Summary of Consolidated Financial Results for the Three Months Ended November 30, 2022

Note:

This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

Summary of Consolidated Financial Results for the Three Months Ended November 30, 2022
(Japanese GAAP)

January 11, 2023
Company name:
MEIKO NETWORK JAPAN CO., LTD.
Listing:
Tokyo
Securities code:
4668（URL：https://www.meikonet.co.jp）
Representative:
Kazuhito Yamashita, President & Representative Director
Inquiries:
Kouyuki Sakamoto, Executive Officer, General Manager of Corporate Planning Department
Telephone:+81-3-5860-2111
Scheduled date to file quarterly securities report:
January 12, 2023
Scheduled date to commencement dividend payment:
Preparation of supplementary material on quarterly financial results:
None
Scheduled date of annual general meeting of shareholders:None(Amounts are rounded down to the nearest million yen)
1. Consolidated financial results for the three months ended November 30, 2022 (From September 1, 2022 to November 30,2022)(% indicates changes from the previous corresponding period)(1) Consolidated operating results (cumulative)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen%
Millions of yen% Millions of yen%
Millions of yen%
Three months ended
November 30, 2022
4,823
5.1
154 (57.1)
179 (53.1)
96 (84.6)
November 30, 2021
4,591
2.0
360
(9.1)
383 (14.9)
629 102.1(Note) Comprehensive income: For the three months ended November 30, 2022: ¥115 million[(82.6) %]For the three months ended November 30, 2021: ¥665 million[ 119.8 %]Three months ended
November 30, 2022
November 30, 2021

Basic earnings pershare

Diluted earnings
per share

Yen

Yen

3.86
25.08

-(2) Consolidated financial position
Total assets
Net assets
Equity-to-asset ratio
Millions
ofyen
Millionsofyen%
As ofNovember 30, 2022
14,834
10,441
70.4
August 31, 2022
15,43910,606
68.7
Reference: Equity
As of November 30, 2022:¥10,441 million
As of August 31, 2022:¥10,606 million
2. Cash Dividends

Annual dividends per share
Second quarter-endThird quarter-end

Yen

Yen

Yen

Yen

Yen-11.00

22.00-12.00

24.00

Fiscal year ended August
11.00
31, 2022
Fiscal year ending August31, 2023
Fiscal year ending August
12.00
31, 2023 (Forecast)(Note) Revision of dividend forecast in the current quarter:
None

1

Fiscal year end

Total

First quarter-end

Summary of Consolidated Financial Results for the Three Months Ended November 30, 2022

3. Consolidated Financial Results Forecast for fiscal year ending August 31, 2023 (From September 1, 2022 to August 31,2023)(% indicates year-on-year changes)Basic
Profit attributable toNet sales
Operating profit
Ordinary profit
earnings
owners of parent
per share
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

yen

529

(56.9)

21.09

800(17.9)

31.89

Second quarter
10,500 5.8
870 (31.3)
906 (31.7)(comulative)
Full-year
21,000 6.7
1,300
11.2
1,350
4.7
(Note) Revision to the financial results forecast announced most recently: NoneNotes:(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change inthe scope of consolidation):None
Newly included:
0 companies (Company name)
Excluded:
0 companies (Company name)(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatement
1) Changes in accounting policies caused by revision of accounting standards: Yes
2) Changes in accounting policies due to other reasons:None3) Changes in accounting estimates:
None4) Restatement:
None(4) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of November 30, 2022
27,803,600 shares
As of August 31, 2022
27,803,600 shares(ii)

Number of treasury shares at the end of the period
As of November 30, 2022
As of August 31, 2022

2,720,058 shares
2,720,058 shares(iii) Average number of shares outstanding during the period.
Three months ended November 30, 2022
Three months ended November 30, 2021

25,083,542 shares
25,083,542 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants
or an audit corporation.
* Proper use of earnings forecasts, and other special matters
Forward-looking statements in the document, such as earnings forecasts, are based on the information
currently available and certain assumptions that the company thinks reasonable. Actual results may differ
remarkably from the statements due to variety of different factors.

2

Summary of Consolidated Financial Results for the Three Months Ended November 30, 2022

（Reference）Trend of numbers of Meiko Gijuku schools and registered students and system-wide sales
Three months ended
November 30, 2021
From Sep. 1, 2021
to Nov. 30, 2021
Operating
YOY
results comparison

TermFiscal Period

Three months ended
November 30, 2022
From Sep. 1, 2022
to Nov. 30, 2022
Operating
YOY
results comparison
224

1793(1)
-

95

241-

41-

42-

42-

21-

22

1

Number of Meiko Gijuku directly operated schools (Cooth) *1

-

-

16

16

Subtotal number of Meiko Gijuku directly operated schools

404

(1)

440

36

Number of Meiko Gijuku franchised schools

1,362(75)

1,333

(29)

Total number of Meiko Gijuku schools

1,766(76)1,7737

15,187664

16,302

1,115

7,027

50

6,760

(267)

2,976

210

2,856

(120)

2,283

96

2,328

45

948

81

981

33

-

-

1,210

1,210

Subtotal mumber of registered students of Meiko Gijuku directly
operated schools

28,421

1,101

30,4372,016

Number of registered students of Meiko Gijuku franchised
Schools

76,379(4,931)

70,911(5,468)

Total number of registered students of Meiko Gijuku schools

104,800(3,830)101,348

Number of Meiko Gijuku directly operated schools (MNJ)

207

Number of Meiko Gijuku directly operated schools (MAXIS)
Number of Meiko Gijuku directly operated schools (KLINE)
Number of Meiko Gijuku directly operated schools(TOMONI)
Number of Meiko Gijuku directly operated schools (One link)

Number of registered students of Meiko Gijuku directly
operated schools (MNJ)
Number of registered students of Meiko Gijuku directly
operated schools (MAXIS)
Number of registered students of Meiko Gijuku directly
operated schools (KLINE)
Number of registered students of Meiko Gijuku directly
operated schools (TOMONI)
Number of registered students of Meiko Gijuku directlyoperated schools (One link)umber of registered students of Meiko Gijuku directlyoperated schools (Cooth) *1

Sales from Meiko Gijuku directly operated schools(Millions of yen)

2,589

(16)

2,773

(3,452)

Sales from Meiko Gijuku franchised schools *2(Millions of yen)

1,082

56

991

(91)

Sales from Japanese language schools(Millions of yen)

185

(6)

271

86

Sales from others(Millions of yen)

734

54

786

52

Total Sales(Millions of yen)

4,591

88

4,823

232

Sales from Meiko Gijuku directly operated schools (Millions of yen)

2,589(16)

2,773

184

System-wide sales from Meiko Gijuku franchised schools(Millions of yen)

6,010(398)5,609(400)

Total system-wide sales from Meiko Gijuku schools*3(Millions of yen )8,599(415)

8,383(216)

*1
*2
*3

184

Cooth CO., LTD. was included in the scope of consolidation on December 1, 2021 due to the acquisition of shares.
Sales from Meiko Gijuku franchised schools represent royalty revenues and sales of products.
Total system-wide sales from Meiko Gijuku schools represent the sum of total sales of Meiko Gijuku directly operated
schools, including tuition, materials fees, and examination fees, and the total sales of Meiko Gijuku franchised schools,including tuition. Materials fees and examination fees of franchised schools are excluded.

3Summary of Consolidated Financial Results for the Three Months Ended November 30, 2022

Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated statement of Balance Sheets
Previous consolidated
fiscal year
(As of Aug. 31, 2022)(Millions of yen)
Quarterly Consolidated
Accounting Period(As of Nov. 30, 2022)

8,755
977
95
13716329
243(33)

7,938
1,164
96
10914303
148(38)

Total current assets

10,405

9,647

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

1,290(780)

1,329(796)

Buildings and structures, net

509

532

Tools, furniture and fixtures
Accumulated depreciation

394(340)399(344)

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
MerchandiseWork in process
Supplies
Advance payments to suppliers
Prepaid expenses
Other
Allowance for doubtful accounts

Tools, furniture and fixtures, net

5355

Land4949

Leased assets
Accumulated depreciation
Leased assets, net

35(23)
1119(10)
8

Total property, plant and equipment

624

645

Intangible assets
Goodwill
Software
Software in progress
Telephone subscription right

422
180
4390
163
33
4

Total intangible assets

607

591

Investments and other assets
Investment securities
Long-term prepaid expenses
Deferred tax assets
Leasehold and guarantee deposits
Long-term time deposits
Other

2,452
22233
949
100
442,473
24309
993
100
49

Total investments and other assets

3,8013,950

Total non-current assets

5,033

5,187

Total assets

15,43914,8344

Summary of Consolidated Financial Results for the Three Months Ended November 30, 2022

Previous consolidated
fiscal year
(As of Aug. 31, 2022)
Liabilities
Current liabilities
Accounts payable - trade
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Contract liabilities
Lease liabilities
Deposits received
Provision for bonuses
Other
Total current liabilities(Millions of yen)
Quarterly Consolidated
Accounting Period(As of Nov. 30, 2022)

128
231
1,179
570
195
1,148
185
434
44
4,019

185
160
938
174
253
1,080
1159
597
26
3,577

121
26
62
84
117
910
380
1813

123
30
62
80116
95384
1815

Total liabilities

4,833

4,393

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity

972
909
10,959(2,779)10,062972
909
10,776(2,779)
9,878

521
21
543

539
22562

Total net assets

10,606

10,441

Total liabilities and net assets

15,43914,834Non-current liabilitiesRetirement benefit liability
Provision for share awards for directors (and other officers)
Provision for share awards
Long-term accounts payable-other to employees
Long-term accounts payable-other to officers
Deferred tax liabilities
Lease liabilities
Asset retirement obligations
Long-term guarantee deposits
Total non-current liabilities

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income5Summary of Consolidated Financial Results for the Three Months Ended November 30, 2022

(2) Quarterly Consolidated statements of profit or loss and comprehensive income
Quarterly Consolidated statements of profit or loss
Three months ended
November 30, 2021
(from Sep. 1, 2021
to Nov. 30, 2021)(Millions of yen)Three months ended
November 30, 2022
(from Sep. 1, 2022
to Nov. 30, 2022)

Net sales
Cost of sales

4,591
3,461

4,823
3,789

Gross profit

1,130

1,033

Selling, general and administrative expenses

769878Operating profit

360

154

Non-operating income
Interest income
Dividend income
Rental income
Reversal of allowance for doubtful accounts
Subsidy income
Other183143273309

Total non-operating income

2325

Non-operating expenses
Rental expenses
Other

0000

Total non-operating expenses

00

Ordinary profit

383

179

Extraordinary income
Gain on sale of property, plant and equipment
Gain on sale of shares of subsidiaries and associates

623

0-

Total extraordinary income

6230Extraordinary losses
Loss on change in equity
Loss on sale of non-current assets
Extra retirement payments
Other24390-

Total extraordinary losses

28

9Profit before income taxes

978

170

Income taxes - current
Income taxes - deferred

411
(61)

157
(84)

Total income taxes

349

73

Profit629

96

Profit attributable to owners of parent

629

96

6Summary of Consolidated Financial Results for the Three Months Ended November 30, 2022

Quarterly consolidated statements of comprehensive income
Three months ended
November 30, 2021
(from Sep. 1, 2021
to Nov. 30, 2021)(Millions of yen)Three months ended
November 30, 2022
(from Sep. 1, 2022
to Nov. 30, 2022)

ProfitOther comprehensive incomeValuation difference on available-for-sale securities
Share of other comprehensive income of entities accounted forusing equity method

629

96

3818

Total other comprehensive income

3618

Comprehensive income

(1)

665

115

Comprehensive income attributable toComprehensive income attributable to owners of parent

665

115

70

Summary of Consolidated Financial Results for the Three Months Ended November 30, 2022

Segment Information
I. Three months ended November 30, 2021 (September 1, 2021 to November 30, 2021)
1．Information related to net sales, profit or loss for each reportable segment.

(Millions of yen)

Reportable segment
Meiko Gijuku
directlyoperated schools

Meiko Gijuku
franchisedschools

180

385

-

565

455

1,021

2,409

697

185

3,291

278

3,570

2,589

1,082

185

3,857

734

4,591

-

----

-

2,589

1,082

185

3,857

734

4,591

-

216

-

216

5

221

2,589

1,299

185

4,073

739

4,812

Net sales
Goods or services thatare transferred at apoint in time
Goods or services thatare transferred over a
fixed period of time
Revenue from contracts
with customers
Other income
Sales to externalcustomersInter-segment salesand transfers
TotalJapanese
languageschools

Others*

Total

Total

Segment profit (loss)
70525(60)535
122658(Note) “Others” consists of the operating segments not included in reportable segments. It includes Kids Business(Afterschool), Waseda Academy Kobetsu Schools, Jiritsugausyu RED, MEIKO Kids e business, recruitment
and temporary staffing, training programs and other businesses of consolidated subsidiaries Koto &Company.
2．Difference between the Total of the Reportable Segments’ Measures of Profit or Loss and Income according toConsolidated Quarterly Statements of Income, and the Main Components of the Difference (Matters related to Adjustmentof Difference)(Millions of yen)
Profit (Loss)

AmountReportable segment total

535

Profit (Loss) for “Others” category

122

Corporate expences *(297)

Operating income in consolidated financial
360
statements(Note)* Corporate expenses are mainly expenses that relate to the General Affairs section of the parent company
that are not attributable to the reportable segment.

3. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
No applicable items.

8Summary of Consolidated Financial Results for the Three Months Ended November 30, 2022

Ⅱ Three months ended November 30, 2022 (September 1, 2022 to November 30, 2022)
1．Information about Segment Sales and Income (Loss)(Millions of yen)

Reportable segment
Meiko Gijuku
directlyoperated schools

Meiko Gijuku
franchisedschools

166

340

-2,606651

2,773

Net sales
Goods or services that aretransferred at a point intime
Goods or services that aretransferred over a fixed
period of time
Revenue from a contract
with a customer
Other income
Sales to external customers
Intersegment sales andtransfers
Total
Segment profit (loss)

Japaneselanguageschools

Others*

Total

506

567

1,074

271

3,529

219

3,749

991

271

4,036

786

4,823

-

-----

2,773

991

271

4,036

786

4,823

-

224-

224

47

272

2,773

1,215

271

4,260

834

5,095

34

391

8434

23458

Total

(Note) * “Others” consists of the operating segments not included in reportable segments. It includes Kids Business(Afterschool), Jiritsugakusyu RED, Meiko Kids e Business, HR solution business and other businesses ofconsolidated subsidiaries Koto & Company and Simple Inc.
2．Difference between the Total of the Reportable Segments’ Measures of Profit or Loss and Income according toConsolidated Quarterly Statements of Income, and the Main Components of the Difference (Matters related toAdjustment of Difference)(Millions of Yen)
Profit (Loss)
AmountReportable segment total434

Profit (loss) for “Others” category23(303)

Corporate expenses*

154
Operating profit reported on quarterly statements of income(Note)* Corporate expenses are mainly expenses that relate to the General Affairs section of the parent company
that are not attributable to the reportable segment.
3.

Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
No applicable items.

9