Summary of Consolidated Financial Results
for the Nine Months Ended May 31, 2022

Summary of Consolidated Financial Results
for the Nine Months Ended May 31, 2022
(Japanese GAAP)

July 8, 2022
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, Executive Officer, General Manager of Corporate Planning Department
Telephone:+81-3-5860-2111
Scheduled date to file quarterly securities report:
July11, 2022
Scheduled date to commencement dividend payment:
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results briefing:
None(Amounts are rounded down to the nearest million yen.)

1. Consolidated financial results for the Nine months ended May 31, 2022 (from September 1, 2021 to May 31, 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%Nine months ended
May 31, 2022

13,8842.8647

140.0

721

94.8

753

12.1

May 31, 2021

13,505

1.0

269

620.2

370

103.6672－(Note) Comprehensive income: Nine months ended May 31, 2022: ¥888 million [32.6 %]Nine months ended May 31, 2021: ¥670 million [114.2 %]Basic earnings pershare
Nine months ended

Diluted earnings
per share

Yen

Yen

May 31, 2022

30.04

－May 31, 2021

26.81－(2) Consolidated financial position
Total assets
As ofMay 31, 2022

Net assets

Equity-to-asset ratio

Millions of yenMillions of yen%

14,591

10,36971.1

10,025

68.4

August 31, 2021
14,649(Reference) Equity: As of May 31, 2022:¥10,369 million
As of August 31, 2021: ¥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)Fiscal year-end－(Note) Revision of dividend forecast in the current quarter:TotalNone

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 parent
per 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:-1-NoneSummary of Consolidated Financial Results
for the Nine Months Ended May 31, 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
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:

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 May 31, 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 May 31, 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)
Nine months ended May 31, 2022

25,083,542 shares

Nine months ended May 31, 2021

25,084,546 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 Nine Months Ended May 31, 2022（Reference）Trend of numbers of Meiko Gijuku schools and registered students and system-wide sales
Nine months ended May
31, 2021
From Sep. 1, 2020
to May 31, 2021
Operating
YOY
results
comparison

TermFiscal Period
Number of Meiko Gijuku directly operated schools (MNJ)

206(37)217

11Number of Meiko Gijuku directly operated schools (MAXIS)

93(1)

95

2

Number of Meiko Gijuku directly operated schools (KLINE)

41(1)

41-

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

42-

42-

Number of Meiko Gijuku directly operated schools (One link)

20

20

21

1

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

15

15

Subtotal number of Meiko Gijuku directly operated schools402(19)431

29

Number of Meiko Gijuku franchised schools

1,370

(80)

1,336

(34)

Total number of Meiko Gijuku schools

1,772

(99)

1,767

(5)

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

13,109588

13,765656

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

6,060

654

5,797(263)

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

2,561

344

2,591

30

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

1,900

189

1,955

55

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

759

759

811

52

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

955

955

Subtotal mumber of registered students of Meiko Gijuku directly
operated schools

24,3892,534

25,874

1,485

Number of registered students of Meiko Gijuku franchised
Schools

64,744409

60,655(4,089)Total number of registered students of Meiko Gijuku schools

89,133

2,943

86,529(2,604)

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

8,041

829

8,486

445

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

3,162

(101)

3,230

67

Sales from Japanese language schools(Millions of yen)

665

(304)

552

(113)

Sales from others(Millions of yen)

1,635

(282)

1,615

(20)

Total Sales(Millions of yen)

13,505139

13,884378

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

8,041

829

8,486

445

18,509(893)

17,373(1,135)26,550(63)

25,860(690)

System-wide sales from Meiko Gijuku franchised schools
Total system-wide sales from Meiko Gijuku schools *4*

Nine months ended May
31, 2022
From Sep. 1, 2021
to May 31, 2022
Operating
YOY
results
comparison

123
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.
-3-Summary of Consolidated Financial Results
for the Nine Months Ended May 31, 2022

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 - trade, and contract assets
Securities
MerchandiseWork in process
Supplies
Advance payments to suppliers
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets

As of May 31, 2022

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

8,339－618－
95
3179297231(31)1,145(676)

1,341(770)525310,441

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net

469

Tools, furniture and fixtures
Accumulated depreciation

375(322)

Tools, furniture and fixtures, net
Land

0Leased assets
Accumulated depreciation

10(1)Leased assets, net

8

9,580

570

390(337)4935(22)
12

Total property, plant and equipment

531

Intangible assets
Goodwill
Software
Software in progress
Telephone subscription right

203
190
44455
188
34

Total intangible assets

402651

Investments and other assetsInvestment securities
Long-term prepaid expenses
Deferred tax assets
Leasehold and guarantee deposits
Long-term time deposits
Other

2,022
42
226
942
－40

2,362
39
180
944
100
45

Total investments and other assets

3,274

3,672

Total non-current assets

4,207

5,010

Total assets

14,64914,591-4-685

Summary of Consolidated Financial Results
for the Nine Months Ended May 31, 2022

(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
OtherTotal 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 capitalCapital 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 May 31, 2022

119
102
1,139
427
331
1,242－
154
404
51
3,876

117
140835
299
145
－
1,157
1
122
523
58
3,401－
111
1134104
117
18
7339
1747
4,624

56
121
2134
84
117
10
11
360
18204,221

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

972
909
10,738(2,779)
9,841

377
15
392
10,025
14,649509
17527
10,36914,591

Summary of Consolidated Financial Results
for the Nine Months Ended May 31, 2022

(2) Quarterly Consolidated statements of profit or loss and comprehensive income
Quarterly Consolidated statements of profit or loss

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 incomeReversal 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
Commission expenses
Rental expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of property, plant and equipment
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
Loss on withdrawal from business
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-6-(Millions of yen)

For the Nine months ended
May 31, 2021
(from Sep. 1, 2020
to May 31, 2021)

For the Nine months ended
May 31, 2022
(from Sep. 1, 2021
to May 31, 2022)

13,505
10,262
3,242
2,972
269

13,884
10,631
3,252
2,605
647

97－
14
16
51
14
113

710
18
10
3
922
82

14－
34
13
370

0－
61
1
9721

531
164－696－－623
623

928－
－
38
1,028455(99)
355
672
672

0－
24
3
28
1,315
567(4)
562
753
753

Summary of Consolidated Financial Results
for the Nine Months Ended May 31, 2022

Quarterly consolidated statements of comprehensive income
For the Nine months
ended May 31, 2021
(from Sep. 1, 2020 to May31, 2021)

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
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent-7-(Millions of yen)

For the Nine months
ended May 31, 2022
(from Sep. 1, 2021 to May31, 2022)

672

753

(5)

132

3
(2)
670

2
135888670888

Summary of Consolidated Financial Results
for the Nine Months Ended May 31, 2022

Segment Information
Ⅰ Nine months ended May 31, 2021 (September 1, 2020 to May 31, 2021)
1．Information related to net sales, profit or loss for each reportable segment.

(Millions of yen)

Reportable segment
Meiko Gijuku
directly operatedschools

Meiko Gijukufranchised
schools

8,041

3,162

Japaneselanguageschools

Total

Others*Total

Net sales
external sales

608

665

11,8691,635

13,505

3612

32644

Inter-segment sales andtransfers－Total

8,041

3,771

668

12,481

1,668

14,149

597

855

(125)

1,327(179)

1,147

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

1,327

Profit (Loss) for “Others” category(179)

Corporate expenses*(868)Other Adjustment Amounts(9)

Operating profit reported on quarterly statements of income

269(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 Nine Months Ended May 31, 2022

Ⅱ Nine months ended May 31, 2022 (September 1, 2021 to May 31, 2022)
1．Information about Segment Sales and Income (Loss)(Millions of yen)
Reportable segment

Meiko Gijuku
directly operated
schools

Meiko Gijuku
franchisedschools

550

1,226－1,776

941

2,718

7,936

2,004

552

10,492673

11,166

8,486

3,230

552

12,268

1,615

13,884－

－－－－

－

8,486

3,230

552

12,268

1,615

13,884

－

655

－

655

4

659

8,486

3,885

552

12,924

1,619

14,543

606

1,233

(172)

1,667

(132)

1,534

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)

Amount1,667

Reportable segment total(132)

Profit (loss) for “Others” category
Corporate expenses*(887)

Operating profit reported on quarterly statements of income

647(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.
(Significant changes in the amount of goodwill)
Effective from the third quarter of the current fiscal year, the Company acquired all of the outstanding shares of Simple Co. Ltd.
was included in the scope of consolidation.
As a result, goodwill increased by 287 million yen in the "Other" 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 third quarterof the fiscal year under review were 5 million yen higher than they would have been under the previous method. Net sales andsegment income of "Other" increased by 12 million yen each.

-9-