Summary of First Half Business Results for the Fiscal Year Ending February 29, 2024
[Japan GAAP] (Consolidated)
October 11, 2023
Company
Tokyo Individualized Educational Institute, Inc.
Listed on the TSE Prime
Stock Code4745
URL https://www.tkg-jp.com/en/ir/
Representative
Hideyuki Ogaki, 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 1H report:
October 12, 2023
Expected date of dividend payment:
November 15, 2023
Preparation of 1H supplementary financial document:Yes
1H results briefing:
Yes (For analysts/institutional investors)(Rounded down to million yen)

1. First half consolidated business results for the fiscal year ending February 2024
(March 1, 2023 through August 31, 2023)(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%

1H, fiscal year ending
February 2024

10,342

(1.2)

(75)

－

(74)

－

(110)

－

1H, fiscal year ended
February 2023

10,472(3.8)

71(89.7)

74(89.4)

88(79.4)

Note: Comprehensive income
1H, fiscal year ending February 2024:
1H, fiscal year ended February 2023:(110) million yen (-%)
89 million yen (-79.2%)

Net income
per share

Diluted net income
per shareYen

Yen

1H, fiscal year ending
February 2024

(2.04)−

1H, fiscal year ended
February 2023

1.62

−

(2) Consolidated financial position
Total assets

Net assets

Shareholder’s equity
ratio

million yen

million yen%

1H, fiscal year ending
February 2024

11,338

7,803

68.7

As of February 2023

11,410

8,457

74.0

Reference: Shareholders’ equity:
1H, fiscal year ending February 2024:
As of February 2023:

7,784 million yen
8,438 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 2023

−

13.00

−

10.00

23.00

Fiscal year ending
February 2024

−

8.00
−

8.00

16.00

Fiscal year ending
February 2024 (forecast)
Note: Revisions to the most recent dividend forecast: None

3. Forecast of consolidated business results for fiscal year ending February 2024
(March 1, 2023 through February 29, 2024)(% change from the previous corresponding period)

OperatingincomeNet sales
million yen

Fiscal year ending
February 2024

22,164% million yen

1.7%

1,464 (19.8)

Note: Revisions to the most recent performance forecast: None

Ordinary income

Net income
attributable toparent company

million yen%

million yen%

Yen

1,465 (20.1)

916(26.7)

16.88

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)

1H, fiscal year
endingFebruary 2024

54,291,435

As ofFebruary 2023

54,291,435

1H, fiscal year
endingFebruary 2024

136

As of
February 2023

136

1H, fiscal year
endingFebruary 2024

54,291,299

1H, fiscal year
ended
February 2023

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 4 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
October 11, 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)

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(Changes in Accounting Policies).................................................................................................. 10(Segment Information, etc.) .......................................................................................................... 10

3. Other Notes ........................................................................................................................................... 11
Circumstances Concerning Orders Received, Sales, and Production................................................... 11- 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.
The environment facing the Company in the first half of the fiscal year ending February 2024 is becoming
increasingly competitive under the impact of educational reforms, including the introduction of new school
curriculum guidelines and reforms to university entrance exams, and an influx of new players from other industries
spurred on by an increased diversification of learning styles brought about by further development in AI and otherinformation technologies.
Amidst these circumstances, we have repeatedly carried out PDCA on marketing reforms and the development ofeducational content, both of which had been earmarked as key issues since the previous year, with a shortturnaround. As a result, we began providing a mid-term university admissions course in June for mid-term university
admissions (General Selection and General Recommendation Type Selection), which has recently seen asignificant increase in university exam candidates. In addition, we renewed our website to better communicate the
new services we have on offer, and promote our new merchandise. As a result of these efforts, inquiries into our
mid-term university admissions plans jumped 90% year-on-year, leading to steady growth in enrollments from ourmain target, high school students in their senior year.
Consolidated sales for 1H, fiscal year ending February 2024 was 10,342 million yen (down 1.2% year-on-year), with
an operating loss of 75 million yen (following an operating income of 71 million yen in the same period of theprevious year), an ordinary loss of 74 million yen (after an ordinary income of 74 million yen in the same period of
the previous year), and a quarterly net loss attributable to owners of the parent company of 110 million yen (with aquarterly net income attributable to owners of the parent company of 88 million yen in the same period of theprevious year).
Further, details into the factors causing year-on-year changes in net sales and operating income and loss in the 2Qof the fiscal year are outlined below.
<Primary factors resulting in changes in net sales>• Net sales increased 42 million yen compared to the previous year.
• Summer enrollment activities were a success in improving our marketing efforts and promoting our mid-term
university admissions courses, lifting the number of enrollments for 1Q of 6,536 (down 5.8% year-on-year) to
8,011 in 2Q (down 0.9% year-on-year).
<Primary factors resulting in changes in operating income and loss>• Operating income rose 64 million yen compared to the previous year.
• In addition to the increase in profit from increased sales, another primary factory was the improvement in the
portion of teacher rates to sales.
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 -(2) Explanation of Financial Standing
1) Assets, Liabilities, and Net Assets[Assets]
Total assets at the end of the first half of the current fiscal year were 11,338 million yen, a 71 million yen (0.6%)
decline from the end of the previous fiscal year.
Current assets were 7,028 million yen, an 89 million yen (1.3%) increase from the end of the previous fiscal year.
Although cash and deposits decreased by 786 million yen, this increase is primarily attributed to an increase inaccounts receivable of 770 million yen.
Tangible fixed assets were 762 million yen, an 11 million yen (1.5%) decrease from the end of the previous fiscal
year. This decrease was primarily due to the decision to close existing schools.
Intangible fixed assets were 1,620 million yen, a 146 million yen (8.3%) decrease from the end of the previous
fiscal year. This decrease was primarily due to the commencement, and increased amortization of, student
placement system and a billing platform system.
Investments and other assets were 1,926 million yen, a 3 million yen (0.2%) decline from the end of the previous
fiscal year. This decline was primarily the result of a decrease of 26 million yen in deposits and security money,
offsetting an increase in other assets of 22 million yen.
[Liabilities]
Total liabilities at the end of the first half of the current fiscal year were 3,534 million yen, a 581 million yen(19.7%) increase from the end of the previous fiscal year. This increase was primarily caused by increases of 615
million yen in contractual liabilities and 359 million yen in accrued expenses, and 18 million yen in the reserve forbonuses, which outweighed decreases in accrued tax payable, etc. of 224 million yen and “other” current liabilitiesof 185 million yen.
[Net assets]
Net assets at the end of the first half of the current fiscal year were 7,803 million yen, a 653 million yen (7.7%)
decline from the end of the previous fiscal year. This decline was the result of surplus dividend payments of 542
million yen, and quarterly net loss attributable to owners of the parent company totaling 110 million yen.
2) Cash Flows
Cash and cash equivalents at the end of the first half of the current fiscal year (hereafter, “Cash”) were 5,283 million
yen, a decline of 786 million yen from the end of the previous consolidated fiscal year. The status of each type ofcash flow and the main factors involved are described below.
[Cash flow from operating activities]
Cash used in operating activities during the first half of the current fiscal year was 164 million yen. This wasprimarily the results of increases in accounts receivable of 770 million yen and contractual liabilities of 615 million
yen.
When compared to the previous corresponding period, a decline in income taxes, etc. paid of 357 million yen, andincreases in consumption tax payable of 338 million yen and other current liabilities of 218 million yen resulted in
an increase in cash used in operating activities of 992 million yen.

- 3 -

[Cash flow from investing activities]
Cash used in investing activities during the first half of the current fiscal year was 78 million yen. This mainly
resulted from expenditures of 53 million yen for acquisition of tangible fixed assets and 29 million yen for
acquisition of intangible fixed assets.
When compared to the previous corresponding period, decreases in expenditures for acquisition of tangible fixed
assets of 43 million yen and expenditures for acquisition of intangible fixed assets of 249 million yen resulted in a
decline of 345 million yen in cash used in investing activities.
[Cash flow from financing activities]
Cash used in financing activities during the first half of the current fiscal year was 542 million yen. This resulted
from the payment dividends.

(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 2024, there have been nochanges to the forecast of consolidated business results announced for the full year in the Summary of BusinessResults for the Fiscal Year Ended February 28, 2023 [Japan GAAP] (Consolidated) disclosed April 10, 2023.

- 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, 2023)

End of the first half of thecurrent consolidated
fiscal year
(As of August 31, 2023)

6,069,618
483,436
31,960361,312(7,739)6,938,587

5,283,547
1,254,092
41,454457,275(7,840)7,028,529

774,422762,550

163,555
1,467,161
136,261
1,766,978153,333
1,379,176
87,9901,620,499

1,584,530
345,792
1,930,323
4,471,724
11,410,311

1,558,213
368,643
1,926,857
4,309,907
11,338,437

8,471
882,793339,935
902,548
122,0625,670
661,5172,922,998

14,864
1,242,757
115,159
1,517,780
140,418−
476,418
3,507,399

30,30030,3002,953,299

27,183
27,1833,534,583

642,157
1,013,565
6,782,542(121)
8,438,144
18,8688,457,012
11,410,311

642,157
1,013,565
6,128,922(121)
7,784,524
19,3297,803,853
11,338,437

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
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 2023
(March 1, 2022
to August 31, 2022)
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
Gain on bad debts recovered
Other
Total non-operating income
Ordinary income (loss)
Extraordinary loss
Impairment losses
Total extraordinary loss
Quarterly income (loss) before income taxes
Corporate income, inhabitant and enterprise taxes
Adjustment of corporate taxes, etc.
Total accrued tax payable
Quarterly net income (loss)
Quarterly net income attributable to minority interests
Quarterly net income (loss) attributable to owners of theparent company- 6 -1H, fiscal year ending
February 2024
(March 1, 2023
to August 31, 2023)

10,472,112
6,974,860
3,497,252
3,425,326
71,926

10,342,783
6,852,036
3,490,747
3,566,593(75,846)

1
247
285
1,890
12
2,437
74,363

2
353
−
1,093
290
1,740
(74,105)* 3,532
3,532
70,830(59,373)
41,137(18,235)
89,066
1,027* 23,204
23,204(97,309)
43,110(30,175)
12,935(110,245)
461

88,039(110,706)

Quarterly statement of comprehensive income
First half of consolidated fiscal year
(Unit: Thousands of yen)
1H, fiscal year ended
February 2023
(March 1, 2022
to August 31, 2022)
Quarterly net income (loss)
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income attributable toowners of the parent company
Quarterly comprehensive income attributable tominority interests- 7 -1H, fiscal year ending
February 2024
(March 1, 2023
to August 31, 2023)

89,06689,066(110,245)(110,245)

88,039(110,706)

1,027

461

(3) Quarterly Consolidated Cash Flow Statements(Unit: Thousands of yen)
1H, fiscal year ended
February 2023
(March 1, 2022
to August 31, 2022)
Cash flow from operating activities
Income (loss) before income taxes
Depreciation and amortization expenses
Goodwill amortization
Impairment losses
Amortization of long-term prepaid expenses
Subsidy income
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 disposal of unpaid dividends
Decrease (Increase) in accounts receivable
Decrease (Increase) in inventories
Decrease (Increase) in other current liabilities
Increase (Decrease) in accounts payable
Increase (Decrease) in contractual liabilities
Increase (Decrease) in consumption tax payable,
etc.
Increase (Decrease) in other current liabilities
SubtotalInterest and dividend income received
Subsidies received
Income taxes, etc. paid
Cash flow from 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 flow from investing activities
Cash flow from financing activities
Dividends paid
Cash flow from 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 2024
(March 1, 2023
to August 31, 2023)

70,830185,020
10,222
3,532
32,476(285)(12)
16,492(20,790)(97,309)254,310
10,222
23,20436,864−100
18,355(5,670)(79,416)

−

(1)
(247)
(839,625)(11,392)
24,171
6,455
500,512(2)(353)(770,656)(9,494)(105,841)
6,393
615,231(386,703)(47,824)(55,375)(544,134)
1
285(613,518)(1,157,365)

163,491
91,0202−(255,908)(164,884)(96,628)(53,002)(279,199)(29,778)(31,549)
1,102(4,252)
14,498(18,167)(5,917)(424,442)(78,452)(704,921)(704,921)(2,286,729)
7,103,309
4,816,580(542,734)(542,734)(786,071)
6,069,618
5,283,547

(4) Notes Concerning Quarterly Consolidated Financial Statements(Notes on Quarterly Consolidated Income Statements)* Impairment losses
1H, fiscal year ended February 2023 (March 1, 2022 to August 31, 2022)
The Company recorded an impairment loss for the first half of the current fiscal year.
Application
Business asset

Type

Location
School in Fukuoka Prefecture(one school)

Building

Amount(thousands of yen)
3,532

The Group groups schools – the smallest cash flow producing units.
As the Company stopped accepting new customer inquiries for the 1online business for online individualizedteaching service as of August 30, the recoverable amount for this service was determined to be zero, and its
entire book value was written off as an impairment loss.
1H, fiscal year ending February 2024 (March 1, 2023 to August 31, 2023)
The Company recorded an impairment loss for the first half of the current fiscal year.
Application

Business asset

Type

Location

Buildings, tools, furniture andfixtures, long-term prepaid
expenses, and telephone
subscription rights

Schools in the Tokyo
Metropolitan Area and others(two schools)

Amount(thousands of yen)
23,204The Group groups schools – the smallest cash flow producing units.
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

20,235 thousand yen

Tools, furniture and fixtures

328 thousand yen

Long-term prepaid expenses

2,340 thousand yen

Telephone subscription rights

299 thousand yen

Total

23,204 thousand yen(Notes Regarding the Company as a Going Concern)
Not applicable(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable- 9 -(Changes in Accounting Policies)(Application of Accounting Standards in Market Value Calculations)
The “Implementation Guidance on Accounting Standards for Fair Value Measurement” (ASBJ Guidance No. 31
June 17, 2021. Hereafter, “Implementation Guidance on Accounting Standards for Fair Value Measurement”)
was applied from the beginning of the first quarter of the fiscal year ending February 2024. In accordance withthe provisions on transitional handling in item 27-2 of the Implementation Guidance on Accounting Standards for
Fair Value Measurement, the new accounting standards prescribed by the Implementation Guidance on
Accounting Standards for Fair Value Measurement shall apply prospectively. Further, said changes shall haveno effect on quarterly consolidated financial statements.
(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.

- 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 1H, fiscal year ending February 2024 is as follows:
Segment name

1H, fiscal year ending
February 2024
Net sales(thousands of yen)

Composition ratio(%)

Year-on-year comparison(%)

Individualized teaching
Primary school students

1,191,101

11.5

103.2

Middle school students

3,481,441

33.7

98.4

High school students

5,468,471

52.9

98.3

10,141,014

98.0

98.9

201,769

2.0

94.0

10,342,783

100.0

98.8

Total individualized teaching
Other business total
Total(Note)

Other business activities include science labs, writing classes, online-only individualized teaching, in-school
tutoring and corporate human resource development activities provided by HRBC Co., Ltd.

- 11 -