Financial Results for the First Quarter of the Year Ending March 31, 2016 (J-GAAP)
August 12, 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
TEL: 03-3291-2121
Scheduled date for filing the quarterly financial report: August 13, 2015
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, 2015 (April 1, 2015 – June 30, 2015)(1) Consolidated operating results(Percentage figures represent changes from same period of previous year.)
Profit attributable to
Net Sales
Operating Income
Ordinary Income
owners of parent
Million yen

Three months ended
June 30, 2015
Three months ended
June 30, 2014
(Note) Comprehensive income:%Million yen%

Million yen%

Million yen%

67,878

0.2

(614)

—

(1,028)—(1,165)—67,720

(0.6)

1,258

(27.1)

788(42.3)

147(85.9)

Three months ended June 30, 2015: minus 976 million yen (-%);
Three months ended June 30, 2014: 182 million yen (80.0%)

Net Income per Share

Diluted Net Income per ShareYen

Three months ended
June 30, 2015
Three months ended
June 30, 2014

Yen

(18.05)

—

2.11

—

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

As of June 30, 2015
As of March 31, 2015
Reference: Shareholders’ equity:

Million yen

188,227
184,554%

53,60856,68528.2
30.5

As of June 30, 2015: 53,055 million yen; As of March 31, 2015: 56,333 million yen

2. Dividends
1Q-endAnnual dividends
3Q-end2Q-endYen

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

—
—

Yen

Year-end

Yen

Annual
Yen

Yen

10.00

—

10.00

20.00

11.00

—

11.00

22.00

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

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

%

(1.1)
72.0

(Note) Revisions to most recently announced financial results forecast: No

Profit attributable toowners of parent

Ordinary Income
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) 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 6, (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, 2015:
73,017,952
As of March 31, 2015:
73,017,952
2) Number of treasury stock
As of June 30, 2015:
8,825,122
As of March 31, 2015:
7,521,206
3) Average number of shares issued and outstanding in each period (quarterly consolidated cumulative period)
As of June 30, 2015:
64,561,809
As of June 30, 2014:
69,884,037* 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 to be 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 2 of the quarterly consolidated financial results (attached document), regarding theassumptions upon which forecasts are based and the use of forecasts.

 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 …………………………………………………………………………….……

6(3) Information on the future outlook, including consolidated financial results forecasts ……………………...

6

2. Summary information (notes) ………………………………………………………………………………......

6(1) Significant changes to subsidiaries during the term …………………………………………………………

6(2) Application of specific accounting for preparing the quarterly consolidated financial statements ………….

6(3) Changes in accounting policies, changes of accounting estimates and restatement ………………………...

6

3. Quarterly consolidated financial Statements…………………………………………………………………….

8(1) Quarterly consolidated balance sheets ………………………………………………………………………

8(2) Quarterly consolidated statements of income and comprehensive income …………………………………

10

Quarterly consolidated statements of income
Three months ended June 30 ………………………………………………………………………….

10

Quarterly consolidated statements of comprehensive income
Three months ended June 30 ………………………………………………………………………….

11(3) Notes to quarterly consolidated financial statements ……………………………………………………….

12

Notes on the premise of a going concern …………………………………………………………………..

12

Notes on significant fluctuation in the amount of shareholders’ equity ……………………………………

12

Significant subsequent events ………………………………………………………………………………

12

－ 1 －

1. Qualitative information on quarterly financial results(1) Details of business results
During the first three months ended June 30, 2015, the Nichii Gakkan Group faced a challenging businessenvironment. In April, there was a revision to the long-term care rate, including the expansion of subsidies for an
improvement in the treatment of care workers and the relaxation of certain regulations on staff assignment
standards, while the basic rates for services were lowered substantially. Meanwhile, a major step was taken towardbuilding a social security system for all generations, including initiatives leading to the expansion of the volume ofchildcare services in association with the enforcement of the Support System for Children and Child Rearing tosupport families with small children.
The Chinese economy achieved a GDP growth rate of 7% in the April-June quarter, but China urgently needs toexpand domestic demand-oriented industries, especially the service industry, to achieve sustainable high growth.
In the circumstances, China has begun to develop long-term care infrastructure and create jobs. Beijing developed
a long-term care facilities development plan focusing on home care services ahead of other cities in response to
the aging of society.
In this business environment, the Nichii Gakkan Group pushed ahead with its medium-term business strategy,
focused on globalization to achieve sustainable growth in the medium to long term.
In Japan, the Group sought to restructure its human resources development scheme as a driving force to place its
medical support and long-term care businesses back on a strong growth track. The Group also developed
operations in response to the revision to the long-term care rate and promoted its strategic businesses, including
the language education and childcare businesses.
In restructuring the human resources development scheme, the Group has transferred the management ofqualification-type courses, including courses for medical office work and training for new care workers, to theMedical Support Segment and the Long-Term Care Segment, which have more dominant networks, seeking tobolster its system for gaining students and employees.
In terms of developing operations in response to the revision to the long-term care rate, the Group developed asystem for gaining long-term care premiums and strengthened its specialist care capabilities. To promote its
strategic businesses, the Group enhanced onsite management and expanded its network of schools using
franchises in the language business. It also developed child care centers in response to the introduction of the
Support System for Children and Child Rearing in the Childcare Segment.
In the China business, the core of the medium-term management strategy, the Group turned excellent
housekeeping businesses and vocation training schools in China into Group companies, and with those local
businesses, ran promotions under the Nichii brand, developed a human resources development business and careservices, and prepared to establish service bases, or branches, with human resources development bases on thesame site. The keywords in these initiatives are “home care,” “high quality,” “localization,” and “scale.”
The Group started the human resources development business and care services in Shenyang, Jinan, and Shenzhen
in July and will expand its service areas. The Group will develop branches mainly in large cities and will promotelocalization and scaling. In this way, the Group will contribute to creating a long-term care market and jobs anddeveloping a healthy market in different parts of China.
Looking at the operating results, the number of students of long-term care courses and the number of users of careservices continued to decline. However, sales in the strategic businesses, including the language education,
childcare, and healthcare businesses, expanded, and overall sales increased. Income declined, reflecting asubstantial reduction in long-term care basic rates.
In the first quarter under review, the human resources development scheme was in a transition period, and it willtake time before the scheme produces some results. The Group will continue to strengthen onsite management andto promote its approach to gaining students taking and completing courses and will thereby gain users of its
services.
The Group will seek to put its long-term care business back on the growth path by increasing its staff, gaining
long-term care premiums, and improving efficiency in the management of facilities. To improve earnings, theGroup will promote Group-wide cost structure reform, focusing on reducing selling, general and administrative
expenses.
In the first quarter under review, the Group posted net sales of 67,878 million yen (compared with 67,720 million
yen in the first quarter of the previous fiscal year), an operating loss of 614 million yen (compared with operating
income of 1,258 million yen in the first quarter of the previous fiscal year), and an ordinary loss of 1,028 million
yen (compared with ordinary income of 788 million yen in the first quarter of the previous fiscal year). The Group
recorded a loss attributable to owners of parent of 1,165 million yen (compared with profit attributable to owners－ 2 －of parent of 147 million yen in the first quarter of the previous fiscal year).
In the China business, 15 local businesses decided to become Group companies, of which six businesses were
included in the scope of consolidation. Their operating results from January to March, 2015 are reflected in the
consolidated financial statements (two companies’ results are reflected only in the consolidated balance sheets).
Because they did not start services in collaboration with the Company, the effect of the consolidation is minor.
Results by business segment are as follows:
From the first quarter under review, courses for medical office work and training for new care workers,
qualification-type courses which were in the Education Segment, are incorporated into the Medical Support
Segment and the Long-Term Care Segment, respectively. The childcare business is reported as a separate segment
called the Childcare Segment. The results of the newly consolidated Chinese businesses’ services that existed
before those companies began to collaborate with the Company are included in the Other Businesses.
To compare the results in the first quarter under review and the results in the first quarter of the previous fiscal
year in the following results by business segment, the business segments for the previous fiscal year have been
reclassified, as described above.

－ 3 －<Medical Support Segment>
The Group focused on continuous sales activities to win new contracts and proposals for management support
services, including home rehabilitation support through collaboration with the Long-Term Care Segment. The
Group consequently won new large contracts in the hospital business, and sales in this segment rose. However,profits declined due to prior expenses associated with the start of operations at hospitals with which new contracts
were concluded. Courses for medical office work rose year on year in certain months, and the slump showed signsof bottoming out.
Net sales for the segment came to 27,106 million yen for the first quarter under review (compared with 26,928
million yen posted in the same period of the previous fiscal year). Operating income for the segment was 1,886
million yen (compared with 1,980 million yen posted in the same period of the previous fiscal year).
<Long-term Care Segment>
Both sales and profits declined due to the substantial lowering of the long-term care rate and a decline in theamount of services supplied, attributable to a shortage of human resources for long-term care, particularly in urban
areas. In response to the revision of the long-term care rate, the Group is taking steps in accordance with therevision to the long-term care insurance system, such as attracting users with moderate to severe conditions bystrengthening collaboration with the Medical Support Segment, enhancing specialist care, including dementia careand home-visit care, and promoting short stays using vacant rooms at facilities for facility-care services. To secure
human resources, the Group changed the organization of its branches in April 2015 and has established a system
where relevant businesses secure and cultivate human resources in an integrated manner. Under the new system,
the Group is seeking to employ students who are taking or have completed courses. The Group is also working tosecure human resources and boost the retention rate by taking advantage of its strengths, including campaigns for
employees, support for gaining qualifications, and excellent training.
Net sales for the segment came to 35,673 million yen for the first quarter under review (compared with 36,310
million yen posted in the same period of the previous fiscal year). Operating income for the segment was 1,590
million yen (compared with 3,266 million yen posted in the same period of the previous fiscal year).
<Health Care Segment>
In housekeeping services, its mainstay business, the Group focused on attracting new customers by enhancing
sales activities and promotions. In healthcare product sales, the Group worked to expand sales channels bystrengthening collaboration with the medical and long-term care businesses and promoting corporate sales. The
number of users of housekeeping services and the unit sales of healthcare products increased, and sales in thissegment rose. Income also climbed, reflecting the increase in sales and a reduction in administrative expenses in
the helper dispatching business, which has been transferred from a subsidiary.
Net sales for the segment stood at 913 million yen (compared with 885 million yen posted in the first quarter ofthe previous fiscal year). Operating income for the segment was 31 million yen (compared with an operating lossof 48 million yen posted in the first quarter of the previous fiscal year).
<Education Segment>
Responding to expanding demand for language education for children, the Group focused on building a language
education foundation for responding to all types of needs, increasing the number of franchise classrooms anddeveloping the overseas study support structure. At COCO Juku classrooms for adults, the Group introduced apoint system and flexible courses. The Group expanded optional courses to provide customer-oriented services.
Reflecting these initiatives, the total number of students at COCO Juku and COCO Juku Junior increased steadily,and sales in this segment rose. Income, however, declined due to an increase in promotional spending at
subsidiaries.
Net sales for the Education Business segment totaled 3,126 million yen (compared with 3,023 million yen
posted in the first quarter of the previous fiscal year). Operating loss for the segment was 1,605 million yen(compared with a loss of 1,523 million yen posted in the first quarter of the previous fiscal year).
<Childcare Segment>
In response to the introduction of the Support System for Children and Child Rearing, the Group focused on
opening new child care centers and worked to operate child care centers taking advantage of its strengths,
including services in collaboration with other segments. From April 2015, the Group opened 12 licensed child carecenters. Sales rose, reflecting an increase in the number of children at child care centers, but income declined due－ 4 －to prior expenses associated with the opening of new child care centers.
Net sales for the Childcare Segment totaled 701 million yen (compared with 458 million yen posted in the firstquarter of the previous fiscal year). Operating loss for the segment was 272 million yen (compared with a loss of
174 million yen posted in the first quarter of the previous fiscal year).
<Other Businesses>
The results in the Other Businesses include the operating results of pre-existing services at the local businesses in
China that were consolidated from the first quarter under review (services that they had been engaged in before
the commencement of new services in collaboration with the Company) from January to March.
Net sales for the Other Businesses segment amounted to 355 million yen (compared with 114 million yen posted
in the first quarter of the previous fiscal year). Operating income for the segment was 55 million yen (comparedwith 185 million yen posted in the first quarter of the previous fiscal year).

－ 5 －(2) Details of financial position
Total assets at the end of the first quarter under review increased 3,673 million yen from the end of the previous
fiscal year, to 188,227 million yen. The main reasons for the increase were a 2,187 million yen rise in current
assets, mainly reflecting an increase in cash and deposits, and a 1,485 million yen increase in fixed assets,
primarily due to an increase in lease assets.
Liabilities increased 6,749 million yen from the end of the previous fiscal year, to 134,619 million yen. The key
factors contributing to this increase were a 4,787 million yen rise in current liabilities, mainly reflecting an
increase in short-term loans payable, and a 1,961 million yen increase in non-current liabilities, primarily
attributable to an increase in lease obligations.
Net assets decreased 3,076 million yen from the end of the previous fiscal year, to 53,608 million yen.
(3) Information on the future outlook, including consolidated financial results forecasts
To overcome a shortage of human resources for long-term care in urban areas, the Company launched a new talentacquisition scheme in April, including the reorganization of branches.
The Company is focusing on arranging staff and promoting specialist care to gain premiums in order to mitigate
the adverse effect of the lowering of the basic rate as part of the revision of the long-term care rate in April 2015.
It took some time to develop the new talent acquisition scheme, and there were delays in securing humanresources for long-term care, acquiring compensation, and gaining users of services. Consequently, the results inthe first quarter under review were below expectations.
To fully implement the talent acquisition scheme, the Company is strengthening onsite management, primarily
through branches, and promotions for courses. There were some positive signs emerging, including the beginningof an increase in the number of long-term care staff, and we expect that the scheme will start to produce resultsfrom the second quarter. In the China business, human resources development, care for expectant and new
mothers, and a housekeeping service started in Shenyang, Jinan, and Shenzhen. We expect that these services willcontribute to results in the fourth quarter and have left the results forecasts unchanged.

2. Summary information (notes)(1) Significant changes to subsidiaries during the term
There are no applicable matters.
(2) Application of specific accounting for preparing the quarterly consolidated financial statements
There are no applicable matters.
(3) Changes in accounting policies, changes of accounting estimates and restatement
Changes in accounting policies(Application of Accounting Standard for Business Combinations)
From the first quarter under review, the Company is applying the Accounting Standard for Business
Combinations (ASBJ Statement No. 21; September 13, 2013), the Accounting Standard for Consolidated
Financial Statements (ASBJ Statement 22; September 13, 2013), and the Accounting Standard for Business
Divestitures (ASBJ Statement No. 7; September 13, 2013). Under the newly applied accounting standards, theCompany shall post a gain or loss on change in the Company’s equity in subsidiaries that the Company continues
to control in capital surplus and shall post expenses related to acquisitions as expenses in the consolidated fiscal
year in which they are incurred. Any review of the allocation of the acquisition cost in provisional accounting ofa business combination from the beginning of the first quarter under review shall be reflected in quarterly
consolidated financial statements for the quarter in which the date of the business combination belongs. The
Company also changed the presentation of the net income as well as the presentation from the minority interests
to the non-controlling interests. To reflect these changes in presentation, the quarterly consolidated financial
statements for the first quarter of the previous fiscal year and the consolidated financial statements for theprevious fiscal year have been reorganized.
The application of the Accounting Standard for Business Combinations, etc. follows the transitional treatment set
forth in Paragraph 58-2 (4) of the Accounting Standard for Business Combinations, Paragraph 44-5 (4) of the
Accounting Standard for Consolidated Financial Statements, and Paragraph 57-4 (4) of the Accounting Standard
for Business Divestitures, and the accounting standards are applied from the beginning of the first quarter under－ 6 －review.
The application of the accounting standards has no impact on the Group’s earnings.

－ 7 －3. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets(Thousand yen)
Fiscal 2015
(As of March 31, 2015)
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
Investment and other asset
Other
Less: allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable—trade
Short-term loans payable
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－ 8 －Q1 of Fiscal 2016
(As of March 31, 2015)

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

11,521,719
32,971,827
3,498,382
577,508
32,018
241,5542,565,805
10,497,984(25,059)
61,881,741

28,393,717
34,633,198
9,955,257
72,982,173

28,179,026
37,253,072
9,459,320
74,891,419

16,584,638
4,182,685
20,767,324

17,276,585
4,220,939
21,497,525

31,507,625(396,100)
31,111,525
124,861,023
184,554,782

30,354,742(397,508)
29,957,234
126,346,179
188,227,920

899,695
1,943,712
1,024,196
15,858,530
5,058,440
39,70029,670,350
54,494,625

851,391
8,727,135
528,364
17,341,663
2,747,861
25,85029,060,161
59,282,427

23,987,773
36,165,228
166,513
6,209,067
2,242,411
4,603,937
73,374,932
127,869,558

22,876,195
38,961,594
6,299,801
2,255,708
4,943,477
75,336,777
134,619,204

(Thousand yen)
Fiscal 2015
(As of March 31, 2015)
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
incomeNon-controlling interests
Total net assets
Total liabilities and net assets－ 9 －Q1 of Fiscal 2016
(As of March 31, 2015)

11,933,790
17,354,214
37,399,513(9,921,957)
56,765,561

11,933,790
17,354,214
35,392,438(11,376,994)
53,303,449

21,47928,49469,069(522,886)

209,772(486,704)(432,337)(248,436)

352,000
56,685,224
184,554,782

553,70353,608,715
188,227,920

(2) Quarterly consolidated statements of income and comprehensive income(Quarterly consolidated statements of income)(Three months ended June 30)(Thousand yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
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 method
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary losses
Loss on retirement of property, plant andequipment, net
Loss on sales of property, plant and equipment,
net
Loss on cancellation of leases
Impairment loss
Total extraordinary losses
Income (loss) before income taxes and minority
interests
Income taxes—current
Income taxes—deferred
Total income taxes
Net income (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent

Q1 of 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

Q1 of Fiscal 2016
(from April 1, 2015
to June 30, 2015)
67,878,088
55,634,208
12,243,879
12,858,014(614,134)

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

39,52655,811
259,952
117,605
472,895

645,749
15,865

799,790
14,834

11,305

7,457

7,452
680,373788,581

65,272
887,355(1,028,594)

5,615

7,234

520

568

3,215
13,042
22,3958,390
16,194

766,185(1,044,788)

328,834
276,743605,577
160,608
13,368147,239

269,819(154,515)
115,303(1,160,091)
5,438(1,165,529)－ 10 －

(Quarterly consolidated statements of comprehensive income)(Three months ended June 30)(Thousand yen)

Net income (loss)
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustments
Remeasurements of defined benefit plans, net oftax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests

Q1 of Fiscal 2015
(from April 1, 2014
to June 30, 2014)
160,608

Q1 of Fiscal 2016
(from April 1, 2015
to June 30, 2015)(1,160,091)

1,534

7,015

137

140,668

20,701

36,182

22,374
182,982

183,866(976,225)

169,613
13,368(981,629)
5,404－ 11 －

(3) Notes to quarterly consolidated financial statements
Notes on the premise of a going concern
There are no applicable matters.
Notes on significant fluctuation in the amount of shareholders’ equity
There are no applicable matters.
(Significant subsequent events)(Issuance of stock options (subscription rights to shares))
The Company decided to issue stock options (subscription rights to shares) at the ordinary general meeting ofshareholders held on June 25, 2015 and the Board of Directors meeting held on June 30, 2015 and made decisions
on all items related to the issuance of stock options later. On July 24, 2015, the Company issued stock options.
Details are as follows:
1. Ordinary stock options(1) Number of subscription rights to shares
1,338,500(2) Persons to whom subscription rights to shares will be allotted, the number of them, and the number ofsubscription rights to shares to be allotted
Directors of the Company (excluding outside directors)
13
1,220,000
Directors of subsidiaries of the Company (excluding outside directors)
13
118,500(3) Amount to be paid in for subscription rights to shares
361 yen for a subscription right to shares (361 yen for a share)
The amount is a fair value based on a fair value per unit calculated using the Black-Scholes model on thedate of allotment of subscription rights to shares. The amount to be paid in shall be offset by the
remuneration that is to be paid by the Company of the persons to receive subscription rights to shares.
(4) Class and number of shares underlying subscription rights to shares
1,338,500 common shares of the Company(5) Value of the property to be contributed on exercise of subscription rights
1,108 yen per subscription right to shares (1,108 yen per share)
2. Stock options as compensation(1) Number of subscription rights to shares
41,400(2) Persons to whom subscription rights to shares will be allotted, the number of them, and the number ofsubscription rights to shares to be allotted
Directors of the Company (excluding outside directors)
15
35,000
Directors of subsidiaries of the Company (excluding outside directors)
136,400(3) Amount to be paid in for subscription rights to shares
919 yen for a subscription right to shares (919 yen for a share)
The amount is a fair value based on a fair value per unit calculated using the Black-Scholes model on thedate of allotment of subscription rights to shares. The amount to be paid in shall be offset by the
remuneration that is to be paid by the Company of the persons to receive subscription rights to shares.
(4) Class and number of shares underlying subscription rights to shares
41,400 common shares of the Company(Changes in the establishment of joint ventures and joint-venture contracts)
At a meeting of the Board of Directors held on July 1, 2015, the Company decided to change the content of thenews release Conclusion of a Joint-Venture Contract to Establish a Joint Venture in China, which was announced
on July 31, 2014, including the capital investors and investment ratios, and to conclude a joint-venture contract
with Shanghaishi Laolingshiye Kaifafuwuzhongxin as well as with Beijing Loved Hongyu Technology Co., Ltd.
and establish a joint venture as described below.
1. Reason of changing the capital investors and investment ratios－ 12 －

The Company has formed the Nichii Group with industrial corporations that have a solid track record indifferent parts of China and is developing services including elderly care services, care for new mothers, childcare, and housekeeping services.
The Company has made changes in its joint-venture contract to provide high value-added services, using theexpertise it has developed in Japan, and taking China’s environment and culture into consideration, and todevelop the long-term care market in China. The Company will establish a joint venture with Beijing Loved
Hongyu Technology Co., Ltd., which has consulting and marketing resources, and with Shanghaishi
Laolingshiye Kaifafuwuzhongxin, an elderly care business licensed by the Shanghai Civil Affairs Bureau, andwill thereby strengthen its operating base for developing the Nichii Group’s long-term care services.
The joint venture will play a central role in sales to local governments and will provide services as a memberof the Nichii Group.
2. Outline of the joint venture(1) Name(2) Location(3) Title and name of representative(4)Business content(5) Capital(6) Shareholding(7) To be established

Zhongfuriyi(Shanghai) Jiankangfuwu Youxiangongsi
Shanghai
Chairman and CEO Bai Xiaojiang
Human resources development, wholesale of goods, retail sale of goods,
elderly care, care for new mothers, babysitting
50 million CNY
Nichii Hong Kong Limited
51%
Beijing Loved Hongyu Technology Co.
46%
Shanghaishi Laolingshiye Kaifafuwuzhongxin
3%Planned to be established in August 2015

3. Outline of a subsidiary that will invest(1) Name
Nichii Hong Kong Limited(2) Location
Central, Hong Kong
(3) Title and name of representative
Chairman and CEO Tsuyoshi Terada(4)Business content
Supervising affiliates in the China business, consulting(5) Capital
25 million HKD (wholly-owned subsidiary of Nichii Gakkan)(6) Date of Establishment
February 14, 2014
4. Outline of joint venture partner (1)(1) Name(2) Location(3) Title and name of representative(4)Business content(5) Capital(6) Date of Establishment
5. Outline of joint venture partner (2)(1) Name(2) Location(3) Title and name of representative(4)Business content(5) Capital(6) Date of Establishment

Beijing Loved Hongyu Technology Co.
Chaoyang District, Beijing
Chairman and CEO Zhang Zhengyu
Technology development, technology service, economy and tradeaaaa
consulting, enterprise management and investment consulting, market
research, corporate planning, etc.
100 million CNY
July 23,2014
Shanghaishi Laolingshiye Kaifafuwuzhongxin
Huangpu District, Shanghai
Chairman and CEO Liu Jing
Development of elderly care facilities, development and promotion of
goods for the elderly, development of services for the elderly, and public
relations for public welfare undertakings
50 million CNY
July 26,2013－ 13 －