Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2010
August 10, 2009
Nichii Gakkan Company
Listed on: Tokyo Stock Exchange 1st Section
9792
URL: http://www.nichiigakkan.co.jp
Daisuke Terada, President and Representative Director
Koichi Terada, Director, Vice President of Accounting and Finance Division and General Manager of
Accounting Department
TEL: 03-3291-2121
Scheduled date of filing quarterly financial report:
August 13, 2009
Scheduled date of start dividends distribution–

Name of listed company:
Securities code:
Representative:
Contact:(Figures shown are rounded down to the nearest million yen.)

1. Consolidated financial results for the first quarter ended June 30, 2009 (April 1, 2009 – June 30, 2009)(1) Consolidated operating results(Percentage figures represent changes from the same period in the previous year.)

Net Sales

Operating Income

Ordinary Income

Millions of yen%

Millions of yen

56,174

6.4

1,046

–

989

–

109

–

52,815

–

(881)

–

(943)

–

(943)

–

Three months ended
June 30, 2009
Three months ended
June 30, 2008%

Net Income

Millions of yen%

Millions of yen%

Diluted Net Income per
Share

Net Income per ShareYen
Yen
Three months ended
1.57–
June 30, 2009
Three months ended(26.78)–June 30, 2008
Note: Since we have executed a 2-for-1 common share split on April 1, 2009, the figure of net income per-share for the three months ended June 2008 did notreflect the split.

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Net Assets per Share

Millions of yen

Millions of yen%

Yen

As of June 30, 2009

119,557

47,25739.4

681.43As of March 31, 2009

120,491

47,87339.6

1,372.06

Reference: Shareholders’ equity:
First quarter ended June 30, 2009: 47,062 million yen
Year ended March 31, 2009: 47,682 million yen
Note: Since we have executed a 2-for-1 common share split on April 1, 2009, the figure of net assets per share for the year ended March 2009 did not reflect
the split.

2. Dividends
Dividends per Share (Yen)(Record date)

First Quarter

Year ended March 31, 2009－

Year ending March 31, 2010－

Second Quarter
11.00

Third Quarter

Year-End－

Annual

11.00

22.00

Year ending March 31, 2010
6.00
6.00
12.00
－
(Forecast)
Note: Change in the forecast of dividends in the first quarter of the fiscal year ending March 31, 2010: None
Note: Since we have executed a 2-for-1 common share split on April 1, 2009, the figure of dividend per share for the year ended March 2009 did not reflect the
split.

3. Consolidated financial result forecasts for the year ending March 31, 2010
(Percentage figures indicate the rate of change from the same period in the previous year.)

Net Sales

Operating Income

Ordinary Income

Net Income
per Share

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

First six months

113,300

6.9

1,600

－

1,500

－

500

－

7.19

Full year

236,000

10.5

5,470

439.6

5,350

568.4

2,500

－

35.97

Note: Revision of the forecasts in the first quarter of the fiscal year ending March 31, 2010: None1

Nichii Gakkan Company (9792) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2010

4. Others(1) Significant changes to subsidiaries during the term (transfers of specific subsidiaries with changes in the scope of
consolidation): None
(2) Adoption of the simplified accounting as well as specific accounting for preparing the quarterly consolidated
financial statements: Yes
Note: For details, please refer to Page 4, “4. Others” of “Qualitative information and financial statements.”(3) Changes in accounting policies, procedures and methods of presentation for preparing the quarterly consolidated
financial statements (changes described in the section of “Changes in significant matters forming the basis of preparing
the quarterly consolidated financial statements“)
1) Changes due to the revision of accounting standard, etc.: None
2) Changes other than 1): None
(4) Number of shares issued and outstanding (common stock)1) Number of shares issued and outstanding at the end of each period (including treasury stock)
As of June 30, 2009:

73,017,952 shares

As of March 31, 2009:

36,508,976 shares

As of March 31, 2009:

1,756,599 shares

2) Number of treasury stock at the end of each period
As of June 30, 2009:

3,954,692 shares

3) Average number of shares issued and outstanding in each period (quarterly consolidated cumulative period)First quarter ended June 30, 2009:

69,305,787 sharesFirst quarter ended June 30, 2008:

35,220,178 shares

Note: Since we have executed a 2-for-1 common share split on April 1, 2009, above figures representing the number of shares issued and outstanding(including treasury stock) and the number of treasury stock as of March 31, 2009, as well as the average number of shares issued and outstanding(quarterly consolidated cumulative period) for the first quarter ended June 30, 2008 did not reflect the split.

* Explanation concerning the appropriate use of estimated business results and other special notes
The future prospects of the business results, etc., described in this material is based on information that the company has acquired
as of the announcement date of financial report, and there is a possibility that actual business results, etc., will be materiallydifferent depending on various factors.

2

Nichii Gakkan Company (9792) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2010

[Qualitative information and financial statements]
1. Qualitative Information on Consolidated Business Results
With respect to the business environment of the health care industry during the first quarter under review, further
reinforcement of social security functions has been carried out. This includes the first upward revision of compensation for
long-term care workers since the introduction of the long-term care insurance system, and the government’s decision, as part of
the “Policy Package to Address Economic Crisis in the Field of Health Care,” to subsidize compensation for long-term care
workers as well as urgent improvement of care facilities and infrastructure.
Under the new executive management system, the Nichii Group has worked on mid- to long-term strategies for businessgrowth which can maximize the performance of its business model “Education creates Employment.” Such efforts include
improving the service provision platform within the Group as well as reinforcing its human resources system.
Net sales for the first quarter under review posted a record-high along with a substantial improvement in earnings, thanks toa steady growth in the number of facility-care service users in the Health Care Business as well as a sharp rise in the number ofstudents in the Education Business with a heightened demand for professional qualifications.
As a result, net sales during the three months ended June 30, 2009 were 56,174 million yen (52,815 million yen in the same
period of the previous year), operating income was 1,046 million yen (881 million yen of operating loss in the same period of
the previous year), ordinary income was 989 million yen (943 million yen of ordinary loss in the same period of the previousyear) and net income was 109 million yen (943 million yen of net loss in the same period of the previous year).
Business results by segment were as follows.
<Medical Support Business>
In the Medical Support Business, we continued to review and ensure the reasonableness of the contract terms and the pricewith existing medical institution clients from a medium to long-term perspective, and have successfully achieved most of ourplans and goals by increasing the number of contracts with existing medical institution clients and upgrading the contract unit
price under negotiation.
In the medical management support service, we worked on further business expansion, focusing on development andprovision of new services to support medical management operations in various ways. Consequently, we have launched newservices such as “DPC Revolution” and “Research on Interchangeability of Generic Drugs.” We also established a 100%
subsidiary Nichii Research Institute Co., Ltd. in May 2009, thereby reinforcing our operation base to prepare to begin afull-fledged business in the medical affairs consulting services.
To secure human resources that are a key factor for future business growth, we are using a part of our excess earnings fromthe negotiated contract prices to improve working conditions for our staff in the current fiscal year.
As a result, net sales of the Medical Support Business were 25,124 million yen (25,343 million yen in the same period of theprevious year), and operating income was 1,667 million yen (1,791 million yen in the same period of the previous year).
<Health Care Business>
In the Health Care Business, along with the revision of compensation for long-term care workers which was implemented in
April, we have taken initiatives to enhance the convenience and quality of our services for users under a new compensation
system, while upgrading working conditions for our staff and promoting registration for a special facility to be added to thepoint-system calculation.
For home-care services and facility-care services, both performed well in line with our projection. The number of home-careservice users including users of care planning, home-visit care, and day care services was increased steadily. At the same time,
facility-care service users saw a strong growth as a result of enhancing marketing activities through our branch network
nationwide.
In addition, focusing on expanding our health care facilities, we have opened three group homes under the Third Health Care
Business Project, which took place in each prefecture, and acquired seven group homes as a result of the transfer of health carebusiness from DUSKIN Zero-Care Co., Ltd. in April (after the business transfer, we have added eight offices for home-care
support facilities, twenty four offices for home-visit care, and seven offices for day care).
As a result, net sales of the Health Care Business were 26,382 million yen (24,595 million yen in the same period of theprevious year), and operating income was 97 million yen (690 million yen of operating loss in the same period of the previousyear).
<Education Business>
In the Education Business, we continued to focus on fostering human resources with our mainstay courses of “Medical Office
Administration” and “Home-Helper Training,” while the industry saw some progress in developing and securing a stablesource of workforce that takes an important role in the social security system, through improvement in working conditions forlong-term care workers and a promotion of professional training by the local governments in the area of medical and healthcare.
3Nichii Gakkan Company (9792) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2010

In addition, we have strengthened development efforts for the “Medical Office Clerical Workers” and “Long-term Care
Workers Basic Training” courses as well as other related courses which can foster well-trained and proficient personnel tomeet the needs of the industry.
These efforts resulted in a considerably stronger performance during the period under review. Therefore, net sales posted
4,528 million yen (2,733 million yen in the same period of the previous year) and operating income 1,319 million yen (281
million yen of operating loss in the same period of the previous year).
<Other Businesses>
As a result of our efforts to streamline operations within the Group while focusing on our core businesses, net sales were 138
million yen (143 million yen in the same period of the previous year) and operating income 76 million yen (55 million yen in thesame period of the previous year).
2. Qualitative Information on Consolidated Financial Position
Total assets at the end of the first quarter under review decreased by 933 million yen compared with the figure at the end of theprevious fiscal year to 119,557 million yen. This is mainly because fixed assets decreased by 2,650 million yen due to decreases
in investments and other assets, although current assets increased by 1,716 million yen due to increases in cash and deposits andnotes and accounts receivable.
Liabilities decreased by 317 million yen compared with the figure at the end of the previous fiscal year to 72,300 million yen.
This is mainly because long-term liabilities decreased by 411 million yen from the decrease of long-term loans payable, whereas
current liabilities increased by 94 million yen.
Net assets decreased compared with the figure at the end of the previous fiscal year by 616 million yen to 47,257 million yen.
3. Qualitative Information on Consolidated Financial Result Forecasts for the Year Ending March 31, 2010
There is no change in the consolidated financial result forecasts for the year ending March 31, 2010 which was released on May
19, 2009.
4. Others(1) Significant changes to subsidiaries during the term (transfers of specific subsidiaries with changes in the scope of
consolidation)
There is no related information.
(2) Adoption of the simplified accounting as well as specific accounting for preparing the quarterly consolidated
financial statements*Adoption of simplified method in the accounting method
Method used to value inventories
Inventories at the end of the first quarter under review were calculated in a reasonable manner, omitting partial inventory
taking, based on the physical inventory taking carried out at the end of the previous fiscal year.
Write-downs on inventory carrying values were made only on inventories with clearly diminished commercial value
based on the estimated net disposal value.
(3) Changes in accounting policies, procedures and methods of presentation for preparing the quarterly consolidated
financial statements
There is no related information.

4

Nichii Gakkan Company (9792) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2010

5. Quarterly Consolidated Financial Statements(1) Quarterly consolidated balance sheets(Thousands of yen)

As of June 30, 2009
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Merchandise and finished goods
Work in progress
Raw materials and supplies
OthersAllowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures (net)Others (net)Total tangible fixed assets
Intangible fixed assets
Goodwill
OthersTotal intangible fixed assets
Investments and other assets
OthersAllowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable
Short-term loans payable
Income taxes payable
Accrued expenses
Allowance for employee bonuses
Allowance for directors’ bonuses
OthersTotal current liabilities
Long-term liabilities
Long-term loans payable
Allowance for employee retirement benefits
Allowance for directors’ retirement benefits
OthersTotal long-term liabilities
Total liabilities

5

As of March 31, 2009

5,649,851
27,055,636
351,231
1,653
165,284
6,141,181(114,597)
39,250,242

4,727,904
25,720,516
311,592
3,100
155,076
6,722,029(106,666)
37,533,553

27,536,955
9,353,567
36,890,523

27,033,300
9,535,703
36,569,004

19,621,867
4,237,153
23,859,021

19,920,273
4,135,517
24,055,790

20,250,815(692,661)
19,558,154
80,307,698
119,557,940

23,028,576(695,206)
22,333,369
82,958,164
120,491,717

1,045,747
8,360,000
502,650
13,399,333
1,928,838
25,733
11,928,999
37,191,301

803,676
8,668,002
870,677
12,800,370
2,626,995
32,40011,294,730
37,096,853

25,920,626
3,836,902
144,301
5,207,516
35,109,346
72,300,648

26,622,366
3,704,320
142,044
5,052,291
35,521,022
72,617,875

Nichii Gakkan Company (9792) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2010

(Thousands of yen)

As of June 30, 2009
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Unrealized gains and adjustments
Unrealized gains on other securities
Total unrealized gains and adjustments
Minority interests
Total net assets
Total liabilities and net assets

6

As of March 31, 2009

11,933,790
17,354,214
24,546,857(6,788,150)
47,046,712

11,933,790
17,354,214
24,820,390(6,436,143)
47,672,252

15,33915,339195,240
47,257,292
119,557,940

10,02810,028
191,560
47,873,842
120,491,717

Nichii Gakkan Company (9792) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2010(2) Quarterly consolidated statements of income(Three months ended June 30, 2009)(Thousands of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Commission on consignment for office work
Income from lease of fixed assets
Rent income
OthersTotal non-operating income
Non-operating expenses
Interest expenses
Bond interest
Rent expenses
OthersTotal non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of fixed assets
Reversal of allowance for doubtful accounts
Gain on prior periods bad debts recovered
Total extraordinary income
Extraordinary losses
Loss on retirement of fixed assets
Loss on valuation of investment securities
Loss on liquidation of businessTotal extraordinary losses
Net income (loss) before income taxes and minority interests
Income taxes
Income taxes–deferred
Total income and other taxes
Minority interests income of consolidated subsidiaries
Net income (loss)

Three months ended
June 30, 2008
52,815,977
44,178,398
8,637,579
9,519,480(881,901)

Three months ended
June 30, 2009
56,174,054
44,914,458
11,259,596
10,213,116
1,046,480

7,760
21,52326,933–32,21688,433

7,769
29,076–33,17433,219103,239

124,768
13,004–
12,614150,387(943,854)

132,849
2,568
15,403
9,559
160,381989,338

–
2,857
–
2,857

350
–
69,757
70,108

2,964
–
–
2,964
(943,961)
146,325(155,289)(8,963)8,370(943,368)

8,293
120,945
3,192
132,431927,014314,034
495,761
809,795
8,179
109,039(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.

7