Earnings Briefing Materials
for 2Q/FY2021

Tokyo Individualized Educational Institute, Inc.
Director and General Manager of the Business Strategy Office

Takeharu Tsutsumi
October 14, 2021

The Company's Action Against the COVID-19 Pandemic

Infection Prevention Measures Prioritizing
Health & Safety
All schools currently open and operating normally
Continued efforts to provide a safe learning environment
Primary response in schools

Masks/
faceshields
requiredDeskscleanedafter everyclass

Rigorous
enforcementof handwashing
every classperiodDesk layoutthat promotessocialdistancing

Ventilation (Using largefans for schools withstructures that makeventilation difficult)

Thermalcameras
installed fortemperaturechecksClear
partitions
installed inmeetingrooms[Other]● Manage physical condition before leaving for work
● Thorough cleaning according to manual before opening school● Requiring work leave and notification to the company office for employees who have taken or will take a PCR test or antibody test
(even if asymptomatic)● Requiring work leave and notification to the company office if any worker or a person in close proximity has a fever above
37.5 degrees Celsius or higher, or is experiencing physical symptoms such as fatigue, shortness of breath, or loss of taste or smell.
1

FY2021 First Half Earnings

1H/FY2021 Consolidated P/L <vs. FY2019>(Millions of yen)

2019

2021

ChangeChange %March to August

March to August

Net sales

9,820

10,890

1,070

10.9%

Cost of sales

6,339

7,079

740

11.7%

64.6%

65.0%

0.4Pt

-

3,480

3,810

330

9.5%

35.4%

35.0%

-0.4Pt

-

2,894

3,114

220

7.6%

29.5%

28.6%

-0.9Pt

-586

695

109

18.6%

6.0%

6.4%

0.4Pt-355

427

72

20.3%

Cost of sales ratio
Gross profit
Gross profit ratio
SG&A
SG&A ratio
Operating income
Operating income
marginNet income attributableto parent company**2019 indicates nonconsolidated quarterly profit2

First-Half Transitions in Student Enrollment Numbers

Exceeded FY2019 student numbers tomark highest enrollment ever
[1H average student enrollment (by student category)]

28,495

15,43530,541

16,53831,888

vs. FY2019

32,070100.6%

28,383

17,130 (53.4%)

17,061
15,603High SchoolMiddle School

10,283

10,753

11,2402,776

3,2513,588

9,544
3,236

10,915(34.0%)
ElementarySchool

4,025(12.6%)(people)FY20172017年度FY20182018年度FY20192019年度FY20202020年度FY20212021年度1H/FY2021 average enrollment numbers (vs. FY2019):
high school: 100.4%; middle school: 97.1%; elementary school: 112.2%*Students enrolled in individualized teaching3

A Look at New Enrollment

Enrollment was sluggish due totwo emergency declarations[Transitions in March to August new enrollment numbers]

vs. FY2019(people)

8,000

93.7%

Designated pre-emergency measures(6/21-7/11)

7,000
6,000

Emergency declaration
Third (4/25-6/20)

5,000Emergency declaration
Fourth (7/12-9/30)

4,000
3,000
2,000
1,0000

3月
March

4月
April

5月
May

6月
June

7月
July

8月
August

上期合計
1HTotal2019年度FY2019

3,863

2,887

1,310

2,445

6,120

1,361

17,9862021年度FY2021

3,869

2,963

1,252

2,265

5,011

1,498

16,8582019年度FY20192021年度FY2021*Enrollment numbers for individualized teaching only4Transitions in First-Half Net Sales

Net sales exceed 10.0 billion yen to set
record highs[Transitions in First-Half Net Sales]

vs. FY2019(Millions of yen)

12,00010,0009,470

10,8909,820

110.9%

8,186
8,000

6,000

4,000

2,000

0

FY20182018年度FY20192019年度FY20202020年度FY20212021年度51H/FY2021 Net Sales

Factors behind increased net sales vs. FY2019
Sales of summer courses favorable- Increased concerns about academic progress due to COVID-19 causingchanges in the environments impacting students- Per capita course sales increased on accurate proposals for learning
opportunities aimed at fulfilling customer objectives

Impact of course price revisions implemented in October 20196Transitions in Teacher Numbers

Maintain platform for supporting
educational services

Republished from
1Q financial
earnings summary[Transitions in teacher numbers as of the end of May]vs. FY2019(people)13,147

14,00012,00010,441

11,311

10,667116.2%

10,000

8,000

6,000

4,000

2,0000End ofMay 20182018年5月末

End ofMay 20192019年5月末

End ofMay 20202020年5月末

End ofMay 2021

2021年5月末
7Operating Profit for 1H/FY2021

Also set record for operating profit thanks toincreased course sales[1H/FY2021 Analysis of increases/decreases in profit]vs. FY2019(Millions of yen)

118.6%March toAugust 2019
OperatingprofitIncreasein basecourse fees

Increasein course
sales

Other
increased
sales

Increased
costs due toincreased
revenues

Increasein instructorsalaries

Increasein landand rent

Increasein sales,general, andadministrati
ve expenses

March toAugust 2021
Operatingprofit8

About Location Development

Total of 266 schools, including 4 opened in
1H and 2 opened in 2H
FY2021 Schools opened(as of Oct. 14)
Chitose Karasuyama South Exit School(Tokyo)
March 2021

Kokuryo School (Tokyo)
March 2021

Musashi Nakahara School(Kanagawa Prefecture)
June 2021

Mita School

Mita School (Tokyo)
June 2021

Kanamachi School (Tokyo)
September 2021

Myogadani School (Tokyo)
October 2021

Other development topics➢

Among existing schools, we are
expanding building floor space at theKinshicho School and the Azabu Juban
School.
9Looking ahead to 2H/FY2021

Continuously engaged in thorough infection
prevention measures
Ahead of the winter season, we will reinforce measures toprovide a safe and healthy learning environment- We will conduct continuous infection prevention measures while also
incorporating online options to provide safe learning for students
preparing for entrance exams.

Use of masks and face shields during class learning

Online learning
10FY2021 Full-year Earnings Forecast

Maintaining initial forecasts for full-year earnings
due to strong lack of transparency regarding
COVID-19(Millions of yen)

FY2021(consolidated)
Forecast

YoY change

vs. previousyear

Change vs.
FY2019

vs. FY2019

22,132

2,989

115.6%

870

104.1%

2,204

1,590

359.3%

-685

76.3%

10.0%

6.8Pt

--3.6Pt-Ordinary income

2,205

1,557

340.3%

-687

76.2%

Net income
attributable to parentcompany

1,4131,159558.3%--

Net income margin

6.4%

5.1Pt

--2.5Pt

-

26.03

21.36

---Net sales
Operating income
Operating income
marginEPS

Assumption: COVID-19 impact
No further school shutdown or class suspension from state of emergency
11Shareholder Return Policy

No change from initial plans
FY2018FY2019FY2020

FY2021(Forecast)

Full-year
dividend

26 yen26 yen26 yen26 yenDividend payout
ratio

73.1%

74.4%

601.5%

99.8%

Mid-yeardividend

13 yen13 yen13 yen (Confirmed) 13 yen

End-of-year
dividend

13 yen13 yen13 yen

13 yenAssumption: COVID-19 impact
No further school shutdown or class suspension from state of emergency
12Topics

Submission of application for eligibility andselection to prime market
We received the results of the primary assessment
concerning our eligibility to maintain our listing on the newmarket sector. Through this assessment, we confirmed oureligibility to remain listed on the Prime Market.
In accordance with these results, our Board of Directors
voted to apply for selection to the Prime Market andsubmitted our application documents to the Tokyo Stock
Exchange Co., Ltd. on Monday September 6.
We will continue working to improve our medium- and longterm corporate value by engaging in the timely andappropriate information disclosure and diligent IR activities
so that we continue to earn the support of our shareholders.

13◆Appendix

14

FY2021 First Half Earnings

1H/FY2021 Consolidated P/L <vs. FY2020>(Millions of yen)

2020

2021

ChangeChange %March to August

March to August

Net sales

8,186

10,890

2,703

33.0%

Cost of sales

6,225

7,079

854

13.7%

76.0%

65.0%

-11Pt-1,960

3,810

1,849

94.4%

24.0%

35.0%

11Pt-

2,789

3,114

325

11.7%

SG&A ratio

34.1%

28.6%

5.5Pt

-

Operating income

-828

695

1,524--

6.4%---711427

1,139-

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

Operating income
marginNet income attributableto parent company

15