Summary of Consolidated Financial Results for the Nine Months Ended May 31, 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 Nine Months Ended May 31, 2023
(Japanese GAAP)

July 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 DirectorInquiries:
Kouyuki Sakamoto, Executive Officer, General Manager of Corporate Planning Department
Telephone:+81-3-5860-2111
Scheduled date to file quarterly securities report:
July 14, 2023
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, 2023 (from September 1, 2022 to May 31, 2023)(1) Consolidated operating results (cumulative)(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions ofMillions ofMillions ofMillions ofNine months ended%%%%yenyenyenyen
May 31, 2023
14,9247.5
352 (45.5)
491 (31.8)350 (53.4)
May 31, 2022
13,8842.8
647 140.0
721
94.8(Note) Comprehensive income: Nine months ended May 31, 2023: ¥524 million [(41.0) %]Nine months ended May 31, 2022: ¥888 million [32.6 %]Nine months ended
May 31, 2023
May 31, 2022Basic earnings pershare
Yen
13.96
30.04

Total assets
Net assets
As ofMillions of yen
Millions of yen
May 31, 2023
14,672
10,617
August 31, 2022
15,43910,606(Reference) Equity: As of May 31, 2023:¥10,617 million
As of August 31, 2022:¥10,606 million

First
quarter-end
Yen

12.1

Diluted earnings
per share
Yen-(2) Consolidated financial position

2. Cash Dividends

753

Equity-to-asset ratio%
72.4
68.7

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

Fiscal year ended August11.00
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:
None1-Total
Yen

11.00

22.00

12.00

24.00

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

Millions 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 ofyen%

yen800(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 restatement1) Changes in accounting policies caused by revision of accounting standards: Yes
None2) Changes in accounting policies due to other reasons: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, 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 May 31, 2023
As of August 31, 2022

2,599,058 shares
2,720,058 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Nine months ended May 31, 2023
Nine months ended May 31, 2022

25,133,347 shares
25,083,542 shares*Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or anaudit 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 thinksreasonable. 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, 2023

（Reference）Trend of numbers of Meiko Gijuku schools and registered students and system-wide sales
Nine months ended May31, 2022
From Sep. 1, 2021
to May 31, 2022
Operating
YOY
results
comparison

TermFiscal Period

Nine months ended
May 31, 2023
From Sep. 1, 2022
to May 31, 2023
Operating
YOY
results comparison

Number of Meiko Gijuku directly operated schools

217

11233

16Number of Meiko Gijuku directly operated schools (MAXIS)

95

297

2

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

1

21

-

Number of Meiko Gijuku directly operated schools (Cooth)

15

15

18

3

Number of Meiko Gijuku directly operated schools

431

29452

21

Number of Meiko Gijuku franchised schools

1,336(34)1,304(32)

Total number of Meiko Gijuku schools

1,767

(5)

1,756(11)13,765656

14,703938

5,797(263)

5,778

(19)

2,591

30

2,585

(6)

1,955

55

1,831

(124)

811

52

776

(35)

955

955

966

11

25,874

1,485

26,639765

60,655(4,089)57,045(3,610)86,529(2,604)

83,684(2,845)(Millions of yen)

8,486

445

8,852

366

(Millions of yen)

3,230

67

3,055

(174)

Sales from Japanese language schools(Millions of yen)

552

(113)

816

264

Sales from others(Millions of yen)

1,615

(20)

2,199

584

Total Sales(Millions of yen)

13,884378

14,924

1,040Sales from Meiko Gijuku directly operated schools

8,486

445

8,852

366

System-wide sales from Meiko Gijuku franchised schools

17,373(1,135)

16,378(995)

Total system-wide sales from Meiko Gijuku schools *2

25,860(690)

25,231(628)

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 )*12

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, 2023

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

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Securities
MerchandiseWork in process
Supplies
Advance payments to suppliers
Prepaid expenses
Other
Allowance for doubtful accounts

As of May 31, 2023

8,755
977
95
13
7
16
329
243(33)

7,589
672
100
118
3
11
4
396
438(42)

10,4059,293

1,290(780)

1,401(817)

509

583

394(340)411(353)

5358

Land

49

49

Leased assets
Accumulated depreciation

35(23)

19(12)

11

7624

698

Intangible assets
GoodwillSoftware
Software in progress
Telephone subscription right422
180
4325
183
144

Total intangible assets

607

527

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

2,452
22233
949
100
44

2,729
31
113
1,019
100
158

Total investments and other assets

3,801

4,153

5,033

5,378

15,43914,672

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, netTools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

Leased assets, net
Total property, plant and equipment

Total non-current assets
Total assets
4Summary of Consolidated Financial Results for the Nine Months Ended May 31, 2023

(Millions of yen)
As of August 31, 2022

As of May 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
Other128231
1,179570195
1,148
185
434
44

168
170
837
86
147
1,119
1124
541
79

Total current liabilities

4,019

3,277

121

135

26

39

62
84
117
910380179116
94390
1813

777

Total liabilities

4,833

4,054

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares

972
909
10,959(2,779)972
909
10,726(2,707)

10,062

9,900

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

521
21696
20

Total accumulated other comprehensive income

543

716

10,606

10,617

15,43914,672

Non-current liabilities
Retirement benefit liability
Provision for share awards for directors (and otherofficers)
Provision for share awards
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 shareholders' equity

Total net assets
Total liabilities and net assets

5Summary of Consolidated Financial Results for the Nine Months Ended May 31, 2023

(2) Quarterly Consolidated statements of profit or loss and comprehensive income
Quarterly Consolidated statements of profit or loss
(Millions of yen)
Nine months ended
May 31, 2022

Nine months ended
May 31, 2023

Net sales
Cost of sales

13,884
10,631

14,924
11,708Gross profit

3,252

3,215

Selling, general and administrative expenses

2,605

2,863

647

352

7107
10

18

51

10
3
922

15
6057

82

149

06
1
1

5
4
0

911

Ordinary profit

721

491

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

6230149-623

1500243902-

28

11Profit before income taxes

1,315

629

Income taxes - current
Income taxes - deferred

567
(4)

237
41

Total income taxes

562

278

Profit753

350

Profit attributable to owners of parent

753

350

Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodRental income
Reversal of allowance for doubtful accounts
Subsidy income
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Loss on investments in investment partnerships
Commission expenses
Rental expenses
Other
Total non-operating expenses

Total extraordinary income
Extraordinary losses
Loss on change in equity
Loss on sale of non-current assets
Loss on retirement of property, plant and equipment
Extra retirement payments
Other
Total extraordinary losses

6Summary of Consolidated Financial Results for the Nine Months Ended May 31, 2023

Quarterly consolidated statements of comprehensive income(Millions of yen)
Nine months ended
May 31, 2022

Nine months ended
May 31, 2023

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

753

350

132

174

2(1)

135173Comprehensive income

888

524

(breakdown)Comprehensive income attributable to owners of parent

8885247

Summary of Consolidated Financial Results for the Nine Months Ended May 31, 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)
Nine months ended May 31, 2023 (from September 1, 2022 to May 31, 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 Standardfor 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 financialstatements.

8Summary of Consolidated Financial Results for the Nine Months Ended May 31, 2023

Segment Information
Ⅰ Nine months ended May 31, 2022 (from September 1, 2021 to May 31, 2022)
1. Information related to net sales, profit or loss for each reportable segment.

(Millions of yen)

Reportable segment
Meiko Gijuku
directlyoperated 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

3,885552

12,924

1,619

14,543

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 incomeSalestoexternalcustomers
Inter-segment sales andtransfers
Total

Japaneselanguageschools

Others*

Total

Total

Segment profit (loss)
606
1,233(172)
1,667(132)1,534(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

1,667

Profit (Loss) for “Others” category(132)

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 on impairment loss on fixed assets and goodwill by reportable Segment(Significant changes in the amount of goodwill)
From the third quarter of the current fiscal year, the Company acquired all outstanding shares of Simple Inc., which
is now included in the scope of consolidation.
As a result, the amount of increase in goodwill in the "Others" segment was 287 million yen.

9

Summary of Consolidated Financial Results for the Nine Months Ended May 31, 2023

Ⅱ Nine months ended May 31, 2023 (September 1, 2022 to May 31, 2023)
1．Information about Segment Sales and Income (Loss)(Millions of yen)

Reportable segment
Meiko Gijuku
directlyoperated schools

Meiko Gijuku
franchisedschools

515

1,165

-

1,681

1,526

3,207

8,336

1,890

816

11,043673

11,717

8,852

3,055

816

12,724

2,199

14,924

-

----

-

8,852

3,055

816

12,724

2,199

14,924

-

683

0

683

297

981

8,852

3,739

816

13,4082,497

15,906

403

877

18

1,300

13

1,313

Net sales
Goods or services thatare transferred at a pointin time
Goods or services thatare transferred over a
fixed period of time
Revenue from a contract
with a customer
Other incomeSalestoexternalcustomers
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)
Amount1,300

Reportable segment total

13Profit (loss) for “Others” category(960)Corporate expenses*352
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