Summary of 3Q Business Results for the Fiscal Year Ending February 28, 2023
[Japan GAAP] (Consolidated)
January 10, 2023
Company
Tokyo Individualized Educational Institute, Inc.
Listed on the TSE Prime
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 3Q report:
January 11, 2023
Expected date of dividend payment:
No
Preparation of 3Q supplementary financial document:Yes
3Q results briefing:No(Rounded down to million yen)

1. 3Q consolidated business results for the fiscal year ending February 2023
(March 1, 2022 through November 30, 2022)(% change from the previous corresponding period)(1) Consolidated results of operations
Net sales

Operating income

Net income
attributable toparent company

Ordinary income

million yen%

million yen%

million yen%

million yen%

3Q, Fiscal year ending
February 2023

15,318(3.2)

469(60.5)

478(59.9)

342(54.4)

3Q, Fiscal year ended
February 2022

15,829

22.2

1,188

−

1,193

−

751

−

Note: Comprehensive income
3Q, Fiscal year ending February 2023:
3Q, Fiscal year ended February 2022:

344 million yen (-54.3%)752 million yen (−%)

Net income
per share

Diluted net income
per shareYen

Yen

3Q, Fiscal year ending
February 2023

6.31

−

3Q, Fiscal year ended
February 2022

13.84

−

(2) Consolidated financial position
Total assets

Net assets

Shareholder’s equity
ratio

million yen

million yen%

3Q, Fiscal year ending
February 2023

10,220

7,549

73.7

Fiscal year ended
February 2022

12,679

8,616

67.8

Reference: Shareholders’ equity:
3Q, Fiscal year ending February 2023:
Fiscal year ended February 2022:

7,531 million yen
8,600 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 2022

−

13.00

−

13.00

26.00

Fiscal year ending
February 2023

−

13.00

−
13.00

26.00

Fiscal year ending
February 2023 (forecast)
Note: Revisions to the most recent dividend forecast: None

3. Forecast of consolidated business results for fiscal year ending February 2023
(March 1, 2022 through February 28, 2023)(% change from the previous corresponding period)

million yen

Fiscal year ending
February 2023

22,188

Ordinary income

Net income
attributable toparent company%

million yen%

million yen

%

Yen

(8.7)

2,196

(8.6)

1,475

(6.5)

27.18

OperatingincomeNet sales% million yen

(1.4)

2,187

Note: Revisions to the most recent performance forecast: Yes

Net income
per share

* 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.: Yes
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)2) Treasury stock at the end of period
3) Average number of shares during
period (quarterly cumulative total)

3Q, fiscal year ending
February 2023

54,291,435
sharesFiscal year ended
February 2022

54,291,435
shares3Q, fiscal year ending
February 2023

136 sharesFiscal year ended
February 2022

136 shares

3Q, fiscal year ending
February 2023

54,291,299
shares3Q, fiscal year ended
February 2022

54,291,299
shares* 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 4 of the Attachment “1. Qualitative Information on Quarterly Results (3) Explanation of theForecast of Consolidated Business Results and other Future Forecasts”.
(Note on obtaining supplementary materials to quarterly financial statements)
Supplementary materials to quarterly financial statements (fact sheet) will be provided on the Company’s website fromJanuary 10, 2023.

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 .......... 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)

Notes Concerning Quarterly Consolidated Financial Statements ................................................... 8(Notes on Quarterly Consolidated Income Statements) .................................................................. 8(Notes Regarding the Company as a Going Concern).................................................................... 8(Notes on Significant Changes in the Amount of Shareholders’ Equity) .......................................... 8(Changes in Accounting Policies).................................................................................................... 9(Additional Information) ................................................................................................................... 9(Segment Information, etc.) ............................................................................................................ 9

3. Other Notes ........................................................................................................................................... 10
Circumstances Concerning Orders Received, Sales, and Production .......................................... 10- 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.
While the Japanese economic outlook for 3Q of the fiscal year ending February 2023 is showing signs of a gradual
recovery with the COVID-19 pandemic remaining a concern, continued caution is needed due to the risk of an
economic slowdown both in Japan and abroad driven by monetary tightening across the globe, coupled with theimpact of price increases on households. Further, with regard to the impact of COVID-19, while infections from theomicron strain of the virus are on a downward trend compared to the second quarter, the situation at hand remains
unpredictable.
With regard to the education system in Japan, Japan's new school curriculum guidelines for middle schools were
implemented across the board in FY2021, and the new school curriculum guidelines for high schools were
implemented beginning in FY2022. This transition in the education system has further accelerated the shift to online
learning, which was already in high demand as a result of COVID-19, and has increased the need for digitallearning materials that facilitate the effective learning of curriculum subjects, and has diversified the entrance exam
system. The prep school market also needs to adopt a flexible, rapid response to these changes, and is faced withintensifying competition between participants, including new entrants from other industries.
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.
Our competitive advantage is in our “business of ‘Creating Shared Value’ with university students”, a businessprocess that serves as the foundation for our business activities. A key initiative under this arm of our business isthe TEACHERS’ SUMMIT Annual Class Plan, which is continually being improved upon.
During 3Q of the fiscal year ending February 2023, as part of efforts to live with the COVID-19 pandemic, we work
to manage classrooms while prioritizing the safety and security of students and employees alike above all else by
ensuring that infectious disease control measures were stringently followed. To help our students achieve theirlearning goals caused by the recurrence of the omicron strain of the COVID-19 virus during 2Q of the fiscal year
ending February 2023, we shifted focus to improving the quality of our teaching services through theimplementation of new coaching training and other human resource development measures, and providing study
opportunities focused on achieving results.
In terms of school expansion, we continued to look to open dominant schools focused primarily on metropolitan
centers as part of efforts to bolster the strength of our brand in regional areas to further expand the business. In
October 2022, we opened a new Tokyo Individualized Educational Institute school (TIEI) in Ebina (Kanagawa).
While student recruitment was constrained by the extended impact of the omicron strain of COVID-19 and was
impacted by customer behavioral changes associated with changes to university entrance exams, student inquiries
and enrollments recovered compared to the 2Q of the fiscal year ending February 2023 to an average number ofenrolled students for 3Q of the fiscal year ending February 2023 of 32,828 (down 1.9 % year-on-year).

- 2 -Due to the above, results for 3Q of the fiscal year ending February 2023 saw a year-on-year decline in net sales of
510 million yen (3.2%) to end at 15,318 million yen resulting from the decline in student enrollments. In terms ofoperating income, reduced earnings as a result of a reduction in revenues and an increase in depreciation andamortization expenses pertaining to the redevelopment of the student placement system and a credit management
system, and the corresponding increase in operating and maintenance costs have led to operating income falling to
469 million yen, a 719 million yen (60.5%) reduction year-on-year. Ordinary income dropped 715 million yen(59.9%) year-on-year to end at 478 million yen. Quarterly net income attributable to owners of the parent company
was 342 million yen, a decline of 408 million yen (54.4%) year-on-year.
Further, the main line of business for our Group is the individualized teaching business. Net sales, segment profit,and other totals have been omitted for other business lines as these represent a small fraction of total earnings.

(2) Explanation of Financial Standing
1) Assets, Liabilities, and Net Assets[Assets]
Total assets as of November 30, 2022 were 10,220 million yen, a 2,459 million yen (19.4%) decline from the endof the previous fiscal year.
Current assets were at 5,641 million yen, a 2,515 million yen (30.8%) decline from the end of the previous fiscal
year. This decline was despite an increase in “other” assets of 154 million yen, and was primarily driven by adecline of 2,466 million yen in cash and deposits, and a further 205 million yen decline in accounts receivable.
Tangible fixed assets were 805 million yen, a 1 million yen (0.2%) increase from the end of the previous fiscal
year. This increase was primarily due to capital investments for opening new schools.
Intangible fixed assets were 1,845 million yen, a 115 million yen (6.7%) increase from the end of the previous
fiscal year. This increase was primarily due to capital investments in development of a dedicated customer
website and a billing platform system.
Investments and other assets were 1,928 million yen, a 61 million yen (3.1%) decline from the end of the previous
fiscal year. This decline was primarily the result of a 53 million drop in “other” investments and assets.
[Liabilities]
Total liabilities as of November 30, 2022 were 2,671 million yen, a 1,392 million yen (34.3%) decline from the endof the previous fiscal year. While there was an increase of 257 million yen in contractual liabilities, this decline wasprimarily the result of a decline of 750 million yen in “other” liabilities, and a decrease of 818 million yen in accrued
tax payable, etc.
[Net assets]
Net assets as of November 30, 2022 were 7, 549 million yen, a 1,067 million yen (12.4%) decline from the end of
the previous fiscal year. This decline was the result of surplus dividend payments of 1,411 million yen, andquarterly net income attributable to owners of the parent company totaling 342 million yen.

- 3 -(3) Explanation of the Forecast of Consolidated Business Results and other Future Forecasts
The forecast of consolidated business results for the fiscal year ending February 2023 announced in the Summaryof Business Results for the Fiscal Year Ended February 28, 2022 [Japan GAAP] (Consolidated) disclosed on April
12, 2022 were revised to reflect the cumulative results of the first three quarters of the current consolidated
accounting period and future forecasts.
(Unit: Million yen)
Net sales

OperatingincomeOrdinary
incomeNet income
Net income per
attributable toshare (yen)parent company

Previously announced
forecast (A)23,858

2,632

2,633

1,687

31.08

Revised forecast (B)22,188

2,187

2,196

1,475

27.18

Difference (B-A)(1,670)

(445)

(437)

(212)

Percentage change (%)(7.0)(16.9)(16.6)(12.6)(Reference) Results for theprevious period(Year ending February 2022)

22,495

2,396

2,402

1,578

- 4 -

29.07

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheets(Unit: Thousands of yen)

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 expenses
Accrued tax payable, etc.
Contractual liabilities
Reserve for bonuses
Reserve for officer 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 -End of previous
consolidated fiscal year
(As of February 28, 2022)

End of 3Q of the current
consolidated fiscal year
(As of November 30, 2022)

7,103,309
586,225
35,574441,027(9,057)
8,157,080

4,636,719
380,706
37,917595,975(9,948)5,641,370

803,179

805,174

184,000
978,644566,983
1,729,628

168,666
1,557,869
118,869
1,845,405

1,601,797
388,225
1,990,022
4,522,831
12,679,911

1,593,845
334,725
1,928,570
4,579,150
10,220,521

8,357
864,273823,548859,611116,244
20,79086,842
1,256,728
4,036,397

16,482810,460
5,281
1,117,340
191,718−−
506,498
2,647,780

26,852
26,852
4,063,249

23,32023,3202,671,101

642,157
1,013,565
6,944,447(121)
8,600,048
16,6138,616,662
12,679,911

642,157
1,013,565
5,875,456(121)
7,531,057
18,3627,549,419
10,220,521

(2) Quarterly Consolidated Statements of Operations and Quarterly Statement of Comprehensive Income
Quarterly Consolidated Income Statements
3Q consolidated cumulative period(Unit: Thousands of yen)
3Q, fiscal year ended
February 2022
(March 1, 2021
to November 30, 2021)
Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividend income
Gain on disposal of unpaid dividends
Subsidy income
Gain on bad debts recovered
Gain on the liquidation of lease and guarantee
deposits
Other
Total non-operating income
Ordinary income
Extraordinary loss
Impairment losses
Total extraordinary loss
Quarterly income before income taxes
Corporate income, inhabitant and enterprise taxes
Adjustment of corporate taxes, etc.
Total accrued tax payable
Quarterly net income
Quarterly net income attributable to minority interests
Quarterly net income attributable to owners of the parent
company- 6 -3Q, fiscal year ending
February 2023
(March 1, 2022
to November 30, 2022)

15,829,164
10,438,905
5,390,258
4,201,380
1,188,878

15,318,258
10,298,934
5,019,323
4,549,609
469,714

60
612
1,400
2,976

78
550
508
2,638

−

5,099

54
5,104
1,193,982

17
8,892
478,606−−
1,193,982
438,8092,514
441,324752,658
1,501* 7,9547,954
470,652
69,95456,366
126,321344,331
1,748

751,157

342,582

Quarterly statement of comprehensive income
3Q consolidated cumulative period(Unit: Thousands of yen)
3Q, fiscal year ended
February 2022
(March 1, 2021
to November 30, 2021)
Quarterly net income
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income attributable toowners of the parent company
Quarterly comprehensive income attributable tominority interests- 7 -3Q, fiscal year ending
February 2023
(March 1, 2022
to November 30, 2022)

752,658
752,658

344,331344,331

751,157

342,582

1,501

1,748

(3) Notes Concerning Quarterly Consolidated Financial Statements(Notes on Quarterly Consolidated Income Statements)* Impairment losses
3Q, fiscal year ended February 2022 (March 1, 2021 to November 30, 2021)
Not applicable
3Q, fiscal year ending February 2023 (March 1, 2022 to November 30, 2022)
The Group recorded an impairment loss for 3Q of the current fiscal year.
Application

Business asset

Type

Location

Building, Buildings, tools,
furniture and fixtures,leased assets, and longterm prepaid expenses

Breakdown(thousands of yen)

Schools in Fukuoka City,
Fukuoka (2 schools)

7,954

The Group groups schools – the smallest cash flow producing units. Individual assets are used as the grouping
unit for unemployed assets.
As the Company stopped accepting new customer inquiries for the business for online individualized teaching
service as of August 30, the recoverable amount for this service was determined to be zero, and its entire bookvalue was written off as an impairment loss.
Further, the Company’s decision to consolidate schools resulted in the entire book value of assets no longer
deemed to be recoverable being written off as an impairment loss.
(Breakdown of impairment losses)
Buildings

6,372 thousand yen

Tools, furniture and fixtures

511 thousand yen

Leased assets

821 thousand yen

Long-term prepaid expenses

247 thousand yen

Total

7,954 thousand yen(Notes Regarding the Company as a Going Concern)
Not applicable(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable- 8 -(Changes in Accounting Policies)(Application of the Accounting Standard for Revenue Recognition)
The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, dated March 31, 2020) wasapplied from the beginning of the first quarter of the fiscal year ending February 2023. Under this change,
monetary amounts expected to be received in exchange for goods and services are recognized as revenue atthe moment control of the promised goods and services is transferred to the customer.
While the Accounting Standard for Revenue Recognition has been applied in accordance with the provisions ontransitional handling prescribed in the provision to paragraph 84 of the Accounting Standard for Revenue
Recognition, said application does not affect the balance of retained earnings at the beginning of the firstquarter of the fiscal year ending February 2023. Further, this change does not affect profit and loss statementsfor 3Q of the fiscal year ending February 2023.
With the application of the Accounting Standard for Revenue Recognition, “advances received”, which had
previously been listed under “other” in “current liabilities” in the consolidated balance sheet for the previous
consolidated fiscal year, is now included in “contractual liabilities”.
(Application of the Accounting Standard for Fair Value Measurement)
The Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, dated July 4, 2019) wasapplied from the beginning of the first quarter of the fiscal year ending February 2023. The new accounting
standards prescribed by the Accounting Standard for Fair Value Measurement shall be applied prospectively inaccordance with the provisions on transitional handling prescribed in the provision to paragraph 19 of the
Accounting Standard for Fair Value Measurement and paragraph 44-2 of the Accounting Standard for Financial
Instruments (ASBJ Statement No. 10, dated July 4, 2019). Further, said changes shall have no effect onquarterly consolidated financial statements.
(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 novel
coronavirus pandemic would not pose a significant impact. However, there remains the potential for future losses
should the above supposition fail to materialize.
(Segment Information, etc.)[Segment Information]
The main line of business for our Group is the individualized teaching business. Net sales, segment profit, andother totals have been omitted for other business lines as these represent a small fraction of total earnings.

- 9 -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 3Q of the fiscal year ending February 2023 is as follows:
3Q of the fiscal year ending February 2023
Segment name

Net sales(thousands of yen)

Composition ratio(%)

Year-on-year comparison(%)

Individualized teaching
Primary school students

1,697,543

11.1

102.3

Middle school students

5,156,639

33.7

99.2

High school students

8,134,232

53.1

94.0

14,988,416

97.8

96.6

329,842

2.2

104.1

15,318,258

100.0

96.8

Total individualized teaching
Other business total
Total(Note)

Other business activities include science labs, writing classes, online individualized learning, and corporate
human resource development activities provided by HRBC Co., Ltd.

- 10 -