Financial Results for the Year Ended March 31, 2019 (J-GAAP)May 10, 2019
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
TEL: 03-3291-2121
Scheduled date to hold the ordinary general meeting of shareholders: June 25, 2019
Scheduled date to start dividends distribution: June 26, 2019
Scheduled date for filing annual financial report: June 26, 2019
Supplementary materials prepared: Yes
Results information meeting held: Yes(for institutional investors and financial analysts)(Figures shown are rounded down to the nearest million yen.)
1. Consolidated financial results for the year ended March 31, 2019 (April 1, 2018 – March 31, 2019)(1) Consolidated operating results(Percentage figures represent changes from the previous year.)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Year ended March 31, 2019287,882
1.5
10,032
31.5
5,703
57.2
6,108 614.9
Year ended March 31, 2018283,767
2.6
7,630
81.4
3,628
153.9
854 (39.1)(Note) Comprehensive income: Year ended March 31, 2019: 6,198 million yen (473.9%)
Year ended March 31, 2018: 1,080 million yen (64.7%)
Net income
Diluted net income
Ordinary income Operating income to
Return on equity
per shareper share
to total assets
net sales
Yen
Yen
%
%
%
Year ended March 31, 2019
95.01
94.76
16.0
3.0
3.5
Year ended March 31, 2018
13.31
13.27
2.3
1.9
2.7
Reference: Equity-method investment profit (loss) : Year ended March 31, 2019: 71 million yen
Year ended March 31, 2018: 60 million yen(2) Consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
Million yen
Million yen%
Yen
As of March 31, 2019
193,640
41,07720.6
621.42As of March 31, 2018190,239
37,65619.1
566.48Reference: Shareholders’ equity: As of March 31, 2019: 39,986 million yen As of March 31, 2018: 36,363 million yen(3) Consolidated cash flows

Year ended March 31, 2019Year ended March 31, 2018

Cash flows fromoperating activities
Million yen
13,40115,802

Cash flows from investing Cash flows from financing Cash and cash equivalents
activities
activities
at end of year
Million yen
Million yen
Million yen(2,928)(10,562)
18,075(1,897)(11,792)
18,267

2. Dividends

Year ended March 31, 2018Year ended March 31, 2019Year ending March 31, 2020
(forecast)

1Q-endYen－－

2Q-end
Yen
11.00
15.00

－

20.00

Annual dividends
3Q-endYear-end
Yen
Yen
－
11.00
20.00
－

Annual
Yen
22.00
35.00

20.00

40.00

－

Total dividends paid (annual)Million yen
1,412
2,252

Payout ratio Dividends to net(consolidated) assets (consolidated)
%
165.3
36.8

%
3.9
5.9

38.4

3. Forecast of consolidated financial results for the year ending March 31, 2020 (April 1, 2019 – March 31, 2020)(Percentage figures represent changes from previous year for full year figures and from same period of previous year for interim period figures.)

Net salesFirst six months
Full year

Millionyen
149,200
303,000%
4.6
5.3

Operating income

Ordinary income

Millionyen
6,200
15,200Millionyen
4,000
11,000

%
49.2
51.5

－

1 －

%
105.4
92.9

Profit attributableto owners of parent
Million
%
yen
2,400
853.3
6,700
9.7

Net income
per shareYen
37.30
104.12

* 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: Yes
4) Restatement: None
(3) Number of shares outstanding (common stock)1) Number of shares issued and outstanding (including treasury stock)
As of March 31, 2019: 73,017,952
As of March 31, 2018: 73,017,952
2) Number of treasury stock
As of March 31, 2019: 8,671,247
As of March 31, 2018: 8,825,572
3) Average number of shares issued and outstanding in each period
Year ended March 31, 2019: 64,287,771
Year ended March 31, 2018: 64,192,894(Reference) Overview of the non-consolidated business results
1. Non-consolidated financial results for the year ended March 31, 2019 (April 1, 2018 – March 31, 2019)(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, 2019
246,560
1.2
8,687
39.2
7,084
43.4
503
(84.7)
Year ended March 31, 2018
243,588
1.6
6,241
76.2
4,939
87.1
3,300
8.4
Net income per share

Diluted net income per share

Yen
7.83
51.41

Yen
7.81
51.27

Year ended March 31, 2019Year ended March 31, 2018

2) Non-consolidated financial position
Total assets
Net assets
Million yen
Million yen
As of March 31, 2019
144,922
41,898
As of March 31, 2018
148,872
42,837
Reference: Shareholders’ equity: As of March 31, 2019: 41,293 million yen

Equity ratio

Net assets per share
%
Yen
28.5
641.7328.4
658.59As of March 31, 2018: 42,276 million yen

2. Forecast of non-consolidated financial results for the year ending March 31, 2020 (April 1, 2019– March 31, 2020)(Percentage figures represent changes from previous year for full year figures and from same period of previous year for interim period figures.)

Net salesFirst six months
Full year

Million yen
125,900
256,700

Operating income
%
2.7
4.1

Million yen
5,100
12,500Ordinary income

%
26.8
43.9

Million yen
4,400
10,900

%
28.3
53.9

Net income
Million yen
2,800
7,100

%
36.5
－

Net income
per shareYen
43.51
110.34* Financial reports are not subject to audits by a certified public accountant or an audit corporation.
* 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 tothe disclaimers, provided under “1. Overview of Business Results, Etc., (1) Analysis of business results” on page 4 of theattached document, regarding the assumptions upon which forecasts are based and the use of forecasts.

－

2 －○Table of Contents for the Attached Document
1. Overview of Business Results, Etc.……………………………………………………………………………………….
(1) Analysis of business results……………………………………………………………………………………………

44(2) Analysis of financial position………………………………………………………………………………………….
(3) Basic principles of profit distribution and dividends for the fiscal year under review and the next fiscal year……….

9
9

2. Basic Approach to Selection of Accounting Standards…………………………………………………………………….
3. Consolidated Financial Statements and Major Notes………………………………………………………………………

10
11(1) Consolidated balance sheets……………………………………………………………………………………………
(2) Consolidated statements of income and comprehensive income………………………………………………………

1114(3) Consolidated statements of changes in net assets………………………………………………………………………
(4) Consolidated statements of cash flows…………………………………………………………………………………

17
19

－

3 －

1. Overview of Business Results, Etc.
The forward-looking statements contained in the descriptions below are forecasts determined at the end of the fiscal year.
In addition, ASBJ Statement No. 28 Partial Amendments to Accounting Standard for Tax Effect Accounting (February 16,2018) and other guidelines were applied from the beginning of the first quarter of the consolidated fiscal year. With respect tothe financial position, the figures at the end of the previous consolidated fiscal year after retrospective processing were used incomparison.
(1) Analysis of business results1) Overview of business results
In May 2018, the Nichii Group formulated the medium-term management plan VISION 2025 (from the fiscal year ended
March 31, 2019 to the fiscal year ending March 31, 2025). During the fiscal year ended March 31, 2019, which is the firstyear of the plan, the Nichii Group worked on reforming business and strengthening foundations for the revival of “strong
Nichii” based on the priority strategies, namely “increasing net sales,” “establishing the business foundations of corebusinesses,” and “building the business portfolio.”
In terms of “increasing net sales,” the core Medical Support, Long-Term Care and Childcare Segments drove sales growthand new business in the Therapy Segment also contributed to higher sales through stronger area marketing and promotional
strategies.
In terms of “establishing the business foundations of core businesses,” the Group worked to achieve stable profit growth inits core businesses (the Medical Support, Long-Term Care and Childcare Segments) by making them stronger through theimplementation of strategies that anticipate future developments including system trends and employment conditions.
In terms of “building the business portfolio,” the Group implemented structural reforms and organizational reforms in the
Education Segment and the Global Segment and carried out business restructuring to accelerate the generation of profit.
Consequently, net sales for the consolidated fiscal year under review rose 1.5% year on year, to 287,882 million yen,increasing for the eleventh fiscal year. Operating income increased 31.5% year on year, to 10,032 million yen, growing for thethird consecutive fiscal year. Ordinary income was 5,703 million yen, up 57.2% from a year earlier. Net income attributable toowners of parent increased 614.9% year on year, to 6,108 million yen, reflecting the recording of income taxes-deferred of
5,183 million yen mainly due to expansion in the scope of application of tax effect accounting as a result of recovery inperformance specially in core businesses and the recording of deferred tax assets associated with the liquidation of a Chinese
subsidiary, which offset the recording of extraordinary losses of 1,662 million yen mainly due to structural reform of the
Education Business (withdrawal from the COCO JUKU business) and the reorganization of a Chinese joint venture.
Business results for the fiscal year under review are as follows.
(Overviews by business segment)
Results by business segment are as follows.
From the fiscal year ended March 31, 2019, the categories of the reporting segments were changed. The China Business andservices abroad were transferred from each department to the global segment in presentation by segment. In addition, health careproduct sales were transferred from the Health Care Segment to the Long-Term Care Segment. The segment information for theprevious consolidated fiscal year reflects the new reporting segment structure.
<Medical Support Segment>
Net sales were 107,768 million yen (compared with 107,270 million yen in the previous fiscal year). Operating income was9,246 million yen (compared with 8,899 million yen in the previous fiscal year).
The Group focused on expanding services by continuing to negotiate more reasonable contracts with medical institutions
and strengthening proposals for medical administration support services in anticipation of medical workstyle reform. The
Group also implemented initiatives with respect to its medical administration course including reviewing course duration andconducting discount campaigns to meet needs.
As a result, sales increased due to the acquisition of new contracts during the fiscal year and recovery in the number ofstudents. Income also grew due to higher profitability reflecting more reasonable contracts and the improvement of
productivity through more efficient operations.
<Long-Term Care Segment>
Net sales were 151,426 million yen (compared with 149,777 million yen in the previous fiscal year). Operating income was
16,383 million yen (compared with 14,810 million yen in the previous fiscal year).
－

4 －In the area of In-home Care Services, the Group strengthened its response to those in a moderate or severe condition andworked to improve production efficiency. In Residential Care Services, the Group focused on gaining residents by conducting
campaigns and sales activities based on collaboration between branch offices and facilities.
As a result, the Long-Term Care Segment recorded increases in sales and income due to an increase in payment per patientfor Home-Visit Care Services reflecting a higher proportion of users in a moderate or severe condition and an increase in thenumber of users/improvement in occupancy in Residential Care Services.
<Childcare Segment>
Net sales were 12,559 million yen (compared with 9,363 million yen in the previous fiscal year). Operating income was
206 million yen (compared with an operating loss of 564 million yen in the previous fiscal year).
In the fiscal year under review, the Group opened 49 new childcare facilities, and operated 251 facilities across Japan. The
Group also worked to acquire corporate-user contracts for corporate-run childcare centers and to increase recognition in eachregion by promoting expansion in regional usage limits.
As a result, the net sales of the Childcare Segment increased, exceeding 10 billion yen for the first time, due to an increasein the number of students as a result of the expansion of facilities and proactive acceptance of students. Income grew mainly
due to improvement in capacity utilization.
<Health Care Segment>
Net sales were 1,632 million yen (compared with 1,398 million yen in the previous fiscal year). Operating loss was 1,148
million yen (compared with an operating loss of 223 million yen in the previous fiscal year).
The Group actively promoted the Nichii Life housekeeping service and the Sunny Maid Service housekeeping support
business provided by foreign personnel in the National Strategic Special Zone to meet higher demand due to the increase indouble-income families. .
As a result, net sales rose, reflecting an increase in the number of service users due to promotions that meet users’ seasonalneeds and the launch of the Sunny Maid Service in the Kansai region (Hyogo Prefecture and Osaka City). Meanwhile, income
decreased due to an increase in prior expenses for the acceptance of foreign staff.
<Education Segment>
Net sales were 11,937 million yen (compared with 12,060 million yen in the previous fiscal year). Operating loss was 4,110
million yen (compared with an operating loss of 4,474 million yen in the previous fiscal year).
Starting from the consolidated fiscal year under review, the Group integrated services for adults into the “Gaba one-to-one
English conversation” brand and services for children into the “COCO JUKU Junior” brand and provided services under twobrands. However, in the case of some schools, the effect of these reforms did not manifest themselves in business results andthere was no way of escaping the prolonged stagnation. The Group, therefore, closed all COCO JUKU Junior schools except
for franchise schools and some GABA schools (51 schools) within COCO JUKU Junior schools on March 31, 2019.
As a result, net sales decreased, reflecting decline in student numbers at the now defunct COCO JUKU associated withhigher lesson prices due to a change of brand. Income increased (the loss narrowed) due to a steady increase in the number of
GABA students.
<Therapy Segment>
Net sales were 412 million yen (compared with 210 million yen in the previous fiscal year). Operating loss was 383 million
yen (compared with an operating loss of 340 million yen in the previous fiscal year).
During the consolidated fiscal year under review, the Group opened five new outlets for the pet salon A-LOVE and focusedon the acquisition of customers and improvement of customer satisfaction through initiatives including strengthening
marketing based on seasonal demand, sharing success stories between outlets and strengthening the management skills ofsalon managers.
As a result, net sales rose due to an increase in repeat customers. Prior investment in salon openings led to an operating loss.
<Global Segment>
Net sales were 1,851 million yen (compared with 3,472 million yen in the previous fiscal year). Operating loss was 1,246
million yen (compared with an operating loss of 1,665 million yen in the previous fiscal year).
The Group sought to strengthen its organizational capabilities by proceeding with the reorganization of its businessstructure in China, including reviewing the joint venture-led business promotion structure and reorganizing unprofitable joint
ventures. The Group spread Japanese style nursing care and sought to undertake contracts for the operation of long-term care－

5 －facilities and to acquire outside sales training through a METI subsidized project for which it has been selected for threeconsecutive fiscal periods.
As a result, net sales fell due to organizational restructuring, but income increased (the loss narrowed).
<Other Segments>
Net sales were 294 million yen (compared with 213 million yen in the previous fiscal year). Operating income was 228
million yen (compared with 204 million yen in the previous fiscal year).
Through goods management, data processing, lease and other businesses, the Group sought to strengthen collaboration
between Group companies and strove to encourage business promotion and improvement of profitability mainly bysupporting the Company’s core business operations and increasing the efficiency of indirect operations.
As a result, net sales increased by 80 million yen, and income rose by 23 million yen.

－

6 －2) Future outlook
In line with the Nichii vision of “aspiring to become an excellent company that makes a contribution globally by resolvingsocial issues and realizing stable long-term profit growth,” the Nichii Group formulated the medium-term management plan
VISION 2025 (from the fiscal year ended March 31, 2019 to the fiscal year ending March 31, 2025) as a roadmap forachieving this vision, and announced the plan in May 2018.
Performance targets based on the medium-term management plan are as follows.

Performance targets for2025

Net sales

Operating margin

ROE

500 billion yen or more

10% or more

Maintain the 15% level or above
with the minimum at 8%

In 2025, which is the final year of VISION 2025, the Baby Boom generation will be over the age of 75 and, with the aging
rate estimated at over 30%, the role played by health care and nursing care in supporting the elderly will become increasingly
important.
Nichii’s business structure consists of a “strategic business triangle” in which three types of business, namely the “corebusinesses” (medical support, nursing care and child care), which social contribution, balance supply (BS) businesses (healthcare, language education and therapy), which pursue economic potential, and global businesses (overseas businesses such as
the China business), which are future-oriented and pursue growth potential, collaborate with each other whilst pursuing theirfeatures respectively. Whilst maintaining this structure, the Group will assess the rapidly changing social situation from a
global perspective to progress to the optimal business structure/balance through strategic “selection and concentration.” With“business reforms and the strengthening of foundations” through “promotion of earnings structural reforms,” “creation ofadded value,” “strengthening of global readiness,” “strengthening of the human resources foundation” and “strengthening of
the financial base” and “organizational reforms” through “strengthening of strategy execution systems,” “strengthening ofbusiness bases and the power of branch offices” and “strengthening of the organization linkage function” as priority strategies,
the Group aims to realize the Nichii Vision.
In the fiscal year ending March 31, 2020, the Group will continue to implement initiatives with “making businesses
stronger,” “establishing the business foundations of core businesses” and “building the business portfolio” as priority issues.
In terms of “making businesses stronger,” the Group will continue to reform marketing under the leadership of Nichii’s
Corporate Marketing Division and will focus on increasing net sales through cross-selling and interlinked marketing across all
businesses. Through stronger corporate marketing and marketing to attract customers in the BtoC business, the constructionof a new marketing system for online marketing, the provision of training to strengthen proposal skills and closing skills, theGroup will conduct marketing activities that lead to the acquisition of new customers and expansion of market share.
Meanwhile, by further strengthening area management through the executive officer structure, the Group will seek to improvethe management capabilities of branch offices and business sites in each area and translate this into enhancement of ability toachieve business plans.
In terms of “establishing the business foundations of core businesses,” the Group will strengthen the human resources
foundation through initiatives such as the continuous implementation of strategies to secure and retain talent, and theutilization of diverse human resources including foreign workers and active seniors. The Group will also seek to develop
business environments that are able to adapt to relevant system trends and changes in the work environment and will address
the various needs and issues of local communities. It will also establish business foundations for “VISION 2025 and beyond,including improving production efficiency through innovation utilizing ICT, etc.
In terms of “building the business portfolio,” the Group will ensure improvement in profitability through the structuralreform of the Education Segment and the organizational reform of the Global Segment (China) and will quickly move thesebusinesses into profit. Meanwhile, in the new “housing keeping service” business that forms part of the Health Care segment
and the new “grooming service” business that forms part of the Therapy Segment, the Group will provide services that
anticipate market growth on the back of an increase in dual income families and households that keep pets. In particular, theGroup will make strategic upfront investment in the Sunny Maid Service housekeeping support business provided by foreign
personnel in the National Strategic Special Zone with a view to establishing the business foundations of both the Long-term
Care and the Health Care Segments and shifting away from a structure where personnel with nursing care qualifications
provide both nursing care and housekeeping services to a structure where they can devote themselves to nursing care. The
Group will meet market needs and establish a competitive edge by differentiating itself from its competitors and will develop
the new businesses into growing businesses.
Based on the above, we expect sales and income to increase in our earnings forecast for the fiscal year ending March 2020
as follows.
－

7 －[Earnings forecast for the fiscal year ending March 31, 2020]
N e t
Fiscal year ending
March 31, 2020
( F o r e c a s t )Actual results for theprevious fiscal years a l e s

(Unit: Million yen)

Operating income

O r d in a r y i n co me

Profit attributable toowners of parent

303,000

15,20011,0006,700

287,882

10,032

5,703

6,108

* 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.

－

8 －(2) Analysis of financial position
1) Overview of financial position
During the fiscal year under review, cash and cash equivalents (“cash”) decreased 191,897 thousand yen year on year, to
18,075,206 thousand 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 13,401,057 thousand yen.
The main factors were depreciation and amortization and interest expenses.
[Cash flows from investing activities]
Net cash used in investing activities came to 2,928,082 thousand 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 10,562,726 thousand yen.
This was chiefly due to the repayment of long-term loans payable.
Trends in cash flow indicators for the Group can be seen below.
Year ended March 31, 2018Year ended March 31, 2019

Equity Ratio (%)

19.1

20.6

Equity ratio based on present value (%)

40.3

43.3

Debt redemption (years)

5.6

6.3

Interest coverage ratio (times)

3.4

2.7

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, 2019, we are planning to pay a year-end dividend of 20 yen per share.
Cash dividends per share (Yen)Record date2Q-endYear-end

AnnualYear ended March 31, 201915.00 (Actual)

20.00 (Forecast)

35.00 (Forecast)Year ending March 31, 2020

20.00 (Forecast)

20.00 (Forecast)

40.00 (Forecast)－

9 －2. 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.

－

10 －3. Consolidated Financial Statements and Major Notes(1) Consolidated balance sheets(in thousand yen)
Fiscal 2018
(As of March 31, 2018)
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
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

－

11 －

Fiscal 2019
(As of March 31, 2019)18,447,925

18,255,916※３ 33,072,792※３ 33,434,278－
890,572
6,859
222,620
12,639,841(31,360)
65,249,251

256,310364,426
11,159175,533
13,291,468(104,166)
65,684,926※２ 53,851,495※２ 53,883,463(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(31,932,939)
21,950,524
87,661(79,952)
7,708※２ 4,949,963(4,090,476)
859,486
8,356,037
61,570,599(11,578,377)
49,992,221
1,146,255
82,312,235

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

9,120,932
3,494,569
84,237210,079
188,252
13,098,071

(in thousand yen)
Fiscal 2018
(As of March 31, 2018)
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
Allowance for structural reform
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

－

12 －

Fiscal 2019
(As of March 31, 2019)※１ 1,133,008※１ 1,057,664

7,644,360
2,345,634
12,952,786
3,515,559※１ 872,816(265,077)
28,199,088
124,990,634
190,239,886

7,317,061
2,138,879
12,850,169
8,617,506※１ 808,974(244,715)
32,545,539
127,955,845
193,640,771

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
38,000－7,170,909
60,459,515

747,5712,512,273
7,255,350
1,704,093
2,941,364
1,973,207
17,914,622
12,414,755
5,937,697
36,000486,086
6,741,440
60,664,463

22,007,024
53,596,996
4,440,606
2,498
2,446,418
7,524,273
2,106,381
92,124,200
152,583,715

15,998,372
57,113,991
5,193,620
3,456
3,582,707
7,742,022
2,264,360
91,898,531
152,562,995

(in thousand yen)
Fiscal 2018
(As of March 31, 2018)
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

－

13 －

Fiscal 2019
(As of March 31, 2019)11,933,790
17,026,495
19,636,670(11,376,709)
37,220,245

11,933,790
17,009,418
22,867,282(11,177,438)
40,633,052

19,091(366,488)(509,191)(856,588)
560,694
731,819
37,656,170
190,239,886

12,481(244,124)(414,813)(646,456)
605,781
485,398
41,077,776
193,640,771

(2) Consolidated statements of income and comprehensive income(Consolidated statements of income)(in thousand yen)
Fiscal 2018(from April 1, 2017
to March 31, 2018)
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 sales of investments in capital of subsidiaries
and associates
Gain on reversal of subscription rights to shares
Other segments
Total extraordinary income

－

14 －

Fiscal 2019(from April 1, 2018
to March 31, 2019)283,767,746
228,946,036
54,821,710

287,882,956
230,272,953
57,610,003

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

3,850,320
223,845
17,943,729
1,299,288
36,000588,241
172,9213,225,710
1,601,524
3,336,832
19,3781,757,083
1,884,316
11,637,868
47,577,061
10,032,941

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

142,929
197,341
39,323－
113,275
71,820261,788826,479

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

4,916,383
36,259203,370
5,156,013
5,703,407－

137,114

5,310
203
5,514

1,691
864
139,670

(in thousand yen)
Fiscal 2018(from April 1, 2017
to March 31, 2018)
Extraordinary losses
Loss on retirement of property, plant and equipment,
net
Loss on sales of property, plant and equipment, net
Loss on sales of investment securities
Loss on sales of investments in capital of subsidiaries
and associates
Structural reform expenses
Provision of allowance for structural reform
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

－

15 －

Fiscal 2019(from April 1, 2018
to March 31, 2019)※１ 83,687※１ 79,139※２ 10,308※２ 1,781－

149,705－

305,191－－※３ 692,989
1,650
788,635
2,845,416
2,509,386(360,589)
2,148,797
696,618(157,815)
854,434

193,026
486,086※３ 446,157
1,511
1,662,600
4,180,476
3,228,612(5,138,830)(1,910,218)
6,090,695(17,486)
6,108,181

(Consolidated statements of comprehensive income)(in thousand yen)
Fiscal 2018(from April 1, 2017
to March 31, 2018)
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－

16 －Fiscal 2019(from April 1, 2018
to March 31, 2019)696,618

6,090,695(1,470)82,544
302,323※１ 383,397
1,080,016(6,662)
19,901
94,378※１ 107,616
6,198,311

1,228,910

6,229,787(148,894)(31,475)

(3) Consolidated statements of changes in net assets
Fiscal 2018 (from April 1, 2017 to March 31, 2018)(in thousandyen)
Shareholders’ equity

Capital stock
Balance at the beginning of theperiodChanges of items during theperiodIncrease (decrease) due tochange in equity of subsidiaries,
etc.
Dividends from retained
earnings

11,933,790

Capital surplus

Retained earnings

17,277,876

20,006,631

Disposal of treasury stock

37,841,369

20,543(250,734)(1,412,238)(1,412,238)

854,434

854,434

Purchase of treasury stock

Balance at the end of the period(11,376,929)(250,734)

Profit attributable to owners ofparentChange of scope of
consolidation
Changes other thanshareholders’ equity during theperiod (net)Total changes of items during theperiodAccumulated othercomprehensive
incomeValuation
Treasury stock, at Total shareholders’ difference on
costequityavailable for-salesecurities(647)(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

Stock acquisitionrightsNon-controllinginterests

Total net assets

531,839799,71737,924,381

Accumulated other comprehensive income

Balance at the beginning of theperiodChanges of items during theperiodIncrease (decrease) due tochange in equity of subsidiaries,
etc.
Dividends from retained
earnings

Foreign currencytranslation
adjustments

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income(457,572)(811,515)(1,248,544)(250,734)(1,412,238)

Profit attributable to owners ofparent854,434

Purchase of treasury stock(1,730)

Disposal of treasury stock

1,302

Change of scope of
consolidation
Changes other thanshareholders’ equity during theperiod (net)Total changes of items during theperiod91,084

302,323

391,956

28,854(67,898)

352,91291,084

302,323

391,956

28,854(67,898)(268,210)

Balance at the end of the period(366,488)(509,191)(856,588)

560,694

731,819

37,656,170

187,841－

17 －Fiscal 2019 (from April 1, 2018 to March 31, 2019)(in thousandyen)
Shareholders’ equity

Capital stock
Balance at the beginning of theperiodChanges of items during theperiodIncrease (decrease) due tochange in equity of subsidiaries,
etc.
Dividends from retained
earnings

11,933,790

Capital surplus

Retained earnings

17,026,495

19,636,670

Disposal of treasury stock

37,220,245

19,091(8,427)(1,671,322)(1,671,322)

6,108,181

6,108,181

Purchase of treasury stock

Balance at the end of the period(11,376,709)(8,427)

Profit attributable to owners ofparentChange of scope of
consolidation
Changes other thanshareholders’ equity during theperiod (net)Total changes of items during theperiodAccumulated othercomprehensive
incomeValuation
Treasury stock, at Total shareholders’ difference on
costequityavailable for-salesecurities(8,649)

(713)

(713)

199,984

191,335(1,206,245)(1,206,245)(6,609)-(17,077)

3,230,612

199,271

3,412,806(6,609)11,933,790

17,009,418

22,867,282(11,177,438)

40,633,052

12,481

Accumulated other comprehensive income

Balance at the beginning of theperiodChanges of items during theperiodIncrease (decrease) due tochange in equity of subsidiaries,
etc.
Dividends from retained
earnings

Foreign currencytranslation
adjustments

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
incomeStock acquisitionrightsNon-controllinginterests

Total net assets(366,488)(509,191)(856,588)

560,694

731,819

37,656,170(8,427)(1,671,322)

Profit attributable to owners ofparent6,108,181

Purchase of treasury stock(713)

Disposal of treasury stock

191,335

Change of scope of
consolidation
Changes other thanshareholders’ equity during theperiod (net)Total changes of items during theperiod122,363

94,378210,132

45,087(246,420)

8,799

122,363

94,378210,132

45,087(246,420)

3,421,605

Balance at the end of the period(244,124)(414,813)(646,456)

605,781

485,398

41,077,776(1,206,245)

－

18 －

(4) Consolidated statements of cash flows(in thousand yen)
Fiscal 2018(from April 1, 2017
to March 31, 2018)
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 provision for directors’ 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 (gain) on sales of investment securities
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

－

19 －

Fiscal 2019(from April 1, 2018
to March 31, 2019)

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

4,180,476
6,373,765
1,884,316
446,157
326,038(2,000)53,820354,767(165,237)
4,916,383(60,541)(71,820)

21,774

149,705

83,687

79,139203

930

35,312

172,921(242,553)(405,563)

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

548,162(1,405,706)(6,540)81,598331,390(396,320)

1,912,358
378,187
1,522,732
766,507435,217
21,933,326
30,029108,135
181,447
1,429,495
2,046,838
288,720
21,169,631
50,908

11,25015,640(4,647,307)(1,524,697)
15,802,600(4,910,437)(2,924,684)
13,401,057

(in thousand yen)
Fiscal 2018(from April 1, 2017
to March 31, 2018)
Cash flows from investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of short-term investment securities
Proceeds from sales and redemption 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
Payments for investments in capital of subsidiaries andassociates
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 for sales of investments in subsidiaries
resulting in change 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

－

20 －

Fiscal 2019(from April 1, 2018
to March 31, 2019)(324,326)
311,326-(311,345)
311,344(313,320)

200,000

54,805(2,502,696)
72,990(1,260,906)(22,698)
500,001(3,009,765)
7,767(446,380)(67,443)
39,749-(113,548)※３ (15,905)-※４ (3,304)--※４ (106,624)(598,852)
324,955(609,364)
1,212,370
1,060,944(242,373)(1,897,839)(260,195)
780,789(386,355)
331,928
631,801(71,288)(2,928,082)(14,939,399)
11,294,340(5,581,300)
153(1,730)(1,410,586)(9,960)(946,893)(2,793,511)
8,417,454(13,169,050)
61(713)(1,669,861)(11,520)(1,314,628)(257,471)(30,456)

60,112(11,792,734)

9,498(10,562,726)(14,632)(10,391)

2,097,394
16,189,428(100,141)
18,267,103

71,667

14,571(91,387)(106,327)※１ 18,267,103※１ 18,075,206