Riso Kyoiku Co., Ltd.
Q1 Financial Results Briefing for the Fiscal Year Ending February 2024
July 12, 2023

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 2024

[Fiscal Period]

FY2024 Q1[Date]

July 12, 2023

[Number of Pages]

18[Time]

15:30 – 15:49(Total: 19 minutes, Presentation: 15 minutes, Q&A: 4 minutes)[Venue]Webcast[Venue Size][Participants][Number of Speakers]

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2Masahiko Tenbo
Masaaki Kume

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President and CEO
Vice President and CFO

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Presentation
Tenbo: Hello everyone. I am Tenbo from Riso Kyoiku Co., Ltd. Thank you very much for your time.
Kume: I am Kume from Riso Kyoiku. Thank you very much for your time.
Tenbo: The time has arrived, and we will now begin the Q1 financial results briefing for the fiscal year ending
February 2024. This is Q1 of the fiscal year, and we have decided to hold the financial results briefing online.
We apologize for any inconvenience this may have caused and appreciate your understanding.

Kume: Today, as usual, we will explain the results for Q1 of the fiscal year ending February 2024, thebackground of the results, shareholder return policy, medium-term management plan, and future outlook,based on the materials, and then answer your questions. Thank you very much for your time.
First, Tenbo, President and CEO, will explain the results for Q1 of the fiscal year ending February 2024.
President Tenbo, please.

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Tenbo: I will explain the results for Q1 of the fiscal year ending February 2024.
YoY, net sales increased JPY249 million to JPY6,692 million, operating income decreased JPY20 million tominus JPY369 million, ordinary income decreased JPY33 million to minus JPY362 million, and net income
decreased JPY14 million to minus JPY276 million.

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3This is the status of each company's new school openings in Q1 of the current fiscal year.
In the TOMAS tutoring school business, the Nakameguro school was newly opened in April, and the Center
Kita and Chiba schools were renovated in May.
As of May 31, 2023, there are 99 tutoring schools and 12 English conversation schools.

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4Meimonkai, a private tutor dispatch education business, closed its Chiba Ekimae School in March and opened
its Kyoto Ekimae School No. 2 in April.
As of May 31, 2023, there are 36 Meimonkai schools, two MEDIC Meimonkai schools, and 12 TOMEIKAI
schools.

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Shingakai, a childcare and education business, renewed Futako-tamagawa School of Shingakai in March,
newly opened Shinga's Club After-School Care Futako-tamagawa School in April, renewed Konami Sports
Shinga's Academy Shinagawa School, and newly opened Nishinomiya School.
As of the end of May 2023, there are 24 Shingakai schools, 8 Shinga's Club Childcare schools, and 19 Shinga's
Club After-School Care schools.

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School TOMAS, the in-school private tutoring service, has 80 schools in operation at the end of May.

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Next is the background of the results for Q1 of the fiscal year ending February 2024.
Net sales increased 3.9% YoY as the tutoring school business, the in-school private tutoring business, and thecharacter-building camp education business increased from the previous year.
On the other hand, as for profit, operating income decreased by JPY20 million YoY due to an increase inpersonnel expenses for tutors, as well as an increase in fees paid for the use and maintenance of various
systems.
Please note that there are seasonal factors for the tutoring school business. Q1 of the consolidated fiscal year,
which is the start of the new school year, tends to be the bottom of the results, and Q2 and Q4 of theconsolidated fiscal year, when large seminars are held during the summer and winter vacations, tend to seea large increase in business results. This is also the case for our company, and at present, profitability is lower
in Q1 and Q3 of the consolidated fiscal year, compared to Q2 and Q4. We would appreciate yourunderstanding on this point as well.

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8Next, I will explain the number of students.
The total number of students in the Riso Kyoiku Group decreased by 1.7% from the previous year. Compared
to 2021, the number increased by 1.7%.
The following measures will be implemented in each segment to secure the number of students.
TOMAS will select priority schools and concentrate its sales department there. In addition, we will work toprevent withdrawal from membership by further enhancing customer service.
Meimonkai will strengthen its sales capabilities by consolidating and centralizing its independent student
recruitment sales department into Riso Kyoiku, and will conduct efficient student recruitment and solicitation
activities.
Shingakai will work to increase manpower in the sales department in order to increase new enrollments. In
addition, it will prevent withdrawal from membership by thoroughly conducting planned individual interviews.
Next, Kume, Vice President and CFO, will explain our shareholder return policy.

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Kume: We have always regarded the return of profits to shareholders as an important issue. Therefore, as we
disclosed on April 21, we have announced our basic policy of considering a dividend payout ratio of 50% or
more, based on a comprehensive assessment of the degree of retained earnings, profit situation, and businessenvironment for sustainable corporate growth and the creation of corporate value, while giving due
consideration to stable profit returns.
The dividend forecast for the fiscal year ending February 2024 is JPY10 per share, The Company has
announced a dividend payout ratio of more than 50%, and the dividend at JPY10 would be 74.9%. The dividend
yield, based on the closing price yesterday, July 11, would be 3.8%.
We will continue our efforts to strengthen returns to shareholders and increase corporate value.
Next, Tenbo will explain the forecast for the fiscal year ending February 2024 and mid- to long-term
improvement measures.
Mr. President, please.

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Tenbo: I would now like to explain the outlook for the fiscal year ending February 2024.
As we announced on January 20 of this year, we have not changed our forecasts of net sales of JPY34,000
million, operating income of JPY3,000 million, ordinary income of JPY3,000 million, and net income of
JPY2,060 million.
Based on our performance in the fiscal year ended February 2023, we hope to improve our profit structure in
the fiscal year ending February 2024 by implementing the improvement measures I am about to discuss.
First of all, starting this March, TOMAS and Meimonkai implemented a revision of tuition fees and raised theprices. We have raised tuition by 5% to 7% compared to the previous term to secure excellent teachers by anincreased hourly rate and provide more substantial classes.
Furthermore, Meimonkai and Shingakai are considering the consolidation of unprofitable schools, and havealready begun the process. In addition, we will improve our profit structure by reviewing and reducing various
expenses.

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As for the medium- to long-term outlook, I will explain later, we will promote a strategy of customer retention
through alliances with different industries and strengthening of alliances, and we will create an environment
where people can safely attend our schools for a longer period of time through the opening of Kodomo Depart,which is being developed through an alliance between the Company, Hulic, and Konami Sports.

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I have already explained Kodomo Depart in the past, but I would like to explain it again in detail.
It is a one-stop place for services for children, which is being developed through a business alliance between
Riso Kyoiku, Hulic Co., Ltd., and Konami Sports Co., Ltd. Basically, it will be one building.
Hulic will develop a new mid-size building or renovate an existing property, and Kodomo Depart will operate
in the building. We will operate our brands in Kodomo Depart. In the same building, there will be a children's
gym by Konami Sports, a children's clinic, and various children's service tenants on each floor, creating a place
for children where everything for children can be provided.
As announced on April 10, we have decided to develop Kodomo Depart Nakano in front of Nakano Station inTokyo and Kodomo Depart Tama Plaza in front of Tama Plaza Station in Yokohama. The opening is scheduled
for spring 2025.
In addition, there are concrete plans for six buildings, including Kodomo Depart, that will operate at the
MITAKE Link Park in Shibuya-ku, Tokyo, which was announced in April last year, and will be completed in 2026.
We are planning to expand the number of buildings to 20 by 2029.

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Shingakai also has a business alliance with Konami Sports, and is operating a new brand, Konami Sports
Shinga's Academy, to fulfill the dreams of parents who want their children to study as well as play sports.
In April last year, we opened our first school building, Shinagawa school, in the Konami Sports main branch.
This has been so well received that we expanded and increased the floor space in April this year because we
could not accommodate all of the students. The second school opened in April of this year as Nishinomiya
school, at the Nishinomiya annex, the main branch of Konami Sports. In addition, we plan to open
approximately 20 schools in the future, including these two schools in The Tokyo metropolitan and Kansai
areas.

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14And next, I would like to explain our business alliance with Kids Smile Holdings.
We have a business alliance with four companies: Our subsidiary Shingakai, Kids Smile Project, and thecompanies' parent companies. In order to enhance the relationship within the alliance, a capital alliance has
also been implemented this year. Through this alliance, we will strengthen our content, brand, and ability to
attract customers, and lay the foundation for our future growth strategy.
Last but not least, the summer course, which is the crucial point for students preparing for the entrance
examinations, is about to begin at TOMAS, Meimonkai, and Shingakai.
Since the beginning of this week, we have already been experiencing very hot weather, with temperatures
well above 30 degrees Celsius every day. August is also expected to be hotter than normal, and this will be a
big challenge for students, teachers, and employees alike. We will continue to strive to provide high quality
services so that we can help our students enter the schools they want while preventing heat stroke.
This concludes my brief explanation.
Thank you very much for your kind attention.

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Question & Answer

Kume [M]: We now have time for questions and answers. Thank you very much for your time.
We have received one question.
Participant [Q]: The question is about the number of students enrolled at the end of May, by TOMAS,
Meimonkai, and Shingakai, compared to the same period last year. Is it correct to assume that TOMAS and
Meimonkai were not affected by the price increase?
Tenbo [A]: As for TOMAS, the situation was flat at the end of May. As for Meimonkai, the number of students
decreased by about 10%.
We see this as more of a matter of service than an effect of the price increase. We think that the price increase
will not have that much of an impact so far. I think we need to keep an eye on this a little more. That's all forthe answer.
Kume [A]: Also, Shingakai showed a slight decrease.
Tenbo [A]: Yes.
Kume [A]: As a side note, Meimonkai is down 10%, but we feel that the decline has stopped, and this state
has been going on for some months now, so it's not spreading out.
As we mentioned earlier, from this fiscal year, Meimonkai started to integrate the sales department into Riso
Kyoiku to achieve synergies. We are now in a situation where we expect to see the effects of this.
Tenbo [M]: If you have any other questions, please do not hesitate to ask. Okay? If you have any individualquestions, please contact our corporate planning department or call us.
There seems to be no further questions, so the Q1 financial results briefing for the fiscal year ending February
2024 is now over.
Thank you very much for your time today.
[END]______________
Document Notes
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Speaker speech is classified based on whether it [Q] asks a question to the Company, [A] provides ananswer from the Company, or [M] neither asks nor answers a question.
This document has been translated by SCRIPTS Asia.

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