Earnings Briefing
Materials for FY2023
March 1, 2023 to February 29, 2024

Tokyo Individualized Educational Institute, Inc.
April 9, 2024

Today’s Agenda

1. FY2023 Performance and FY2024 Earnings
Forecast
2. FY2024 Business Plan
3. Q&A1

1. FY2023 Performance and FY2024
Earnings Forecast
Tokyo Individualized Educational Institute, Inc.

2

Details of FY2023 Full-Year Earnings
Announcement

3Snapshot of FY2023 Earnings Results

FY2023 consolidated P/L(Millions of yen)

FY2023(consolidated)

2FY2022(consolidated)

YoYChange

YoY rate ofchange

Net sales

21,661

21,790-129

99.4%

Cost of sales

13,828

13,975-146

98.9%

63.8%

64.1%

-3Pt

-

7,832

7,814+18​

100.2%

36.2%

35.9%

+0.3Pt

-

6,223

5,989

+234

103.9%

SG&A ratio

28.7%

27.5%

-1.2Pt-Operating income

1,60​81,824-215

88.2%

Operating income
margin7.4%

8.4%-1.0Pt-

Net income attributableto parent company

959

1,249-290

76.8%

Cost of sales ratio
Gross profit
Gross profit ratio
SG&A4

Snapshot of FY2023 Earnings Results

Enrollment recovery trend continued from 2Q[Trends in quarterly number of students enrolled](People)

99.4%

9,000

99.1%

100.0%

98.9%
99.0%

8,000

98.0%
7,000
97.0%
6,000

5,000

96.0%

95.0%

94.2%

94.0%
4,000
93.0%
3,000

92.0%

2,000

91.0%

1Q

2Q
FY2022 enrollment

3Q
FY2023 enrollment

4Q
Vs. FY2022*Enrollment numbers for individualized teaching only5

Snapshot of FY2023 Earnings Results

A Look at student enrollment numbers[Trends in enrollment](People)96.3% 96.5%

40,00096.0%

35,00030,000

95.5%

95.4%

95.0%
25,00094.5%
20,00094.0%

93.5%15,000

93.3%

10,000

93.0%

92.5%
5,00092.0%
091.5%MarchAprilMay

June

July
FY2022 enrollment

AugustSeptember

FY2023 enrollment

OctoberNovember December

JanuaryFebruary

Vs. FY2022

6Snapshot of FY2023 Earnings Results

No change in enrollment structure by student
category[FY average number of students (by student category)]
33,30933,15994.7%

30,72030,426

17,10917,080vs. FY2022(People)32,436

16,18916,171

15,275(49.7%)High School

Middle School(36.5%)
12,255

10,681

11,887

11,824

11,207
Elementary School(13.8%)
3,824

3,574

4,313

4,423

4,238

FY2019FY2020

FY2021

FY2022

FY2023

Average annual enrollment for FY2023 (vs. FY2022):high school 94.4%; middle school 94.8%; elementary school 95.8%

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Snapshot of FY2023 Earnings Results

Trends in net sales/operating income[Consolidated Net Sales by Quarter](Millions of yen)[Consolidated Operating Income by Quarter](Millions of yen)

Vs. FY228Snapshot of FY2023 Earnings Results

Profit decreased on impact of human resourceand system investments[FY2023 Analysis of increases/decreases in profit](Millions of yen)

2,500+301 +52

2,000

vs. FY2022-335

-129

1,500
1,000+61-67

88.2%+20-96-23

1,824

1,608

500

その他
増
減

FY2023 results

新卒
社
員
研
修

Other increases/decreases

減
価
償
却
費

New employee
training

法定福利費

Depreciation andamortization expenses

社
員
給与・賞
与

Mandatory benefit
expenses

広告
宣伝費

Employee salaries
and bonuses

求人費Advertising expenses

減収・ に講 伴師 う
料 講
率 師の 給改 与善 の減

Recruiting costs

売上高

Lowered teacher
salaries to reflectdecrease in net sales,
improved teacher rates

Net sales

FY2022 results

ＦＹ
２２実
績ＦＹ２３実績9Snapshot of FY2023 Earnings Results

Year-end trends in cash and cash equivalents
Maintain financial stability(Millions of yen)

9,000

8,000

6,807

7,000

6,000

5,000

4,000

3,000
2020.22021.22022.22023.22024.210Snapshot of FY2023 Earnings Results

Trends in consolidated earnings
FY2019FY2020

FY2021

Net sales

21,261 million yen

19,142 million yen

22,495 million yen

21,790 million yen 21,661 million yen

Net income

1,897 million yen

253 million yen

1,578 million yen

1,249 million yen

959 million yen

34.94 yen

4.66 yen

29.07 yen

23.02 yen

17.67 yen

554 yen

632 yen599 yen524 yen

446 yen

15.9x

135.6x

20.6x

22.8x

25.2x

9,606 million yen

8,447 million yen

8,616 million yen

8,457 million yen

8,440 million yen

177 yen

155 yen

158 yen

155 yen

155 yenROE (*2)

19.8%

2.8%

18.5%

14.7%

11.4%

PBR (*3)

3.1x

4.1x

3.8x

3.4x

2.9x

Net income pershare
Year-end stock
price (final price)
P/E ratio (*1)
Year-end net
assetsYear-end net
assets per share

FY2022

FY2023*1) P/E ratio: year-end stock price / net income per share*2) As this is the first year of consolidation, ROE for the 37th fiscal year is calculated based on year-end shareholder’s equity.
*3) PBR: year-end stock price / year-end net assets per share

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FY2024 Earnings Forecast

12

FY2024 Earnings Forecast

Forecasting increased net sales but decreased
income on investments to resolve issues(Millions of yen)FY2024(consolidated)
Forecast

FY2023(consolidated)
Results

21,797

21,661+136

100.6%

1,271

1,60​8-337

79.1%

5.8%

7.4%

-1.6pt-1,273

1,615-342

78.8%

Net income attributable toparent company

757

959

-202

78.9%

Net income margin

3.4%

4.4%

-1.0pt

-

13.95

17.67

-3.72

-Net sales
Operating income
Operating income margin
Ordinary income

EPS

ChangeYoY rate ofchange

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FY2024 Earnings Forecast

Consider investments for future sustainablegrowth while steadily aiming for a dividend
payout ratio of 50% or higherFY2020

FY2021

FY2022

FY2023(Forecast)

FY2024(Forecast)

Full-year dividend

26 yen26 yen23 yen*16 yen

12 yenDividend payout
ratio(consolidated)

557.8%

89.4%

99.9%

*90.6%

86.0%

Mid-year dividend

13 yen13 yen13 yen

8 yen

6 yen

End-of-year
dividend

13 yen13 yen

10 yen*8 yen

6 yen* TBD at 41st Ordinary General Meeting of Shareholders[Dividend policy]
We position stable profit returns to shareholders as one of our highest priority management policies. To that end, weprioritize increasing ROE to ensure our ability to issue stable profit dividends. We also implement a capital policy that gives
due consideration to maintaining a practical level of internal retention to ensure business continuity and investments topromote future sustainable growth. Our basic policy for dividends of surplus is to issue dividends twice a year via a midyear dividend and an end-of-year dividend. To further enhance profit returns to shareholders, our basic policy is to aim fora dividend payout ratio of 50% or higher.
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2. FY2024 Business PlanTokyo Individualized Educational Institute, Inc.

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Educational Ideals

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 andhospitality as the linchpin of our corporate
activities, we shall contribute to a happy futurefor humanity.

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Looking Back on FY2023

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FY2023 key Issues to Resolve

FY23 core policies
1Marketing reform focused on web-based marketing
Overall inquiries recovered to 97% YoY, and exceeded 100% YoY during 2H.

Develop and create framework for educational content23

Developed and launched service for mid-term test content for university
entrance exams (June)
Developed and strengthened educational framework as a market strategy
for middle school entrance exams

Strengthen operating structure to enhance Groupcollaboration
Stimulated personnel interactions in service development domains, including
through the reassignment of directors
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FY23 Core Policies

Marketing Reform Focused on Web-based Marketing

Implemented marketing reform
Marketing reform focused on web-based marketing for significant recovery in inquiries
through our Company website, which account for nearly half of inquiries[Trends in website inquiries]

1Q

2Q

3Q

4Q
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FY23 Core Policies Develop and Create Framework for Educational Content

Released mid-term test content for university
entrance exams
Mid-term test preparation text

Mid-term test preparation text cover page

Launched service in June 2023

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About Location Development

Improving school profitability
Promoted improvement in school profitability by consolidating
schools in areas with two schools at the same station after careful
evaluation of customer convenience
FY2023 School Consolidations

FY2024 School Consolidations

Funabashi North Exit School+
Funabashi School (Chiba)

Machida Terminal Exit School+
Machida School (Tokyo)

June 2023

March 2024

Kichijoji-Honcho School+
Kichijoji School (Tokyo)
December 2023

Tsudanuma School+
Tsudanuma South Exit School<Relocation>: Tsudanuma Viit School(Chiba)December 2023

Tsudanuma Viit School

21About Location Development

New school openings in optimal areas basedon evaluation of future population trends
FY2024 New School Openings
Kachidoki School (Tokyo)
March 23, 2024

Koiwa School (Tokyo)
March 23, 2024

Kachidoki School*Planning on 5 new school openings in FY2024

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Key Issues to Address in FY2024Strengthen efforts to improve the value ofschools in the individualized teaching business

1Quality improvements to promote goal achievement/
results for each student

2

Environment improvements to provide students a
comfortable environment for studying

345

Increase consultation & proposal capabilities, implement quality improvement cycle

Improve school facilities, develop infrastructure

Strengthen communication with students and parents
Communication tools utilizing DX

Expand share of private integrated middle and high schools
Improve quality of middle school entrance exam instruction, expand in-school tutoring,develop school-specific content

Expand share by strengthening services for public highschool entrance exams
Incorporate services for the 5 subjects of public high schools

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Key Issues to Address in FY2024

Expand share of private integrated middle
and high schools■ Strengthen services for middle school entrance exams✓ Strengthen staff/teacher educational affairs and academic path guidance capabilities✓ Strengthen data-driven application guidance capabilities■ Strengthen school-specific services for private middle
schools and high schools✓ Services for regular tests and internal matriculation tests■ Expand in-school tutoring
In-school tutoring by Tokyo Individualized Educational Institute, Inc.

Superiority ofteacher quality
Experienced at individualizedteaching in a classroom
Unique knowledge of how to increase
motivation and provide guidance
TKG unique in-school tutoring knowhow+Benesse GroupPartnerships
Close-knit partnerships with Benesse
for mock test data
Classi+ assessment data for assessing
and ascertaining current level
Study-level specific problem distribution
and guidance24

Key Issues to Address in FY2024

Strengthen services for public high school
entrance examsStrengthen services for public high school entrance exams by launching an optional service
that covers the 5 subjects through individualized teaching

ClassClassExplanatory
videoText
lessonHome study

Homework

Test

Repeatandmemorize

Confirmation
ofassimilation

Preparation and review

Confirmation test+・Repetition andassimilation
・Short tests

25Postponing Release of Medium-term Management Plan

Decision not to release medium-term management planThis fiscal year, prior to considering future business growth, we first prioritized therecovery of short-term performance and resolving internal structural issues.
Specifically, these efforts included developing courses to address yearly tests, promoting
projects related to in-school tutoring and needs-specific course development, engaging inmarketing reform to achieve a significant year-on-year increase in inquiries through ourCompany website, and strengthening our consultation capabilities to improve enrollment
retention. As a result of these efforts, we saw signs of a recovery in performance but thisprocess is still underway.

Our view on next fiscal year is that we will need to continue concentrated efforts toaddressing short-term issues to elevate the base strength of Tokyo Individualized
Educational Institute, Inc.
As such, we have decided not to draft a medium-term management plan at this time. Thisdecision reflects expectations of a solid recovery in short-term performance after next year.
Furthermore, we will be working under a new management structure. Under this newstructure, we will take utilize the diverse assets of the Benesse Group to draft a term
management plan for addressing medium and long-term issues and developing newbusiness domains.
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Q&AQ&A
Please click on the “Ask a question” button to the left and submit
your questions as text.
Received questions will be read by the moderator and a response
will be provided by a representative in attendance.
Along with the question, we will read your name and company name.
Please limit questions to one question per submission.

A questionnaire screen will be shown at the end of the briefing.
We ask for your cooperation in providing responses to questions.

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Thank you for your attention.

[IR Inquiries] Corporate Planning Dept. IR
Tel：03-6911-3140

E-mail：ir@tkg-jp.com

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