Financial Results for the First Quarter of the Year Ending March 31, 2015 (J-GAAP)
August 7, 2014
Name of listed company: Nichii Gakkan Company
Listed on: Tokyo Stock Exchange 1st Section
Securities code:
9792
URL:
http://www.nichiigakkan.co.jp
Representative:
Masatoshi Saito, President and Representative Director
Contact:
Koichi Terada, Director, Manager of Accounting and Finance Division
TEL: 03-3291-2121
Scheduled date for filing the quarterly financial report: August 13, 2014
Scheduled date to start dividends distribution:—
Supplementary quarterly materials prepared:
Yes
Quarterly 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 first quarter ended June 30, 2014 (April 1, 2014 – June 30, 2014)(1) Consolidated operating results(Percentage figures represent changes from same period of previous year.)
Net Sales
Operating Income
Ordinary Income
Net Income
Million yen

Three months ended
June 30, 2014
Three months ended
June 30, 2013
(Note) Comprehensive income:%Million yen%

Million yen%

Million yen%

67,720

(0.6)

1,258

(27.1)

788(42.3)

147(85.9)

68,161

3.8

1,727

(7.3)

1,367

(18.3)

1,047

70.8

Three months ended June 30, 2014: 182 million yen (-80.0%);
Three months ended June 30, 2013: 915 million yen (86.0%)

Net Income per Share

Diluted Net Income per ShareYen

Three months ended
June 30, 2014
Three months ended
June 30, 2013

Yen

2.11

—

14.99

—

(2) Consolidated financial position
Total Assets

Net Assets
Million yen

As of June 30, 2014
As of March 31, 2014
Reference: Shareholders’ equity:

Equity Ratio
Million yen

176,457
176,246%

61,90062,32734.9
35.2

As of June 30, 2014: 61,567 million yen; As of March 31, 2014: 61,999 million yen

2. Dividends
1Q-endYen——

Year ended March 31, 2014
Year ending March 31, 2015
Year ending March 31, 2015
(forecast)

Annual dividends
3Q-end2Q-endYen

Year-end

Yen

Annual
Yen

Yen

10.00

—

10.00

20.00

10.00

—

10.00

20.00

(Note) Revisions to most recently announced dividend forecast: No

3. Forecast of consolidated financial results for the year ending March 31, 2015 (April 1, 2014 – March 31, 2015)(Percentage figures represent changes from previous year for full year figures and from same period of previous year for interim period figures.)

Net Sales

Operating Income

Million yen

First six months
Full year

138,200
278,400

%

1.6
2.6

Million yen

2,700
7,700

Ordinary Income%(16.4)
21.8(Note) Revisions to most recently announced financial results forecast: No

Million yen

1,700
5,700

Net Income
per Share

Net Income%(32.1)
15.4

Million yen

600
3,000

%

(63.9)
6.0

Yen

8.59
42.93

* Notes(1) Significant changes in subsidiaries during the term (Changes in specified subsidiaries resulting in changes in scope of
consolidation): None
(2) Application of specific accounting for preparing the quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes of accounting estimates and restatement
1) Changes in accounting policies due to revisions of accounting standards, etc.: Yes
2) Changes in accounting policies due to reasons other than those stated in 1): None
3) Changes in accounting estimates: None
4) Restatement: None
(Note) For details, please refer to page 4, (3) Changes in accounting policies, accounting estimates, and restatement of 2. Summary information (notes) of
Attached Document.

(4) Number of shares outstanding (common stock)1) Number of shares issued and outstanding (including treasury stock)
As of June 30, 2014:
73,017,952
As of March 31, 2014:
73,017,952
2) Number of treasury stock
As of June 30, 2014:
3,134,104
As of March 31, 2014:
3,133,768
3) Average number of shares issued and outstanding in each period (quarterly consolidated cumulative period)
As of June 30, 2014:
69,884,037
As of June 30, 2013:
69,886,123* Implementation status of quarterly review procedures
The quarterly review procedure based on the Financial Instruments and Exchange Act does not apply to these quarterly financial statements,
and the procedure based on the Financial Instruments and Exchange Act is in operation as of the release of these quarterly financial
statements.

* Explanation concerning the appropriate use of financial result forecasts and other special notes(Forward looking statements)
The above forecasts are based on information Nichii Gakkan had as of the time this report was prepared and on certain assumptions judged tobe reasonable. Various factors may cause actual results to differ significantly from forecasts. Please refer to the disclaimers, provided under“(3) Information on the future outlook, including consolidated financial results forecasts” of “1. Qualitative information on quarterly
financial results” on page 4 of the quarterly consolidated financial results (attached document), regarding the assumptions upon which
forecasts are based and the use of forecasts.

Nichii Gakkan Company (9792) Financial Results for the First Quarter of the Year Ending March 31, 2015

 Table of Contents for the Attached Document
1. Qualitative information on quarterly financial results ···························································································· 2(1) Details of business results ·································································································································· 2(2) Details of financial position································································································································ 4(3) Information on the future outlook, including consolidated financial results forecasts ······································· 4
2. Summary information (notes) ································································································································· 4(1) Significant changes to subsidiaries during the term ··························································································· 4(2) Application of specific accounting for preparing the quarterly consolidated financial statements ···················· 4(3) Changes in accounting policies, accounting estimates, and restatement ···························································· 4
3. Quarterly consolidated financial statements ··········································································································· 5(1) Quarterly consolidated balance sheets ················································································································ 5(2) Quarterly consolidated statements of income and comprehensive income ························································ 7
Quarterly consolidated statements of income
Three months ended June 30 ··························································································································· 7
Quarterly consolidated statements of comprehensive income
Three months ended June 30 ··························································································································· 8(3) Notes to quarterly consolidated financial statements ························································································· 9Notes on the premise of a going concern ··········································································································· 9Notes on significant fluctuation in the amount of shareholders’ equity ····························································· 9
Significant subsequent events ···························································································································· 91Nichii Gakkan Company (9792) Financial Results for the First Quarter of the Year Ending March 31, 2015

1. Qualitative information on quarterly financial results(1) Details of business results
During the first three months ended June 30, 2014, the Japanese economy remained on a modest recovery paththanks to integrated reforms based upon the “three arrows” of, bold monetary policy, flexible fiscal policy and a
growth strategy, despite signs of weaker demand following the last-minute shopping spree ahead of theconsumption tax hike in April 2014. The revision of the Japan Revitalization Strategy to put the economic
recovery on a path of sustainable growth and Basic Policies for the Economic and Fiscal Management andReform were approved by Cabinet in June 2014, and concrete policies and processes were revealed, including
lowering the effective corporate tax rate and promoting labor force participation of women, youth and theelderly to strengthen the earning power of corporations, utilizing foreign workers, improving the quality of careservices, and improving the working conditions of care providers.
Under such a business environment, the Nichii Gakkan Group focused on developing its organizational structureand strengthening its business base, and pursued business expansion through sector/category diversification andregional diversification, which are the basic strategies under its medium-term management plan, with the aim ofachieving long-term stable profit growth.
In sector/category diversification initiatives, the Group worked to expand strategic businesses including thelanguage education business, childcare business, services not covered by long-term health insurance system, andmedical management support services.
In regional diversification initiatives, the Group made headway establishing business schemes and businessmodels together with local subsidiaries, with the aim of expanding the human resources development business,
human support business (nursing care and childcare, etc.) and the business of selling sanitary products in China.
To date, the Group has achieved the conclusion of a strategic alliance agreement with China Planning Instituteon Aging, which is under the direct jurisdiction of the Ministry of Civil Affairs of the People’s Republic ofChina, and has also made steady progress with the development of a structure for early business start-up
including resolving to acquire stakes in local nursing care providers and housekeeping service providers to makethem its Group companies.
Looking at operating results, the Group posted declines in sales and profit due to a decrease in the number ofstudents as a result of improvement in the employment environment and changes in qualification systems in the
education business.
In the medical support business and the long-term care business, the operating efficiency of hospitals alreadyunder contract and the efficiency of care centers continued to improve. Also in the education business, steady
growth in the number of language education students was maintained, driven by COCO Juku Junior, andprogress was more or less as planned thanks to efforts to improve earnings through integrated business
operation reforms of the existing and language education businesses. As a result, the Group posted net sales of
67,720 million yen for the first quarter under review (compared with 68,161 million yen posted in the first quarterof the previous fiscal year), operating income of 1,258 million yen (compared with 1,727 million yen posted in thefirst quarter of the previous fiscal year), and ordinary income of 788 million yen (compared with 1,367 million
yen posted in the first quarter of the previous fiscal year). Net income was 147 million yen (compared with 1,047
million yen posted in the first quarter of the previous fiscal year).
Results by business segment are as follows:<Medical Support Business>
Both sales and profit increased due to efforts to expand business operations at hospitals already under contract and to
improve operational efficiency through the retention of human resources.
In initiatives to expand management support services, the Group responded to enhancement of the home living
support system associated with revision of medical fees in April by working to propose integrated seamless services
for home rehabilitation support of hospitalized patients through collaboration with the long-term care business.
The Group also supported medical institution management on many fronts, including providing services utilizing IT
and various seminars relating to medical management.
Net sales for the segment came to 26,412 million yen (compared with 26,314 million yen posted in the first quarter ofthe previous fiscal year). Operating income for the segment was 2,286 million yen (compared with 1,855 million yen
posted in the first quarter of the previous fiscal year).
2

Nichii Gakkan Company (9792) Financial Results for the First Quarter of the Year Ending March 31, 2015

<Long-term Care Business>
The Group worked on expanding and improving core services and providing services matching community needs
such as home care services and dementia services, opening new service centers, strengthening collaboration withmedical institutions, and improving customer satisfaction, to build a business base for integrated community care. As
a result, the number of users of each service held firm and both sales and profit increased.
Looking at the status of new operating bases established during the first three months, for its home care services, theGroup opened nine care plan facilities (bringing the total number of these facilities to 799), eight home-visit carefacilities (increasing the total number of these facilities, including home-visit bathing facilities, to 1,120), four day-carefacilities (bringing the total number of these facilities to 371), and one home nursing care facility (bringing the total
number of these facilities to 66). For its facility care services, the Group established three Nichii no Hohoemi grouphomes (bringing the total number of these homes to 265), two Nichii no Kirameki pay nursing homes (bringing the total
number of these homes to 60), and one Nichii Home pay nursing home (bringing the total number of these homes to 55).
Net sales for the segment reached 36,136 million yen (compared with 35,413 million yen posted in the first quarter ofthe previous fiscal year). Operating income for the segment was 3,239 million yen (compared with 3,149 million yen
posted in the first quarter of the previous fiscal year).
<Health Care Business>
The Group focused on enhancing services that are not covered by the long-term care insurance system, mainly its corehousekeeping service, the meal home delivery service and sales of health care products. The Group concentrated onreviewing its service menu and strengthening sales activities to gain new customers and, as a result, both sales andprofit increased on the back of steady growth, including double-digit year-on-year sales growth in housekeeping
services and health care products.
In June 2014, the Group relaunched its housekeeping service under the Nichii Life brand in response to increasingly
diverse livelihood support needs, switching from its previous elderly-focused service menu to a more extensive service
line-up catering for all generations from children to the working generation and the elderly.
Net sales for the Health Care Business segment came to 856 million yen (compared with 811 million yen posted in
the first quarter of the previous fiscal year). Operating income for the segment was 26 million yen (compared with 7
million yen posted in the first quarter of the previous fiscal year).
<Education Business>
In existing education business, decline in the number of qualification courses continued amid improvement in theemployment environment. However, the decrease in the number of students tended to be less sharp, and signs that the
decline was bottoming out became apparent. The Group is now winning contracts for employment training, etc. fromlocal governments and actively holding presentations, etc. in collaboration with the medical support business and thelong-term care business, and is striving for recovery in the number of students by strengthening the employment
support measures only the Group can offer.
In the language education business, the Group continued to efficiently roll out COCO Juku Junior and worked to
improve business efficiency through the integrated reform of existing education business and language education
business. To increase the COCO Juku business, the Group focused on rolling out COCO Juku Junior franchiseclassrooms, strengthening sales to corporations, and developing the sales route to swimming school members incollaboration with JSS Corporation.
GABA Corporation reported gains in sales and profit thanks to a high number of students.
Net sales for the Education Business segment totaled 4,171 million yen (compared with 5,465 million yen posted in
the first quarter of the previous fiscal year). Operating loss for the segment was 1,974 million yen (compared with aloss of 1,169 million yen posted in the first quarter of the previous fiscal year).
<Other Businesses>
In Other Businesses, the Group undertook activities based on the Group businesses, including the training of therapy
dogs related to the promotion of therapy dog activities (TCH) in the long-term care business, with the aim ofincreasing the added value of its core businesses. To strengthen its business base, the Group worked to improve thecorporate system and increase the operating efficiency of each Group company.
Net sales for the Other Businesses segment amounted to 144 million yen (compared with 156 million yen posted in
the first quarter of the previous fiscal year). Operating income for the segment was 102 million yen (compared with
operating loss of 9 million yen posted in the first quarter of the previous fiscal year).
3

Nichii Gakkan Company (9792) Financial Results for the First Quarter of the Year Ending March 31, 2015

(2) Details of financial position
Total assets at the end of the first quarter under review increased 210 million yen from the end of the previous
fiscal year, to 176,457 million yen. The main reasons for the increase were a 1,073 million yen fall in current
assets, mainly reflecting a decrease in cash and deposits, and a 1,283 million yen rise in fixed assets, primarily due
to an increase in lease assets.
Liabilities increased 637 million yen from the end of the previous fiscal year, to 114,556 million yen. The key
factors contributing to this increase were a 139 million yen rise in current liabilities, mainly reflecting an increasein short-term loans payable, and a 497 million yen increase in non-current liabilities, primarily attributable to anincrease in lease obligations.
Net assets dropped 426 million yen from the end of the previous fiscal year, to 61,900 million yen.
(3) Information on the future outlook, including consolidated financial results forecasts
There is no revision to the consolidated financial results forecast for the year ending March 31, 2015, which was
released on May 14, 2014, as business results for the first three months were almost in line with the Group plan.
However, the impact of the launch of business in China is currently being carefully examined and is not yet known.
Should the need for a revision of its operating results forecasts for the period arise, the Company will promptly
announce new forecasts.

2. Summary information (notes)(1) Significant changes to subsidiaries during the term
No related information.

(2) Application of specific accounting for preparing the quarterly consolidated financial statements
No related information.

(3) Changes in accounting policies, accounting estimates, and restatement
Changes in accounting policies

Application of the accounting standard for retirement benefits
The Company has applied the “Accounting Standard for Retirement Benefits” (Accounting Standards Board ofJapan (ASBJ) Statement No. 26, May 17, 2012; hereinafter “Accounting Standard for Retirement Benefits”) andthe “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25, May 17, 2012;
hereinafter “Guidance on Accounting Standard for Retirement Benefits”) from the first quarter of the current
fiscal year, for provisions set forth in the main clauses of Paragraph 35 of the Accounting Standard for
Retirement Benefits and Paragraph 67 of the Guidance on Accounting Standard for Retirement Benefits.
Accordingly, the Company reviewed the methods for calculating retirement benefit obligations and service costs,
and revised the method of attributing estimated retirement benefit obligations to periods from the straight-line
basis to the benefit formula basis, and revised the method of determining the discount rate from the method
using the remaining service period of employees to the method using a single weighted average discount rate.
The application of this accounting standard, etc. is in accordance with the transitional accounting treatments set
forth in Paragraph 37 of the Accounting Standard for Retirement Benefits, and thus the adjustments associatedwith the change in calculation methods of retirement benefit obligations and service costs are recorded inretained earnings at the beginning of the first quarter of the current fiscal year.
The result was a decrease of 118 million yen in net defined benefit liability, and an increase of 96 million yen inretained earnings at the beginning of the first quarter of the current fiscal year. The effect of this change on
operating income, ordinary income and income before income taxes and minority interests for the first quarterof the current fiscal year is insignificant.

4

Nichii Gakkan Company (9792) Financial Results for the First Quarter of the Year Ending March 31, 2015

3. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets
Fiscal 2014
(As of March 31, 2014)
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
Deferred tax assets
Other
Less: allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures—net
Lease assets—net
Other—net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Other
Less: Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets

5(Thousand yen)
Q1 of Fiscal 2015
(As of June 30, 2014)

9,595,734
32,203,271
3,501,938
623,388
15,111
310,2102,888,713
9,258,717(31,299)
58,365,785

7,495,174
33,080,939
3,601,235
644,871
49,124291,2562,558,660
9,602,297(30,897)
57,292,661

29,053,777
27,884,574
9,834,290
66,772,643

28,754,969
29,594,367
9,562,503
67,911,840

18,446,825
3,814,661
22,261,486

17,986,967
3,601,628
21,588,595

29,253,196(406,643)
28,846,552
117,880,682
176,246,468

30,071,685(407,673)
29,664,012
119,164,448
176,457,110

Nichii Gakkan Company (9792) Financial Results for the First Quarter of the Year Ending March 31, 2015

Fiscal 2014
(As of March 31, 2014)
Liabilities
Current liabilities
Notes and accounts payable—trade
Short-term loans payable
Income taxes payable
Accrued expenses
Provision for bonuses
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Provision for directors’ retirement benefits
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
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-salesecurities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

6(Thousand yen)
Q1 of Fiscal 2015
(As of June 30, 2014)

861,540
4,014,826
1,674,761
15,669,460
5,092,365
39,70028,377,442
55,730,097

780,608
7,201,199
406,591
16,464,037
2,695,921
24,85028,296,317
55,869,526

17,316,153
28,683,159
167,784
5,786,553
1,774,879
4,460,592
58,189,123
113,919,220

15,948,431
30,564,254
160,391
5,739,757
1,776,558
4,497,704
58,687,099
114,556,626

11,933,790
17,354,214
38,335,223(5,374,688)
62,248,540

11,933,790
17,354,214
37,880,524(5,374,996)
61,793,533

25,037

26,57258,966(332,870)(248,866)
327,574
62,327,248
176,246,468

59,104(312,169)(226,492)
333,442
61,900,484
176,457,110

Nichii Gakkan Company (9792) Financial Results for the First Quarter of the Year Ending March 31, 2015(2) Quarterly consolidated statements of income and comprehensive income(Quarterly consolidated statements of income)(Three months ended June 30)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Rent income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rent expenses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of property, plant and equipment,
net
Loss on sales of property, plant and equipment, net
Loss on valuation of investment securities
Provision of allowance for doubtful accounts
Impairment loss
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes—current
Income taxes—deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income

7

Fiscal 2014
(from April 1, 2013
to June 30, 2013)
68,161,094
53,489,243
14,671,850
12,944,782
1,727,068(Thousand yen)
Fiscal 2015
(from April 1, 2014
to June 30, 2014)
67,720,931
54,019,060
13,701,870
12,443,314
1,258,556

34,92745,69850,54874,484
205,658

41,03951,57061,46456,322
210,397

483,980
13,651645,749
15,865—

11,30567,943565,575
1,367,151

7,452
680,373788,5811,030,370
850
1,031,220———

26,187

5,615—
49,99925,000——101,186
2,297,185
307,337
930,034
1,237,372
1,059,813
12,361
1,047,451

520——
13,042
3,215
22,395766,185
328,834
276,743605,577
160,608
13,368147,239

Nichii Gakkan Company (9792) Financial Results for the First Quarter of the Year Ending March 31, 2015

(Quarterly consolidated statements of comprehensive income)(Three months ended June 30)
Fiscal 2014
(from April 1, 2013
to June 30, 2013)
1,059,813(Thousand yen)
Fiscal 2015
(from April 1, 2014
to June 30, 2014)
160,608

Valuation difference on available-for-sale securities(124,506)

1,534

Foreign currency translation adjustments(19,871)

137—

20,701(144,377)

22,374915,435

182,982

Owners of the parent

903,073

169,613

Minority interests

12,361

13,368

Income before minority interests
Other comprehensive income

Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:8Nichii Gakkan Company (9792) Financial Results for the First Quarter of the Year Ending March 31, 2015

(3) Notes to quarterly consolidated financial statements(Notes on the premise of a going concern)
No related information.
(Notes on significant fluctuations in the amount of shareholders’ equity)
No related information.
(Significant subsequent events)

Establishment of joint venture in China
The Group concluded a strategic alliance agreement with China Planning Institute on Aging on July 1, 2014,
and made headway with the establishment of business schemes and models with a view to expanding businessthroughout China, and it recently agreed to establish a joint venture with Beijing Loved Hongyu Technology
Co., Ltd., which was established in accordance with this alliance agreement, and concluded a joint ventureagreement on July 1, 2014.
1. Purpose
The joint enterprise, together with the Group’s Chinese subsidiary and local nursing care providers andhousekeeping service providers in which said subsidiary plans to acquire equity stakes to make them theGroup’s second-tier subsidiaries by the end of September, will form the Zhihu Group, and will contribute to
the spread of standardized, specialized, high quality and efficient nursing care and the formation of a soundnursing care market.
2. Outline of the joint venture(1) Name:
Zhihu Service Management Co., Ltd. (tentative)(2) Location:
Chaoyang District, Beijing(3) Business content:
Human resource training
Operation of welfare facilities such as care facilities, etc.
Wholesale of sanitary products
Corporate management consulting, etc.
(4) Capital:
50,000,000 CNY(5) Incorporation date:August 2014 (provisional)(6) Investment ratio:
Beijing Loved Hongyu Technology Co., Ltd. 51% (investment amount
25,500,000 CNY)
Nichii Gakkan Co. 49%(investment amount 24,500,000 CNY)
Equity stake acquisitions by subsidiary
At a board meeting held on July 7, 2014, the Company’s wholly owned subsidiary Nichii Hong Kong Limited(hereinafter “Nichii Hong Kong”) adopted a resolution to acquire equity stakes in 10 private Chinese
corporations and make them into its subsidiaries (second-tier subsidiaries of the Nichii Gakkan Group).
1. Purpose
On July 1, 2014, the Company made a big step toward expanding its business throughout China byconcluding a strategic alliance agreement with the China Planning Institute on Aging, which is under the
direct jurisdiction of the Ministry of Civil Affairs of the People’s Republic of China.
Nichii Hong Kong’s acquisition of equity stakes in 10 local corporations is the next step in the Group’s
China strategy, and through this, the Group aims to acquire a business base, including human resources,
customers and knowhow, in relation to elderly care services and housekeeping services in the six cities of
Beijing, Chongqing, Shenyang, Shenzhen, Jiangmen and Meizhou.
The Group including these 10 companies and a joint venture (Zhihu Service Management Co., Ltd.)(tentative) to be newly established with the cooperation of the China Planning Institute of Aging will form
the Zhihu Group (Zhihu means “best care” in Chinese), and will work to spread and disseminate a new
standard of nursing care in China.
Through the combination of the community-based business foundations of these 10 companies, the Group’s
vast human resource training and care service knowhow, and the China Planning Institute of Aging’s
influence over infrastructure development, the Group will provide high quality care services, including
human resource training business, elderly care business, maternity care business, babysitting services and the9Nichii Gakkan Company (9792) Financial Results for the First Quarter of the Year Ending March 31, 2015

sales of sanitary products, in the abovementioned six cities.
2. Parties from which equity stakes will be acquired
Equity stakeholders (managers, etc.) of said companies
3. Outline of acquiring subsidiary(i) Name
Nichii Hong Kong Limited(ii) Location
Central, Hong Kong(iii) Business content
Supervision of China business affiliates, consulting, etc.
(iv) Capital
25,000,000 HKD (wholly owned by Nichii Gakkan Company)
4. Outline of acquired companies(1) (i) Name
Trinity Human Resource Co., LTD.
(ii) Location
Chaoyang District, Beijing(iii)Business content
Corporate management consulting, labor dispatch, cleaning
service, etc.
(iv) Capital
2,000,000 CNY(v) Equity stake acquisition date
Undecided(vi) Acquisition value*(vii) Ownership ratio after acquisition
66.7%(2) (i) Name(ii) Location(iii) Business content(iv) Capital(v) Equity stake acquisition date(vi) Acquisition value(vii) Ownership ratio after acquisition

Chonqing Kaier Elderlycare Management Company Ltd
Jiangbei District, Chongqing City
Senior housing management and related information
management consulting, etc.
1,000,000 CNY
Undecided*
51.0%(3) (i) Name(ii) Location(iii) Business content(iv) Capital(v) Equity stake acquisition date(vi) Acquisition value(vii) Ownership ratio after acquisition

Shenyang Zhuer Housekeeping Service Co., Ltd.
Shenyang City, Liaoning Province
Housekeeping service, cleaning service, etc.
100,000 CNY
Undecided*
51.0%(4) (i) Name(ii) Location

In The Home Group (7 companies)
Shenzhen City, Guangdong Province, Jiangmen City,
Guangdon Province, Meizhou City, Guangdong Province
Housekeeping service, cleaning service, etc.
5,300,000 CNY in total
Undecided*
50.8%(iii) Business content(iv) Capital(v) Equity stake acquisition date(vi) Acquisition value(vii) Ownership ratio after acquisition*

Acquisition value is estimated at 59,295,000 CNY in total.

10