Semiannual Financial Results Briefing Document for the Year Ending March 2006

Transcription

1 NICHII GAKKAN COMPANY Semiannual Financial Results Briefing Document for the Year Ending March 2006 November 22, 2005

2 Table Contents for the Year Ending ng March Group Strategy Nichii Gakkan Group Business Strategy 2 2. Medical Support Business Current Business Strategy 3 Medical Support Business Growth Strategy 4 3. Health Care Business Home-visit Nursing Care Service Strategy 5 Approach to Long-term Care Insurance System Amendments (1) 6 Approach to Long-term Care Insurance System Amendments (2) 7 4. Education Business Fundamental Review Education Business 8 5. Reference Materials Long-term Care Insurance System Amendments (1) 9 Long-term Care Insurance System Amendments (2) 10 Capital Investment and Allowance for Depreciation (Non-consolidated) 11 All prit targets and other future data, including the number contracts, number users and goals contained All prit targets and other future data, including the number contracts, number users and goals contained in this document, are forecasts based on current Nichii Group information. Such information is subject to the influence in this document, are forecasts based on current Nichii Group information. Such information is subject to the influence uncertain factors such as economic circumstances, relaxation regulations and employment conditions. uncertain factors such as economic circumstances, relaxation regulations and employment conditions. Please understand, therefore, that actual outcome business performance and other achievements, such as Please understand, therefore, that actual outcome business performance and other achievements, such as the number contracts and number users, may be substantially different from those forecast. the number contracts and number users, may be substantially different from those forecast. 1

3 Group Strategy Nichii Gakkan Group Business Strategy Business Growth Strategy Organizational Reform Strengthening Core Business and Approach to New Business and Services Medical Support Business Development and provision management support services / Approach to Business solutions. Health Care Business Approach to preventive and strategy for approaching active seniors. Education Business Developing excellent human resources and supplying them smoothly / Enforcement new sales promotion strategy and development and provision new training courses. Kobe Port Island Center Enhancement current services and research and development new services. Fiscal 2003 Ensuring operational efficiency and improving staff autonomy by implementing business improvement projects. Fiscal 2004 Revitalizing the organization and fortifying management power based on a new management system covering branch shops, branch fices, and the headquarter. Introduction a new employment system. Fiscal 2005 and Onward Reconstructing the headquarter management base under a new management setup. Efficient operation and concentration management resources by restructuring the Nichii Gakkan group. Increasing the sales staff and sharing sales know-how by reforming the sales system Other Strategies Brand Strategy Constructing brand concepts by taking advantage the synergy between Nichii and Iris brands. Business Model Strategic utilization the original business model. Human Resources and Organization Accumulation and enhancement corporate culture, and recruitment younger staff. IT Strategy Utilization managerial information resources by promoting the IT Project. Business Reform Strategy Company-wide business reform and promotion by expanding the solution business and education business. 2

4 Medical Support Business Current Business Strategy Continuous and Enhanced Sales Promotion Activities Sales Expansion among Existing Users (Millions Yen) (Changes in Net Sales per User) Hospitals Proactive Approach to Changes Revision medical service payments in April 2006 Changes in medical management environment due to medical system reforms Increase in demand for payment revision-related business or insurance system revision support business FY02.3 FY03.3 FY04.3 FY05.3 FY06.3(Forecast) Acquiring new users by using the revision-related business as a steppingstone. Intensification sales expansion among existing users. Continuous and Enhanced Cost Improvement *Revision-related business: Payment revision-related, insurance system reform-themed seminars, etc. (%) (Changes in Cost Rate) 85 85% Concrete Efforts 1. Improving operational efficiency by management enhancement 2. Continued improvement contracts 80 80% Second-half First-half Second-half First-half (Forecast) 上 期 下 期 上 期 下 期 FY05.3 FY New employment system 3

5 Medical Support Business Medical Support Business Growth Strategy Management Support Business Focused on Growth Added Value Management Support Medical Business Periphery Business Business Expansion for Growth Consignment Medical Operations Management Support Business Strategy 1. Expansion medical management analysis support services 2. Proactive approach to PFI business 3. Expansion mutual support services between medical and nursing 4. Approach to Business solutions Growth 4

6 Health Care Business Home-visit Nursing Care Service Strategy Annual Growth Rate in Number Users for First-half period (End March through End September) FY 2004 FY 2005 End Mar. End Sep. % Change *Home-visit nursing service includes home-visit bathing service. End Mar. End Sept. % Change Home-visit nursing : Number users (Number facilities) 57,586 (672) 59,430 (764) 3.2% (13.7%) Home-visit nursing : Number users (Number facilities) 60,699 (889) 63,045 (892) 3.9% (0.3%) Day : Number users (Number facilities) 15,147 (184) 15,346 (185) 1.3% (0.5%) Day : Number users (Number facilities) 15,159 (191) 15,889 (213) 4.8% (11.5%) Welfare equipment rental: Number users (Number facilities) 26,000 (163) 28,315 (212) 8.9% (29.3%) Welfare equipment rental: Number users (Number facilities) 29,614 (223) 31,660 (211) 6.9% (-5.4%) First-half Results Efforts were made to acquire new users for respective services. Second-half Strategy 1. Enhancing the capabilities the center manager and service leaders at each facility 2. Constructing an information sharing system at each facility 3. Continuing to promote the Plus 1 program 5

7 Health Care Business Approach to Long-term Care Insurance System Amendments (1) Progress Multi-functional Care Center (Number facilities) 100 Day Care Facility Development and Investment As the end September facilities (Number facilities) End Mar 平 成 17 年 3 月 末 平 成 17 年 9 月 末 平 成 18 年 3 月 末 Account Capital investment 0 New day facilities Expanded day facilities with preventive added End Sept Interim figures for FY Mar (Result) 3,223 million Availability New Day Care Facilities Number new day facilities Availability new day facilities End Oct End Sept End July 2006 (Forecast) 61 facilities End Mar (Forecast) Figures for FY Mar (Forecast) 9,100 million (%) Availability: About 50% Development Development day day facilities facilities is is steadily steadily progressing. progressing. The The number number facilities facilities capable capable providing providing preventive preventive service service is is expected expected to to reach reach by by the the end end March March (Total (Total day day facilities: facilities: 244) 244) Number users new day facilities has increased and the availability (average) is also steadily increasing. Availability is expected to reach about 50% as a pritable line business. 6

8 Health Care Business Approach to Long-term Care Insurance System Amendments (2) Total Preventive Care System Our Total Preventive Care Service Exercise Providing services with both facilities (161 day facilities with exercise machines) and people (Our 2,500 preventive exercise instructors). (To be constructed by the end March 2006) Nutrition Providing nutrition advice by securing an adequate number nationally registered dietitians, and nutrition management utilizing our Frozen Meals. Dental Care Providing oral with a coalition dental hygienists and dentists, utilizing a network medical institutions Establishment a Comprehensive Service Infrastructure We will support local municipalities by working on new preventive benefits and community support projects. 7

9 Education Business Fundamental Review Education Business Education Business We support our group s Business Model which is recognized as the source our business growth. A fundamental business review has begun, with the goal further business expansion. Current Period 1. Strengthening Our Local-Area Strategy Strengthening community-based area marketing Fundamental Review Marketing Activities ~New Advertising Strategy~ Maximizing contact opportunities with potential students by sales promotions and diversification sales channels Renewal advertisements to be more fresh and appealing Improving the efficiency course enrollment procedures utilizing the Web and mobile access. 2. Fundamental Review Marketing Activities 3. Enhancement Educational Business Sections Planning and implementing a systematic and consistent strategy covering course planning, acquiring students, and advertising, through manpower management. 8

10 Reference Materials Long-term Care Insurance System Amendments (1) General Elderly: 19 million Specific Elderly: 1.25 million Elderly requiring support 1 and 2: 1.8 million Elderly requiring nursing 1-5: 2.8 million Local comprehensive support center Consignment Home- support fices Community Support Business Nursing Care Benefits Business Population approach (General business) High risk approach (Specific business) New preventive benefits Wide area services Community-based services Consigned by local governments Designated by prefectural governments Designated by municipalities 9

11 Reference Materials Long-term Care Insurance System Amendments (2) The Elderly Preventive screening People requiring support and nursing People not requiring such Certification Long-term Care Needs Nursing level screening + Checking on maintaining or improving physical condition Specific Elderly People requiring support and nursing New People Requiring Support Current people requiring support + Part current nursing level 1 People Requiring Nursing Care Local Comprehensive Support Centers Home- Support Organizations Community Support Business New Preventive Benefits Nursing Care Benefits 10

12 Reference Materials Capital Investment and Allowance for Depreciation (Non-consolidated) Changes in Capital Investment and Allowance for Depreciation 140 (Billions Yen) Allowance for Depreciation FY Mar Half-year: About 0.8 billion (Result) Full-year: About 1.7 billion (Forecast) (Billions Yen) Capital Investment FY Mar Half-year: About 3.7 billion (Result) Full-year: About 9.1 billion (Forecast) Capital Investment 0 FY Mar FY Mar FY Mar FY Mar FY Mar FY Mar FY Mar (Forecast) *Capital investment: only tangible fixed assets Allowance depreciation: includes tangibles, intangibles, and others 2 0 Allowance for Depreciation FY Mar FY Mar Accomplished capital investment with the implementation long-term insurance, and acquired an overwhelming share the day market. FY Mar FY Mar In this period we concentrated on payback from our aggressive capital investment, and therefore refrained from excessive investment and focused on business development. FY Mar FY Mar Implemented the Multi- functional Care Center Project with the revision long-term insurance, and will continue to promote prior investments. 11