Financial Results for the Year Ended March 31, 2015 (J-GAAP)May 14, 2015
Name of listed company: Nichii Gakkan Company
Listed on: Tokyo Stock Exchange 1st Section
Securities code:
9792
URL:
http://www.nichiigakkan.co.jp
Representative:
Akihiko Terada, Chairman, President and CEO
Contact:
Koichi Terada, Director, Manager of Accounting and Finance Division
TEL: 03-3291-2121
Scheduled date to hold the ordinary general meeting of shareholders: June 25, 2015
Scheduled date to start dividends distribution:
June 26, 2015
Scheduled date of filing annual securities report:
June 26, 2015
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, 2015(April 1, 2014 – March 31, 2015)(1) Consolidated operating results(Percentage figures represent changes from the previous year.)
Net Sales
Operating Income
Ordinary Income
Net Income
Million yen

Year ended March 31, 2015
Year ended March 31, 2014%

271,868
271,447

Million yen

0.2
1.6

%

5,173
6,322

Million yen(18.2)(27.7)

%

3,144
4,940

Million yen(36.3)(40.7)

%

416
2,831

(85.3)(35.4)(Note) Comprehensive income: Year ended March 31, 2015: 264 million yen(-90.3%) Year ended March 31, 2014: 2,726 million yen(-41.7%)

Net Income
per Share

Diluted Net
Ordinary Income Operating Income
Return on Equity
Income per Shareto Total Assets
to Net Sales
Yen

Year ended March 31, 2015
Year ended March 31, 2014

Yen

%

—
—

6.03
40.51

%

0.7
4.6

%

1.7
2.9

1.9
2.3

Reference: Equity-method investment profit (loss): Year ended March 31, 2015: ¥10 million yen Year ended March 31, 2014: ¥― million yen(2) Consolidated financial position
Total Assets

Net Assets

Million yen

As of March 31, 2015
As of March 31, 2014
Reference: Shareholders’ equity:

Equity Ratio

Net Assets per Share

Million yen

184,554
176,246%

56,68562,327

Yen

30.5
35.2

860.09887.18

As of March 31, 2015: ¥56,333 million yen As of March 31, 2014: ¥61,999 million yen(3) Consolidated cash flows
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Million yen

Year ended March 31, 2015
Year ended March 31, 2014

Cash Flows from
Financing Activities

Million yen

10,6297,520

Cash and Cash
Equivalents at
End of Year

Million yen(8,085)(4,110)Million yen(3,198)(1,026)

9,821
10,4392. Dividends
Annual dividends
1Q-endYen

Year ended March 31, 2014
Year ended March 31, 2015
Year ending March 31, 2016
(forecast)

2Q-end3Q-endYen

Year-end

Yen

AnnualYen

Total
Dividends
Paid (annual)

Payout Ratio(consolidated)

Dividends to
Net Assets(consolidated)

Million yen

%

%

1,397
1,353

49.4
331.7

2.3
2.3

Yen

—
—

10.00
10.00

—
—

10.00
10.00

20.00
20.00

—

11.00

—

11.00

22.00

54.4

3. Forecast of consolidated financial results for the year ending March 31, 2016 (April 1, 2015 – March 31, 2016)(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

137,700
294,300

%

1.2
8.3

Million yen

2,690
8,900

Profit attributable toowners of parent

Ordinary Income
%

(1.1)
72.0

Million yen

1,290
6,100

%

(27.4)
94.0

Million yen

320
2,600

Net Income
per Share%(46.1)
524.9

Yen

4.96
40.41

* 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.: Yes
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)
Year ended March 31, 2015: 73,017,952
Year ended March 31, 2014:
2) Number of treasury stockYear ended March 31, 2015:
7,521,206
Year ended March 31, 2014:
3) Average number of shares issued and outstanding in each period
Year ended March 31, 2015: 69,011,405
Year ended March 31, 2014:

73,017,952
3,133,768
69,885,348(Reference) Overview of the non-consolidated business results
1. Non-consolidated financial results for the year ended March 31, 2015 (April 1, 2014 – March 31, 2015)(1) Non-consolidated operating results(Percentage figures represent changes from previous year.)
Net Sales
Operating Income
Ordinary Income
Net Income
Million yen

Year ended March 31, 2015
Year ended March 31, 2014%

238,835
238,3420.2
0.9

Net Income
per Share

Million yen

%

2,705
3,485

(22.4)(47.6)

Yen

Million yen

272
1,471

%

(81.5)(56.9)Yen——(2) Non-consolidated financial position
Total Assets

Net Assets

Million yen

As of March 31, 2015
As of March 31, 2014%(41.8)(56.5)

Diluted Net Income
per Share

3.94
21.06

Year ended March 31, 2015
Year ended March 31, 2014

Million yen

1,699
2,918

Equity Ratio

Million yen

153,910150,186

Net Assets per Share%

57,486
63,124

Yen

37.4
42.0

877.70903.28Reference: Shareholders’ equity: As of March 31, 2015: 57,486 million yen As of March 31, 2014: 63,124 million yen

2. Forecast of non-consolidated financial results for the year ending March 31, 2015 (April 1, 2015– March 31, 2016)(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

120,900
243,700

%

1.1
2.0

Million yen

1,900
3,500

Ordinary Income
%

23.5
29.4

Million yen

1,500
2,300

%

16.6
35.4

Net Income
per Share

Net Income
Million yen

970
1,100

%

33.8
304.4

Yen

15.05
17.10

* Implementation status of audit procedures
The audit procedure based on the Financial Instruments and Exchange Act does not apply to this Financial Report, and the audit procedure forthe consolidated financial statements and the non-consolidated financial statements based on the Financial Instruments and Exchange Act has
not been completed as of the release of this Financial Report.
* 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 tobe reasonable. Various factors may cause actual results to differ significantly from forecasts. Please refer to the disclaimers, provided
under“(1) Analysis of business results” of “1.Analysis of business results and financial position” on page 2 of the attached document,
regarding the assumptions upon which forecasts are based and the use of forecasts.

 Table of Contents for the Attached Document
1. Analysis of business results and financial position ········································································ 2(1) Analysis of business results ······························································································· 2(2) Analysis of financial position ····························································································· 5(3) Basic principles of profit distribution and dividends for the fiscal year under review and next fiscal years···· 7(4) Business and other risks ··································································································· 7
2. Overview of Nichii Group ··································································································· 10
3. Management principles ······································································································ 13(1) Basic philosophy··········································································································· 13(2) Management goals ········································································································· 13(3) Mid- to long-term strategies and issued to be addressed ····························································· 13(4) Other significant matters for management ············································································· 13
4. Basic Approach to Selection of Accounting Standards ··································································· 14
5. Consolidated financial statements ·························································································· 15(1) Consolidated balance sheets ······························································································ 15(2) Consolidated statements of income and comprehensive income ···················································· 17(3) Consolidated statements of changes in net assets ····································································· 20(4) Consolidated statements of cash flows·················································································· 22

11. Analysis of business results and financial position(1) Analysis of business results1) Overview of business results
During the fiscal year under review, the Japanese economy traced a modest recovery path, with the ratio of active job
openings to applicants remaining higher than 1 throughout the fiscal year, its highest level in 22 years, largely due toimprovement in corporate earnings, despite weak consumer spending in certain areas.
In the social-security sector, the inpatient discharge rate was adopted as a performance indicator as part of therevision of medical fees implemented in April 2014, and the Amendatory Law to the Related Acts for Securing
Comprehensive Medical and Long-Term Care in the Community, introduced in June, sought to promote
community-based integrated care, including the establishment of a new funding program for cooperation between the
medical and long-term care fields funded by consumption tax increases. In January 2015, revision of the long-termcare rate for next fiscal year was approved by Cabinet, and while basic rates will be substantially lowered, efforts will
be made to further improve the treatment of care workers, to strengthen measures for elderly people with mild tomoderate dementia, and to evaluate and ease the staffing situation.
In this business environment, the Nichii Gakkan Group pushed ahead with a new business strategy focused on
business expansion and promotion of globalization under a new business execution system, to make sure that theGroup would be unaffected by institutional risk and achieve stable growth of long-term profits.
In terms of business expansion, the Group sought to further develop services, including supporting cooperation
between the medical and long-term care fields and improving dementia care, with an eye on developments in the
medical and long-term care insurance system. The Group also endeavored to expand and improve its service menu,
including housekeeping services that are no dependent on the system and sales of sanitary products. The Group also
focused on building up a base for future growth, strengthening the development of COCO Juku Junior, and actively
opening childcare centers to support women’s participation in society.
In terms of promotion of globalization, in the growing China market, the Group formed partnerships in both the
public and private sectors, forming a strategic alliance with the China Planning Institute on Aging, an organization
under the direct jurisdiction of the Chinese Government, and also turning excellent housekeeping businesses andexcellent vocation training schools in China into Group companies, to facilitate the rollout of service suited toChinese culture and customs. The Group also made a start on the development of instructors required in the humanresources development business, and attempted to advance to the service provision stage in its China business.
Looking at the operating results, the number of students in care worker basic training fell due to decline in demandfor qualifications as a result of improvement in the employment environment, and the number of users of careservices dropped due to a shortage of human resources in the long-term care field especially in urban areas.
The Group incurred upfront investment costs associated with proactive the establishment of pay nursing homes forthe elderly at Nichii Carepalace Company, a consolidated subsidiary.
Meanwhile, turning to strategic businesses such as COCO Juku Junior, housekeeping services, and childcare services,
the number of users rose steadily, giving a definite sense of growth.
The Group posted net sales of 271,868 million yen in the fiscal year under review (271,447 million yen in theprevious fiscal year), operating income of 5,173 million yen (6,322 million yen), and ordinary income of 3,144
million yen (4,940 million yen). Net income was 416 million yen (2,831 million yen).
Results by business segment are as follows:<Medical Support Segment>
The business posted gains in sales and profits, reflecting expansion in contracted services in existing hospitals as wellas improvement in operational efficiency due to efforts to strengthen the human resources base by supporting staff’s
career development and improving their working conditions. The early stabilization of operations at some large-scale
hospitals initiated in the second half also contributed to revenues.
With respect to the development of management support services, the Group focused on services to comprehensively
support management of medical services, including the hosting of seminars for medical workers and enhancement ofmanagement analysis and improvement proposal services.
Net sales for the segment came to 106,488 million yen for the fiscal year under review (compared with 105,972
million yen posted the previous fiscal year). Operating income for the segment was 9,134 million yen (compared with2

8,660 million yen posted the previous fiscal year).
<Long-term Care Segment>
As a shortage of human resources emerged in urban areas, the Group conducted a review of its customer acquisition
strategy, with an eye on trends for increased efficiency of the medical and long-term care insurance system and therevision of the long-term care rate in April 2015. The Group also focused on the enhancement of specialist careincluding dementia care and home-visit care, and the efficient rollout of welfare services for persons with disabilities
and housekeeping services at home-visit care facilities (Health Care Segment).
Nichii Carepalace Company actively participated in tenders, resulting in the establishment of two Nichii Home
paying nursing homes in the fiscal year under review and decisions to establish seven homes next fiscal year. With
delays in the commencement of operations at the newly opened homes, the Group incurred upfront costs relating to
the first quarter of the next fiscal year.
Looking at the status of new operating bases established during the fiscal year under review, for its home careservices, the Group opened twelve care plan facilities (bringing the total number of these facilities to 802),ten
home-visit care facilities (increasing the total number of these facilities, including home-visit bathing facilities, to1,122),eleven day-care facilities (bringing the total number of these facilities to 378), three home nursing care facility(bringing the total number of these facilities to 68), and one combined service facility (bringing the total number ofthese facilities to 1).For its facility care services, the Group established eight Nichii no Hohoemi group homes(bringing the total number of these homes to 270), five Nichii no Kirameki pay nursing homes (bringing the total
number of these homes to 63), and two Nichii Home pay nursing homes (bringing the total number of these homes to
56).
Net sales for the segment reached 144,385 million yen (compared with 142,856 million yen posted the previous fiscal
year). Operating income for the segment was 11,647 million yen (compared with 12,549 million yen posted theprevious fiscal year).
<Health Care Segment>
The Group worked to enhance comprehensive livelihood support services for all generations, focusing on
housekeeping services, healthcare product sales and catering. As a result, the business remained strong and posted
gains in sales and profits, with net sales from Nichii Life and sales of healthcare products continuing to show
double-digit growth.
As a result, sales in this segment came to 3,846 million yen in the fiscal year under review (compared with 3,682
million yen in the previous fiscal year), and operating income was 239 million yen (221 million yen).
<Education Segment>
The business posted disappointing results, recording declines in sales and profits as the number of students taking
training for new care workers continued to decrease due to a decline in the need to gain qualifications against the
backdrop of improvement in the employment environment. However, the number of students taking courses for
medical office work began to trend upward through the second half, and the slump showed signs of bottoming out.
The Group developed human resources who can be immediately effective workers by providing a practicalcurriculum. It also sought to match human resources with employment by proactively organizing job consultations
and onsite tours in collaboration with the relevant businesses.
In the language education business, the Group focused on gaining students, expanding the language education
network by franchising COCO Juku Junior and developing the overseas study support structure, strengthening
corporate sales, and developing more customer-oriented services. As a result, the number of students showed steady
growth driven by COCO Juku Junior. The Group also endeavored to improve profitability by making unified business
operation reforms across the existing education business and language business, including classroom integration and areview of promotion strategy.
Net sales for the segment in the fiscal year under review totalled 16,750 million yen (compared with 18,512 million
yen in the previous fiscal year). Operating loss for the segment was 7,990 million yen (compared with an operating
loss of 7,269 million yen in the previous fiscal year).
<Other>
The Group focused its efforts on the development of peripheral businesses and services to support smooth business3

operations in mainstay businesses and enhance added value, such as the publication and sales of books related to
medical services or long-term care, goods management, and the breeding of therapy dogs.
Net sales for the segment amounted to 397 million yen in the fiscal year under review (compared with 423 million
yen posted in the previous fiscal year). Operating income for the segment was 347 million yen (compared with 45
million yen posted in the previous fiscal year).
2) Outlook for the year ending March 31, 2016
In the fiscal year ending March 31, 2016, the Group will put its mainstay business back on the growth path byidentifying employment needs and increasing its ability to supply human resources through the reform of its
education business, in accordance with the medium-term management strategy. The Group will actively develop
small-scale childcare and childcare within corporations in light of government policy trends and social needs
including support for women’s participation in society and further globalization. The Group will also work to expand
and improve housework and child rearing support for working women and services not covered by long-term careinsurance for the elderly.
In the language education business, the Group will promote franchising of COCO Juku Junior and overseas study
support and will also endeavor to improve the efficiency of business and classroom operations with the aim ofmoving the language education business into profitability quickly.
In the China business, the Group will make capital contributions to local businesses offering housekeeping and otherservices in China, and will gradually launch various services including human resources development business,long-term care, housekeeping, postnatal care, and sales of goods.
The businesses the Group will include in the scope of consolidation through capital contributions all have their fiscal
year end on December 31 and, at the present time, the Company has decided to make 14 local businesses into Group
companies. However, the process from applying for an operating license in each region to making a capital
contribution takes a certain amount of time and these businesses are not expected to make a full-fledged contribution
to consolidated operating results before the second half of the fiscal year as the services gradually start from July.
In the fiscal year ending March 31, 2016, the Group forecasts net sales of 294,300 million yen (compared with
271,868 million yen in the fiscal year under review), operating income of 8,900 million yen (5,173 million yen),ordinary income of 6,100 million yen (3,144 million yen), and profit attributable to owners of parent of 2,600 million
yen (416 million yen).
In the China business, the Group forecasts net sales of 16,200 million yen and operating income of 1,400 million yen,based on an exchange rate assumption of 18 Japanese Yen per Chinese Yuan Renminbi.
The Group forecasts growth in sales and profits in all segments. Details are as follows.

4

[Segment forecasts]
Medical Support Segment

Long-Term Care Segment

Health Care Segment

Education Segment

Childcare Segment

The Group is winning big new contracts and will win contracts with private hospitals andclinics during the fiscal year ending March 31, 2016. It will also strive to further increase
the efficiency of operations. In China, the Group will actively develop postnatal careservices, which are increasingly in demand due to cultural factors and relaxation of the
one-child policy, and will translate this into growth in sales and profits.
Although basic rate for services will be lowered as part of revision of the long-term carerate, the Group will seek to expand the volume of services supplied and gain premiums byidentifying employment needs and developing its human resources base through changes
in the organizational structure for human resources development.
In China, the Group will seek to familiarize the Chinese people with the Japanese style ofnursing care through the rollout of nursing care services using the Company’s nursing
care expertise, and will translate this into growth in sales and profits.
The Group will seek further business expansion through improvement of its customer
support capability in areas such as housekeeping services and healthcare products.
In China, the Group will achieve growth in sales and profits by improving customer
satisfaction and gaining more users of its services through the active development ofhousekeeping services and the sale of high quality sanitary products.
The Group will seek to increase the number of COCO Juku Junior students bystrengthening franchising and further developing the overseas study support structure. The
Group will also reduce the labor costs and other operating costs of classrooms throughefficient classroom deployment, and translate this into growth in sales and profits(narrowing of the operating loss).
The Group is actively developing facilities to coincide with enforcement of the Support
System for Children and Child Rearing, and opened a further 20 child care centers in
April, The Group will aim for the early commencement of operations at the newly opened
facilities in collaboration with the other businesses.
In China, the Group will achieve growth in sales and profits though active development ofbabysitting services linked to post-natal care and sales of high-quality care goods forchildren.

[Segment changes]
From the viewpoint of organizational changes and management approach, qualification-type courses such as courses for
medical office work and training for new care workers in the Education Segment will now be incorporated into theMedical Support Segment and the Long-Term Care Segment respectively (the Education Segment will consist oflanguage education courses and hobby/general education courses).
With respect to the childcare business, the operation of in-hospital childcare centers were previously included in the
Medical Support Segment and other childcare services were recorded in the Long-Term Care Segment. However, in lightof its expanding size and importance, the childcare business will now be reported as a separate segment called theChildcare Segment.
Control of the operations of Nichii Green Farm Company (production and sale of flowers, plants, seeds, seedlings, etc.,
operation and management of sightseeing facilities, breeding and sales of pet dogs, etc.) will be transferred from the
Other Segment to the Health Care Segment.

(2) Analysis of financial position
1) Overview of financial position
During the fiscal year under review, cash and cash equivalents (“cash”) decreased 618 million yen year on year, to
9,821 million 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 10,629 million yen. The main factors were income before income5taxes and minority interests and depreciation and amortization.
[Cash flows from investing activities]
Net cash used in investing activities came to 8,085 million yen. This was primarily the result of the purchase ofproperty, plant and equipment and lending.
[Cash flows from financing activities]
Net cash used in financing activities was 3,198 million yen. This was chiefly due to the purchase of treasury stock.
Trends in cash flow indicators for the Group can be seen below.
Year ended March 31, 2014
Year ended March 31, 2015
Equity ratio (%)
35.2
30.5
Equity ratio based on present value (%)
38.0
37.5
Debt redemption (years)
8.1
6.8
Interest coverage ratio (times)
3.6
3.9
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 ofoutstanding 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 ofcash 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.

6(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, 2015, we are planning to pay a year-end dividend of 10 yen per share.
(Yen)
Cash Dividends per Share
(Record date)2Q-endYear-end
AnnualYear ended March 31, 2015
10.00 (Actual)
10.00 (Forecast)
20.00 (Forecast)Year ending March 31, 2016
11.00 (Forecast)
11.00 (Forecast)
22.00 (Forecast)(4) Business and other risks
Potential risks to the operations of each segment of the Nichii Group are described below.
The Group strives to mitigate these risks by enhancing its business portfolio, focusing on developing and providing
high value-added services that are not dependent on the medical insurance and long-term care insurance systems.
However, under unexpected circumstances, these risks could have serious implications for the Group’s businessperformance and financial position.
The Company identified the following risks at the end of the fiscal year under review, but risks associated withinvestments in shares in the Company are not limited to those described below.
1) Business risks
As social security benefit payments are increasing with the aging population, the government is promoting integrated
tax and social security reform to build a sustainable social security system. Since the Company’s core segments areclosely associated with the medical insurance system and the long-term care insurance system, the reform plan could
affect the Company’s performance.
A consumption tax increase is due in 2017. Medical service fees and compensation for long-term care, which aresources of revenue of medical institutions and long-term care businesses, are exempt from consumption tax, but
consumption tax does apply to investments in and purchases of healthcare equipment. The consumption tax hikecould therefore have adverse effects on the Group’s performance.
[Medical Support Segment]
The Nichii Group’s Medical Support segment provides, among other services, medical services other than medical
practice by medical institutions, medical-related services, and medical practice management consulting.
Medical institutions will see major fluctuations in revenues due to biennial revisions of the medical service fees andmedical insurance system reform.
The Group provides services to medical institutions, and the integrated tax and social security reform, percentagechanges in medical service fees, or advances in information technology could affect the Group’s contracts, including
contract fees.
[Long-term Care and Health Care Segments]
The Nichii Group’s Long-Term Care segment principally provides services regulated under the Long-Term Care
Insurance Law and other relevant laws. Income from these services could be impacted by the revisions to thelong-term care insurance system made every five years or by the revisions to compensation for long-term care madeevery three years. The Company strives to diversify risks by providing services in the Health Care Segment that are
not covered by long-term care insurance and by expanding its service offerings. Nevertheless, these efforts may not
be sufficient to offset a decrease in income that could be caused by a reduction in compensation for long-term careand other factors, which could have a significant adverse effect on earnings.
The long-term care facilities (including group homes, pay nursing homes, and day-care facilities) operated by theGroup offer community-based services under lease agreements. The term of most of these lease agreements is 20
years, and declines in occupancy rates caused by decreases in resident numbers and falls in market rates for residents
could have adverse effects on earnings in the Long-Term Care segment.

7

[Education Segment]
The Company’s medical and social welfare courses, including the Medical Office Administration course andbeginning staff’s training, are qualification courses for enhancing career opportunities, and enrolments change
significantly in response to changes in the employment situation, which in turn could affect the Group’s results.
Of the course fees paid at the time of application for the above existing courses and the English conversation schools
COCO Juku, COCO Juku Junior, and GABA, the amount equivalent to lessons not yet provided is included in theliability section of the balance sheet as “Advances received.” If a large number of students cancel their classes
within a short period of time, a substantial amount of the advances received must be reimbursed, which may affect thefinancial position and financial results of the Company.
2) Risks due to the internal management system
The Nichii Group is working to strengthen its self-enforcing operational control structure and internal check functions
to prevent human error and fraudulent activities. However, problems in operational control could cause a loss of
stakeholder trust and could affect the Group’s performance.
[Risks due to personal information]
The Nichii Group handles personal information specified in the Act on the Protection of Personal Information. The
Group recognizes the protection of personal information as an extremely important business issue and has establishedthe Personal Information Protection Committee to ensure the appropriate acquisition and handling of information. In
addition, the Group takes preventive steps to block leaks of personal information, including the establishment ofregulations and in-house education and training.
However, personal information leaks could cause a loss of confidence in society and claims for compensation, among
other things, which in turn could affect the Group’s results3) Official license and legal regulation in personnel business
To provide worker dispatching services in the Medical Support segment and Health Care segment, the Group has
already obtained a license for the general worker dispatching business under the Act for Securing the Proper
Operation of Worker Dispatching Undertakings and Improved Working Conditions for Dispatched Workers (Worker
Dispatching Law). Under the Worker Dispatching Law, if a business engaged in a worker dispatching businessmeets any of the conditions for disqualification or commits illegal acts, its license could be canceled, or it could beordered to suspend its business.
The Nichii Group strives to enhance compliance, but if the Group violates laws and regulations, its performance
could be adversely affected.
4) Risk related to changes in the employment environment
The Nichii Group has its own unique talent acquisition scheme for securing human resources based on a businessmodel dubbed “From Education to Employment.” However, with decline in the working population forecast, any
shortage of human resources arising from changes in the employment environment could affect adversely affect theGroup’s service provision.
5) Risks due to natural disasters and accidents
The Nichii Group provides services at medical institutions with which the Group has contractual relations, long-termcare facilities, schools, and other facilities across the country. If natural disasters, including earthquakes andtsunamis, occur, or if infectious diseases, including new types of influenza, spread, the Group’s staff and facilities
could not work in the affected areas. In that case, the Group will strive to maintain its system for providing services
by endeavoring to promptly restore the functions of the affected facilities and dispatching support staff. However, if
the Group cannot provide services, its results and financial position could be adversely affected. Considering theeffects of the Great East Japan Earthquake on March 11, 2011, each branch and facility of the Group is reviewing allits countermeasures against risks related to business continuity in emergencies and is seeking to strengthen its crisis
management system, putting priority on the safety of customers.

86) Risks related to the application of impairment accounting
The Nichii Gakkan Group may need to realize an impairment loss on land and buildings owned, goodwill and/or
other assets if the profitability of each business declines significantly, which may affect the financial position andfinancial results of the Group.
If IFRS is adopted, goodwill will become a non-amortizable asset. If in an impairment test, which will be conducted
at least once a year, the recoverable value proves to be lower than the book value, an impairment loss could be posted.
7) Risks due to overseas expansion
The Nichii Group is implementing a globalization strategy focused on China business, and is developing business not
only in China but also in Singapore, Australia, Canada and the Philippines. The Group endeavors to implement
measures to reduce the risks associated with business expansion overseas and to deal with them appropriately, but theGroup’s business progress and operating results may be affected in the event of a change that could not be predicted
or exceeded projections such as the following.
・Unforeseen changes in laws and regulations
・Political or social disorder including acts of terrorism
・Greater than anticipated fluctuation in market or economic trends or exchange rates
・Differences in labor-management relations or business customs

9

2. Overview of Nichii GroupThe Nichii Group consists of Nichii Gakkan Company and its 32 subsidiaries and three affiliates, and is engaged in four
segments (Medical Support, Long-Term Care, Health Care and Education).
In the Medical Support segment, the Group provides contract administration services to medical institutions andpharmacies, sells medical equipment to them, and disinfects and sterilizes equipment in medical institutions. The
Group’s services in this segment also include medical business consulting, the operation of childcare centers in
hospitals, and the operation, etc. of clinics in Singapore.
The Long-Term Care segment provides institutional services such as long-term care insurance. These services include
home-care services (including home-care support, home-visit care, home-visit bathing, home-visit nursing care, andday care services) and facility-care services (including care for residents in specific facilities and care for group homeresidents with dementia). In this segment, the Group sells and leases welfare equipment and provides welfare services
for the disabled. The Group also directly manages childcare centers and operates childcare centers in companies.
The Health Care segment sells health care products as services not covered by institutional services such as long-termcare insurance, and also provides a housekeeping service, catering, and a care staff dispatching service, among otherservices.
The Education segment develops courses primarily for training medical office workers and care staff and operates Web
College, an e-learning website providing a range of courses for personal development and hobbies. The Group isaggressively developing its language education business. In the language education business, GABA Corporation
provides one-on-one English conversation lessons and COCO Juku and COCO Juku Junior provide group lessons, and
the Group offers other language education services to meet the needs of a wide range of age groups by, for instance,developing the overseas study support system.
In addition, the Group, primarily subsidiaries, offers data processing, stores and delivers goods, publishes and sells
books, produces and sells flowers, plants, seeds, and seedlings, and engages in leasing and worker dispatching services.
The Group also operates Lakewoods Garden Himeharu no Sato, a theme park, in Mobara, Chiba and breeds and sells
pet dogs.
The table below shows the main services and products in each business category of the Group and the main companies
that provide those services and products. These business categories are roughly the same as business segments.
Segments

Medical Support

Long-term Care

Principal Businesses/Products
Medical practice services such as reception, medical fee
claims, accounting, computer operations, and medical record
management; sale, disinfection and sterilization services(inside the hospital) for medical equipment; medical affairs
consulting; operation of in-hospital childcare centers;
operation, etc. of clinics in Singapore
Home-care support (creation of care plan), home-visit care,home-visit bathing, home-visit nursing care, day care, careservice for specified facility residents, care for group homeresidents with dementia, sale and rental of welfare equipment,
welfare services for the handicapped, operation of in-company
childcare centers, direct management of childcare centers

Principal Companies
Nichii Gakkan Company
Nihon Support Service Co., Ltd.
NICHII INTERNATIONAL
CLINIC PTE. LTD

Nichii Gakkan Company
Nichii Carenet Co., Ltd.
Nichii Carepalace Company

Health Care

Sales of health care products, housekeeping service, catering,care staff dispatching service

Nichii Gakkan Company
Nichii Carenet Co., Ltd.
Nihon Support Service Co., Ltd.

Education

Courses for medical office work, training for new care
workers, training for the Certified Care Worker qualification,
development of helpers for expectant and new mothers andEnglish conversation schools; operation of members’ sports
clubs, focused on swimming schools

Nichii Gakkan Company
GABA Corporation
SELC AUSTRALIA PTY LTD.
JSS Corporation

Other

Data processing, storage and delivery service, publication andsale of books, production and sale of flowers, ornamental
plants, seeds and saplings, leasing, personnel service andoperation and management of tourist facilities, breeding andsales of pet dogs

Nihon Support Service Co., Ltd.
Tokyo Marunouchi PublishingCo., Ltd.
Nichii Green Farm Company
Nihon Credit Lease Corp.

10

Other Businesses(consolidated subsidiaries)
Nihon Support
Service Co., Ltd.
Data processing
Storage and delivery service
Personnel services

Tokyo Marunouchi
Publishing Co., Ltd.
Publication and sale ofeducational books, etc.

Nihon Credit
Lease Corp.
LeasingNichii Green
Farm Co., Ltd.
Production and sale offlowers, ornamental plants,
seeds and saplings
Operation and managementof tourist facilities

Nichii Gakkan
Company
Medical Support Segment

Education Segment

Provision of medical clerk
services, etc.

Provision of learning
courses
Support forjob-finding to ourmainstay businesses

Nichii Gakkan Company
Nihon Support Service
Co., Ltd.
NICHIIAINTERNATION
AL CLINIC PTE. LTD.

Nichii Gakkan
Company
GABA
Corporation
SELC AUSTRALIAPTY LYD.

JSS
Corporation*

Long-term Care

Segment
Provisionof long-termcare services
Nichii Gakkan
Company
Nichii CarenetCo.,
Ltd.
Nichii Care Palace
Company

Health Care Segment
Provision of services
not covered by long-termcare insurance
Nichii Gakkan Company
Nichii Carenet Co., Ltd.
Nihon Support Service
Co., Ltd.

Provision of services

Customers
Long-term care facilities
Medical institutions

Students
Users of long-term careservices

Note: Asterisk indicates equity-method affiliate.

11(For reference)In the fiscal year ending March 31, 2016, the Group will change its reportable segments as follows.
・Qualification-type courses such as courses for medical office work and training for new care workers in the Education
segment will be integrated into the Medical Support Segment and Long-Term Care Segment respectively. The Education
Segment will offer mainly language education training and hobby/general education courses.
・The childcare business will be separated from the Medical Support Segment and Long-Term Care Segment to form aseparate segment called the Childcare Segment.
・Control of the operations of Nichii Green Farm Company (production and sale of flowers, plants, seeds, seedlings, etc.,
operation and management of sightseeing facilities, breeding and sales of pet dogs, etc.) will be transferred from the
Other Segment to the Health Care Segment.
・China business will be added to the Medical Support Segment, Long-Term Care Segment, Health Care Segment andChildcare Segment.
The table below shows the main services and products in each business category and the positioning of each business.
Segments

Medical Support

Long-Term Care

Health Care

Education

Childcare

Other

Principal Businesses/Products

Principal Companies

Medical practice services such as reception, medical fee
claims, accounting, computer operations, and medical
Nichii Gakkan Company
record management; sale, disinfection and sterilization
Nihon Support Service Co., Ltd.
services (inside the hospital) for medical equipment;
NICHIIaINTERNATIONAL
medical affairs consulting; operation, etc. of clinics in
CLINIC PTE. LTD.
Singapore; provision of courses for medical office work;
Subsidiaries in China
provision of post-natal care human resources development
and post-natal care services in China, etc.
Home-care support (creation of care plan), home-visit care,home-visit bathing, home-visit nursing care, day care, careservice for specified facility residents, care for group home
Nichii Gakkan Company
residents with dementia, sale and rental of welfare
Nichii Carenet Co., Ltd.
equipment, welfare services for the handicapped; provision
Nichii Carepalace Companyof training for new care workers and training for theSubsidiaries in China
Certified Care Worker qualification; provision of nursing
care human resources development and nursing careservices in China, etc.
Sales of health care products, housekeeping service,catering, care staff dispatching service; production and sale Nichii Gakkan Companyof flowers, plants, seeds and seedlings, operation and Nichii Carenet Co., Ltd.
management of sightseeing facilities, breading and sale of Nihon Support Service Co., Ltd.
pet dogs; provision of housekeeping services human Nichii Green Farm Company
resources development and housekeeping services and sale Subsidiaries in Chinaof high quality sanitary goods in China, etc.
Operation of English conversation schools, provision of Nichii Gakkan Company
hobby/general education courses, operation of members’ GABA Corporation
sports clubs focused on swimming schools, etc.
SELC AUSTRALIA PTY LTD.
JSS Corporation
Operation of in-hospital childcare centers, operation of
in-company/directly managed childcare centers; provision Nichii Gakkan Companyof babysitter development and baby-sitting services and Subsidiaries in China
sales of high-quality care goods for children in China
Nihon Support Service Co., Ltd.
Data processing, storage and delivery service, publication TokyoaMarunouchiaPublishingand sale of books, lease business, etc.
Co., Ltd.
Nihon Credit Lease Corp.

12

3. Management principles(1) Basic philosophy
Since its foundation, the Nichii Group has made “Integrity, Honor, Passion” its principles and basic values. These
principles are our unchanging basic philosophy and also represent our unwavering belief as a company.
As the Nichii Group pursues further globalization, we believe that the unanimous acceptance of this basic philosophy
by the senior management of all our Chinese Group companies (subsidiaries of Nichii Gakkan’s Chinese subsidiary; asof March 31, 2015, 14 companies have entered into agreements) marks the start of a new stage in our development.
We will work to ensure that our Group companies both inside and outside of Japan share the same vision based on thesame basic philosophy and that this guides and energizes our employees, and we will translate this into improvement inour operating performance.
In addition to the philosophy described above, the Nichii Group has set itself the goal of being industry leader in net
sales, earnings, product strength, employee compensation, and corporate ethics, to build a relationship of trust with its
stakeholders.
Our basic policy is to increase our corporate value by working together to achieve these goals and becoming a company
that can contribute to the progress and development of society and a company that is trusted and chosen by society.

(2) Management goals
The Group aims to achieve the following three management indicators:
1) Year-on-year sales growth: double-digit growth2) Operating margin: 7% or more
3) ROE: 15% or more

(3) Mid- to long-term strategies and issues to be addressed
In Japan, competition between companies is intensifying amidst further globalization, and Japanese society isexperiencing structural problems stemming from a super-aging society with a declining working population.
In this business environment, the Group aims to realize long-term stable growth and contribute to solving the problems
facing society by pursuing business diversification and geographical diversification from a global perspective.
In October 2014, the Group used the construction of a business platform in China as an opportunity to shift to a new
business execution system and launched a new business strategy focused on further globalization.
In April 2015, the Group divided Japan into four areas and established “branch offices” to oversee branches andfacilities in each area, and it also transferred the operation and management of courses for medical office work andcourses for new care workers from its 51 education business branches to its 98 medical support business branches and
98 health care business branches. These moves were all undertaken with the intention of moving head office functions
closer to the business frontline.
Through such business strategy and organizational reforms, the Group will develop the business schemes and service
knowhow it has accumulated since its foundation on a global scale, and will endeavor to provide services carefully
tailored to regional characteristics and customer characteristics through a frontline-oriented and customer-oriented
approach.
The Company, whose core business is livelihood support, will develop the base for creating human resources in
anticipation of increasing difficulties acquiring human resources. In the meantime, each employee will use his or her
ingenuity to further strengthen mainstay businesses (Medical Support and Long-Term Care), to achieve early
profitability of strategic businesses (language education, child care, etc.) and to achieve rapid growth in China, thereby
further strengthening the financial base which is the source of competitiveness, and increasing our corporate strength.
We will cyclically enhance the strength of our human resources, our capital strength, and the strength of our services,and promote the creation of an environment in which women and elderly people can work and live with peace of mind,
thereby contributing to the development of local communities and local economies, and ultimately to the activation of
the Japanese economy.

(4) Other significant matters for management
There are no applicable matters.

13

4. Basic Approach to Selection of Accounting Standards
The Group prepares its consolidated financial statements in accordance with Japanese accounting standards. We will
examine the adoption of international financial reporting standards in light of the situation both inside and outside ofJapan.

14

Nichii Gakkan Company (9792) Financial Results for the Year Ended March 31, 2015

5. Consolidated financial statements(1) 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
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
Total intangible assets
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

15(Thousand yen)
Fiscal 2015
(As of March 31, 2015)

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

9,676,856
32,967,460
2,699,192
536,475
36,544
219,948
2,427,270
11,157,583(27,572)
59,693,759

52,550,390(23,496,612)
29,053,777
86,622(82,557)
4,065
4,628,861(3,328,125)
1,300,735
8,163,254
31,417,199(3,532,624)
27,884,574
366,235
66,772,643

53,903,041(25,509,323)
28,393,717
86,622(83,161)
3,460
4,569,346(3,371,089)
1,198,256
8,163,254
39,320,846(4,687,647)
34,633,198
590,285
72,982,173

18,446,825
1,924,742
1,274,064
398,977
216,875
22,261,486

16,584,638
2,244,111
1,506,446
225,680
206,446
20,767,324

2,784,187
7,132,989
2,493,804
12,881,961
2,720,016
1,240,236(406,643)
28,846,552
117,880,682
176,246,468

2,916,228
8,116,797
2,512,314
13,077,561
2,913,933
1,970,790(396,100)
31,111,525
124,861,023
184,554,782

Nichii Gakkan Company (9792) Financial Results for the Year Ended March 31, 2015

Fiscal 2014
(As of March 31, 2014)
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
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Long-term advances received
Deferred tax liabilities
Provision for directors’ retirement benefits
Asset retirement obligations
Net defined benefit liability
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
Valuationadifferenceaonaavailable-for-saleasecurities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

16(Thousand yen)
Fiscal 2015
(As of March 31, 2015)

861,540
4,014,826
9,541,357
1,283,027
1,674,761
881,693
15,669,460
11,019,906
5,092,365
39,7005,651,457
55,730,097

899,695
1,943,712
8,953,071
1,302,049
1,024,196
3,594,420
15,858,530
10,676,085
5,058,440
39,7005,144,723
54,494,625

17,316,153
28,683,159
3,006,894
601
167,784
1,774,879
5,786,553
1,453,096
58,189,123
113,919,220

23,987,773
36,165,228
2,896,955
516
166,513
2,242,411
6,209,067
1,706,465
73,374,932
127,869,558

11,933,790

11,933,790

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

17,354,214
37,399,513(9,921,957)
56,765,561

25,03758,966(332,870)(248,866)
327,574
62,327,248
176,246,468

21,47969,069(522,886)(432,337)
352,000
56,685,224
184,554,782

Nichii Gakkan Company (9792) Financial Results for the Year Ended March 31, 2015

(2) Consolidated statements of income and comprehensive income(Consolidated statements of income)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
Provision for employee retirement benefits
Legal welfare expenses
Travel and transportation expenses
Rent expenses
Provision 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
Share of profit of entities accounted for using
equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rent expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Other
Total extraordinary income

17

Fiscal 2014
(from April 1, 2013
to March 31, 2014)
271,447,305
215,725,965
55,721,340(Thousand yen)
Fiscal 2015
(from April 1, 2014
to March 31, 2015)
271,868,409
217,721,410
54,146,999

7,424,579
193,810
17,947,101
1,268,227
39,7007,932
440,428
3,150,632
1,659,845
3,001,303(4,585)2,214,831
1,844,971
10,210,435
49,399,213
6,322,126

6,377,257
182,361
18,315,059
1,252,937
39,7007,961
452,476
3,211,670
1,691,315
3,194,422
5,257
1,736,949
1,846,949
10,659,247
48,973,567
5,173,432

143,611
196,132
125,846
1,600

157,596
211,21096,939108,832-

10,801

361,855
829,046

333,512918,8932,091,011
63,55555,9952,210,561
4,940,611

2,740,804
62,526
144,1942,947,525
3,144,800

1,030,370
850
1,031,220

5,042
5,042

Nichii Gakkan Company (9792) Financial Results for the Year Ended March 31, 2015

(Thousand yen)
Fiscal 2015
(from April 1, 2014
to March 31, 2015)

Fiscal 2014
(from April 1, 2013
to March 31, 2014)
Extraordinary losses
Loss on retirement of property, plant andequipment, net
Loss on sales of property, plant and equipment, net
Loss on liquidation of subsidiaries and affiliates
Loss on valuation of shares of subsidiaries andassociates
Provision for loss on store closing
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

18

80,43820,03677,0362,134--

24,062

8,284
26,9081,556
194,224
5,777,606
3,174,356(258,768)
2,915,588
2,862,018
30,8082,831,209

72,7405,531
124,505
3,025,337
2,246,672
330,699
2,577,372
447,964
31,926
416,037

Nichii Gakkan Company (9792) Financial Results for the Year Ended March 31, 2015

(Consolidated statements of comprehensive income)

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Minority interests

19

Fiscal 2014
(from April 1, 2013
to March 31, 2014)
2,862,018(Thousand yen)
Fiscal 2015
(from April 1, 2014
to March 31, 2015)
447,964(121,889)(13,223)(135,113)
2,726,904(3,558)
10,103(190,016)(183,471)
264,492

2,696,096
30,808232,566
31,926

Nichii Gakkan Company (9792) Financial Results for the Year Ended March 31, 2015

(3) Consolidated statements of changes in net assets
Fiscal 2014 (from April 1, 2013 to March 31, 2014)(Thousand yen)
Shareholders’ equity
Capital surplus

Retained earnings

Treasury stock, at
cost

Total shareholders’equity11,933,790

17,354,214

36,818,238(5,372,812)

60,733,430

11,933,790

17,354,214

36,818,238(5,372,812)

60,733,430

Capital stock
Balance at the beginning of
the period
Cumulativeaeffectsaofchangesainaaccounting
policies
Restated balance
Changes of items during theperiodDividends from retained
earnings(1,327,831)(1,327,831)

Net income

2,831,209

2,831,209

Purchase of treasury stock(1,876)

Change of scope of
consolidation

13,606(1,876)
13,606

Changes other thanshareholders’ equity
during the period (net)Total changes of items
during the period--

1,516,985(1,876)

1,515,109

Balance at the end of
the period

11,933,790

17,354,214

38,335,223(5,374,688)

62,248,540

Minority
interests

Total net
assets

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at the beginningof the period

Total
Foreign currency Remeasurements accumulatedtranslationof definedotheradjustments
benefit planscomprehensive
income146,927

72,190-219,118

302,765

61,255,314

146,927

72,190-219,118

302,765

61,255,314

Cumulative effects ofchanges in accounting
policies
Restated balance
Changes of items during
the period
Dividends from retained
earnings(1,327,831)

Net income

2,831,209

Purchase of treasurystock(1,876)

Change of scope of
consolidation

13,606

Changes other thanshareholders’ equity
during the period (net)(121,889)(13,223)(332,870)(467,984)

24,808(443,175)

Total changes of items
during the period(121,889)(13,223)(332,870)(467,984)

24,8081,071,933

Balance at the end of theperiod25,03758,966(332,870)(248,866)

327,574

62,327,248

20

Nichii Gakkan Company (9792) Financial Results for the Year Ended March 31, 2015

Fiscal 2015 (from April 1, 2014 to March 31, 2015)(Thousand yen)
Shareholders’ equity
Capital stock
Balance at the beginning of
the period

11,933,790

Capital surplus

Retained earnings

Treasury stock, at
cost

Total shareholders’equity17,354,214

38,335,223(5,374,688)

62,248,540

Cumulativeaeffectsaofchangesainaaccounting
policies
Restated balance

96,902
11,933,790

17,354,214

38,432,126

96,902(5,374,688)

62,345,433

Changes of items during theperiodDividends from retained
earnings(1,397,676)(1,397,676)

416,037

416,037

Net income
Purchase of treasury stock
Disposal of treasury stock(27)

Change of scope of
consolidation(4,547,351)(4,547,351)

82

54(50,947)(50,947)

Changes other thanshareholders’ equity
during the period (net)Total changes of items
during the period--(1,032,613)(4,547,268)(5,579,881)

Balance at the end of
the period

11,933,790

17,354,214

37,399,513(9,921,957)

56,765,561

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at the beginningof the period

25,037

Total
Foreign currency Remeasurements accumulatedtranslationof definedotheradjustments
benefit planscomprehensive
income58,966(332,870)(248,866)

Minority
interests

327,574

Cumulative effects ofchanges in accounting
policies
Restated balance

Total net
assets62,327,248
96,90225,03758,966(332,870)(248,866)

327,574

62,424,151

Changes of items during
the period
Dividends from retained
earnings(1,397,676)

Net income

416,037

Purchase of treasury
stock(4,547,351)

Disposal of treasury
stock

54

Change of scope of
consolidation(50,947)

Changes other thanshareholders’ equity
during the period (net)(3,558)

10,103(190,016)(183,471)

24,426(159,044)

Total changes of items
during the period(3,558)

10,103(190,016)(183,471)

24,426(5,738,926)

Balance at the end of theperiod21,47969,069(522,886)(432,337)

352,000

56,685,224

21

Nichii Gakkan Company (9792) Financial Results for the Year Ended March 31, 2015

(4) Consolidated statements of cash flows(Thousand yen)
Fiscal 2015
(from April 1, 2014
to March 31, 2015)

Fiscal 2014
(from April 1, 2013
to March 31, 2014)
Cash flows from operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill
Impairment loss
Increase (decrease) in provision for retirement
benefits
Increase (decrease) in provision for directors'
retirement benefits
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for loss on store
closing
Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expenses
Share of (profit) loss of entities accounted forusing equity method(Gain) loss on sales of investment securities
Loss on valuation of shares of subsidiaries andassociates
Loss on retirement of property, plant andequipment, net(Gain) loss on sales of property, plant andequipment, net
Loss on liquidation of subsidiaries and affiliates(Increase) decrease in notes and accounts
receivable-trade(Increase) decrease in inventories(Increase) decrease in other current assets
Decrease (increase) in claims provable inbankruptcies(Increase) decrease in other fixed assets
Increase (decrease) in notes and accounts
payable—trade
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

22

5,777,606
6,111,588
1,844,971
26,9083,025,337
6,062,982
1,846,949
72,740(4,995,024)-

465(1,271)

87,523(33,925)(575,446)(14,306)

1,654(8,284)

5,278,605(148,646)
2,091,011

268,231(161,729)
2,740,804-(10,801)(1,030,370)(5,042)-

24,06280,43820,036-2,134

77,036-(2,840)(763,473)

66,887(173,161)

161,165(236,320)

544,9145,562

430,032

239,090

34,64335,327(171,242)(2,955,442)
174,692
11,807
12,588,614
37,4002,712,696(159,448)
163,663
30,06516,016,246
46,436-2,500(2,092,055)(3,013,669)
7,520,290(2,740,490)(2,695,564)
10,629,128

Nichii Gakkan Company (9792) Financial Results for the Year Ended March 31, 2015

Cash flows from investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of short-term investment securities
Proceeds from sales 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
Purchase of stocks of subsidiaries and affiliates
Purchase of investments in subsidiaries and affiliates
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
Cash dividends paid to minority shareholders
Repayments of lease obligations
Other, net
Net cash provided by (used in) financing activities
Effectaofaexchangearateachangesaonacashaandacash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increaseainacashaandacashaequivalentsafromanewly
consolidated subsidiary
Cash and cash equivalents at end of year

23

Fiscal 2014
(from April 1, 2013
to March 31, 2014)(Thousand yen)
Fiscal 2015
(from April 1, 2014
to March 31, 2015)(812,000)
814,000(2,604,461)
2,900,000(1,816,697)(1,303,727)(200,000)
1,969,115(532,800)(358,200)(1,421,141)
136,568(953,333)
326,755
61,473(316,297)(4,110,747)(1,008,000)
808,000(2,198,508)
2,700,000(1,748,377)
1,162(1,623,016)(1,009,776)
607,538(531,163)(744,077)(2,978,775)
152,873(608,434)
392,096
177,039(474,032)(8,085,450)

3,032,458
5,500,000(6,746,000)(1,876)(1,326,160)(6,000)(1,296,884)(181,723)(1,026,186)(2,069,915)
16,000,000(9,735,750)
54(4,547,351)(1,396,663)(7,500)(1,278,973)(162,253)(3,198,352)(7,448)(5,133)

2,375,908
8,028,550(659,807)
10,439,653

35,194

41,19910,439,653

9,821,045