MEIKO NETWORK JAPAN CO.,LTD.
Summary Report on Financial Results for the First Quarter of the Year Ending August 2021

Summary Report on Financial Results for the First Quarter of the Year Ending August 2021
(Japanese Accounting Standards)
January 14, 2021
Company name:
MEIKO NETWORK JAPAN CO., LTD.
Stock exchange listing:
The First Section of the Tokyo Stock Exchange
Stock code:
4668（URL：https://www.meikonet.co.jp）
Kazuhito Yamashita, President
Representative:
Kouyuki Sakamoto, General Manager, Corporate Planning Department
Contact:
Tel:+81-3-5860-2111
Scheduled date for filing the securities report:
January 14, 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 First quarter of the year ending August 2021（September 1, 2020 throughNovember 30, 2020）(1) Consolidated operating results (cumulative)（Percentages represent increases or decreases from the previous year）
Net income
attributable to owners
Ordinary income
Operating incomeof the parent％％％
million yen
million yen
million yen

Net sales
million yen

First quarter of the year
4,502
ending August 2021
First quarter of the year
4,743
ended August 2020
(Note) Comprehensive income:First quarter of the year ending August 2021:
First quarter of the year ended August 2020:

％

(5.1)

396

21.0

450

13.0

311

59.0

3.3

327

(23.8)

398(12.0)

195(25.0)

302 million yen (57.2%)
708 million yen 98.5%

yen

Fully diluted net
income per shareyen

12.41－

7.37－

Net income per shareFirst quarter of the year
ending August 2021
First quarter of the year
ended August 2020
(2) Consolidated financial situation

Total assets

Shareholders’equity ratio

Net assets
million yen

million yen％

First quarter of the year
14,002
9,399
ending August 2021
Year ended
9,473
14,041
August 2020
(Reference) Shareholders’ equity:
First quarter of the year ending August 2021:
9,399 million yen
Year ended August 2020:
9,473 million yen

67.1
67.5

２．Dividends
Yearly Dividends per share

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

End of the firstquarteryen

End of the secondquarteryen

End of the thirdquarteryen－15.00

5.00

End of the term

Annualyenyen－

15.00

30.00

－

5.00

10.00

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

MEIKO NETWORK JAPAN CO.,LTD.
Summary Report on Financial Results for the First 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)(Percentages represent increases or decreases from the previous year for the full-year figures,and from the second quarter of the previous year for the second quarter figures.)
Net income
Net income
attributable toNet sales
Operating income
Ordinary income
per shareowners of the parent
yen％％％％
million yen
million yen
million yen
million yen

Secondquarter(cumulative)

9,300(10.8)

667(47.9)689(50.2)333(57.9)

13.28

Full-year

18,300

0.4

264

22.9

319(29.4)

270－

10.76

(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)
First 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:First quarter of the year ending August 2021:

2,720,024 sharesYear ended August 2020:

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

25,083,622 sharesFirst 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

MEIKO NETWORK JAPAN CO.,LTD.
Summary Report on Financial Results for the First Quarter of the Year Ending August 2021

（Reference）Trend of numbers of Meiko Gijuku schools and registered students and system-wide sales
First quarter of the year
ended August 2020From September 1, 2019
to November 30, 2019
Same period
Operatingof theresults
previous year

Term

Fiscal Period

Number of Meiko Gijuku directly operated schools

223(8)

208(15)

Number of Meiko Gijuku directly operated schools(MAXIS)92(1)

93+141(1)

41－

43+4342(1)

Number of Meiko Gijuku directly operated schools(One link)

－－

21+21

Number of Meiko Gijuku directly operated schools

399+33

405+6

Number of Meiko Gijuku franchised schools

1,530(125)

1,437

(93)

Total number of Meiko Gijuku schools

1,929(92)1,842(87)

Number of registered students of Meiko Gijuku
directly operated schools

15,636(433)

14,523(1,113)

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

7,008+296

6,977

(31)

Number of registered students of Meiko Gijuku
directly operated schools (KLINE)

2,709

(106)

2,766+57

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

2,351+2,3512,187(164)

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

867+867

Number of registered students of Meiko Gijuku
directly operated schools

27,704+2,10827,320(384)

Number of registered studentsof Meiko Gijuku franchised schools

89,293(6,815)81,310(7,983)

Total number of registered studentsof Meiko Gijuku schools

116,997(4,707)

108,630(8,367)2,392+177

2,605+213

1,101(90)1,026(75)381+37191(189)

Number of Meiko Gijuku directly operated schools(KLINE)
Number of Meiko Gijuku directly operated schools(KMG)

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)

Sales from others(million yen)

867+28679(188)

Total Sales(million yen)

4,743+151

4,502

(240)

2,392+177

2,605+213

6,911(493)

6,408(502)

9,303(316)

9,014

(288)

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※First quarter of the yearending August 2021
From September 1, 2020
to November 30, 2020
Same period
Operatingof theresults
previous year

1

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

2

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MEIKO NETWORK JAPAN CO.,LTD.
Summary Report on Financial Results for the First Quarter of the Year Ending August 2021

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

End of previous fiscal year
(As of August 31, 2020)
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Securities
MerchandiseWork in process
Supplies
Advance payments - trade
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, netTools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, netLand
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
Other
Total investments and other assets
Total non-current assets
Total assets

4End of first quarter of thefiscal year(As of November 30, 2020)

7,015
845
300
137
11
714
279
282(46)
8,848

7,237
886
300
129
10
921
286
181(33)
9,028

1,508(789)719
350(321)
28385
10(0)
9
1,142

1,566(846)720
364(336)
27
385
10(0)
9
1,142

277
255
8
4545

259
236
8
4508

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

1,961
36
235
953
100
37
3,323
4,974
14,002MEIKO NETWORK JAPAN CO.,LTD.
Summary Report on Financial Results for the First Quarter of the Year Ending August 2021

(Million yen)
End of previous fiscal year(As of August 31, 2020)

Liabilities
Current liabilities
Accounts payable - trade
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Lease obligations
Deposits received
Provision for bonuses
OtherTotal current liabilities
Non-current liabilities
Retirement benefit liability
Long-term accounts payable-other to employees
Long-term accounts payable-other to officers
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-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

5

End of first quarter of thefiscal year
(As of November 30, 2020)

119
134
1,055
287
198
1,537
1
45
423
43
3,847

137
70
831
240
254
1,568
1141
598
30
3,876

104
108
117
32
9346
1
720
4,568106107117368347
1
726
4,603

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

972
909
10,075(2,903)
9,054

342
11354
9,473
14,041

333
11345
9,399
14,002MEIKO NETWORK JAPAN CO.,LTD.
Summary Report on Financial Results for the First 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
Rental income
Subsidy income
Reversal of allowance for doubtful accounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rental expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of property, plant and equipment
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

First quarter of theprevious consolidated term(September 1, 2019 November 30, 2019)
4,743
3,482
1,260932327(Million yen)First quarter ofthe consolidated term
(September 1, 2020 November 30, 2020))
4,502
3,336
1,166769
396

2
65－
55
373

26523
15
255

0
102
398－
101450－
－

53
53－
－
398
246(39)
206
191
(3)
195

00503
220(28)
192
311－
311

6

MEIKO NETWORK JAPAN CO.,LTD.
Summary Report on Financial Results for the First Quarter of the Year Ending August 2021

Consolidated statements of comprehensive income(Million yen)First quarter of theprevious consolidated term
(September 1, 2019 November 30, 2019)
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Share of other comprehensive income of entities accounted for using equity method
methodTotal other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

7

First quarter ofthe consolidated term
(September 1, 2020 November 30, 2020)

191
517
(0)

311
(8)
0516
708

(8)
302

711

302

(3)

－MEIKO NETWORK JAPAN CO.,LTD.
Summary Report on Financial Results for the First Quarter of the Year Ending August 2021

Segment Information
Ⅰ Three months ended November 30, 2019(From September 1, 2019 to November 30, 2019)
1．Information about Segment Sales and Income (Loss)(Million of Yen)
Reportable segment
Meiko
Gijukudirectlyoperatedschools

Meiko
Gijukufranchisedschools

2,392

1,101

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

Japaneselanguageschools

Others*Total381

3,875

Total

867

4,743－

188－

188

27216

2,392

1,290

381

4,064895

4,959(30)

498

43511

117

629(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 of
consolidated subsidiaries.
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 total511Income(Loss) for “Others”category

117

Corporate expenses*(301)

Operating income reported on quarterly statements of income

327(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.
Ⅱ Three months ended November 30, 2020 (From September 1, 2020 to November 30, 2020)
1．Information about Segment Sales and Income (Loss)(Million of Yen)
Reportable segment
Meiko
Gijukudirectlyoperated
schools

MeikoGijuku
franchisedschools

Net sales
Sales to third party

2,605

1,026

191

3,823679

4,502Intersegment sales－203－

203

6210

2,605

1,230

191

4,027

685

4,713

145

462

(22)

584

77

662

Total
Segment income(loss)

Japaneselanguageschools

Total

Others*Total(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 of
consolidated subsidiaries.

8

MEIKO NETWORK JAPAN CO.,LTD.
Summary Report on Financial Results for the First Quarter of the Year Ending August 2021

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

584

Income(Loss) for “Others”category

77

Corporate expenses*(265)

Operating income reported on quarterly statements of income396(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.

9