FY Ended February 2020 (FY 2/20)
Earnings Briefing Materials
April 9, 2020

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

Medium-term Management Plan - Numerical Plan

Seek to Fulfill Plan 1 Year Early
Plan Announced Oct 2018
FY 2/19
Forecast(Millions of yen)

FY 2/20Plan

FY 2/21Plan

20,10020,40021,200Operating income

2,730

2,790

2,875

Operating income
margin

13.6%

13.7%

13.6%

Net sales

April 2019 Revision(Millions of yen)

FY 2/19
Results

FY 2/20
Revised Forecast

20,397

21,200Operating income

2,7902,875

Operating income
margin

13.7%

13.6%

Net sales

Based on thefavorable results for
FY 2/19,the FY 2/21 plan
has been slid
to the FY 2/20 plan.
1Medium-term Management Plan Results

Achieved Three-Year Plan "To Go for the NEXT:
Hospitality Management 2020" in Two Years
April 2020 Results(Millions of yen)

FY 2/20
Revised
Forecast

FY 2/20 (consolidated)
Results

Change% Change

21,20021,261

61

100.3%

Operating income

2,875

2,889

14100.5%

Operating income
margin

13.6%

13.6%

――Net sales

2000Net Sales

Achieved 8 Straight Years Growth in Revenue
Net Sales

21,261
20,397000

19,175

17,90917,094000000

Net Sales YoY

15,717104.2%

14,32213,017000 12,572000

000000000000
FY 2/12FY 2/13

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

FY 2/17

FY 2/18

FY 2/19

FY 2/20(Millions of yen)(consolidated)

3

Operating Income

Achieved 8 Straight Years Growth in Earnings

00

Operating Income

00

2,63400

2,21700

2,899

Operating
Income YoY

2,305

1,72400

103.5%

1,27200

00

2,7907163470
FY 2/12FY 2/13

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

FY 2/17

FY 2/18

FY 2/19

FY 2/20(Millions of yen)(consolidated)

4

Shift to Consolidated Accounting

Completed Acquisition of HRBC Co., Ltd.
Shares✓ On January 24, 2020, we completed the acquisition of shares in
HRBC Co., Ltd., a professional employee development andtraining team for corporations.
✓ The company shifted to consolidated accounting in FY 2/20 Q4.
Results from HRBC Co., Ltd. (profit and loss statement) integrated into
FY 2/21.
HRBC Co., Ltd.
Address: 2-17-12 Ebisu-Nishi, Shibuya-ku, Tokyo
Representative Director: Fumiyasu Sakogawa
Business: Planning and execution of training for
employee development, consulting on HR atemployee development
Capital: 10 million yen
Date of establishment: October 2, 2008
Website: https://hrbc.jp/5

FY 2/20 Results Highlights [YoY]

Sustainable Business GrowthTokyo Individualized Educational Institute (Standalone) YoY Results(Millions of yen)

FY 2/19 Results(Standalone)

FY 2/20 Results(Standalone)

Net sales

20,397

21,261864

104.2%

Cost of sales

12,542

13,104561

104.5%

61.5%

61.6%

0.1%

―

7,854

8,156

302

103.9%

38.5%

38.4%

-0.1%

―

5,063

5,228

164

103.2%

24.8%

24.6%

-0.2%

―

2,790

2,928

138

105.0%

13.7%

13.8%

0.1%

―

2,793

2,931

138

105.0%

13.7%

13.8%

0.1%

―

1,932

1,936

4

100.2%

9.5%

9.1%

-0.4%

―

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
Net income margin

ChangeYoY6

FY 2/20 (Standalone) Analysis of Factors Behind Results (YoY)

Solid Growth from Focused Investing inPeople and Places
YoY revenue growth of 864 million yen
Net sales➢ Excluding special circumstances this year affecting third-year high school
students, the number of enrolled students rose robustly(Q4 cumulative enrolled students +2.6% YoY)
➢ Higher net sales per student due to October price revisions(633,055 yen, +10,898 yen [+1.8%] YoY)YoY earnings growth of 138 million yen
Operatingincome

Netincome➢ Earnings rose due to revenue growth accompanying increase in enrolledstudents➢ YoY cost of ad spending down 76 million yen➢ Spending on opening new schools and on relocation and expanding capacity(additional floors, etc.) of existing schools➢ Spending to improve the value of working at the company (revised teachersalaries, etc.)

YoY earnings growth of 4 million yen➢ Tax system to encourage higher incomes came into effect in previous fiscalyear
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FY 2/20 Balance Sheet/Cash Flow Statement

Still Steady After Consolidation(Millions of yen)Feb. 28, 2019
(standalone)

Feb. 29, 2020
(consolidated)

ChangeTotal net assets

9,463
2,650
12,1143,003
43,008
9,106

9,790
3,399
13,190
3,577
6
3,584
9,606

Total liabilities and netassets

12,114

13,190Current assets
Fixed assets

Total assets
Current liabilities
Long-term liabilities
Total liabilities

326

Cash and deposits
8,453 million yen

749

Goodwill 274 million yen

1,075
574

Accrued expenses
890 million yen

1575
499

Retained earnings
7,936 million yen

1,075* Figures in comparison with end of FY 2/19 for reference purposes.

(Millions of yen)Feb. 29, 2020
(consolidated)
Operating cash flow

2,707

Investment cash flow

-963 -268 million yenFinancing cash flow

Expenditures from acquiring subsidiary shares-1,412

Increase (decrease) in cash & cash equivalents

333

Cash & cash equivalents at beginning of year

8,420

Cash & cash equivalents at end of year

8,753

8Enrolled Students

Increased Across All Segments
Average Enrollment (by Student Category)
32,32833,159YoY
102.6%

30,30825,25812,35727,036

13,50728,483

14,925

15,84916,87517,080(51.5%)High School

Middle School

10,202

10,774

11,943

12,255

10,787

11,451

3,510

3,824

FY 2/19

FY 2/20

2,699

2,755

2,771

3,008

FY 2/15FY 2/16

FY 2/17

FY 2/18(37.0%)
Elementary(11.5%)(Students)

Enrolled students (YoY): high school (101.2%), middle school (102.6%), elementary (108.9%)* Students enrolled in individualized teaching

9

Foundation for Supporting Quality Teaching Services

Robust Growth in Teacher Numbers
Teachers (Feb 29)* Including part-time office staff

10,381

11,070

9,269
6,289

FY 2/147,082

FY 2/157,453

FY 2/16

8,106

FY 2/17

FY 2/18

FY 2/19

FY 2/20(Teachers)

10

PDCA in Schools

Wintercourse
SummercoursePlan preparation

MarchJanuary
SeptemberMay- Announcement of Regional
Representative Schools- Department and individualawards, etc.

11Kickoff Meeting

Prepare and announce plans

Midterm Briefing Share progress of annual plan

Final Briefing Select Regional Representative SchoolBest
ベスト
プPractices
ラ ク ティ ス

Independent Study Program for the Skills
Society Wants
TEACHERS’SUMMIT Academy

OUTPUT
Backcasting thinking method
Coaching skills

Self-analysis &ES writing

Understand teachingissues

GritGroupwork,
discussion

One-on-one interview
strategies

Know the self

Industry research

Short essay strategies

Sharing learnings

Meet formeremployees(Mock lessons, group discussion)

Localized strategies

Nationwide Leadership Program

Significant Increase in Scale including inAichi and Fukuoka
TEACERS’ SUMMIT Academy

Areas: Tokyo metropolitan area, Kansai,
Aichi, Fukuoka

Leadership Program Planned Participants: 230 (189% YoY)
Satisfaction score of
FY 2/19 participants

4.91(Out of 5)

Job hunt seminar
led by previous year’s participants(alumni) also held13

Opening Dominant Schools

Eight Schools Opened as Planned
Expanded to 256 Directly Managed Schools
New School Openings

FY 2/2068Schools at
期首教室数Year Start

Akebonobashi School (Tokyo)
March 20198New Schools
新規開校数

Newly Opened Schools
Kameari School (Tokyo)

10230240248

March 2019

Kaihin Makuhari School (Chiba Pref.)June 2019

Tsukishima School (Tokyo)
July 2019

FY 2/18
Results

FY 2/19
Results

FY 2/20
Results

Ikejiri-Ohashi School (Tokyo)

Schools at
Year Start

230

240

248

Ikeda School (Osaka Pref.)NewSchools

1088

Shimotakaido School (Tokyo)

Schools at
Year End240248256

Umegaoka School (Tokyo)

July 2019
November 2019
February 2020
February 202014

Development of New Services

First Step to a Business Educating Adults
Completed Acquisition ofHRBC Co., Ltd. Shares

Synergies

FuturePolicy✓ Contribution to raising our brand value as an employee
development company✓ Accelerate growth of both firms' businesses by deeper
collaboration, including employee exchanges✓ Consider development of a new employee training businessthat combines the experience and knowledge about corporate
training held by HRBC Co., Ltd. with our method for training
university student instructors

15

NEWS:2020 Health & Productivity Company

Promoting Better & Sustained Employee
HealthMain Company Initiatives(1) Provide information on thoroughcheckups and assist with various
medical examinations for thoseat high risk of diseases such as
lifestyle diseases(2) Enhanced facilities and action sothat both employees and theirdependents can take advantage
of and join in benefits(3) Hold seminars, such as those oncolon cancer, to raise employee
knowledge(4) Hold seminars to teach healthy
practices incorporating dietary
habits and exercise(5) Hold seminars on health practices
tailored to women's life stages

16

Shareholder Returns

Steady Shareholder Return
Dividend Payout Results & Forecast
FY 2/16

FY 2/17FY 2/18

FY 2/19

FY 2/20
Forecast

Full-year
dividend

24 yen26 yen26 yen26 yen26 yenDividend
payout ratio

94.2%

98.1%

80.9%

73.1%

74.4%

Mid-year dividend

12 yen13 yen13 yen13 yenEnd-of-year dividend

12 yen13 yen13 yen13 yen(Results)

13 yen13 yen* Finalized at May 27, 2020
Ordinary General Meetingof Shareholders

17

Impact of the Novel Coronavirus
Pandemic
FY 2/21
Results Forecast✓ A forecast not been formulated due to theextreme difficulty in formulating a rational
results forecast with the present uncertainty
over the novel coronavirus pandemic's fullimpact.
✓ The forecast will be promptly released at astage when it is possible to rationallycalculate a results forecast.

NewMedium-termManagement Plan

✓ Out of a need to reconsider plans owing to thechanging circumstances surrounding thenovel coronavirus pandemic and the great
uncertainty concerning the scope of its future
impact, we have postponed the April 2020
release of the plan.
✓ The new release date is yet to be determined.
Information on the date and method of therelease will be provided later.

18Forward-Looking Statements
These materials include forward-looking statements concerning future financial performance,including business strategies and forecasts. Such statements are based on the Company’s
judgment at the time of publication, and include inherent risks and uncertainties. Thesestrategies and forecasts may be amended due to changes in the external environment orother factors.

If you are an investor outside Japan, please contact us below.
Contact: https://www.tkg-jp.com/contact/
Phone: +81-03-4500-6880

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