UCHIYAMA HOLDINGS Co., Ltd.

Business Details

Operates paid nursing homes, day service centers, group homes, care plan centers, sells and rents welfare equipment, and provides support services for children with disabilities (after-school day services) among other diverse long-term care insurance services. The main revenue source is long-term care insurance compensation, billed to the National Health Insurance Associations in each prefecture. As of the end of the fiscal year under review, the Company operated 195 business establishments across 116 locations. The average occupancy rate of existing facilities remained stable at 93.9%.

Recent Overview

While proceeding with closures of unprofitable facilities, the Company achieved improved occupancy rates along with increased sales and profit.

In FY2026 (ending March 2026), the Company closed one residential-type paid nursing home and one home visit care office, reducing the number of business locations at period-end to 116 locations with 195 business establishments (versus 118 locations with 197 establishments in the prior period). On the other hand, the average occupancy rate of existing facilities improved to 93.9% (from 93.1% in the prior period), and net sales reached ¥24,458 million (up 3.1% year on year), with segment profit at ¥1,773 million (up 4.0% year on year), achieving both increased sales and profit. The Company newly established three in-house certification qualifications: "Excretion Care Specialist," "Dementia Care Leader," and "Care Creator," strengthening human resource development. Support for the introduction of ICT and welfare equipment through the nursing care DX promotion hub "INOVEL BASE" also continued.

Key Products

Growth Drivers

• Continued increase in the population aged 65 and over (projected to reach approximately 38.78 million by 2042), expanding demand for nursing care
• Improvement in occupancy rates at existing facilities (from 93.1% to 93.9%), boosting operating revenue
• Human resource development and service quality improvement through in-house certification qualifications (Excretion Care Specialist, Dementia Care Leader, Care Creator, Rank 2 Up)
• Productivity improvement through the introduction of ICT and nursing care robots utilizing the DX promotion hub "INOVEL BASE"
• Securing human resources and reducing costs by internalizing the recruitment and support functions for Specified Skilled Worker foreign nationals
• Policy of expanding the areas of operation and number of business locations centered on the nursing care business

Risks

• Risk of fluctuation in compensation rates due to revisions to the long-term care insurance system (a revenue structure highly dependent on the system)
• Risk of profit pressure from chronic shortage of nursing care personnel and rising labor costs
• Risk that the pace of expansion is constrained because new openings of nursing care homes depend on municipal public tenders
• Financial burden risk from substantial capital investment and increased borrowings associated with facility openings
• Risk of recording impairment losses (an impairment loss of ¥65 million was recorded in the nursing care business in FY2026 (ending March 2026))
• Risk of revenue concentration with the Fukuoka Prefecture National Health Insurance Association (approximately 16.3% of net sales for the fiscal year under review)