Summary of Business Results for Fiscal Year Ended February 28, 2023
[Japan GAAP] (Consolidated)
April 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 date of annual shareholders’ meeting:May 24, 2023
Expected date of dividend payment:
May 25, 2023
Expected date of filing of annual securities report:
May 25, 2023
Preparation of supplementary financial document:
Yes
Results briefing:
Yes (for analysts and institutional investors)(Rounded down to million yen)

1. Consolidated business results for fiscal year ended February 2023
(March 1, 2022 through February 28, 2023)(1) Consolidated results of operations(% change from the previous corresponding period)

Net sales

Operating income

Net income
attributable to parent
company

Ordinary income

million yen%

million yen%

million yen%

million yen%

Fiscal year ended
February 2023

21,790

(3.1)

1,824

(23.9)

1,834(23.6)

1,249(20.8)

Fiscal year ended
February 2022

22,495

17.5

2,396

290.7

2,402

270.8

1,578

523.7

Note: Comprehensive income
Fiscal year ended February 2023:
Fiscal year ended February 2022:

1,251 million yen (-20.8%)
1,580 million yen (525.0%)

Net income per
share

Diluted net
Return on equity
income per share

Ratio of ordinary
income to total
assetsRatio ofoperating income
to net sales

Yen

Yen

%

%

%

Fiscal year ended
February 2023

23.02

−

14.7

15.2

8.4

Fiscal year ended
February 2022

29.07

−

18.5

19.7

10.7

Reference: Investment earnings/loss on equity method:
Fiscal year ended February 2023:− million yen
Fiscal year ended February 2022:− million yen(2) Consolidated financial position
Total assets

Net assets

Shareholder’s equity
ratio

Net assets per share

Million yen

Million yen%

Yen

As of February 2023

11,410

8,457

74.0

155.42As of February 2022

12,679

8,616

67.8

158.41

Reference: Shareholders’ equity:
As of February 2023:
As of February 2022:

8,438 million yen
8,600 million yen

(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Million yen

Million yen

Million yen

Million yen

Fiscal year ended
February 2023

965

(589)

(1,409)

6,069

Fiscal year ended
February 2022

2,754

(802)

(1,410)7,103

2. Dividends
Full-year dividend
End of 1Q End of 2Q End of 3Q

Year-end

Full year

Total
dividends
paid(Full year)

Dividend
payout ratio(consolidated)

Ratio of total
dividend to
net assets(consolidated)

yen

yen

yen

yen

yen

Million yen%%

Fiscal year ended
February 2022

−

13.00

−

13.00

26.00

1,411

89.4

16.6

Fiscal year ended
February 2023

−

13.00

−

10.00

23.00

1,248

99.9

14.7

Fiscal year ending
February 2024
(forecast)

−

8.00

−

8.00

16.00

94.8

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)

Net sales

Fiscal year ending
February 2024

million yen%

22,164

1.7

Operating income

Ordinary income

Net income
attributable toparent company

million yen

million yen%

million yen%

yen

1,465 (20.1)

916(26.7)

16.88%

1,464 (19.8)

Net income
per share

* Notes(1)

Transfer of important subsidiaries during the fiscal year (transfers of specified subsidiaries accompanying changes
among consolidated companies): None

(2)

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(3)

Shares outstanding (common stock)(Number of shares)

1) Number of shares outstanding at the

As of February 2023

54,291,435

As of February 2022

54,291,435

2) Treasury stock at the end of period

As of February 2023

136

As of February 2022

136

3) Average number of shares during

Fiscal year ended
February 2023

end of period (treasury stock included)

period54,291,299

Fiscal year ended
February 2022

54,291,299(Reference) Overview of non-consolidated results

1. Non-consolidated business results for the fiscal year ended February 2023 (March 1, 2022 throughFebruary 28, 2023)(1) Non-consolidated results of operations
Net sales(% change from the previous corresponding period)

Operating income

Ordinary income

Net income

million yen%

million yen%

million yen%

million yen%

Fiscal year ended
February 2023

21,586

(3.2)

1,790

(24.1)

1,800(23.9)

1,233(20.9)

Fiscal year ended
February 2022

22,309

17.2

2,358

258.3

2,364

247.7

1,560

452.2

Net income per share

Diluted net income
per share

Yen

Yen

Fiscal year ended
February 2023

22.73

−

Fiscal year ended
February 2022

28.74

−

(2) Non-consolidated financial position
Total assets

Net assets

Shareholders’ equity
ratio

Net assets per share

Million yen

Million yen%

Yen

Fiscal year ended
February 2023

11,385

8,473

74.4

156.07

Fiscal year ended
February 2022

12,657

8,650

68.3

159.34

Reference: Shareholders' equity:
As of February 2023:
As of February 2022:

8,473 million yen
8,650 million yen

* This financial summary is 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 5 of the Attachment “1. Summary of Operating Results (4) Future Outlook”．
(Information on how to obtain supplementary financial document and results briefing)
The Company plans to hold an earnings briefing for analysts and institutional investors on April 10, 2023. The materials
distributed at this briefing will be post on the Company's website.

Contents of Attachment
1. Summary of Operating Results ............................................................................................................... 2(1)

Summary of Operating Results for the Current Fiscal Year ............................................................ 2(2)

Summary of Financial Standing for the Current Fiscal Year............................................................ 3(3)

Cash Flows for the Current Fiscal Year........................................................................................... 4(4)

Future Outlook ................................................................................................................................ 5

2. Basic Approach to the Adoption of Accounting Standards ....................................................................... 6
3. Consolidated Financial Statements and Main Notes ............................................................................... 7(1)

Consolidated Balance Sheets ......................................................................................................... 7(2)

Consolidated Income Statements and Consolidated Statement of Comprehensive Income .......... 9(3)

Consolidated Statements of Changes in Net Assets ..................................................................... 11(4)

Consolidated Cash Flow Statements ............................................................................................ 13(5)

Notes Concerning Consolidated Financial Statements ................................................................. 14(Notes Regarding the Company as a Going Concern).................................................................. 14(Changes in Accounting Policies).................................................................................................. 14(Notes on Consolidated Income Statements) ............................................................................... 14(Segment Information, etc.) .......................................................................................................... 16(Per-Share Information) ................................................................................................................ 16(Subsequent Events) .................................................................................................................... 16

4. Other Notes ........................................................................................................................................... 17
Circumstances Concerning Orders Received, Sales, and Production................................................... 17- 1 -1. Summary of Operating Results(1) Summary of Operating Results for the Current Fiscal YearIn terms of the Japanese economic outlook for the current consolidated fiscal year, despite the impact of priceincreases caused by increased energy costs and soaring raw materials costs brought on by the deterioration of thesituation in Ukraine, the ongoing depreciation of the yen due to a tightening of fiscal policy, among other factors,
consumer spending remains solid, and the Japanese economy showed signs of a slight recovery.
With regard to the education system in Japan, following the change in name of AO Admission to “Comprehensive
Selection” and Suisen Admission to “School Recommendation Type Selection” concerning university admissions in
FY2021, the environment surrounding university admissions is changing, with an increasing number of newly
enrolled students using these so-called “Mid-term Admission” admission programs. In addition, junior high-school
entrance examinations continued to trend upwards, with a record number of students taking a junior high-school
entrance examination for the 2023 school year in the Tokyo Metropolitan Area. The prep school market faces theneed to promptly respond to these changes, and competition among firms, including new entrants from otherindustries, is only set to intensify.
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.
In terms of human resource development for improving the quality of education services, we continued to
implement “coaching” training from the 2Q onwards as part of efforts to improve communication skills throughdialog. We aim to leverage coaching training as a pillar of our human resources development program with the aimof accurately understanding each student’s circumstances and setting clear goals, and bolstering the trainee’s
teaching abilities to improve student motivation by smoothly engage in teacher-student dialog and other means, inorder to achieve a positive outcome for the student.
Operating activities included enhancements to our mid-term admission and junior high-school examinationmaterials, as well as a review of our marketing activities in light of the changes to the business environment. We
worked 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. We looked to providing
increased opportunities for learning, while focusing on proposing learning strategies to achieve results. In order tomake up for lost learning opportunities experienced by many customers following the recurring prevalence of theOmicron strain in the 2Q, the winter course in the 4Q was extended by a month to help customers achieve theirstudy goals.
In terms of school openings, there were three new school openings, primarily in Tokyo, with the Tokyo Individualized
Educational Institute school Ikegami School (Tokyo) and Kagurazaka School (Tokyo) opening in June 2022, and the
Ebina School (Kanagawa) opening in October, bringing the total number of schools to 269.
As a result of these business activities, despite robust primary school student enrollments, the total number ofstudent enrollments was impacted by soft enrollment figures for the key high school student segment due to a
decline in inquiries from students seeking to enter university through admission by general entrance examinations
following changes in the university admissions environment, and average student enrollments during the FY2022
period was 32,436 (down 2.6% year-on-year).

- 2 -The results for the current consolidated fiscal year saw year-on-year decline in net sales of 705 million yen (3.1%)
to end at 21,790 million yen resulting from the decline in student enrollments. In terms of operating income, reduced
earnings as a result of a reduction in revenues and an increase in depreciation and amortization expenses
pertaining to the redevelopment of the student placement system and a credit management system, and thecorresponding increase in operating and maintenance costs have led to operating income falling to 1,824 million
yen, a 571 million yen (23.9%) reduction year-on-year. Ordinary income dropped 568 million yen (23.6%) year-onyear to end at 1,834 million yen. Net income attributable to owners of the parent company was 1,249 million yen, adecline of 328 million yen (20.8%) year-on-year.
The current consolidated fiscal year marked the second year of the “Hospitality Management 2023” medium-term
management plan, which is set to end in FY2023. The results of business activities for the current consolidated
fiscal year, and the environmental changes behind such, namely the increasing trend toward mid-term admissions
over general entrance examination-based university admissions had an adverse impact on the Company, resulting
in a decline in inquiries from students seeking to enter university through admission by general entrance
examinations. We have undergone a review of our marketing strategy, and the effect of said changes are still being
tested, which has prompted a decision to postpone the release of the new medium-term management plan. The
new medium-term management plan is currently undergoing careful review, and will be announced promptly once
its contents are finalized.
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) Summary of Financial Standing for the Current Fiscal Year
Summary of assets, liabilities, and net assets[Assets]
Total assets as of February 28, 2023 were 11,410 million yen, a 1,269 million yen (10.0%) decrease from the endof the previous fiscal year.
Current assets were 6,938 million yen, a 1,218 million yen (14.9%) decrease from the end of the previous fiscal
year. This decrease was primarily caused by a decrease of 1,033 million yen in cash and deposits, a decrease of
102 million yen in accounts receivable, and a decrease of 81 million yen in prepaid expenses.
Tangible fixed assets were 774 million yen, a 28 million yen (3.6%) decrease from the end of the previous fiscal
year. This decrease was primarily due to the increase in depreciation and the rate of increase in amortization
expenses despite capital investments in opening new schools and expanding existing schools.
Intangible fixed assets were 1,766 million yen, a 37 million yen (2.2%) increase from the end of the previous fiscal
year. This increase was primarily due to capital investments in development of a billing platform system and a
student placement system.
Investments and other assets were 1,930 million yen, a 59 million yen (3.0%) decrease from the end of theprevious fiscal year. This decrease was primarily due to a decrease of 17 million yen in leases, etc. related to newschool openings and expanding existing schools and a decrease of 43 million yen in deferred tax assets.
[Liabilities]
Total liabilities as of February 28, 2023 were 2,953 million yen, a 1,109 million yen (27.3%) decrease from the endof the previous fiscal year.

- 3 -Current liabilities as of February 28, 2023 were 2,922 million yen, a 1,113 million yen (27.6%) decrease from theend of the previous fiscal year. This decrease was primarily due to a 279 million yen decrease in accounts
payable-other, a 483 million yen decrease in accrued tax payable, etc., a 301 million yen decrease in
consumption tax payable, and an 86 million yen decrease in reserve for shareholder benefits.
Fixed liabilities as of February 28, 2023 were 30 million yen, a 3 million yen (12.8%) increase from the end of theprevious fiscal year. This increase was primarily due to a 7 million yen increase in other liabilities despite adecrease of 4 million yen in deferred tax liabilities.
[Net assets]
Net assets as of February 28, 2023 were 8,457 million yen, a 159 million yen (1.9%) decrease from the end of theprevious fiscal year. This decrease was the result of surplus dividend payments of 1,411 million yen and 1,249
million yen in net income attributable to parent company.

(3) Cash Flows for the Current Fiscal Year
Cash and cash equivalents as of February 28, 2023 (hereafter, “Cash”) were 6,069 million yen, a decrease of 1,033
million yen from the end of the previous consolidated fiscal year.
The status of each type of cash flow and the main factors involved are described below.
[Cash flow from operating activities]
Cash from operating activities during the fiscal year ended February 2023 was 965 million yen.
This mainly resulted from 1,812 million yen in income before income taxes, 437 million yen in depreciation andamortization expenses, a decrease of 301 million yen in consumption tax payable, and 984 million yen in income
taxes, etc. paid.
Cash flow from operating activities decreased by 1,789 million yen, compared to the previous fiscal year, due todecreases of 590 million yen in income before income taxes, 550 million yen in consumption tax payable, and 640
million yen in income taxes, etc. paid.
[Cash flow from investing activities]
Cash used in investing activities during the fiscal year ended February 2023 was 589 million yen.
This mainly resulted from expenditures of 132 million yen for acquisition of tangible fixed assets for opening new
schools, 401 million yen in expenditures for acquisition of intangible fixed assets for building a billing platformsystem and a student placement system, and 31 million yen in expenditures for lease and guarantee deposits.
Compared to the previous fiscal year, cash flow from investing activities decreased by 213 million yen due todecreases in expenditures of 29 million yen for acquisition of tangible fixed assets and expenditures of 170 million
yen for acquisition of intangible fixed assets.
[Cash flow from financing activities]
Cash used in financing activities during the fiscal year ended February 2023 was 1,409 million yen.
This resulted from the payment dividends.

- 4 -(Reference) Changes in cash flow-related indicators
Fiscal year
ended
February 2019

Fiscal year
ended
February 2020

Fiscal year
ended
February 2021

Fiscal year
ended
February 2022

Fiscal year
ended
February 2023

Shareholder’s equity ratio (%)

75.2

72.6

72.2

67.8

74.0

Market value-based equity ratio
(%)

492.1

228.0

293.6

256.5

249.3

Cash flow to interest-bearing
debt ratio (year)

−

−

−

−

−

Interest coverage ratio (multiple)

−

−

−

−

−

Shareholder’s equity ratio: Shareholder’s equity/total assets
Market value-based equity ratio: Market capitalization/total assets
Cash flow to interest-bearing debt ratio: Interest-bearing debt/cash flow
Interest coverage ratio: Cash flow/interest(Notes) 1. Figures for the fiscal year ended February 2019 through to the fiscal year ended February 2020 are takenfrom non-consolidated financial statements.
2. As the Company has no debt outstanding, figures pertaining to the cash flow to interest-bearing debt ratio
and the interest coverage ratio have been omitted.
3. Market capitalization is calculated based on the number of shares issued, excluding treasury shares.
4. Operating cash flow is used for cash flow.
5. Interest-bearing debts include all liabilities on the balance sheet which incur interest payments.

(4) Future Outlook
The operating environment surrounding the Company is undergoing significant changes, influenced by a complex
and diverse array of factors including macroeconomic factors, such as COVID-19, price increases, and changes inJapan’s demographics, and industry-specific factors, such as changes to the Japanese education system, and theentry of new players from other industries in growth fields such as EdTech (a general term used to describe
education and training services that leverage the latest technologies), among others. In particular, the changes tothe education system have a significant impact on our operating environment, and require a prompt response.
Against this backdrop in the business environment, the challenges facing individualized teaching, our corebusiness, are as follows.
1. Promotion of teaching and service development
There are two key issues that urgently need addressing. The first is our strategy for addressing junior high-school
entrance examinations. The outbreak of COVID-19 saw an increase in demand for admission to private junior highschools and high schools, particularly in the Tokyo Metropolitan Area, as a result of their quick response to thevirus. This spurred growth in the junior high school entrance examination market, and the Company has also seen
robust growth in primary school student admissions. We will step up our content development for junior high school
entrance examinations in a bid to boost our share of this market. The second issue is in relation to our approach to
mid-term university admissions. In an era where university places outnumber university applicants, competition
between universities to survive is reaching a fever pitch. Admission quotas for mid-term admissions, such as
General Selection and General Recommendation Type Selection, continue to expand. Meanwhile, the approach to
being admitted to universities under these schemes differs from the conventional approach to general university
admissions, significantly impacting the prep school market. In response, the Company has established anorganizational framework to address mid-term admissions, and is leveraging the assets of the Benesse Group forcontent development.

- 5 -2. Marketing reforms
The flow of inquiries from external sites are declining, prompting the need to rebuild inquiry input channels tocompensate for this drop off. Primarily, this involves evaluating the effect of marketing activities by channels leading
to the Company website. We will look to raise mass awareness and strengthen our brand over the medium term.
3. Strengthening human resource development
With the commoditization of individualized teaching, it is becoming increasingly difficult to differentiate based onservice content. Amidst this operating environment, university student teachers and school employees deliveringvalue to our customers serve a vital human capital supporting our business operations. Therefore, we view theunique approach to developing these human resources as service providers as a key element differentiating us
from our competition. To further differentiate us from our competitors, we will continue to develop human resources
capable of delivering our educational ideals to our customers, centered around hospitality as a linchpin.
4. Increased productivity in school administration
To improve the activities of our human resources in providing customer value, continually improving andstreamlining our working environment and work processes has emerged as a key issue. Specifically, this involves
enhancing added value and promoting the shift to paperless schools through the adoption of IT at points of contact
with customers. The productivity improvements achieved through these measures will work to improve thecustomer experience while also revitalizing the workforce.
We will address the issues raised and work toward the sustainable enhancement of corporate value, and tocontribute to a happy future for humanity, as put forth in our corporate philosophy.
With regard to the outlook for the following fiscal year, we expect net sales of 22,164 million yen (1.7% increaseyear-on-year), operating income of 1,464 million yen (19.8% decrease year-on-year), ordinary income of 1,465
million yen (20.1% decrease year-on-year), and net income attributable to parent company of 916 million yen(26.7% decrease year-on-year).

2. Basic Approach to the Adoption of Accounting Standards
The Group applies Japanese accounting standards in consideration of the potential to compare periods ofconsolidated financial statements, and for comparisons between companies.
Further, the Group will consider the adoption of International Financial Reporting Standards (IFRS) as appropriate inconsideration of future business development and prevailing circumstances both in Japan and abroad.

- 6 -3. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheets(Unit: Thousands of yen)
End of previous
consolidated fiscal year
(As of February 28, 2022)

End of current
consolidated fiscal year
(As of February 28, 2023)

7,103,309
586,225
3,732
31,842
440,387640(9,057)
8,157,080

6,069,618
483,436
3,373
28,587359,054
2,257(7,739)6,938,587

1,728,039(1,000,259)
727,780
985,459(910,059)
75,399803,179

1,753,674(1,033,885)
719,788953,744(899,110)
54,634774,422

184,000
978,644478,335
59,00429,644
1,729,628

163,555
1,467,161
56,04250,57529,644
1,766,978727
25
44,939342,533
1,601,797
1,990,022
4,522,831
12,679,911

727
25
45,612
299,427
1,584,530
1,930,323
4,471,724
11,410,311

AssetsCurrent assets
Cash and deposits
Accounts receivable
Merchandise
Supplies
Prepaid expenses
Other
Allowances for bad debts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Total tangible fixed assets
Intangible fixed assets
Goodwill
Software
Software suspense accountStudent-related assets
Telephone subscription right
Total intangible fixed assets
Investments and other assets
Investment securities
Investments in capital
Long-term prepaid expenses
Deferred tax assets
Lease and guarantee deposits
Total investments and other assets
Total fixed assets
Total assets- 7 -(Unit: Thousands of yen)
End of previous
consolidated fiscal year
(As of February 28, 2022)

End of current
consolidated fiscal year
(As of February 28, 2023)

8,357
724,449864,273823,548
470,897859,611
61,382
116,244
20,79086,842
4,036,397

8,471
445,119882,793339,935
169,231
902,548
47,166122,062
5,670−
2,922,998

17,954
8,897
26,852
4,063,249

13,80816,49230,3002,953,299

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

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

Liabilities
Current liabilities
Accounts payable
Accounts payable-otherAccrued expenses
Accrued tax payable, etc.
Consumption tax payable
Contractual liabilities
Deposits received
Reserve for bonuses
Reserve for officer bonuses
Reserve for shareholder benefits
Total current liabilities
Fixed liabilities
Deferred tax 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- 8 -(2) Consolidated Income Statements and Consolidated Statement of Comprehensive Income
Consolidated Income Statements(Unit: Thousands of yen)
Fiscal year ended
February 2022
(March 1, 2021
to February 28, 2022)
Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Advertising expenses
Remuneration for directors (and other officers)
Salaries and allowances
Bonuses
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other salaries
Rent
Depreciation and amortization expenses
Hiring expenses
Commission expenses
Rent expenses
Provision of allowance for doubtful accounts
Provision for shareholder benefit program
Reversal of provision for shareholder benefit
program
Goodwill amortization
Other
Total 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
Income before income taxes
Corporate income, inhabitant and enterprise taxes
Adjustment of corporate taxes, etc.
Total accrued tax payable
Net income
Net income (loss) attributable to minority interests
Net income attributable to parent company- 9 -Fiscal year ended
February 2023
(March 1, 2022
to February 28, 2023)

22,495,242
14,229,520
8,265,722

21,790,075
13,975,736
7,814,339

2,410,518
159,217729,669
40,38928,761

2,279,787
171,350
764,894
32,257
29,412

20,7905,670

226,513
117,338
169,258
219,866
996,579
26,114
8,491
82,392233,843
118,120322,659
295,297
1,071,372
19,298
5,477
−

−

(421)

20,444
612,914
5,869,259
2,396,462

20,444620,2715,989,738
1,824,600

61
612
1,400
4,013

79
550
508
3,874

−

5,099

191
6,278
2,402,740

24
10,137
1,834,737−−
2,402,740
849,313(27,237)
822,076
1,580,664
2,249
1,578,415* 22,729

22,7291,812,007
521,124
38,959560,083
1,251,923
2,254
1,249,669

Consolidated Statement of Comprehensive Income(Unit: Thousands of yen)
Fiscal year ended
February 2022
(March 1, 2021
to February 28, 2022)
Net income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of theparent company
Comprehensive income attributable to minority
interests- 10 -

Fiscal year ended
February 2023
(March 1, 2022
to February 28, 2023)

1,580,664
1,580,664

1,251,923
1,251,923

1,578,415

1,249,669

2,249

2,254

(3) Consolidated Statements of Changes in Net Assets
Fiscal year ended February 2022 (March 1, 2021 to February 28, 2022)(Unit: Thousands of yen)
Shareholder's equity
CapitalBalance at beginning of
periodCapital surplus

642,157

Retained earnings

1,013,565

6,777,605

Total shareholders'equityTreasury stock(121)

8,433,207

Changes during period
Dividends of surplus(705,786)(705,786)

Dividends of surplus(Interim dividend)(705,786)(705,786)

Net income attributable toowners of parent

1,578,415

1,578,415

Net changes in items otherthan shareholders' equity
Total change during period
Balance at end of period−−

166,841−

166,841

642,157

1,013,565

6,944,447(121)

8,600,048

Non-controllinginterests
Balance at beginning of
period14,364

Total net assets
8,447,571

Changes during period
Dividends of surplus(705,786)

Dividends of surplus(Interim dividend)(705,786)

Net income attributable toowners of parent

1,578,415

Net changes in items otherthan shareholders' equity

2,249

2,249

Total change during period

2,249

169,090

Balance at end of period

16,6138,616,662- 11 -

Fiscal year ended February 2023 (March 1, 2022 to February 28, 2023)(Unit: Thousands of yen)
Shareholder's equity
CapitalBalance at beginning of
periodCapital surplus

642,157

Retained earnings

1,013,565

6,944,447

Total shareholders'equityTreasury stock(121)

8,600,048

Changes during period
Dividends of surplus(705,786)(705,786)

Dividends of surplus(Interim dividend)(705,786)(705,786)

Net income attributable toowners of parent

1,249,669

1,249,669

Net changes in items otherthan shareholders' equity
Total change during period
Balance at end of period−−(161,904)−(161,904)

642,157

1,013,565

6,782,542(121)

8,438,144

Non-controllinginterests
Balance at beginning of
period16,613

Total net assets
8,616,662

Changes during period
Dividends of surplus(705,786)

Dividends of surplus(Interim dividend)(705,786)

Net income attributable toowners of parent

1,249,669

Net changes in items otherthan shareholders' equity

2,254

2,254

Total change during period

2,254(159,649)

Balance at end of period

18,8688,457,012- 12 -

(4) Consolidated Cash Flow Statements(Unit: Thousands of yen)
Fiscal year ended
February 2022
(March 1, 2021
to February 28, 2022)
Cash flow from operating activities
Income before income taxes
Depreciation and amortization expenses
Impairment losses
Goodwill amortization
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 forfeiture of unclaimed dividends
Decrease (Increase) in accounts receivable
Decrease (Increase) in inventories
Decrease (Increase) in other current assets
Increase (Decrease) in accounts payable
Increase (Decrease) in contractual liabilities
Increase (Decrease) in consumption tax payable,
etc.
Decrease (Increase) in consumption tax receivable,
etc.
Increase (Decrease) in other current liabilities
SubtotalInterest and dividend income received
Subsidies received
Income taxes, etc. paid
Net cash provided by 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 used in investing activities
Cash flow from financing activities
Dividends paid
Cash used in 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- 13 -

Fiscal year ended
February 2023
(March 1, 2022
to February 28, 2023)

2,402,740
285,945−
20,44465,744(1,400)(137)(18,115)
20,7901,812,007
437,765
22,72920,44464,653(508)(1,317)
5,818(15,120)

26,295(86,842)

(61)
(612)
(23,597)(4,896)(24,449)(818)
131,867(79)(550)
102,789
3,614
85,822
113
42,936

248,832(301,665)

1,195

−

(32,333)
3,097,433
61
1,400(344,631)
2,754,262(243,072)
1,949,540
79
508(984,887)
965,240(161,907)(132,742)(572,172)(401,537)(48,869)
12,790(31,549)
3,856(32,532)(27,410)(802,691)(589,383)(1,410,905)(1,410,905)
540,665
6,562,644
7,103,309(1,409,548)(1,409,548)(1,033,691)
7,103,309
6,069,618

(5) Notes Concerning Consolidated Financial Statements(Notes Regarding the Company as a Going Concern)
Not applicable(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 fiscal year ended February 2023. Under this change, monetary amounts
expected to be received in exchange for goods and services are recognized as revenue at the moment controlof 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 fiscal year
ended February 2023. Further, this change does not affect profit and loss statements for the fiscal year ended
February 2023.
With the application of the Accounting Standard for Revenue Recognition, “advances received”, which had
previously been listed 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 fiscal year ended February 2023. The new accounting policies prescribed by
the Accounting Standard for Fair Value Measurement shall be applied prospectively in accordance with theprovisions 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 on financial statements.
(Notes on Consolidated Income Statements)* Impairment losses
Fiscal year ended February 2022 (March 1, 2021 to February 28, 2022)
Not applicable
Fiscal year ended February 2023 (March 1, 2022 to February 28, 2023)
The Group recorded impairment loss for the following asset group due to waning profitability caused by aslowdown in business performance.
Application

Type

Location

Amount(thousands of yen)

Business assets

Buildings, tools, furniture andfixtures, leased assets, and longterm prepaid expenses

Schools in the Tokyo
Metropolitan Area and others(10 schools)

22,729The Group primarily groups schools as the smallest cash flow-producing unit.
The recoverable amount of business assets is estimated to be zero due to a negative estimate of undiscounted
future cash flows, and its book value is recorded as an impairment loss.

- 14 -

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

13,210 thousand yen

Tools, furniture and fixtures

1,361 thousand yen

Leased assets

5,691 thousand yen

Long-term prepaid expenses
Total

2,467 thousand yen
22,729 thousand yen- 15 -

(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.
(Per-Share Information)
Fiscal year ended February 2022
(March 1, 2021
to February 28, 2022)

Fiscal year ended February 2023
(March 1, 2022
to February 28, 2023)

Net assets per share

158.41 yen

155.42 yen

Net income per share

29.07 yen

23.02 yen

(Notes) 1
2

Diluted net income per share is not recorded because there are no dilutive shares.
The basis for calculating net assets per share is as follows.
Fiscal year ended February 2022
(February 28, 2022)

Fiscal year ended February 2023
(February 28, 2023)

8,616,662

8,457,012

Amount deducted from total net assets(thousands of yen)

16,613

18,868(of which pertains to non-controllinginterests) (thousands of yen)

(16,613)(18,868)

8,600,048

8,438,144

54,29154,291

Fiscal year ended February 2022
(March 1, 2021
to February 28, 2022)

Fiscal year ended February 2023
(March 1, 2022
to February 28, 2023)

1,578,415

1,249,669

Net income not attributable to ordinary
shareholders (thousands of yen)−−

Profit attributable to owners of parent
available to common stock (thousandsof yen)1,578,415

1,249,669

Average number of shares of common
stock during the period (thousands ofyen)

54,29154,291

Item
Total net assets (thousands of yen)

Closing balance of net assets pertaining
to outstanding shares of common stock(thousands of yen)
Shares of common stock used in
calculation of net assets per share(thousands of shares)
3

The basis for calculating net income per share is as follows.

Item
Earnings per share
Net income attributable to owners ofparent (thousands of yen)(Subsequent Events)
Not applicable- 16 -

4. 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
Fiscal year ended February 2023
(March 1, 2022 to February 28, 2023)

Segment nameYear-on-year comparison

No. of students(people)Amount(thousands ofyen)

Composition(% of total)

No. of students(%)

Primary school students

4,423

2,433,222

11.2

102.6

102.6

Junior high school students

11,824

7,607,094

34.9

99.5

98.9

High school students

16,18911,301,782

51.9

94.6

94.2

32,436

21,342,100

97.9

97.4

96.8

−

447,975

2.1

−

101.7

−

21,790,075

100.0

−

96.9

Amount(%)

Individualized teaching

Total individualized teaching
Other business totals
Total(Notes) 1
2

The number of students is the average number of students enrolled during the period.
Other business activities include science labs, writing classes, online-only individualized teaching, andcorporate human resource development activities provided by HRBC Co., Ltd.

- 17 -