FY Ended February 2018 (FY 2/18) Presentation
April 4, 2018

Tokyo Individualized Educational Institute, Inc.
(TSE 1st Section, Securities Code4745)

Highlights of Results for FY 2/18
Achievements of Medium-Term Management Plan
Dynamic Challenge 2017
Yasushi Agawa, Executive Officer and CFOTokyo Individualized Educational Institute, Inc.

2

FY 2/18 Results (Income Statement)

Growth in Sales and Income(vs. Previous Year)
Previous Year

Current Year

(FY 2/17)(FY 2/18)(Millions of yen)

YoY
Change% ChangeNet sales

17,90919,175+1,266+7.1%

Cost of sales

11,049

11,699+650+5.9%

Cost of sales ratio

61.7%

61.0%

-0.7 pts.

-

Gross profit

6,859

7,475

+615

+9.0%

Gross profit margin

38.3%

39.0%

+0.7 pts.

-

SG&A expenses

4,553

4,841

+287

+6.3%

SG&A expenses ratio

25.4%

25.2%

-0.2 pts.

-

Operating income

2,305

2,634+328+14.2%

Operating income margin

12.9%

13.7%

+0.9 pts.

-

Ordinary income

2,308

2,636+328+14.2%

Ordinary income margin

12.9%

13.7%

+0.9 pts.

-

Net income

1,438

1,744+306+21.3%

8.0%

9.1%+1.1 pts.

-

Net income margin4

FY 2/18 Results (vs. Plan)

Achieved the Plan for Net Sales
and Every Level of Income(Millions of yen)

FY 2/18Plan

FY 2/18
Results

Difference
from Plan%
Difference

Net sales

18,80019,175+375+2.0%

Operating income

2,560

2,634+74+2.9%

Operating income
margin

13.6％

13.7%

+0.1 pts.

-

Ordinary income

2,560

2,636+76+3.0%

Ordinary income
margin

13.6%

13.7%

+0.1 pts.

-

Net income

1,690

1,744+54+3.2%

9.0%

9.1%

+0.1 pts.

-

Net income margin

5FY 2/18 Overview of Results

Steady Growth in Number of Students Enrolled,Enhancement of Teacher Capabilities
Net Sales

Operating Income¥1,266 million increase YoY¥375 million higher than plan

¥328 million increase YoY¥74 million higher than plan Steady increase in sales from tuition
fees, with growth in number of newstudents well balanced among
elementary, junior high and highschool students
 Increase in sales per customer due
to enhanced proposal capabilities
backed by a larger teacher pool andgrowth in sales of short courses

 Main factor was net sales thatexceeded the plan Teacher training expenses
to handle the increase in new andenrolled students, and proactive
investment to deal withschool capacity expansion, etc.
 Made a shift in media to both control
advertising costs and increase
opportunities for customer contact

6

Net Sales and Operating Income

Achieved Sixth Consecutive Year of Increases
in Net Sales and Operating Income
21,0007000(Millions of yen)
Net sales

19,175

Operating income

19,0006000

17,90917,09417,00015,717
14,322

15,00013,0005000

4000

13,017

12,572

3000

11,000

2,217

2,305

2,634

1,7249,000

2000

1,272716

7,000

1000347
5,000

012.2月期
FY 2/1213.2月期
FY 2/1314.2月期
FY 2/1415.2月期
FY 2/1516.2月期
FY 2/1617.2月期
FY 2/1718.2月期
FY 2/18
7Teachers with Vitality Support Business GrowthHiring and Training Capable Teachers
Number of Teachers as of the End of February

9,269

5,8555,821

FY 2/1212.2期

FY
2/13
13.2期

6,289

FY
2/14
14.2期

7,082

FY
2/15
15.2期

7,453

FY2/1616.2期

8,106

FY 2/1717.2期

FY2/1818.2期

Increase of 2,1878Upgrading the Learning Environment to Handle the Increase in Students

School Openings Concentrated in High-Need Areas
Increase sales efficiency, recruiting efficiency and share in each area
Number ofSchools

Feb. 28, 2015

Feb. 29, 2016

Feb. 28, 2017

Feb. 28, 2018

218

225

230240FY 2/18
10 New School Openings

Ebisu School

Kugayama School（Shibuya-ku, Tokyo）
March 2017

（Suginami-ku, Tokyo）
December 2017

Gotanda School

Komazawa Daigaku School（Setagaya-ku, Tokyo）（Shinagawa-ku, Tokyo）
March 2017

Machiya School（Arakawa-ku, Tokyo）
June 2017

JR Ibaraki School

February 2018

Akihabara School（Chiyoda-ku, Tokyo）
February 2018

Asakadai School（Ibaraki-shi, Osaka）
June 2017（Asaka-shi, Saitama Pref.）February 2018

Ashiya School

Ningyo-cho School（Ashiya-shi, Hyogo Pref.）June 2017（Chuo-ku, Tokyo）
February 2018

Note: With the school openings in FY 2/18, TIEI
now has schools in all 23 wards of Tokyo.

FY 2/18
16 School Expansions or Relocation/Expansions
Omori School (Tokyo)

Nishiarai School

Musashi-Koganei School

Ohashi School(Tokyo)(Fukuoka Pref.)Mizonokuchi Minamiguchi
School（Kanagawa Pref.）Musashi-Kosugi School

Chitose-Karasuyama
School (Tokyo)

Ichikawa SchoolKichijoji Ekimae School

Toyonaka School(Tokyo)(Osaka)Imafuku Tsurumi School

Nippori School(Osaka)(Tokyo)Meinohama School

Takarazuka School(Fukuoka Pref.)(Hyogo Pref.)Kasukabe School

Yokohama Nishiguchi
School（Kanagawa Pref.）(Saitama Pref.)(Tokyo)(Kanagawa Pref.)(Chiba Pref.)9

Dominance Strategy and Media Shift

Efficient Expansion of Points of Customer Contact
Advertising Expenses/Ratio of Advertising Expenses to Net Sales
2,500(Millions of yen)
2,216
2,025

2,063

2,262
2,154

2,184

2,239

2,000

17.0%

16.0%

16.1%

15.9%
15.5%

15.0%

1,500
14.0%

13.7%

1,000

13.0%

13.2%
12.0%

12.2%

500

11.7%

011.0%

10.0%

FY
2/1212.2期

FY
2/1313.2期

FY
2/14
14.2期

FY
2/1515.2期

FY
2/1616.2期

FY
2/17
17.2期

FY
2/18
18.2期

10Dominance Strategy and Media Shift

Record High New Student Enrollment
Cumulative Number of New Students from March to February

19,61020,120

FY
2/14
14.2期

FY
2/15
15.2期

22,39923,98825,845

16,161
13,173

FY
2/12
12.2期

FY
2/13
13.2期

FY
2/16
16.2期

FY
2/17
17.2期

FY
2/18
18.2期

11Steady Growth at Existing Schools in Addition to New School Openings

An Increase of 27 Students per Schoolover Six Years
40,000160

Number of Enrolled Students andNumber of Students per School (End of Third Quarter)

35,00030,16530,00026,53925,00023,21233,872
31,532

155

150

144

27,885

145

23,856

137

140

134
20,000135127

15,000

129
130

125
10,000

117

119
120

5,000

115

0110

2011年11月
Nov.
20112012年11月
Nov.
2012

2013年11月
Nov.
20132014年11月
Nov.
20142015年11月
Nov.
20152016年11月
Nov.
2016

Note: Number of students enrolled in individualized instruction only(Average number of students enrolled divided by the number of schools as of November 30)

2017年11月
Nov.
201712Sixth Consecutive Year of Increases in Number of Students Enrolled

Record High Number of Students Enrolled
Average Number of Students from March to February
30,30828,48327,03625,25823,79021,337

21,908

11,335
10,254

8,838

12,357

13,507

14,925

15,849High
schoolstudents

10,993

8,646

9,891

10,202

10,774

10,787

11,451

Juniorhighschool
students
Elementaryschool
students

2,245

2,269

2,564

2,699

2,755

2,771

3,008

FY
2/12
12.2期

FY
2/13
13.2期FY
2/1414.2期

FY
2/1515.2期

FY
2/16
16.2期

FY
2/1717.2期

FY 2/1818.2期

YoY Growth in Enrollment: High school students +6.2% / Junior high school students +6.2% /Note: Number of students enrolled in individualized instruction only
Elementary school students +8.6%

13

Plan for FY 2/19 to FY 2/21

Hospitality Management 2020
(Millions of yen)

FY 2/19Plan

FY 2/20Plan

FY 2/21Plan

Net sales

19,60020,40021,200Operating income

2,637

2,790

2,875

Operating income
margin

13.5%

13.7%

13.6%
14FY 2/19 Forecast

Updated Forecast of Results for FY 2/19
(Millions of yen)

FY 2/19 Plan
Announced in
Medium-term Plan

FY 2/19Forecast

Increase/Decrease

Net sales

19,60019,800+200

Operating income

2,637

2,700+63

Operating income
margin

13.5%

13.6%

+0.1 pts.
15

FY 2/19

Initiatives for Sustained Growth
Katsuki Saito, President and Representative Director
Tokyo Individualized Educational Institute, Inc.

Net Sales and Operating Income

Aiming for Nine Consecutive Years of Increases
in Net Sales and Operating Income
23,000Net sales

Operating income

7000 of yen)
(Millions21,200
21,00019,175
19,00019,80020,4006000

17,90917,09417,00015,7174000

14,322

15,00013,0005000

12,57213,017
2,634

2,217

11,000

2,700

2,790

2,875
3000

2,305

1,724

1,272

9,000

7,000

2000

1000

716
347

5,000

0

FY12.2月期
2/12

13.2月期
FY 2/13

14.2月期
FY 2/14

15.2月期
FY 2/15

16.2月期
FY 2/16

17.2月期
FY 2/17

18.2月期
FY 2/18

19.2月期
FY 2/19（予想）(Forecast)

20.2月期
FY 2/20（計画）（Plan）

21.2月期
FY 2/21（計画）（Plan）

18

Hospitality Management 2020

Achieve sustained business growth by refining hospitalitycentered human resource development methods
GrowthStrategy

GrowthStrategy

GrowthStrategy① Systematize human resource development②

Continue opening dominant schools③Develop new services

Build a stronger, more efficient operating foundation
19

Growth①
Strategy

Systematize human resource development

Establish Total Branding of Human Resource Development

TEACHERS’ SUMMIT
Both heads of schools and teachers go throughthe PDCA cycle to improve school management.
We will work for brand penetration using thisannual schedule, called “TEACHERS’ SUMMIT.”TEACHERS’ SUMMIT ACADEMYTEACHERS’SUMMIT
Learn throughpractice×TEACHERS’SUMMIT
ACADEMY
Learn
independently20Annual Schedule
Kickoff Meeting
Plan preparation

21
Announcement of Regional Representative Schools
Departmental and individual awards, etc.

・ ・Final Briefing Select Regional Representative Schools

Best PracticePrepare and announce plan

Midterm Briefing Share progress of annual plan

WintercourseSummercourse

March

September JanuaryMayGrowthStrategy①

Systematize human resource development

TEACHERS’ SUMMIT ACADEMY
Leadership Program
TEACHERS’ SUMMIT ACADEMY
Leadership Program１

Leadership/Communication２

Backcasting approach３

Coaching skills

４

Grit (Perseverance)

５

Presentation skills

６

Graduation presentation
22

Growth ①
Strategy

Systematize human resource development

Generate Vitality by Improving the Working
Environment and Providing Opportunities for Growth
My work is worthwhile

I learn a lot in my job(Score)(Score)(Score)
TIEI
KIEI

Other
prepschools

Part-time
work
generally

I acquire communication
skills required of working
adults

TIEI
KIEI

Other
prep
schools

Part-time
work
generally

TIEI
KIEI

Other
prepschools

Part-time
work
generally

Note: Excerpt from “Survey of University Student Part-Time Workers”
Method: Internet survey (calculated from a 100-point score for each item)
Survey subjects: 973 current student part-time workers continuously employed for 3 months or more
Survey period: January 17 to February 16, 2018
Source: Oricon ME Co., Ltd.
23

Growth ②
Strategy

Continue opening dominant schools

Open Eight New Schools during FY 2/19
New School Openings

FY 2/19
8Naka-Meguro School (Tokyo)

10March 2018

Shin-Okachimachi School (Tokyo)

5240

New schools
新規開校数
Schools at
期首教室数
start of FY

New School Openings

Nishi-Funabashi School (Chiba Pref.)

230

225

March 2018

March 2018

Suita School (Osaka)
FY 2/17(Actual)

FY 2/18(Actual)

FY 2/19(Plan)

Schools at startof FY

225

230

240

New schools

5108

Schools at endof FY

230240248

May 2018 (scheduled)

At existing schools,
proactively increase
seating and floor spaceand conduct relocations
24

Growth②
Strategy

Continue opening dominant schools

Continue Opening New Schools That Dominate Their
Respective Areas, with an Aim of Eight Openings Each Year
Examples of dominant school openings(Portion of Chuo and Keio Lines)
Kichijoji
EkimaeMusashiSakai

SchoolSchoolMitakaSchool(Portion)

Kichijoji
HonchoSchoolMusashiKoganei

Student Enrollment on Chuo and Keio LinesSchool

Kugayama

New新規School

既存
Existing

ChitoseKarasuyama
SchoolChofu
Kitaguchi

Sengawa

SchoolSchool
2015年2月末
Feb.
28, 2015

2018年2月末
Feb. 28, 2018

Chofu
SchoolChuo and Keio Lines (portion)

New School Openings
Kichijoji Honcho School
June 2015

Musashi-Sakai School
September 2015

Sengawa School
June 2015

Chofu Kitaguchi School
October 2015

Kugayama School
December 2017

School openings concentrated
along Chuo and Keio lines⇒ 75% increase in students
in about 3 years
254Growth③
Strategy

Develop new services

Measures for Synergy between IndividualizedInstruction and the Four English Skills
Development of a Combination ofEST and Individualized Instruction
EST

Development of TIEI’s Original Portfolio for
Learning the Four English Skills(Formerly Online Speaker Training (OST))（予定）
Standard Offerings in All Schools (Scheduled)26

Growth ③
Strategy

Develop new services

Roll Out Programming as a Regular Course
Science Class optional summer course

Programming Course

We started a course focused on “collaborative learning” tofoster “thinking like a programmer,” which will be required for
all kinds of occupations in the future. Based on the positive
reception, we plan to roll it out as a regular course.

ご好評につき、定期講座へ展開予定。

27

4Looking beyond 2020

Create an Organization for Former TIEI Teachers

Build lasting relationships with co-workers
Consider development using the new platform as an opportunity
28

Thank you for your attention today.

Forward-Looking Statements
These materials include forward-looking statements concerning future financial
performance, including business strategies and forecasts. Such statements are
based on the Company’s judgment at the time of publication, and include inherent
risks and uncertainties. These strategies and forecasts may be amended due tochanges in the external environment or other factors.

IR Inquiries

Investor Relations Group, Accounting & Finance Department

Phone: +81-3-6911-3216

E-mail: ir@tkg-jp.com
29