Summary of 3Q Business Results for the Fiscal Year Ending February 29, 2024
[Japan GAAP] (Consolidated)
January 10, 2024
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 3Q report:
January 11, 2024
Expected date of dividend payment:−
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 2024
(March 1, 2023 through November 30, 2023)(% 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 2024

15,196(0.8)

343(26.9)

346(27.7)

160(53.3)

3Q, fiscal year ended
February 2023

15,318(3.2)

469(60.5)

478(59.9)

342(54.4)

Note: Comprehensive income
3Q, fiscal year ending February 2024:
3Q, fiscal year ended February 2023:

160 million yen (-53.3%)
344 million yen (-54.3%)

Net income
per share

Diluted net income
per shareYen

Yen

3Q, fiscal year ending
February 2024

2.95

−

3Q, fiscal year ended
February 2023

6.31

−

(2) Consolidated financial position
Total assets

Net assets

Shareholder’s equity
ratio

million yen

million yen%

3Q, fiscal year ending
February 2024

10,588

7,640

72.0

Fiscal year ended
February 2023

11,410

8,457

74.0

Reference: Shareholders’ equity:
3Q, fiscal year ending February 2024:
Fiscal year ended February 2023:

7,620 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)

3Q, fiscal year ending
February 2024

54,291,435
sharesFiscal year ended
February 2023

54,291,435
shares3Q, fiscal year ending
February 2024

136
sharesFiscal year ended
February 2023

136
shares3Q, fiscal year ending
February 2024

54,291,299
shares3Q, fiscal year ended
February 2023

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 3 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
January 10, 2024.

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 .......... 3

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).................................................................... 9(Notes on Significant Changes in the Amount of Shareholders’ Equity) .......................................... 9(Changes in Accounting Policies).................................................................................................... 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.
The environment facing the Company in 3Q of the fiscal year ending February 2024 is becoming increasinglycompetitive 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 anincreased diversification of learning styles brought about by further development in AI and other information
technologies.
Amidst these circumstances, following on from the second quarter, the Company has continued to pursue reforms
to drive business growth. Efforts to pursue growth in 3Q of the consolidated fiscal year consisted of five key
initiatives. The first is to improve our organizational base. All employees have worked to redefine the value we
provide in light of the business challenges we face amidst a business environment that has undergone significant
changes. Through a series of dialogues between management and employees in the field, we have redefined thevalue the Company provides, and are currently developing plans to enhance the value of our schools in order todeliver on this value proposition at each of our schools.
The second is the development of further educational content. Following on from the mid-term university admission
course developed in the first quarter, we continued to develop courses to meet demand. Further, we developed ourin-school tutoring service, which launched on a trial basis in the first quarter, while leveraging the assets of theBenesse Group to build on our unique competitive advantages. As a result, we have seen a steady improvement in
the learning outcomes of our students. At the current time, we plan to roll this service out at a second school in theupcoming fiscal year as part of further business development efforts.
The third is the progress made in implementing DX at points of contact with customers. We tested theimplementation of package software providing customer communication tools to help foster communication withcustomers attending our schools.
The fourth involves moves toward school integration. We moved forward with plans to improve location profitability
while giving due consideration to customer convenience. In 3Q of the consolidated fiscal year, the Tsudanuma
South Exit School and the Tsudanuma School were relocated and integrated into the newly opened Tsudanuma
Beat School in November. In December, the Kichijoji-Honcho School was integrated into the Kichijoji Ekimae
School, and a decision was made to integrate the Machida Terminal Exit School into the Machida School in March
2024.
The fifth concerns the decision to go ahead with the trial introduction of the new service, CURIOO Kids. CURIOO
Kids is a class where children learn four skills essential for future generations – English, entrepreneurship,technology, and creativity. In order to pursue potential avenues of business growth in the field of exploratory
learning that is increasingly sought after in today’s society, in addition to curriculum-based individualized teaching,
the Company has made a capital investment in CURIOO LIMITED, and has entered into a franchise agreementwith its Japanese subsidiary, CURIOO JAPAN, with plans in place for a trial launch at the Benesse Science Labs
Kichijoji School.
Consolidated sales for 3Q of the fiscal year ending February 2024 were 15,196 million yen (down 0.8% year-onyear), Operating income was 343 million yen (down 26.9% year-on-year), ordinary income was 346 million yen(down 27.7% year-on-year), with a quarterly net income attributable to owners of the parent company of 160 million
yen (down 53.3% in the same period of the previous year).

- 2 -Further, details into the factors causing year-on-year changes in net sales and operating income in the 3Q of the
fiscal year are outlined below.
<Primary factors resulting in changes in net sales>• Net sales increased 7 million yen compared to the previous year.
• While the impact of price revisions was seen in comparisons to the previous year, the effect of continued
marketing reforms following on from the second quarter helped improve contract conversion rates in relation toinquiries.
<Primary factors resulting in changes in operating income>• Operating income rose 21 million yen compared to the previous year.
• In addition to the increase in profit from increased sales, improvements in the cost of sales from rent reductions
and other factors also helped drive improvements in operating income.
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[Assets]
Total assets as of November 30, 2023 were 10,588 million yen, an 821 million yen (7.2%) decline from the end of
the consolidated previous fiscal year.
Current assets were 6,357 million yen, a 580 million yen (8.4%) decline from the end of the previous consolidated
fiscal year. This decline was primarily caused by a 528 million yen decrease in cash and deposits.
Tangible fixed assets were 775 million yen, a 1 million yen (0.2%) increase compared to the end of the previous
consolidated fiscal year.
Intangible fixed assets were 1,513 million yen, a 253 million yen (14.4%) decline from the end of the previous
consolidated fiscal year. This decrease was primarily due to the increased amortization of student placement
system and a billing platform system.
Investments and other assets were 1,941 million yen, an 11 million yen (0.6%) increase from the end of theprevious consolidated fiscal year. This increase was primarily the result of a 51 million yen increase in otherassets, which outweighed an increase of 40 million yen in deposits and security money.
[Liabilities]
Total liabilities as of November 30, 2023 were 2,947 million yen, a 5 million yen (0.2%) decline from the end of theprevious consolidated fiscal year. This decline was primarily caused by decreases in unpaid corporate tax, etc. of
319 million yen, “other” current liabilities of 191 million yen, and accrued expenses of 50 million yen, which
outweighed increases of 428 million yen in contractual liabilities and 126 million yen in the reserve for bonuses.
[Net assets]
Net assets as of November 30, 2023 were 7,640 million yen, an 816 million yen (9.7%) decline from the end of
the previous consolidated fiscal year. This decline was the result of surplus dividend payments of 977 million yen,and quarterly net income attributable to owners of the parent company totaling 160 million yen.

(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 Business- 3 -Results 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 3Q of the current
consolidated
fiscal year
(As of November 30, 2023)

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

5,541,504
242,265
31,027548,908(5,816)
6,357,890

774,422775,589

163,555
1,467,161
136,261
1,766,978148,222
1,287,524
77,462
1,513,209

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

1,544,228
397,582
1,941,810
4,230,609
10,588,499

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

17,986
832,675
20,3091,331,270
248,842−
470,358
2,921,443

30,30030,3002,953,299

26,371
26,371
2,947,815

642,157
1,013,565
6,782,542(121)
8,438,144

642,157
1,013,565
5,965,354(121)
7,620,956−−
18,8688,457,012
11,410,311

(138)
(138)
19,867
7,640,684
10,588,499

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
Accumulated other comprehensive income
Other differences in valuation of equities
Total accumulated other comprehensive income
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
3Q consolidated cumulative period(Unit: Thousands of yen)
3Q, fiscal year ended
February 2023
(March 1, 2022
to November 30, 2022)
Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income and dividends
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 2024
(March 1, 2023
to November 30, 2023)

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

15,196,279
10,156,998
5,039,281
4,695,812
343,468

78
550
508
2,638

89
751
−
1,646

5,099

−

17
8,892
478,606

296
2,784
346,252* 7,9547,954
470,652
69,95456,366
126,321344,331
1,748* 23,204
23,204
323,048
186,288(24,294)
161,994
161,054999

342,582

160,055

Quarterly statement of comprehensive income
3Q of consolidated cumulative period(Unit: Thousands of yen)
3Q, fiscal year ended
February 2023
(March 1, 2022
to November 30, 2022)
Quarterly net income
Accumulated other comprehensive income
Other differences in valuation of equities
Total accumulated other comprehensive 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 2024
(March 1, 2023
to November 30, 2023)

344,331

161,054−−344,331

(138)
(138)
160,915

342,582

159,916

1,748

999

(3) Notes Concerning Quarterly Consolidated Financial Statements(Notes on Quarterly Consolidated Income Statements)* Impairment losses
3Q, consolidated fiscal year ended February 2023 (March 1, 2022 to November 30, 2022)
The Group recorded an impairment loss for 3Q of the current consolidated fiscal year.
Application
Business asset

Type

Location

Buildings, tools, furniture andfixtures, leased assets, andlong-term prepaid expenses

Schools in Fukuoka Prefecture,others (two schools)

Amount(thousands of yen)
7,954

The Group groups schools – the smallest cash flow producing units.
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 tobe 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
Total

247 thousand yen
7,954 thousand yen

3Q, fiscal year ending February 2024 (March 1, 2023 to November 30, 2023)
The Group recorded an impairment loss for 3Q of the current consolidated 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- 8 -(Notes Regarding the Company as a Going Concern)
Not applicable(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable(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 consolidated fiscal year ending February 2024. In
accordance with the 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 have no 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.

- 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 the 3Q of the consolidated fiscal year ending February 2024 is as follows:
3Q of the fiscal year ending February 2024
Segment name

Net sales(thousands of yen)

Composition ratio(%)

Year-on-year comparison(%)

Individualized teaching
Primary school students

1,738,363

11.4

102.4

Middle school students

5,087,719

33.5

98.7

High school students

8,056,532

53.0

99.0

14,882,614

97.9

99.3

313,665

2.1

95.1

15,196,279

100.0

99.2

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.

- 10 -