Riso Kyoiku Co., Ltd.
Q1 Financial Results Briefing for the Fiscal Year Ending February 2022
July 14, 2021

Event Summary[Company Name]

Riso Kyoiku Co., Ltd.

[Company ID]

4714-QCODE[Event Language]

JPN[Event Type]Earnings Announcement[Event Name]

Q1 Financial Results Briefing for the Fiscal Year Ending February 2022

[Fiscal Period]

FY2021 Q1[Date]

July 14, 2021

[Number of Pages]

22[Time]

15:30 –15:56(Total: 26 minutes, Presentation: 20 minutes, Q&A: 6 minutes)[Venue]Webcast[Venue Size][Participants][Number of Speakers]

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Shigenori Hirano
Masaaki Kume

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Vice President and CFO

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Presentation
Kume: This is Kume from Riso Kyoiku. Thank you.
Hirano: It’s time to begin the presentation of the financial results for Q1 of the fiscal year ending February
2022. Again, as part of our measures to prevent infection, we have decided to hold the financial results
briefing online. We apologize for any inconvenience this may cause and thank you for your understanding.
Kume: We will explain the Q1 results and dividends for the fiscal year ending February 2022, as well as themedium-term management plan. In addition, as a future outlook, we will explain 4 alliances with different
industries, business alliances between School TOMAS and KDDI Matomete Office Corporation; the 3-company
alliance between the Company, Hulic Co., Ltd. and Konami Sports; the alliance between the Company and
Hulic Co., Ltd.; and the alliance between Shingakai and Konami Sports Co., Ltd. After the explanation, we will
receive questions using the Q&A function. Thank you.
Mr. Hirano will first explain the results for Q1 of the fiscal year ending February 2022. President Hirano, please.

Hirano: I would like to explain the results for Q1 of the fiscal year ending February 2022. Net sales increasedby 46.7% YoY to JPY6,111 million. Operating income increased by JPY1,113 million YoY to negative JPY203
million. Ordinary income increased by JPY1,157 million YoY to negative JPY161 million. Net income for thequarter increased by JPY869 million YoY to JPY167 million.

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2Compared to Q1 of the fiscal year ended February 2020 before the COVID-19 pandemic, sales increased, andas for profits, although the cram school industry seasonally posts losses in Q1, the deficit has decreased.
The planned progress rate is also 21.1%, which shows that we are doing well compared to before COVID-19
pandemic. And just today, based on the results of Q1 and the recent strong performance, we revised our fullyear forecast for net sales upward by JPY500 million to JPY29.5 billion, ordinary income upward by JPY0.3
billion to 2.8 billion, and net income upward by JPY200 million to JPY1.9 billion.

The main reason for the strong performance in Q1 was the increase in our student population. We have been
receiving an increasing number of inquiries since last year due to our reputation for being the first company
in the industry to take measures to prevent infection, which allows students to learn with peace of mind.
In terms of the number of students by segment as of the end of May 2021, TOMAS saw a 17.5% increase overthe same month last year. This is an increase of 11.1% compared to May 2019, before the COVID-19 pandemic.
Meimonkai saw a 30.1% increase over the same month last year. It is also up 9.8% over May 2019.
Shingakai saw a 26.8% increase over the same month last year. This is also up 23.9% over May 2019. The
Group's total number of students increased by 22% over the same month last year. We are off to a strong
start, with an increase of 9.9% over May 2019.

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In addition, although we were unable to open new schools in the previous fiscal year ended February 2021
due to the spread of COVID-19, we are actively developing these schools from March, the beginning of thecurrent fiscal year ending February 2022.
First of all, TOMAS opened 2 new schools in March, TOMAS Ageo and Inter TOMAS Tamachi. TOMAS Tamachi
was expanded and renewed. In April, Medic TOMAS Kichijoji and Medic TOMAS Omiya were opened. TOMAS
Omiya was expanded and renewed.

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We opened TOMAS Ofuna in May and expanded and renewed TOMAS Kinshicho in June. TOMAS Tsukishima
was opened on July 5, and TOMAS Nagareyama Otakanomori on July 12. TOMAS Kaihin Makuhari wasexpanded and renewed.

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5Meimonkai expanded and renewed TOMEIKAI Kagoshima in March. We opened TOMEIKAI Niigata in April. In
May, Meimonkai Tenjin Ekimae was expanded and renewed. In June, we opened TOMEIKAI Tenjin, andrecently on July 1, we opened Meimonkai Kagoshima and Kumamoto.

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In March, Shingakai expanded and renewed Shingakai Urawa Classroom. We opened Shinga's Club Nursery
Ogikubo and Shinga's Club After-School Care Kichijoji in April, and Shingakai Kichijoji School in May, andShinga's Club After-School Care Omiya is scheduled to open in September.

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As of the end of May, School TOMAS had 74 schools using the system on a contract basis. We expect anincrease in revenue not only from the increase in the number of schools using the service, but also from theincrease in the number of grades using the service. On the profit side, we expect an improvement in profit byreducing fixed costs, such as labor costs and land rent, which used to cost about JPY100 million per year, due
to the outsourcing of the online English conversation business for schools.
We believe that such aggressive development of new schools and other measures will further increase thenumber of students and contribute to sales.

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8Next, I will explain the dividend for the fiscal year ending February 2022.
The Company considers the enhancement of returns to shareholders to be an important management policy.
For the fiscal year ending February 2022, we plan to pay a lump-sum year-end dividend of JPY12 per share,
the same as the previous fiscal year.
From the aggressive development of new schools from this fiscal year and the new enclosure strategy throughbusiness alliances with different industries, which I will explain later, we aim to return to the existing growthline and achieve further growth, thereby strengthening our ability to return profits to our shareholders andincreasing our corporate value.

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9Next, I will explain our 3-year medium-term management plan.
For the current fiscal year ending February 2022, as I explained earlier, we announced today an upwardrevision to our business forecast, with net sales of JPY29.5 billion, ordinary income of JPY2.8 billion, and net
income of JPY1.9 billion.
For the fiscal year ending February 2023, the Company plans net sales of JPY32 billion, ordinary income of
JPY3.2 billion, and net income of JPY2.1 billion.
For the fiscal year ending February 2024, we plan net sales of JPY35.5 billion, ordinary income of JPY3.7 billion,
and net income of JPY2.5 billion.

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We have improved the learning environment by taking our own thorough infection prevention measures sothat students can go to our cram schools with peace of mind. In response to the government's announcementthat vaccinations would be available at workplaces from June 21, we secured 4 vaccination sites and contacted
the Ministry of Health, Labor and Welfare to secure vaccines for approximately 10,000 students.
In addition, to ensure that students can take face-to-face classes with peace of mind, we provide vaccinations
to employees of the Group and their families, instructors, parents of students, and partners who wish toreceive vaccinations. By vaccinating the largest number of students in the cram school industry, we arecooperating with the Japanese government's policy to reduce the burden of vaccination on local communities
and to accelerate the vaccination process. We will continue to provide a safe learning environment and highquality, genuine educational services, while striving for sustainable growth and increased corporate value.

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As for the future outlook, I will explain the business alliance between School TOMAS and KDDI Matomete
Office Corporation; the outline of the 3-company alliance between our company, Hulic Co., Ltd. and Konami
Sports Co., Ltd.; the capital and business alliance between our company and Hulic; and the business alliance
between Shingakai and Konami Sports.
First, I would like to explain the business alliance between School TOMAS and KDDI Matomete Office
Corporation. School TOMAS supports schools which are struggling to survive due to the declining birthrate inachieving advancement of students to the higher-level education by introducing TOMAS, a tutoring service,into schools that offer group instruction. On the other hand, KDDI Matomete Office Corporation provides
support for ICT environment development for schools based on its high quality network.
In this business alliance, the services of School TOMAS will be introduced to approximately 250 schools thatare using the services of KDDI Matomete Office Corporation, and the services of KDDI Matomete Office
Corporation will be introduced to 74 schools that are using School TOMAS, as a mutual introduction. We aretargeting about 300 schools, including existing and new contracted schools. By combining the advantages of
each, and by providing support for ICT education in Japanese schools, the number of schools introducing
School TOMAS is expected to increase at an accelerated rate.

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12Currently, the GIGA school initiative launched by the Ministry of Education, Culture, Sports, Science andTechnology to promote the use of ICT in education has been brought forward due to the spread of COVID-19,
and schools are being forced to deal with the situation. In this alliance, we will promote the ICT environment
development in schools and School TOMAS will provide ICT-based educational services.

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In addition, as announced in September last year, we have formed a business alliance with Hulic Co., Ltd., areal estate leasing company, and Konami Sports Co., Ltd., a sports service provider.
In addition to the real estate leasing business, Hulic is developing businesses in 3 fields of senior citizen health,tourism, and environment, and is aiming to develop and reorganize the early childhood education industry
market, recognizing the education business as a new field.
Konami Sports is a nationwide children's exercise school that supports the healthy growth of children's minds
and bodies through sports. We are promoting a strategy to lock in the age group of childcare with Shinga’s
Club Nursery, which is a daycare nursery business for children from the age of one. In this alliance, we will
share and develop our know-how in the early childhood education industry as a leading company in the
education industry. We are moving forward with the vision of locking in early childhood education in an
integrated manner and reorganizing the industry.

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Specifically, we are developing "Kodomo Depato,” a building specializing in education. Kodomo Depato is asingle building that offers not only educational services, but also children's clinics, cafes, and many otherservices.
From our company, each of our brands will be in the same location, from Shinga’s Club Nursery for the longhour care for gifted children to Shingakai for Early Childhood Education, Shinga's Club After-School Care forlong-hour care of Schoolchildren with academic advancement courses, TOMAS cram school, Medic TOMAS
specializing in medical school entrance exams, and Inter TOMAS 1-on-1 English conversation school. It is aconcept that children can go to the same place from the age of 1. For example, mothers can wait at a café
while their children attend Shingakai, or parents and children can take part in a parent-child sports programat Konami Sports after studying at TOMAS.
By providing the service in the same building, we believe that it will reduce the complexity of having to drop
off and pick up children at different locations and make it easier for them to come to the school. Currently,
the 3 companies are discussing the selection of locations and services to be introduced, and the plan is toopen the first building in 2022 and expand to 20 buildings in the Tokyo metropolitan area by 2029.

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Next, I would like to explain about our capital and business alliance with Hulic. Hulic, a real estate developer
listed on the first section of the Tokyo Stock Exchange, is engaged in the core business of real estate leasing,including offices in prime locations mainly in the 23 wards of Tokyo, and holds 11.62% of the Company's shares.
In addition to such capital tie-ups, we have also formed business alliances with Hulic, such as receiving
preferential introductions to Hulic's prime properties in front of stations. We have already received
introductions to and are in the process of selecting a number of excellent properties, which will accelerate
our aggressive development of new schools.

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Next, I would like to explain the business alliance between Shingakai and Konami Sports. Konami Sports
operates exercise schools for children, “Undojuku,” including swimming and gymnastics, at more than 140
Konami Sports Clubs nationwide.
A new brand, Konami Sports Shinga's Academy, will be developed in cooperation with Konami Sports andShinga's Club After-School Care of Shingakai. The addition of Shinga's Club After-School Care to the facilities
of Konami Sports will enable us to meet the needs of parents who send their children to Konami Sports, whowant their athletic children to also study well, and parents who send their children to Shinga's Club AfterSchool Care, who want their children to be healthy and able to play sports as well as study.

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17Over the next 3 years, we plan to expand to about 20 Konami Sports facilities in the Tokyo metropolitan area,
including Shinagawa, Yokohama and Shinyurigaoka, and by 2024, we plan to double the number of Shinga's
Club After-school Care buildings from the current 15 to 35.
Last but not least, vaccination against COVID-19 is underway in Japan, and we have conducted vaccination at
our workplaces, but there are still concerns about the situation, such as the fact that COVID-19 is not yet
under control. We believe that our mission is to protect the future and learning of children by providing a safe
environment for them to learn. We will continue to thoroughly implement our own infection prevention
measures and strive to provide a better learning environment for children.
Thank you very much for your attention.

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Question & Answer

Kume: Now, we will have a question and answer session.
Hirano: “First of all, Shingakai has a waiting list for its Shinga’s Club, and you are planning to open 20 Shinga’s
Club After-school Care in the next 3 years. Please let me know the number of students currently on the waiting
list and the growth rate in sales of Shingakai if 20 schools are opened.”
Kume: I can't answer right now about where the waiting list is, but I can tell you the growth rate of Shingakai'ssales if we open 20 schools. We plan to have about 100 students per school, which is roughly JPY100 million
per year.
Therefore, we are planning to spend JPY2 billion. Currently, Shingakai's sales are about JPY5 billion. The salesof Shinga's Club After-school Care alone will increase by about JPY2 billion, which means that Shingakai's sales
will exceed JPY7 billion for more than 3 years, including others. In a nutshell, this is how we see it. Basically,
we are expecting sales of about JPY100 million per school if 20 schools are opened. Simply put. The numberof students is expected to be about 100.
I hope this answers [your question]. Thanks.
Hirano: Yes. Thank you. Next: “The summer vacation will begin under the declared state of emergency, and I
was wondering how much growth each company expects in the number of students for the summer classes.”
Recruitment for the summer classes have already started or is nearing the end, and we have confirmed thatthe number of applications for the class is increasing in line with the increase in the number of students
enrolled. Therefore, we have been able to secure a steady number of students for summer classes. I hope you
understand that all companies tend to be in the same situation. It means that the declaration of a state of
emergency has had little effect on the situation.
That's all. If you have any other questions, please let me know.
Kume: Since there doesn't seem to be any question at the moment, I'd like to talk a little bit about today's
upward revision of earnings. Q1 was until May, so after Q1 was closed, the results for June were closed earlier.
Looking at them, we announced today that the ordinary income will be JPY2.8 billion, operating income will
be JPY2.8 billion, and net income will be JPY1.9 billion. Since it had been expected to be rather solid, we
decided that it was safe to release it.
I would like to emphasize here that this is a very solid estimation. Therefore, we will continue to monitor thesales results at the end of Q2, or rather the interim period, after the summer classes are over, and we may beable to talk more about it. We would like to make various announcements again at that time.
Then, of course, when sales increase and profits rise, the profit of JPY1.9 billion will be in line with the record
high profit of the year before last. However, when the record high profit was recorded in the year before last,
it was due to the effect of the merger of subsidiaries and other factors of JPY150 million or JPY200 million.
This was the first time for us to simply go with sales. At the stage of JPY1.7 billion, we have announced adividend of JPY12, and we will consider this depending on the growth of net income, so we will make anannouncement as soon as it is decided.
I would be grateful if you would continue to pay attention to this and other issues. Thanks.
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Hirano: There being no further questions, I would like to close the Q1 results briefing for the fiscal year ending
February 2022. Thank you very much for your time today.
Kume: Thank you very much.
[END]______________
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