Summary of Consolidated Financial Results for the Three Months Ended November 30, 2023

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, 2023
(Japanese GAAP)

January 10, 2024
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, Senior Executive Officer, General Manager of Corporate Planning Department
Telephone:+81-3-5860-2111
Scheduled date to file quarterly securities report:
January 11, 2024
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, 2023 (From September 1, 2023 to November 30,2023)(% 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, 2023
5,157
6.9
52 (66.1)
72 (59.8)(10)
November 30, 2022
4,823
5.1
154 (57.1)
179 (53.1)
96 (84.6)(Note) Comprehensive income: For the three months ended November 30, 2023: ¥155 million[34.0%]For the three months ended November 30, 2022: ¥115 million[(82.6) %]Three months ended
November 30, 2023
November 30, 2022

Basic earnings pershare

Diluted earnings
per share

Yen

Yen

(0.42)
3.86-(2) Consolidated financial position
Total assets
Net assets
Equity-to-asset ratio
Millions
ofyen
Millions
ofyen%
As ofNovember 30, 2023
15,765
11,005
69.8
August 31, 2023
15,811
11,20370.9
Reference: Equity
As of November 30, 2023:¥11,005 million
As of August 31, 2023:¥11,203 million
2. Cash Dividends

Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year end
Yen

TotalYen

Fiscal year ended August
12.00
12.00
24.00
31, 2023
Fiscal year ending August
31, 2024
Fiscal year ending August
22.00
12.00
34.00
31, 2024 (Forecast)
Note:
Revision of dividend forecast in the current quarter:
None
Details of the dividend at the end of the second quarter of the fiscal year ending August 31, 2024.
Ordinary dividend: 12.00 yen Special dividend: 10.00 yen (40th Anniversary Commemorative Dividend)1Summary of Consolidated Financial Results for the Three Months Ended November 30, 2023

3. Consolidated Financial Results Forecast for fiscal year ending August 31, 2024 (From September 1, 2023 to August 31,2024)(% indicates year-on-year changes)
BasicProfit 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

480(27.0)

19.04

820

1.4

32.53

Second quarter
10,930 4.6
740 (15.6)
760 (24.0)(comulative)
Full-year
22,000 5.4
1,20012.7
1,250
0.6(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 inNone
the scope of consolidation):
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: None
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, 2023
27,803,600 shares
As of August 31, 2023
27,803,600 shares(ii)

Number of treasury shares at the end of the period
As of November 30, 2023
As of August 31, 2023

2,599,108 shares
2,599,108 shares(iii) Average number of shares outstanding during the period.
Three months ended November 30, 2023
Three months ended November 30, 2022

25,204,492 shares
25,083,542 shares

Note: Treasury stock for the three months ended November 30, 2023 includes the Company's shares held by the"Stock Granting Trust for Officers." (141,000 shares of treasury stock at the end of the fiscal year) Treasury stock forthe fiscal year ended August 31, 2023 includes the Company's shares held by the "Stock Granting Trust for Officers."(141,000 shares of treasury stock at the end of the fiscal year)* 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, 2023

（Reference）Trend of numbers of Meiko Gijuku schools and registered students and system-wide sales
Three months endedNovember 30, 2022
From Sep. 1, 2022
to Nov. 30, 2022
Operating
YOY
results comparison

TermFiscal Period

Three months ended
November 30, 2023
From Sep. 1, 2023
to Nov. 30, 2023
Operating
YOY
results comparison

Number of Meiko Gijuku directly operated schools (MNJ)

224

17252

28

Number of Meiko Gijuku directly operated schools (MAXIS)

95

297

2

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)

41-40(1)42-42-

22

122-

Number of Meiko Gijuku directly operated schools (Cooth)

1616

19

3

Subtotal number of Meiko Gijuku directly operated schools

440

36472

32

Number of Meiko Gijuku franchised schools

1,333

(29)

1,279

(54)

Total number of Meiko Gijuku schools

1,773

7

1,751

(22)

16,302

1,115

17,660

1,358

6,760

(267)

6,590

(170)

2,856

(120)

2,807

(49)

2,328

45

2,181

(147)

981

33

959

(22)

1,210

1,210

1,276

66

Subtotal mumber of registered students of Meiko Gijuku directly
operated schools30,437

2,016

31,473

1,036

Number of registered students of Meiko Gijuku franchised
Schools

70,911(5,468)66,539(4,372)

Total number of registered students of Meiko Gijuku schools

101,348

98,012

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 directly
operated schools (One link)umber of registered students of Meiko Gijuku directly
operated schools (Cooth)

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

2,773

(3,452)

184

2,909

(3,336)

Sales from Meiko Gijuku franchised schools *1(Millions of yen)

991

(91)

985

(6)

Sales from Japanese language schools(Millions of yen)

271

86

342

70

Sales from others(Millions of yen)

786

52

920

133

Total Sales(Millions of yen)

4,823

232

5,157

333

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

2,773

184

2,909

136

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

5,609

(400)

5,437

(172)

Total system-wide sales from Meiko Gijuku schools*2(Millions of yen )

8,383

(216)

8,346

(36)

*1
*2

136

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, 2023

Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated statement of Balance Sheets(Millions of yen)

AssetsCurrent assets
Cash and deposits
Accounts receivable – trade
Securities
MerchandiseWork in process
Supplies
Advance payments to suppliers
Prepaid expenses
OtherAllowance for doubtful accounts
Total current assets
Non-current assetsProperty, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land

As of August 31, 2023

As of November 30, 2023

8,472
1,038
100
123
13
10
28
357
309(34)
10,421

7,851
1,213
100
119
11
8
7
396
528(35)
10,201

1,416(833)582
415(359)55
48

1,467(850)617
436(364)72
48

19(13)
6693

19(13)
5744

Leased assets
Accumulated depreciation
Leased assets, net
Total property, plant and equipment
Intangible 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
Other292
163
20
4482

291
202
19
4
517

2,809
26
98
1,022
100
158

2,951
24
139
1,038
100
47

Total investments and other assets
Total non-current assets
Total assets

4,214
5,390
15,811

4,301
5,563
15,7654

Summary of Consolidated Financial Results for the Three Months Ended November 30, 2023

(Millions of yen)

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
Non-current liabilities
Retirement benefit liability
Provision for share awards for directors (and otherofficers)
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
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-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

5

As of August 31, 2023

As of November 30, 2023

157
138
1,204
166
231
1,218
2
132
445
62
3,759

197
128
991
218
271
1,198
2196
637
59
3,902

135

134

36

41

79
116
67
4
406
1
848
4,607

79
116
57
4
422
1
856
4,759

972
909
11,184(2,707)
10,358972
909
10,821(2,707)
9,995

815
29
844
11,203
15,811

979
30
1,010
11,005
15,765

Summary of Consolidated Financial Results for the Three Months Ended November 30, 2023

(2) Quarterly Consolidated statements of profit or loss and comprehensive income
Quarterly Consolidated statements of profit or loss
(Millions of yen)Three months ended
November 30, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rental income
Reversal of allowance for doubtful accounts
Subsidy income
Other
Total non-operating income
Non-operating expenses
Rental expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of property, plant and equipment
Total extraordinary income
Extraordinary losses
Loss on change in equity
Loss on sale of non-current assets
Loss on retirement of non-current assets
Loss on store closings
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

6

Three months ended
November 30, 2023

4,823
3,789
1,033
878
154

5,157
4,126
1,030
978
52

273
30
925

194
2
725

0
00
179

0
5
5
72

0000

90-449170
157
(84)
7396
96

863
196
(122)
73(10)(10)

Summary of Consolidated Financial Results for the Three Months Ended November 30, 2023

Quarterly consolidated statements of comprehensive income(Millions of yen)Three months ended
November 30, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Share of other comprehensive income of entities accountedfor using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent

7Three months ended
November 30, 2023

96(10)

1816401

18115

165
155

115

155

Summary of Consolidated Financial Results for the Three Months Ended November 30, 2023

Segment Information
I. Three months ended November 30, 2022 (September 1, 2022 to November 30, 2022)
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

166

340

-

506

567

1,074

2,606

651

271

3,529

219

3,749

2,773

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

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 externalcustomers
Inter-segment sales
and transfers
TotalJapanese
languageschools

Others*

Total

Total

Segment profit (loss)
34391
8434
23458
(Note) “Others” consists of the operating segments not included in reportable segments. It includes Kids Business(Afterschool), Jiritsugausyu 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 total

434

Profit (Loss) for “Others” category

23

Corporate expences *(303)

Operating income in consolidated financial
154
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 segmentNo applicable items.

8Summary of Consolidated Financial Results for the Three Months Ended November 30, 2023

Ⅱ Three months ended November 30, 2023 (September 1, 2023 to November 30, 2023)
1．Information about Segment Sales and Income (Loss)(Millions of yen)

Reportable segment
Meiko Gijuku
directlyoperated schools

Meiko Gijuku
franchisedschools

180357-2,728627

2,909

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)

Japaneselanguage
schools

Others*

Total

538

571

1,110

342

3,698

349

4,047

985

342

4,236

920

5,157

-

-----

2,909

985

342

4,236

920

5,157

-

229

-

229

75

305

2,909

1,214

342

4,466

996

5,462

5

320

25350

53404

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 total350

Profit (loss) for “Others” category

53(351)

Corporate expenses*52
Operating profit reported on quarterly statements of income(Note)* Corporate expenses are mainly expenses that relate to the General Affairs section of the parent companythat are not attributable to the reportable segment.
3.

Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Meiko Career Partners Co., Ltd. and Reverse Inc., which were non-consolidated subsidiaries until the previous
fiscal year, were included in the scope of consolidation from the current fiscal year due to their increasedimportance.
As a result, the increase in goodwill in the "Other" segment was 30 million.

9