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

Event Summary[Company Name]

Riso Kyoiku Co., Ltd.

[Company ID]

4714-QCODE[Event Language]

JPN[Event Type]Earnings Announcement[Event Name]

Financial Results Briefing for the Fiscal Year Ending February 2023

[Fiscal Period]

FY2023 Annual[Date]

April 12, 2023

[Number of Pages]

36[Time]

15:30 – 16:22(Total: 52 minutes, Presentation: 32 minutes, Q&A: 20 minutes)[Venue]Kabutocho Heiwa Building 2F, 3-3 Kabutocho Nihonbashi, Chuo-ku, Tokyo
103-0026 (Hosted by The Securities Analysts Association of Japan)[Venue Size]

145 m2[Participants]

33[Number of Speakers]

3
Masahiko Tenbo
Masaaki Kume
Masaya Ueda

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Vice President and CFO
Representative Junior Managing Director

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Presentation
Moderator: Now it is time. We will begin Riso Kyoiku Co., Ltd.'s financial results briefing for the fiscal year
ended February 2023.
First, I would like to introduce three people from the Company.
Mr. Masahiko Tenbo, President and CEO.
Tenbo: Hello.
Moderator: Mr. Masaaki Kume, Vice President and CFO.
Kume: Hello.
Moderator: Mr. Masaya Ueda, Representative Junior Managing Director.
Ueda: Hello.
Moderator: Today, those three people I have just introduced will give their explanations. After theirpresentations, we will have a question-and-answer session. Please go ahead.
Tenbo: Hello, everyone. I am Tenbo of Riso Kyoiku, as I've just been introduced. Thank you for your attendance
today.
During the period under review, we have been holding our financial results briefings online as a part of ourinfection prevention measures. However, since it was the main closing of accounts, and the regulation for
wearing of masks has been eased since March, we decided to hold the briefing today in person.
This is the first time since 2018 that we hold the briefing here, at the Kabutocho Heiwa Building. It means that
this is the first time in five years. Before the COVID-19 pandemic, we used to hold the briefing at the Johoku
headquarters building in Ikebukuro for a while, together with the company tour, so some of you may be
coming to our briefing for the first time as we hold the session here. I am happy to meet you all.
Now, since some of you may have come to our briefing for the first time, I would like to start with an overview
of our company. I would like to explain in accordance with the materials at hand.

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First, please see page three, this graph is our company's growth trajectory since its inception.
Our business model is based on a declining birth rate, and since our founding in 1985, we have grown as if in
inverse proportion to the times, despite the headwinds of the declining birth rate, and we continue to growand expand today.

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The seven companies of the Riso Kyoiku Group operate 13 brands, including TOMAS, a tutoring school
business; Meimonkai, a private tutor dispatch education business; Shingakai, an early childhood education
business; School TOMAS, an in-school individual tutoring business; and Plus One Education, a personality andemotion camp education business.

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As for the composition of sales, TOMAS, a tutoring school business, accounted for 52.5%; Shingakai, an earlychildhood education business, 18.4%; and Meimonkai, a tutor dispatch education business, 16.1%, with thesethree businesses leading the Group as mainstays. School TOMAS, an in-school individual tutoring business,
8.2%; and Plus One Education, a personality and emotion camp education business, 4.9%.

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As I explained earlier, we are continuing to grow despite the headwind of declining birth rates, but there werereports that the number of births nationwide fell below 800,000 in March of this year and that theconcentration of the population in Tokyo is accelerating.
Looking at the current state of the education industry association in these times of declining birth rates, it
doesn't mean children have disappeared. It means that educational expenditures per child are increasing.
We believe that, in the case of education, which cannot be redone, there is a demand for more secure andreliable education without regard to the cost.
Furthermore, as articles mentioned about the concentration of population in Tokyo, there is an influx ofpeople with children in large cities. I would say that such families are those who are very interested in
education.
In particular, children can go to junior high school without any concern before, but we are seeing an increasein the number of families applying to private, national, and public junior high schools, where they have to takeentrance exams to be admitted.
This year, entrance examinations for private junior high schools in Tokyo and Kanagawa started on February
1, and the number of examinees who took the exams on February 1 increased by 2.7% from the previous year
to 43,000. It means that the number of children taking entrance exams for junior high schools is steadily
increasing.
I think this means that parents are more strongly motivated to provide their children with a better education
for their future. We believe that this is a good representation of the current situation, where educational
expenses per child are becoming higher.
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The market size of tutoring and preparatory schools is also increasing, albeit at a slower pace. Individual
tutoring accounts for about half of this total. The overall tutoring and preparatory school market has increasedby 3.5% over the past decade, while the individual tutoring market has increased by 7.7%.

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We believe that what we have explained so far is an expression of the parents' concern for their children's
future. While the birth rate is declining, I believe that the government's policies on child rearing and education,such as the reform of university entrance examinations, are taking many twists and turns.
The desire to provide a better and more secure education for our own child's future has led to an increase in
the number of children taking entrance exams for elementary and junior high schools.
The increasing cost of education per child means that there is an increasing demand for reliable and secureservices, even if they are expensive.
The industry is becoming increasingly polarized, with uncharacteristic tutoring schools being weeded out. We
are differentiated by our one-on-one individual tutoring, a business type that aims to provide safe and reliable
services. We think must continue to be selected in this way.

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In addition, we are promoting a strategy to retain students who continue to attend our schools by taking
advantage of the Group's economies of scale, starting with children as young as one year old at Shinga's Club
daycare, which is operated by Shingakai, an early childhood education business, and continuing through touniversity students and adults, with Inter TOMAS English conversation school. We hope to continue to growand expand our group as a whole.

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I will now give a brief overview and characteristics of each segment.
First, in the tutoring school business, we are developing TOMAS, a completely one-on-one individual tutoring
school for higher education.
More than 30 years ago, when our company was founded, tutoring schools usually mean group tutoring
schools that offered instruction at 1:20, 1:30, 1:50, or even 1:100, as teacher-to-students ratio. We believethat we were the first company in Japan which offered completely one-on-one individual tutoring for higher
education.
Nowadays, we often see signs that say, "individual tutoring," but most of them are small-group instruction,such as 1:2 or 1:3. We believe that those individual tutoring schools are composed of supplementary tutoring
schools for school students.
However, we believe that it is difficult to improve academic abilities, pass difficult entrance examinations, ortake such examinations in such a format.
On the other hand, the group tutoring schools teach the same curriculum to all students that students who
can study well may feel inadequate, while those who cannot keep up with their studies may end up disliking
their studies, and so on. The solution to this problem is our complete one-on-one individual tutoring.
We provide instruction based on a curriculum that works backward from success at the school of one's choice,which is tailored to the individual personality and academic ability of each student.

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10Because we are able to prepare each student for the school of his or her choice based on his or her individual
curriculum, many of our students are accepted into difficult junior high schools and difficult high schools, suchas the top three schools, as well as medical schools and difficult universities.

We divided the tutoring school business market into individual and group on the horizontal axis, and higher
education and supplementary education on the vertical axis. As you can see, TOMAS belongs to the individual
and higher education in these four matrices.
We believe that we take a position that is not easily found in the tutoring school business and that continuing
to dominate this unique position is essential to our differentiation. We are proud to say that we currently
have a unique monopoly here.

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11Next, I will now explain about Meimonkai.
Meimonkai, a private tutor dispatch education business, the most important feature of this business is that
all instructors are working professionals. We are proud of our high academic achievements, particularly in
medical schools, and our success in passing entrance examinations.
Almost no tutoring center publishes their success record, and we believe that Meimonkai is the only center
that does it.

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12And Meimonkai has a strong success record as a preparatory school for medical schools started MEDIC
Meimonkai, a preparatory school specializing in medical school entrance examinations, which offers complete
one-on-one tutoring last year.
The Osaka home school opened last March and the Kobe school in April.

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We plan to develop more than 10 schools in the future.

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Next, I would like to explain about Shingakai.
Shingakai, an early childhood education business, provides guidance and instructions for entrance exams forprestigious elementary schools and kindergartens.
Founded in 1956, it is a well-established business with a history of more than 60 years. It is a pioneer in thefield of entrance examinations for early childhood, and it became a member of our group in 2003. It is apreparatory school or cram school for early childhood education with such a tradition.
Every year, many of our students are accepted into difficult-to-enter elementary schools and kindergartens,
such as Keio Kindergarten and Waseda Jitsugyo Elementary School, and we have earned a reputation as oneof the top schools in the entrance exam industry.
As I explained earlier, the number of families taking entrance exams for elementary schools in the Tokyo
metropolitan area in FY2022 is increasing steadily, up 6% from the previous year, and I believe that thebusiness environment is favorable.

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Shingakai also offers Shinga's Club daycare division, a long-hour gifted and talented daycare service forchildren aged one to three years old prior to their elementary school entrance examinations. This is very
popular with mothers who wish to balance work and childcare.
Students who graduate from this daycare program at the age of three will then go on to attend Shingakai forelementary school entrance exams.

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After entering elementary school, students have another option of joining the Shinga's Club for school-age
children's program, which provides training for higher education.

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17Both the Shinga's Club daycare and school-age children's programs are in such high demand, that they arefilled to capacity as soon as they are opened.

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Next, I would like to explain about School TOMAS. This is an in-school individual tutoring business. That's what
we are doing in a nutshell, setting up TOMAS in the school.
The declining birth rate is affecting not only the tutoring school industry, but also schools, and schools arenow struggling to survive as they too are being eliminated. Schools need to differentiate themselves, and I
believe that one of the key points of differentiation is the school's academic results for higher education.
Our complete one-on-one individual college preparatory tutoring means that we can follow up with afterschool learning instruction. This business was created in response to a request from a school. We are currently
working in 86 schools, mainly private schools.
This is a brief overview of our four main companies in our group. We hope you will find further details in thematerials at hand.
Mr. Ueda, Representative Junior Managing Director, will now explain the results for the fiscal year ended
February 2023.

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Ueda: My name is Ueda from Riso Kyoiku. Thank you.
First, I would like to explain the consolidated results for the fiscal year ended February 2023.
Net sales increased by 4.9% YoY to JPY31,488 million, operating profit decreased by 20.8% to JPY2,401 million,
ordinary profit decreased by 19.9% to JPY2,442 million, and net profit decreased by 38.6% to JPY1,492 million.

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As for the background of the results for the fiscal year ended February 28, 2023, net sales increased by 4.9%
YoY as the tutoring school business, TOMAS, the in-school individual tutoring business, School TOMAS, andthe personality and emotion camp education business, Plus One Education, outperformed the previous fiscalyear.
On the other hand, upfront investments to secure talented personnel and higher personnel costs, resulting
from base salary increases for employees, staffs, and instructors, increase in advertising expenses forrecruitment and other advertising in H1, in addition, higher resource and crude oil prices due to rising global
demand for energy, and higher expenses due to the yen's depreciation, which drove up utility and other costs,
resulted in a decrease in profits compared to the same period of last year.
As for improvement measures, as Tenbo will explain later, we plan to raise prices at TOMAS, Meimonkai and
School TOMAS and to consolidate unprofitable schools at Meimonkai and Shingakai.

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As background on the results, I would like to explain one more point regarding the number of students
enrolled. The number of students in the Riso Kyoiku Group decreased by 1.1% YoY and increased by 3.2%
compared to 2021 before that.
By segment, TOMAS decreased by 0.7% YoY. The main reason is that enrollment of elementary school
students preparing for junior high school entrance exams, the mainstay of the school, increased, but growthin the number of high school students slowed down from the beginning of the period. We intend to secureenrollment by strengthening our sales force.
Meimonkai decreased by 9.5% YoY. By consolidating and centralizing Riso Kyoiku's student recruitment sales
department, which had been conducted independently by Meimonkai, we will be able to conduct efficient
student recruitment and solicitation activities and secure enrollment.
Shingakai decreased by 1.9% YoY. Shinga's Club daycare increased by 0.7% and school-age children by 16.9%.
However, the examination division decreased by 11.9%, which was the main reason of the overall decrease.
As we will explain later, we will mutually utilize customer information by strengthening our alliance with Kids
Smile Holdings (hereafter call “Kids”), and we plan to acquire members by introducing the Group's services to
Kids' members.
Next, Mr. Kume, Vice President and CFO, will explain our shareholder return policy.

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Kume: My name is Kume, and I am in charge of finance. Thank you.
This fiscal year, we revised our forecast downward in January due to an unexpected decrease in profits. Thisis because as we talked about earlier regarding profits, labor costs have increased more than we initially
expected at the beginning of the term, fixed costs have increased, and as you all know, electricity rates haveincreased and water rates have increased.
Reason of labor costs is to compete with other companies, we had to raise the hourly rate of instructors. In
addition, inflation has accelerated, and we have had to raise employee salaries and increase costs. Human
resources are our asset, which are quite important for our future, so we had to increase the costs and revised
our forecast downward.
However, Net sales itself increased, so the dividend for the current fiscal year is JPY16 per share. Dividend pay
out ratio become over 160%, but it can be done within retained earnings. We have also determined that theequity ratio after dividends can be maintained at approximately 50% and have therefore decided to pay a
dividend of JPY16 per share as originally planned.
In the meantime, we are putting out a statement that we are undecided about the current fiscal year. This isbased on our review of the previous fiscal year, and since we revised profits downward in the middle of the
fiscal year, we are also conservative in our sales and net profit forecasts for the current fiscal year.
In light of the current situation in the world, we believe that personnel expenses will probably have to increase
considerably this fiscal year as well. As we mentioned earlier about the partnership with Kids, we believe that
there will be a reorganization of the industry. We are preparing for such a trend. And we are also announcing
at the same time that the “Kodomo Depart” will finally begin at full scale. We start to with opened two schools

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23and we are planning to build 20 buildings in the next four to five years in cooperation with Hulic, so we haveto be prepared for this.
We are considering preparations to increase the so-called "corporate value" of the Company and will makean announcement on the dividend for the current fiscal year. I would like to announce it at least by the endof Q1.
That is all.

Tenbo: I would like to continue by explaining our forecast for the fiscal year ending February 2024 and our
medium- to long-term improvement measures.
First, I would like to explain our outlook for the fiscal year ending February 2024.
As announced on January 20 of this year, we forecast net sales of JPY34 billion, operating profit of JPY3 billion,
ordinary profit of JPY3 billion, and net profit of JPY2.06 billion.
Based on the results for the fiscal year ended February 2023, in the fiscal year ending February 2024, as Ueda
mentioned earlier, we intend to improve our profit structure by implementing various improvement measures.
First, tuition fees have been raised at TOMAS, Meimonkai, and School TOMAS since this March. In order tofurther improve the quality of our classes and to secure excellent instructors, we have raised tuition fees by
5% to 7% compared to the previous term.
Furthermore, we are considering the consolidation of unprofitable schools in Meimonkai and Shingakai.

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In addition, we are working to improve our profit structure by reviewing and reducing other overhead costs.

As for the medium- to long-term outlook, we plan to formulate a new medium-term management plan withthe fiscal year ending February 2024 as its first year.
In addition, as I will explain later, we will promote alliances with different industries and strategies to enclose
customers by strengthening alliances. Furthermore, with the opening of Kodomo Depart, which is being
developed through a partnership between our company, Hulic, and Konami Sports, we hope to create anenvironment that will encourage longer attendance.

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Let me explain a little more detail about Kodomo Depart.
It will be a one-stop location for services for children, which is being developed through a business alliance
between our company, Hulic, and Konami Sports.
We assume one building for various services. Hulic will develop a medium-scale building or renovate an
existing property for Kodomo Depart, and we will roll out our brands in that building.
We are also planning to create a place where children can go to a gymnasium school run by Konami Sports, achildren's clinic, a café, and other tenants offering a variety of services for children, so that most of the needs
for children will be met.
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, we have six properties already in process, including a Kodomo Depart in MITAKE Link Park in
Shibuya Ward, which we announced last April and will be completed in 2026. We are planning to expand thenumber of Kodomo Depart to 20 by 2029.

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Next, I would like to explain our business alliance with Kids Smile Holdings.
The main focus of this partnership is Shingakai. Since 2015, Shingakai has had a business alliance with Kids
Smile Project, Inc. In order to form a more comprehensive alliance, we announced in March last year a fourcompany business alliance that includes Riso Kyoiku, the parent company of these two companies, and Kids
Smile Holdings.
In order to effectively support each other's services, Shingakai and Kids Smile Project mutually dispatch
directors to each other.
We have also held events to introduce our group's services to Kids Smile Project members, which have led to
new enrollments in Shingakai, and we have sold our original educational program, KID'S PREP. PROGRAM, anoriginal educational program jointly developed by Shingakai and the Kids Smile Project, to outside customers,
and these activities gradually make fruit.
Furthermore, as announced on March 20 of this year, we have entered into a capital alliance, in addition to
the business alliance. By facilitating the alliance and strengthening mutual support, we will strengthen ourcontent, brand, and ability to attract customers, laying the foundation for our future growth strategy.

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Shingakai also has a business alliance with Konami Sports and is developing a new brand, Konami Sports
Shinga's Academy, to fulfill the dreams of parents who want their children to do well in both studies andsports.
On April 1 of last year, we opened our first school as the Shinagawa school in the Konami Sports main branch.
This has been so well received, that we have expanded and added a new floor this month.
The second school, which followed, opened this very month at the Nishinomiya Annex, the main branch of
Konami Sports, as the Nishinomiya school. In addition, we plan to open one more school in the Osaka area
and one in the Kobe area. We plan to open approximately 20 schools in the future, including these four schools.
Last but not least, the number of students taking junior high school entrance examinations and private
elementary school entrance examinations in the Tokyo metropolitan area this year has reached a record high,and we feel the enthusiasm for entrance examinations is increasing every year.
Due to the COVID-19 disaster, some people who had not previously considered taking the junior high school
entrance exam are now participating, or due to the easing of restrictions, some parents are relieved to let
their children go to school taking trains. We will continue to provide genuine education and services to meetthe needs of such people and strive to enhance our corporate value.
Thank you very much for your kind attention.
Moderator: Thank you.

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Question & Answer

Moderator [M]: Now, let's move on to the question-and-answer session.
This financial results briefing will be transcribed and published in full, including the question-and-answer
session. Therefore, if you give your name and company name when you ask a question, they will be madepublic. If you wish to remain anonymous, you may omit your name.
Please go ahead.
Participant [Q]: Thank you very much for your time today. First, it seems that you are expecting a 5% to 7%
increase in tuition fees. As mentioned earlier by the Vice President, there is a higher-than-expected growth inlabor costs and advertising expenses. One of my questions is whether 5% to 7% raise can cover the increased
costs.
Second, I believe that the use of AI in the education field is now being discussed, but what is your company's
approach? I would like to know if you have any specific measures using AI, for example, in selecting schoolsof interest.
Third, you are planning to consolidate unprofitable schools in Meimonkai and Shingakai, as well as other plans
for school openings, et cetera, as mentioned on another page. If you have an image of areas you would liketo focus on opening new schools or consolidating schools, I would like to know about the idea. That's all.
Tenbo [M]: Thank you for your question. We received three questions. The questions were that if the tuition
increase will cover the various costs, what our approach to AI is, and if we have specific areas in mind for
opening of new schools and consolidation due to unprofitability. Is this right?
May I start with the Vice President to see if the tuition increase can cover the increase in costs?
Kume [A]: I will answer. As you are all aware, many companies are raising their labor costs this fiscal year, andas we will also be raising the hourly wage of our instructors. For the future growth of our company, we haveto increase the tuition for competition because human resources are our most important asset.
Therefore, I believe that these 5% to 7% could almost disappear into it. This means that if we don't do it, we
will lose money, so we have to do it.
If it were 5% to 7% in the current environment, there would be no complaints from the parents at all so far.
We believe we have convinced them about the tuition increase.
As I mentioned earlier, we are looking at a net profit of JPY2 billion, so this is a conservative estimate.
As you can see, the ordinary profit margin is also below 10% of sales. We are aiming for about 10%, but again,
we are planning conservative here.
As we will take various measures to increase the number of students in this fiscal year, and we are aiming for
a YoY increase in the number of students. That's all.
Tenbo [A]: I would like to continue by explaining our approach to AI. May I remain seated?

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29AI, indeed, is being developed by a great many companies, and we have received a number of AI proposals.
We have adopted some of the approaches at the School TOMAS, but the individual tutoring is still our strength,
and when we really want to differentiate ourselves, the more analog we can be, the more we can differentiate
ourselves. In this sense, we are still committed to the one-on-one face-to-face approach.
However, we know that AI is quite effective when used as supplementary training materials, so we hope to
use AI as such supplementary materials. That's all for the question about AI.
And about the areas for school openings and consolidation. First, regarding Meimonkai, we have a divisioncalled TOMEIKAI. The TOMEIKAI, where the Meimonkai is responsible for expanding TOMAS to the rural areas.
But there are some schools where the number of students is not growing as fast as expected due to theinevitably severe declining birth rate in the rural areas, we are reviewing.
In addition, Shingakai has three schools in the Kansai region, and the enrollment does not grow as expected
there, so we must consider about them. From now on we are still under consideration of expanding thenumber of schools in the vicinity of major metropolitan areas where we have already opened schools. That isall. Is that okay?
Participant [M]: Thank you very much.
Moderator [M]: Thank you. Next question, please.
Sekine [Q]: Thank you very much for your explanation. I'm Sekine from Daiwa Securities. I have two questions.
First, Mr. Kume mentioned earlier that the profit plan is conservative. I think your company has rather been
making upfront investments, but this time you are going to implement various cost reductions, so I understandthat your main plan is to focus on profits this time and to achieve the profit plan first. The main focus of theplan is to achieve the profit plan first, while sales are, of course, the main focus though. Am I right?
Kume [A]: That is correct. As for cost reduction, as President Tenbo mentioned earlier, we are finally going to
scrap unprofitable classrooms. Which Shingakai has never had to do so in the past. But there are areas in the
Kansai region where results have not improved for the past 10 years, so we are going to scrap those areas.
Regarding TOMEIKAI, which the President mentioned earlier, we have developed TOMEIKAI, but we areplanning to scrap some of those schools because it is difficult grow up so Birthrate declining in the rural areas.
For example, we have cancelled all of these that did not directly results in Net sales, such as the withdrawal
from radio, KidZania, and the termination of the contract with an athlete Mutoh.
This will reduce costs by a little more than JPY100 million. As you mentioned, our plan for this fiscal year is tofocus on profits.
Sekine [Q]: I understand. The second question is, I understand that the decrease in the number of Shingakai
members this time is due to internal factors of your company rather than the market environment, what isbeing done to rebuild the current situation?
Also, you mentioned earlier that you are thinking about revising the figures in the mid-term plan in light ofthese factors. Please also tell us how soon you might be able to get them out. That's all.
Tenbo [M]: Will the Vice President answer this question, too?
Kume [A]: Regarding Shingakai, if you look at the data, there is an increase in the number of the school-age
children's program. The number of members for the school-age children's program has increased. Then the
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number for the daycare program remains almost the same. The number for the entrance exams program has
decreased.
The entrance exams program is the most profitable factor for Shingakai. While the overall number of students
hasn't changed that much. That means, for example, the school-age programs generally cost JPY70,000 to
JPY80,000 per child, while the monthly fee for the examination program is, at the peak, JPY200,000 per child.
In total, the overall decreased. So we need to increase the number of enrollments for the exams programs.
As to why this has decreased, as you can see, the year before last, Shingakai number of students increase
recorded the highest in its history. The number of students has increased due to the sense of urgency about
the exam. The increase has led to a declined in service. Because we couldn't hire enough teachers. To decline
in service, so number of students has decreased, we do increase staff and to bring it to the right level.
That is why we consider that last year was the bottom limit from its current staff. As for how we plan to lift
this place up, one is the business partnership with Kids Smile that we mentioned earlier. They have actually
about 5,000 students.
Kids runs mainly licensed nursery schools, but in essence, they also do non-licensed nursery schools at places
like Azabu. Kids' recent strategy is to increase non-licensed nursery schools. It means we will make businessalliance with non-licensed nursery schools at affluent families live area.
For example, in the previous fiscal year, when we were only affiliated with Kids, we received about four
students a month or about 48 students a year through referrals from Kids. We expect to triple or quadruple
this. One of our strategies focuses on this.
There are many companies that have stopped offering licensed nursery schools and kindergartens, in thispartnership with Kids, we builded scheme named "SK-Group" and trying to bring in that more and more ofthat nursery schools and kindergartens in our business.
The M&A strategy I talked about a bit earlier is just the same. To increases the number infants and forelementary school entrance exams students, and then link it to about TOMAS or Meimonkai. This is thestrategy that we are going to roll out this year.
Therefore, we are coordinating with Kids on a variety of matters, including the briefing sessions for Kids, which
will be very much more frequent. We are trying to increase the number of students by first increasing thenumber here and also by deepening cooperation between the sales force and the so-called teaching staff, inother words, the teaching staff at Shingakai.
We believe that the last year was the bottom of the sales of Shingakai. This is the kind of plan that we aretrying to rebuild.
Sekine [Q]: What is the timing regarding the medium-term plan?
Kume [A]: The medium-term plan, will not take that long.
Sekine [Q]: The image of Q1.
Kume [A]: I think we can get it out by the end of Q1.
Sekine [M]: I understand. All right. Thank you very much.
Moderator [M]: Thank you. Next question, please.

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31Participant [Q]: Excuse me. I would like to ask you a follow-up to what you just said about Shingakai. How did
you deal with the fact that the number of students increased too much and the service decreased? Also,
please tell me if the number of students increased fast again and if the same deterioration of the service
happens, and if it won't be the same, what did you do this time that made it okay?
Kume [A]: Simply, we increased the number of teachers. At this point, we already have the right number ofpeople, students, et cetera. This business also passed exam results is importabt but parents review is more
important.
The parents review went down cause the number of students increased too much and the service decreased
but now already at the appropriate staffing level and customer satisfaction increase.
In addition, Shingakai is not individual, it is a group education, so we still have a lot of capacity, and I believethat this will mean that it will not be like the previous year.
Participant [Q]: When you say that the quality of service has declined, do you mean that the number ofchildren per teacher has increased so much that it's become a little bit out of control in one classroom?
Kume [A]: Well, that's right.
Participant [Q]: I understand. You said that the number of students for this fiscal year as a whole will recover.
I was wondering if you could give me a rough estimate of how things are going for TOMAS, Meimonkai, andShingakai, such as whether there will be a further decline at Meimonkai or if TOMAS will continue to do well.
I would like to know if there is a general direction.
Tenbo [A]: You mean like the projected number of students for each company? I think that TOMAS is a solidincrease. We believe that Meimonkai was bottomed out last year, so we do not think that it will decreaseagain. As for Shingakai, as we believe that last year was the bottom.
Participant [Q]: Does Meimonkai increase the number of students even as it reduces the number of schoolbuildings?
Tenbo [A]: Yes.
Participant [M]: I understand. Thank you very much.
Moderator [M]: Thank you.
Participant [Q]: Thank you very much for your presentation. I have two points. The first is I would like to ask
for numbers of classroom.
First question is, if possible, I would like to know how many new classrooms you expect to open and how
many you expect to close in the current fiscal year ending February 2024.
Second question is, I would like to check something about Kodomo Depart. Am I correct that your company
will only move in the building Hulic developed as a tenant? Basically, the tenants will include three or so of
your Shingakai school for exams, a daycare program, and school-age children's program. Am I correct both for
Nakano and Tama-Plaza? This is also confirmation. Thank you.
Tenbo [M]: Thank you. Is my understanding right that your question is about our schedule for new school
opening and closure in this fiscal year?
Participant [Q]: Yes. Schedule for number of plans of Riso Kyoiku.
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Tenbo [A]: The total number of new schools open is about 10. I think it depends on the property, but that's
about it.
Conversely, we are planning to close four to five schools, although there may be a bit of timing as to when
this will happen.
Furthermore, as for the Kodomo Depart tenant, as you mentioned. In some cases, each TOMAS brand, suchas MEDIC TOMAS and Spec. TOMAS could be housed there. Shingakai will probably be included without adoubt, but we have not yet reached that level of specifics, and we believe that a variety of brands could be
included. That is all.
Participant [M]: Thank you very much.
Moderator [M]: Then the fourth from the front.
Participant [Q]: I would like to ask one question. I would like to ask you about the background of the increase
in revenues of the tutoring school business and TOMAS in the period that ended.
On page 24, the number of students enrolled in TOMAS is down from the previous year. Could you please
explain the factors, such as whether the average during the period was higher than the previous year, whichgrew due to the COVID-19 disaster, or whether the unit tuition per student increased? Thank you.
Tenbo [A]: Thank you for your question. I will answer the question.
As for TOMAS, the number of students has average slightly lower than the previous year. What it means isthat the tuition per student has increased. That is how the revenue increased.
Participant [M]: Thank you.
Moderator [M]: Thank you. Please ask another question. There seems to be no further question. If you haveanything to add from the Company side, please let us know. Is that okay? Okay.
This concludes the briefing for today. Thank you very much.
Tenbo [M]: Thank you.
[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.
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