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  • Medium and Long-term Strategy.

Medium and Long-term Strategy.

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We offer consistent ‘From elderly care to angel care’ services domestically and abroad

We would like to express our sincere gratitude to all shareholders and investors for their extraordinary support.

Now, we are reporting our performance overview for the March FY2018.

With regards to the nursing care industry, although the domestic aging population is increasing and the demand for nursing-care services is rising, it is difficult to ensure enough personnel cater for these services. It continues to be a major management task for businesses, and the environment surrounding the nursing-care industry continues to be a tough situation.

We accept that the reduction of remuneration will be carried out continually and commonly in the future, so we are considering building businesses that can maintain and continue growth in such an environment. As a measure for that purpose, in our domestic care business, we have implemented rationalization by consolidation of operation centers and optimizing staffing to secure profit and to prepare for business expansion in the future and forming a strong and dominant position in this business area. As a result of this, the operating ratio improved in our flagship operation, the day service.

On the other hand, selling and administrative expenses increased as a result of promoting new businesses domestically and abroad, and investment in subsidiaries. In addition, as extraordinary losses, losses on disposal of fixed assets, impairment losses as well as losses on the closing of offices due to relocation of business establishments and business reorganization scheduled for the fiscal year that ends in March 2019 are being calculated.

As a result of these, our net sales became 8,611,000,000 yen (an increase of 2.1% compared to the previous period), operating profit became 235,000,000 yen (an increase of 0.6%), ordinary profit was 232,000,000 yen (a decrease of 19.6%), and the current net income attributable to our parent company shareholders was 118,000,000 (a decrease of 23.9%).

Next, we will explain our future strategy.

First, concerning the nursing care market, the simultaneous revision of nursing care compensation and medical service compensation was enforced, and for business operators, reward unit price was further revised, as well as service content and quality. While the Long-term Care Insurance System is continuing, the burden on the country is increasing, and if we consider mid-to-long term, we hypothesize that the environment surrounding the business world will continuously become more difficult. However, we believe that high quality services will eventually be chosen by customers, so we will focus our attention on improving the service level of our company so that customers choose us.

Our company group will further enhance the strengths cultivated through 30 years of experience in angel care and 50 years of experience in home care, and from now on, we will continually make efforts to strengthen the foundation that provides consistent service “From elderly care to angel care”

In March FY2019, we are planning to improve capacity utilization of existing centers and open new centers in the domestic care business. As for the angel care business, we are working to improve support systems for our existing customer benefit society and funeral corporations, and aim to open new ones too.

In regards to our businesses abroad, we aim to spread Japanese-style nursing care and angel care services through subsidiary and associated companies in Shanghai and Beijing, China. In response to the urban areas of China approaching an aging population, we will promote group foundation building that provides “From elderly care to angel care”, the same as we have Japan.

Also, we started a personnel introduction service for the nursing care industry from April 2018 at the Care Service Co. Ltd., a subsidiary of the human resource business.

In order to implement our business group’s philosophy of providing the consistent service of “From elderly care to angel care”, we will establish a system that can respond to the aging society domestically and abroad by developing our business foundation from now on.

As for our shareholders and investors, we are looking forward to your understanding and further support in the future.

Toshio Fukuhara
President & CEO,
June 2018


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