Summary of 1Q Business Results for the Fiscal Year Ending February 28, 2025
[Japan GAAP] (Consolidated)
July 10, 2024
Company

Tokyo Individualized Educational Institute, Inc.

Stock Code4745

Listed on the TSE Prime

URL https://www.tkg-jp.com/en/ir/

Representative

Shigeki Matsuo, President and Representative Director

Contact

Toru Osakabe, General Manager of the Financial and Accounting Department
Tel: +81 3 6911 3216

Expected submission date of the 1Q report:

July 11, 2024

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 2025
(March 1, 2024 through May 31, 2024)(1) Consolidated results of operations(% change from the previous corresponding period)

Net sales

Operating income

Net income
attributable toparent company

Ordinary income

million yen%

million yen%

million yen%

million yen%

Fiscal year ending
February 2025 1Q

4,223

3.6

(844)

−

(840)

−

(607)

−

Fiscal year ended
February 2024 1Q

4,076

(4.0)

(1,038)−(1,037)

−

(746)

−

Note: Comprehensive income
Fiscal year ending February 2025 1Q:
Fiscal year ended February 2024 1Q:(607) million yen (−%)
(746) million yen (−%)

Net income
per share

Diluted net income
per share
Yen

Yen

Fiscal year ending
February 2025 1Q(11.19)−Fiscal year ended
February 2024 1Q(13.74)−(2) Consolidated financial position
Total assets

Net assets

Shareholder’s equity
ratio

million yen

million yen%

Fiscal year ending
February 2025 1Q

10,154

7,399

72.7

As of February 2024

11,688

8,440

72.0

Reference: Shareholders’ equity:
Fiscal year ending February 2025 1Q:
As of February 2024:

7,379 million yen
8,420 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 2024

−

8.00

−

8.00

16.00

Fiscal year ending
February 2025

−
6.00

−

6.00

12.00

Fiscal year ending
February 2025 (forecast)
Note: Revisions to the most recent dividend forecast: None

3. Forecast of consolidated business results for fiscal year ending February 2025
(March 1, 2024 through February 28, 2025)(% change from the previous corresponding period)

OperatingincomeNet sales
million yen

Fiscal year ending
February 2025

21,797% million yen

0.6

Ordinary income% million yen

1,271 (20.9)

Note: Revisions to the most recent performance forecast: None

Net income
attributable toparent company% million yen

1,273 (21.2)

Net income
per share%Yen

757 (21.1)

13.95

* 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.: 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 theend of period (treasury stock included)

Fiscal year ending
February 2025 1Q

54,291,435

As of February 2024

54,291,435

2) Treasury stock at the end of period

Fiscal year ending
February 2025 1Q

136

As of February 2024

136

3) Average number of shares during
period (quarterly cumulative total)

Fiscal year ending
February 2025 1Q

54,291,299

Fiscal year ended
February 2024 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 July
10, 2024.

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 Income Statements and Quarterly Consolidated 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(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 2025, although
there are signs of a gradual recovery driven by an improvement in the employment and income environment and anincrease in overseas tourists traveling to Japan, the outlook for the economy remains uncertain due to theprolonged conflict in Ukraine and tensions in the Middle East, a rise in the price of raw materials resulting from thecontinued weakness in the yen and monetary tightening across the globe.
In terms of the educational landscape, with the GIGA school concept now entering its fourth year, the digitization ofteaching environments is progressing at pace as birth rates continue to fall, with the full-scale introduction of digital
English textbooks for fifth year elementary school students through to third year junior high school students. With
regard to entrance exams, while demand for junior high school exams in the Tokyo Metropolitan Area continues torise, in terms of university entrance exams, the number of students seeking to enter university through general
selection is on the decline, with the number of exam takers opting for School Recommendation Type Selection orComprehensive Selection recommendation type admissions expected to continue to trend upwards.
The prep school market faces the need to promptly respond to environmental challenges, and we are at an
inflection point ahead of a period of great change in the industry, with new entrants from other industries entering
the market, and moves toward strengthening alliances with other industries through M&As and other activities.
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.
For the 1Q of the fiscal year ending February 2025, we implemented a number of improvements to drive a recovery
in student inquiries, which has been earmarked as a challenge for the short-term. In addition to marketing reforms,
this includes efforts to improve our ability to interview students and make proposals in schools with the aim of
improving quality to help each individual student achieve their goals and targets as part of efforts to revitalize ourcore individualized teaching business. We also worked to develop new services that utilize the assets of theBenesse Group to leverage our unique competitive advantages to meet the needs of customers amidst a changing
educational landscape.
With regard to school expansion, the Tokyo Individualized Educational Institute opened two new schools, Kachidoki
School (Chuo-ku, Tokyo) and Koiwa School (Edogawa-ku, Tokyo), in March. At the same time, after carefully
considering customer convenience, we merged the two schools in Machida in the vicinity of the same train stationin March, integrating the Machida Terminal Exit School into Machida School. Looking ahead, we will consider ways
to improve location profitability while opening schools in optimal locations considering future demographic trends.
In terms of the number of students, we saw improvements to student withdrawals following school quality
improvements, and this, coupled with an increase in inquiries driven by marketing reforms, was significant inbridging the gap with the number of students for the previous year, from -1,001 students at the end of February
2024 to +4 students at the end of May 2024. Despite this, the average number of students for the first quarter was
27,535 (down 1.1% year-on-year).
In terms of profits, upfront investments for the future included costs associated with opening two new schools andlabor costs required to secure and retain outstanding human resources, which were offset by efforts to consolidate
schools, promote the appropriate placement of teachers, streamline promotion and advertising activity, as well asother aggressive cost cutting measures.

- 2 -As a result, net sales were 4,223 million yen (up 3.6% year-on-year), operating losses were 844 million yen(compared to operating losses of 1,038 million yen year-on-year), ordinary losses were 840 million yen (compared
to ordinary losses of 1,037 million yen year-on-year), and net losses attributable to owners of the parent company
were 607 million yen (compared to net losses attributable to owners of the parent company of 746 million yen yearon-year).
The first quarter operating income for the Company tends to be negative due to how the business is structured andseasonal factors.
The main line of business for our Group is the individualized teaching business. Net sales, segment profit, and othertotals 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 10,154 million yen, a 1,533 million yen(13.1%) decrease from the end of the previous fiscal year.
Current assets were 5,910 million yen, a 1,684 million yen (22.2%) decrease from the end of the previous fiscal
year. Although “other” current assets increased by 111 million yen, this decline is primarily attributed to adecrease of 1,728 million yen in cash and deposits, and a 70 million yen decline in accounts receivable.
Tangible fixed assets were 709 million yen, a 24million yen (3.5%) increase from the end of the previous fiscal
year. This increase was primarily due to new school openings and the replacement of equipment at existing
schools.
Intangible fixed assets were 1,304 million yen, a 103 million yen (7.3%) 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 2,230 million yen, a 229 million yen (11.5%) increase from the end of theprevious fiscal year. This increase was primarily the result of an increase in other assets of 251 million yen,offsetting a decrease of 22 million yen in lease and guarantee deposits.
[Liabilities]
Total liabilities at the end of the first quarter of the current fiscal year were 2,755 million yen, a 492 million yen(15.2%) decrease from the end of the previous fiscal year. This decline was primarily caused by a decrease inaccrued tax payable, etc. of 355 million yen, and a 321 million yen decrease in “other” current liabilities, which
outweighed increases of 95 million yen in contractual liabilities and 91 million yen in the reserve for bonuses.
[Net assets]
Net assets at the end of the first quarter of the current fiscal year were 7,399 million yen, a 1,041 million yen(12.3%) decline from the end of the previous fiscal year. This decline was the result of surplus dividend paymentsof 434 million yen, and quarterly net losses attributable to owners of the parent company totaling 607 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 2025, 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 29, 2024 [Japan GAAP] (Consolidated) disclosed April 9, 2024.

- 3 -2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheet(Unit: Thousands of yen)
End of the previous
consolidated
fiscal year
(February 29, 2024)
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
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Total accumulated other comprehensive income
Minority interest
Total net assets
Total liabilities and net assets- 4 -First quarter consolidated
accounting period(May 31, 2024)

6,807,375
398,423
32,154
362,693(5,701)7,594,946

5,079,067
327,60335,471
474,667(6,175)5,910,635

685,064

709,260

143,111
1,193,270
71,272
1,407,653

138,000
1,097,120
69,164
1,304,285

1,551,875
448,8772,000,752
4,093,470
11,688,417

1,529,583
700,876
2,230,460
4,244,006
10,154,642

9,702
397,488924,116
217,450
18,522
1,646,263
3,213,543

9,621
41,677
1,019,668
309,091
18,522
1,324,360
2,722,940

34,03834,0383,247,581

32,47732,4772,755,418

642,157
1,013,565
6,764,582(121)
8,420,184

642,157
1,013,565
5,722,774(121)
7,378,376

173

699

173
20,4788,440,836
11,688,417

699
20,147
7,399,223
10,154,642

(2) Quarterly Consolidated Income Statements and Quarterly Consolidated Statement of Comprehensive
IncomeQuarterly Consolidated Income Statements
First quarter consolidated cumulative period(Unit: Thousands of yen)Previous first quarter
consolidated
cumulative period(March 1, 2023
to May 31, 2023)
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
Gain on bad debts recovered
Compensation income
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 losses attributable to minority interests
Quarterly net losses attributable to owners of the parent
company- 5 -Current first quarter
consolidated
cumulative period(March 1, 2024
to May 31, 2024)

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

4,223,266
3,244,059
979,206
1,823,639(844,432)

1
353
368

156
880
(1,037,986)(1,037,986)
19,351(310,780)(291,428)(746,557)
(456)

1
320
362
3,682
44
4,411
(840,021)(840,021)
16,793(249,006)(232,212)(607,808)(331)(746,100)(607,477)

Quarterly Consolidated Statement of Comprehensive Income
First quarter consolidated cumulative period(Unit: Thousands of yen)Previous first quarter
consolidated
cumulative period(March 1, 2023
to May 31, 2023)
Quarterly net losses
Accumulated other comprehensive income
Other differences in valuation of equities
Total accumulated other comprehensive income
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, 2024
to May 31, 2024)(746,557)(607,808)(746,557)

526
526(607,282)(746,100)(606,950)

(456)

(331)

(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(Segment Information, etc.)[Segment Information]
The individualized teaching business is the only reported business segment for the Group. Net sales, segment
profit, and other 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

552,949

13.1

104.7

Junior high school students

1,490,636

35.3

103.3

High school students

2,093,079

49.6

103.5

4,136,665

97.9

103.6

86,6002.1

103.1

4,223,266

100.0

103.6

Total individualized teaching
Other business totals
Total(Note) Other business activities include science labs, writing classes, in-school tutoring and corporate human resource
development activities provided by HRBC Co., Ltd.

- 8 -