Summary of Business Results for Fiscal Year Ended February 29, 2024
[Japan GAAP] (Consolidated)
April 9, 2024
Company
Tokyo Individualized Educational Institute, Inc.
Listed on the TSE Prime
Stock Code4745
URL https://www.tkg-jp.com/en/ir/
Representative
Hideyuki Ogaki, President and Representative Director
Contact
Toru Osakabe, General Manager of the Financial and Accounting Department
Tel: +81 3 6911 3216
Expected date of annual shareholders’ meeting:May 29, 2024
Expected date of dividend payment:
May 30, 2024
Expected date of filing of annual securities report:
May 30, 2024
Preparation of supplementary financial document:
Yes
Results briefing:
Yes (for analysts and institutional investors)(Rounded down to million yen)

1. Consolidated business results for fiscal year ended February 2024
(March 1, 2023 through February 29, 2024)(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 ended
February 2024

21,661

(0.6)

1,608

(11.8)

1,615(11.9)

959(23.2)

Fiscal year ended
February 2023

21,790

(3.1)

1,824

(23.9)

1,834(23.6)

1,249(20.8)

Note: Comprehensive income
Fiscal year ended February 2024:
Fiscal year ended February 2023:

961 million yen (-23.2%)
1,251 million yen (-20.8%)

Net income per
share

Diluted net
Return on equity
income per share

Ratio of ordinary
income to total
assetsRatio ofoperating income
to net sales

Yen

Yen

%

%

%

Fiscal year ended
February 2024

17.67



11.4

14.0

7.4

Fiscal year ended
February 2023

23.02



14.7

15.2

8.4

Reference: Investment earnings/loss on equity method:
Fiscal year ended February 2024:
 million yen
Fiscal year ended February 2023:
 million yen(2) Consolidated financial position
Total assets

Shareholder’s equity
ratio

Net assets

Net assets per share

Million yen

Million yen%

Yen

As of February 2024

11,688

8,440

72.0

155.10

As of February 2023

11,410

8,457

74.0

155.42

Reference: Shareholders’ equity:
As of February 2024:
As of February 2023:

8,420 million yen
8,438 million yen

(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Million yen

Million yen

Million yen

Million yen

Fiscal year ended
February 2024

1,976

(262)

(976)

6,807

Fiscal year ended
February 2023

965

(589)

(1,409)6,069

2. Dividends
Full-year dividend
End of 1Q End of 2Q End of 3Q

Year-end

Full year

Total
dividends
paid(Full year)

Dividend
payout ratio(consolidated)

Ratio of total
dividend to
net assets(consolidated)

yen

yen

yen

yen

yen

Million yen%%

Fiscal year ended
February 2023



13.00



10.00

23.00

1,248

99.9

14.7

Fiscal year ended
February 2024



8.00



8.00

16.00

868

90.6

10.3

Fiscal year ending
February 2025
(forecast)



6.00



6.00

12.00

86.0

3. Forecast of consolidated business results for fiscal year ending February 2025
(March 1, 2024 through February 28, 2025)(% change from the previous corresponding period)

Net sales

Fiscal year ending
February 2025

Operating income

Ordinary income

Net income
attributable toparent company

million yen%

million yen%

yen

1,273 (21.2)

757(21.1)

13.95

million yen%

million yen%

21,7970.6

1,271(20.9)Net income
per share

* Notes(1)

Transfer of important subsidiaries during the fiscal year (transfers of specified subsidiaries accompanying changes
among consolidated companies): None

(2)

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(3)

Shares outstanding (common stock)(Number of shares)

1) Number of shares outstanding at the

As of February 2024

54,291,435

As of February 2023

54,291,435

2) Treasury stock at the end of period

As of February 2024

136

As of February 2023

136

3) Average number of shares during

Fiscal year ended
February 2024

end of period (treasury stock included)

period54,291,299

Fiscal year ended
February 2023

54,291,299(Reference) Overview of non-consolidated results

1. Non-consolidated business results for the fiscal year ended February 2024 (March 1, 2023 throughFebruary 29, 2024)(1) Non-consolidated results of operations
Net sales(% change from the previous corresponding period)

Operating income

Ordinary income

Net income

million yen%

million yen%

million yen%

million yen%

Fiscal year ended
February 2024

21,455

(0.6)

1,590

(11.1)

1,597(11.2)

954(22.6)

Fiscal year ended
February 2023

21,586

(3.2)

1,790

(24.1)

1,800(23.9)

1,233(20.9)Net income per share

Diluted net income
per share

Yen

Yen

Fiscal year ended
February 2024

17.58



Fiscal year ended
February 2023

22.73



(2) Non-consolidated financial position
Total assets

Net assets

Shareholders’ equity
ratio

Net assets per share

Million yen

Million yen%

Yen

Fiscal year ended
February 2024

11,668

8,450

72.4

155.66

Fiscal year ended
February 2023

11,385

8,473

74.4

156.07

Reference: Shareholders' equity:
As of February 2024:
As of February 2023:

8,450 million yen
8,473 million yen

* This financial summary is 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. Actual results
may differ significantly from the forecasts due to various factors. For notes in using earnings projections andassumptions for premises thereof, refer to page 5 of the Attachment “1. Summary of Operating Results (4) Future
Outlook”．
(Information on how to obtain supplementary financial document and results briefing)
The Company plans to hold an earnings briefing for analysts and institutional investors on April 9, 2024. The materials
distributed at this briefing will be post on the Company's website.

Contents of Attachment

1. Summary of Operating Results ............................................................................................................... 2(1)

Summary of Operating Results for the Current Fiscal Year ............................................................ 2(2)

Summary of Financial Standing for the Current Fiscal Year............................................................ 3(3)

Cash Flows for the Current Fiscal Year........................................................................................... 4(4)

Future Outlook ................................................................................................................................ 5

2. Basic Approach to the Adoption of Accounting Standards ....................................................................... 6
3. Consolidated Financial Statements and Main Notes ............................................................................... 7(1)

Consolidated Balance Sheets ......................................................................................................... 7(2)

Consolidated Income Statements and Consolidated Statement of Comprehensive Income .......... 9(3)

Consolidated Statements of Changes in Net Assets ..................................................................... 11(4)

Consolidated Cash Flow Statements ............................................................................................ 13(5)

Notes Concerning Consolidated Financial Statements ................................................................. 14(Notes Regarding the Company as a Going Concern).................................................................. 14(Changes in Accounting Policies).................................................................................................. 14(Notes on Consolidated Income Statements) ............................................................................... 14(Segment Information, etc.) .......................................................................................................... 16(Per-Share Information) ................................................................................................................ 16(Subsequent Events) .................................................................................................................... 16

4. Other Notes ........................................................................................................................................... 17
Circumstances Concerning Orders Received, Sales, and Production................................................... 17- 1 -1. Summary of Operating Results(1) Summary of Operating Results for the Current Fiscal YearIn terms of the Japanese economic outlook for the current consolidated fiscal year, although signs of a gradual
recovery were seen in socioeconomic activity driven by increased consumer spending in the domestic market anddemand for inbound tourism following the relaxing of restrictions enforced due to the COVID-19 pandemic, theoutlook remains uncertain due to ongoing concerns over a downturn in overseas economies, the prolonged conflictin Ukraine and tensions in the Middle East, rising prices, and fluctuations in financial and capital markets.
In terms of the educational landscape, while the challenges posed by a declining birth rate persist, the GIGA school
concept is driving a shift away from an analog educational model to a digital approach. Meanwhile, STEAM
education, which focuses on developing problem-solving skills and independent thinking, promotes a transition
away from a uniform approach to learning, to one tailored to the individual driven by diverse modes of thinking. With
regard to entrance examinations, while a record number of junior high school students sat for entrance
examinations in the Tokyo metropolitan area, we are seeing increased diversity in university admissions programs
as we enter an era where university places outnumber applicants. 53.3% of private four-year universities failed to fill
all available university places in 2023, and exam takers are increasingly opting for School Recommendation Type
Selection and Comprehensive Selection recommendation type admissions.
The prep school market faces the need to promptly respond to environmental challenges, and competition for new
students among firms, including new entrants from other industries, is intensifying.
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.
We have implemented a number of improvements to drive a recovery in student inquiries, which has remained apersistent challenge for a number of years, including marketing reforms, in addition to renewing our website, as well
as reducing the hypothesis testing cycle for identifying pages and designs that effectively promote our services tocustomers. Further, we implemented a concentrated advertising campaign on public transport during the summer
student recruitment period in the Tokyo Metropolitan Area and Kansai to help drive awareness. As a result of these
efforts, the number of inquiries in the second half exceeded the same period of the preceding year.
In addition to the above, the four key initiatives implemented are described in detail below.
(1) Development of educational content
Following on from the mid-term university admission course developed in the first quarter, we continued todevelop courses to meet demand. Further, we developed our in-school tutoring service, which launched on a
trial basis, while leveraging the assets of the Benesse Group to build on our unique competitive advantages. As
a result, we have seen a steady improvement in the learning outcomes of our students. We plan to expand thenumber of service providers in FY2024.
(2) Improvements to our organizational base
Faced with significant changes in the business environment, all employees have worked as one to face thechallenges to our business head-on and redefine the value we provide. Management and employees in the field
have engaged in a series of dialogues setting out to redefine the value we provide, and we are formulating andimplementing plans to provide this value at each of our schools.

- 2 -(3) Implementing DX at points of contact with customers
We are testing the implementation of package software as a customer communication tool to help foster
communication with customers attending our schools.
(4) Moves toward school integration
We moved forward with plans to improve location profitability while giving due consideration to customer
convenience by consolidating schools in areas with two schools in the vicinity of the same train station.
With regard to the total number of student enrollments, in the key high school segment, the number of inquiries
from students seeking to enter university through admission by general entrance examinations fell followingchanges in the university admissions environment, and average student enrollments during the FY2023 period was
30,720 (down 5.3% year-on-year).
In terms of the results for the current consolidated fiscal year, while we continued to see a recovery in the numberof new students following a recovery in the number of inquiries in the second half to exceed the same period of thepreceding year based on marketing reforms, this was not enough to offset the challenges faced in enrolling newstudents in the first quarter. As a result, net sales were 21,661 million yen, a decline of 128 million yen (0.6％) yearon-year. Operating income declined 215 million yen (11.8%) year-on year to end at 1,608 million yen. Ordinary
income dropped 219 million yen (11.9%) year-on year to end at 1,615 million yen. Net income attributable to parent
company was 959 million yen, a decline of 290 million yen (23.2%) year-on-year.
In the current fiscal year, we prioritized efforts to restore short-term performance and resolve internal structuralissues before considering future business growth.
Specifically, these efforts included course development directed at mid-term university admissions, the promotion of
in-school tutoring and needs-based course development and other projects, in addition to marketing reforms thatsignificantly increased the number of student inquiries received via the Company website compared to the same
period of the preceding year, and improvements in consulting capabilities aimed at reducing the student withdrawal
rate. As a result, we have seen signs that business performance is recovering, but this is still a work in progress. In
the upcoming term we see that there is a need to continue to focus on these short-term challenges to further boost
the core strengths of the Tokyo Individualized Educational Institute.
As such, a decision has been made to push back the announcement of the medium-term management plan until
after the next fiscal year once the recovery in short-term business performance is on firmer ground. This is due tothe need to make such plans based on this new management structure in view of the strategic challenges facing
the Group over the mid- to long-term, and developing new areas of business while leveraging the Benesse Group’s
diverse asset base.
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.

(2) Summary of Financial Standing for the Current Fiscal Year
Summary of assets, liabilities, and net assets[Assets]
Total assets as of February 29, 2024 were 11,688 million yen, a 278 million yen (2.4%) increase from the end of
the consolidated previous fiscal year.
Current assets were 7,594 million yen, a 656 million yen (9.5%) increase from the end of the consolidated
previous fiscal year. This increase was primarily the result of a 737 million yen increase in cash and deposits,
which outweighed a decrease of 85 million yen in accounts receivable.
- 3 -Tangible fixed assets were 685 million yen, an 89 million yen (11.5%) decrease from the end of the consolidated
previous fiscal year. This decrease was primarily the result of the impairment and removal of existing schools.
Intangible fixed assets were 1,407 million yen, a 359 million yen (20.3%) decrease from the end of theconsolidated previous fiscal year. This decrease was primarily due to the commencement, and increased
amortization of a student placement system and a billing platform system.
Investments and other assets were 2,000 million yen, a 70 million yen (3.6%) increase from the end of theprevious consolidated fiscal year. This increase was primarily due to increases of 77 million yen in deferred tax
assets and 24 million yen in investment securities, which outweighed a decrease of 32 million yen in lease andguarantee deposits related to school closing.
[Liabilities]
Total liabilities as of February 29, 2024 were 3,247 million yen, a 294 million yen (10.0%) increase from the end of
the previous consolidated fiscal year.
Current liabilities as of February 29, 2024 were 3,213 million yen, a 290 million yen (9.9%) increase from the endof the previous consolidated fiscal year. This increase was primarily due to increases of 95 million yen in thereserve for bonuses, 77 million yen in consumption tax payable, 57 million yen in in accrued tax payable, etc., 24
million yen in accrued expenses, 21 million yen in contractual liabilities, and 12 million yen in reserve for officer
bonuses.
Fixed liabilities as of February 29, 2024 were 34 million yen, a 3 million yen (12.3%) increase from the end of theprevious consolidated fiscal year. This increase was primarily due to a 6 million yen increase in other liabilities
despite a decrease of 2 million yen in deferred tax liabilities.
[Net assets]
Net assets as of February 29, 2024 were 8,440 million yen, a 16 million yen (0.2%) decrease from the end of theconsolidated previous fiscal year. This decline was the result of surplus dividend payments of 977 million yen,despite net income attributable to parent company totaling 959 million yen.

(3) Cash Flows for the Current Fiscal Year
Cash and cash equivalents as of February 29, 2024 (hereafter, “Cash”) were 6,807 million yen, an increase of 737
million yen from the end of the previous consolidated fiscal year.
The status of each type of cash flow and the main factors involved are described below.
[Cash flow from operating activities]
Cash from operating activities during the fiscal year ended February 2024 was 1,976 million yen.
This mainly resulted from 1,505 million yen in income before income taxes, 530 million yen in depreciation andamortization expenses, 110 million yen in impairment losses, 78 million yen in amortization of long-term prepaid
expenses, an increase of 95 million yen in reserve for bonuses, an increase of 85 million yen in accounts
receivable, an increase of 77 million yen in consumption tax payable, and 568 million yen in income taxes, etc.
paid.
Cash flow from operating activities decreased by 1,011 million yen, compared to the previous consolidated fiscal
year, due to decreases of 306 million yen in income before income taxes and 416 million yen in income taxes, etc.
paid despite an increase of 379 million yen in consumption tax payable.

- 4 -[Cash flow from investing activities]
Cash used in investing activities during the fiscal year ended February 2024 was 262 million yen.
This mainly resulted from expenditures of 113 million yen for acquisition of tangible fixed assets for relocating
schools, 83 million yen in expenditures for acquisition of intangible fixed assets for building a billing platformsystem and a student placement system, and 38 million yen in expenditures for lease and guarantee deposits.
Compared to the previous consolidated fiscal year, cash flow from investing activities decreased by 327 million
yen due to a decrease in expenditures of 317 million yen for acquisition of intangible fixed assets.
[Cash flow from financing activities]
Cash used in financing activities during the fiscal year ended February 2024 was 976 million yen.
This resulted from the payment dividends.
(Reference) Changes in cash flow-related indicators
Fiscal year
ended
February 2020

Fiscal year
ended
February 2021

Fiscal year
ended
February 2022

Fiscal year
ended
February 2023

Fiscal year
ended
February 2024

Shareholder’s equity ratio (%)

72.6

72.2

67.8

74.0

72.0

Market value-based equity ratio
(%)

228.0

293.6

256.5

249.3

207.2

Cash flow to interest-bearing
debt ratio (year)











Interest coverage ratio (multiple)











Shareholder’s equity ratio: Shareholder’s equity/total assets
Market value-based equity ratio: Market capitalization/total assets
Cash flow to interest-bearing debt ratio: Interest-bearing debt/cash flow
Interest coverage ratio: Cash flow/interest(Notes) 1. Figures for the fiscal year ended February 2020 are taken from non-consolidated financial statements.
2. As the Company has no debt outstanding, figures pertaining to the cash flow to interest-bearing debt ratio
and the interest coverage ratio have been omitted.
3. Market capitalization is calculated based on the number of shares issued, excluding treasury shares.
4. Operating cash flow is used for cash flow.
5. Interest-bearing debts include all liabilities on the balance sheet which incur interest payments.

(4) Future Outlook
The future operating environment surrounding the Company is undergoing significant changes influenced by acomplex and diverse array of factors including macroeconomic factors, such as an aging and declining population,and price increases, and changes to the Japanese education system, and the entry of new players from otherindustries in growth fields such as EdTech (a general term used to describe education and training services thatleverage the latest technologies). In particular, the changes to the education system have a significant impact on
our operating environment, and require a prompt response.
Against this backdrop in the business environment, the challenges facing individualized teaching, our corebusiness, are as follows.

- 5 -1. Promotion of education and service development
This involves the development of new services to meet the needs of customers amidst an evolving educational
environment. For private school students, we will look to develop course content tailored to specific schools,
improve the quality of instruction for students sitting middle school entrance exams, and expand our in-school
tutoring service. For public school students, we will develop services for tackling science and social studies
subjects required when taking a public high school entrance exam. We will continue to develop services thatleverage our unique competitive advantages by drawing upon the rich asset base of the Benesse Group to meetthe needs of our customers.
2. Marketing reforms
With inquiries coming from external sites on a downward trend, we will continue to pursue marketing reforms
primarily through online avenues, such as the renewal of the Company website, to compensate. We will look toraise mass awareness and strengthen our brand over the medium term.
3. Strengthening human resource development
With the commoditization of individualized teaching, it is becoming increasingly difficult to differentiate based onservice content. Amidst this operating environment, student teachers from universities and elsewhere andschool employees delivering value to our customers serve a vital human capital supporting our business
operations. Therefore, we view the unique approach to developing these human resources as service providers
as a key element differentiating us from our competition. To further differentiate us from our competitors, we willcontinue to develop human resources capable of delivering our educational ideals to our customers, centeredaround hospitality as a linchpin.
4. Increased productivity in school administration
To improve the activities of our human resources in providing customer value, improving and streamlining ourworking environment and work processes remains a key issue. We will look to enhance and streamline
communication with students and their parents using communication tools that leverage DX.
To improve the value provided by our schools, we will look to improve quality by strengthening our consultationand proposal capabilities to help each student achieve their goals and the results they are looking for while
improving, beautifying, and developing the infrastructure in the school environment to ensure student comfort
while learning.
We will address the issues raised and work toward the sustainable enhancement of corporate value, and tocontribute to a happy future for humanity, as put forth in our corporate philosophy.
With regard to the outlook for the following fiscal year, we expect net sales of 21,797 million yen (0.6% increaseyear-on-year), operating income of 1,271 million yen (20.9% decrease year-on-year), ordinary income of 1,273
million yen (21.2% decrease year-on-year), and net income attributable to parent company of 757 million yen(21.1% decrease year-on-year).
Further, the above business forecasts have been prepared based on information available at the time of writing.
Actual business performance may vary significantly in the future due to a range of factors.

2. Basic Approach to the Adoption of Accounting Standards
The Group applies Japanese accounting standards in consideration of the potential to compare periods ofconsolidated financial statements, and for comparisons between companies.
Further, the Group will consider the adoption of International Financial Reporting Standards (IFRS) as appropriate inconsideration of future business development and prevailing circumstances both in Japan and abroad.
- 6 -3. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheets(Unit: Thousands of yen)
End of previous
consolidated fiscal year
(As of February 28, 2023)

End of current
consolidated fiscal year
(As of February 29, 2024)

6,069,618
483,436
3,373
28,587359,054
2,257(7,739)6,938,587

6,807,375
398,423
3,875
28,279343,038
19,655(5,701)7,594,946

1,753,674(1,033,885)
719,788953,744(899,110)
54,634774,422

1,665,998(1,041,845)
624,152
950,099(889,188)
60,911
685,064

163,555
1,467,161
56,04250,57529,644
1,766,978143,111
1,193,270

42,14629,125
1,407,653

727
25
45,612
299,427
1,584,530
1,930,323
4,471,724
11,410,311

25,71725
45,910377,224
1,551,875
2,000,752
4,093,470
11,688,417

AssetsCurrent assets
Cash and deposits
Accounts receivable
Merchandise
Supplies
Prepaid expenses
Other
Allowances for bad debts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Total tangible fixed assets
Intangible fixed assets
Goodwill
Software
Software suspense accountStudent-related assets
Telephone subscription right
Total intangible fixed assets
Investments and other assets
Investment securities
Investments in capital
Long-term prepaid expenses
Deferred tax assets
Lease and guarantee deposits
Total investments and other assets
Total fixed assets
Total assets- 7 -(Unit: Thousands of yen)
End of previous
consolidated fiscal year
(As of February 28, 2023)

End of current
consolidated fiscal year
(As of February 29, 2024)

8,471
445,119882,793339,935
169,231
902,548
47,166122,062
5,670
2,922,998

9,702
435,300
907,403397,488
246,727
924,116
56,831
217,450
18,522
3,213,543

13,80816,49230,3002,953,299

11,464
22,57334,0383,247,581

642,157
1,013,565
6,782,542(121)
8,438,144

642,157
1,013,565
6,764,582(121)
8,420,184


18,8688,457,012
11,410,311

173
173
20,4788,440,836
11,688,417

Liabilities
Current liabilities
Accounts payable
Accounts payable-otherAccrued expenses
Accrued tax payable, etc.
Consumption tax payable
Contractual liabilities
Deposits received
Reserve for bonuses
Reserve for officer bonuses
Total current liabilities
Fixed liabilities
Deferred tax liabilities
Other
Total fixed liabilities
Total liabilities
Net assets
Shareholder's equity
CapitalCapital surplus
Retained earnings
Treasury stock
Total shareholder's equity
Accumulated other comprehensive income
Other differences in valuation of equities
Total accumulated other comprehensive income
Minority interest
Total net assets
Total liabilities and net assets- 8 -(2) Consolidated Income Statements and Consolidated Statement of Comprehensive Income
Consolidated Income Statements(Unit: Thousands of yen)
Fiscal year ended
February 2023
(March 1, 2022
to February 28, 2023)
Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Advertising expenses
Remuneration for directors (and other officers)
Salaries and allowances
Bonuses
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other salaries
Rent
Depreciation and amortization expenses
Hiring expenses
Commission expenses
Rent expenses
Provision of allowance for doubtful accounts
Reversal of provision for shareholder benefit
program
Goodwill amortization
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividend income
Gain on forfeiture of unclaimed dividends
Subsidy income
Compensation income
Gain on bad debts recovered
Gain on the liquidation of lease and guarantee
deposits
Other
Total non-operating income
Ordinary income
Extraordinary loss
Impairment losses
Total extraordinary loss
Income before income taxes
Corporate income, inhabitant and enterprise taxes
Adjustment of corporate taxes, etc.
Total accrued tax payable
Net income
Net income (loss) attributable to minority interests
Net income attributable to parent company- 9 -Fiscal year ended
February 2024
(March 1, 2023
to February 29, 2024)

21,790,075
13,975,736
7,814,339

21,661,250
13,828,825
7,832,425

2,279,787
171,350
764,894
32,257
29,412

2,218,452
197,540
906,463
40,63656,325

5,670

18,522233,843
118,120322,659
295,297
1,071,372
19,2985,477

221,308
127,505
418,477
242,814
1,066,396
18,920
6,469

(421)



20,444620,2715,989,738
1,824,600

20,444
663,518
6,223,795
1,608,629

79
550
508

3,874

90
751
3,715
1,884

5,099



24
10,137
1,834,737

602
7,044
1,615,674*22,729
22,7291,812,007
521,124
38,959560,083
1,251,923
2,254
1,249,669*110,134
110,134
1,505,540
624,863(80,217)544,646
960,8931,610
959,283

Consolidated Statement of Comprehensive Income(Unit: Thousands of yen)
Fiscal year ended
February 2023
(March 1, 2022
to February 28, 2023)
Net income
Accumulated other comprehensive income
Other differences in valuation of equities
Total accumulated other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of theparent company
Comprehensive income attributable to minority
interests- 10 -

Fiscal year ended
February 2024
(March 1, 2023
to February 29, 2024)

1,251,923

960,8931,251,923

173
173
961,067

1,249,669

959,456

2,254

1,610

(3) Consolidated Statements of Changes in Net Assets
Fiscal year ended February 2023 (March 1, 2022 to February 28, 2023)(Unit: Thousands of yen)
Shareholder's equity
CapitalBalance at beginning of
periodCapital surplus

642,157

Retained earnings

1,013,565

6,944,447

Total shareholders'equityTreasury stock(121)

8,600,048

Changes during period
Dividends of surplus(705,786)(705,786)

Dividends of surplus(Interim dividend)(705,786)(705,786)

Net income attributable toparent company

1,249,669

1,249,669

Net changes in items otherthan shareholders' equity
Total change during period
Balance at end of period(161,904)(161,904)

642,157

1,013,565

6,782,542(121)

8,438,144

Accumulated other comprehensive income
Other differences invaluation of equities

Total accumulated
othercomprehensive
incomeBalance at beginning of
periodNon-controllinginterests

16,613

Total net assets

8,616,662

Changes during period
Dividends of surplus(705,786)

Dividends of surplus(Interim dividend)(705,786)

Net income attributable toparent company

1,249,669

Net changes in items otherthan shareholders' equity

-

-

2,254

2,254

Total change during period

-

-

2,254

(159,649)

Balance at end of period--

18,8688,457,012- 11 -

Fiscal year ended February 2024 (March 1, 2023 to February 29, 2024)(Unit: Thousands of yen)
Shareholder's equity
CapitalBalance at beginning of
periodCapital surplus

642,157

Retained earnings

1,013,565

6,782,542

Total shareholders'equityTreasury stock(121)

8,438,144

Changes during period
Dividends of surplus(542,912)(542,912)

Dividends of surplus(Interim dividend)(434,330)(434,330)

Net income attributable toparent company

959,283

959,283

Net changes in items otherthan shareholders' equity
Total change during period
Balance at end of period(17,959)

(17,959)

642,157

1,013,565

6,764,582(121)

8,420,184

Accumulated other comprehensive income
Other differences invaluation of equities

Total accumulated
othercomprehensive
incomeBalance at beginning of
periodNon-controllinginterests

18,868

Total net assets

8,457,012

Changes during period
Dividends of surplus(542,912)

Dividends of surplus(Interim dividend)(434,330)

Net income attributable toparent company

959,283

Net changes in items otherthan shareholders' equity

173

173

1,610

1,784

Total change during period

173

173

1,610

(16,175)

Balance at end of period

173

173

20,4788,440,836- 12 -

(4) Consolidated Cash Flow Statements(Unit: Thousands of yen)
Fiscal year ended
February 2023
(March 1, 2022
to February 28, 2023)
Cash flow from operating activities
Income before income taxes
Depreciation and amortization expenses
Impairment losses
Goodwill amortization
Amortization of long-term prepaid expenses
Subsidy income
Increase (Decrease) in allowances for bad debts
Increase (Decrease) in reserve for bonuses
Increase (Decrease) in reserve for officer bonuses
Increase (Decrease) in reserve for shareholder
benefits
Interest and dividends received
Gain on forfeiture of unclaimed dividends
Decrease (Increase) in accounts receivable
Decrease (Increase) in inventories
Decrease (Increase) in other current assets
Increase (Decrease) in accounts payable
Increase (Decrease) in contractual liabilities
Increase (Decrease) in consumption tax payable,
etc.
Increase (Decrease) in other current liabilities
SubtotalInterest and dividend income received
Subsidies received
Income taxes, etc. refunded
Income taxes, etc. paid
Net cash provided by operating activities
Cash flow from investing activities
Expenditures for acquisition of tangible fixed assets
Expenditures for acquisition of intangible fixed
assetsExpenditures for lease and guarantee deposits
Income from refund of lease and guarantee deposits
Expenditures for acquisition of investment securities
Expenditures for acquisition of long-term prepaid
expenses
Cash used in investing activities
Cash flow from financing activities
Dividends paid
Cash used in financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 13 -

Fiscal year ended
February 2024
(March 1, 2023
to February 29, 2024)

1,812,007
437,765
22,72920,44464,653(508)(1,317)
5,818(15,120)

1,505,540
530,743
110,134
20,44478,344

(2,038)95,387
12,852(86,842)



(79)
(550)
102,789
3,614
85,822
113
42,936(90)(751)
85,012(194)(6,964)
1,231
21,568(301,665)

77,496(243,072)
1,949,540
79
508

(984,887)
965,240

15,8772,544,59290

4(568,105)
1,976,581(132,742)(113,892)(401,537)(83,551)(31,549)3,856


(38,646)
28,067(24,739)(27,410)(29,305)(589,383)(262,067)(1,409,548)(1,409,548)(1,033,691)
7,103,309
6,069,618(976,756)(976,756)
737,757
6,069,618
6,807,375

(5) Notes Concerning Consolidated Financial Statements(Notes Regarding the Company as a Going Concern)
Not applicable(Changes in Accounting Policies)(Application of The Implementation Guidance on the Accounting Standard for Fair Value Measurement)
The Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Statement No. 31,
dated June 17, 2021, hereafter the Guidance on Accounting Standard for Fair Value Measurement) was applied
from the beginning of the fiscal year ended February 2024. The new accounting policies prescribed by the
Guidance on Accounting Standard for Fair Value Measurement shall be applied prospectively in accordancewith the provisions for transitional handling prescribed in Paragraph 27-2 of the Guidance on AccountingStandard for Fair Value Measurement. Further, said changes shall have no effect on financial statements.
(Notes on Consolidated Income Statements)* Impairment losses
Fiscal year ended February 2023 (March 1, 2022 to February 28, 2023)
The Group recorded impairment loss for the following asset group due to waning profitability caused by aslowdown in business performance.

Application

Type

Location

Amount(thousands of yen)

Business assets

Buildings, tools, furniture andfixtures, leased assets, and longterm prepaid expenses

Schools in the Tokyo
Metropolitan Area and others(10 schools)

22,729The Group uses schools – the smallest cash flow producing unit – as the main unit for grouping.
The recoverable amount of business assets is estimated to be zero due to a negative estimate of undiscounted
future cash flows, and its entire book value is recorded as an impairment loss.
As the Company stopped accepting new customer inquiries for the business for online individualized teaching
service as of August 30, the recoverable amount for this service was determined to be zero, and its entire bookvalue was written off as an impairment loss.
Further, the Company’s decision to consolidate schools resulted in the entire book value of assets no longer
deemed to be recoverable being written off as an impairment loss.
(Breakdown of impairment losses)
Buildings

13,210 thousand yen

Tools, furniture and fixtures

1,361 thousand yen

Leased assets

5,691 thousand yen

Long-term prepaid expenses

2,467 thousand yen

Total

22,729 thousand yen- 14 -

Fiscal year ended February 2024 (March 1, 2023 to February 29, 2024)
The Group recorded impairment loss for the following asset group due to waning profitability caused by aslowdown in business performance.

Application

Type

Location

Amount(thousands of yen)

Business assets

Buildings, tools, furniture andfixtures, leased assets, long-term
prepaid expenses, and telephone
subscription right

Schools in the Tokyo
Metropolitan Area and others(14 schools)

110,134

The Group uses schools – the smallest cash flow producing unit – as the main unit for grouping.
The recoverable amount of business assets is estimated to be zero due to a negative estimate of undiscounted
future cash flows, and its entire book value is recorded as an impairment loss.
Further, the Company’s decision to consolidate schools resulted in the entire book value of assets no longer
deemed to be recoverable being written off as an impairment loss.
(Breakdown of impairment losses)
Buildings

89,906 thousand yen

Tools, furniture and fixtures

4,748 thousand yen

Leased assets

11,611 thousand yen

Long-term prepaid expenses

3,349 thousand yen

Telephone subscription right

518 thousand yen

Total

110,134 thousand yen- 15 -

(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.
(Per-Share Information)
Fiscal year ended February 2023
(March 1, 2022
to February 28, 2023)

Fiscal year ended February 2024
(March 1, 2023
to February 29, 2024)

Net assets per share

155.42 yen

155.10 yen

Net income per share

23.02 yen

17.67 yen

(Notes) 1
2

Diluted net income per share is not recorded because there are no dilutive shares.
The basis for calculating net assets per share is as follows.
Fiscal year ended February 2023
(February 28, 2023)

Fiscal year ended February 2024
(February 29, 2024)

8,457,012

8,440,836

Amount deducted from total net assets(thousands of yen)

18,86820,478(of which pertains to non-controllinginterests) (thousands of yen)

(18,868)(20,478)

8,438,144

8,420,357

54,29154,291

Fiscal year ended February 2023
(March 1, 2022
to February 28, 2023)

Fiscal year ended February 2024
(March 1, 2023
to February 29, 2024)

1,249,669

959,283

1,249,669

959,283

54,29154,291

Item
Total net assets (thousands of yen)

Closing balance of net assets pertaining
to outstanding shares of common stock(thousands of yen)
Shares of common stock used in
calculation of net assets per share(thousands of shares)
3

The basis for calculating net income per share is as follows.

Item
Earnings per share
Net income attributable to parent
company (thousands of yen)
Net income not attributable to ordinary
shareholders (thousands of yen)
Net income attributable to parent
company available to common stock(thousands of yen)
Average number of shares of common
stock during the period (thousands ofyen)(Subsequent Events)
Not applicable- 16 -

4. 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
Fiscal year ended February 2024
(March 1, 2023 to February 29, 2024)

Segment nameYear-on-year comparison

No. of students(people)Amount(thousands ofyen)

Composition
ratio
(%)

No. of students(%)

Primary school students

4,238

2,482,053

11.5

95.8

102.0

Junior high school students

11,207

7,528,682

34.8

94.8

99.0

High school students

15,275

11,225,890

51.8

94.4

99.3

30,72021,236,626

98.0

94.7

99.5



424,623

2.0



94.8



21,661,250

100.0



99.4

Amount(%)

Individualized teaching

Total individualized teaching
Other business totals
Total(Notes) 1
2

The number of students is the average number of students enrolled during the period.
Other business activities include science labs, writing classes, online-only individualized teaching, in-school
tutoring and corporate human resource development activities provided by HRBC Co., Ltd.

- 17 -