Summary of Consolidated Financial Results for the Six Months Ended February 29, 2024

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

Summary of Consolidated Financial Results for the Six Months Ended February 29, 2024
(Japanese GAAP)
April 11, 2024
Company name:
MEIKO NETWORK JAPAN CO., LTD.
Listing:
Tokyo
Securities code:
4668（URL：https://www.meikonet.co.jp）
Representative:
Kazuhito Yamashita, President & Representative Director
Inquiries:
Kouyuki Sakamoto, Senior Executive Officer, General Manager of Corporate Planning Department
Telephone:+81-3-5860-2111
Scheduled date to file quarterly securities report:
April 12, 2024
Scheduled date to commencement dividend payment:
May 8, 2024
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 29, 2024 (from September 1, 2023 to February
29, 2024)(1) Consolidated operating results (cumulative)(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions ofMillions ofMillions ofMillions of
Six months ended
%
%
%
%
yen
yen
yen
yen
February 29, 2024
11,148
6.7
845
(3.5)
899 (10.0)
519 (21.0)
February 28, 2023
10,4485.3
876 (30.8)
1,000 (24.6)(Note) Comprehensive income: Six months ended February 29, 2024: ¥701 million [(5.3) %]Six months ended February 28, 2023: ¥740 million [(42.4) %]Six months ended
February 29, 2024
February 28, 2023

Basic earnings per
share
Yen
20.62
26.20

Total assets
As ofMillions of yen
February 29, 2024
16,372
August 31, 2023
15,811(Reference) Equity: As of February 29, 2024:¥11,557 million
As of August 31, 2023:¥11,203 million

First quarterend
Yen(46.4)

Diluted earnings
per shareYen-(2) Consolidated financial position

2. Cash Dividends

657

Net assets
Millions of yen
11,557
11,203Equity-to-asset ratio

Annual dividends per share
SecondThird quarterFiscal year-end
quarter-end
end
Yen
Yen
Yen

Fiscal year ended August
12.00
12.00
31, 2023
Fiscal year ending August
22.00
31, 2024
Fiscal year ending August
12.00
31, 2024 (Forecast)(Note) Revision of dividend forecast in the current quarter:
None
Details of the dividend at the end of the second quarter of the fiscal year ending August 31, 2024.
Ordinary dividend: 12.00 yen Special dividend: 10.00 yen (40th Anniversary Commemorative Dividend)

1

%
70.6
70.9

Total
Yen
24.00

34.00

Summary of Consolidated Financial Results for the Six Months Ended February 29, 2024

3. Consolidated Financial Results Forecast for Fiscal Year Ending August 31, 2024 (from September 1, 2023 to August
31, 2024)(% indicates year-on-year changes)
Basic
Profit attributable to
Net sales
Operating profit
Ordinary profit
earnings
owners of parent
per share
Millions ofyenMillions ofyen%

Full-year
22,000
5.4
1,200
12.7
1,250
(Note) Revision to the financial results forecast announced most recently:

0.6
None

%

Millions ofyen%Millions of
yen

%

yen

820

1.4

32.53

*Notes:(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change inthe scope of consolidation): 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: None
2) Changes in accounting policies due to other reasons:None3) Changes in accounting estimates:
None4) 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 29, 2024
27,803,600 shares
As of August 31, 2023
27,803,600 shares(ii)

Number of treasury shares at the end of the period
As of February 29, 2024
As of August 31, 2023

2,592,148 shares
2,599,108 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Six months ended February 29, 2024
Six months ended February 28, 2023

25,207,437 shares
25,106,488 shares

Note: Treasury stock for the six months ended February 29, 2024, includes the Company's shares held by the "Stock
Granting Trust for Officers." (141,000 shares of treasury stock at the end of the fiscal year) Treasury stock for the fiscal
year ended August 31, 2023, includes the Company's shares held by the "Stock Granting Trust for Officers." (141,000
shares of treasury stock at the end of the fiscal year)* 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.

2

Summary of Consolidated Financial Results for the Six Months Ended February 29, 2024

（Reference）Trend of numbers of Meiko Gijuku schools and registered students and system-wide sales
Six months ended
February 28, 2023
From Sep. 1, 2022
to Feb. 28, 2023
Operating
YOY
results
comparison

TermFiscal Period

Six months ended
February 29, 2024
From Sep. 1, 2023
to Feb. 29, 2024
Operating
YOY
results comparison

Number of Meiko Gijuku directly operated schools

229

15

253

24

Number of Meiko Gijuku directly operated schools (MAXIS)

95

-

97

2

Number of Meiko Gijuku directly operated schools (KLINE)

41

-

40

(1)

Number of Meiko Gijuku directly operated schools(TOMONI)

42

-

42

-

Number of Meiko Gijuku directly operated schools (One link)

22

1

22

-

Number of Meiko Gijuku directly operated schools (Cooth)

16

1

20

4

Number of Meiko Gijuku directly operated schools

445

17

474

29

Number of Meiko Gijuku franchised schools

1,336

(14)

1,278

(58)

Total number of Meiko Gijuku schools

1,781

3

1,752

(29)

15,896

1,079

16,997

1,101

6,609

(135)

6,365

(244)

2,736

-

2,665

(71)

2,156

(12)

2,054

(102)

909

10

927

18

1,169

92

1,210

41

29,475

1,034

30,218743

67,355(3,886)

63,197(4,158)96,830(2,852)

93,415(3,415)(Millions of yen)

6,407

272

6,730

322

(Millions of yen)

2,123

(157)

2,077

(46)

Sales from Japanese language schools(Millions of yen)

539

209

667

127

Sales from others(Millions of yen)

1,378

197

1,674

295

Total Sales(Millions of yen)

10,448521

11,148699

Sales from Meiko Gijuku directly operated schools

6,407

272

6,730

322

System-wide sales from Meiko Gijuku franchised schools

12,008(785)

11,562(445)

Total system-wide sales from Meiko Gijuku schools *2

18,415(513)

18,292(122)

Number of registered students of Meiko Gijuku directly
operated schools
Number of registered students of Meiko Gijuku directly
operated schools (MAXIS)
Number of registered students of Meiko Gijuku directly
operated schools (KLINE)
Number of registered students of Meiko Gijuku directly
operated schools (TOMONI)
Number of registered students of Meiko Gijuku directly
operated schools (One link)umber of registered students of Meiko Gijuku directly
operated schools (Cooth)Number of registered students of Meiko Gijuku directly
operated schools
Number of registered students of Meiko Gijuku franchised
Schools
Total number of registered students of Meiko Gijuku schools
Sales from Meiko Gijuku directly operated
schools
Sales from Meiko Gijuku franchised schools*1(Millions of yen)
(Millions of yen)

(Millions of yen )*1
2

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.

3Summary of Consolidated Financial Results for the Six Months Ended February 29, 2024

Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated statement of Balance Sheets(Millions of yen)
As of August 31, 2023
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
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

4

As of February 29, 2024

8,472
1,038
100
123
13
10
28
357
309
(34)

8,597
1,016
100
134
7
16
44
382
514
(42)

10,421

10,772

1,416
(833)

1,487
(863)

582
415
(359)
55
48
19
(13)
6
693

623
440
(367)
73
48
41
(14)
26
772

292
163
20
4
482

257
202
28
4
492

2,809
26
98
1,022
100
158
4,214
5,390

2,985
26
127
1,048
100
47
4,335
5,600

15,811

16,372

Summary of Consolidated Financial Results for the Six Months Ended February 29, 2024

(Millions of yen)
As of August 31, 2023
Liabilities
Current liabilities
Accounts payable - trade
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Contract liabilities
Lease liabilities
Deposits received
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Retirement benefit liability
Provision for share awards for directors (and otherofficers)
Long-term accounts payable-other to employees
Long-term accounts payable-other to officers
Deferred tax liabilities
Lease liabilities
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

5

As of February 29, 2024

157
138
1,204
166
231
1,218
2
132
445
62
3,759

276
129
949
484
273
1,050
2
153
435
88
3,844

135

134

36

46

79
116
67
4
406
1
848
4,607

79
116
140
27
424
1
970
4,815

972
909
11,184(2,707)
10,358972
909
11,348(2,700)10,530815
29
844
11,203
15,811

996
29
1,026
11,557
16,372

Summary of Consolidated Financial Results for the Six Months Ended February 29, 2024

(2) Quarterly Consolidated statements of profit or loss and comprehensive income
Quarterly Consolidated statements of profit or loss
(Millions of yen)Six months ended
February 28, 2023
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
methodGain on investments in investment partnerships
Rental income
Reversal of allowance for doubtful accounts
Subsidy income
Penalty income
Other
Total non-operating income
Non-operating expenses
Loss on investments in investment partnerships
Rental expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on change in equity
Total extraordinary income
Extraordinary losses
Loss on change in equity
Loss on sale of non-current assets
Loss on retirement of non-current assets
Loss on store closings
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

6

Six months ended
February 29, 2024

10,448
7,755
2,693
1,816
876

11,148
8,369
2,778
1,932
845

5
10

5
12

51

7

8
5
0
50
131

0
8
4
14
9
61

5
1
0
8
1,000

0
0
6
7
899

0
149
150

0
32
5
38

9
0
0
10
1,140
417
64
482

9
4
14
923
438
(34)
404

657
657

519
519

Summary of Consolidated Financial Results for the Six Months Ended February 29, 2024

Quarterly consolidated statements of comprehensive income(Millions of yen)Six months ended
February 28, 2023

Six months ended
February 29, 2024

ProfitOther 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

657

519

80

181

2

(0)

82

181

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent

740

701

740

701

(3) Notes to Quarterly Consolidated Financial Statements(Notes on premise of a going concern)
Not applicable.
(Notes on significant changes in the amount of shareholders' equity)
Six months ended February 29, 2024 (from September 1, 2023 to February 29, 2024)
Not applicable.

7Summary of Consolidated Financial Results for the Six Months Ended February 29, 2024

Segment Information
Ⅰ Six months ended February 28, 2023 (from September 1, 2022 to February 28, 2023)
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
franchised
schools

328

744

-

1,072

929

2,002

6,078

1,379

539

7,997

448

8,446

6,407

2,123

539

9,070

1,378

10,448

-

-

-

-

-

-

6,407

2,123

539

9,070

1,378

10,448

-

463

-

463

149

612

6,407

2,586

539

9,533

1,527

11,061

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 contracts withcustomers
Other income
Sales to external customers
Inter-segment sales andtransfers
Total

Japaneselanguageschools

Others*

Total

Total

Segment profit (loss)
754
773
53
1,580
(87)
1,492
(Note)* “Others” consists of the operating segments not included in reportable segments. It includes Kids business(Afterschool), Jiritsugausyu RED, MEIKO Kids e business, HR solution business, and consolidated
subsidiaries Koto & Company and Simple Inc.
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)(Millions of yen)
Profit (Loss)

AmountReportable segment total

1,580

Profit (Loss) for “Others” category(87)

Corporate expenses*(616)

Operating profit reported on quarterly statements of income

876(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 on impairment loss on fixed assets and goodwill by reportable Segment
Not applicable.

8Summary of Consolidated Financial Results for the Six Months Ended February 29, 2024

Ⅱ Six months ended February 29, 2024 (September 1, 2023 to February 29, 2024)
1．Information about Segment Sales and Income (Loss)(Millions of yen)
Reportable segment

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 sales andtransfers
Total
Segment profit (loss)

Meiko Gijuku
directly
operated
schools

Meiko Gijuku
franchised
schools

357

755

-

1,113

1,114

2,227

6,372

1,321

667

8,360

559

8,920

6,730

2,077

667

9,474

1,674

11,148

-

-

-

-

-

-

6,730

2,077

667

9,474

1,674

11,148

-

468

-

468

192

660

6,730

2,545

667

9,942

1,866

11,808

817

651

111

1,580

(52)

1,527

Japaneselanguageschools

Others*

Total

Total

(Note)* “Others” consists of the operating segments not included in reportable segments. It includes Kids business(Afterschool), Jiritsugakusyu RED, Meiko Kids e business, HR solution business, and consolidated
subsidiaries Koto & Company and Simple Inc.
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 to adjustment
of difference)(Millions of Yen)
Profit (Loss)
AmountReportable segment total

1,580

Profit (loss) for “Others” category(52)

Corporate expenses*

(681)

845
Operating profit reported on quarterly statements of income(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
Meiko Career Partners Co., Ltd. and Reverse Inc., which were non-consolidated subsidiaries until the previous fiscal
year, were included in the scope of consolidation from the current fiscal year due to their increased importance.
As a result, the increase in goodwill in the "Other" segment was 29 million.

9