MEIKO NETWORK JAPAN CO.,LTD.
Summary Report on Financial Results for the Second Quarter of the Year Ending August 2021

Summary Report on Financial Results for the Second Quarter of the Year Ending August 2021
(Japanese Accounting Standards)

April 9, 2021
MEIKO NETWORK JAPAN CO., LTD.
Company name:
Stock exchange listing:
The First Section of the Tokyo Stock Exchange
Stock code:
4668（URL：https://www.meikonet.co.jp）
Kazuhito Yamashita, President
Representative:
Contact:
Kouyuki Sakamoto, General Manager, Corporate Planning DepartmentTel:+81-3-5860-2111
Scheduled date for filing the securities report:
April 12, 2021
Scheduled date for commencement of dividend payment:
May 7, 2021
Supplementary material development:
Yes
Financial results meeting:Yes（for analysts and institutional investor）(Amounts less than one million yen are discarded)

１．Consolidated financial results for the Second quarter of the year ending August 2021（September 1, 2020 throughFebruary 28, 2021）(1) Consolidated operating results (cumulative)（Percentages represent increases or decreases from the previous year）
Net income
attributable to owners
Operating income
Ordinary incomeof the parent％％％
million yenmillion yen
million yen

Net sales
million yen％

Second quarter of the year
9,744(6.5)
930 (27.4)
ending August 2021
Second quarter of the year
10,4223.3
1,280 (17.2)
ended August 2020
(Note) Comprehensive income:Second quarter of the year ending August 2021:
700 million yen (36.0%)
Second quarter of the year ended August 2020: 1,094 million yen (4.8%)

yen

Fully diluted net
income per share
yen

26.57

－

29.81

－

Net income per share

Second quarter of the year
ending August 2021
Second quarter of the year
ended August 2020
(2) Consolidated financial situation

Total assets(26.6)

666(15.8)

1,384(13.9)

791(18.5)

Shareholders’equity ratio

Net assets

million yen

1,016

million yen％

Second quarter of the year
15,288
9,797
ending August 2021
Year ended
14,041
9,473
August 2020
(Reference) Shareholders’ equity:
Second quarter of the year ending August 2021:
9,797 million yen
Year ended August 2020:
9,473 million yen
２．Dividends

Year ended
August 2020
Year ending
August 2021
Year ending
August 2021

64.1
67.5

Yearly Dividends per share

End of the firstquarteryen

End of the secondquarteryen

End of the thirdquarter
yen－

15.00

－

10.00

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

1

End of the term

Annual

yen

yen

－

15.00

30.00

－

5.00

15.00

MEIKO NETWORK JAPAN CO.,LTD.
Summary Report on Financial Results for the Second Quarter of the Year Ending August 2021

３．Forecast of consolidated financial results for fiscal year ending August 2021 (September 1, 2020 throughAugust 31, 2021)(Percentages represent increases or decreases from the previous year for the full-year figures,and from the second quarter of the previous year for the second quarter figures.)
Net income
Net income
attributable toNet sales
Operating income
Ordinary income
per shareowners of the parentyen％％％％
million yen
million yen
million yen
million yen

Full-year

18,600

2.1

630

193.3

760

68.2

700

－27.91(Note) Revision of consolidated earnings forecast’ numerical values in the current quarter: Yes
Regarding the revision of the consolidated earnings forecast, please refer to the "Notice of Upward Revision of Full-year
Earnings and Dividend of Surplus” announced on April 9th, 2021.

(Notes)(1) Changes of important subsidiaries during the period(changes of specific subsidiaries in accordance with changes in the scope of consolidation): None
(2) Application of particular accounts procedures to the preparation of quarterly consolidated financial
statements: None
(3) Changes in accounting policies and changes or restatement of accounting estimates(ⅰ) Changes in accounting policies caused by revision of accounting standards:

None(ⅱ) Changes in accounting policies other than (ⅰ):None(ⅲ) Changes in accounting estimates:

None(ⅳ) Restatement:

None(4) Number of outstanding issues（common stock）(ⅰ) Number of outstanding shares at the end of the period (including treasury stock)
Second quarter of the year ending August 2021: 27,803,600 sharesYear ended August 2020:

27,803,600 shares(ⅱ) Number of shares of treasury stock at the end of the period:
Second quarter of the year ending August 2021:

2,720,024 sharesYear ended August 2020:

2,719,974 shares(ⅲ) Average number of shares during the period (accumulated consolidated quarter)
Second quarter of the year ending August 2021: 25,083,599 shares
Second quarter of the year ended August 2020:26,557,026 shares※This financial summary falls outside the scope of quarterly review procedures.

※

Explanation of the appropriate use of the forecasts of financial results, and other noteworthy 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 tovariety of different factors.

2MEIKO NETWORK JAPAN CO.,LTD.
Summary Report on Financial Results for the Second Quarter of the Year Ending August 2021

（Reference）Trend of numbers of Meiko Gijuku schools and registered students and system-wide sales
Second quarter of the year
ended August 2020
September 1, 2019 February 29, 2020
Same period
Operatingof theresults
previous year

Term

Fiscal Period

Number of Meiko Gijuku directly operated schools

223

(8)

208

(15)

Number of Meiko Gijuku directly operated schools(MAXIS)

94－

93(1)

43+1

41

(2)

43+43

42

(1)

Number of Meiko Gijuku directly operated schools(One link)

－－

21+21

Number of Meiko Gijuku directly operated schools

403+36405+2

Number of Meiko Gijuku franchised schools

1,529(124)1,404(125)Total number of Meiko Gijuku schools

1,932(88)1,809(123)

Number of registered students of Meiko Gijuku
directly operated schools

15,070(514)

14,315(755)

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

7,078+530

6,824(254)

Number of registered students of Meiko Gijuku
directly operated schools (KLINE)2,598(154)2,694+96

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

2,228+2,228

2,159

(69)

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

－－

832

+832

Number of registered students of Meiko Gijuku
directly operated schools

26,974+2,09026,824(150)

Number of registered students of Meiko Gijuku
franchised schools

85,090(7,330)75,935(9,155)

Total number of registered studentsof Meiko Gijuku schools

112,064(5,240)102,759(9,305)

5,679

+405

5,877+198※1(million yen)

2,393(174)

2,159(233)(million yen)

739+64475(264)

Number of Meiko Gijuku directly operated schools(KLINE)
Number of Meiko Gijuku directly operated schools(KMG)

Sales from Meiko Gijuku directly operated schools(million yen)

Sales from Meiko Gijuku franchised schools
Sales from Japanese language schools
Sales from others(million yen)

1,610

+34

1,231(378)

Total Sales(million yen)

10,422+329

9,744(677)

5,679+405

5,877+198

14,950(1,099)13,424(1,525)

20,629(694)

19,302(1,326)

Sales from Meiko Gijuku directly operated schools(million yen)

System-wide sales from Meiko Gijuku franchisedschools(million yen)
Total system-wide sales from Meiko Gijuku schools※2※

Second quarter of the year
ending August 2021
September 1, 2020 February 28, 2021
Same period
Operatingof theresults
previous year

1

Sales from Meiko Gijuku franchised schools represent royalty revenues and sales of products.

2

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.

3

MEIKO NETWORK JAPAN CO.,LTD.
Summary Report on Financial Results for the Second Quarter of the Year Ending August 2021

Summary of consolidated financial statements(1) Consolidated balance sheets(Million yen)
End of previous fiscal year
(As of August 31, 2020)

End of second quarter of thefiscal year
(As of February 28, 2021)

AssetsCurrent assets
Cash and deposits

7,015

8,493Accounts receivable - trade

845

693

Securities

300200

Merchandise

137

134

Work in process

117

Supplies

711

Advance payments - trade1418

Prepaid expenses

279

304

Other282

474

Allowance for doubtful accounts

(46)

(39)

8,848

10,297

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

1,508

1,594

Accumulated depreciation

(789)

(838)

Buildings and structures, net

719

756

Tools, furniture and fixtures

350

369

Accumulated depreciation

(321)

(335)

2834

Land

385

385

Leased assets

1010(0)(0)Tools, furniture and fixtures, net

Accumulated depreciation
Leased assets, net

99

1,142

1,184

Goodwill

277

240

Software255

229

Software in progress

80

Telephone subscription right

4

4545

475

2,120

2,014

Total property, plant and equipment
Intangible assets

Total intangible assets
Investments and other assets
Investment securities
Long-term prepaid expenses

4148

Deferred tax assets

198

174

1,006

955

Long-term time deposits

100

100

Other

37

38

3,504

3,330

5,192

4,990

14,041

15,288

Leasehold and guarantee deposits

Total investments and other assets
Total non-current assets
Total assets

4

MEIKO NETWORK JAPAN CO.,LTD.
Summary Report on Financial Results for the Second Quarter of the Year Ending August 2021

(Million yen)
End of previous fiscal year
(As of August 31, 2020)

End of second quarter of thefiscal year
(As of February 28, 2021)

Liabilities
Current liabilities
Accounts payable - trade

119

167

Short-term borrowings－1,000Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes

134

205

1,055

1,170

287

426

198

446

Advances received

1,537

853

Lease obligations

11

Deposits received

45

100

Provision for bonuses

423

381

Other

43

13

3,847

4,768

Retirement benefit liability

104

108

Long-term accounts payable-other to employees

108

107

Long-term accounts payable-other to officers

117

117

Deferred tax liabilities

32

35

Lease obligations

98
342

Total current liabilities
Non-current liabilities

Asset retirement obligations

346

Long-term guarantee deposits

1

1

Total non-current liabilities

720

722

4,568

5,490

972

972

Total liabilities
Net assets
Shareholders' equity
Share capitalCapital surplus

909

909

Retained earnings

10,14010,430Treasury shares(2,903)(2,903)

Total shareholders' equity

9,119

9,409

Valuation difference on available-for-sale securities

342

374

Foreign currency translation adjustment

1113

Accumulated other comprehensive income

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

5354

388

9,473

9,797

14,041

15,288MEIKO NETWORK JAPAN CO.,LTD.
Summary Report on Financial Results for the Second Quarter of the Year Ending August 2021

(2) Consolidated statements of income and comprehensive income
Consolidated statements of income
Second quarter of theprevious consolidated term
(September 1, 2019 February 29, 2020)(Million yen)
Second quarter ofthe consolidated term
(September 1, 2020 February 28, 2021)

Net sales

10,422

9,744

Cost of sales

7,143

6,897

Gross profit

3,278

2,846

Selling, general and administrative expenses

1,997

1,916

Operating profit

1,280

930

Non-operating income
Interest income

86

Dividend income

197

Share of profit of entities accounted for using equity method

3－Rental income

1010

Subsidy income－47

Reversal of allowance for doubtful accounts

55

13

Other

127

Total non-operating income

109

93

Interest expenses

00

Share of loss of entities accounted for using equity method－

4

Rental expenses

33

Other

10

Non-operating expenses

Total non-operating expenses

571,384

1,016

Gain on sales of investment securities－

53

Total extraordinary income－53

Loss on retirement of property, plant and equipment－

0

Total extraordinary losses－

01,384

1,069

593

388

Ordinary profit
Extraordinary income

Extraordinary losses

Profit before income taxes
Income taxes - current
Income taxes - deferred

514

Total income taxes

599

402

Profit785

666

Loss attributable to non-controlling interests(6)－Profit attributable to owners of parent

791

666

6

MEIKO NETWORK JAPAN CO.,LTD.
Summary Report on Financial Results for the Second Quarter of the Year Ending August 2021

Consolidated statements of comprehensive income(Million yen)
Second quarter of theprevious consolidated term
(September 1, 2019 February 29, 2020)
ProfitSecond quarter ofthe consolidated term
(September 1, 2020 February 28, 2021)

785

6663093202

Other comprehensive income
Valuation difference on available-for-sale securities
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income

309

34

1,094700

1,101700(6)－Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7

MEIKO NETWORK JAPAN CO.,LTD.
Summary Report on Financial Results for the Second Quarter of the Year Ending August 2021

Segment Information
Ⅰ Six months ended February 29, 2020 (September 1, 2019 - February 29, 2020)
1．Information about Segment Sales and Income (Loss)(Million yen)

Reportable segment
Meiko Gijuku
directly operatedschools

Meiko Gijuku
franchisedschools

5,679

2,393

739

8,812

1,610

10,422－387

－

387

51

438

5,679

2,780

739

9,199

1,661

10,861

672

1,003

116

1,792

75

1,867

Net sales
Sales to third party
Intersegment sales
Total
Segment income(loss)

Japaneselanguageschools

Total

Others*Total(Note)* “Others” consists of the operating segments not included in reportable segments. It includes Kids Business(Afterschool), Sports Business (Meiko Soccer School), Waseda Academy Kobetsu Schools and other businesses ofconsolidated subsidiaries.
2．Difference between the Total of the Reportable Segments’ Measures of Profit or Loss and Income according toConsolidated Quarterly Statements of Income, and the Main Components of the Difference (Matters related toAdjustment of Difference)(Million yen)
Income(Loss)

Amount1,792

Reportable segment total

75

Income(Loss) for “Others”category
Corporate expenses*(586)

Operating income reported on quarterly statements of income

1,280(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.

8MEIKO NETWORK JAPAN CO.,LTD.
Summary Report on Financial Results for the Second Quarter of the Year Ending August 2021

Ⅱ Six months ended February 28, 2021 (September 1, 2020 - February 28, 2021)
1．Information about Segment Sales and Income (Loss)(Million yen)

Reportable segment
Meiko Gijuku
directly operated
schools

Meiko Gijuku
franchised
schools

5,877

2,159

475

8,512

1,231

9,744－

405－405

14420

5,877

2,565

475

8,9181,245

10,164878

671(71)

1,479

7

1,486

Net sales
Sales to third party
Intersegment sales
Total
Segment income(loss)

Japaneselanguageschools

Total

Others*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, Jiritsugakusyu RED, and other businesses ofconsolidated subsidiaries.
2．Difference between the Total of the Reportable Segments’ Measures of Profit or Loss and Income according toConsolidated Quarterly Statements of Income, and the Main Components of the Difference (Matters related toAdjustment of Difference)(Million yen)
Income(Loss)

Amount1,479

Reportable segment total

7

Income(Loss) for “Others”category
Corporate expenses*(556)

Operating income 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.

9