Summary of 1Q Business Results for the Year Ending February 28, 2022
[Japan GAAP] (Consolidated)
July 13, 2021
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 4500 6880
Expected submission date of the 1Q report:
July 14, 2021
Expected date of dividend payment:
1Q results briefing:No(Rounded down to million yen)

1. 1Q consolidated business results for the fiscal year ending February 2022
(March 1, 2021 through May 31, 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%

Year ending February
2022 1Q

4,322

102.5

(621)



(620)



(451)



Year ended February
2021 1Q

2,134



(1,762)



(1,753)

(1,389)Note: Comprehensive income
Year ending February 2022 1Q:
Year ended February 2021 1Q:(450) million yen (%)(1,390) million yen (%)Net income per share

Diluted net income
per share

Yen

Yen

Year ending February
2022 1Q(8.31)Year ended February 2021
1Q

(25.60)Note: In the fiscal year ended February 2021, provisional accounting practices were finalized in relation to a corporate
merger. Figures for the first 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%

Year ending February
2022 1Q

9,948

7,290

73.1

As of February 2021

11,687

8,447

72.2

Reference: Shareholders’ equity:Year ending February 2022 1Q:
As of February 2021:

7,276 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

Year ended February 2021



13.00



13.00

26.00

Year ending February
2022


13.00



13.00

26.00

Year ending February
2022 (forecast)

Note: Revisions to the most recent dividend forecast: None

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

OperatingincomeNet sales
million yen

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 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.: 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 the endof period (treasury stock included)2) Treasury stock at the end of period
3) Average number of shares during period(quarterly cumulative total)

Year ending
February 2022 1Q

54,291,435 shares

As ofFebruary 2021

54,291,435 sharesYear ending
February 2022 1Q

136 shares

As ofFebruary 2021

136 sharesYear ending
February 2022 1Q

54,291,299 sharesYear ended
February 2021 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 ................................................................................................... 3(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 on Quarterly Consolidated Income Statements) .................................................................. 8(Notes Regarding the Company as a Going Concern).................................................................... 8(Notes on Significant Changes in the Amount of Shareholders’ Equity).......................................... 8(Additional Information) ................................................................................................................... 8(Segment Information, etc.) ............................................................................................................ 8(Business Combinations, etc.) ........................................................................................................ 9

3. Other Notes ........................................................................................................................................... 10
Circumstances Concerning Orders Received, Sales, and Production .......................................... 10- 1 -1. Qualitative Information on Quarterly Results(1) Explanation of Operating Results
Information related to future events as related in the text are based on judgments made by the Company at the endof the quarterly consolidated accounting period.
Provisional accounting treatment was applied for the first quarter of the previous fiscal year and was finalized at theend of the previous fiscal year. The revised amount based on the finalization of said provisional accounting
treatment is used in year-on-year comparisons and analysis.
The Japanese economic outlook for the first quarter of the current fiscal year remains severe due to continued
effects of the novel coronavirus outbreak. While vaccination efforts are underway, parts of the country remain in astate of emergency, and it continues to be difficult to make forward predictions while it remains unclear when theoutbreak will subside.
The prep school market is undergoing a period of significant change, with amendments to Japan's school
curriculum guidelines for junior high schools to be introduced in FY2021, the digitization of teaching environments
promoted through the GIGA school concept, and increased needs for online education services. Further, while
individualized teaching and other forms of personalized learning tailored to the needs of each student are becoming
increasingly important, the business environment remains severe with intensifying competition from new entrants
from outside the industry.
Amidst these circumstances, we have looked to providing teaching services that are closely attuned to the needs ofeach student centered around our corporate philosophy of “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 look to use this year to propel the business forward, accelerating
progress toward the realization of our “VISION 2030” vision based on two core pillars - business growth, and thepromotion of the strategy laid out in the new medium-term management plan.
During the first quarter of the current fiscal year continued concerns regarding the spread of coronavirus wereneeded, with a state of emergency issued in four prefectures on April 25, which was later extended and expandedin scope to include other regions. The Company kept all schools operating as normal while prioritizing the safety
and security of students and employees alike above all else, implementing exhaustive protective measures against
the spread of the novel coronavirus. We also continued to provide online individualized teaching services so thatstudents could attend personalized learning classes from their own home. Further, our unique hybrid approach toindividualized teaching allows us to switch between online and in-person learning based on school and club activity
schedules, and other student needs. This provides high added value in improving convenience and learning
efficiency, while also ensuring a greater level of safety and security.
With regard to student recruitment, we implemented a marketing approach that took into account changes instudent attitudes toward prep school learning brought about by the spread of novel coronavirus infection, which
helped new student inquiries remain steady. Our high quality, personalized teaching services were held in highregard and this, in combination with a low dropout rate drove student enrollments to 30,358 as of the end of May
2021 (up 18.0% year-on-year). The number of student enrollments increased 1.6% from the end of May 2019(29,866) showing signs of a recovery to pre-coronavirus levels.

- 2 -With regard to Employee Development, the backbone of our teaching services, our TEACHER’S SUMMIT, a cocreation program where employees and teachers learn and grow together through practical learning exercises, washeld online, and we are making continued efforts to further bolster these activities. TEACHER’S SUMMIT 2021, thefirst summit to be jointly held in East and West Japan, was held online in March 2021, and attracted around 5,000
participants, primarily teachers.
With regard to site development, we have looked to boosting the strength of our brand within the region based on adominant strategy focused primarily on metropolitan centers. In March 2021 we opened the Tokyo Individualized
Educational Institute Chitose Karasuyama Minamiguchi School (Tokyo) and Kokuryo School (Tokyo). In June 2021
we opened the Tokyo Individualized Educational Institute Musashi-Nakahara School (Kanagawa) and Mita School(Tokyo).
As a result of the above, net sales for the first quarter of the current fiscal year increased 2.188 billion yen (102.5%)
year-on-year to reach 4.322 billion yen following an increase in tuition fees due to an increase in student
enrollments, and strong sales from spring courses.
Despite increases in rent, labor costs, and other fixed expenses, and an increase in teacher salaries, operating loss
was 621 million yen (compared to an operating loss of 1.762 billion yen in same quarter of the previous fiscal year),ordinary loss was 620 million yen (compared to an ordinary loss of 1.753 billion yen in same quarter of the previous
fiscal year), and quarterly net losses attributable to owners of the parent company was 451 million yen (compared
to quarterly net losses attributable to owners of the parent company of 1.389 billion yen in same quarter of theprevious 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.
The individualized teaching business is the only business segment reported on. As other business segments are oflimited relevance, they have been omitted from this report.

(2) Explanation of Financial Standing[Assets]
Total assets at the end of the first quarter of the current fiscal year were 9.948 billion yen, a 1.738 billion yen(14.9%) decline from the end of the previous fiscal year.
Liquid assets were at 5.504 billion yen, a 2.067 billion yen (27.3%) decline from the end of the previous fiscal
year. This decline was primarily caused by a decrease in cash and deposits of 1.954 billion yen, and a decreasein accounts receivable of 173 million yen.
Tangible fixed assets were at 812 million yen, a 5 million yen (0.6%) decline from the end of the previous fiscal
year. This decline was primarily caused by the retirement of fixed assets.
Intangible fixed assets were at 1.467 billion yen, a 131 million yen (9.8%) increase from the end of the previous
fiscal year. This increase was primarily caused by capital investments into the development of a student
placement system and a billing platform system.
Investments and other assets were at 2.164 billion yen, a 202 million yen (10.3%) increase from the end of theprevious fiscal year. This increase was primarily caused by an increase of 9 million yen as a security deposit for
new school openings, and a further 193 million yen for other activities.
- 3 -[Liabilities]
Total liabilities at the end of the first quarter of the current fiscal year were 2.657 billion yen, a 582 million yen(18.0%) decline from the end of the previous fiscal year. This decline was primarily caused by a decrease inunpaid corporate taxes, etc. of 267 million yen, and other decreases of 387 million yen, which outweighed anincrease of 69 million yen in the reserve for bonuses.
[Net assets]
Net assets at the end of the first quarter of the current fiscal year were 7.290 billion yen, a 1.156 billion yen(13.7%) 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 451 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 2022, 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, 2021 [Japan GAAP] (Consolidated).

- 4 -2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheet(Unit: Thousands of yen)Previous consolidated
fiscal year
(February 28, 2021)
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
Software suspense account
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- 5 -First quarter consolidated
accounting period(May 31, 2021)

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

4,608,117
389,299
34,768484,280(11,952)
5,504,514

817,170812,088

204,444
951,430
180,823
1,336,697

199,333
1,086,280
182,264
1,467,877

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

1,613,467
550,557
2,164,024
4,443,990
9,948,504

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

14,062
44,973
203,432
60,5472,300,602
2,623,618

35,16935,1693,239,903

33,96233,962
2,657,580

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
5,620,810(121)
7,276,411
14,511
7,290,923
9,948,504

(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, 2020
to May 31, 2020)
Net sales
Cost of goods sold
Gross profit or gross loss
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Gain on disposal of unpaid dividends
Refund of premium for canceled insurance
Gain on bad debts recovered
Other
Total non-operating income
Ordinary loss
Extraordinary loss
Compensation for absence from work
Total extraordinary 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 orquarterly net losses attributable to minority interests
Quarterly net losses attributable to owners of the parent
company- 6 -Current first quarter
consolidated
cumulative period(March 1, 2021
to May 31, 2021)

2,134,473
2,526,664(392,191)
1,370,225(1,762,416)

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

230
373
8,026

3
8,632
(1,753,784)

1
339

900
41
1,282
(620,195)*208,149
208,149(1,961,934)
18,754(590,047)(571,293)(1,390,640)

(620,195)
19,135(188,470)(169,335)(450,860)

(744)

147

(1,389,896)(451,008)

Quarterly statement of comprehensive income
First quarter consolidated cumulative period(Unit: Thousands of yen)Previous first quarter
consolidated
cumulative period(March 1, 2020
to May 31, 2020)
Quarterly net losses
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income attributable toowners of the parent company
Quarterly comprehensive income attributable tominority interests- 7 -Current first quarter
consolidated
cumulative period(March 1, 2021
to May 31, 2021)(1,390,640)(1,390,640)(450,860)(450,860)(1,389,896)(451,008)

(744)

147

(3) Notes Concerning Quarterly Consolidated Financial Statements(Notes on Quarterly Consolidated Income Statements)* Notes on Compensation for Absence from Work
Previous first quarter consolidated cumulative period (March 1, 2020 to May 31, 2020)
The spread of the novel coronavirus 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
the declaration and extension of the state of emergency. As a result of this measure, we recorded an
extraordinary loss on employee compensation for absence from work paid to temporary employees (casualteachers and part-time employees).
Current first quarter consolidated cumulative period (March 1, 2021 to May 31, 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 novel
coronavirus pandemic would not pose a significant impact. Further, as it remains unclear when the novel
coronavirus outbreak will subside, there remains the potential for future losses should the above supposition failto materialize.
(Segment Information, etc.)[Segment Information, etc.]
The individualized teaching business is the only business segment the Group reports on. As other businesssegments are of limited relevance, they have been omitted from this report.

- 8 -(Business Combinations, etc.)
Significant revisions to the initial allocation of acquisition costs in comparative information
While provisional accounting treatment was applied for the first quarter of the previous fiscal year concerning
accounting for the business combination with HRBC Co., Ltd. on January 24, 2020, this was finalized at the endof the previous fiscal year.
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 the first quarter of the current fiscal year. The provisional goodwill amount of 268.272
million yen was reduced by 48.494 million yen to 219.777 million yen as a result of the finalization of theaccounting treatment. The decrease in goodwill is the result of an increase in intangible fixed assets and otherassets of 73.756 million yen, and an increase in fixed liabilities and other liabilities of 25.512 million yen.
As a result, the quarterly consolidated income statement for the previous first quarter consolidated cumulative
period recorded an increase of 0.979 million yen in selling, general and administrative expenses, and an increaseof 0.728 million yen in the adjustment of corporate taxes, etc. Further, operating losses, ordinary losses, andquarterly losses before income taxes each decreased by 0.979 million yen, and quarterly net losses and quarterly
net losses attributable to owners of the parent company both decreased by 0.250 million yen.

- 9 -

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 nameSales (thousands of yen)

Composition ratio (%)

Year-on-year comparison(%)

Individualized teaching
Primary school students

494,993

11.5

207.3

Junior high school students

1,477,428

34.2

189.9

High school students

2,258,118

52.2

212.1

4,230,540

97.9

203.3

91,9642.1

173.0

4,322,505

100.0

202.5

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, and HRBC Co., Ltd.

- 10 -