Summary of First Half Business Results for Fiscal Year Ending February 28, 2022
[Japan GAAP] (Consolidated)
October 14, 2021
Company
Tokyo Individualized Educational Institute, Inc.
Listed on the TSE 1
Stock Code4745
URL https://www.tkg-jp.com/en/ir/
Representative
Katsuki Saito, President and Representative Director
Contact
Takeharu Tsutsumi, Director
Tel: +81 3 6911 3216
Expected submission date of the 1H report:
October 14, 2021
Expected date of dividend payment:
November 15, 2021
Preparation of 1H supplementary financial materials:
Yes
1H results briefing:
Yes (For analysts/institutional investors)(Rounded down to million yen)

1. First half consolidated business results for fiscal year ending February 2022
(March 1, 2021 through August 31, 2021)(1) Consolidated results of operations(% change from the previous corresponding period)

Net sales

Operating income

Net income
attributable to parent
company

Ordinary income

million yen%

million yen%

million yen%

million yen%

1H, Fiscal year ending
February 2022

10,890

33.0

695

−

699

−

427

−

1H, Fiscal year ended
February 2021

8,186

−

(828)

−

(798)

−

(711)

−

Note: Comprehensive income
1H, Fiscal Year ending February 2022:
1H, Fiscal year ended February 2021:

428 million yen (−%)
(712) million yen (−%)

Net income per share

Diluted net income
per share

Yen

Yen

1H, Fiscal year ending
February 2022

7.88

−

1H, Fiscal year ended
February 2021

(13.11)−

Note: In the fiscal year ended February 2021, provisional accounting practices were finalized in relation to a corporate
merger. Figures for the first half of the fiscal year ended February 2021 reflect the provisional accounting
practices that were finalized.

(2) Consolidated financial position
Total assets

Net assets

Shareholder’s equity
ratio

Million yen

Million yen%

As of August 2021

11,830

8,170

68.9

As of February 2021

11,687

8,447

72.2

Reference: Shareholders’ equity:
As of August 31, 2021:
As of February 28, 2021:

8,155million yen
8,433million 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 2021

−

13.00

−

13.00

26.00

Fiscal year ending
February 2022

−

13.00
−

13.00

26.00

Fiscal year ending
February 2022 (forecast)
Note: Revisions to the most recent dividend forecast: None

3. Forecast of consolidated business results for fiscal year ending February 2022
(March 1, 2021 through February 28, 2022)(% change from the previous corresponding period)

OperatingincomeNet sales
million yen

Fiscal year ending
February 2022

22,132% million yen

15.6

2,204

%

259.3

Note: Revisions to the most recent performance forecast: None

Ordinary income

Net income
attributable toparent company

million yen

million yen%

2,205 240.4

Net income
per share%yen

1,413 458.5

26.03

* Notes(1)

Transfer of important subsidiaries during the first half of fiscal year ending February 2022: 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.: None
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 the end(Number of shares)
As of August 31, 2022

54,291,435 As of February 28, 2021

54,291,435

2) Treasury stock at the end of period

As of August 31, 2022

136 As of February 28, 2021

136

3) Average number of shares during period

1H, Fiscal year ending
February 2022

of period (treasury stock included)(quarterly cumulative total)

54,291,299

1H, Fiscal year ending
February 2021

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 report are based on information currently available to the Company andcertain 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 4 of the Attachment “1. Qualitative Information on Quarterly Results (3) Explanation of theForecast of Consolidated Business Results and other Future Forecasts.

Contents of Attachment

1. Qualitative Information on First Half 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 .......... 4

2. Quarterly Consolidated Financial Statements and Main Notes ............................................................... 5(1)

Quarterly Consolidated Balance Sheets ......................................................................................... 5(2)

Quarterly Consolidated Statements of Operations and Quarterly Statement ofComprehensive Income .................................................................................................................. 6(3)

Quarterly Consolidated Cash Flow Statements .............................................................................. 8(4)

Notes Concerning Quarterly Consolidated Financial Statements ................................................... 9(Notes on Quarterly Consolidated Income Statements) .................................................................. 9(Notes Regarding the Company as a Going Concern).................................................................... 9(Notes on Significant Changes in the Amount of Shareholders’ Equity) .......................................... 9(Additional Information) ................................................................................................................... 9(Segment Information, etc.) ............................................................................................................ 9(Business Combinations, etc.) ...................................................................................................... 10

3. Other Notes ........................................................................................................................................... 11
Circumstances Concerning Orders Received, Sales, and Production .......................................... 11- 1 -1. Qualitative Information on First Half Results(1) Explanation of Operating Results
Information related to future events in this report is based on judgments made by the Company as of August 31,
2021.
The provisional accounting treatment applied to the first half of fiscal year ended February 2021 for the businesscombination with HRBC Co., Ltd. on January 24, 2020 was finalized at the end of fiscal year ended February 2021.
The amounts after revision for finalization are therefore used in the analysis and comparison with the consolidated
results for the first half of the previous fiscal year.
The Japanese economic outlook for the first half of the current fiscal year remains severe due to continued effectsof the novel coronavirus outbreak. While progress is being made on vaccination, the virulent Delta variant isspreading. A State of Emergency has been declared and other key measures implemented in various regions toprevent infection and spread, and it is still difficult to predict the future.
The prep school market is undergoing a period of significant change, with amendments to Japan's school
curriculum guidelines for junior high schools to be introduced in FY2021, the digitization of teaching environments
promoted through the GIGA school concept, and increased needs for online education services. Further, while
individualized teaching and other forms of personalized learning tailored to the needs of each student are becoming
increasingly important, the business environment remains severe with intensifying competition from new entrants
from outside the industry.
Amidst these circumstances, we have looked to provide teaching services that are closely attuned to the needs ofeach student centered around our corporate philosophy: “The confidence that you can do it if you try; The joy oftaking on a new challenge; The importance of having dreams - With these three educational ideals and hospitality
as the linchpin of our corporate activities, we shall contribute to a happy future for humanity.” The current fiscal year
represents the first year of our mid- to long-term vision, “VISION 2030,” and our new medium-term management
plan “Hospitality Management 2023.” We will use this year to propel the business forward, accelerating progress
toward the realization of “VISION 2030” based on two core pillars: Business growth and promotion of the strategy
laid out in the new medium-term management plan.
During the first half of the current fiscal year, the spread of the novel coronavirus (COVID-19) necessitatedcontinued precautions. The Company kept all schools operating as normal while prioritizing the peace of mind andsafety of students and employees alike above all else, implementing exhaustive protective measures against the
spread of COVID-19. We also continued to provide online individualized teaching services so students could attend
personalized learning classes from their own homes, adding high value in improving convenience and learning
efficiency, while also ensuring a greater level of peace of mind and safety.
For employee development, the backbone of our teaching services, our TEACHER’S SUMMIT was held online.
This is a cocreation program where employees and teachers learn and grow together through practical learning
exercises, and we are making continued efforts to further bolster these activities. In site development, we have
employed a dominant strategy focused primarily on metropolitan centers looked to boost the strength of our brandwithin the region. In March 2021, we opened two Tokyo Individualized Educational Institute schools (TIEI) in Tokyo,
the Chitose Karasuyama South Exit School and the Kokuryo School. In June 2021, TIEI opened two more schools,
the Musashi Nakahara School in Kanagawa and the Mita School in Tokyo. Two new TIEI schools in Tokyo wereopened in September, the Kanamachi School, and October, the Myogadani School. While the number of newstudents has been impacted by the COVID-19 pandemic, average student enrollments during the period reached
32,069 during the first half, an increase of 13.0% year-on-year. This represents 0.6% growth from the average
student enrollments of 31,888 during the first half of the previous fiscal year, and a return to the pre-COVID-19
level.
- 2 -Persistence in these business activities resulted in a 2.7 billion yen (33.0%) year-on-year increase in net sales forthe first half of the current fiscal year, to 10.9 billion yen, boosted by increase in total tuition fees from higher student
enrollments and strong sales from summer courses.
Despite increases in rent, labor costs, and other fixed expenses, and an increase in teacher salaries, operating
income was 695 million yen (compared to an operating loss of 828 million yen in the first half of the previous fiscal
year), ordinary income was 699 million yen (compared to an ordinary loss of 798 million yen in the first half of theprevious fiscal year), and quarterly net income attributable to owners of the parent company was 427 million yen(compared to first half net loss attributable to owners of the parent company of 711 million yen in the first half of theprevious fiscal year).
The individualized teaching business is the only business segment reported. Other business segments have been
omitted because they are not of material significance.
On July 9, 2021, the Company received the results of the primary determination of applicability for maintaining
listing under the new market segments from the Tokyo Stock Exchange. This confirmed that the Company meetsthe requirements for listing on the Prime Market. Based on this determination, the Board of Directors approved
application for Prime Market selection and submitted the application materials to the Tokyo Stock Exchange on
September 6.
The Company will continue our efforts to disclose information appropriately in a timely manner and engage insincere investor relations to enhance corporate value over the medium and long term and earn the support of allshareholders.

(2) Explanation of Financial Standing
1) Assets, Liabilities, and Net Assets
AssetsTotal assets as of August 31, 2021 were 11,830 million yen, a 143 million yen (1.2%) increase from the end of theprevious fiscal year.
Liquid assets were 7,419 million yen, a 153 million yen (2.0%) decline from the end of the previous fiscal year.
This decline was primarily caused by a decrease of 1,260 million yen in cash and deposits, which was notcovered by the increase of 1,078 million yen in accounts receivable.
Tangible fixed assets were 832 million yen, a 15 million yen (1.9%) increase from the end of the previous fiscal
year. This increase was primarily due to capital investments for opening new schools and relocating existing
schools.
Intangible fixed assets were 1,619 million yen, a 282 million yen (21.1%) increase from the end of the previous
fiscal year. This increase was primarily due to capital investments in development of a student placement system
and a billing platform system.
Liabilities
Total liabilities as of August 31, 2021 were 3,660 million yen, a 420 million yen (13.0%) increase from the end of
the previous fiscal year. This increase was primarily due to increases of 420 million yen in accrued expenses and497 million yen in advances received, and a decrease of 475 million yen in Other (accounts payable-other, etc.).

- 3 -Net assets
Net assets as of August 31, 2021 were 8,170 million yen, a 277 million yen (3.3%) decline from the end of theprevious fiscal year. This decline was the result of surplus dividend payments of 705 million yen and 427 million
yen in first half net income attributable to owners of the parent company.
2) Cash Flows
Cash and cash equivalents as of August 31, 2021 (hereafter, “Cash”) were 5,302 million yen, a decline of 1,260
million yen from the end of the previous consolidated fiscal year. The status of each type of cash flow and themain factors involved are described below.
Cash flow from operating activities
Cash used in operating activities during the first half of fiscal year ending February 2022 was 60 million yen(2,264 million yen in cash expenditures during the first half of the previous fiscal year). This mainly resulted from699 million yen in first half income (loss) before income taxes, 94 million yen in depreciation and amortization
expenses, a decrease of 54 million yen in reserve for shareholder benefits, increases of 1,078 million yen inaccounts receivable and 497 million yen in advances received, and payment of 215 million yen in income taxes,
etc.
This resulted in a reduction in cash used of 2,203 million yen, compared to the first half of the previous fiscal year,
due to increases of 1,635 million yen in first half income (loss) before income taxes, 109 million yen in accounts
receivable, 339 million yen in consumption tax payable, etc., and payment of 367 million yen in income taxes, etc.
Cash flow from investing activities
Cash used in investing activities during the first half of fiscal year ending February 2022 was 493 million yen (538million yen in cash expenditures during the first half of the previous fiscal year). This mainly resulted fromexpenditures of 110 million yen for acquisition of tangible fixed assets for opening new schools, relocating existing
schools, and other such investments, 33 million yen in expenditures for lease and guarantee deposits, and 333
million yen in expenditures for acquisition of intangible fixed assets for building a student placement system andbilling platform system.
A reduction in expenditures on the acquisition of tangible fixed assets, expenditures for lease and guarantee
deposits, and other expenditures resulted in a reduction in expenditures of 45 million yen, compared the first halfof the previous fiscal year.
Cash flow from financing activities
Cash used in financing activities during the first half of fiscal year ending February 2022 was 705 million yen (705million yen in cash expenditures during the first half of the previous fiscal year). This resulted from the payment
dividends.

(3) Explanation of the Forecast of Consolidated Business Results and other Future Forecasts
There have been no changes to the forecast of consolidated business results for fiscal year ending February 2022
announced on April 12, 2021 for the full year in the Summary of Business Results for the Year Ended February 28,
2021 [Japan GAAP] (Consolidated).

- 4 -2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheets(Unit: Thousands of yen)
End of previous
consolidated
fiscal year
(As of February 28, 2021)

End of the first half of thecurrent consolidated
fiscal year
(As of August 31, 2021)

6,562,644
562,627
30,677425,737(9,194)
7,572,492

5,302,173
1,641,601
36,304448,343(9,414)
7,419,008

817,170

832,440

204,444
951,430
180,823
1,336,697

194,222
1,200,365
224,705
1,619,292

1,603,746
357,367
1,961,114
4,114,982
11,687,475

1,615,874
344,325
1,960,200
4,411,933
11,830,942

9,176
895,077
312,541
727,744
134,360
60,547
1,065,287
3,204,734

14,1051,315,947
331,815
1,224,790
147,132
5,902
589,296
3,628,991

35,16935,1693,239,903

31,431
31,4313,660,422

642,157
1,013,565
6,777,605(121)
8,433,207
14,364
8,447,571
11,687,475

642,157
1,013,565
6,499,752(121)
8,155,354
15,165
8,170,519
11,830,942

AssetsLiquid assets
Cash and deposits
Accounts receivable
Inventories
Other
Allowances for bad debts
Total liquid assets
Fixed assets
Tangible fixed assets
Intangible fixed assets
Goodwill
Software suspense account
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 expenses
Accrued tax payable, etc.
Advances received
Reserve for bonuses
Reserve for shareholder benefits
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- 5 -(2) Quarterly Consolidated Statements of Operations and Quarterly Statement of Comprehensive Income
Quarterly Consolidated Income Statements
First half of consolidated fiscal year
(Unit: Thousands of yen)
1H, Fiscal year ended
February 2021
(March 1, 2020
to August 31, 2020)
Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Gain on disposal of unpaid dividends
Subsidy income
Refund of premium for canceled insurance
Gain on bad debts recovered
Other
Total non-operating income
Ordinary income (loss)
Extraordinary income
Temporary employee leave subsidies received
Total extraordinary income
Extraordinary loss
Loss on compensation for temporary employee
leave
Total extraordinary loss
Income (loss) before income taxes
Corporate income, inhabitant and enterprise taxes
Adjustment of corporate taxes, etc.
Total accrued tax payable
Net income (loss)
Net income (loss) attributable to minority interests
Net income (loss) attributable to owners of the parent
company- 6 -1H, Fiscal year ending
February 2022
(March 1, 2021
to August 31, 2021)

8,186,094
6,225,293
1,960,801
2,789,567(828,766)

10,890,074
7,079,590
3,810,483
3,114,931
695,552230
373
22,0158,026−
930,655(798,111)

1
339
1,400
−
2,104
48
3,894
699,447*1 70,213

70,213−−*2 208,149−

208,149(936,048)
37,543(260,710)(223,166)(712,881)(1,320)−699,447
250,624
20,088
270,712428,734801(711,561)

427,933

Quarterly statement of comprehensive income
Second quarter consolidated cumulative period(Unit: Thousands of yen)
1H, Fiscal year ended
February 2021
(March 1, 2020
to August 31, 2020)
Net income (loss)
Comprehensive income(Breakdown)Comprehensive income (loss) attributable to ownersof the parent company
Comprehensive income (loss) attributable to minority
interests- 7 -1H, Fiscal year ending
February 2022
(March 1, 2021
to August 31, 2021)(712,881)(712,881)

428,734
428,734(711,561)

427,933(1,320)801

(3)Quarterly Consolidated Cash Flow Statements(Unit: Thousands of yen)
1H, Fiscal year ended
February 2021
(March 1, 2020
to August 31, 2020)

Cash flow from operating activities
Income (loss) before income taxes
Depreciation and amortization expenses
Goodwill amortization
Loss on compensation for temporary employee
leave
Amortization of long-term prepaid expenses
Subsidy income
Employee leave subsidies
Increase (Decrease) in allowances for bad debts
Increase (Decrease) in reserve for bonuses
Increase (Decrease) in reserve for officer bonuses
Increase (Decrease) in reserve for shareholder
benefits
Interest and dividends received
Gain on forfeiture of unclaimed dividends
Decrease (Increase) in accounts receivable
Decrease (Increase) in inventories
Decrease (Increase) in other liquid assets
Increase (Decrease) in accounts payable
Increase (Decrease) in advances received
Increase (Decrease) in consumption tax payable,
etc.
Decrease (Increase) in consumption tax receivable,
etc.
Increase (Decrease) in other current liabilities
SubtotalInterest and dividend income received
Expenditures on compensation for temporary
employee leave
Subsidies received
Temporary employee leave subsidies received
Income taxes, etc. paid
Cash used in operating activities
Cash flow from investing activities
Expenditures for acquisition of tangible fixed assets
Expenditures for acquisition of intangible fixed
assetsExpenditures for lease and guarantee deposits
Income from refund of lease and guarantee deposits
Expenditures for acquisition of long-term prepaid
expenses
Cash used in investing activities
Cash flow from financing activities
Dividends paid
Cash used in financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 8 -1H, Fiscal year ending
February 2022
(March 1, 2021
to August 31, 2021)(936,048)
110,991
10,222

699,447
94,696
10,222

208,149−

31,113(22,015)(70,213)
246
25,433(10,390)

31,926(1,400)−219
12,772−(34,602)(54,645)

(230)
(373)
(969,795)(5,652)(51,392)
4,892
490,400(1)(339)(1,078,973)(5,627)(32,101)
4,929
497,046(319,453)

20,447(38,744)

1,195

11,176(1,566,284)
233(46,770)
153,0441(208,149)−

22,01570,213(582,931)(2,264,904)

1,400−(215,422)(60,975)(185,325)(110,989)(313,602)(333,896)(35,135)
328(33,764)
3,095(5,157)(18,258)(538,892)(493,814)(705,036)(705,036)(3,508,832)
8,753,497
5,244,664(705,680)(705,680)(1,260,470)
6,562,644
5,302,173

(4) Notes Concerning Quarterly Consolidated Financial Statements(Notes on Quarterly Consolidated Income Statements)*1 Notes on Subsidies for Temporary Employee LeaveFirst half of consolidated fiscal year ended February 2021 (March 1, 2020 to August 31, 2020)
The Company temporarily closed all schools under the State of Emergency declared by the Japanese
government due to the COVID-19 pandemic. Extraordinary income was posted for the subsidy received to provide
temporary employee leave compensation (casual teachers and part-time employees).
First half of consolidated fiscal year ending February 2022 (March 1, 2021 to August 31, 2021)
Not applicable*2 Notes on Compensation for Temporary Employee LeaveFirst half of consolidated fiscal year ended February 2021 (March 1, 2020 to August 31, 2020)
The COVID-19 pandemic prompted the Japanese government to request the closure of elementary, junior high,and high schools nationwide, and the Company also closed its schools on a temporary basis following thedeclaration and extension of the State of Emergency. As a result of this measure, we recorded an extraordinary
loss on employee compensation for leave from work for temporary employees (casual teachers and part-time
employees).
First half of consolidated fiscal year ending February 2022 (March 1, 2021 to August 31, 2021)
Not applicable(Notes Regarding the Company as a Going Concern)
Not applicable(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable(Additional Information)
In the current fiscal year the Company made accounting estimates for impaired assets, including goodwill andother fixed assets, and the retrievability of deferred tax assets based on the assumption that the COVID-19
pandemic would not pose a significant impact. Since it remains unclear when the COVID-19 outbreak willsubside, there is still a potential risk of future losses if the assumptions stated above do not materialize.
(Segment Information, etc.)[Segment Information, etc.]
The individualized teaching business is the only business segment the Group reports. Other business segments
have been omitted because they are of material significance.

- 9 -(Business Combinations, etc.)
Significant revisions to the initial allocation of acquisition costs in comparative information
The provisional accounting treatment applied for the first half of the previous fiscal year concerning accounting forthe business combination with HRBC Co., Ltd. on January 24, 2020, was finalized at the end of the previous fiscal
year.
The finalization of this provisional accounting treatment has resulted in signification revisions to the initial
allocation of acquisition costs being reflected in comparative information included in the quarterly consolidated
financial statements for the first half of the current fiscal year. The provisional goodwill amount of 262,033,000 yen
was reduced by 47,366,000 yen to 214,666,000 yen as a result of the finalization of the accounting treatment. The
decrease in goodwill is the result of an increase in intangible fixed assets and other assets of 71,648,000 yen, andan increase in fixed liabilities and other liabilities of 24,783,000 yen.
As a result, the consolidated income statement for the first half of the previous consolidated fiscal year recorded
an increase of 1,959,000 yen in selling, general and administrative expenses, and an increase of 1,457,000 yen in
the adjustment of corporate taxes, etc. Further, operating loss, ordinary loss, and quarterly loss before income
taxes each decreased by 1,959,000 yen, and first half net loss and first half net loss attributable to owners of theparent company both decreased by 501,000 yen.

- 10 -

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 first half of fiscal year ending February 2022 is as follows:First half of fiscal year ending February 2022
Segment nameSales
(thousands of yen)

Composition(% of total)

Year-on-year comparison(%)

Individualized teaching
Primary school students

1,132,889

10.4

147.1

Junior high school students

3,585,012

32.9

132.9

High school students

5,966,803

54.8

129.7

10,684,705

98.1

132.4

205,368

1.9

174.8

10,890,074

100.0

133.0

Total individualized teaching
Other business totals
Total(Notes) 1. Amounts listed above do not include consumption tax, etc.
2. Other business activities include science labs, writing classes, and HRBC Co., Ltd.

- 11 -