FY Ended February 2021 (FY 2/21)
Earnings Briefing Materials
March 1, 2020 to February 28, 2021

April 13, 2021

Tokyo Individualized Educational Institute, Inc.
(TSE 1st Section, Securities Code 4745)

FY 2/21 Results and FY 2/22 Plan
Tokyo Individualized Educational Institute, Inc.
Director and General Manager of the Business Strategy Office
Takeharu Tsutsumi

Current Results

Recovery Continues Despite the Pandemic(Millions of yen)

FY 2/20(consolidated)

FY 2/21(consolidated)

ChangeYoY

Net sales

21,261

19,142-2,119

90.0%

Cost of sales

13,104

13,289184

101.4%

61.6%

69.4%

7.8%

―

8,156

5,852

-2,303

71.8%

38.4%

30.6%

-7.8%

―

5,267

5,239

-28

99.5%

24.8%

27.4%

2.6%

―

2,889

613

-2,275

21.2%

13.6%

3.2%

-10.4%

―

2,892

647

-2,244

22.4%

13.6%

3.4%

-10.2%

―

1,897

253

-1,643

13.3%

8.9%

1.3%

-7.6%

―

Cost of sales ratio
Gross profit
Gross profit margin
SG&A
SG&A ratio
Operating income
Operating income margin
Ordinary income

Ordinary income margin
Net income

attributable to parent company

Net income margin3

Current Results Compared to Previous YearFY 2/21 Summary of Analysis of Factors
Behind Results
YoY revenue decreased 2,119 million yen (90.0% YoY)
Net sales➢ [-] Decrease in enrolled students and no classes held during closedperiod➢ [+] Number of new students since August increased every monthYoY

YoY earnings decreased 2,275 million yen (21.2% YoY)
Operatingincome

Net income
attributableto parentcompany➢ [-] Earnings declined due to lower revenues, infrastructure built for
online classes, higher teacher rates, and higher rent andemployee personnel expenses from opening new schools

YoY revenue decreased 1,643 million yen (13.3% YoY)
➢ [-] Earnings decline due to revenue decline➢ [-] The cost of losses from leave compensation to teachers is
129 million yen after subtracting 78 million yen from the leavecompensation fund4

Average Enrollment (by Student Category)

Enrolled students
32,32828,483

14,92533,15930,42630,30815,849YoY

16,875

91.8%

17,08016,171（53.2％）HighSchoolMiddle
School

11,943

12,255

10,787

11,451

2,771

3,008

3,510

FY 2/17

FY 2/18

FY 2/19

10,681（35.1％）

3,824

3,574（11.7％）

FY 2/20

FY 2/21

ElementarySchool(Students)

YoY by student category: high school 94.7%; middle school 87.2%; elementary school 93.5%* Students enrolled in individualized teaching5Monthly Enrolled Students YoY

The Number of Enrolled Students Is Gradually
Recovering
Enrolled students and monthly number YoY (FY 2/20 - FY 2/21)
Same month
前年同月
last year(Students)

2020-2021年
2020-2021

前年同月比
YoY change

40000

105.0%

101.8%
35000

97.1%

30000

100.0%

95.0%

94.2%

86.1%

25000

90.0%

90.1%20000

85.0%

15000

80.0%

10000

75.0%

Feb
29, 2020
20年2月末May
31, 2020
20年5月末Aug
31, 2020
20年8月末Nov
30, 2020
20年11月末

Feb
28, 2021
21年2月末6

Number of New Students

Record Number of New Students in August February
30,000✓ Pandemic measures and offering online classes increased the number of new students
YoY every month since August.

25,00011,301
20,00010,401

Number ofnew students
August - February

10,297

10,013
13,13915,00013,975

16,707

13,139(YoY ＋2,842)

10,00015,423

FY 2/21

16,625

Aug. to Feb.

9,451

5,000

Mar. to Jul.

0FY2/17
17.2期

FY
2/18
18.2期

FY2/19
19.2期

FY2/20
20.2期

FY2/2121.2期(Students)

7Number of Teachers

16,00014,000

Steady Teacher Registration in Anticipation ofFY 2/22 Business Growth
28000

Teachers (end of Feb)

27000

* Including part-time office staff

11,81412,00026000

11,07025000

10,381
9,269

10,00024000

Number ofteachers

8,106
8,000

7,082

7,453

23000

6,289
22000
6,000
21000
4,000
20000
2,000
19000

018000FY 2/14FY 2/15FY 2/16

FY 2/17

FY 2/18

FY 2/19

FY 2/20

FY 2/21(Students)

8School Development

Two openings in Mar. 2021 lift total network
to 262 schools
New school openings

FY 2/21
Newly Opened Schools

FY 2/212
Newly Opened Schools

Tsurukawa School (Tokyo)

Chitose Karasuyama South ExitSchool (Tokyo)

March 2020

Funabashi North Exit School(Chiba Pref.)March 2020

March 2021

Kokuryo School (Tokyo)
March 2021

Kyobashi School (Osaka Pref.)May 2020

Machida Terminal Exit School(Tokyo)
June 2020

Nagareyama Otakanomori School(Chiba)
June 2020✓ Adjacent schools in Tokaichibaand Aobadai combined toprovide customers with greatervalue (March 2021)✓ Will consider a dominant
strategy in anticipation offurther hybrid individualizedteaching, etc.
9Online Individualized Teaching~9,000 Students Took Lessons(Most Preparing for Entrance Exams)
Even after a state of emergency was declared in January 2021,
students were able to continue learning in a reassuring setting from home

✓ Online individualized classes for up to two students as inphysical lessons✓ Class system, designated teacher system and tuition fees
same as physical classes✓ Can be combined with physical classes (hybrid system)10

FY 2/22 Business Plan Summary
Speed up progress toward Vision 2030 through business growthand strategic implementation

Strategic
implementationof themedium-term
management
plan

Reform ofbusiness
infrastructure

1. Optimized developmentof locations➢ Open, relocate, expand, andcombine schools in anticipationof a hybrid system with both
physical classes and online
classes

2. Roll out online services➢ Service launch of ALLONLINE
Individualized Teaching(tentative name)

3. Enrich support forteacher growth➢ New Teacher's Summit
Run the Academy

Rebuild systems anddecide how to proceed➢ Rebuild basic systems and decide
how to proceed with cutover

11Net Sales and Operating Income

Seek New Record High for Net Sales in FY 2/22
30,0006000

Hospitality Management 2023
Net sales

Operating income

25,7195000

23,85825,00020,397
19,17520,00017,09415,000

2,217

4000

19,142

17,9092,634

22,132

21,261

2,790

3,105

2,889

3000

2,632

2,305

2,204
2000

10,000
1000

613

5,000

0

FY 2/16

FY 2/17

FY 2/18*Standalone results until FY2020

FY 2/19

FY 2/20

FY 2/21FY
FY 2/222/22

FY 2/23（Forecast）（Plan）

FY 2/24 (Millions of yen)
（Plan）

12

FY 2/22 results forecast(Millions of yen)

FY 2/21(consolidated)

Results

FY 2/22(consolidated)

Forecast

ChangeYoY

19,142

22,132

2,989

115.6%

Operating income

613

2,204

1,590

359.3%

Operating income
margin

3.2%

10.0%

6.8%

―

Ordinary income

647

2,205

1,557

340.4%

attributable to parentcompany

253

1,413

1,159558.5%

Net income margin

1.3%

6.4%

5.1%

―

EPS (Yen)

4.66

26.03

21.36

―

Net sales

Net income

Assumption: COVID-19 impact
No further school shutdown or class suspension from state of emergency
13FY 2/22 Dividend Forecast

Continue Shareholder Return Policy Based on a
Stable Financial Foundation Even in the Pandemic
Dividend payout results & forecast
FY 2/18

FY 2/19

FY 2/20

FY 2/21FY 2/22(Forecast)

Full-year dividend

26 yen26 yen26 yen*26 yen

26 yenDividend payout
ratio

80.9%

73.1%

74.4%

*557.8%99.8%

Mid-year dividend

13 yen13 yen13 yen13 yen13 yenEnd-of-year dividend

13 yen13 yen13 yen*13 yen

13 yen*Finalized at 38th Ordinary General
Meeting of Shareholders

Shareholder benefits program
The program remains intact. Shareholders are entitled to select one gift from those listed
in the shareholder benefits catalogue (e.g. food, pre paid card for purchasing books,
donation to social contribution activity).
14

FY 2/21 Consolidated Balance Sheet/
Cash Flow Statement(Millions of yen)Feb. 29, 2020Feb. 28, 2021

(consolidated)

Change(consolidated)

Cash and deposits

Current assets

9,790

7,572

Fixed assets

3,423

4,114

691

Total assets

13,214

11,687-1,526

Current liabilities

3,577

3,204

30

35

4

Total liabilities

3,608

3,239-368

Total net assets

9,606

8,447

-1,158 6,759 million yen

Total liabilities andnet assets

13,214

11,687-1,526Long-term liabilities-2,218 Down 1,890 million yen

Unpaid corporate tax, etc.

-372 Down 377 million yen

Retained earnings(Millions of yen)

FY 2/20

FY 2/21(consolidated)

YoY(consolidated)

Pre-tax annual net income

Operating cash flow

2,707

236

Investment cash flow

-963

-1,015-52

Financing cash flow

-1,411-1,411-0333-2,190-2,524

8,753

6,562

-2,190

Increase (decrease) in cash &cash equivalentsCash & cash equivalents at endof period-2,471 Down 2,398 million yen15

NEWS:2021 Certified Health & Productivity Management Outstanding Organizations

Recognized Three Straight Years for Continuously
Promoting Better & Sustained Employee Health
Main Company Initiatives(1) Provide information on thorough checkups
and assist with various medical examinations
for those at high risk of diseases such as
lifestyle diseases(2) Enhance facilities and action so that both
employees and their dependents can takeadvantage of and join in benefits(3) Hold online uterine cancer seminar to raise
employee knowledge(4) Hold an online fitness course to counter thelack of exercise exposed by the COVID-19pandemic(5) Hold online seminars on health practices
tailored to women's life stages(6) To create a working environment whereemployees can continue working, distribute a
handbook on working while providing nursing
care and hold an online nursing care seminar

16

Business Recovery
in the COVID-19 Pandemic
Katsuki Saito
President and Representative Director© 2021 Tokyo Individualized Educational Institute, INC.

Rapid Recovery of Student Numbers
Change in Monthly Enrolled Students YoY

Jul. 2020 -5,694
Feb. 2021 -806+4,888© 2021 Tokyo Individualized Educational Institute, INC.

19

Net Sales

Implement New Medium-term Management Plan
After the Pandemic(Millions of yen)

Net sales

25,00020,00015,00010,0005,000

015.2月期
FY
2/15

16.2月期
FY
2/16© 2021 Tokyo Individualized Educational Institute, INC.

17.2月期FY
2/17

18.2月期
FY
2/18

19.2月期FY
2/19

20.2月期
FY
2/20

21.2月期FY
2/21

22.2月期FY
2/22

23.2月期FY
2/23

24.2月期FY
2/24(Forecast)(Plan)(Plan)

20Hospitality
Management

The Company's Action Against the COVID-19
PandemicPrimary response in schools

Masks/faceshields
required

Rigorous
enforcementof handwashing
every classperiod[Other]Deskscleanedafter everyclass

Ventilation

Layouts
arranged tomaintain social
distancing

Thermalcamerasinstalled fortemperaturechecksClear
partitions
installed inmeeting
rooms- Manage physical condition before leaving for work
- Thorough cleaning according to manual before opening school- Sanitize after wearing face shield and uniform- Limited use of self-study spaces (spaced out to avoid the Three C's, reservation system, etc.)© 2021 Tokyo Individualized Educational Institute, INC.

22

Online Classes

Over 9,000 Students Took Lessons(Most Preparing for Entrance Exams)✓ Launched online
individualizedteaching service onJune 1✓ Classes offered toexam takers during
winter course✓ Provided reassurance
and safety throughcontinued learningfrom home© 2021 Tokyo Individualized Educational Institute, INC.

23

Rising acceptance into top schools

Results of Continued Provision ofQuality Educational Services
Acceptance into university vs. 2014

2021

220%

197%
188%

200%

170%

180%

216%

174%160%

140%

127%

[Schools]
National universities
Waseda, Keio, Sophia
GMARCH
4 top Kansai universities
Seinan Gakuin
Nanzan135%

120%

100%100%

2014
14年

2015
15年

© 2021 Tokyo Individualized Educational Institute, INC.

2016
16年

2017
17年

2018
18年

2019
19年

2020
20年

2021
21年
26

TEACHERS’ SUMMIT(annual school plan)

The Teacher's Summit (Annual School Plan)

Schools Are Teams Formulating School Plans
and Following the PDCA Cycle Year-round• Form vision• Analyze issues• Take action forcustomers• Refine policies• Regional

announcements• Share knowledge© 2021 Tokyo Individualized Educational Institute, INC.

29

3.14 TEACHERS’ SUMMIT 2021

First National Joint Summit
with ~5,000 Teachers✓ Five area schools
finalized as "BestPractice Schools"✓ Teachers joinedfrom theirschools© 2021 Tokyo Individualized Educational Institute, INC.

31

Hospitality
Management

VISION2030

A Co-created Future
Mutual Education
Through Hospitality Management© 2021 Tokyo Individualized Educational Institute, INC.

35

Disclaimer

Earnings forecasts and other information related to projections andstrategies contained in this material are forecast by the company basedon currently available information and certain assumptions judged to bereasonable. We make no representations or guarantees with respect tothe accuracy or completeness of this material.
Actual results may differ significantly from the forecast due to various
risk factors and uncertainties. The company is not liable for any
repercussions or damage caused by information in this material.
This material may not be copied or forwarded without permission for any
purpose.
This material was created to provide an understanding of the company
and is not intended to solicit investment in the company. Investment
decisions should be made at your own discretion.

© 2021 Tokyo Individualized Educational Institute, INC.

36