Summary of Consolidated Financial Results
for the Six Months Ended February 28, 2022
(Japanese GAAP)

April 13, 2022
Company name:
MEIKO NETWORK JAPAN CO., LTD.
Listing:
TokyoSecurities 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:
April 14, 2022
Scheduled date to commencement dividend payment:
May 9, 2022
Preparation of supplementary material on quarterly financial results: Available
Holding of quarterly financial results briefing:
Scheduled (for analysts and institutional investors)(Amounts are rounded down to the nearest million yen.)

1. Consolidated financial results for the Six months ended February 28, 2022 (from September 1, 2021 to February 28, 2022)(% indicates changes from the previous corresponding period.)(1) Consolidated operating results (cumulative)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions
ofyen%
Millions
ofyen%
Millions
ofyen%
Millionsof yen%Six months ended
February 28, 2022

9,927

1.9

1,265

36.1

1,326

30.6

1,227

84.2

February 28, 2021

9,744(6.5)

930(27.4)

1,016(26.6)

666(15.8)(Note) Comprehensive income: Six months ended February 28, 2022: ¥1,285 million [83.5 %]Six months ended February 28, 2021: ¥700 million [(36.0) %]Basic earnings per
share
Six months ended

Diluted earnings
per share

Yen

Yen

February 28, 2022

48.94

－February 28, 2021

26.57

－

(2) Consolidated financial position
Total assetsAs ofNet assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

15,75011,04570.1

10,025

68.4

February 28, 2022
August 31, 2021
(Reference) Equity: As of February 28, 2022:
As of August 31, 2021:

14,649¥11,045 million¥10,025 million

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

Fiscal year-endTotalNone

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

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

Ordinary profit

Millions of yen％

Millions of yen％

Millions of yen％

Millions of yen％

yen

19,800

4.0

1,040

7.3

1,114

0.0

1,025(10.1)

40.86(Note) Revision to the financial results forecast announced most recently:

None*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
1)

Changes in accounting policies caused by revision of accounting standards: Yes

2)

Changes in accounting policies due to other reasons:

None

3)

Changes in accounting estimates:

None

4)

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

Total number of issued shares at the end of the period (including treasury shares)
As of February 28, 2022
27,803,600 shares
As of August 31, 2021

(ii)

(iii)

27,803,600 shares

Number of treasury shares at the end of the period
As of February 28, 2022

2,720,058 shares

As of August 31, 2021

2,720,058 shares

Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Six months ended February 28, 2022

25,083,542 shares

Six months ended February 28, 2021

25,083,599 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit
corporation.
* 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.

（Reference）Trend of numbers of Meiko Gijuku schools and registered students and system-wide sales
Six months ended
February 28, 2021
From Sep. 1, 2020
to Feb. 28, 2021
OperatingYOY
results
comparison

TermFiscal Period
Number of Meiko Gijuku directly operated schools

208(15)

214+6

Number of Meiko Gijuku directly operated schools (MAXIS)

93(1)

95+2

Number of Meiko Gijuku directly operated schools (KLINE)

41(2)

41

-

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

42

(1)

42-

Number of Meiko Gijuku directly operated schools (One link)

21+2121-

Number of Meiko Gijuku directly operated schools (Cooth) *2--

15+15405+2428+23

Number of Meiko Gijuku franchised schools

1,404(125)

1,350(54)

Total number of Meiko Gijuku schools

1,809(123)

1,778(31)

Number of registered students of Meiko Gijuku directly
operated schools

14,315(755)

14,817+502

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

6,824(254)

6,744(80)

Number of registered students of Meiko Gijuku directly
operated schools (KLINE)2,694+96

2,736+42

Number of registered students of Meiko Gijuku directly
operated schools (TOMONI)*1

2,159

(69)

2,168

+9

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

832

+832

899+67

umber of registered students of Meiko Gijuku directly
operated schools (Cooth) *2

--

1,077

+1,077

Number of registered students of Meiko Gijuku directly
operated schools

26,824(150)

28,441+1,617

Number of registered students of Meiko Gijuku franchised
Schools

75,935(9,155)71,241(4,694)

Total number of registered students of Meiko Gijuku schools

102,759(9,305)

99,682(3,077)

Number of Meiko Gijuku directly operated schools

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

5,877

+198

6,134+257

Sales from Meiko Gijuku franchised schools *3(Millions of yen)

2,159

(233)

2,281

+121

Sales from Japanese language schools(Millions of yen)

475

(264)

330

(144)

Sales from others(Millions of yen)

1,231

(378)

1,180

(51)

Total Sales(Millions of yen)

9,744

(677)

9,927

+182

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

5,877

+1986,134+257

13,424(1,525)

12,793(630)

19,302(1,326)18,928(373)

System-wide sales from Meiko Gijuku franchised schools
Total system-wide sales from Meiko Gijuku schools *4*Six months ended
February 28, 2022
From Sep. 1, 2021
to Feb. 28, 2022
Operating
YOY
results
comparison

1
2
3
4

(Millions of yen)
(Millions of yen )K.M.G Corporation Co., Ltd has changed its name to TOMONI Co., Ltd. as of September 1, 2021.
Cooth CO., LTD. was included in the scope of consolidation on December 1, 2021 due to the acquisition of shares.
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.

Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated statement of Balance Sheets(Millions of yen)

As of August 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
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Software in progress
Telephone subscription right
Total intangible assets
Investments and other assets
Investment securities
Long-term prepaid expenses
Deferred tax assets
Leasehold and guarantee deposits
Long-term time deposits
Other
Total investments and other assets
Total non-current assets
Total assets

As of February 28, 2022

8,727
767
－
200
114
13
7
19
303
322(33)
10,4419,660－
728－
106
7
13
5
280
387(31)
11,1581,145(676)469
375(322)
52
0
10(1)
8531

1,308(755)552390(332)57
49
35(21)
14674

203
190
44402

188
140
31
4364

2,022
42
226
942
－
40
3,274
4,207
14,649

2,249
38
190
934
100
40
3,553
4,591
15,750(Millions of yen)
As of August 31, 2021

Liabilities
Current liabilities
Accounts payable - trade
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Contract liabilities
Lease obligations
Deposits received
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
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
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

As of February 28, 2022

119
102
1,139
427
331
1,242－
1
54
404
51
3,876

214
184
924
717
457
－
852
1
152
367
19
3,891

－
111
11
34
104
117
18
7
339
1
747
4,624

56
116
19
34
90
117
10
13
351
1
812
4,704

972
909
10,529(2,779)
9,632

972
909
11,491(2,779)10,594377
15392
10,025
14,649436
14450
11,04515,750(2) Quarterly Consolidated statements of profit or loss and comprehensive income
Quarterly Consolidated statements of profit or loss
For the six months ended
February 28, 2021
(from Sep. 1, 2020
to Feb. 28, 2021)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Rental income
Reversal of allowance for doubtful accounts
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Rental expenses
OtherTotal non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Gain on sale of shares of subsidiaries and associates
Total extraordinary income
Extraordinary losses
Loss on retirement of property, plant and equipment
Extra retirement payments
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent(Millions of yen)

For the six months ended
February 28, 2022
(from Sep. 1, 2021
to Feb. 28, 2022)

9,744
6,8972,846
1,916
930

9,927
7,033
2,894
1,628
1,265

67－
1013
47
793

5
10
18
7
2
512
620
4
30
7
1,016

0－
0
0
1
1,326

53－
53－
623
623

0－
－
0
1,069
388
14
402
666
666

0
24
3
28
1,921
675
18
694
1,227
1,227

Quarterly consolidated statements of comprehensive income

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive incomeComprehensive income attributable toComprehensive income attributable to owners of parent(Millions of yen)

For the six months ended
February 28, 2021
(from Sep. 1, 2020 to Feb.
28, 2021)

For the six months ended
February 28, 2022
(from Sep. 1, 2021 to Feb.
28, 2022)

666

1,227

32

58

234700(0)58
1,285700

1,285

Segment Information
Ⅰ Six months ended February 28, 2021 (September 1, 2020 to February 28, 2021)
1．Information related to net sales, profit or loss for each reportable segment.

(Millions of yen)

Reportable segment
Meiko Gijuku
directly operated
schools

Meiko Gijuku
franchisedschools

Japaneselanguage
schools

Others*TotalNet sales

Totalxexternal sales

5,877

2,159

475

8,512

1,231

9,744

Inter-segment sales andtransfers

－405－

405

14420

Total

5,877

2,565

475

8,918

1,245

10,164

878

671

(71)

1,479

7

1,486

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 ofconsolidated subsidiaries Koto & Company and Tokyo Ishin Gakuin.
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
Profit (Loss) for “Others” category

1,479
7Corporate expenses*(556)

Operating profit reported on quarterly statements of income

930(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.

Ⅱ Six months ended February 28, 2022 (September 1, 2021 to February 28, 2022)
1．Information about Segment Sales and Income (Loss)(Millions of yen)
Reportable segment

Meiko Gijuku
directly operated
schools

Meiko Gijuku
franchised
schools

364

812

－

1,177

707

1,884

5,770

1,468

330

7,569

473

8,042

6,134

2,281

330

8,746

1,180

9,927－－－－－－

6,134

2,281

330

8,746

1,180

9,927

－

454－

454

4

459

6,134

2,736

330

9,201

1,184

10,386861

1,042(105)

1,798

61

1,859

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

sales

andTotal
Segment profit (loss)

Japaneselanguageschools

Others*

Total

Total(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, Jiritsugakusyu RED, HR solution
Business and other businesses of consolidated subsidiaries Koto & Company.
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
Profit (loss) for “Others” category

1,798
61

Corporate expenses*(593)

Operating profit reported on quarterly statements of income

1,265(Note)* Corporate expenses are mainly expenses that relate to the General Affairs section of the parent company that are notattributable to the reportable segment.
3.

Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Effective from the second quarter of the current consolidated fiscal year, the Company acquired all outstanding shares of CoothCo., LTD., and Cooth Co., LTD. has been included from the scope of consolidation.
As a result, goodwill increased by 23 million yen in the "Meiko Gijuku directly operated schools" segment.

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 second
quarter of the fiscal year under review were 5 million yen higher than they would have been under the previous method. Netsales and segment income of "Other" increased by 12 million yen each.

(Significant subsequent events)
At a meeting of the Board of Directors held on March 31, 2022, the Company resolved to acquire all outstanding shares ofSimple Inc.
On the same day, the Company entered into a share transfer agreement and made the company a consolidated subsidiary byacquiring its shares as of April 1, 2022.
1. Outline of Business Combination(1) Name of acquired company and its business content
Name of acquired company: Simple Inc.
Business content: Fee-charging employment agency(2) Main reasons for the business combination
Simple Inc. has developed career change support services: "SIMPLE NURSERY" for nursery and kindergarten teachersand "SIMPLE DIETITIAN" for dietitians. Simple Inc. is highly regarded as a human resource placement company thatputs job seekers, nursery schools, and kindergartens first.
In addition, the corporate culture of Simple Inc., which is dedicated to maintaining a better state for the future than when
we first met, has a strong affinity with the Company's Vision: "Bright Light for the Future."
Therefore, we believe that the acquisition of shares in Simple Inc. will generate synergistic effects and drive the growthof the corporate group that extracts the potential in people.
The Company hold that it is an important business strategy for the Company to create the educational business andtransform the business portfolio into one that is resilient to changes in the social environment by strengthening initiatives
in the new human resources business.
As part of the implementation of this strategy, we will strengthen our human resource placement business in the childcare
industry to resolve the social issue of job losses and accelerate our transformation into a business portfolio that is resilient
to changes in the social environment.
(3) Date of business combination
April 1, 2022 (Date of share acquisition)(4) Legal form of business combination
Acquisition of shares for cash consideration(5) Name of company after combination
Simple Inc.
(6) Percentage of voting rights acquired
100%(7) Main basis for determining the acquiring company
The Company acquired the shares for cash consideration.
2. Breakdown of acquisition cost and type of consideration for the acquired company
Consideration for acquisition: Cash 210,000 thousand yen
3. Amount of goodwill incurred, reason for incurrence, and amortization method and period of amortization
Not yet determined as the details are under scrutiny.