Summary of Consolidated Financial Results for the Six Months Ended February 28, 2023

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 28, 2023
(Japanese GAAP)
April 13, 2023
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:
April 14, 2023
Scheduled date to commencement dividend payment:
May 9, 2023
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, 2023 (from September 1, 2022 to February
28, 2023)(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 28, 2023
10,4485.3
876 (30.8)
1,000 (24.6)
657 (46.4)
February 28, 2022
9,927
1.9
1,265
36.1
1,326
30.6
(Note) Comprehensive income: Six months ended February 28, 2023: ¥740 million [(42.4) %]Six months ended February 28, 2022: ¥1,285 million [83.5 %]Six months ended
February 28, 2023
February 28, 2022

Basic earnings per
share
Yen
26.20
48.94

Total assets
Net assets
As ofMillions of yen
Millions of yen
February 28, 2023
15,275
11,125
August 31, 2022
15,43910,606(Reference) Equity: As of February 28, 2023:¥11,125 million
As of August 31, 2022:¥10,606 million

First
quarter-end
Yen

84.2

Diluted earnings
per shareYen-(2) Consolidated financial position

2. Cash Dividends

1,227

Equity-to-asset ratio
%
72.8
68.7

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

Fiscal year ended August
11.00
31, 2022
Fiscal year ending August
12.00
31, 2023
Fiscal year ending August
31, 2023 (Forecast)(Note) Revision of dividend forecast in the current quarter:
None

1

Total
Yen

-

11.00

22.00

-

12.00

24.00

Summary of Consolidated Financial Results for the Six Months Ended February 28, 2023

3. Consolidated Financial Results Forecast for Fiscal Year Ending August 31, 2023 (from September 1, 2022 toAugust 31, 2023)(% indicates year-on-year changes)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Millions ofyenMillions ofyen%

Full-year
21,000
6.7
1,300
11.2
1,350
(Note) Revision to the financial results forecast announced most recently:

4.7
None

%

Millions ofyen%Millions of
yen

%

yen

800

(17.9)

31.89*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: Yes
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 28, 2023
27,803,600 shares
As of August 31, 2022
27,803,600 shares(ii)

Number of treasury shares at the end of the period
As of February 28, 2023
As of August 31, 2022

2,620,858 shares
2,720,058 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Six months ended February 28, 2023
Six months ended February 28, 2022

25,106,488 shares
25,083,542 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.

2

Summary of Consolidated Financial Results for the Six Months Ended February 28, 2023

（Reference）Trend of numbers of Meiko Gijuku schools and registered students and system-wide sales
Six months ended
February 28, 2022
From Sep. 1, 2021
to Feb. 28, 2022
Operating
YOY
results
comparison

TermFiscal Period

Six months ended
February 28, 2023
From Sep. 1, 2022
to Feb. 28, 2023
Operating
YOY
results comparison

Number of Meiko Gijuku directly operated schools

214

6

229

15

Number of Meiko Gijuku directly operated schools (MAXIS)

95

2

95

-

Number of Meiko Gijuku directly operated schools (KLINE)

41

-

41

-

Number of Meiko Gijuku directly operated schools(TOMONI)

42

-

42

-

Number of Meiko Gijuku directly operated schools (One link)

21

-

22

1

Number of Meiko Gijuku directly operated schools (Cooth)

15

15

16

1

Number of Meiko Gijuku directly operated schools

428

23

445

17

Number of Meiko Gijuku franchised schools

1,350

(54)

1,336

(14)

Total number of Meiko Gijuku schools

1,778

(31)

1,781

3

14,817502

15,896

1,079

6,744

(80)

6,609

(135)

2,736

42

2,736

-

2,168

9

2,156

(12)

899

67

909

10

1,077

1,077

1,169

92

28,441

1,617

29,475

1,034

71,241(4,694)67,355(3,886)

99,682(3,077)

96,830(2,852)(Millions of yen)

6,134

257

6,407

272

(Millions of yen)

2,281

121

2,123

(157)

Sales from Japanese language schools(Millions of yen)

330

(144)

539

209

Sales from others(Millions of yen)

1,180

(51)

1,378

197

Total Sales(Millions of yen)

9,927

182

10,448521

Sales from Meiko Gijuku directly operated schools

6,134

257

6,407

272

System-wide sales from Meiko Gijuku franchised schools

12,793(630)

12,008(785)

Total system-wide sales from Meiko Gijuku schools *2

18,928(373)

18,415(513)

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 28, 2023

Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated statement of Balance Sheets(Millions of yen)
As of August 31, 2022

As of February 28, 2023

8,755

8,331

Accounts receivable - trade

977

979

Merchandise

95

114

Work in process

137Supplies

713Advance payments to suppliers

16

16

Prepaid expenses

329

302

Other

243

162

Allowance for doubtful accounts

(33)

(38)

AssetsCurrent assets
Cash and deposits

Total current assets

10,405

9,890

1,290

1,375

(780)

(807)

(340)

(347)

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

509

Tools, furniture and fixtures

394

Accumulated depreciation
Tools, furniture and fixtures, net

568
406

53

58

49

49

35

19

(23)

(11)

Goodwill

422

357

Software

180

198

4

4

607

560

2,452

2,698

Long-term prepaid expenses

22

31

Deferred tax assets

233

132

Leasehold and guarantee deposits

949

1,019

Long-term time deposits

100

100

Other

44

159

3,801

4,141

5,033

5,385

15,43915,275Land
Leased assets
Accumulated depreciation
Leased assets, net

11

Total property, plant and equipment

624

7

683

Intangible assets

Telephone subscription right
Total intangible assets
Investments and other assets
Investment securities

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

4Summary of Consolidated Financial Results for the Six Months Ended February 28, 2023

(Millions of yen)
As of August 31, 2022

As of February 28, 2023

Accounts payable - trade

128

238

Accounts payable - other

231

198

1,179

961

570

458

Liabilities
Current liabilities

Accrued expenses
Income taxes payable
Accrued consumption taxes

195

233

1,148

713

Lease liabilities

1

1

Deposits received

85

137

Provision for bonuses

434

397

Other

44

22

4,019

3,363

Retirement benefit liability
Provision for share awards for directors (and otherofficers)
Provision for share awards

121

127

26

35

62

12

Long-term accounts payable-other to employees

8479Long-term accounts payable-other to officers

117

116

Deferred tax liabilities

98

Lease liabilities

10

5

Asset retirement obligations

380

400

Long-term guarantee deposits

1

1

Total non-current liabilities

813

787

4,833

4,150

Share capital

972

972

Capital surplus

909

909

Retained earnings

10,95911,337

Treasury shares(2,779)10,062(2,720)

Valuation difference on available-for-sale securities

521

602

Foreign currency translation adjustment

21

24

Total accumulated other comprehensive income

543

626

10,606

11,125

15,43915,275Contract liabilities

Total current liabilities
Non-current liabilities

Total liabilities
Net assets
Shareholders' equity

Total shareholders' equity
Accumulated other comprehensive income

Total net assets
Total liabilities and net assets

5

10,498

Summary of Consolidated Financial Results for the Six Months Ended February 28, 2023

(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, 2022

Six months ended
February 28, 2023

Net sales

9,927

10,448

Cost of sales

7,033

7,755

Gross profit

2,894

2,693

Selling, general and administrative expenses

1,628

1,816

Operating profit

1,265

876

Interest income

55Dividend income
Share of profit of entities accounted for using equity
methodRental income

10

10

18

51

7

8

Reversal of allowance for doubtful accounts

2

5

Subsidy income

5

0

Other

12

50

Total non-operating income

62

131

Interest expenses

0-

Loss on investments in investment partnerships-

5

Rental expenses

0

1

Other

0

0

Total non-operating expenses

1

8

1,326

1,000

Gain on sale of property, plant and equipment-

0

Gain on sale of investment securities-

149

Gain on sale of shares of subsidiaries and associates

623-

Total extraordinary income

623

150

Loss on change in equity-

9

Loss on sale of non-current assets-

0Loss on retirement of property, plant and equipment

00Extra retirement payments

24

-

Other

3

-

Total extraordinary losses

28

10

1,921

1,140

Income taxes - current

675

417

Income taxes - deferred

18

64

Total income taxes

694

482

Profit1,227

657

Profit attributable to owners of parent

1,227

657

Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses

Profit before income taxes

6Summary of Consolidated Financial Results for the Six Months Ended February 28, 2023

Quarterly consolidated statements of comprehensive income(Millions of yen)Six months ended
February 28, 2022
ProfitSix months ended
February 28, 2023

1,227

657

58

80

(0)

2

58

82

1,285

740

1,285

740

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
Comprehensive income attributable toComprehensive income attributable to owners of parent

7

Summary of Consolidated Financial Results for the Six Months Ended February 28, 2023

(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 28, 2023 (from September 1, 2022 to February 28, 2023)
Not applicable.
(Change in accounting policy)(Application of Accounting Standard for Measurement of Fair Value)
In accordance with the transitional treatment prescribed in Paragraph 27-2 of the Guidance on Accounting Standard
for Measurement of Fair Value, the new accounting policy prescribed by the Guidance on Accounting Standard for
Measurement of Fair Value is to be applied prospectively. There is no impact on the quarterly consolidated financial
statements.

8

Summary of Consolidated Financial Results for the Six Months Ended February 28, 2023

Segment Information
Ⅰ Six months ended February 28, 2022 (from September 1, 2021 to February 28, 2022)
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

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

10,386

Net sales
Goods or services thatare transferred at apoint in time
Goods or services thatare transferred over a
fixed period of time
Revenue from contracts
with customers
Other income
Salestoexternalcustomers
Inter-segment sales andtransfers
Total

Japaneselanguageschools

Others*

Total

Total

Segment profit (loss)
861
1,042
(105)
1,798
61
1,859
(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, HR
solution business and consolidated subsidiaries Koto & Company.
2. Difference between the total of the rportable 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

1,798

Profit (Loss) for “Others” category

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 not attributable to the reportable segment.
3. Information on impairment loss on fixed assets and goodwill by reportable Segment(Significant changes in the amount of goodwill)
From the second quarter of the current fiscal year, the Company acquired all outstanding shares of CoothCorporation Co., Ltd, which is now included in the scope of consolidation.
As a result, the amount of increase in goodwill in the "Meiko Gijuku directly operated schools" segment was 23 millionyen.

9Summary of Consolidated Financial Results for the Six Months Ended February 28, 2023

Ⅱ Six months ended February 28, 2023 (September 1, 2022 to February 28, 2023)
1．Information about Segment Sales and Income (Loss)(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

754

773

53

1,580

(87)

1,492

Net sales
Goods or services thatare transferred at a point
in timeGoods or services thatare transferred over a
fixed period of time
Revenue from a contract
with a customer
Other income
Salestoexternalcustomers
Intersegment sales andtransfers
Total
Segment profit (loss)

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 toadjustment of difference)(Millions of Yen)
Profit (Loss)
AmountReportable segment total

1,580

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

Corporate expenses*

(616)

876
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 on impairment loss on fixed assets and goodwill by reportable Segment(Significant changes in the amount of goodwill)
Not applicable.

10