Summary Report on Financial Results for the Third Quarter of the Year Ending August 2021

Summary Report on Financial Results for the Third Quarter of the Year Ending August 2021
(Japanese Accounting Standards)
Company name:
Stock exchange listing:Stock code:

MEIKO NETWORK JAPAN CO., LTD.
The First Section of the Tokyo Stock Exchange
4668（URL：https://www.meikonet.co.jp）

Representative:
Contact:

July 8, 2021

Kazuhito Yamashita, President
Kouyuki Sakamoto, Executive Officer, General Manager of Corporate Planning
DepartmentTel:+81-3-5860-2111
Scheduled date for filing the securities report:
July 12, 2021
Scheduled date for commencement of dividend payment:
Supplementary material development:
None
Financial results meeting:None(Amounts less than one million yen are discarded)

1. Consolidated financial results for the Third quarter of the year ending August 2021（September 1, 2020 through May31, 2021）(1) Consolidated operating results (cumulative)（Percentages represent increases or decreases from the previous year）
Net income
attributable to owners
Operating income
Ordinary incomeof the parent
million yen%million yen%million yen%

Net sales
million yen%

Third quarter of the year
13,505
1.0
269 620.2
ending August 2021
Third quarter of the year
13,365(4.9)
37 (95.8)
ended August 2020
(Note) Comprehensive income:Third quarter of the year ending August 2021:
670 million yen, 114.2%
Third quarter of the year ended August 2020:
312 million yen, (14.1%)
yen

Fully diluted net
income per shareyen

26.81－(0.35)－Net income per share

Third quarter of the year
ending August 2021
Third quarter of the year
ended August 2020
(2) Consolidated financial situation

Total assets

million yen

Year ended
August 2020Year ending
August 2021
Year ending
August 2021

672－

181

(81.4)(9)－％

Third quarter of the year
14,497
9,516
ending August 2021
Year ended August 2020
14,041
9,473(Reference) Shareholders’ equity:
Third quarter of the year ending August 2021:
9,516 million yen
Year ended August 2020:
9,473 million yen
2. Dividends

103.6

Shareholders’equity ratio

Net assets

million yen

370

65.6
67.5

Yearly Dividends per share

End of the firstquarteryen

End of the secondquarteryen

End of the thirdquarteryen

－

15.00

－－

10.00

－

(estimate)(Note) Revision of dividend forecast in the current quarter: None1

End of the term

annualyenyen

15.00

30.00

10.00

20.00

Summary Report on Financial Results for the Third Quarter of the Year Ending August 2021

3. Forecast of consolidated financial results for fiscal year ending August 2021 (September 1, 2020 throughAugust 31, 2021)
Net sales

Full-year

million yen%

18,600

2.1(Percentages represent increases or decreases from the previous year.)
NetNet income
attributable toOperating income
Ordinary income
incomeowners of the parent
per share
millionmillionYenmillion yen%%%yenyen

630

193.3

760

68.2

700－27.91(Note) Revision of consolidated earnings forecast’ numerical values in the current quarter: None

(Notes)(1) Changes of important subsidiaries during the period(Changes of specific subsidiaries in accordance with changes in the scope of consolidation): None
(2) Application of particular accounts procedures to the preparation of quarterly consolidated financial statements:
None(3) Changes in accounting policies and changes or restatement of accounting estimates(ⅰ) Changes in accounting policies caused by revision of accounting standards:

None(ⅱ) Changes in accounting policies other than (ⅰ):None(ⅲ) Changes in accounting estimates:

None(ⅳ) Restatement:

None(4) Number of outstanding issues（common stock）(ⅰ) Number of outstanding shares at the end of the period (including treasury stock)
Third quarter of the year ending August 2021:

27,803,600 sharesYear ended August 2020:

27,803,600 shares(ⅱ) Number of shares of treasury stock at the end of the period:
Third quarter of the year ending August 2021:

2,720,058 sharesYear ended August 2020:

2,719,974 shares(ⅲ) Average number of shares during the period (accumulated consolidated quarter)
Third quarter of the year ending August 2021:

25,084,546 shares

Third quarter of the year ended August 2020:

26,557,026 shares※This financial summary falls outside the scope of quarterly review procedures.

※

Explanation of the appropriate use of the forecasts of financial results, and other noteworthy 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 tovariety of different factors.

2Summary Report on Financial Results for the Third Quarter of the Year Ending August 2021

（Reference）Trend of numbers of Meiko Gijuku schools and registered students and system-wide sales
Third quarter of the year
ended August 2020
From September 1, 2019
to May 31, 2020
Same period
Operatingthe previousresults
year

TermFiscal Period

Number of Meiko Gijuku directly operated schools

Third quarter of the year
ending August 2021
From September 1, 2020
to May 31, 2021
Same period
Operatingthe previousresultsyear

243+22206(37)94+293(1)42+141(1)

42(1)

42－－－

20+20

421+24402(19)

Number of Meiko Gijuku franchised schools

1,450(99)

1,370

(80)

Total number of Meiko Gijuku schools

1,871(75)

1,772

(99)

Number of registered studentsof Meiko Gijuku directly operated schools

12,521(1,198)

13,109+588

Number of registered studentsof Meiko Gijuku directly operated schools (MAXIS)

5,406(381)

6,060+654

Number of registered studentsof Meiko Gijuku directly operated schools (KLINE)2,217(180)2,561+344

Number of registered studentsof Meiko Gijuku directly operated schools (KMG)

1,711

(233)

1,900+189－－759+759

Total number of registered studentsof Meiko Gijuku directly operated schools

21,855(1,992)

24,389+2,534

Number of registered studentsof Meiko Gijuku franchised schools

64,335(10,256)

64,744+409

Total number of registered studentsof Meiko Gijuku schools

86,190(12,248)

89,133+2,943

7,211

(16)

8,041＋829

3,264(355)

3,162

(101)

Number of Meiko Gijuku directly operated schools(MAXIS)
Number of Meiko Gijuku directly operated schools(KLINE)
Number of Meiko Gijuku directly operated schools(KMG)
N Number of Meiko Gijuku directly operated schools(One link)
Total number of Meiko Gijuku directly operatedschools

Number of registered studentsof Meiko Gijuku directly operated schools (One link)

Sales from Meiko Gijuku directly operated schools(million yen)

Sales from Meiko Gijuku franchised schools ※1(million yen)

Sales from Japanese language schools(million yen)970(47)

665

(304)

Sales from others(million yen)

1,918

(266)

1,635

(282)

Total Sales(million yen)

13,365(686)

13,505＋139

7,211

(16)

8,041＋829

19,402(2,012)

18,509(893)

26,614(2,029)26,550(63)

Sales from Meiko Gijuku directly operated schools(million yen)

System-wide sales from Meiko Gijuku
franchised schools(million yen)
Total system-wide sales from Meiko Gijuku schools※2(million yen)※

1

Sales from Meiko Gijuku franchised schools represent royalty revenues and sales of products.

2Total system-wide sales from Meiko Gijuku schools represent the sum of total sales of Meiko Gijuku directly operated
schools, including tuition, materials and examination fees, and the total sales of Meiko Gijuku franchised schools,including tuition. Materials and examination fees of franchised schools are excluded.

3Summary Report on Financial Results for the Third Quarter of the Year Ending August 2021

Summary of consolidated financial statements(1) Consolidated balance sheets（Million yen）

End of previous fiscal End of third quarter of theyear
fiscal year
(As of August 31, 2020)(As of May 31, 2021)

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Securities
MerchandiseWork in process
Supplies
Advance payments - trade
Prepaid expenses
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Total property, plant and equipmentIntangible assets
Goodwill
Software
Software in progress
Telephone subscription right
Total intangible assets
Investments and other assets
Investment securities
Long-term prepaid expenses
Deferred tax assets
Leasehold and guarantee deposits
Long-term time deposits
Other
Total investments and other assets
Total non-current assets
Total assets

4

7,015
845
300
137
11
7
14
279
282(46)
8,848

8,784
513
200
126
2
14
20
317
224(39)
10,163

1,508(789)719
350(321)
28385
10(0)
91,142

1,140(669)471
369(316)
52
0
10(1)
8532

277
255
84545

222
209－4436

2,120
41
198
1,006
100
37
3,504
5,192
14,041

1,953
44
272
954
100
40
3,364
4,333
14,497

Summary Report on Financial Results for the Third Quarter of the Year Ending August 2021

（Million yen）
End of previous fiscal End of third quarter of theyear
fiscal year
(As of August 31, 2020)(As of May 31, 2021)

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Lease obligations
Deposits received
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Retirement benefit liability
Provision for share-based remuneration
for directors (and other officers)
Long-term accounts payable-other to
employees
Long-term accounts payable-other toofficers
Deferred tax liabilities
Lease obligations
Asset retirement obligations
Long-term guarantee deposits
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive
incomeTotal net assets
Total liabilities and net assets

5119－
134
1,055
287
198
1,537
1
45
423
43
3,847

108
1,000
100
774
208
199
1,217
179
538
56
4,286

104

109

－

8

108

105

117

117

32
9
346
1
720
4,568

3
8
340
1
694
4,981

972
909
10,140(2,903)
9,119

972
909
10,061(2,779)
9,164

342

337

11

14

354

351

9,473
14,041

9,516
14,497Summary Report on Financial Results for the Third Quarter of the Year Ending August 2021

(2) Consolidated statements of income and comprehensive income
Consolidated statements of income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted forusing equity method
Rental income
Reversal of allowance for doubtful accounts
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using
equity methodRental expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of property, plant andequipment
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of property, plant andequipment
Loss on sales of shares of subsidiaries andassociates
Loss on withdrawal from businessTotal extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit (loss) attributable to owners of parent6(Million yen)

Third quarter of theprevious consolidatedterm(From September 1,2019
to May 31, 2020)

Third quarter of theconsolidated term
(From September 1,2020
to May 31, 2021)

13,365
10,302
3,063
3,025
37

13,505
10,262
3,242
2,972
269

11
19

9
7

3－

15
79
8
13
151

14
16
51
14
113

0

1－

4

4
1
6
181

34
13
370－

531

71
71

164
696

1

953－

－
55
197
266
(53)
213
(15)
(6)
(9)

28
38
1,028
455
(99)
355
672－
672

Summary Report on Financial Results for the Third Quarter of the Year Ending August 2021

Consolidated statements of comprehensive income(Million yen)
Third quarter of theprevious consolidated term
(From September 1,2019
to May 31,2020)

Third quarter of theconsolidated term
(From September 1,2020
to May 31,2021)

(15)

672

329

(5)

(1)

3

328
312

(2)
670

319

670

(7)

－Profit (loss)
Other comprehensive income
Valuation difference on available-for-salesecurities
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of parent
Comprehensive income attributable tonon-controlling interests

7Summary Report on Financial Results for the Third Quarter of the Year Ending August 2021

Segment Information
Ⅰ Nine months ended May 31, 2020(From September 1, 2019 to May 31, 2020)
1．Information about Segment Sales and Income (Loss)(Million of Yen)
Reportable segment
Meiko Gijuku
directly operated
schools

Meiko Gijuku
franchisedschools

Japaneselanguageschools

7,211
4
7,216(84)

3,264
527
3,792
1,045970－970
119

Net sales
Sales to third party
Intersegment sales
TotalSegment income(loss)

Total

Others*

Total

1,918
63
1,981
(158)

13,365595
13,961922

11,447531
11,9791,081(Note)* “Others” consists of the operating segments not included in reportable segments. It includes Kids Business(Afterschool), Sports Business (Meiko Soccer School), Waseda Academy Kobetsu Schools and other businesses ofconsolidated subsidiaries. Youdec Ltd. and Koyo Shobo Co., Ltd. were excluded from the scope of consolidation fromthe third quarter of the current fiscal year.
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)(Million of Yen)
Income (Loss)

AmountReportable segment total

1,081

Income (Loss) for “Others”category(158)

Corporate expenses*(885)37

Operating income 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 on impairment loss of fixed assets or goodwill by reportable segment: none
Ⅱ Nine months ended May 31, 2021 (From September 1, 2020 to May 31, 2021)
1．Information about Segment Sales and Income (Loss)(Million of Yen)
Reportable segment
Meiko Gijuku
directly operated
schools

Meiko Gijuku
franchised
schools

Japaneselanguageschools

Sales to third party

8,041

3,162

665

Intersegment sales

－608

8,041
597

Others*Total

11,8691,635

13,505

3612

32

644

3,771

668

12,481

1,668

14,149

855

(125)

1,327

(179)

1,147

Total

Net sales

Total
Segment income(loss)(Note)* “Others” consists of the operating segments not included in reportable segments. It includes Kids Business(Afterschool), Waseda Academy Kobetsu Schools, Meiko Kids e, RED Business and other businesses of consolidatedsubsidiaries.

2．Difference between the Total of the Reportable Segments’ Measures of Profit or Loss and Income according to8Summary Report on Financial Results for the Third Quarter of the Year Ending August 2021

Consolidated Quarterly Statements of Income, and the Main Components of the Difference (Matters related toAdjustment of Difference)(Million of Yen)
Income(Loss)

AmountReportable segment total

1,327

Income (Loss) for “Others”category(179)

Corporate expenses*(868)Other adjustments(9)

Operating income reported on quarterly statements of income269(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 on impairment loss of fixed assets or goodwill by reportable segment: none9