Summary of Earnings for2Q/FY2023
March 1, 2023 to August 31, 2023

Tokyo Individualized Educational Institute, Inc.
(TSE Prime 4745)
October 12, 2023

Today’s Agenda
1. A Look at Earnings for 2Q/FY2023
2. Message from our President andRepresentative Director
3. 2Q Highlights
4. Q&ATokyo Individualized Educational Institute, INC.

A Look at Earnings for 2Q/FY2023
Tokyo Individualized Educational Institute, Inc.
Toru Osakabe, Chief Financial Officer (CFO)Tokyo Individualized Educational Institute, INC.

Financial Highlights

2Q net sales and income grew on recovery ininquiries and increased July enrollment(Millions of yen)

1Q

(Mar. to May)

(YoY)

2Q

(Jun. to Aug.)(YoY)

First half
cumulative(YoY)

Net sales

4,076

96.0%

6,266

100.7%

10,342

98.8%

Cost of sales

3,262

99.5%

3,589

97.2%

6,852

98.2%

Cost of sales ratio

80.0%

2.8%

57.3%

-2.1%

66.2%

-0.4%

Gross profit

814

84.1%

2,676

105.8%

3,490

99.8%

Gross profit ratio

20.0%

-2.8%

42.7%

2.1%

33.8%

0.4%

SG&A

1,853

103.3%

1,713

105.0%

3,566

104.1%

SG&A ratio

45.5%

3.2%

27.3%

1.1%

34.5%

1.8%

-1,038-963

107.2%-75--1,037-963

107.2%-74--746-

635

110.5%-110-

Operating income(loss)
Ordinary income(loss)
Net income (loss)
attributableto parent company

3Summary of Results

2Q (Jun. to Aug.) analysis of factors
NetsalesCost ofsales

Net sales increased by 42 million yen YoY (100.7%)• 3rd year high school student enrollment increased with launch of courses for
mid-term university admissions• Fee revisions implemented since May had positive effectDecreased by 104 million yen YoY (97.2%)• Adjusted teacher salaries by optimizing course scheduling

Net sales increased by 82 million yen YoY (105.0%)
SG&A• Increase in depreciation and amortization expenses and maintenance expenses
related to invoice management system• Increased staff involved in educational affairs development (continued from 1Q)

Operating
Net sales increased by 64 million yen YoY
income4

A Look at New Enrollment

Marketing reform to increase brand recognition drove
significant YoY increase in summer student enrollment[Trends in enrollment numbers]

4,967(People)

6,000

103.4%

99.1%

5,000
4,000

110.1%

100.0%

83.5%

79.7%

87.7%

3,404

3,000

1,829
1,215

1,149

1,000

March
3月

AprilApril
4月*Enrollment numbers for individualizedteaching only

80.0%
60.0%

1,983

2,000

0

120.0%(+455 people YoY)

MayMay5月
FY2022

40.0%
20.0%

JuneJune
6月
FY2023

July
July
7月
vs FY2022
FY22比August8月

0.0%

5

A Look at Student Enrollment Numbers

Decline trend that continued through June shiftedto recovery trend from July
[Trends in end-of-month enrollment numbers]FY2022(People)

FY2023FY22比
vs FY2022

40,00035,000

96.0%
95.4%

30,00027,111

28,03928,38429,28333,36233,421

95.0%

95.3%

25,00094.7%

20,00093.9%

15,000

94.5%
94.0%

94.1%

10,000

95.5%

93.5%
93.0%

93.3%

5,000

92.5%

092.0%

YoY difference

March
3月

April
4月

May
5月

June
6月
‐2,110July
7月

August8月‐1,8696A Look at Student Enrollment Numbers

Changes in enrollment structure settling down
since last year
[1H average end-of-month enrollment numbers (by student category)]100%
90%
80%
70%

51.7%

51.4%

17,127

16,385

15,388

34.0%

35.0%

35.1%

10,915

11,093

10,499

11.4%

12.6%

13.3%

13.5%

FY20202020年度FY20212021年度FY2022
2022年度FY2023
2023年度55.0%
15,603

53.4%

YoY
difference
-0.3%

60%
50%
40%
30%
20%
10%
0%

33.6%
9,544

3,236

*Students enrolled in individualizedteaching

4,025

Elementary
小学生
School

4,212

中学生
Middle School

高校生
High School

4,050

YoY
difference
+0.1%
YoY
difference+0.2%(People)7

A Look at 2Q Consolidated Net Sales

August net sales increased YoY on increased
July enrollment[Trends in Consolidated Net sales](Millions of yen)

3,500

110.0%
104.2%

3,000
100.8%

2,500

96.8%

2,000
1,500

99.6%

105.0%
100.0%

96.4%

95.0%

91.2%

90.0%

1,000
500

85.0%

0

80.0%

March
3月

April
4月

May
5月
FY2022June
6月
FY2023

July
7月
FY22比
vs FY2022

August8月

8A Look at 2Q Consolidated Net Sales and Operating Income

2Q net sales and operating income increased YoY[Consolidated Net Sales by Quarter](Millions of yen)

(Millions of yen)

8,000

100.7%

6,000
4,000102.0%

1,200100.0%

700

98.0%

96.0%

96.0%
2,0000[Consolidated Operating Income by Quarter]

898963200(300)

1Q(Mar. to May)

2Q

(Jun. to Aug.)

94.0%
1Q
1Q(3-5月)(Mar. to May)FY20222Q
2Q(6-8月)(Jun. to Aug.)FY202392.0%

vs FY2022
FY22比

(800)
(1,300)(826)(1,039)FY2022

FY20239

A Look at 2Q Consolidated Operating Income

Adjusted teacher salaries to cover decrease in net sales.
Personnel expenses increased on system-related expenses
and human resource investments.
(Millions of yen)[Analysis of increases/decreases in profit]

10

Trends in Cash and Cash Equivalents

Maintain financial stability[Trends in end of 2Q cash and cash equivalents](Millions of yen)

7,000
6,500
6,000

5,283

5,500
5,000
4,500
4,000
3,500
3,000

2019.82020.82021.82022.82023.811

FY2023 Full-year Earnings Forecast

No Change to Full-year Earnings Forecast(Millions of yen)

FY2023(consolidated)

Forecast

FY2022(consolidated)

Results

ChangeRate ofchange

Net sales

22,164

21,790373

1.7%Operating income

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

-

Operating income
marginOrdinary income

EPS

12

Shareholder Return Policy

Evaluate future business investments and financial
stability while issuing dividends as planned

FY2019FY2020

FY2021

FY2022

FY2023(Forecast)

Full-year
dividend

26 yen26 yen26 yen23 yen16 yenDividend payout
ratio(consolidated)

74.4%

557.8%

89.4%

99.9%

94.8%

Mid-yeardividend

13 yen13 yen13 yen13 yen (Confirmed) 8 yen

End-of-year
dividend

13 yen13 yen13 yen

10 yen8 yen

13

Message
Tokyo Individualized Educational Institute, Inc.
Hideyuki Ogaki, President and Representative Director

Tokyo Individualized Educational Institute, INC.

Profile
April 1995

Roughly 5 years

Nippon Telegraph and Telephone
Corporation (NTT)July 2000

Roughly 4 years

PwC Consulting Co., Ltd.

April 2004

Roughly 8 years

Recruit Co., Ltd.

From May 2012 11.5 years

Joined Benesse Group• 5 years, 11 months

Benesse Corporation• 5 years, 2 months

Benesse BE studio Inc.
President and CEO• 6 months

Tokyo Individualized EducationalInstitute, Inc.
From March: Advisor, Vice President
From September: President andRepresentative Director
15

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 andhospitality as the linchpin of our corporate
activities, we shall contribute to a happy
future for humanity.
16

Business policies
Practice our Corporate Philosophy
through our business activities andcontinue to be a company that ischosen by customers.

17

How we define hospitality
human resources
People who understand theimportance of a "thank you" andwho are able to share happinesswith everyone they encounter.

18

Steadily pass along the ideals andphilosophy valued by Tokyo
Individualized and ensure business
management that embraces these ideals.
19Drive earnings recovery by continuing to be chosen bycustomers for our steady commitment to resolving
internal issues and the issues impacting our operating
environment.
FY2023
Short-term
issuesFrom FY2024
Medium-Term
ManagementPlanThroughFY2030Long-term
vision• Promote reforms to address existing issues from lastyear: marketing reform and educational content
development.
• Planning to announce new Medium-Term Management
Plan in April 2024. Redefining provided value with focus
on the individualized teaching business as part of theformulation of a new growth strategy.
• Update our 2030 Vision. From FY2024 onward,evaluate businesses other than individualizedteaching.

20

Policies ahead of drafting
Medium-Term Management Plan
Business
policies
Persons

Practice our Corporate Philosophy throughour business activities and continue to be acompany that is chosen by customers
To achieve this, we will...

Continue to be a company that is chosen by partners and teachers

Continue to be a company that is chosen by school employees and assistantsContinue to be a company that is chosen by head office employees and staff
Quality

Value

IncomeOutline quality and rules to continue improving quality (apply advantages ofbeing directly-owned schools)
Continue creating new value, products, and services that meet customer
expectations
Increase productivity and continue generating profits to ensure business
continuity and enable future investments21

2Q Highlights

Tokyo Individualized Educational Institute, INC.

2Q Highlights
Under a new operating structure, we conducted tests inreform areas and drafted the outline of our Next
Medium-term Management Plan.

Signs of performance recovery•

Recovery in enrollment numbers: Stabilized enrollment conversion rate
through repeated short-term validation of tests to improve marketing
appeal with focus on website that achieves a high conversion rate.
Simultaneously revamped website to increase organic inflow.

•Recovery in summer inquiries: Strengthened transportation ads in Tokyoand Osaka to increase brand recognition.

1

Create framework for educational content
development2•

Launched comprehensive admissions course for university admissions tests:
Launched mid-term university admissions course in June. Marketing reform
contributed to reaching students considering mid-term university admissions.
Inquiries nearly doubled compared to last year.

•In-school tutoring: Confirmed benefits to enrolled students, planning toexpand into second half and beyond based on outlook for profitability.
23

2Q Highlights
Under a new operating structure, we conducted tests inreform areas and drafted the outline of our NextMedium-term Management Plan.

Improve organizational capabilities

3•

Increase involvement of management by all employees: Hold monthly
meetings for all employees, including heads of schools.

•Have all employees engage in discussions on customer value provisionand draft an outline for the medium-term management plan. Increase
involvement of all employees and engage in united effort towards
performance recovery.

Strengthen operating structure

4•

Replaced President and Representative Director in September. Create
one-stop workflow for proposal through implementation for the next
Medium-Term Management Plan to increase speed of reforms.

•Decided to shift to Standard Market, which is focused on the domestic
market. Concentrate management resources related to maintaining listingon the Prime Market on investments designed to promote reforms.
24