policy trends, etc. could affect the development of services and the business performance.

－

9 －[Global Segment]
The Nichii Group’s Global Segment cultivates human resources that will engage in long-term care and housekeeping
services and provides various services in China, operates language schools and breeds therapy dogs in Australia, and operates
language schools in Canada and the Philippines.
To develop business overseas, the Group makes efforts to collect information on the activities of governments, legal
revisions and the security situation and take measures to reduce risks and make an appropriate response. However, if there isan unexpected or greater-than-expected change such as those listed below, it could have an impact on the business promotion
and operating results of the Group.
・Unexpected change of laws and regulations
・Political and social turmoil such as terrorism and conflicts
・Greater-than-expected change in the market, economic trends and exchange rates
・Difference in labor-management relationships and business customs2) Risks due to the internal management system
The Nichii Group is working to strengthen its self-enforcing operational control structure and internal check functions toprevent human error and fraudulent activities. However, problems in operational control could cause a loss of stakeholder
trust and could affect the Group’s performance.
[Risks due to personal information]
The Nichii Group handles personal information specified in the Act on the Protection of Personal Information. The Group
recognizes the protection of personal information as an extremely important business issue and has established the Personal
Information Protection Committee to ensure the appropriate acquisition and handling of information. In addition, the Grouptakes preventive steps to block leaks of personal information, including the establishment of regulations and in-house
education and training.
However, personal information leaks could cause a loss of confidence in society and claims for compensation, among otherthings, which in turn could affect the Group’s results.
3) Official license and legal regulation in personnel business
To provide worker dispatch services in the Medical Support segment and Long-Term Care segment, the Group has alreadyobtained a license for the general worker dispatching business under the Act for Securing the Proper Operation of Worker
Dispatching Undertakings and Improved Working Conditions for Dispatched Workers (Worker Dispatching Law). Under theWorker Dispatching Law, if a business engaged in a worker dispatching business meets any of the conditions fordisqualification or commits illegal acts, its license could be canceled, or it could be ordered to suspend its business.
The Nichii Group strives to enhance compliance, but if the Group violates laws and regulations, its performance could be
adversely affected.
Further, the Worker Dispatching Law and related laws and regulations could be amended in the future according toemployment conditions and other factors and, depending on the nature of the amendment, this could affect the Group’s
performance.
4) Risk related to changes in the employment environment
The Nichii Group has its own unique talent acquisition scheme for securing human resources based on a business model
dubbed “From Education to Employment.” However, with decline in the working population forecast, any shortage of humanresources arising from changes in the employment environment could adversely affect the Group’s service provision.
5) Risks due to natural disasters and accidents
The Nichii Group provides services at medical institutions with which the Group has contractual relations, long-term carefacilities, schools, and other facilities across the country. If natural disasters, including earthquakes and tsunamis, occur, or if
infectious diseases, including new types of influenza, spread, the Group’s staff and facilities could not work in the affectedareas. In that case, the Group will strive to maintain its system for providing services by endeavoring to promptly restore thefunctions of the affected facilities and dispatching support staff. However, if the Group cannot provide services, its results andfinancial position could be adversely affected. Each branch and facility of the Group is reviewing all its countermeasuresagainst risks related to business continuity in emergencies and is seeking to strengthen its crisis management system, putting
priority on the safety of customers.
－

10 －6) Risks related to the application of impairment accounting
The Nichii Gakkan Group may need to realize an impairment loss on land and buildings owned, goodwill and/or otherassets if the profitability of each business declines significantly, which may affect the financial position and financial resultsof the Group.
If IFRS is adopted, goodwill will become a non-amortizable asset. If in an impairment test, which will be conducted at least
once a year, the recoverable value proves to be lower than the book value, an impairment loss could be posted.
7) Risks related to deferred tax assets
The Nichii Group recorded deferred tax assets based on future estimates of taxable income and the results of schedulingtemporary differences. If the Company lowered its taxable income estimate in the future due to deterioration in the operating
environment or other factors, the need to reverse deferred tax assets could arise and this could affect the Group’s performanceand financial position.

－

11 －

2. Overview of Nichii GroupThe Nichii Group consists of NICHIIGAKKAN CO., LTD. and its 71 subsidiaries and three affiliates, and is engaged inseven segments (Medical Support, Long-Term Care, Child Care, Health Care, Education, Therapy and China business).
In the Medical Support segment, the Group provides contract administration services to medical institutions and pharmacies,
sells medical equipment to them, and disinfects and sterilizes equipment in medical institutions. The Group’s services in thissegment also include medical business consulting, medical courses including courses for medical administration.
The Long-Term Care segment provides institutional services such as long-term care insurance. These services include homecare services (including home-care support, home-visit care, home-visit bathing, home-visit nursing care, and day care services)and facility-care services (including care for residents in specific facilities and care for group home residents with dementia). In
this segment, the Group also sells and leases welfare equipment, provides welfare services for the disabled, and runs long-termcare courses, especially training for newly appointed long-term care workers, and a long-term care worker dispatching service,etc.
The Child Care segment provides a range of services including the operation of in-hospital child care centers, the operation of
directly managed in-company child care centers and company-led child care facilities, and the provision of child care courses(babysitting courses, etc.).
The Health Care segment sells health care products as a service not covered by institutional services and provides the Nichii
Life housekeeping service provided by our Japanese staff and the Sunny Maid Service provided by our foreign staff.
The Education segment provides language education to meet the needs of a wide range of age groups, through activities suchas the provision of one-on-one English conversation lessons by Gaba Corporation, the expansion of COCOJUKU Junior group
lessons, and the development of an overseas study support system.
The Therapy segment operates grooming salons and hotels exclusively for dogs in Japan and overseas, produces and sells
flowers, plants and seeds, operates and manages sightseeing facilities, and breeds and sells pet dogs.
The China Business segment cultivates long-term care workers, provides long-term care services, cultivates housekeepers,
provides housekeeping services, sells sanitary goods, sells child care goods, operates facilities specializing in dementia,
cultivates post-natal care workers, provides post-natal care services, cultivates human resources for child care, and provides
child care services, etc.
In addition, the Group, primarily subsidiaries, offers data processing, stores and delivers goods, publishes and sells books, andengages in leasing. The table below shows the main services and products in each business category of the Group and the main
companies that provide those services and products. These business categories are roughly the same as business segments.
Segments

Principal Businesses/Products

Principal Companies

Medical Support

Medical practice services such as reception, medical fee claims,
accounting, computer operations, and medical record management; NICHIIGAKKAN CO., LTD.
sale, disinfection and sterilization services (inside the hospital) for Nihon Support Service Co., Ltd.
medical equipment; medical affairs consulting; provision of courses
in medical administration.

Long-Term Care

Home-care support (creation of care plan); home-visit care; homevisit bathing; home-visit nursing care; day care; care service for
specified facility residents; care for group home residents withNICHIIGAKKAN CO., LTD.
dementia; sale and rental of welfare equipment; welfare services for Nichii Carenet Co., Ltd.
the disabled; provision of training for newly appointed long-term
Nichii Carepalace Company
care workers; training for experienced certified care workers and along-term care worker dispatching service, etc.

Child Care

Operation of in-hospital child care centers; operation of directly
managed in-company child care centers; operation of company-led
child care facilities; provision of babysitting courses, etc.

NICHIIGAKKAN CO., LTD.
Sawayaka Hoiku Company

Health Care

Sale of health care products; provision of the Nichii Life
housekeeping service provided by Japanese staff and the Sunny
Maid Service provided by foreign staff, etc.

NICHIIGAKKAN CO., LTD.
Nichii Carenet Co., Ltd.

－

12 －

Segments

Principal Businesses/Products

Principal Companies

English conversation schools; operation of members’ sports clubs,
focused on swimming schools

NICHIIGAKKAN CO., LTD. Gaba
Corporation
SELC AUSTRALIA PTY LTD.
SELC ENGLISH LANGUAGE
CENTRE CANADA LTD.
SELC CAREER COLLEGE
CANADA LTD.
SELC-Global Center Philippines
Corporation
JSS Corporation

Therapy

Cultivation of therapy dogs; implementation of therapy activities;
breeding and sale of pet dogs; operation of grooming salons andhotels exclusively for dogs, production and sale of flowers, plants
and seeds; operation and management of sightseeing facilities, etc.

NICHIIGAKKAN CO., LTD.
Nichii Green Farm Company
YORK ACADEMY AUSTRALIAPTY LTDNICHII INTERNATIONALHOLDINGS AUSTRALIA
PTY.LTDNICHII LABRADOODLESAUSTRALIA PTY.LTD
SUNSET HILLS PTY LTD
CLOUD CATCHER PTY.LTD

China Business

Cultivation of long-term care workers and provision of long-termcare services; cultivation of housekeepers and provision ofhousekeeping services; sale of sanitary goods; sale of child caregoods; operation of facilities specializing in dementia; cultivation
Subsidiaries in China
of post-natal care workers and provision of post-natal care services;
cultivation of human resources for child care and provision of childcare services, etc. in China.

Other

Data processing; goods storage and delivery service; publicationand sale of books; leasing

Education－

13 －Nihon Support Service Co., Ltd.
Tokyo Marunouchi Publishing Co.,
Ltd.
Nihon Credit Lease Corp.

－

14 －

(For reference)In the fiscal year ending March 31, 2019, the Group will change its reportable segments as follows.
・The sale of health care products will be transferred from the Health Care segment to the Long-Term Care segment.
・The Global segment will be newly established, and the China business and services overseas will be transferred from eachsegment.
The table below shows the main services and products in each business category and the positioning of each business.
Segments

Principal Businesses/Products

Principal Companies

Medical Support

Medical practice services such as reception, medical fee claims,
accounting, computer operations, and medical record management;
NICHIIGAKKAN CO., LTD.
sale, disinfection and sterilization services (inside the hospital) for
Nihon Support Service Co., Ltd.
medical equipment; medical affairs consulting; provision of courses
in medical administration

Long-Term Care

Home-care support (creation of care plan); home-visit care; homevisit bathing; home-visit nursing care; day care; care service for
specified facility residents; care for group home residents withNICHIIGAKKAN CO., LTD.
dementia; sale and rental of welfare equipment; welfare services for
Nichii Carenet Co., Ltd.
the disabled; provision of training for newly appointed long-term
Nichii Carepalace Company
care workers and training for experienced certified care workers;
provision of care staff dispatching service; provision of sale ofhealth care products, etc.

Child Care

Operation of in-hospital child care centers; operation of directly
managed in-company child care centers; operation of company-led
child care facilities; provision of babysitting courses

NICHIIGAKKAN CO., LTD.
Sawayaka Child Care Co., Ltd.

Health Care

Provision of the Nichii Life housekeeping service provided by
Japanese staff and the Sunny Maid Service provided by foreign
staff, etc.

NICHIIGAKKAN CO., LTD.

Education

English conversation schools; operation of members’ sports clubs,
focused on swimming schools

NICHIIGAKKAN CO., LTD.
Gaba Corporation
JSS Corporation

Therapy

Cultivation of therapy dogs and implementation of therapy
activities; breeding and sale of pet dogs; operation of grooming
salons and hotels exclusively for dogs; production and sale offlowers, plants, seeds and seedlings; operation and management ofsightseeing facilities, etc.

NICHIIGAKKAN CO., LTD.
Nichii Green Farm Company

GlobalSubsidiaries in China
SELC AUSTRALIA PTY LTD.
SELC ENGLISH LANGUAGE
CENTRE CANADA LTD.
Cultivation of long-term care workers and provision of long-term
SELC CAREER COLLEGE
care services; cultivation of housekeepers and provision of
CANADA LTD.
housekeeping services; sale of sanitary goods; sale of child care
SELC-GLOBAL CENTER
goods; operation of facilities specializing in dementia; cultivation
PHILIPPINES CORPORATION
of post-natal care workers and provision of post-natal care services; YORK ACADEMY AUSTRALIA
cultivation of human resources for child care and provision of child PTY LTD
care services in China; operation of language schools in Australia, NICHII INTERNATIONAL
Canada and the Philippines; breeding of therapy dogs in Australia, HOLDINGS AUSTRALIAetc.
PTY.LTDNICHII LABRADOODLESAUSTRALIA PTY.LTD
SUNSET HILLS PTY LTD
CLOUD CATCHER PTY.LTD

Other

Data processing, goods storage and delivery service, publicationand sale of books, lease business, etc.
－

15 －Nihon Support Service Co., Ltd.
Tokyo Marunouchi Publishing Co.,
Ltd.
Nihon Credit Lease Corp.

－

16 －

3. Basic Approach to Selection of Accounting Standards
The Nichii Group adopts Japanese accounting standards to ensure comparability of financial statements between companies
and periods, and prepares its consolidated financial statements in accordance with Ordinance on Terminology, Forms, andPreparation Methods of Consolidated Financial Statements (excluding Chapter 7 and Chapter 8) (Finance Ministry OrdinanceNo. 28 of 1976).
We will examine the adoption of international financial reporting standards in light of the situation both inside and outside ofJapan.

－

17 －4. Consolidated Financial Statements and Major Notes(1) Consolidated balance sheets(in thousand yen)
Fiscal 2017
(As of March 31, 2017)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Short-term investment securities
Merchandise and finished goods
Work in progress
Raw materials and supplies
Deferred tax assets
Other Segments
Less: allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures—net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles—net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures—net
Land
Lease assets
Accumulated depreciation
Lease assets—net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Software
Software in progress
Lease assets
Other Segments
Total intangible assets

16,357,197
32,855,836
200,416
1,076,922
8,570
232,5882,314,021
11,687,703(9,802)64,723,455

－

18 －

Fiscal 2018
(As of March 31, 2018)

18,447,925※３ 33,072,792

890,572
6,859
222,620
2,675,281
12,639,841(31,360)
67,924,532※２ 52,811,993※２ 53,851,495(29,723,740)
23,088,252
88,992(78,155)
10,836※２ 4,633,559(3,829,133)
804,426
8,444,356
54,742,692(7,839,548)
46,903,144
1,354,524
80,605,541(31,591,157)
22,260,337
91,125(81,429)
9,695※２ 4,834,687(4,001,034)
833,652
8,382,379
56,821,415(9,537,671)
47,283,743
1,005,199
79,775,008

14,225,873
2,701,829
2,367,560
170,901
207,001
19,673,166

11,424,497
5,103,318
97,451
193,145
198,123
17,016,537

(in thousand yen)
Fiscal 2017
(As of March 31, 2017)
Investment and other asset
Investment securities
Long-term loans receivable
Long-term prepaid expenses
Guarantee deposits
Deferred tax assets
Other
Less: allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long term loans payable
Lease obligations
Income taxes payable
Accrued consumption taxes
Accrued expenses
Advances received
Provision for bonuses
Provision for directors' bonuses
Other Segments
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Long-term advances received
Deferred tax liabilities
Asset retirement obligations
Net defined benefit liability
Other Segments
Total non-current liabilities
Total liabilities

－

19 －

Fiscal 2018
(As of March 31, 2018)※１ 1,567,930※１ 1,133,008

8,022,901
2,297,901
13,739,404
717,096※１ 739,777(379,098)
26,705,912
126,984,620
191,708,076

7,644,360
2,345,634
12,952,786
843,822※１ 872,816(265,077)
25,527,351
122,318,898
190,243,430

840,286
20,269,380
4,869,890
1,431,046
1,990,593
1,414,113
15,914,778
11,337,562
4,990,083
38,0005,435,045
68,530,780

1,170,987
5,336,220
6,072,913
1,454,649
2,563,388
1,791,918
17,836,819
11,412,048
5,611,659
38,0007,170,909
60,459,515

17,563,057
52,192,808
3,716,866
7,321
2,378,419
7,311,817
2,082,623
85,252,913
153,783,694

22,007,024
53,596,996
4,440,606
6,043
2,446,418
7,524,273
2,106,381
92,127,744
152,587,259

(in thousand yen)
Fiscal 2017
(As of March 31, 2017)
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock, at cost
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency exchange adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

－

20 －

Fiscal 2018
(As of March 31, 2018)

11,933,790
17,277,876
20,006,631(11,376,929)
37,841,369

11,933,790
17,026,495
19,636,670(11,376,709)
37,220,245

20,543(457,572)(811,515)(1,248,544)
531,839799,71737,924,381
191,708,076

19,091(366,488)(509,191)(856,588)
560,694
731,819
37,656,170
190,243,430

(2) Consolidated statements of income and comprehensive income(Consolidated statements of income)(in thousand yen)
Fiscal 2017(from April 1, 2016
to March 31, 2017)
Net Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Advertising and promotion expenses
Directors’ compensation
Salaries and benefits
Provision for employee bonuses
Provision for directors’ bonuses
Provision for directors’ retirement benefits
Stock-based compensation expenses
Legal welfare expenses
Travel and transportation expenses
Rent expenses
Provision of allowance for doubtful accounts
Depreciation and amortization
Amortization of goodwill
Other
Total selling, general and administrative expenses
Operating Income
Non-operating income
Interest income
Rent income
Subsidy income
Foreign exchange gains
Incentive income
Equity method investment gain
Other Segments
Total non-operating income
Non-operating expenses
Interest expenses
Rent expenses
Other Segments
Total non-operating expenses
Ordinary Income
Extraordinary income
Gain on reversal of subscription rights to shares
Gain on reversal of loss on cancellation of leaseagreement
Other Segments
Total extraordinary income

－

21 －

Fiscal 2018(from April 1, 2017
to March 31, 2018)276,659,882
224,459,969
52,199,913

283,767,746
228,946,036
54,821,710

4,432,329
184,847
17,956,358
1,119,010
38,000611,243
29,2753,280,131
1,522,707
3,426,398
3,988
1,593,053
2,144,110
11,651,837
47,993,291
4,206,621

3,424,476
203,591
18,088,773
1,258,397
38,000604,887
35,312
3,213,812
1,514,773
3,466,875
1,824
1,783,298
2,198,718
11,358,802
47,191,543
7,630,166

151,528
188,103
176,310401,60973,67055,250426,047
1,472,519

146,801
205,878
58,648
9,791
107,177
60,541
293,420882,259

4,103,515
36,745
109,805
4,250,066
1,429,074

4,654,848
35,828193,2124,883,888
3,628,537

8,158

5,310

50,610-1,144
59,913203
5,514

(in thousand yen)
Fiscal 2017(from April 1, 2016
to March 31, 2017)
Extraordinary losses
Loss on retirement of property, plant and equipment,
net
Loss on sales of property, plant and equipment, net
Impairment losses
Other Segments
Total extraordinary losses
Net income (loss) before income taxes
Income taxes—current
Income taxes—deferred
Total income taxes
Net income
Profit (loss) attributable to non-controlling interests
Profit attributable to owners of the parent company※１ 15,350－

22 －Fiscal 2018(from April 1, 2017
to March 31, 2018)※１ 83,687※２ 507※２ 10,308※３ 120,936※３ 692,989

2,221
139,016
1,349,971
1,502,718(1,417,447)
85,271
1,264,700(138,527)
1,403,227

1,650
788,635
2,845,416
2,509,386(360,589)
2,148,797
696,618(157,815)
854,434

(Consolidated statements of comprehensive income)(in thousand yen)
Fiscal 2017(from April 1, 2016
to March 31, 2017)
Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency exchange adjustments
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests－

23 －Fiscal 2018(from April 1, 2017
to March 31, 2018)

1,264,700

696,618

7,739(828,077)
211,471※１ (608,866)
655,833(1,470)82,544
302,323※１ 383,397
1,080,016

831,721

1,228,910(175,888)(148,894)

(3) Consolidated statements of changes in net assets
Fiscal 2017 (from April 1, 2016 to March 31, 2017)(Thousand yen)
Accumulated
othercomprehensive
incomeShareholders’ equity

Capital stock

Balance at the beginning of
the period
Changes of items during theperiodIncrease (decrease) due tochange in equity ofsubsidiaries, etc.
Dividends from retained
earnings
Profit attributable toowners of parent

Capital surplus

11,933,790

17,354,214

Valuation
Treasury stock, at Total shareholders’ difference on
Retained earnings
cost
equityavailable for-salesecurities
19,635,508(76,337)

37,545,845

12,815(76,337)(1,412,233)(1,412,233)

1,403,227

1,403,227

Purchase of treasury stock(425)

Disposal of treasury stock
Change of scope of
consolidation
Changes other thanshareholders’ equity
during the period (net)Total changes of items
during the period
Balance at the end of theperiod(11,377,668)

(740)

(740)

1,479

1,054

380,554

380,554

7,727-(76,337)

371,123739

295,524

7,727

11,933,790

17,277,876

20,006,631(11,376,929)

37,841,369

20,543

Accumulated other comprehensive income
Total
Foreign currency Remeasurements accumulatedtranslationof definedotheradjustments
benefit planscomprehensive
incomeBalance at the beginning of
the period
Changes of items during theperiodIncrease (decrease) due tochange in equity ofsubsidiaries, etc.
Dividends from retained
earnings
Profit (loss) attributable toowners of parent

333,133(1,022,986)(677,038)

Stock acquisition Non-controlling
Total net assets
rightsinterests

511,733

721,337

38,101,877(76,337)(1,412,233)
1,403,227

Purchase of treasury stock(740)

Disposal of treasury stock

1,054

Change of scope of
consolidation
Changes other thanshareholders’ equity
during the period (net)Total changes of items
during the period
Balance at the end of theperiod380,554(790,705)

211,471(571,506)

20,10678,380(473,020)(790,705)

211,471(571,506)

20,10678,380(177,495)(457,572)(811,515)(1,248,544)

531,839799,71737,924,381

－

24 －

Fiscal 2018 (from April 1, 2017 to March 31, 2018)

Shareholders’ equity

Balance at the beginning of
the period
Changes of items during theperiodIncrease (decrease) due tochange in equity ofsubsidiaries, etc.
Dividends from retained
earnings
Profit attributable toowners of parent

Capital stock

Capital surplus

11,933,790

17,277,876

Retainedearnings
20,006,631

Total
shareholders’equity(11,376,929)

37,841,369(250,734)(1,412,238)(1,412,238)

854,434

854,434(647)

Disposal of treasury stock

20,543(250,734)

Purchase of treasury stock

Change of scope of
consolidation
Changes other thanshareholders’ equity
during the period (net)Total changes of items
during the period
Balance at the end of theperiodTreasury stock,at cost(Thousand yen)
Accumulated
othercomprehensive
incomeValuationdifference on
available forsale securities(1,730)(1,730)

1,950

1,302

187,841

187,841(1,452)-(251,381)(369,961)

220(621,123)(1,452)

11,933,790

17,026,495

19,636,670(11,376,709)

37,220,245

19,091

Accumulated other comprehensive income
Total
Foreign currency Remeasuremen accumulatedtranslation
ts of definedotheradjustments
benefit planscomprehensive
incomeBalance at the beginning of
the period
Changes of items during theperiodIncrease (decrease) due tochange in equity ofsubsidiaries, etc.
Dividends from retained
earnings
Profit attributable toowners of parent(457,572)(811,515)(1,248,544)

Stockacquisitionrights531,839

Non-controlling
Total net assetsinterests

799,71737,924,381(250,734)(1,412,238)
854,434

Purchase of treasury stock(1,730)

Disposal of treasury stock

1,302

Change of scope of
consolidation
Changes other thanshareholders’ equity
during the period (net)Total changes of items
during the period
Balance at the end of theperiod187,841

91,084

302,323

391,956

28,854(67,898)

352,91291,084

302,323

391,956

28,854(67,898)(268,210)(366,488)(509,191)(856,588)

560,694

731,819

37,656,170

－

25 －

(4) Consolidated statements of cash flows(in thousand yen)
Fiscal 2017(from April 1, 2016
to March 31, 2017)
Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Amortization of goodwill
Impairment loss
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expenses
Share of (profit) loss of entities accounted for using
equity method
Loss on retirement of property, plant and equipment,
net(Gain) loss on sales of property, plant and equipment,net
Stock-based compensation expenses(Increase) decrease in notes and accounts receivabletrade(Increase) decrease in inventories(Increase) decrease in other current assets
Decrease (increase) in claims provable in bankruptcies(Increase) decrease in other fixed assets
Increase (decrease) in notes and accounts payable—
trade
Increase (decrease) in accrued expenses
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other current liabilities
Increase (decrease) in other non-current liabilities
Other, net
Sub-totalInterest and dividends income received
Proceeds from dividend income from entities
accounted for using equity method
Interest expenses paid
Income taxes paid
Net cash provided by operating activities

－

26 －

Fiscal 2018(from April 1, 2017
to March 31, 2018)

1,349,971
5,895,983
2,144,110
120,936
75,173(25,707)509,527(153,256)
4,103,515

2,845,416
6,217,813
2,198,718
692,989
621,575(311,401)
386,759(148,990)
4,654,848(55,250)(60,541)

15,35083,687(1,144)203

29,27535,312

221,922(242,553)(101,114)(134,469)
1,499
263,580

205,424(797,042)
63,351
119,584(217,774)

331,390(464,367)(85,682)541,233
580,549(295,988)
14,317,873
42,933

1,912,358
378,187
1,522,732
766,507456,992
21,933,326
30,0298,750

11,250(4,101,253)(889,256)
9,379,047(4,647,307)(1,524,697)
15,802,600

(in thousand yen)
Fiscal 2017(from April 1, 2016
to March 31, 2017)
Cash flows from investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of short-term investment securities
Proceeds from sales of short-term investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Purchase of investments in subsidiaries resulting inchange in scope of consolidation
Payments for sales of shares of subsidiaries resulting inchange in scope of consolidation
Payments of loans receivableCollection of loans receivable
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Subsidy income
Other, net
Net cash used in investing activities
Cash flows from financing activities:
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from sales of treasury stock
Purchase of treasury stock
Cash dividends paid by parent company
Dividends paid to non-controlling interests
Repayments of lease obligations
Purchase of investments in subsidiaries not resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents from newly
consolidated subsidiary
Decrease in cash and cash equivalents resulting fromexclusion of subsidiaries from consolidation
Cash and cash equivalents at end of year

－

27 －

Fiscal 2018(from April 1, 2017
to March 31, 2018)(311,274)
311,274(502,798)
2,319,644(2,186,276)
7,161(1,953,717)(19,059)
500,000(324,326)
311,326
700,001(2,502,696)
72,990(1,260,906)(22,698)-※３ (470,421)-※３ (499,278)※３ (15,905)-※４ (3,304)(673,760)
194,293(1,435,673)
841,508
470,067(158,956)(3,567,267)(598,852)
324,955(609,364)
1,212,370
1,060,944(242,373)(1,897,839)(38,041)
2,821,502(4,328,556)
42(740)(1,410,995)(7,500)(1,215,967)(14,939,399)
11,294,340(5,581,300)
153(1,730)(1,410,586)(9,960)(946,893)(83,101)(257,471)

16,913(4,246,443)

60,112(11,792,734)(37)(14,632)

1,565,298
14,373,159

2,097,394
16,189,428

250,970

71,667-(91,387)※１ 16,189,428※１ 18,267,103