Financial Results for the First Nine Months of the Fiscal Year Ending March 31, 2013 (J-GAAP)
February 8, 2013
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 12, 2013
Scheduled date to start dividends distribution:―
Supplementary quarterly materials prepared: Yes
Quarterly results information meeting held: Yes (for institutional investors and analysts)(Figures shown are rounded down to the nearest million yen.)

1. Consolidated financial results for the nine months ended December 31, 2012 (April 1, 2012 - December 31, 2012)(1) Consolidated business results(Percentage figures represent changes from the previous year.)

Net Sales

Operating Income

Ordinary Income

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

199,587

6.0

6,634

(23.3)

6,126(29.0)

2,885(26.1)

188,265

4.2

8,654

39.9

8,633

25.9

3,903

39.7

Nine months ended
December 31, 2012
Nine months ended
December 31, 2011

(Note) Comprehensive income: Nine months ended December 31, 2012: ¥3,025 million (-22.9 %)Nine months ended December 31, 2011: ¥3,921 million (42.3%)

Net Income
per Share
Nine months ended
December 31, 2012
Nine months ended
December 31, 2011

Diluted Net Income
per Share
Yen

Yen

41.49

―

56.52

―

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of December 31, 2012

162,966

59,601

36.4

As of March 31, 2012

157,816

57,442

36.2(Reference) Shareholders’ equity: As of December 31, 2012: ¥59,304 million

As of March 31, 2012: ¥57,166 million

2. Dividends
1Q-endYear ended March 31, 2012
Year ending March 31, 2013

Cash Dividends per Share
3Q-end2Q-endYear-end

Annual

Yen

Yen

Yen

Yen

Yen

―
―

8.00
9.00

―
―

8.00

16.00

9.00

18.00

Year ending March 31, 2013
(forecast)(Note) Revision since the most recently announced dividend forecast: None

3. Forecast of consolidated financial results for the year ending March 31, 2013 (April 1, 2012 - March 31, 2013)(Percentage figures represent changes from previous year for full year figures.)

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

266,800

3.7

7,200

(38.3)

6,700(47.1)

2,900(50.8)

41.66(Note) Revision since the most recently announced financial result forecast: None

* Notes(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries resulting in changes inscope of 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
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): Yes
3) Changes in accounting estimates: Yes
4) Restatement: None
(Note) These changes are relevant to “Changes in significant matters forming the basis of preparing the quarterly consolidated financial
statements (Section 5 of Article 10)”. For more details, please refer to “2. Summary (Notes) information, (3) Changes in accounting
policies, accounting estimates and restatement” on page 4.

(4) Number of shares outstanding (common stock)1) Number of shares issued andoutstanding (including treasury stock)

As of Dec. 31, 2012:

73,017,952 shares As of March 31, 2012:

73,017,952 shares

2) Number of treasury stock

As of Dec. 31, 2012:

3,131,366 shares As of March 31, 2012:

3,574,673 shares

3) Average number of shares issued andoutstanding in each period(quarterly consolidated cumulative
period)Nine months ended
Dec. 31, 2012:

69,541,611 shares

Nine months ended
Dec. 31, 2011:

69,061,330 shares* Implementation status of quarterly review procedures

The quarterly review procedure based on the Financial Instruments and Exchange Act does not apply to these quarterly financial statements,
and the procedure based on the Financial Instruments and Exchange Act is in operation as of the release of these quarterly financial
statements.

* Explanation concerning the appropriate use of financial result forecasts and other special notes

The above forecasts are based on information Nichii Gakkan Company had in its possession 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 tothe 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) Financial Results for the First Nine Months of the Fiscal Year Ending March 31, 2013

Table of Contents for the Attached Document
1. Qualitative information on quarterly financial results·················································································· 2(1) Qualitative information on consolidated business results················································································2(2) Qualitative information on consolidated financial position·············································································4(3) Qualitative information on consolidated financial result forecasts ································································4

2. Summary (Notes) information ························································································································· 4(1) Changes in significant 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 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······························································91

Nichii Gakkan Company (9792) Financial Results for the First Nine Months of the Fiscal Year Ending March 31, 2013

1. Qualitative information on quarterly financial results(1) Qualitative information on consolidated business results
The first nine months of the fiscal year ending March 31, 2013, saw revisions to both the long-term care insurance systemand to compensation for medical services and long-term care in April, and the passage of a comprehensive reform of social
security and tax in August. In addition, the National Council on Social Security System Reform began intensive
deliberations to address various issues that have been building in the areas of medical services, long-term care, pensions,and child rearing, with the aim of formulating reform bills to establish an optimal social security system by 2025.
In December, the newly elected Liberal Democratic Party and New Komeito Party coalition launched a new cabinet,
which has put forth economic policies emphasizing financial and fiscal proposals and a growth strategy to end deflation.
Various policy targets have been announced that will lead to new services in the growth areas of medical services, long-termcare, and education, including the expansion of medical and long-term care services, support for global expansion andhuman resource development, and support for young persons and women entering the workplace.
To address these environmental changes and diversifying needs, the Nichii Gakkan Group launched a medium-term
management strategy in April 2012 to strengthen the operating base and expand the scope of operations at each of ourbusinesses, to achieve stable, long-term growth.
Group restructuring to strengthen the operating base during the nine months ended December 31, 2012 included thespinning off of the long-term care worker dispatching business of wholly owned subsidiary Nihon Support Service Co., Ltd.,and the merger by absorption (simple merger) of Marunouchi Publishing Co., Ltd., a producer and seller of books andeducational materials related to long-term care.
The Nichii Gakkan Group also strove to expand the scope of our operations by aggressively developing areas where
growth is expected going forward – the language education business, services not covered by long-term care insurance, andmedical service management support services.
The language education business launched the new COCO Juku brand and is proactively opening classrooms nationwide.
This is part of the business’s plan to build a total support structure that addresses a broad range of needs, from group lessons
to one-on-one lessons, and from achieving accreditations like TOEIC to support for studying abroad.
In terms of business results, the Nichii Gakkan Group achieved record sales on an increase in the number of hospitals
under contract, growth in the number of long-term care service users, and a full-year earnings contribution from GABA
Corporation, our wholly owned subsidiary newly added to the scope of consolidation. Profit was pressured, however, withstrategic investment at the language education business experiencing delays in classroom openings and in start-up
promotional and marketing activities.
As a result, consolidated net sales during the nine months ended December 31, 2012 totaled 199,587 million yen(188,265 million yen in the same period of the previous year), with operating income of 6,634 million yen (8,654 millionyen), ordinary income of 6,126 million yen (8,633 million yen), and net income of 2,885 million yen (3,903 million yen).
Results by business segment are as follows:<Medical Support Business>
The Medical Support Business recorded a higher rate of sales growth on increased sales per hospital and the acquisition of
new hospitals under contract. Although there was a temporary decline in profit, operational efficiency continues to improveat existing medical institution customers through staff skill enhancement.
Management support services were expanded with the acquisition of a patent for the “DPC Revolution” DPC verification
system in May, and the conclusion of an operational tie-up agreement with Microsoft Japan Co., Ltd., on October 1. Under
this tie-up, we are striving to develop and provide new services that fuse human resource strengths with IT capabilities, andlaunched OPECT, Japan’s first contactless image operating system for operating rooms in October, and the Medicloud
cloud-based groupware for medical institutions in December.
As a result, segment sales for the nine months ended December 31, 2012 totaled 77,951 million yen (compared with
77,242 million yen in the same period of the previous fiscal year), with operating income of 6,169 million yen (6,266
million yen).
<Health Care Business>
The April 2012 Revision to Long-Term Care Compensation factored higher compensation paid to long-term care workers
into long-term care compensation, resulting in an effective downward revision. The Nichii Gakkan Group strengthened its

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Nichii Gakkan Company (9792) Financial Results for the First Nine Months of the Fiscal Year Ending March 31, 2013

efforts to acquire users of long-term care services, proactively developed long-term care facilities, and made progress in
improving the efficiency of facility operations, resulting in continued sales and profit growth.
In the area of services not covered by long-term care insurance, proactive marketing activities maintained a solid pace inthe number of users of welfare services for disabled persons, and we strove to develop private brand products as we focusedon expanding the business in response to the needs of long-term care users.
As of the end of December, there were 56 home-nursing care facilities in place, as we worked to build a structure forproviding services that strengthen cooperation between medical services and long-term care.
During the nine months ended December 31, 2012, home-care services facilities saw the opening of 33 new care plan
facilities (bringing the total to 770), 34 new home-visit care facilities (1,096; including home-visit bathing facilities), 24
new day-care facilities (350), and 33 new home-nursing care facilities (56). In the area of facility-care services, we opened
four new Nichii no Hohoemi facilities (bringing the total to 245), eight new Nichii no Kirameki facilities (51), and two new
Nichii Home facilities nursing homes (52).
As a result, segment sales for the nine months ended December 31, 2012 totaled 105,920 million yen (compared with
100,157 million yen in the same period of the previous fiscal year), with operating income of 8,605 million yen (7,527
million yen).
<Education Business>
In preparation for the April 2013 revisions to the accreditation system for long-term care workers, the Home Helper Level 2
Course is shifting to training for first-time long-term care workers, and enrollments since the second quarter have been solid.
Enrollments for the Medical Administration Course are declining, however, with a gradually improving employment
environment leading to decreased demand for accreditation.
Given this environment, the Nichii Gakkan Group is pursuing strategic investment in the language education business,where growth is expected going forward, to improve the balance of the business structure to minimize the effect economic
fluctuations and achieve stable growth.
There were 61 COCO Juku as of the end of December 2012, and progress is being made in building an operating base forthe language education business, mainly in major cities across Japan. Earnings have been pressured by upfront expenses forproactive classroom openings and promotional activities, and by a slower-than-planned pace of enrollments. Recently,
however, there has been a gradual but steady increase in the number of students as a result of reviews of our business
management structure and our advertising, as well as the development of a range of courses to meet students’ diverse needs.
Going forward, we will strengthen cooperation among COCO Juku, GABA Corporation, and SELC, which provides
support for studying abroad, to build a business structure that can address the various needs of a broad range of age groups.
At the same time, we will pursue synergies across businesses, including human resource support for medical institutions, anarea that is becoming increasingly global, and English lessons for children at child-care facilities.
Enrollments at GABA Corporation continue to show solid growth, and with the opening of the Akihabara Learning Studioin October, there are now 37 schools operating.
As a result, segment sales for the nine months ended December 31, 2012 totaled 15,453 million yen (compared with
10,614 million yen in the same period of the previous fiscal year), with an operating loss of 2,662 million yen (a 714 million
yen profit in the same period of the previous year).
<Other Businesses>
Nichii Green Farm Company strove to raise recognition of our therapeutic dogs and increase sales at Lakewoods Garden
Himeharu no Sato, in Mobara City, Chiba Prefecture, while also working to make the facility’s operations more efficient.
As a result, segment sales for the nine months ended December 31, 2012 totaled 262 million yen (249 million yen in thesame period of the previous fiscal year), with a 140 million yen operating profit (a 248 million yen loss in the same periodof the previous year).

3

Nichii Gakkan Company (9792) Financial Results for the First Nine Months of the Fiscal Year Ending March 31, 2013

(2) Qualitative information on consolidated financial position
Total assets at the end of the nine months ended December 31, 2012 increased by 5,150 million yen from the end of theprevious fiscal year, to 162,966 million yen. The main factor behind this growth was a 6,114 million yen increase innoncurrent assets from growth in property, plant and equipment, which was partially offset by a 964 million yen decrease incurrent assets from a decline in cash and deposits.
Liabilities increased by 2,990 million yen from the previous fiscal year-end, to 103,364 million yen. Despite a 144
million yen decrease in current liabilities that included a decrease in income taxes payable, an increase in lease obligations
led to a 3,135 million yen increase in noncurrent liabilities.
Net assets increased by 2,159 million yen from the previous fiscal year-end, to 59,601 million yen.

(3) Qualitative information on consolidated financial result forecasts
There is no change in the consolidated financial result forecast for the year ending March 31, 2013 which was released on
November 7, 2012.

2. Summary (Notes) information(1) Changes in significant 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
Changes in accounting policies(Change in depreciation method for property, plant and equipment)
Previously, for depreciation of property, plant and equipment, the Nichii Gakkan Group (the Nichii Gakkan Company andits consolidated subsidiaries) applied the declining balance method, which has been changed to the straight line method fromthe three months ended June 30, 2012.
Taking into consideration the Nichii Gakkan Group’s further global business development going forward, a review of theinvestment effect of property, plant and equipment from the perspective of integrating Group accounting policies andproperly adjusting periodic income determined that the straight line method represented an allocation of expenses that
conformed more closely to the actual use of these assets.
The effect of this change was to increase consolidated operating income, ordinary income, and net income before income
taxes and minority interests for the nine months ended December 31, 2012, by 342 million yen, respectively.

4

Nichii Gakkan Company (9792) Financial Results for the First Nine Months of the Fiscal Year Ending March 31, 2013

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

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Short-term investment securities
Merchandise and finished goods
Work in process
Raw materials and supplies
OthersAllowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures (net)
Lease assets (net)Others (net)Total property, plant and equipment
Intangible assets
Goodwill
OthersTotal intangible assets
Investments and other assets
OthersAllowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

5

FY2012FY2013(As of March 31, 2012)(As of December 31, 2012)

8,699,654
31,802,791
1,599,880
599,236
5,810
333,724
11,099,077(38,293)
54,101,880

6,671,037
32,081,725
2,198,239
638,129
98,011
302,158
11,235,512(87,608)
53,137,206

26,996,379
15,540,953
9,632,708
52,170,041

29,454,746
19,472,774
9,719,456
58,646,976

21,918,063
4,900,437
26,818,501

20,717,280
4,196,673
24,913,953

25,733,630(1,007,711)
24,725,918
103,714,460
157,816,341

27,244,240(975,834)
26,268,405
109,829,335
162,966,542

Nichii Gakkan Company (9792) Financial Results for the First Nine Months of the Fiscal Year Ending March 31, 2013

(Thousands of yen)

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Income taxes payable
Accrued expenses
Provision for bonuses
Provision for directors’ bonuses
Other provision
OthersTotal current liabilities
Noncurrent liabilities
Long-term loans payable
Lease obligations
Provision for retirement benefits
Provision for directors’ retirement benefits
Asset retirement obligations
OthersTotal noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

6

FY2012FY2013(As of March 31, 2012)(As of December 31, 2012)

957,132
193,091
3,274,561
16,178,955
4,775,256
36,50042,34523,451,659
48,909,502

1,088,244
2,202,765
368,138
17,447,394
2,469,435－
6,630
25,182,462
48,765,071

24,990,175
15,833,977
4,719,843
162,923
1,542,245
4,215,370
51,464,536
100,374,038

23,559,305
19,818,558
5,024,141
166,037
1,678,781
4,352,827
54,599,652
103,364,723

11,933,790
17,354,214
34,057,020(6,133,715)
57,211,311

11,933,790
17,354,214
35,320,226(5,372,639)
59,235,592(45,042)－(45,042)
276,034
57,442,302
157,816,341

25,802
43,417
69,220297,006
59,601,818
162,966,542

Nichii Gakkan Company (9792) Financial Results for the First Nine Months of the Fiscal Year Ending March 31, 2013

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Rent income
Commission on consignment for job creation businesses
Subsidy income
OthersTotal non-operating income
Non-operating expenses
Interest expenses
Rent expenses
OthersTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Reversal of provision for loss on store closing
Total extraordinary income
Extraordinary losses
Loss on retirement of noncurrent assets
Loss on sales of noncurrent assets
Loss on valuation of investment securities
Loss on disaster
Loss on transfer of defined contribution pension plan
OthersTotal extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income

7

FY2012FY2013(from April 1, 2011
to December 31, 2011)(from April 1, 2012
to December 31, 2012)

188,265,291
148,919,725
39,345,565
30,690,767
8,654,798

199,587,654
157,123,886
42,463,767
35,829,057
6,634,710

106,491
166,435
163,500
166,025
209,493
811,945

107,898
153,307
134,778
204,258
299,175
899,418

718,606
42,111
72,944
833,661
8,633,082

1,305,548
37,41965,006
1,407,974
6,126,154

3,871
14,641
18,512

1,922
－
1,922

36,602－－
71,363147,031－254,998
8,396,597
2,789,793
1,677,015
4,466,809
3,929,787
26,763
3,903,024

38,407
3,221
199,980－－
69,001
310,610
5,817,465
1,872,980
1,033,734
2,906,714
2,910,751
25,4712,885,279

Nichii Gakkan Company (9792) Financial Results for the First Nine Months of the Fiscal Year Ending March 31, 2013

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

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

8

FY2012(from April 1, 2011
to December 31, 2011)

FY2013(from April 1, 2012
to December 31, 2012)

3,929,787

2,910,751(8,148)－(8,148)3,921,639

70,84543,417
114,263
3,025,014

3,894,875
26,763

2,999,542
25,471

Nichii Gakkan Company (9792) Financial Results for the First Nine Months of the Fiscal Year Ending March 31, 2013

(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.

9