Summary of Consolidated Financial Results for the Three Months Ended November 30, 2022

Summary of Consolidated Financial Results
for the Three Months Ended November 30, 2022
(Japanese GAAP)

January 13, 2022
Company name:
MEIKO NETWORK JAPAN CO., LTD.
Listing:
The First Section of the Tokyo Stock Exchange
Securities code:
4668（URL：https://www.meikonet.co.jp）
Representative:
Kazuhito Yamashita, President & Representative Director
Inquiries:
Kouyuki Sakamoto, Executive Officer, General Manager of Corporate Planning Department
Telephone:+81-3-5860-2111
Scheduled date to file quarterly securities report:January 14, 2022
Scheduled date to commencement dividend payment:
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions)1.

Consolidated financial results for the three months ended November 30, 2021 (from September 1, 2021 to November 30,2021)(Percentages indicate year-on-year changes.)(1) Consolidated operating results (cumulative)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen%
Millions of yen%
Millions of yen%
Millions of yen%Three months ended
November 30, 2021

4,591

2.0

360

(9.1)

383

(14.9)

629

102.1

November 30, 2020

4,502

(5.1)

396

21.0

450

13.0

311

59.0

(Note) Comprehensive income: Three months ended November 30, 2021: ¥665 million [119.8 %]Three months ended November 30, 2020: ¥302 million [(57.2) %]Basic earnings pershare

Diluted earnings
per share

Three months ended

Yen

Yen

November 30, 2021

25.08

－November 30, 2020

12.41

－

(2) Consolidated financial position
Total assetsAs ofNet assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

15,103

10,42569.0

August 31, 2021
14,64910,025(Reference) Equity: As of November 30, 2021:¥10,425 million
As of August 31, 2021:¥10,025 million

68.4

November 30, 2021

2.

Cash Dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Yen

Yen

－

10.00

－

10.00

20.00

11.00

－

11.00

22.00

Fiscal year ended August 31,2021
Fiscal year ending August 31,2022
Fiscal year ending August 31,2022 (Forecast)

Total－(Note) Revision of dividend forecast in the current quarter:

3.

Fiscal year-end

None

Consolidated Financial Results Forecast for Fiscal Year Ending August 31, 2022 (from September 1, 2021 to August 31,2022)
Net sales

Operating profit(% indicates year-on-year changes)
Basic earnings
Profit attributable toowners of parent
per share

Ordinary profit

Millions of yen％

Millions of yen％

Millions of yen％

Millions of yen％yenFirst half(cumulative)

10,100

3.6

952

2.3

1,017

0.1

967

45.1

38.55

Full-year

19,800

4.0

1,040

7.3

1,1140.0

1,025(10.1)

40.86(Note) Revision to the financial results forecast announced most recently:
1YesSummary of Consolidated Financial Results for the Three Months Ended November 30, 2022

*Notes:(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in the scope ofconsolidation): None
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:

None(3) Changes in accounting policies, changes in accounting estimates, and restatement(i)

Changes in accounting policies caused by revision of accounting standards: Yes(ii) Changes in accounting policies due to other reasons:None(iii) Changes in accounting estimates:

None(iv) Restatement:

None(4) Number of issued shares (common shares)
(i)

(ii)

(iii)

Total number of issued shares at the end of the period (including treasury shares)
As of November 30, 2021

27,803,600 shares

As of August 31, 2021

27,803,600 shares

Number of treasury shares at the end of the period
As of November 30, 2021

2,720,058 shares

As of August 31, 20212,720,058 shares

Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Three months ended November 30, 2021

25,083,542 shares

Three months ended November 30, 2020

25,083,622 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an auditcorporation.
* Proper use of earnings forecasts, and other special matters
Forward-looking statements in the document, such as earnings forecasts, are based on the information currently available
and certain assumptions that the company thinks reasonable. Actual results may differ remarkably from the statements
due to variety of different factors.

2Summary of Consolidated Financial Results for the Three Months Ended November 30, 2022

（Reference）Trend of numbers of Meiko Gijuku schools and registered students and system-wide sales
Three months ended
November 30, 2020
From Sep. 1, 2020
to Nov. 30, 2020
OperatingYOY
results
comparison

TermFiscal Period

Number of Meiko Gijuku directly operated schools

208(15)207(1)

Number of Meiko Gijuku directly operated schools (MAXIS)

93+193－Number of Meiko Gijuku directly operated schools (KLINE)

41－

41

－

Number of Meiko Gijuku directly operated schools (TOMONI)*342(1)42－

Number of Meiko Gijuku directly operated schools (One link)

21+2121－

Number of Meiko Gijuku directly operated schools

405+6404(1)

Number of Meiko Gijuku franchised schools

1,437

(93)

1,362

(75)

Total number of Meiko Gijuku schools

1,842(87)

1,766

(76)

Number of registered students of Meiko Gijuku directly
operated schools

14,523(1,113)

15,187+664

Number of registered students of Meiko Gijuku directly
operated schools (MAXIS)

6,977(31)7,027+50

Number of registered students of Meiko Gijuku directly
operated schools (KLINE)

2,766+57

2,976+210

Number of registered students of Meiko Gijuku directly
operated schools (TOMONI)*3

2,187(164)

2,283+96

Number of registered students of Meiko Gijuku directly
operated schools (One link)

867+867

948+81

Number of registered students of Meiko Gijuku directly
operated schools

27,320(384)28,421+1,101

Number of registered students of Meiko Gijuku franchised
Schools

81,310(7,983)76,379(4,931)

Total number of registered students of Meiko Gijuku schools

108,630(8,367)

104,800(3,830)

Sales from Meiko Gijuku directly operated schools(Millions of yen)

2,605

+213

2,589

(16)

Sales from Meiko Gijuku franchised schools *1(Millions of yen)

1,026

(75)

1,082+56

Sales from Japanese language schools(Millions of yen)

191

(189)

185

(6)

Sales from others(Millions of yen)

679

(188)

734+54

Total Sales(Millions of yen)

4,502

(240)

4,591+88

Sales from Meiko Gijuku directly operated schools(Millions of yen)

2,605

+213

2,589

(16)

6,408(502)

6,010(398)9,014(288)

8,599

(415)

System-wide sales from Meiko Gijuku franchised schools(Millions of yen)

Total system-wide sales from Meiko Gijuku schools *2*

Three months ended
November 30, 2021
From Sep. 1, 2021
to Nov. 30, 2021
OperatingYOY
results
comparison

123(Millions of yen )Sales from Meiko Gijuku franchised schools represent royalty revenues and sales of products.
Total system-wide sales from Meiko Gijuku schools represent the sum of total sales of Meiko Gijuku directly operated
schools, including tuition, materials fees, and examination fees, and the total sales of Meiko Gijuku franchised schools,including tuition. Materials fees and examination fees of franchised schools are excluded.
K.M.G Corporation Co., Ltd has changed its name to TOMONI Co., Ltd. as of September 1, 2021.

3

Summary of Consolidated Financial Results for the Three Months Ended November 30, 2022

Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated statement of Balance Sheets
Previous consolidated
fiscal year
(As of Aug. 31, 2021)

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Accounts receivable and contract assets
Securities
MerchandiseWork in process
Supplies
Advance payments to suppliers
Prepaid expenses
Other
Allowance for doubtful accounts(Millions of yen)

Quarterly Consolidated
Accounting Period(As of Nov. 30, 2021)

8,727
767
－
200
114
13
7
19
303
322
(33)

9,271－
946
100
98
8
8
14
274
192
(33)

Total current assets

10,441

10,879Non-current assets
Property, plant and equipmentBuildings and structures
Accumulated depreciation

1,145(676)

1,153(677)

Buildings and structures, net

469

476

Tools, furniture and fixtures
Accumulated depreciation

375(322)371(317)

Tools, furniture and fixtures, net

5254

Land

00

Leased assets
Accumulated depreciation
Leased assets, net

10(1)810(2)
8Total property, plant and equipment

531

538

Intangible assets
Goodwill
Software
Software in progress
Telephone subscription right

203
190
44185
156－
4

Total intangible assets

402

346

Investments and other assets
Investment securities
Long-term prepaid expenses
Deferred tax assets
Leasehold and guarantee deposits
Other2,022
42
226
942
40

2,075
38
27491040

Total investments and other assets

3,274

3,338

Total non-current assets

4,207

4,223

Total assets

14,64915,1034

Summary of Consolidated Financial Results for the Three Months Ended November 30, 2022

(1) Quarterly consolidated statement of Balance Sheets
Previous consolidated
fiscal year
(As of Aug. 31, 2021)(Millions of yen)

Quarterly Consolidated
Accounting Period(As of Nov. 30, 2021)

Liabilities
Current liabilitiesAccounts payable - trade
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Contract liabilities
Lease obligations
Deposits received
Provision for bonuses
Other

119
102
1,139
427
331
1,242
－
154
404
51

164
92
897
436
251
－
1,296
1201
563
29

Total current liabilities

3,876

3,935

Non-current liabilities
Retirement benefit liability
Provision for share awards for directors (and other officers)
Provision for share awards
Long-term accounts payable-other to employees
Long-term accounts payable-other to officers
Deferred tax liabilities
Lease obligations
Asset retirement obligations
Long-term guarantee deposits

111
1134
104
117
187339
1111
15
34
100
117
167337
1

Total non-current liabilities

747

743

Total liabilities

4,624

4,678

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares

972
909
10,529(2,779)972
909
10,893(2,779)

9,632

9,995

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

377
15415
13

Total accumulated other comprehensive income

392

429

Total net assets

10,025

10,425

Total liabilities and net assets

14,64915,103

Total shareholders' equity

5Summary of Consolidated Financial Results for the Three Months Ended November 30, 2022

(2) Quarterly Consolidated statements of profit or loss and comprehensive income
Quarterly Consolidated statements of profit or loss
Three months ended
November 30, 2020
(from Sep. 1, 2020
to Nov. 30, 2020)(Millions of yen)Three months ended
November 30, 2021
(from Sep. 1, 2021to Nov. 30, 2021)

Net sales
Cost of sales

4,502
3,336

4,591
3,461

Gross profit

1,166

1,130

Selling, general and administrative expenses

769769Operating profit

396

360

Non-operating income
Interest income
Dividend income
Rental income
Reversal of allowance for doubtful accounts
Subsidy income
Other

26515
23
2183
14
3

Total non-operating income

55

23

Non-operating expenses
Rental expenses
Other

10

00

Total non-operating expenses

10

Ordinary profit

450383Extraordinary income
Gain on sale of investment securities
Gain on sale of shares of subsidiaries and associates

53－－623

Total extraordinary income

53623

Extraordinary losses
Loss on retirement of property, plant and equipment
Extra retirement payments
Other0－－－24
3Total extraordinary losses

028

Profit before income taxes

503

978

Income taxes - current
Income taxes - deferred

220(28)411(61)

Total income taxes

192

349

Profit311

629

Profit attributable to owners of parent

311

629

6

Summary of Consolidated Financial Results for the Three Months Ended November 30, 2022

Quarterly consolidated statements of comprehensive income(Millions of yen)Three months ended
November 30, 2020
(from Sep. 1, 2020
to Nov. 30, 2020)Three months ended
November 30, 2021
(from Sep. 1, 2021
to Nov. 30, 2021)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Share of other comprehensive income of entities accounted forusing equity method

311

629

(8)

380(1)

Total other comprehensive income

(8)

36

Comprehensive income

302

665

Comprehensive income attributable toComprehensive income attributable to owners of parent302

665

7Summary of Consolidated Financial Results for the Three Months Ended November 30, 2022

Segment Information
Ⅰ Three months ended November 30, 2020 (September 1, 2020 to November 30, 2020)
1．Information related to net sales, profit or loss for each reportable segment.

(Millions of yen)

Reportable segment
Meiko Gijuku
directly operatedschools

Meiko Gijuku
franchisedschools

2,605

1,026

191

3,823

679

4,502

Inter-segment sales andtransfers

－203

－203

6210

Total

2,605

1,230

191

4,027

685

4,713

145

462

(22)

584

77662

Japaneselanguageschools

Total

Others*TotalNet sales
external sales

Segment profit (loss)(Note)* “Others” consists of the operating segments not included in reportable segments. It includes Kids Business(Afterschool), Waseda Academy Kobetsu Schools, MEIKO Kids e business, Jiritsugausyu RED and other businesses of
consolidated subsidiaries.
2．Difference between the Total of the Reportable Segments’ Measures of Profit or Loss and Income according to Consolidated
Quarterly Statements of Income, and the Main Components of the Difference (Matters related to Adjustment of Difference)(Millions of yen)
Profit (Loss)

AmountReportable segment total

584

Profit (Loss) for “Others” category

77

Corporate expenses*(265)Operating profit reported on quarterly statements of income

396(Note)* Corporate expenses are mainly expenses that relate to the General Affairs section of the parent company that are not
attributable to the reportable segment.
3.

Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
No applicable items.

8Summary of Consolidated Financial Results for the Three Months Ended November 30, 2022

Ⅱ Three months ended November 30, 2021 (September 1, 2021 to November 30, 2021)
1．Information about Segment Sales and Income (Loss)(Millions of yen)

Reportable segment
Meiko Gijuku
directly operatedschools

Meiko Gijuku
franchised
schools

180

385

－

565

455

1,021

2,409

697

185

3,291

278

3,570

2,589

1,082

185

3,857

734

4,591

－－－－－－

2,589

1,082

185

3,857

734

4,591

－

216

－

216

5

221

2,589

1,299

185

4,073

739

4,812

70

525

(60)

535

122

658

Net sales
Goods or services that aretransferred at a point in time
Goods or services that aretransferred over a fixed
period of time
Revenue from a contract
with a customer
Other income
Sales to external customers
Intersegment
transfers

salesandTotalSegment profit (loss)

Japaneselanguageschools

Others*TotalTotal(Note)* “Others” consists of the operating segments not included in reportable segments. It includes Kids Business(Afterschool), Waseda Academy Kobetsu Schools, Jiritsugakusyu RED, Meiko Kids e Business, recruitment andtemporary staffing, training programs and other businesses of consolidated subsidiaries.
2．Difference between the Total of the Reportable Segments’ Measures of Profit or Loss and Income according to Consolidated
Quarterly Statements of Income, and the Main Components of the Difference (Matters related to Adjustment of Difference)(Millions of Yen)
Profit (Loss)

AmountReportable segment total

535

Profit (loss) for “Others” category

122

Corporate expenses*(297)

Operating profit reported on quarterly statements of income

360(Note)* Corporate expenses are mainly expenses that relate to the General Affairs section of the parent company that are not
attributable to the reportable segment.
3.

Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
No applicable items.

4.

Matters related to changes in reportable segments
As described in "Changes in accounting policies," the Company has applied the Accounting Standard for Revenue
Recognition from the beginning of the first quarter of the current fiscal year. The method of calculating profit or loss forbusiness segments has been changed as well.
As a result of this change, net sales and segment income of the Meiko Gijuku franchised school business for the first quarter ofthe fiscal year under review were 5 million yen higher than they would have been under the previous method.
Net sales and segment income of "Other" increased by 9 million yen each.

9