Financial Results for the Year Ended March 31, 2020 (J-GAAP)May 8, 2020
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, Representative Director and President
Contact:
Kazuya Shiiya , Executive Officer and General Manager-Accounting
TEL:03-3291-2121
Scheduled date to hold the ordinary general meeting of shareholders:June 24, 2020
Scheduled date to start dividends distribution:June 25, 2020
Scheduled date for filing annual financial report: June 25, 2020
Supplementary materials prepared: Yes
Results information meeting held: None
(Figures shown are rounded down to the nearest million yen.)
1. Consolidated financial results for the year ended March 31, 2020 (April 1, 2019 – March 31, 2020)(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, 2020
297,965
3.5
12,162
21.2
7,483
31.2
4,058 (33.6)
Year ended March 31, 2019287,882
1.5
10,032
31.5
5,703
57.2
6,108
614.9
(Note) Comprehensive income: Year ended March 31, 2020: 4,319 million yen（△30.3％）
Year ended March 31, 2019: 6,198 million yen（473.9％）
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, 2020
62.97
62.43
9.8
3.9
4.1
Year ended March 31, 2019
95.01
94.76
16.0
3.0
3.5
Reference: Equity-method investment profit (loss) : Year ended March 31, 2020 :111 million yen
Year ended March 31, 2019: 71 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, 2020
192,804
44,02522.4
660.91
As of March 31, 2019
193,640
41,07720.6
621.42
Reference: Shareholders’ equity: As of March 31, 2020: 43,180 million yen As of March 31, 2019: 39,986 million yen(3) Consolidated cash flows

Year ended March 31, 2020
Year ended March 31, 2019

Cash flows fromoperating activities
Million yen
10,43913,401

Cash flows from investing Cash flows from financing Cash and cash equivalents
activities
activities
at end of year
Million yen
Million yen
Million yen(1,907)(8,163)
18,386(2,928)(10,562)
18,075

2. Dividends
Annual dividends

Year ended March 31, 2019Year ended March 31, 2020
Year ending March 31, 2021
(forecast)

Total dividends paid (annual)

1Q-end2Q-end3Q-endYear-end

Annual

Yen
－
－

Yen
15.00
20.00

Yen
－
－

Yen
20.00
20.00

Yen
35.00
40.00

－

－

－

－

－

Million yen
2,252
2,595

Dividends to net
Payout ratio assets (consolidated)(consolidated)
%
36.8
63.5

%
5.9
6.2

－

(Note) As announced in the press release “Notice Regarding Implementation of Management Buyout and Recommendation to Tender
Shares” on May 8, 2020, the Company is scheduled to become a wholly owned subsidiary of K.K. BCJ-44 (hereinafter the“Tender Offeror”) as a result of a tender offer by the Tender Offeror for common shares outstanding (hereinafter the “Company’s
Shares”) and share acquisition rights of the Company (hereinafter the “Tender Offer”) and a series of subsequent transactions, andthe Company’s Shares are scheduled to be delisted. Therefore, the forecast of dividends for the fiscal year ending March 31, 2021
is not stated.
3. Forecast of consolidated financial results for the fiscal year ending March 31, 2021 (April 1, 2020 to March 31, 2021)
As announced in the press release “Notice Regarding Implementation of Management Buyout and Recommendation to Tender
Shares” on May 8, 2020, the Company is scheduled to become a wholly-owned subsidiary of the Tender Offeror as a result of theTender Offer by the Tender Offeror and a series of subsequent transactions, and the Company’s Shares are scheduled to be delisted.
Therefore, the forecast of consolidated financial results for the fiscal year ending March 31, 2021 is not stated.
－ 1 －* Notes(1) Changes in subsidiaries during the fiscal year (Changes in specified subsidiaries resulting in changes in scope of consolidation): None
(2) Changes in accounting policies, changes of accounting estimates and restatement
1) Changes in accounting policies due to revisions of accounting standards, etc.: None
2) Changes in accounting policies due to reasons other than those stated in 1): None
3) Changes in accounting estimates: None
4) Restatement: None
(3) Number of shares outstanding (common stock)1) Number of shares issued and outstanding (including treasury stock)
As of March 31, 2020: 73,017,952
As of March 31, 2019:73,017,952
2) Number of treasury stock
As of March 31, 2020: 7,682,005
As of March 31, 2019: 8,671,247
3) Average number of shares issued and outstanding in each period
Year ended March 31, 2020: 64,455,830
Year ended March 31, 2019: 64,287,771(Reference) Overview of the non-consolidated business results
1. Non-consolidated financial results for the year ended March 31, 2020 (April 1, 2019– March 31, 2020)(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, 2020
252,572
2.4
10,032
15.5
8,005
13.0
4,934
880.1
Year ended March 31, 2019
246,560
1.2
8,687
39.2
7,084
43.4
503
(84.7)

Year ended March 31, 2020
Year ended March 31, 2019

Net income per share

Diluted net income per share

Yen
76.56
7.83

Yen
75.91
7.81

2) Non-consolidated financial position
Total assets
Net assets
Million yen
Million yen
As of March 31, 2020
144,250
45,565
As of March 31, 2019
144,922
41,898Reference: Shareholders’ equity: As of March 31, 2020: 45,312million yen

Equity ratio

Net assets per share
%
Yen
31.4
693.5328.5
641.73As of March 31, 2019: 41,293 million yen

2. Forecast of non-consolidated financial results for the year ending March 31, 2021 (April 1, 2020– March 31, 2021)
As announced in the press release “Notice Regarding Implementation of Management Buyout and Recommendation to Tender
Shares” on May 8, 2020, the Company is scheduled to become a wholly owned subsidiary of K.K. BCJ-44 (hereinafter the“Tender Offeror”) as a result of a tender offer by the Tender Offeror for common shares outstanding (hereinafter the “Company’s
Shares”) and share acquisition rights of the Company (hereinafter the “Tender Offer”) and a series of subsequent transactions, andthe Company’s Shares are scheduled to be delisted. Therefore, the forecast of dividends for the fiscal year ending March 31, 2021
is not stated.
* 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(Note on forward-looking statements, etc.)
As announced in the press release “Notice Regarding Implementation of Management Buyout and Recommendation to Tender
Shares” on May 8, 2020, the Company is scheduled to become a wholly owned subsidiary of K.K. BCJ-44 (hereinafter the“Tender Offeror”) as a result of a tender offer by the Tender Offeror for common shares outstanding (hereinafter the “Company’s
Shares”) and share acquisition rights of the Company (hereinafter the “Tender Offer”) and a series of subsequent transactions, andthe Company’s Shares are scheduled to be delisted. Therefore, the forecast of dividends for the fiscal year ending March 31, 2021
is not stated.

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2

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○Table of Contents for the Attached Document
1. Overview of Business Results, Etc.……………………………………………………………………………………….
(1) Overview of business results…………………………………………………………………………………………
(2)Overview of financial position………………………………………………………………………………………
(3) Overview of cash flows ………………………………………………………………………………
(4) Basic principles of profit distribution and dividends for the fiscal year under review and the next fiscal year……….
2. Basic Approach to Selection of Accounting Standards…………………………………………………………………….
3. Consolidated Financial Statements and Major Notes………………………………………………………………………
(1) Consolidated balance sheets……………………………………………………………………………………………
(2) Consolidated statements of income and comprehensive income………………………………………………………
(3) Consolidated statements of changes in net assets………………………………………………………………………
(4) Consolidated statements of cash flows…………………………………………………………………………………

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3

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4
4
7
7
8
8
9
9
12
15
17

1. Overview of Business Results, Etc.
(1) Overview of business results
The Nichii Group (the “Group”) is promoting the enhancement of its revenue base through the medical support business,the long-term care business and the childcare business as its core operations, structural reforms of the education business andthe global (China) business and far-sighted growth investments in order to establish a business foundation that will lead to
long-term, stable growth by responding and contributing to the diversification of social issues and needs, with the aim ofrealizing its medium-term management plan VISION 2025.
In the fiscal year under review, net sales marked a record high for the 12th consecutive year with net sales remaining firmin the core operations of the medical support, long-term care and childcare businesses due to the field-based business reforms
and strengthened area management. In addition, the profit level of the entire Group improved thanks to progress in the
reduction of fixed costs based on structural reforms of the education and global (China) businesses through selection andconcentration.
The Group also promoted growth investments for the purpose of strengthening its business foundation through thereorganization of home-visit care service offices and securing and retaining human resources, which are the source of its
service supply capacity, including a continuous improvement in employee treatment and investments in human resources to
accept foreign staff.
As a result, net sales totaled 297,965 million yen (up 3.5% year on year), operating income amounted to 12,162 million yen(up 21.2% year on year), ordinary income came to 7,483 million yen (up 31.2% year on year), and profit attributable toowners of parent stood at 4,058 million yen (down 33.6% year on year).
Business results for the fiscal year under review are as follows.
<Medical Support Segment>
Net sales were 114,325 million yen (compared with 107,768 million yen in the previous fiscal year). Operating income
was 9,730 million yen (compared with 9,246 million yen in the previous fiscal year).
In the hospital segment, the Group promoted an improvement in operation efficiency and the rationalization of working
hours in medical institutions by which the Group is contracted and focused on contract rationalization through negotiations
with the medical institutions. In the medical education segment, the number of students taking medical courses increased
steadily due to active promotional efforts, and this resulted in the strengthening of the segment’s human resource supply
capacity.
In the fiscal year under review, the Group also consolidated Yao Medical PFI Co., Ltd., a specified purpose company that
operated the PFI project of Yao Municipal Hospital in Osaka.
As a result, net sales increased mainly due to the expansion of the contracted business and the new consolidation of Yao
Medical PFI Co., Ltd. Operating income rose, reflecting enhanced revenue due to contract rationalization and an
improvement in productivity based on higher operating efficiency.
<Long-Term Care Segment>
Net sales were 153,788 million yen (compared with 151,426 million yen in the previous fiscal year). Operating income was
15,857 million yen (compared with 16,383 million yen in the previous fiscal year).
The in-home care service segment restructured its system of delivering services by splitting and newly establishing homevisit care service offices as a growth strategy that will contribute to the development of the community-based integrated caresystem, in addition to efforts to secure and retain care workers and strengthen its ability to respond to users in moderate andsevere conditions. The split and the new establishment of a total of 402 offices had been completed as of the end of March
2020, and the segment worked to organize operation systems and improve the management system based on the home-visit
care service organization that has 1,405 offices.
The residential care service segment established one fee-based nursing home and one group home in the fiscal year underreview and worked to shorten the vacancy period after occupants moved out to raise the occupancy rate.
As a result, net sales grew due to an increase in users and a rise in the operating rate of residential care service facilities.
Operating income decreased because of upfront investments associated with the restructuring of home-visit care service
offices.

－4－<Childcare Segment>
Net sales were 15,220 million yen (compared with 12,559 million yen in the previous fiscal year). Operating income was
373 million yen (compared with 206 million yen in the previous fiscal year).
In the fiscal year under review, the Group opened 52 new childcare facilities and operated 251 facilities across Japan. The
Group worked to raise the operating rate of new and existing childcare centers to reduce the number of children on waiting
lists and contribute to the social advancement of women by promoting an approach to local governments and activelytransmitting information using the website for licensed childcare centers and by strengthening sales to corporations andexpanding the regional usage limits for corporate-run childcare centers.
As a result, net sales and operating income increased, reflecting a rise in the number of children using the facilities due toimproved marketing and an increase in locations, as well as the improved operating rate of existing facilities.
<Health Care Segment>
Net sales were 1,704 million yen (compared with 1,632 million yen in the previous fiscal year). Operating loss was 2,144
million yen (compared with an operating loss of 1,148 million yen in the previous fiscal year).
The segment operates Nichii Life, which offers housekeeping and family long-term care services, and the Sunny Maid
Service, which provides housekeeping services in Japan’s National Strategic Special Zones. The segment worked to acquire
new customers through promotional efforts that captured seasonal demand, improve its service quality and enhance its ability
to encourage a shift to fixed-term plans. In the Sunny Maid Service, the segment began providing services in Aichi Prefecturein September 2019. In addition, the segment made human resource investments for the acceptance of foreign workers inanticipation of the expansion of the housekeeping service market and synergetic effects with the long-term care business.
Consequently, net sales grew thanks to a rise in the number of the users due to strengthened sales promotion, expanded
areas and improved customer satisfaction. Operating loss increased due to a rise in expenses for human resource investments.
<Education Segment>
Net sales were 10,359 million yen (compared with 11,937 million yen in the previous fiscal year). Operating loss was 1,330
million yen (compared with an operating loss of 4,110 million yen in the previous fiscal year).
In the fiscal year under review, the withdrawal from the COCO Juku business was completed, and the franchise schools of
COCO Juku Junior and New York University School of Professional Studies Tokyo were closed in March 2020.
Gaba Corporation (“Gaba”), a subsidiary, worked to improve the quality of lessons and the student support system and ran
promotions using TV ads and publicity posters in trains to increase the number of students in its one-to-one English
conversation lessons.
As a consequence, net sales decreased due to a fall in the number of students associated with the closure of the former
COCO Juku classes and a fall in the number of business days at Gaba as a result of measures (temporary cancellation ofclasses) to prevent the spread of the COVID-19 coronavirus. Operating loss was smaller due to the reduction of fixed costs.
<Therapy Segment>
Net sales were 594 million yen (compared with 412 million yen in the previous fiscal year). Operating loss was 192 million
yen (compared with an operating loss of 383 million yen in the previous fiscal year).
The segment operates 24 stores nationwide of the A-LOVE dog salon and hotel brand. Active promotional efforts throughthe website and social media and the strengthened ability to propose services tailored to individual customers led to an
improvement in customer satisfaction.
This resulted in sales growth and a reduction in operating loss thanks to an increase in new and returning customers and arise in sales per customer.
<Global Segment>
Net sales were 1,646 million yen (compared with 1,851 million yen in the previous fiscal year). Operating loss was 504
million yen (compared with an operating loss of 1,246 million yen in the previous fiscal year).
The segment focused on the reorganization of the local system in the China business through selection and concentrationand the cultivation of demand for the long-term care business in China. In the fiscal year under review, the segment
strengthened sales promotion to acquire contracts for the operation of facilities for dementia patients and contracts for theoutside sales training business and the consulting business for the start-up of long-term care facilities in northern China.
As a result, net sales declined associated with the consolidation of business areas due to the reorganization. Operating loss
was reduced because of an improvement in operation efficiency due to the concentration of management resources.
Because local subsidiaries in China close the books in December, the coronavirus did not have an impact in the fiscal year－5－under review.
<Other Segments>
Net sales were 326 million yen (compared with 294 million yen in the previous fiscal year). Operating income was 216
million yen (compared with 228 million yen in the previous fiscal year).
Goods management of the Nichii Group and the provision of auxiliary services exerted synergy effects and supported theactivities of Group companies.
This resulted in growth in sales but a decline in profit.

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6

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2) Future outlook
As announced in the press release “Notice Regarding Implementation of Management Buyout and Recommendation to
Tender Shares” on May 8, 2020, the Company is scheduled to become a wholly owned subsidiary of K.K. BCJ-44 (hereinafter
the “Tender Offeror”) as a result of a tender offer by the Tender Offeror for common shares outstanding (hereinafter the“Company’s Shares”) and share acquisition rights of the Company (hereinafter the “Tender Offer”) and a series of subsequenttransactions, and the Company’s Shares are scheduled to be delisted. Therefore, the forecast of dividends for the fiscal year
ending March 31, 2021 is not stated.
(2) Overview of financial position
Total assets at the end of the fiscal year under review stood at 192,804 million yen, a decrease of 836 million yen from theend of the previous fiscal year. Major factors included a fall of 2,901 million yen in fixed assets due to a decrease in goodwill
and an increase of 2,064 million yen in current assets caused by a rise in notes and accounts receivable – trade.
Liabilities decreased 3,784 million yen from the end of the previous fiscal year, to 148,778 million yen. Major factors
included a decrease of 4,634 million yen in non-current liabilities mainly due to a fall in long-term loans payable and anincrease of 850 million yen in current liabilities mainly as a result of growth in short-term loans payable.
Net assets increased 2,947 million yen from the end of the previous fiscal year, to 44,025 million yen.
(3) Overview of cash flows
During the fiscal year under review, cash and cash equivalents (“cash”) decreased 311,407 thousand yen year on year, to18,386,613 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 10,439 million yen.
The main factors were depreciation and amortization and interest expenses.
[Cash flows from investing activities]
Net cash used in investing activities came to 1,907 million yen.
This was primarily the result of the purchase of property, plant and equipment and the purchase of intangible assets.
[Cash flows from financing activities]
Net cash used in financing activities amounted to 8,163 million 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, 2019Year ended March 31, 2020

Equity Ratio (%)

20.6

22.4

Equity ratio based on present value (%)

43.3

35.0

Debt redemption (years)

6.3

7.9

Interest coverage ratio (times)

2.7

2.1

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.

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7

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(4) 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.
As announced in the press release “Notice Regarding Implementation of Management Buyout and Recommendation to
Tender Shares” on May 8, 2020, the Company is scheduled to become a wholly owned subsidiary of K.K. BCJ-44 (hereinafter
the “Tender Offeror”) as a result of a tender offer by the Tender Offeror for common shares outstanding (hereinafter the“Company’s Shares”) and share acquisition rights of the Company (hereinafter the “Tender Offer”) and a series of subsequenttransactions, and the Company’s Shares are scheduled to be delisted. Therefore, the forecast of dividends for the fiscal year
ending March 31, 2021 is not stated.

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.

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8－

3. Consolidated Financial Statements and Major Notes(1) Consolidated balance sheets(in thousand yen)
Fiscal 2019
(As of March 31, 2019)
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

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9

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Fiscal 2020
(As of March 31, 2020)

18,255,916

18,520,613※３ 33,434,278※３ 35,556,326

256,310364,426
11,159175,533
13,291,468(104,166)
65,684,926

317,586
407,094
11,816
164,710
12,870,395(98,624)
67,749,919※２ 53,883,463※２ 52,628,736(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(31,590,804)
21,037,931
78,443(72,733)
5,709※２ 4,985,817(4,007,158)
978,659
8,374,092
65,035,754(13,820,990)
51,214,764
1,590,458
83,201,615

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

7,423,518
2,985,260
816,292
223,069
175,025
11,623,166

(in thousand yen)
Fiscal 2019
(As of March 31, 2019)
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

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10

－

Fiscal 2020
(As of March 31, 2020)※１ 1,057,664※１ 272,277

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

6,961,199
2,013,308
12,281,973
8,588,660※１ 338,856(226,808)
30,229,466
125,054,248
192,804,168

747,571

1,948,133※４ 2,512,273※４ 5,658,268

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

6,729,863
1,915,961
1,754,456
2,349,751
16,930,873
12,119,823
6,206,916
35,000－5,866,109
61,515,158

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

8,962,910
59,161,934
5,091,978
1,405
3,740,733
8,001,682
2,303,167
87,263,812
148,778,971

(in thousand yen)
Fiscal 2019
(As of March 31, 2019)
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

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11

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Fiscal 2020
(As of March 31, 2020)11,933,790
17,009,418
22,867,282(11,177,438)
40,633,052

11,933,790
17,233,000
24,166,161(9,734,188)
43,598,764

12,481(244,124)(414,813)(646,456)

5,900(66,354)(357,330)(417,784)

605,781
485,398
41,077,776
193,640,771

252,528
591,689
44,025,197
192,804,168

(2) Consolidated statements of income and comprehensive income(Consolidated statements of income)(in thousand yen)
Fiscal 2019(from April 1, 2018
to March 31, 2019)
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
Taxes and dues
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
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 investment securities
Gain on sales of investments in capital of subsidiaries
and associates
Gain on reversal of subscription rights to shares
Other segments
Total extraordinary income

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12

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Fiscal 2020
(from April 1, 2019
to March 31, 2020)

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

297,965,843
238,784,532
59,181,311

3,850,320
223,845
17,943,729
1,299,288
36,000588,241
172,9213,225,710
1,601,524
4,368,484
3,336,832
19,3781,757,083
1,884,316
7,269,383
47,577,061
10,032,941

3,568,707
221,625
17,416,726
1,326,319
35,000570,453
307,7103,189,586
1,567,069
4,753,992
3,277,924
48,185
1,586,564
1,695,618
7,452,992
47,018,476
12,162,835

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

137,714
184,224
46,235106,041
111,718
310,475
896,409

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

5,043,366
32,207500,043
5,575,617
7,483,626

13

43,177137,114

－

1,691
851
139,670－
498
43,675Fiscal 2019(from April 1, 2018
to March 31, 2019)
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※１ 79,139※１ 126,554※２ 1,781

149,705－－

305,191－

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

786,632－－
40,606
953,793
6,573,509
2,474,188
7,142
2,481,331
4,092,177
33,703
4,058,473

6,108,181

－

13

－

(in thousand yen)
Fiscal 2020
(from April 1, 2019
to March 31, 2020)

(Consolidated statements of comprehensive income)(in thousand yen)
Fiscal 2019(from April 1, 2018
to March 31, 2019)
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

－

14

－

Fiscal 2020
(from April 1, 2019
to March 31, 2020)

6,090,695

4,092,177(6,662)
19,901
94,378※１ 107,616
6,198,311(6,721)
176,163
57,483※１ 226,925
4,319,102

6,229,787

4,287,005(31,475)(32,097)

(3) Consolidated statements of changes in net assets
Fiscal 2018 (from April 1, 2018 to March 31, 2019)(in thousand yen)
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)

－

15

－

Fiscal 2020(from April 1, 2019 to March 31, 2020)(in thousand yen)
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

17,009,418

22,867,282

40,633,052(2,575,293)(2,575,293)

4,058,473

4,058,473

Purchase of treasury stock
Disposal of treasury stock

Balance at the end of the period(11,177,438)

12,481-

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

223,582(1,450)(1,450)1,444,700

1,668,283(184,301)(184,301)(6,581)-

223,582

1,298,878

1,443,250

2,965,711(6,581)

11,933,790

17,233,000

24,166,161(9,734,188)

43,598,764

5,900

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(244,124)(414,813)(646,456)

605,781

485,398

41,077,776(2,575,293)

Profit attributable to owners ofparent4,058,473

Purchase of treasury stock(1,450)

Disposal of treasury stock

1,668,283

Change of scope of
consolidation
Changes other thanshareholders’ equity during theperiod (net)Total changes of items during theperiod177,769

57,483

228,671(353,253)

106,291(18,290)

177,769

57,483

228,671(353,253)

106,291

2,947,420

Balance at the end of the period(66,354)(357,330)(417,784)

252,528

591,689

44,025,197(184,301)

－

16

－

(4) Consolidated statements of cash flows(in thousand yen)
Fiscal 2019(from April 1, 2018
to March 31, 2019)
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 deposits received
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

－

17

－

Fiscal 2020
(from April 1, 2019
to March 31, 2020)

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

6,573,509
6,428,430
1,695,618
282,665(1,000)(35,327)
345,667(143,636)
5,043,366(71,820)(111,718)

149,705(43,177)

79,139126,554

930

(498)

172,921

307,710(405,563)(586,464)

548,162(1,405,706)(6,540)81,598(32,700)
393,099(6,092)70,474(396,320)(271,778)

108,135
181,447(277,022)
1,706,518
2,046,838
288,720
21,169,631
50,908(1,011,949)
375,317(956,676)(2,315,665)
495,852
797,277
17,418,858
33,077

15,64022,649(4,910,437)(2,924,684)
13,401,057(5,018,515)(2,016,768)
10,439,301

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

(311,345)
311,344(313,320)(309,540)
290,500(178,078)

54,805

113,626(3,009,765)
7,767(446,380)(67,443)
39,749(2,758,908)
68(1,284,028)(7,381)780,000(113,548)-(106,624)-(260,195)
780,789(386,355)
331,928
631,801(71,288)(2,928,082)(90,359
130,496(845,574)
1,466,582
739,173
46,317(1,907,106)(2,793,511)
8,417,454(13,169,050)
61(713)(1,669,861)(11,520)(1,314,628)

3,153,767
1,920(7,483,825)
1,007,304(1,450)(2,575,293)(11,520)(2,254,592)(30,456)-

9,498(10,562,726)(8,163,688)(10,391)(40,249)(100,141)
18,267,103

328,256
18,075,206

14,571

117,826(106,327)(134,675)※１18,075,206※１18,386,613

※３

－

18

－

Fiscal 2020
(from April 1, 2019
to March 31, 2020)