Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2012 (J-GAAP)
February 9, 2012
Name of listed company: Nichii Gakkan Company
Listed on: Tokyo Stock Exchange 1st Section
Securities code: 9792
URL: http://www.nichiigakkan.co.jp
Representative: Masatoshi Saito, President and Representative Director
Contact:
Koichi Terada, Director, Manager of Accounting and Finance Division
TEL: 03-3291-2121
Scheduled date of filing quarterly financial report:
February 10, 2012
Scheduled date to start dividends distribution—
Supplementary quarterly materials prepared:
Yes
Quarterly results information meeting held:
None(Figures shown are rounded down to the nearest million yen.)

1. Consolidated financial results for the third quarter ended December 31, 2011 (April 1, 2011 – December 31, 2011)(1) Consolidated operating results(Percentage figures represent changes from the same period in the previous year.)

Net Sales

Ordinary Income

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

188,265

4.2

8,654

39.9

8,633

25.9

3,903

39.7

180,643

2.2

6,187

28.6

6,856

41.5

2,794

23.6

Nine months ended
December 31, 2011
Nine months ended
December 31, 2010
Note: Comprehensive income:Operating Income

Nine months ended December 31, 2011:
Nine months ended December 31, 2010:

3,921 million yen (42.3%)
2,755 million yen (– %)Diluted Net Income
per Share

Net Income per Share
Yen

Nine months ended
December 31, 2011
Nine months ended
December 31, 2010

Yen

56.52

—

40.47

—

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of December 31, 2011

147,494

55,43037.4

As of March 31, 2011

125,781

52,20041.3

Reference: Shareholders’ equity:

As of December 31, 2011: 55,162 million yen

As of March 31, 2011: 51,944 million yen

2. Dividends
Annual Dividends (Yen)First Quarter-End

Second Quarter-End

Third Quarter-End

Year ended March 31, 2011

—

7.00

—

Year ending March 31, 2012

—

8.00

—

Year ending March 31, 2012
(Forecast)Year-End

Annual
7.00

14.00

8.00

16.00

Note: Revisions since the most recently announced dividend forecast: None

3. Consolidated financial result forecasts for the year ending March 31, 2012 (April 1, 2011 – March 31, 2012)(Percentage figures represent changes from the same period in the previous year.)

Net Sales

Full year

Operating Income

Ordinary Income

Net Income
per Share

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

253,700

5.3

11,00039.8

11,700

21.1

5,700

63.9

82.39

Note: Revisions since the most recently announced financial result forecast: None4. Others(1) Significant changes to subsidiaries during the term (Transfers of specific subsidiaries with changes in the scopeof consolidation): None
(2) Application of the specific accounting for preparing the quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates and restatement of revisions
1) Changes in accounting policies due to the revision of accounting standard, etc.:
2) Changes in accounting policies other than 1):
3) Changes in accounting estimates:
4) Restatement of revisions:

None
None
None
None

(4) Number of shares issued and outstanding (common stock)1) Number of shares issued andoutstanding (including treasury stock)2) Number of treasury stock3) Average number of shares issued andoutstanding in each period (quarterly
consolidated cumulative period)

As of December 31,
2011
As of December 31,
2011
Nine months ended
December 31, 2011

73,017,952 shares

As of March 31, 2011

73,017,952 shares

3,574,601 shares

As of March 31, 2011

3,956,331 shares

69,061,330 shares

Nine months ended
December 31, 2010

69,062,244 shares* Presentation of implementation status for quarterly review procedure
The quarterly review procedure based on the Financial Instruments and Exchange Act does not apply to the quarterly
consolidated financial results and the procedure based on this Act was not complete as of the release of these Consolidated
Financial Results.
* Explanation concerning the appropriate use of financial forecasts and other special notes
The above forecasts are based on information Nichii Gakkan had in its possession as of the time this report was prepared andon certain assumptions judged to be reasonable. Various factors may cause actual results to differ significantly fromforecasts. Please refer to the disclaimers, provided under “Qualitative information on consolidated financial result forecasts”
on page 4 of the quarterly consolidated financial results (appendix materials), regarding assumptions upon which forecasts
are based and the use of forecasts.

Nichii Gakkan Company (9792) Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2012

Contents of the appendix materials
1. Qualitative information on quarterly consolidated financial results.........................................................................2(1) Qualitative information on consolidated operating results..............................................................................................2(2) Qualitative information on consolidated financial position ............................................................................................3(3) Qualitative information on consolidated financial result forecasts .................................................................................4

2. Summary (other) information ...................................................................................................................................4(1) Significant changes to subsidiaries during the period.....................................................................................................4(2) Application of the specific accounting for preparing the quarterly consolidated financial statements...........................4(3) Changes in accounting policies, accounting estimates and restatement..........................................................................4

3. Quarterly consolidated financial statements .............................................................................................................5(1) Quarterly consolidated balance sheets.............................................................................................................................5(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income...........7(Quarterly consolidated statements of income) ..............................................................................................................7(Quarterly consolidated statements of comprehensive income) .....................................................................................8(3) Notes on premise of a going concern..............................................................................................................................9(4) Notes on significant fluctuation in amounts of shareholders’ equity...............................................................................9-1-

Nichii Gakkan Company (9792) Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2012

1. Qualitative information on quarterly consolidated financial results(1) Qualitative information on consolidated operating results
The future of the Nichii Group’s business environment could be significantly affected by the integrated reform of social
security and taxation, which is currently being debated with aims such as reinforcing the functions of, and securing stable
funding for, social security, and bringing about a mutually beneficial relationship with economic growth. Reform proposals
focus on points like increasing support for child care and rearing, strengthening support for in-home care via collaboration
between medical and long-term care services, and implementing tax reforms, including an increase in the consumption tax.
Reform proposals are aiming to remake the social security system into one that sustainably serves all generations over the
medium-to-long term.
This policy direction was reflected in the setting of revision rates (announced on December 21, 2011) as part of therevision of the medical treatment fees and long-term care fees scheduled for implementation in April 2012. Responding to
the need to maintain the provision of acute medical services and enhance in-home care, medical treatment fees will be
increased by 0.004% (1.38% increase for services, 1.38% decrease for drugs). Long-term care fees will be increased by
1.2% (1.0% increase for in-home care, 0.2% increase for facility care) with the aim of improving compensation for care
workers and promoting the provision of comprehensive regional care.
Given these changes in its business environment, the Nichii Group took various measures to improve its businessstructure with the aim of supporting stable earnings growth. In addition to strengthening existing business operations andimproving their efficiency, these measures included the expansion and enhancement of management support services in the
Medical Support Business and uninsured services in the Health Care Business, and promotion of on-premises childcare
services in the childcare business, as well as other initiatives for the development of new services.
In the Education Business, we purchased 96.59% of the outstanding shares of GABA Corporation, which operates
English conversation schools, through a tender offer. After acquiring the remaining shares in exchange for treasury stock,
we made GABA into a wholly owned subsidiary as of December 5, 2011. Our full-scale entry into the language education
business is an indispensable source of competitive advantage for our efforts to develop new services and, throughaggressive service development leveraging language education, will contribute to the expansion of each of our businesssegments and strengthen our business base.
As for our operating results, the inclusion of GABA in our consolidated results in October contributed to the thirdquarter performance and added to the positive impacts of steady increases in users of our home-care and facility-careservices and further operating efficiency improvements in our Medical Support Business and Health Care Business,accentuating the increase in our revenues and significantly boosting our bottom line.
As a result, net sales during the first nine months ended December 31, 2011 were 188,265 million yen (180,643 million
yen in the same period of the previous year), operating income was 8,654 million yen (6,187 million yen in the same periodof the previous year), ordinary income was 8,633 million yen (6,856 million yen in the same period of the previous year).
Net income came to 3,903 million yen (2,794 million yen for the same period of the previous year) after considering factors
like the reversal of 370 million yen in deferred tax assets following a change in corporate tax rates.
Operating results by segment were as follows.
<Medical Support Business>
In our Medical Support Business, we continued to increase our sales, while keeping an eye on profitability, and expanded
our business with hospitals under contract.
In our efforts to increase the number of hospitals under contract, we moved ahead with sales activities using
collaboration between medical facilities and long-term care services, medical management analysis, and other management
support services as a foothold, and saw a steady increase in the number of private-sector hospitals under contract.
Continuous increases in staff compensation resulted in higher staff retention and skill improvement, and ultimately
higher operating efficiency and rising profits.
In our efforts to expand and enhance our management support services, we focused our attention on developing new
products like the “Medi-Voice” web/mobile patient satisfaction survey (launched in January 2012), and achieved progressin areas like preparations for the development of international medical exchange support services.
As a result, sales of this segment during the first nine months ended December 31, 2011 were 77,242 million yen (77,113
million yen in the same period of the previous year), and operating income was 6,266 million yen (4,910 million yen in thesame period of the previous year).

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Nichii Gakkan Company (9792) Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2012

<Health Care Business>
In the Health Care Business, our continuous efforts to open new long-term care facilities and increase utilization rates ofexisting facilities produced a steady rise in users for our home-care and facility-care services and helped us to keep oursales growth trend above the overall market growth rate.
Earnings continued to grow, despite the incursion of upfront expenses for opening new offices, because of rising facility
utilization rates driven by the increased number of users, and our expanded provision of high-margin uninsured services.
Nichii Care Palace Company, which operates medium-priced nursing homes, has been generating profits since June, andcontributed to earnings improvement.
During the first nine months ended December 31, 2011, we opened 38 new care plan facilities (bringing the total to 732),
33 new home-visit care facilities (bringing the total to 1,055), 24 new day-care facilities (bringing the total to 318), 3 newcare equipment leasing facilities (bringing the total to 135), and 19 new home-nursing facilities (bringing the total to 21).
All of this activity took place in our home-care services. In our facility-care services, we opened 22 new Nichii no
Hohoemi facilities (bringing the total to 239), 5 new Nichii no Kirameki facilities (bringing the total to 39), and 1 new
Nichii Home (bringing the total to 49).
As a result, sales of this segment during the first nine months ended December 31, 2011 were 100,157 million yen(92,931 million yen in the same period of the previous year) and operating income was 7,527 million yen (5,125 million
yen in the same period of the previous year).
<Education Business>
The Education Business continued to see declines in students for its mainstay Home Helper Level 2 Course and Medical
Administration Course, even with a slight improvement in the active-job-openings-to-applicants ratio.
In language education, enrollment for GABA’s one-on-one English conversation lessons is running ahead of plans andthis operation is beginning to help stabilize earnings. Looking ahead, we expect that globalization will support even greater
demand for language education and we are committed to achieving stable earnings growth through agile businessdevelopment leveraging the Company’s management resources.
As for the development of new courses, the need for specialists in dispensing pharmacy administration is growing as theseparation of medical services and drug dispensing continues to drive up the ratio of non-hospital dispensing, and advancesin home-care support for medical and long-term care needs are making dispensing pharmacies even more important. We,
therefore, newly developed the Dispensing Pharmacy Administration Course, which we began offering in January 2012,
and continued our efforts to develop and offer new Web College courses.
As a result, sales of this segment during the first nine months ended December 31, 2011 were 10,614 million yen (10,159
million yen in the same period of the previous year) and operating income was 714 million yen (1,573 million yen in thesame period of the previous year).
<Other Businesses>
In Other Businesses, Lakewoods Garden Himeharu no Sato (Mobara City, Chiba Prefecture) opened in April 2011. In linewith its mission to deliver “joy” and “healing,” it held various types of events on its premises and pushed ahead withpreparations to develop dog therapy and gardening therapy services, in cooperation with the Health Care Business.
Greater efforts to sell Lakewoods Garden-related and other products improved earnings, and a profit was achieved forthe third quarter.
As a result, sales of this segment during the first nine months ended December 31, 2011 were 249 million yen (439
million yen in the same period of the previous year) and operating loss was 248 million yen (45 million yen of operating
income in the same period of the previous year).

(2) Qualitative information on consolidated financial position
Total assets at the end of the first nine months ended December 31, 2011 increased by 21,713 million yen compared withthe figure at the end of the previous fiscal year to 147,494 million yen. This change was caused mainly by an increase inmarketable securities in connection with the addition of GABA as a consolidated subsidiary. Current assets increased by
5,640 million yen, and goodwill and other fixed assets increased by 16,072 million yen.
Total liabilities increased by 18,483 million yen compared with the figure at the end of the previous fiscal year to 92,064
million yen. This is mainly because long-term liabilities increased by 12,339 million yen due to an increase in long-termloans payable, etc.
Total net assets increased compared with the figure at the end of the previous fiscal year by 3,230 million yen to 55,430
million yen.

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Nichii Gakkan Company (9792) Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2012(3) Qualitative information on consolidated financial result forecasts
There is no change in the consolidated financial result forecasts for the year ending March 31, 2012 which was released on
November 7, 2011.

2. Summary (other) information(1) Significant changes to subsidiaries during the period
There is no related information.
(2) Application of the specific accounting for preparing the quarterly consolidated financial statements
There is no related information.
(3) Changes in accounting policies, accounting estimates and restatement
There is no related information.

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Nichii Gakkan Company (9792) Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2012

3. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets(Thousands of yen)

As of March 31, 2011

As of December 31, 2011

AssetsCurrent assets
Cash and deposits

3,912,556

5,320,117

Notes and accounts receivable

29,891,605

31,677,488

Short-term investment securities—

1,900,200

Merchandise and finished goods

404,983

524,664

4,283

9,466

278,660

325,317

9,728,268

10,084,331(56,829)(37,515)

44,163,528

49,804,071

Buildings and structures (net)26,596,675

27,106,865

Others (net)13,730,227

19,947,851

Total tangible fixed assets

40,326,903

47,054,716

Goodwill

13,564,666

21,817,893

Others5,453,793

4,951,961

Total intangible fixed assets

19,018,460

26,769,854

Others23,331,685

24,889,844

Allowance for doubtful accounts(1,059,406)(1,023,923)

Total investments and other assets

22,272,279

23,865,921

81,617,643

97,690,492

125,781,172

147,494,564

Work in process
Raw materials and supplies
OthersAllowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets

Intangible fixed assets

Investments and other assets

Total fixed assets
Total assets-5-Nichii Gakkan Company (9792) Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2012

(Thousands of yen)

As of March 31, 2011

As of December 31, 2011

Liabilities
Current liabilities
Notes and accounts payable

979,919

1,050,637

Short-term loans payable

1,318,002

1,000,000

Income taxes payable

3,538,277

1,208,524

Other accrued expenses

14,457,396

16,833,700

Allowance for employees’ bonuses

4,223,744

2,639,247

Allowance for directors’ bonuses

35,100—

Others

15,003,932

22,968,548

Total current liabilities

39,556,372

45,700,658

Long-term loans payable

18,991,565

24,696,830

Allowance for employees’ retirement benefits

4,428,149

4,725,048

Allowance for directors’ retirement benefits

157,921161,112

Asset retirement obligations

1,233,067

1,544,441

Others9,213,699

15,235,989

Total long-term liabilities

34,024,403

46,363,422

73,580,776

92,064,080

Common stock

11,933,790

11,933,790

Capital surplus

17,354,214

17,354,214

Retained earnings

29,492,922

32,062,944

Treasury stock(6,789,290)(6,133,660)

Total shareholders’ equity

51,991,637

55,217,288

Unrealized gains (losses) on other securities(46,849)(54,998)

Total accumulated other comprehensive income(46,849)(54,998)

Minority interests

255,608

268,194

Total net assets

52,200,395

55,430,483

125,781,172

147,494,564

Long-term liabilities

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

Total liabilities and net assets-6-Nichii Gakkan Company (9792) Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2012

(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income(Quarterly consolidated statements of income)(Nine months ended December 31)(Thousands of yen)

Nine months ended
December 31, 2010

Nine months ended
December 31, 2011

Net sales

180,643,444

188,265,291

Cost of sales

144,484,659

148,919,725

Gross profit

36,158,785

39,345,565

Selling, general and administrative expenses

29,970,822

30,690,767

Operating income

6,187,962

8,654,798

83,735

106,491

Non-operating income
Interest income
Commission on consignment for office work

86,82886,228Rent income

165,180

166,435

Commission on consignment for job creation businesses

522,468

163,500

Subsidy income

132,388

166,025

Others190,711

123,264

1,181,313

811,945

Interest expenses

436,041

718,606

Rent expenses

38,85842,111Others38,03072,944

Total non-operating expenses

512,930

833,661

6,856,345

8,633,082

210—

111,148

—

5,119

3,871

—

14,641

116,478

18,51238,44136,602—

71,363504,813——147,031

Total non-operating income
Non-operating expenses

Ordinary income
Extraordinary income
Gain on sales of fixed assets
Reversal of allowance for employees’ bonuses
Gain on sales of investment securities
Reversal of provision for loss on store closing
Total extraordinary income
Extraordinary losses
Loss on retirement of fixed assets
Loss on disaster
Loss on adjustment for changes of accounting standards
for asset retirement obligations
Loss on transfer of defined contribution pension plan
Others132,779－

Total extraordinary losses

676,033

254,998

Income before income taxes and minority interests

6,296,790

8,396,597

Income taxes

2,239,207

2,789,793

Income taxes–deferred

1,234,680

1,677,015

Total income and other taxes

3,473,888

4,466,809

Income before minority interests

2,822,902

3,929,787

28,094

26,7632,794,807

3,903,024

Minority interests in income
Net income-7-Nichii Gakkan Company (9792) Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2012

(Quarterly consolidated statements of comprehensive income)(Nine months ended December 31)(Thousands of yen)

Nine months ended
December 31, 2010
Income before minority interests

Nine months ended
December 31, 2011

2,822,902

3,929,787(67,815)(67,815)(8,148)(8,148)2,755,086

3,921,639

2,726,992
28,094

3,894,875
26,763

Other comprehensive income (losses)
Unrealized gains (losses) on other securities
Total other comprehensive income (losses)
Comprehensive income(Breakdown of comprehensive income)Parent company portion of comprehensive income
Minority interest portion of comprehensive income-8-Nichii Gakkan Company (9792) Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2012

(3) Notes on premise of a going concern
There is no related information.
(4) Notes on significant fluctuation in amounts of shareholders’ equity
There is no related information.

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