Summary of 1Q Business Results for the Fiscal Year Ending February 28, 2023
[Japan GAAP] (Consolidated)
July 11, 2022
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 submission date of the 1Q report:
July 12, 2022
Expected date of dividend payment:−
Preparation of 1Q supplementary financial document:Yes
1Q results briefing:No(Rounded down to million yen)

1. 1Q consolidated business results for the fiscal year ending February 2023
(March 1, 2022 through May 31, 2022)(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 ending
February 2023 1Q

4,248

(1.7)

(826)

−

(825)

−

(487)

−

Fiscal year ended
February 2022 1Q

4,322

102.5

(621)

−

(620)

−

(451)

−

Note: Comprehensive income
Fiscal year ending February 2023 1Q:
Fiscal year ended February 2022 1Q:(486) million yen (-%)
(450) million yen (-%)

Net income per
share

Diluted net
income per share
Yen

Yen

Fiscal year ending
February 2023 1Q(8.97)−

Fiscal year ended
February 2022 1Q(8.31)−(2) Consolidated financial position
Total assets

Shareholder’s equity
ratio

Net assets

million yen

million yen%

Fiscal year ending
February 2023 1Q

10,127

7,424

73.1

As of February 2022

12,679

8,616

67.8

Reference: Shareholders’ equity:
Fiscal year ending February 2023 1Q
As of February 2022

7,407 million yen
8,600 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 2022

−

13.00

−

13.00

26.00

Fiscal year ending
February 2023

−
13.00

−

13.00

26.00

Fiscal year ending
February 2023
(forecast)

Note: Revisions to the most recent dividend forecast: None

3. Forecast of consolidated business results for fiscal year ending February 2023
(March 1, 2022 through February 28, 2023)(% change from the previous corresponding period)

Net sales

Fiscal year ending
February 2023

Operating income

Ordinary income

Net income
attributable toparent company

Net income
per share

million yen%

million yen%

million yen%

million yen%

Yen

23,858

6.1

2,632

9.8

2,633

9.6

1,687

6.9

31.08

Note: Revisions to the most recent performance forecast: None

* 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)

Fiscal year
ending February
2023 1Q

54,291,435 shares

As ofFebruary 2022

54,291,435 sharesFiscal year
ending February
2023 1Q

136 shares

As ofFebruary 2022

136 sharesFiscal year
ending February
2023 1Q

54,291,299 sharesFiscal year
ended February
2022 1Q

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 4 of the Attachment “1. Qualitative Information on Quarterly Results (3) Explanation of theForecast of Consolidated Business Results and other Future Forecasts.

Contents of Attachment

1. Qualitative Information on Quarterly Results ........................................................................................... 2(1)

Explanation of Operating Results ................................................................................................... 2(2)

Explanation of Financial Standing ................................................................................................... 4(3)

Explanation of the Forecast of Consolidated Business Results and other Future Forecasts .......... 4

2. Quarterly Consolidated Financial Statements and Main Notes ............................................................... 5(1)

Quarterly Consolidated Balance Sheet ........................................................................................... 5(2)

Quarterly Consolidated Statements of Operations and Quarterly Statement ofComprehensive Income .................................................................................................................. 6(3)

Notes Concerning Quarterly Consolidated Financial Statements ................................................... 8(Notes Regarding the Company as a Going Concern).................................................................... 8(Notes on Significant Changes in the Amount of Shareholders’ Equity) .......................................... 8(Changes in Accounting Policies).................................................................................................... 8(Additional Information) ................................................................................................................... 8(Segment Information, etc.) ............................................................................................................ 8

3. Other Notes ............................................................................................................................................. 9
Circumstances Concerning Orders Received, Sales, and Production..................................................... 9- 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 Japanese economic outlook for the first quarter of the fiscal year ending February 2023 remains uncertain in
the face of the rapid depreciation of the yen and rising commodity prices as concerns of a protracted conflict in
Ukraine persist. While efforts to boost vaccination rates and other measures have restored some semblance of
normality in socio-economic activities, the situation concerning the impact of COVID-19 remains unpredictable, with
infection rates rising due to the omicron variant.
With regard to the education system in Japan, Japan's new school curriculum guidelines for junior high schools
were implemented across the board in FY2021, and the new school curriculum guidelines for high schools were
implemented beginning in FY2022. This transition in the education system has further accelerated the shift to online
learning, which was already in high demand as a result of COVID-19, and has increased the need for digitallearning materials that facilitate the effective learning of curriculum subjects. The prep school market also needs toadopt a flexible, rapid response to these changes, and is faced with intensifying competition between participants,
including new entrants from other industries.
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.
During the first quarter of the fiscal year ending February 2023, we were impacted by the new variant strain of thenovel coronavirus, omicron. While prioritizing the safety and security of students and employees alike above all elseby ensuring that infectious disease control measures were stringently followed, we strived to help our students
achieve their learning goals. In terms of new business activities, with the increased shift toward online learning, webegan trials of the 1online business for online individualized teaching.
Our competitive advantage is in our “business of ‘Creating Shared Value’ with university students”, a businessprocess that serves as the foundation for our business activities. A key initiative under this arm of our business isthe TEACHERS’ SUMMIT Annual Class Plan, which has primarily been held online since 2020, and is continually
being improved upon. In March 2022, the nation-wide general meeting TEACHERS’ SUMMIT 2022 was held, witharound 5,000 participants, primarily teachers in attendance.
In terms of school expansion, we continued to look to open dominant schools focused primarily on metropolitan
centers as part of efforts to bolster the strength of our brand in regional areas to further expand the business. In
June 2022, we opened two Tokyo Individualized Educational Institute schools (TIEI) in Tokyo, the Ikegami School
and the Kagurazaka School.
While student recruitment weakened somewhat due to the extended impact of the omicron strain of COVID-19, theaverage number of enrolled students for the 1Q of the fiscal year ending February 2023 was 29,495 (up 0.2% yearon-year) due to the strong rate at which students re-enrolled to continue their studies at our schools in the newschool year based on the student-oriented, high quality educational service we provide.
As a result of the above, while the average number of enrolled students for the period slightly exceeded theprevious year, net sales for 1Q of the fiscal year ending February 2023 fell by 74 million yen (1.7%) year-on-year to
4,248 million yen due to changes in student ratios for the school year and a decline in new enrollments.

- 2 -While steps were taken to optimize teacher placements, operating losses were 826 million yen (compared to an
operating loss of 621 million yen in same quarter of the previous fiscal year) due to a drop in earnings due toreduced revenues, an increase in depreciation and amortization expenses pertaining to the redevelopment of thestudent placement system, and the corresponding increase in operating and maintenance costs, and increases inadvertising expenses. Ordinary losses were 825 million yen (compared to an ordinary loss of 620 million yen insame quarter of the previous fiscal year), and quarterly net losses attributable to owners of the parent company
were 487 million yen (compared to quarterly net losses attributable to owners of the parent company of 451 million
yen in same quarter of the previous fiscal year).
Due to the nature of the education business, the net sales of the Company increase in the second and fourth
quarters of the consolidated fiscal year during which time summer and winter courses are held. Conversely,
seasonal factors in the first quarter of the fiscal year tend to result in temporary losses caused by concentrated
investment in student recruitment and other promotional activities held ahead of the new school 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.

- 3 -(2) Explanation of Financial Standing[Assets]
Total assets at the end of the first quarter of the current fiscal year were 10,127 million yen, a 2,552 million yen(20.1%) decline from the end of the previous fiscal year.
Current assets were at 5,274 million yen, a 2,882 million yen (35.3%) decline from the end of the previous fiscal
year. Although “other” current assets increased by 115 million yen, this decline is primarily attributed to a decreaseof 2,754 million yen in cash and deposits, and a 239 million yen decline in accounts receivable.
Tangible fixed assets were 807 million yen, a 4 million yen (0.5%) increase from the end of the previous fiscal
year. This increase was primarily due to new school openings and the replacement of equipment at existing
schools.
Intangible fixed assets were 1,785 million yen, a 56 million yen (3.3%) 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 abilling platform system.
Investments and other assets were 2,259 million yen, a 269 million yen (13.5%) increase from the end of theprevious fiscal year. This increase was primarily caused by an increase of 6 million yen as a security deposit for
new school openings, and a further 262 million yen for “other” activities.
[Liabilities]
Total liabilities at the end of the first quarter of the current fiscal year were 2,703 million yen, a 1,359 million yen(33.5%) decline from the end of the previous fiscal year. This decline was primarily caused by a decrease inaccrued tax payable, etc. of 780 million yen, and other decreases of 654 million yen, which outweighed anincrease of 70 million yen in the reserve for bonuses.
[Net assets]
Net assets at the end of the first quarter of the current fiscal year were 7,424 million yen, a 1,192 million yen(13.8%) decline from the end of the previous fiscal year. This decline was the result of surplus dividend paymentsof 705 million yen, and quarterly net losses attributable to owners of the parent company totaling 487 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 2023, there have been nochanges to the forecast of consolidated business results announced for the full year in the Summary of BusinessResults for the Year Ended February 28, 2022 [Japan GAAP] (Consolidated) disclosed April 12, 2022.

- 4 -2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheet(Unit: Thousands of yen)Previous consolidated
fiscal year
(February 28, 2022)
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
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 officer 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- 5 -First quarter consolidated
accounting period(May 31, 2022)

7,103,309
586,225
35,574441,027(9,057)
8,157,080

4,348,988
346,485
33,841
556,638(11,090)
5,274,864

803,179

807,373

184,000
1,545,628
1,729,628

178,888
1,606,992
1,785,881

1,601,797
388,225
1,990,022
4,522,831
12,679,911

1,608,493
650,789
2,259,282
4,852,537
10,127,402

8,357
823,548
116,244
20,79086,8422,980,613
4,036,397

13,31042,729186,721
20,79086,842
2,325,803
2,676,197

26,852
26,852
4,063,249

27,07027,0702,703,268

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

642,157
1,013,565
5,751,472(121)
7,407,073
17,0597,424,133
10,127,402

(2) Quarterly Consolidated Statements of Operations and Quarterly Statement of Comprehensive Income
Quarterly Consolidated Income Statements
First quarter consolidated cumulative period(Unit: Thousands of yen)Previous first quarter
consolidated
cumulative period(March 1, 2021
to May 31, 2021)
Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Gain on disposal of unpaid dividends
Subsidy income
Gain on bad debts recovered
Other
Total non-operating income
Ordinary loss
Quarterly losses before income taxes
Corporate income, inhabitant and enterprise taxes
Adjustment of corporate taxes, etc.
Total accrued tax payable
Quarterly net losses
Quarterly net income attributable to minority interests
Quarterly net losses attributable to owners of the parent
company- 6 -Current first quarter
consolidated
cumulative period(March 1, 2022
to May 31, 2022)

4,322,505
3,322,382
1,000,123
1,621,601(621,478)

4,248,251
3,280,123
968,128
1,794,462(826,334)

1
339
−
900
41
1,282
(620,195)(620,195)
19,135(188,470)(169,335)(450,860)
147

1
247
285
717
4
1,255
(825,078)(825,078)(86,329)(252,007)(338,336)(486,742)
446(451,008)(487,188)

Quarterly statement of comprehensive income
First quarter consolidated cumulative period(Unit: Thousands of yen)Previous first quarter
consolidated
cumulative period(March 1, 2021
to May 31, 2021)
Quarterly net losses
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income attributable toowners of the parent company
Quarterly comprehensive income attributable tominority interests- 7 -Current quarter
consolidated
cumulative period(March 1, 2022
to May 31, 2022)(450,860)(450,860)(486,742)(486,742)(451,008)(487,188)

147

446

(3) Notes Concerning Quarterly Consolidated Financial Statements(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 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 first quarter of the fiscal year ending February 2023. Under this change,
monetary amounts expected to be received in exchange for goods and services are recognized as revenue atthe moment control of 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 firstquarter of the fiscal year ending February 2023. Further, this change does not affect profit and loss statements
for the first quarter of the fiscal year ending February 2023.
With the application of the Accounting Standard for Revenue Recognition, “advances received”, which had
previously been listed under “other” in “current liabilities” in the consolidated balance sheet for the previous
consolidated fiscal year, is now included in “other” under “current liabilities” as a “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 first quarter of the fiscal year ending February 2023. The new accounting
standards prescribed by the Accounting Standard for Fair Value Measurement shall be applied prospectively inaccordance with the provisions 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 onquarterly consolidated financial statements.
(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 novel
coronavirus pandemic would not pose a significant impact. However, there remains the potential for future losses
should the above supposition fail to 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.

- 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 the current first quarter consolidated cumulative period is as follows:
Current first quarter consolidated cumulative period
Segment name

Net sales(thousands of yen)

Composition ratio(%)

Year-on-year comparison(%)

Individualized teaching
Primary school students

515,741

12.1

104.2

Junior high school students

1,493,420

35.2

101.1

High school students

2,138,633

50.3

94.7

4,147,795

97.6

98.0

100,455

2.4

109.2

4,248,251

100.0

98.3

Total individualized teaching
Other business total
Total(Note)

Other business activities include science labs, writing classes, online individualized learning, and corporate
human resource development activities provided by HRBC Co., Ltd.

- 9 -