Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2010
November 10, 2009
Nichii Gakkan Company
Listed on: Tokyo Stock Exchange 1st Section
9792
URL: http://www.nichiigakkan.co.jp
Daisuke Terada, President and Representative Director
Koichi Terada, Director, Vice President of Accounting and Finance Division and General Manager ofAccounting Department
TEL: 03-3291-2121
Scheduled date of filing quarterly financial report:
November 12, 2009
Scheduled date to start dividends distribution
December 10, 2009
Name of listed company:
Securities code:
Representative:
Contact:(Figures shown are rounded down to the nearest million yen.)

1. Consolidated financial results for the second quarter ended September 30, 2009 (April 1, 2009 – September 30, 2009)(1) Consolidated operating results(Percentage figures represent changes from the same period in the previous year.)

Net Sales

Operating Income

Ordinary Income

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

112,643

6.3

2,398

－

2,293

－677

－

105,958－（1,181）－（1,313）－（1,539）－Six months ended
September 30, 2009
Six months ended
September 30, 2008

Diluted Net Income perShareNet Income per ShareYenYenSix months ended
9.80–September 30, 2009
Six months ended(43.72)–September 30, 2008
Note: Since we have executed a 2-for-1 common share split on April 1, 2009, the figure of net income per-share for the six months ended September 2008 did
not reflect the split.

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Net Assets per Share

Millions of yen

Millions of yen%Yen

As of September 30, 2009

120,553

47,821

39.5

689.42As of March 31, 2009

120,491

47,87339.6

1,372.06

Reference: Shareholders’ equity:
As of September 30, 2009: 47,613 million yen
As of March 31, 2009: 47,682 million yen
Note: Since we have executed a 2-for-1 common share split on April 1, 2009, the figure of net assets per share for the year ended March 2009 did not reflect
the split.

2. Dividends
Dividends per Share (Yen)(Record date)

First Quarter

Second Quarter

Year ended March 31, 2009

─11.00Year ending March 31, 2010

─

6.00

Third QuarterYear-End─

Annual

11.00

22.00

Year ending March 31, 2010─
6.00
12.00
(Forecast)
Note: Change in the forecast of dividends in the second quarter of the fiscal year ending March 31, 2010: None
Note: Since we have executed a 2-for-1 common share split on April 1, 2009, the figure of dividend per share for the year ended March 2009 did not reflect thesplit.

3. Consolidated financial result forecasts for the year ending March 31, 2010 (April 1, 2009 – March 31, 2010)(Percentage figures indicate the rate of change from the same period in the previous year.)

Net Sales
Full year

Operating Income

Ordinary Income

Net Incomeper ShareNet Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

236,000

10.5

5,470

439.6

5,350

568.4

2,500

─

35.97

Note: Revision of the forecasts in the quarter of the fiscal year ending March 31, 2010: None1

Nichii Gakkan Company (9792) Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2010

4. Others(1) Significant changes to subsidiaries during the term (transfers of specific subsidiaries with changes in the scope ofconsolidation): None
(2) Adoption of the simplified accounting as well as specific accounting for preparing the quarterly consolidated
financial statements: Yes
Note: For details, please refer to Page 4, “4. Others” of “Qualitative information and financial statements.”(3) Changes in accounting policies, procedures and methods of presentation for preparing the quarterly consolidated
financial statements (changes described in the section of “Changes in significant matters forming the basis of preparing
the quarterly consolidated financial statements“)
1) Changes due to the revision of accounting standard, etc.: None
2) Changes other than 1): None
(4) Number of shares issued and outstanding (common stock)1) Number of shares issued and outstanding at the end of each period (including treasury stock)
As of September 30, 2009:

73,017,952 shares

As of March 31, 2009:

36,508,976 shares

As of March 31, 2009:

1,756,599 shares

2) Number of treasury stock at the end of each period
As of September 30, 2009:

3,955,090 shares

3) Average number of shares issued and outstanding in each period (quarterly consolidated cumulative period)
Six months ended September 30, 2009: 69,183,778 shares

Six months ended September 30, 2008: 35,219,862 shares

Note: Since we have executed a 2-for-1 common share split on April 1, 2009, above figures representing the number of shares issued and outstanding(including treasury stock) and the number of treasury stock as of March 31, 2009, as well as the average number of shares issued and outstanding(quarterly consolidated cumulative period) for the six months ended September 30, 2008 did not reflect the split.

* Explanation concerning the appropriate use of estimated business results and other special notes
The future prospects of the business results, etc., described in this material is based on information that the Company has
acquired as of the announcement date of financial report, and there is a possibility that actual business results, etc., will bematerially different depending on various factors.

2

Nichii Gakkan Company (9792) Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2010

[Qualitative information and financial statements]
1. Qualitative Information on Consolidated Business Results
The Japanese economy during the first six months ended September 30, 2009 has bottomed out and entered into the recovery
phase, while the volume of domestic production and exports surged, buoyed by the economic stimulus initiatives taken place
inside and outside Japan. However, the recovery is still not convincing enough, as the conditions of employment and earnings
remain sluggish
Amidst these circumstances, the long-term care field saw some developments. These include a 3% upward revision ofcompensation for long-term care workers effective in April, and the government’s decision on subsidy starting from October toimprove working conditions of long-term care workers. Likewise, there have been a range of initiatives in the medical industry,
aimed at enhancing the social security functions, including measures to address doctor shortage.
Under the new executive management system, the Nichii Group has worked on mid- to long-term strategies for businessgrowth which can maximize the performance of its business model “Education creates Employment,” in conjunction withstrengthening the Group’s management resources.
Net sales for the first six months ended September 30, 2009 continue to maintain a growing trend, which, as a result, led to asignificant improvement in earnings. This strong performance was mainly due to a steady growth in the number of students inthe Education Business with higher demand for professional qualifications, as well as improved profitability of the Health Care
Business thanks to increasing number of home care service users .
As a result, consolidated financial results for the six months ended September 30, 2009 showed significant growth: net sales
were 112,643 million yen (105,958 million yen in the same period of the previous year), operating income was 2,398 million
yen (1,181 million yen of operating loss in the same period of the previous year), ordinary income was 2,293 million yen(1,313 million yen of ordinary loss in the same period of the previous year) and net income was 677 million yen (1,539 million
yen of net loss in the same period of the previous year).
Business results by segment were as follows.
<Medical Support Business>
In the Medical Support Business, we have been focusing on enhancing existing services as well as exploring new solution
services. During the first six months under review, the number of new contracts with hospitals was on the increase, reflecting ourefforts to strengthen sales operations to acquire new customers.
Meanwhile, in the medical management support service, we launched “Lifeclover” in July, a portal site for searching
information on medical institutions and care facilities. This initiative was made to promote further comprehensive services thatcan support medical management operations.
As a result, net sales of the Medical Support Business were 50,435 million yen (50,723 million yen in the same period of theprevious year), and operating income was 3,680 million yen (3,736 million yen in the same period of the previous year).
<Health Care Business>
In the Health Care Business during the first six months under review, we have made efforts to improve the quality of existing
services and promote new services, with a view to strengthening the framework of total long-term care services. Furthermore,
we addressed to improve the working conditions for our staff under a new compensation system for long-term care workers,
which was revised and officially announced in April.
For home-care services, the number of service users including users of care planning, home-visit care, and day care services
was increased steadily. In addition, operational profitability was much improved resulting from the increased number of careplans per care manager as well as efforts for more efficient utilization of staff. For facility-care services, profitability was also
improved substantially from the previous period, as the capacity utilization rate of facilities, which were taken over by the Group,
began to rise after reopening.
As a result, both consolidated net sales and operating income for the six months ended September 30, 2009 showed significant
growth, posting 53,592 million yen (49,516 million yen in the same period of the previous year) and 731 million yen (833 million
yen of operating loss in the same period of the previous year), respectively.
<Education Business>
In the Education Business, we actively engaged in providing existing courses in order to respond to the increasing demand forcourses for medical and long-term care qualifications. In addition, we strengthened development efforts for the “MedicalOffice Clerical Workers,” a training course for medical clerical workers, who have come under the spotlight due to thegovernment’s measures to address the shortage of doctors. We also focused on promoting other related courses which canfoster proficient, ready-to-work personnel in the fields of medical and care services.
These efforts resulted in solid growth in the number of students, particularly in our mainstay courses of “Medical OfficeWork” and “Home-Helper Level 2.” Therefore, net sales during the period under review increased to 8,333 million yen (5,346
million yen in the same period of the previous year) and operating income increased to 1,923 million yen (887 million yen ofoperating loss in the same period of the previous year).

3

Nichii Gakkan Company (9792) Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2010

<Other Businesses>
As a result of our efforts to streamline operations within the Group while focusing on our core businesses, net sales of the OtherBusinesses for the first six months under review were 282 million yen (371 million yen in the same period of the previous year)
and operating income 185 million yen (119 million yen in the same period of the previous year).
2. Qualitative Information on Consolidated Financial Position
Total assets at the end of the first six months under review increased by 61 million yen compared with the figure at the end of theprevious fiscal year to 120,553 million yen. This is mainly because current assets increased by 3,176 million yen due toincreases in cash and deposits, notes and accounts receivable, etc., while fixed assets decreased by 3,114 million yen alongwith decreases in investments and other assets.
Liabilities increased by 114 million yen compared with the figure at the end of the previous fiscal year to 72,732 million yen.
This is mainly because current liabilities increased by 803 million yen due to increases in allowance for employee bonuses,
income taxes payable, etc., despite decreases in short-term loans payable and redemption of debenture due within one year. Inaddition, long-term liabilities decreased by 689 million yen due mainly to a drop in long-term loans payable.
Net assets decreased compared with the figure at the end of the previous fiscal year by 52 million yen to 47,821 million yen.
3. Qualitative Information on Consolidated Financial Result Forecasts for the Year Ending March 31, 2010
With respect to the consolidated financial result forecasts for the year ending March 31, 2010, we decided to leave ourforecasts announced on May 19, 2009 unchanged. We expect the financial results for the third and forth quarters to be in linewith our initial forecasts; however, such projections may be revised at any time should we deem it necessary to do so, taking
into consideration the future business development. Any revisions will be promptly disclosed.

4. Others(1) Significant changes to subsidiaries during the term (transfers of specific subsidiaries with changes in the scope ofconsolidation)
There is no related information.
(2) Adoption of the simplified accounting as well as specific accounting for preparing the quarterly consolidated
financial statements*Adoption of simplified method in the accounting method
Method used to value inventories
Write-downs on inventory carrying values were made only on inventories with clearly diminished commercial value
based on the estimated net disposal value.
(3) Changes in accounting policies, procedures and methods of presentation for preparing the quarterly consolidated
financial statements
There is no related information.

4Nichii Gakkan Company (9792) Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2010

5. Quarterly Consolidated Financial Statements(1) Quarterly consolidated balance sheets(Thousands of yen)

As of September 30, 2009
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Merchandise and finished goods
Work in progress
Raw materials and supplies
OthersAllowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures (net)Others (net)Total tangible fixed assets

As of March 31, 2009

5,800,411
27,139,920
452,038
2,636
203,486
7,230,718(119,624)
40,709,588

4,727,904
25,720,516
311,592
3,100
155,076
6,722,029(106,666)

26,887,062
9,262,005
36,149,067

27,033,300
9,535,703

19,323,462
4,410,637
23,734,099

19,920,273
4,135,517

20,649,937(688,999)
19,960,938
79,844,105
120,553,694

23,028,576(695,206)

37,533,553

36,569,004

Intangible fixed assets
GoodwillOthers
Total intangible fixed assets
Investments and other assets
OthersAllowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets

24,055,790

22,333,369
82,958,164
120,491,717

Liabilities
Current liabilities
Notes and accounts payable
Short-term loans payable
Income taxes payable
Accrued expenses
Allowance for employee bonuses
Allowance for directors’ bonuses
OthersTotal current liabilities
Long-term liabilities
Long-term loans payable
Allowance for employee retirement benefits
Allowance for directors’ retirement benefits
OthersTotal long-term liabilities
Total liabilities

5890,503
5,538,002
2,470,222
13,267,539
3,955,504
24,976
11,753,890
37,900,637

803,676
8,668,002
870,677
12,800,370
2,626,995
32,40011,294,730

25,323,437
3,965,483
144,990
5,397,517
34,831,429
72,732,067

26,622,366
3,704,320
142,044
5,052,291

37,096,853

35,521,022
72,617,875

Nichii Gakkan Company (9792) Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2010

(Thousands of yen)

As of September 30, 2009
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Unrealized gains and adjustments
Unrealized gains on other securities
Total unrealized gains and adjustments
Minority interests
Total net assets
Total liabilities and net assets

6

As of March 31, 2009

11,933,790
17,354,214
25,115,503(6,788,520)
47,614,987

11,933,790
17,354,214
24,820,390(6,436,143)(1,451)(1,451)
208,090
47,821,627
120,553,694

10,02847,672,252

10,028
191,560
47,873,842
120,491,717

Nichii Gakkan Company (9792) Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2010(2) Quarterly consolidated statements of income(Six months ended September 30, 2009)(Thousands of yen)Six months ended
September 30, 2008

Six months ended
September 30, 2009

Net sales
Cost of sales

105,958,315
88,049,542

112,643,552
89,917,886

Gross profit

17,908,772

22,725,666

Selling, general and administrative expenses

19,090,561

20,327,577

Operating income (loss)(1,181,788)

2,398,088

Interest income
Commission on consignment for office work
Income from lease of fixed assets
Rent income
Others15,93042,952
100,661－
49,433

14,51858,752－68,51372,337

Total non-operating income

208,977

214,121262,984
23,310－54,647

264,352
3,307
30,901
20,602

340,942

319,163(1,313,754)

2,293,046－
12,264－

43,528－69,757

12,264113,286

10,435－
3,999
75,000－11,265
120,945－－
7,392

Non-operating income

Non-operating expenses
Interest expenses
Bond interest
Rent expenses
OthersTotal non-operating expensesOrdinary income (loss)
Extraordinary income
Gain on sales of fixed assets
Reversal of allowance for doubtful accounts
Gain on prior periods bad debts recovered
Total extraordinary income
Extraordinary losses
Loss on retirement of fixed assets
Loss on valuation of investment securities
Loss on valuation of stocks of subsidiaries and affiliates
Provision of allowance for doubtful accounts
Loss on liquidation of businessTotal extraordinary losses

89,435

139,602(1,390,924)

2,266,730

Income taxes
Income taxes–deferred

266,927(134,435)

2,141,511(573,534)

Total income and other taxes

132,492

1,567,977

Minority interests income of consolidated subsidiaries

16,22521,029(1,539,642)

677,723

Net income (loss) before income taxes and minority interests

Net income (loss)(3) Notes on premise of a going concern
There is no related information.
(4) Notes on significant fluctuation in amounts of shareholders’ equity
There is no related information.
7