Summary of 3Q Business Results for Fiscal Year Ending February 28, 2022
[Japan GAAP] (Consolidated)
January 11, 2022
Company
Tokyo Individualized Educational Institute, Inc.
Listed on the TSE 1
Stock Code4745
URL https://www.tkg-jp.com/en/ir/
Representative
Katsuki Saito, President and Representative Director
Contact
Takeharu Tsutsumi, Director
Tel: +81 3 6911 3216
Expected submission date of the 3Q report:
January 12, 2022–
Expected date of dividend payment:
Preparation of 3Q supplementary financial materials:
Yes
3Q results briefing:No(Rounded down to million yen)

1. 3Q consolidated business results for fiscal year ending February 2022
(March 1, 2021 through November 30, 2021)(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%

3Q, Fiscal year ending
February 2022

15,829

22.2

1,188

−

1,193

−

751

−

3Q, Fiscal year ended
February 2021

12,955

−

(339)

−

(305)

−

(380)

−

Note: Comprehensive income
3Q, Fiscal year ending February 2022:
3Q, Fiscal year ended February 2021:

752 million yen (−%)
(380) million yen (−%)

Net income per share

Diluted net income
per share

Yen

Yen

3Q, Fiscal year ending
February 2022

13.84

−

3Q, Fiscal year ended
February 2021

(7.01)−

Note: In the fiscal year ended February 2021, provisional accounting practices were finalized in relation to a corporate
merger. Figures for the third quarter of the fiscal year ended February 2021 reflect the provisional accounting
practices that were finalized.

(2) Consolidated financial position
Total assets

Net assets

Shareholder’s equity
ratio

Million yen

Million yen%

As of November 30, 2021

11,024

7,788

70.5

As of February 28, 2021

11,687

8,447

72.2

Reference: Shareholders’ equity:
As of November 30, 2021:
As of February 28, 2021:

7,772 million yen
8,433 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 2021

−

13.00

−

13.00

26.00

Fiscal year ending
February 2022

−

13.00

−
13.00

26.00

Fiscal year ending
February 2022 (forecast)
Note: Revisions to the most recent dividend forecast: None

3. Forecast of consolidated business results for fiscal year ending February 2022
(March 1, 2021 through February 28, 2022)(% change from the previous corresponding period)

OperatingincomeNet sales
million yen

Fiscal year ending
February 2022

22,132% million yen

15.6

2,204

%

259.3

Note: Revisions to the most recent performance forecast: None

Ordinary income

Net income
attributable toparent company

million yen

million yen%

2,205 240.4

Net income
per share%yen

1,413 458.5

26.03

* Notes(1)

Transfer of important subsidiaries during the 3Q of fiscal year ending February 2022: 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.: None
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)(Number of shares)
As of November 30,
2021

54,291,435

As of February 28,
2021

54,291,435

As of November 30,
2021

136

As of February 28,
2021

136

3Q, Fiscal year ending
February 2022

54,291,299

3Q, Fiscal year ended
February 2021

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 report are based on information currently available to the Company andcertain 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 3Q Results (3) Explanation of the Forecast ofConsolidated Business Results and other Future Forecasts.
(How to obtain supplementary information on 3Q business results)
Supplementary quarterly materials (fact sheet) will be published on the Company’s website on January 11, 2022.

Contents of Attachment

1. Qualitative Information on 3Q 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 ............................................................... 4(1)

Quarterly Consolidated Balance Sheets ......................................................................................... 4(2)

Quarterly Consolidated Statements of Operations and Quarterly Statement ofComprehensive Income .................................................................................................................. 5(3)

Notes Concerning Quarterly Consolidated Financial Statements ................................................... 7(Notes on Quarterly Consolidated Income Statements) .................................................................. 7(Notes Regarding the Company as a Going Concern).................................................................... 7(Notes on Significant Changes in the Amount of Shareholders’ Equity) .......................................... 7(Additional Information) ................................................................................................................... 7(Segment Information, etc.) ............................................................................................................ 7(Business Combinations, etc.) ........................................................................................................ 7

3. Other Notes ............................................................................................................................................. 9
Circumstances Concerning Orders Received, Sales, and Production ............................................ 9- 1 -1. Qualitative Information on 3Q Results(1) Explanation of Operating Results
Information related to future events in this report is based on judgments made by the Company as of November 30,
2021.
The provisional accounting treatment applied to 3Q of fiscal year ended February 2021 for the businesscombination with HRBC Co., Ltd. on January 24, 2020 was finalized at the end of fiscal year ended February 2021.
The amounts after revision for finalization are therefore used in the analysis and comparison with the consolidated
results for the first half of the previous fiscal year.
In terms of the Japanese economic outlook for 3Q of the current fiscal year, while the difficult circumstancesbrought about by the novel coronavirus are alleviating somewhat, the global spread of the new Omicron variant
continues to present warning signs for the future.
In the prep school market, we continue to see intensifying competition in the form of new entrants from outside theindustry, as well as continued restructuring within the industry, prompted by the digitization of teachingenvironments promoted through the GIGA school concept, and the increased needs for online education services
caused by the spread of the novel coronavirus.
Amidst these circumstances, we have looked to provide teaching services that are closely attuned to the needs ofeach student centered around our corporate philosophy: “The confidence that you can do it if you try; The joy oftaking on a new challenge; The importance of having dreams - With these three educational ideals and hospitality
as the linchpin of our corporate activities, we shall contribute to a happy future for humanity.” The current fiscal year
represents the first year of our mid- to long-term vision, “VISION 2030,” and our new medium-term management
plan “Hospitality Management 2023.” We will use this year to propel the business forward, accelerating progress
toward the realization of “VISION 2030” based on two core pillars: Business growth and promotion of the strategy
laid out in the new medium-term management plan.
During 3Q of the current fiscal year, the Company has worked to provide a safe learning environment for all incircumstances that require continued vigilance to prevent the spread of the novel coronavirus (COVID-19),
prioritizing the peace of mind and safety of students and employees alike above all else. We also continued toprovide online individualized teaching services so students could attend personalized learning classes from theirown homes, adding high value in improving convenience and learning efficiency, while also ensuring a greater levelof peace of mind and safety.
For employee development, the backbone of our teaching services, our TEACHER’S SUMMIT was held online.
This is a cocreation program where employees and teachers learn and grow together through practical learning
exercises, and we are making continued efforts to further bolster these activities. In site development, we have
employed a dominant strategy focused primarily on metropolitan centers looked to boost the strength of our brandwithin the region. In March 2021, we opened two Tokyo Individualized Educational Institute schools (TIEI) in Tokyo,
the Chitose Karasuyama South Exit School and the Kokuryo School. In June 2021, TIEI opened two more schools,
the Musashi Nakahara School in Kanagawa and the Mita School in Tokyo. Further, two new TIEI schools in Tokyo
were opened, the Kanamachi School in September, and the Myogadani School in October. This brought the total
number of individualized educational classrooms to 266 as of the end of November 2021, all of which are under the
direct operation of the Company. The number of students for the cumulative 3Q accounting period (September toNovember) showed signs of recovery with the lifting of the state of emergency declaration. Average student
enrollments during the period reached 33,481, an increase of 10.8% year-on-year. This represents 0.5% growthfrom the average student enrollments of 33,327 during the same period of the year before last, maintaining the levelset prior to the outbreak of COVID-19.

- 2 -Persistence in these business activities resulted in a 2,873 million yen (22.2%) year-on-year increase in net sales
for 3Q of the current fiscal year, to 15,829 million yen.
The ratio in the increase in teacher salaries to net sales has improved, operating income was 1,188 million yen(compared to an operating loss of 339 million yen in 3Q of the previous fiscal year), ordinary income was 1,193
million yen (compared to an ordinary loss of 305 million yen in 3Q of the previous fiscal year), and quarterly net
income attributable to owners of the parent company was 751 million yen (compared to a net loss attributable toowners of the parent company of 380 million yen in 3Q of the previous fiscal year).
Further, the main line of business for our Group is the individualized teaching business. Net sales, segment profit,and other totals have been omitted for other business lines as these represent a small fraction of total earnings.

(2) Explanation of Financial Standing[Assets]
Total assets as of November 30, 2021 were 11,024 million yen, a 663 million yen (5.7%) decrease from the end of
the previous fiscal year.
Liquid assets were 6,567 million yen, a 1,005 million yen (13.3%) decline from the end of the previous fiscal year.
This decline was primarily caused by a decrease of 811 million yen in cash and deposits and a decrease of 215
million yen in accounts receivable.
Tangible fixed assets were 823 million yen, a 6 million yen (0.7%) increase from the end of the previous fiscal
year. This increase was primarily due to capital investments for opening new schools and expanding classrooms.
Intangible fixed assets were 1,660 million yen, a 324 million yen (24.2%) increase from the end of the previous
fiscal year. This increase was primarily due to capital investments in development of a student placement system
and a billing platform system.
Investments and other assets were 1,972 million yen, an 11 million yen (0.6%) increase from the end of theprevious fiscal year. This increase was primarily due to a 7 million yen increase in leases, etc. related to newschool openings.
[Liabilities]
Total liabilities as of November 30, 2021 were 3,235 million yen, a 4 million yen (0.1%) decrease from the end of
the previous fiscal year. This decrease was primarily due to decreases of 61 million yen in other and 60 million
yen in reserve for shareholder benefits. This comes despite increases of 71 million yen in the reserve for bonuses
and 45 million yen in accrued tax payable, etc.
[Net assets]
Net assets as of November 30, 2021 were 7,788 million yen, a 658 million yen (7.8%) decline from the end of theprevious fiscal year. This decline was the result of surplus dividend payments of 1,411 million yen and 751 million
yen in 3Q net income attributable to owners of the parent company.

(3) Explanation of the Forecast of Consolidated Business Results and other Future Forecasts
There have been no changes to the forecast of consolidated business results for fiscal year ending February 2022
announced on April 12, 2021 for the full year in the Summary of Business Results for the Year Ended February 28,
2021 [Japan GAAP] (Consolidated).

- 3 -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, 2021)

End of 3Q of the current
consolidated fiscal year
(As of November 30, 2021)

6,562,644
562,627
30,677425,737(9,194)
7,572,492

5,751,387
347,237
28,717449,269(9,349)6,567,262

817,170

823,271

204,444
1,132,253
1,336,697

189,111
1,471,733
1,660,844

1,603,746
357,367
1,961,114
4,114,982
11,687,475

1,611,324
361,672
1,972,996
4,457,112
11,024,375

9,176
312,541
134,360
60,5472,688,109
3,204,734

15,820358,228
206,266－
2,626,618
3,206,934

35,16935,1693,239,903

28,78428,7843,235,718

642,157
1,013,565
6,777,605(121)
8,433,207
14,364
8,447,571
11,687,475

642,157
1,013,565
6,117,188(121)
7,772,790
15,865
7,788,656
11,024,375

AssetsLiquid assets
Cash and deposits
Accounts receivable
Inventories
Other
Allowances for bad debts
Total liquid assets
Fixed assets
Tangible fixed assets
Intangible fixed assets
Goodwill
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 tax payable, etc.
Reserve for bonuses
Reserve for shareholder benefits
Other
Total current liabilities
Fixed liabilities
Other
Total fixed liabilities
Total liabilities
Net assets
Shareholder's equity
CapitalCapital surplus
Retained earnings
Treasury stock
Total shareholder's equity
Minority interest
Total net assets
Total liabilities and net assets- 4 -(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 2021
(March 1, 2020
to November 30, 2020)
Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest and dividend income
Gain on disposal of unpaid dividends
Subsidy income
Refund of premium for canceled insurance
Gain on bad debts recovered
Other
Total non-operating income
Ordinary income (loss)
Extraordinary income
Temporary employee leave subsidies received
Total extraordinary income
Extraordinary loss
Loss on compensation for temporary employee
leave
Total extraordinary loss
Income (loss) before income taxes
Corporate income, inhabitant and enterprise taxes
Adjustment of corporate taxes, etc.
Total accrued tax payable
Net income (loss)
Net income (loss) attributable to minority interests
Net income (loss) attributable to owners of the parent
company- 5 -3Q, Fiscal year ending
February 2022
(March 1, 2021
to November 30, 2021)

12,955,835
9,517,350
3,438,485
3,777,943(339,458)

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

281
748
24,4938,026−
15
33,565(305,892)

60
612
1,400
−
2,976
54
5,104
1,193,982*1 78,960

78,960−−*2 208,149−

208,149(435,081)
56,691(110,913)(54,222)(380,858)(283)−
1,193,982
438,8092,514
441,324752,658
1,501(380,575)

751,157

Quarterly statement of comprehensive income
3Q consolidated cumulative period(Unit: Thousands of yen)
3Q, Fiscal year ended
February 2021
(March 1, 2020
to November 30, 2020)
Net income (loss)
Comprehensive income(Breakdown)Comprehensive income (loss) attributable to ownersof the parent company
Comprehensive income (loss) attributable to minority
interests- 6 -3Q, Fiscal year ending
February 2022
(March 1, 2021
to November 30, 2021)(380,858)(380,858)

752,658
752,658(380,575)

751,157

(283)

1,501

(3) Notes Concerning Quarterly Consolidated Financial Statements(Notes on Quarterly Consolidated Income Statements)*1 Notes on Subsidies for Temporary Employee Leave
3Q of consolidated fiscal year ended February 2021 (March 1, 2020 to November 30, 2020)
The Company temporarily closed all schools under the State of Emergency declared by the Japanese
government due to the COVID-19 pandemic. Extraordinary income was posted for the subsidy received to provide
temporary employee leave compensation (casual teachers and part-time employees).
3Q of consolidated fiscal year ending February 2022 (March 1, 2021 to November 30, 2021)
Not applicable*2 Notes on Compensation for Temporary Employee Leave
3Q of consolidated fiscal year ended February 2021 (March 1, 2020 to November 30, 2020)
The COVID-19 pandemic prompted the Japanese government to request the closure of elementary, junior high,and high schools nationwide, and the Company also closed its schools on a temporary basis following thedeclaration and extension of the State of Emergency. As a result of this measure, we recorded an extraordinary
loss on employee compensation for leave from work for temporary employees (casual teachers and part-time
employees).
3Q of consolidated fiscal year ending February 2022 (March 1, 2021 to November 30, 2021)
Not applicable(Notes Regarding the Company as a Going Concern)
Not applicable(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable(Additional Information)
In the current fiscal year the Company made accounting estimates for impaired assets, including goodwill andother fixed assets, and the retrievability of deferred tax assets based on the assumption that the COVID-19
pandemic would not pose a significant impact. Since it remains unclear when the COVID-19 outbreak willsubside, there is still a potential risk of future losses if the assumptions stated above do not materialize.
(Segment Information, etc.)[Segment Information]
The main line of business for our Group is the individualized teaching business. Net sales, segment profit, andother totals have been omitted for other business lines as these represent a small fraction of total earnings.
(Business Combinations, etc.)
Significant revisions to the initial allocation of acquisition costs in comparative information
The provisional accounting treatment applied for 3Q of the previous fiscal year concerning accounting for thebusiness combination with HRBC Co., Ltd. on January 24, 2020, was finalized at the end of the previous fiscal
year.

- 7 -

The finalization of this provisional accounting treatment has resulted in signification revisions to the initial
allocation of acquisition costs being reflected in comparative information included in the quarterly consolidated
financial statements for 3Q of the current fiscal year. The provisional goodwill amount of 255,794,000 yen was
reduced by 46,238,000 yen to 209,555,000 yen as a result of the finalization of the accounting treatment. The
decrease in goodwill is the result of an increase in intangible fixed assets and other assets of 69,541,000 yen, andan increase in fixed liabilities and other liabilities of 24,054,000 yen.
As a result, the consolidated income statement for 3Q of the previous consolidated fiscal year recorded anincrease of 2,938,000 yen in selling, general and administrative expenses, and an increase of 2,186,000 yen in
the adjustment of corporate taxes, etc. Further, operating loss, ordinary loss, and quarterly loss before income
taxes each decreased by 2,938,000 yen, and 3Q net loss and 3Q net loss attributable to owners of the parent
company both decreased by 751,000 yen.

- 8 -

3. Other Notes
Circumstances Concerning Orders Received, Sales, and Production(1)

Production and orders received
The Group is primarily involved with providing classes to students, and does not record production and orders
received.

(2)

Sales
Sales performance by segment for 3Q of fiscal year ending February 2022 is as follows:
3Q of fiscal year ending February 2022
Segment nameSales
(thousands of yen)

Composition(% of total)

Year-on-year comparison(%)

Individualized teaching
Primary school students

1,659,027

10.5

134.9

Junior high school students

5,196,100

32.8

123.5

High school students

8,657,182

54.7

118.6

15,512,311

98.0

121.8

316,853

2.0

142.5

15,829,164

100.0

122.2

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

Amounts listed above do not include consumption tax, etc.
Other business activities include science labs, writing classes, online-only individualized teaching, and
HRBC Co., Ltd.

- 9 -