Medium-to-Long Term Vision
New Medium-Term
Management Plan
President and Representative Director
Katsuki Saito

Tokyo Individualized Educational Institute, Inc.
October 12, 2020

Agenda1. TIEI’s strengths
2. Medium-to-long term vision
VISION2030
3. New medium-term business plan
Hospitality Management 2023
(FYE February 2022 to FYE February 2024)© 2020 Tokyo Individualized Educational Institute, INC.

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1. TIEI’s strengths© 2020 Tokyo Individualized Educational Institute, INC.

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Our history

Continuously enhancing our individualized service
to meet the changing times
1985Founding2007
Join Benesse GroupExpansion and penetrationof individualized prepschools

2014
Hospitality Mgt

Homogenization ofpersonalized instruction

Heightened competition/teacher shortage(Millionsof yen)
21,00019,000

Framework to gather
and train teachers

17,000Teacher’s Summit
Teacher’s Summit Academy
Etc.

15,00013,00011,000Three educational ideals and hospitality

9,000

7,000

Net sales
4.5月期
FY
5/04

5.5月期
FY
5/05

6.5月期
FY
5/06

7.5月期
FY
5/07

8.2月期
FY
2/08

9.2月期
FY
2/09

* 9-month fiscal year© 2020 Tokyo Individualized Educational Institute, INC.

10.2月期
FY 2/1011.2月期
FY 2/1112.2月期
FY 2/1213.2月期
FY 2/1314.2月期
FY 2/1415.2月期
FY 2/15

16.2月期
FY 2/16

17.2月期
FY
2/1718.2月期
FY
2/18

19.2月期
FY
2/195,000
20.2月期
FY
2/20

3Number of teachers

Sustained growth while maintaining quality andvolume of superior teachers[Number of teachers]*Average annual number of part-time teachers▶

Hospitality
management(Teachers)© 2020 Tokyo Individualized Educational Institute, INC.

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Rising acceptance into top schools

Maintaining teacher quality and volume raises educationalservice[Acceptance into university vs.2014]

197%

200%

188%

197%

190%

170%

180%

Pass rate

174%

170%

20142020

160%

150%

135%

140%

[Schools]
National universities
Waseda, Keio, Sophia
GMARCH
4 top Kansai universities
Seinan Gakuin
Nanzan

127%

130%

120%

110%

100%

100%
14年
2014

15年
2015

16年
2016

© 2020 Tokyo Individualized Educational Institute, INC.

17年
2017

18年
2018

19年
2019

20年
2020

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Highly competitive

Overwhelming instructor
personnel platform
System brings
university students
together and spurs
growth throughhuman interaction

Optimal matching of teachers and students© 2020 Tokyo Individualized Educational Institute, INC.

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SDGs

Offers growth opportunities systematically tostudents and contributes to society’s future

Japan Business Federation“Keidanren SDGs”© 2020 Tokyo Individualized Educational Institute, INC.

Foreign Ministry“JAPAN SDGsAction Platform”

72. Medium-to-longterm vision
VISION2030© 2020 Tokyo Individualized Educational Institute, INC.

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Environmental awarenessSociety has rapidly changed and diversified.
Old assumptions no longer determine the future.

● Technological progress● Globalization● Diversified sense ofvalues and lifestyles● Environmental issues● Falling birthrates● Shrinking and graying
population© 2020 Tokyo Individualized Educational Institute, INC.

9Society’s needs

Independence, learning on one’s own with a visionof self and society.
Communication ability, in order to work withdiversified community.
Crucial factors in selecting new workers

Sustainable development goals

Communication ability

82.4%

No.1 for 16 years

Independence

64.3%

No.2 for 10 years

Source: Japan Business Federation, FY18
corporate survey on selection
criteria for new graduates© 2020 Tokyo Individualized Educational Institute, INC.

Raising a generation for a futuresustainable society wherepartnerships can be nurtured
10Coronavirus pandemicCoronavirus pandemic ischanging society irreversibly●New values and lifestyles
from longer times at home
●Lifestyle change fromgreater hygiene awareness.
Avoiding the 3Cs.
●Changes in global
industrial structure andrise in remote society© 2020 Tokyo Individualized Educational Institute, INC.

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Online education trend

Pandemic has put sudden spotlight on
online education even at public schools

Use of PCs
at Japanese schools
Among 31 OECD nations

No.31

Source: ICT FAMILIARITYQUESTIONNAIRE FOR PISA 2018

© 2020 Tokyo Individualized Educational Institute, INC.

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Corporate Identity

The confidence that you can do it if you try
The joy of taking on a new challenge
The importance of having dreams
With thesethree educational ideals and hospitality
as the linchpin of our corporate activities,
we shall contribute toa happy future for humanity.

© 2020 Tokyo Individualized Educational Institute, INC.

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VISION2030

A Co-created Future
Mutual Education
Through Hospitality Management© 2020 Tokyo Individualized Educational Institute, INC.

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VISION2030 target (individualized instruction)

Doubling KPI in ten years
Teachers

approx.10,000

Over20,000© 2020 Tokyo Individualized Educational Institute, INC.

Enrolled students
approx.30,000

Over60,000

Net sales

approx.20 billion yen

Individualized
instruction businessNet sales
Over40 billion yen
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Road map

Double-track business domains,establish shared platforms

VISION2030(Billionsof yen)

45450

Pandemic

New Medium-Term
Management Plan
A Co-created Future

40400

Next management
plan

Human resources
development

Accelerate
growth strategy
based onVISION2030

35350

STEAM
30300

Individualized
instruction

21.2

25250

billionyen
20200

Segment growth image (net sales)

15150
FY
2/20
20.2期

FY
2/21
21.2期

FY22.2期
2/22FY23.2期
2/23© 2020 Tokyo Individualized Educational Institute, INC.

FY 24.2期
2/24

FY
2/25
25.2期

FY
2/26
26.2期

FY
2/27
27.2期

FY
2/28
28.2期

FY
2/29
29.2期

FY 2/30
30.2期

FY 2/31
31.2期

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3. New medium-term
management plan
Hospitality
Management 2023
FYE February 2022 to FYE February 2024

© 2020 Tokyo Individualized Educational Institute, INC.

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New medium-term management plan: Outline

VISION2030 “A Co-created Future”
New medium-term management plan

Hospitality Management 2023
Updating instructor

Updating ICT-based

personnel platformeducation services

Reform of business infrastructure© 2020 Tokyo Individualized Educational Institute, INC.

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Growth strategy

Instructor-led school creation
Reinforcement of Teachers’ Summit(annual school plan)

Support for growth of school managers(employees) leading school activity
Hospitality management
follow-up✓ All school managers
have JHMA AHC licenses✓ PDCA contents
developed for
hospitality management
and will be rolled out forschool managers© 2020 Tokyo Individualized Educational Institute, INC.

Development of feedback
to improve skills✓ “Feedback skill-up
contents” developedwith ManagementService Center20

Growth strategy
Teachers’ Summit

Leadership ProgramHybrid of physical and online teaching●FYE February 2021: Online launch
Teachers’ Summit Academy Leadership Program© 2020 Tokyo Individualized Educational Institute, INC.

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Growth strategy
Job search support seminar /Teacher employment support seminar

Expanding First Career support
Teacher support by school year (FYE Feb 2020)✓ Development oftraining that
university student
teachers can join
✓ Expansion ofalumni-led job
search support
seminars byindustry© 2020 Tokyo Individualized Educational Institute, INC.

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Growth strategy

Hybrid physical/online classes
boost customer value

Online classes✓ Mixed physical/online
individualized classes
for up to twostudents✓ Greater convenience
Effective use of time /no worry over going out tonight classes

New schools

Aiming for 8 new schools per year based on dominant strategy© 2020 Tokyo Individualized Educational Institute, INC.

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Growth strategy

Using strengths to advanceto new branch locations
All Online individualized instruction (tentative title)
Knowhow in hiring andtraining teachers
Optimal personalizedteaching methods

To be launched in three years
Benesse Writing Classes online
Highly effective
independent curriculum
Launched in September 2020
© 2020 Tokyo Individualized Educational Institute, INC.

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Infrastructure strategy
Reform ofbusiness
infrastructure

Reform of ICT infrastructure basedon medium-to-long-term growth

Medium/long-term system concept(1) Changing customer reception
service to raise customer
convenience(2) Creating and analyzing a digital
database of available data andproviding feedback to customers
and company
Specific items

ICT investment: 3 billion yen in 5 years✓ Responding to likely digitization ofeducation✓ Using technology to aid challenges innew fields© 2020 Tokyo Individualized Educational Institute, INC.

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Numerical plan
TIEI (consolidated)Year ending
Feb 2021(FY20) forecast

Year ending
Feb 2022 (FY21)
forecast

Year ending
Feb 2023 (FY22)
targetYear ending
Feb 2024 (FY23)
targetActual

18,70022,132

23,85825,719YoY-2,561

3,432

1,726

1,861

% YoY

88.0%

118.4%

107.8%

107.8%

Actual

260

2,204

2,632

3,105

YoY-2,629

1,944

428

473

% YoY

9.0%

847.7%

119.4%

118.0%

Operating income
margin

1.4%

10.0%

11.0%

12.1%

Millions of yen

Net sales

OperatingincomeTarget assumption: Pandemic impact
 No lesson suspensions due to temporary school closure or state of emergency
order New normal of virus prevention measures alongside economic activity tocontinue until at least mid 2021

© 2020 Tokyo Individualized Educational Institute, INC.

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Shareholder return policy◆ We will maintain at least 50% dividend payout ratio.
◆ We will strive for stable profit payback with eye on earnings,
growth investment and business sustainability.
Dividend per share / dividend payout ratio
Year ending
Feb 2021

Year ending
Feb 2017

Year ending
Feb 2018

Year ending
Feb 2019

Year ending
Feb 2020

Full-year
dividend

26 yen26 yen26 yen26 yen26 yenDividend
payout ratio

98.1%

80.9%

73.1%

74.4%

―Mid-year dividend

13 yen13 yen13 yen13 yen*13 yenEnd-of-year
dividend

13 yen13 yen13 yen13 yen*13 yen(forecast)(actual)*Announced Oct 9© 2020 Tokyo Individualized Educational Institute, INC.

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Our ESG approach

Humanresources

Governance

Human vitality is the source of business growth and leads directly to an
improvement in corporate value. Based on that thinking, we are working
to increase the value of working at our company.

Offering support and growth
opportunities for teachers

Promoting healthmanagement〇 Teacher’s Summit〇 Teacher’s Summit Academy〇 Certification as Healthand Productivity
Enterprise 2020

We will strive for swift decisions, sound management, improved
transparency, increased value for all stakeholders, and higher corporate
value.

Strengthening governance〇 Directors increased from 5 to 7 persons in May 2020.
Independent external officers raised from 4 to 5,
bringing their ratio to 42.9%.
© 2020 Tokyo Individualized Educational Institute, INC.

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VISION2030

A Co-created Future
Mutual Education
Through Hospitality Management© 2020 Tokyo Individualized Educational Institute, INC.

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Disclaimer

Earnings forecasts and other information related to projections andstrategies contained in this material are forecast by the company basedon currently available information and certain assumptions judged to bereasonable. We make no representations or guarantees with respect tothe accuracy or completeness of this material.
Actual results may differ significantly from the forecast due to various
risk factors and uncertainties. The company is not liable for anyrepercussions or damage caused by information in this material.
This material may not be copied or forwarded without permission for any
purpose.
This material was created to provide an understanding of the company
and is not intended to solicit investment in the company. Investment
decisions should be made at your own discretion.

© 2020 Tokyo Individualized Educational Institute, INC.

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