Summary of 1Q Business Results for the Fiscal Year Ending February 29, 2024
[Japan GAAP] (Consolidated)
July 12, 2023
Company
Tokyo Individualized Educational Institute, Inc.
Listed on the TSE Prime
Stock Code4745
URL https://www.tkg-jp.com/en/ir/
Representative
Katsuki Saito, President and Representative Director
Contact(Post) General Manager of the Financial and Accounting Department(Name) Toru Osakabe
Tel: +81 3 6911 3216
Expected submission date of the 1Q report:
July 13, 2023
Expected date of dividend payment:−
Preparation of 1Q supplementary financial document:Yes
1Q results briefing:No(Rounded down to million yen)

1. 1Q consolidated business results for the fiscal year ending February 2024
(March 1, 2023 through May 31, 2023)(% change from the previous corresponding period)(1) Consolidated results of operations
Net sales

Operating income

Net income
attributable to parent
company

Ordinary income

million yen%

million yen%

million yen%

million yen%

Fiscal year ending
February 2024 1Q

4,076

(4.0)

(1,038)−(1,037)

−

(746)

−

Fiscal year ended
February 2023 1Q

4,248

(1.7)

(826)

−

(825)

−

(487)

−

Note: Comprehensive income
Fiscal year ending February 2024 1Q:
Fiscal year ended February 2023 1Q:(746) million yen (−%)
(486) million yen (−%)

Net income per
share

Diluted net
income per share
Yen

Yen

Fiscal year ending
February 2024 1Q(13.74)−

Fiscal year ended
February 2023 1Q(8.97)−(2) Consolidated financial position
Total assets

Shareholder’s equity
ratio

Net assets

million yen

million yen%

Fiscal year ending
February 2024 1Q

9,817

7,167

72.8

As of February 2023

11,410

8,457

74.0

Reference: Shareholders’ equity:
Fiscal year ending February 2024 1Q:
As of February 2023:

7,149 million yen
8,438 million yen

2. Dividends
Full-year dividend
End of 1Q

End of 2Q

End of 3Q

Year-end

Full year

yen

yen

yen

yen

yen

Fiscal year ended
February 2023

−

13.00

−

10.00

23.00

Fiscal year ending
February 2024

−
8.00

−

8.00

16.00

Fiscal year ending
February 2024 (forecast)
Note: Revisions to the most recent dividend forecast: None

3. Forecast of consolidated business results for fiscal year ending February 2024
(March 1, 2023 through February 29, 2024)(% change from the previous corresponding period)

OperatingincomeNet sales
million yen

Fiscal year ending
February 2024

22,164% million yen

1.7%

1,464 (19.8)

Note: Revisions to the most recent performance forecast: None

Ordinary income

Net income
attributable toparent company

million yen

million yen%

1,465 (20.1)

Net income
per share%Yen

916 (26.7)

16.88

* Notes(1) Transfer of important subsidiaries during the current quarterly cumulative consolidated accounting period: None
(2) Adoption of special accounting treatments for quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates and restatement
1) Changes in accounting policies associated with the revision of accounting standards, etc.: Yes
2) Changes in accounting policies other than 1): None
3) Changes in accounting estimates: None
4) Restatement: None(4)

Shares outstanding (common stock)1) Number of shares outstanding at theend of period (treasury stock included)2) Treasury stock at the end of period
3) Average number of shares during
period (quarterly cumulative total)

Fiscal year ending
February 2024 1Q

54,291,435

As of February 2023

54,291,435

Fiscal year ending
February 2024 1Q

136

As of February 2023

136

Fiscal year ending
February 2024 1Q

54,291,299

Fiscal year ended
February 2023 1Q

54,291,299* Quarterly financial statements are not subject to audits by certified public accountants or audit corporations.
* Explanation regarding appropriate use of business forecasts and other special instructions
Forecasts regarding future performance in this material are based on information currently available to the Company
and certain assumptions that the Company deems to be reasonable at the time this report was prepared, and are notintended as a guarantee that the Company will achieve these targets. Further, actual results may differ significantly
from the forecasts due to various factors. For notes in using earnings projections and assumptions for premises
thereof, refer to page 3 of the Attachment “1. Qualitative Information on Quarterly Results (3) Explanation of theForecast of Consolidated Business Results and other Future Forecasts.
(Information on how to obtain supplementary financial documents to quarterly results)
Supplementary financial documents to quarterly results (fact sheet) will be posted on the Company’s website on July12, 2023.

Contents of Attachment

1.

Qualitative Information on Quarterly Results .................................................................................. 2(1) Explanation of Operating Results.................................................................................................... 2(2) Explanation of Financial Standing ................................................................................................... 3(3) Explanation of the Forecast of Consolidated Business Results and other Future Forecasts .......... 3

2.

Quarterly Consolidated Financial Statements and Main Notes ....................................................... 4(1) Quarterly Consolidated Balance Sheet ........................................................................................... 4(2) Quarterly Consolidated Statements of Operations and Quarterly Statement ofComprehensive Income .................................................................................................................. 5(3) Notes Concerning Quarterly Consolidated Financial Statements ................................................... 7(Notes Regarding the Company as a Going Concern).................................................................... 7(Notes on Significant Changes in the Amount of Shareholders’ Equity) .......................................... 7(Changes in Accounting Policies).................................................................................................... 7(Segment Information, etc.) ............................................................................................................ 7

3.

Other Notes .................................................................................................................................... 8

Circumstances Concerning Orders Received, Sales, and Production ....................................................... 8- 1 -1. Qualitative Information on Quarterly Results(1) Explanation of Operating Results
Information related to future events in the text are based on judgments made by the Company at the end of thequarterly consolidated accounting period.
With regard to the Japanese economic outlook for the first quarter of the fiscal year ending February 2024, an
improving employment and income environment, coupled with the impact of lowering COVID-19 to a Category V
infectious disease under the Act on the Prevention of Infectious Diseases and Medical Care for Patients with
Infectious Diseases and other policies has boosted consumer spending and corporate investment trends, and a
gradual economic recovery is expected to continue. However, the global economy continues to lean towards
monetary tightening policies which threaten to result in a slowdown in overseas economies, dragging down Japan’s
economy with it, and there is a need to remain vigilant in the face of rising prices and fluctuations in financial andcapital markets.
With regard to the education system in Japan, the GIGA School Program entered its third year in 2023 since its fullfledged launch in 2021. This poses questions on how best to leverage the device for every student, namely in theform of enriching optimized learning experiences for the individual, the use of AI, and the increased application of
ICT, DX and other digital solutions in education. With regard to university entrance exams, the number of applicants
and universities using the Common Test for University Admissions is on the rise. University entrance exams arealso becoming increasingly diverse in other ways, as seen in the increased use of private English exams and midterm university admissions, such as General Selection and General Recommendation Type Selection admissions.
The prep school market faces the need to promptly respond to these changes, and competition among firms,
including new entrants from other industries, is only set to intensify.
Amidst these circumstances, we have looked to provide teaching services closely aligned to individual customer
needs based on our core corporate philosophy: The confidence that you can do it if you try; The joy of taking on a
new challenge; The importance of having dreams - With these three educational ideals and hospitality as thelinchpin of our corporate activities, we shall contribute to a happy future for humanity.
Net sales for 1Q of the fiscal year ending February 2024 was 4,076 million yen (down 4.0% year-on-year) due tothe impact of reduced inquiry flow from external sites, which had been raised as an issue in the previous term. Our
business activities focused primarily on the pressing issue of overhauling our marketing efforts, and educational
development addressing same-year entrance exams and junior high school entrance exams. While efforts tooverhaul our marketing have had some impact, leveraging this to drive a recovery in business performance remains
an issue. In terms of educational development, measures were rolled out to stimulate demand for mid-term
university admissions study courses in the lead up to the summer recruitment drive. With regard to school
expansion, we integrated the Funabashi North Exit School into the Funabashi Station School in March 2023 in an
aim to improve the value of our service proposition to customers. Details into the factors causing year-on-yearchanges in net sales and operating profit and loss are outlined below.
<Primary factors resulting in changes in net sales>・ While per-customer net sales increased as a result of the revised tuition fees introduced in May, a decline in thenumber of enrolled students reduced net sales to 4,076 million yen （down 4.0% year-on-year）.
・ While the number of cancellations was kept level with the same period of the previous year, enrollment efforts saw
a decline in the number of inquiries from external sites, reducing the average number of enrollments for the firstquarter to 27,852 (down 5.6% year-on-year).

- 2 -<Primary factors resulting in changes in operating profit and loss>
・ An operating loss of 1,038 million yen (a decline of 212 million yen year-on-year) was recorded.
・ The primary factors causing this include a decline in profits resulting from reduced revenue, an increase indepreciation and associated operating and maintenance expenses driven by system investments, and increasedlabor costs resulting from proactive hiring efforts to resolve business challenges.
(Note that first quarter operating income for the Company tends to be negative due to how the business is
structured and seasonal factors.)
Further, the main line of business for our Group is the individualized teaching business. Net sales, segment profit,and other totals have been omitted for other business lines as these represent a small fraction of total earnings.

(2) Explanation of Financial Standing[Assets]
Total assets at the end of the first quarter of the current fiscal year were 9,817 million yen, a 1,592 million yen(14.0%) decrease from the end of the previous fiscal year.
Current assets were 5,138 million yen, a 1,799 million yen (25.9%) decrease from the end of the previous fiscal
year. Although “other” current assets increased by 155 million yen, this decline is primarily attributed to adecrease of 1,779 million yen in cash and deposits, and a 177 million yen decline in accounts receivable.
Tangible fixed assets were 777 million yen, a 3 million yen (0.5%) increase from the end of the previous fiscal
year. This increase was primarily due to the replacement of equipment at existing schools.
Intangible fixed assets were 1,679 million yen, an 87 million yen (4.9%) decrease from the end of the previous
fiscal year. This decrease was primarily due to depreciation recorded for a student placement system and a billing
platform system.
Investments and other assets were 2,221 million yen, a 290 million yen (15.1%) increase from the end of theprevious fiscal year. This increase was primarily the result of an increase in other assets of 312 million yen,offsetting a decrease of 21 million yen in deposits and security money.
[Liabilities]
Total liabilities at the end of the first quarter of the current fiscal year were 2,650 million yen, a 303 million yen(10.3%) decrease from the end of the previous fiscal year. This decline was primarily caused by a decrease inaccrued tax payable, etc. of 298 million yen, and a 243 million yen decrease in “other” current liabilities, which
outweighed an increase of 65 million yen in the reserve for bonuses.
[Net assets]
Net assets at the end of the first quarter of the current fiscal year were 7,167 million yen, a 1,289 million yen(15.2%) decline from the end of the previous fiscal year. This decline was the result of surplus dividend paymentsof 542 million yen, and quarterly net losses attributable to owners of the parent company totaling 746 million yen.

(3) Explanation of the Forecast of Consolidated Business Results and other Future Forecasts
With regard to the forecast of consolidated business results for the term ending February 2024, there have been nochanges to the forecast of consolidated business results announced for the full year in the Summary of BusinessResults for the Year Ended February 28, 2023 [Japan GAAP] (Consolidated) disclosed April 10, 2023.

- 3 -

2.

Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheet(Unit: Thousands of yen)Previous consolidated
fiscal year
(February 28, 2023)
AssetsCurrent assets
Cash and deposits
Accounts receivable
Inventories
Other
Allowances for bad debts
Total current assets
Fixed assets
Tangible fixed assets
Intangible fixed assets
Goodwill
Software
Other
Total intangible fixed assets
Investments and other assets
Lease and guarantee deposits
Other
Total investments and other assets
Total fixed assets
Total assets
Liabilities
Current liabilities
Accounts payable
Accrued tax payable, etc.
Contractual liabilities
Reserve for bonuses
Reserve for officer bonuses
Other
Total current liabilities
Fixed liabilities
Other
Total fixed liabilities
Total liabilities
Net assets
Shareholder's equity
CapitalCapital surplus
Retained earnings
Treasury stock
Total shareholder's equity
Minority interest
Total net assets
Total liabilities and net assets- 4 -First quarter consolidated
accounting period(May 31, 2023)

6,069,618
483,436
31,960361,312(7,739)6,938,587

4,290,043
306,242
34,731
516,780(8,955)
5,138,841

774,422

777,950

163,555
1,467,161
136,261
1,766,978158,444
1,439,435
81,977
1,679,857

1,584,530
345,792
1,930,323
4,471,724
11,410,311

1,563,174
657,932
2,221,106
4,678,914
9,817,756

8,471
339,935
902,548
122,062
5,670
1,544,310
2,922,998

13,37941,612
1,070,010
187,691
5,670
1,300,938
2,619,302

30,30030,3002,953,299

30,91130,9112,650,214

642,157
1,013,565
6,782,542(121)
8,438,144
18,8688,457,012
11,410,311

642,157
1,013,565
5,493,528(121)
7,149,130
18,411
7,167,542
9,817,756

(2) Quarterly Consolidated Statements of Operations and Quarterly Statement of Comprehensive Income
Quarterly Consolidated Income Statements
First quarter consolidated cumulative period(Unit: Thousands of yen)Previous first quarter
consolidated
cumulative period(March 1, 2022
to May 31, 2022)
Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Gain on disposal of unpaid dividends
Subsidy income
Gain on bad debts recovered
Other
Total non-operating income
Ordinary loss
Quarterly losses before income taxes
Corporate income, inhabitant and enterprise taxes
Adjustment of corporate taxes, etc.
Total accrued tax payable
Quarterly net losses
Quarterly net income (loss) table to minority interests
Quarterly net losses attributable to owners of the parent
company- 5 -Current first quarter
consolidated
cumulative period(March 1, 2023
to May 31, 2023)

4,248,251
3,280,123
968,128
1,794,462(826,334)

4,076,748
3,262,204
814,544
1,853,410(1,038,866)

1
247
285
717
4
1,255
(825,078)(825,078)(86,329)(252,007)(338,336)(486,742)
446

1
353
−
368
156
880
(1,037,986)(1,037,986)
19,351(310,780)(291,428)(746,557)(456)(487,188)(746,100)

Quarterly statement of comprehensive income
First quarter consolidated cumulative period(Unit: Thousands of yen)Previous first quarter
consolidated
cumulative period(March 1, 2022
to May 31, 2022)
Quarterly net losses
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income attributable toowners of the parent company
Quarterly comprehensive income attributable tominority interests- 6 -Current first quarter
consolidated
cumulative period(March 1, 2023
to May 31, 2023)(486,742)(486,742)(746,557)(746,557)(487,188)(746,100)

446

(456)

(3) Notes Concerning Quarterly Consolidated Financial Statements(Notes Regarding the Company as a Going Concern)
Not applicable(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable(Changes in Accounting Policies)(Application of Accounting Standards in Market Value Calculations)
The “Implementation Guidance on Accounting Standards for Fair Value Measurement” (ASBJ Guidance No. 31
June 17, 2021. Hereafter, “Implementation Guidance on Accounting Standards for Fair Value Measurement”)
was applied from the beginning of the first quarter of the fiscal year ending February 2024. In accordance withthe provisions on transitional handling in item 27-2 of the Implementation Guidance on Accounting Standards for
Fair Value Measurement, the new accounting standards prescribed by the Implementation Guidance on
Accounting Standards for Fair Value Measurement shall apply prospectively. Further, said changes shall haveno effect on quarterly consolidated financial statements.
(Segment Information, etc.)[Segment Information]
The main line of business for our Group is the individualized teaching business. Net sales, segment profit, andother totals have been omitted for other business lines as these represent a small fraction of total earnings.

- 7 -3. Other Notes
Circumstances Concerning Orders Received, Sales, and Production(1)

Production and orders received
The Group is primarily involved with providing classes to students, and does not record production and orders
received.

(2)

Sales
Sales performance by segment for the current first quarter consolidated cumulative period is as follows:
Current first quarter consolidated cumulative period
Segment name

Net sales(thousands of yen)

Composition ratio(%)

Year-on-year comparison(%)

Individualized teaching
Primary school students

528,099

13.0

102.4

Junior high school students

1,442,357

35.4

96.6

High school students

2,022,299

49.6

94.6

3,992,757

97.9

96.3

83,991

2.1

83.6

4,076,748

100.0

96.0

Total individualized teaching
Other business totals
Total(Note)

Other business activities include science labs, writing classes, online-only individualized teaching, in-school
tutoring and corporate human resource development activities provided by HRBC Co., Ltd.

- 8 -