Earnings Briefing
Materials for FY2022
March 1, 2022 to February 28, 2023

Tokyo Individualized Educational Institute, Inc.
April 10, 2023

Today’s Agenda

1.FY2022 Performance and FY2023 Plan

2.Q&A

1

FY2022 Performance andFY2023 Plan
Tokyo Individualized Educational Institute, Inc.
DirectorTakeharu Tsutsumi

2Snapshot of FY2022 Earnings Results

FY2022 Consolidated P/L(Millions of yen)

FY20222(consolidated)

FY2021(consolidated)

YoY Change

YoY Change

Net sales

21,79022,495-705-3.1%

Cost of sales

13,975

14,229-253

-1.8%

64.1%

63.3%

0.8pt

-

7,814

8,265-451

-5.5%

35.9%

36.7%

-0.8pt

-

5,989

5,869

120

2.1%

SG&A ratio

27.5%

26.1%

1.4pt

-

Operating income

1,824

2,396-571-23.9%

Operating income
margin

8.4%

10.7%

-2.3pt-

Net income attributableto parent company

1,249

1,578-328-20.8%

Cost of sales ratio
Gross profit
Gross profit ratio
SG&A3

Trends in Average FY2022 Enrollment

YoY decrease due to decline in high school
enrollment[FY average number of students (by student category)]
32,32833,15933,309
30,426

16,875

97.4%
17,10917,080vs. FY2021

32,436

16,18916,171(49.9%)High School

Middle School

11,943

12,255

10,681

11,887

11,824(36.5%)
ElementarySchool

3,510

3,824

3,574

4,313

4,423

2018年度FY20182019年度FY20192020年度FY20202021年度FY20212022年度FY2022(13.6%)(People)Average annual enrollment for FY2022 (vs. FY2021):high school 94.6%; middle school 99.5%; elementary school 102.6%*Students enrolled in individualized teaching4

A Look at New Enrollment

Previous recovery trend slowed in 4Q[Transitions in quarterly number of students enrolled](People)98.0%

10,000

96.0%

8,087
8,000

6,940

96.0%
93.5%

92.0%

92.4%

6,000

3,667

4,000

94.0%

4,284

90.0%
88.0%

86.0%

85.8%

84.0%

2,000

82.0%

80.0%

0

1Q
第1四半期

2Q
第2四半期
FY2022 enrollment
2022年度入会数*Enrollment numbers for individualized teaching only

3Q
第3四半期

4Q
第4四半期

vs. FY2021
昨年同期比5

FY2022 Operating Income

Profits decreased despite reevaluating expenses
to address impact of decline in net sales[FY2022 Analysis of increases/decreases in profit](Millions of yen)vs. FY2021

76.1%

6

About Location Development

Opened three schools in FY2022, bringing thetotal to 269
FY2022 School openings(as of Feb. 28, 2023)
Ikegami School (Tokyo)
June 2022

Kagurazaka School (Tokyo)
June 2022

Ebina School (Kanagawa)
October 2022
Kagurazaka School

7

FY2023 university entrance exam acceptance rates

Surpasses previous FY for highest everacceptance to top schools
305%

Acceptance into top universities vs. 2014
295%

300%

250%

216%

188%

200%

170%

150%

127%

Acceptance
growth rate

305%

197%

174%

2014 to 2023

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

135%

100%
100%
2014
14年

2015
15年

2016
16年

2017
17年

2018
18年

2019
19年

2020
20年

2021
21年

2022
22年

2023
23年

8FY2023 Full year Earnings Forecast

Forecasting increased net sales but decreased
income on investments to resolve issues(Millions of yen)

FY2023(consolidated)

Forecast

FY2022(consolidated)

Results

ChangeRate ofchange

22,164

21,790

373

1.7%

1,464

1,824-360-19.8%

6.6%

8.4%-1.8pt-1,465

1,834-369-20.1%Net income attributable toparent company

916

1,249-333-26.7%Net income margin

4.1%

5.7%

-1.6pt-16.88

23.02

-6.14

-Net sales
Operating income
Operating income margin
Ordinary income

EPS

9Fee revisions

Revising course prices from May 2023

Responding to severe changes in the education
environment and further increases in customer
satisfaction
We revised course prices by roughly 7% with thegoal of securing capital mainly for investments inhuman resources10

FY2023 fixed expenses

Planning to secure the personnel needed to address
the key recovery issues of educational affairs andmarketing reform, and increase school personnel(Millions of yen)

FY2022 fixed
expenses

Increase inpersonnel expenses

Decrease indepreciation andamortization
expenses

Increase in othercosts

Decrease in other
SG&A

FY2023 fixed
expenses forecast

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FY2023 key issues to resolve

Strengthen Group alliances to resolve issues

123Marketing reform focused on web-based marketing
Utilize knowledge of the Benesse Group to accelerate recovery in inquiries

Create framework for educational content
development
Use Group assets to develop yearly test content for university entrance exams
Group collaboration on development of educational framework as market strategy
for middle school entrance exams

Strengthen operating structure to enhance Groupcollaboration
Stimulate personal interactions, including through the reassignment of directors
12Postponing release of medium-term management plan

Decision not to release medium-termmanagement plan
We are currently validating the efficacy of business reforms involving the useof various assets of the Benesse Group. We will use the results of thisvalidation as the basis for revisions to our business investment plans, after
which we will draft our medium-term management plan.

Striving to realize VISION2030,
we will develop further strengths by
combining Benesse Group assets
with the CSV framework we are
creating with university studentinstructors.

13Shareholder Return Policy

Evaluate future investments and financial stability
while continuing to issue dividends based on our
return policy
FY2019FY2020

FY2021

FY2022

FY2023(Forecast)

Full-year dividend

26 yen26 yen26 yen*23 yen

16 yenDividend payout
ratio(consolidated)

74.4%

557.8%

89.4%*99.9%

94.8%

Mid-year dividend

13 yen13 yen

13 yen13 yen8 yen

End-of-year
dividend

13 yen13 yen13 yen*10 yen

8 yen* TBD at 40th Ordinary
General Meeting ofShareholders

14