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 Nine Months Ended May 31, 2024
(Japanese GAAP)
July 11, 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:
July 12, 2024
Scheduled date to commencement dividend payment:
Preparation of supplementary material on quarterly financial results:
None
Holding of quarterly financial results briefing:
None(Amounts are rounded down to the nearest million yen.)
1. Consolidated financial results for the Nine months ended May 31, 2024 (from September 1, 2023 to May 31, 2024)(1) Consolidated operating results (cumulative)(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions ofMillions ofMillions ofMillions ofNine months ended%%%%yenyenyenyen
May 31, 2024
15,9206.7
200 (43.1)
274 (44.2)
63 (81.9)
May 31, 2023
14,9247.5
352 (45.5)
491 (31.8)(Note) Comprehensive income: Nine months ended May 31, 2024: ¥182 million [(65.1) %]Nine months ended May 31, 2023: ¥524 million [(41.0) %]Nine months ended
May 31, 2024
May 31, 2023

Basic earnings pershare
Yen
2.52
13.96

350(53.4)

Diluted earnings
per share
Yen-(2) Consolidated financial position
Total assets
Net assets
As ofMillions of yen
Millions of yen
May 31, 2024
15,167
10,480August 31, 2023
15,811
11,203(Reference) Equity: As of May 31, 2024:¥10,480 million
As of August 31, 2023:¥11,203 million

Equity-to-asset ratio
%
69.1
70.9

2. Cash DividendsFirstquarter-end
Yen

Annual dividends per share
SecondThird
Fiscal year-end
quarter-end
quarter-end
Yen
Yen
Yen

TotalYen

Fiscal year ended August
12.00
12.00
24.00
31, 2023
Fiscal year ending August22.0031, 2024
Fiscal year ending August
12.00
34.00
31, 2024 (Forecast)(Note) Revision of dividend forecast in the current quarter:
NoneDetails 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)3. Consolidated Financial Results Forecast for Fiscal Year Ending August 31, 2024 (from September 1, 2023 toAugust 31, 2024)(% indicates year-on-year changes)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Millions ofyen

Millions ofyen%

Full-year
22,000
5.4
1,200
12.7
1,250(Note) Revision to the financial results forecast announced most recently:

0.6
None%

Millions ofyen%Millions ofyen%

yen

820

1.4

32.53

*Notes:(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change inthe scope of consolidation): None
(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 May 31, 2024
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 May 31, 2024
As of August 31, 2023

2,592,148 shares
2,599,108 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Nine months ended May 31, 2024
Nine months ended May 31, 2023

25,208,785 shares
25,133,347 shares

Note: Treasury stock for the nine months ended May 31, 2024, 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 for thefiscal 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 anaudit corporation.
* Proper use of earnings forecasts, and other special matters forward-looking statements in the document, such asearnings forecasts, are based on the information currently available and certain assumptions that the company thinksreasonable. Actual results may differ remarkably from the statements due to variety of different factors.

（Reference）Trend of numbers of Meiko Gijuku schools and registered students and system-wide sales
Nine months ended
May 31, 2023
From Sep. 1, 2022
to May 31, 2023
Operating
YOYresultscomparison

TermFiscal Period

Nine months ended
May 31, 2024
From Sep. 1, 2023
to May 31, 2024
Operating
YOY
results comparison

Number of Meiko Gijuku directly operated schools

233

16270

37

Number of Meiko Gijuku directly operated schools (MAXIS)

97294(3)

Number of Meiko Gijuku directly operated schools (KLINE)

41-41-

Number of Meiko Gijuku directly operated schools(TOMONI)42-42-

Number of Meiko Gijuku directly operated schools (One link)

21-

20(1)

Number of Meiko Gijuku directly operated schools (Cooth)

18

320

2

Subtotal number of Meiko Gijuku directly operated schools

452

21487

35

Number of Meiko Gijuku franchised schools

1,304

(32)

1,227

(77)

Total number of Meiko Gijuku schools

1,756

(11)

1,714

(42)

14,703938

16,475

1,772

5,778

(19)

5,412

(366)

2,585

(6)

2,532

(53)

1,831

(124)

1,862

31

776

(35)

872

96

966

11

1,042

76

26,639765

28,195

1,556

57,045(3,610)54,518(2,527)

83,684(2,845)82,713(971)(Millions of yen)

8,852

366

9,259

406

(Millions of yen)

3,055

(174)

2,975

(80)

Sales from Japanese language schools(Millions of yen)

816

264

1,014

197

Sales from others(Millions of yen)

2,199

584

2,671

472

Total Sales(Millions of yen)

14,924

1,040

15,920

996

8,852

366

9,259

406

16,378(995)

15,766(612)

25,231(628)

25,025(205)

Number of registered students of Meiko Gijuku directly
operated schools
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)
Number of registered students of Meiko Gijuku directly
operated schools (Cooth)
Subtotal number of registered students of Meiko Gijuku
directly operated schools
Number of registered students of Meiko Gijuku franchised
Schools
Total number of registered students of Meiko Gijuku schools
Sales from Meiko Gijuku directly operatedschools
Sales from Meiko Gijuku franchised schools*1

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

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

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

*1
2

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.

Quarterly consolidated financial statements and major notes(1) Quarterly consolidated statement of balance sheets(Millions of yen)
As of August 31, 2023
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 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
OtherTotal investments and other assets
Total non-current assets
Total assets

As of May 31, 2024

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

7,286
855
118
3
18
106
415
514
(41)
9,279

1,416(833)
582
415
(359)
55
48
19(13)
6693

1,558(900)658
437(364)72
48
41(15)
25805

292
163
20
4
482

547
219
9
4
780

2,809
26
98
1,022
100
158
4,214
5,390
15,811

2,902
29
118
1,089
100
62
4,302
5,888
15,167

(Millions of yen)
As of August 31, 2023
Liabilities
Current liabilitiesAccounts 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-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

As of May 31, 2024

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

165
132
956
129
185
1,268
2
172
623
149
3,786

135

136

36

51

79
116
67
4406
1
848
4,607

79
116
47
25
441
1900
4,687

972
909
11,184(2,707)
10,358972
909
10,334(2,700)
9,516

815

931

29
844
11,203
15,811

32
963
10,48015,167

(2) Quarterly consolidated statements of profit or loss and comprehensive income
Quarterly consolidated statements of profit or loss

(Millions of yen)
Nine months ended
May 31, 2023
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 for using equity
methodGain on investments in investment partnerships
Rental income
Reversal of allowance for doubtful accounts
Subsidy income
Penalty income
Other
Total non-operating income
Non-operating expenses
Loss on investments in investment partnerships
Rental expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on change in equity
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

Nine months ended
May 31, 2024

14,924
11,708
3,215
2,863
352

15,92012,676
3,244
3,043
200

7
10

6
23

51

7

15
60
57
149

0
12
50
14
1282

5
40
11491

1
7
9274

0
149
150

0
32
538

90
2
11629
237
41
278
350
350

1
24
4
31
281
305
(87)
217
63
63

Quarterly consolidated statements of comprehensive income(Millions of yen)

Nine months ended
May 31, 2023
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent

Nine months ended
May 31, 2024

350

63

174

116

(1)

2173
524

119
182

524

182

(3) Notes to Quarterly Consolidated Financial Statements(Notes on premise of a going concern)
Not applicable.
(Notes on significant changes in the amount of shareholders' equity)
Nine months ended May 31, 2024 (from September 1, 2023 to May 31, 2024)
Not applicable.

Segment Information
Ⅰ Nine months ended May 31, 2023 (from September 1, 2022 to May 31, 2023)
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

515

1,165

-

1,681

1,526

3,207

8,336

1,890

816

11,043673

11,717

8,852

3,055

816

12,724

2,199

14,924------

8,852

3,055

816

12,724

2,19914,924-683

0683

297

981

8,852

3,739

816

13,4082,497

15,906

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 andtransfers
Total

Japaneselanguageschools

Others*

Total

Total

Segment profit (loss)
403
877
18
1,300
13
1,313
(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 consolidated
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)
Reportable segment totalProfit (Loss) for “Others” category

Amount1,300
13Corporate expenses*(960)

Operating profit reported on quarterly statements of income352(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 on fixed assets and goodwill by reportable segment(Significant changes in the amount of goodwill)
Not applicable.

Ⅱ Nine months ended May 31, 2024 (September 1, 2023 to May 31, 2024)
1．Information about segment sales and income (Loss)(Millions of yen)
Reportable segment
Meiko Gijuku
directlyoperated schools

Meiko Gijuku
franchisedschools

546

1,150-

1,696

1,819

3,515

8,712

1,824

1,014

11,552852

12,404

9,259

2,975

1,014

13,2482,671

15,920

-

----

-

9,259

2,975

1,014

13,2482,671

15,920

-

676

-

676

369

1,046

9,259

3,652

1,014

13,925

3,041

16,966

443

747

64

1,254

7

1,262

Net sales
Goods or services thatare transferred at a point
in timeGoods or services thatare transferred over a
fixed period of time
Revenue from a contract
with a customer
Other income
Sales to externalcustomers
Intersegment sales andtransfers
Total
Segment profit (loss)

Japaneselanguageschools

Others*

Total

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 consolidated
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 totalProfit (loss) for “Others” category
Corporate expenses*1,254
7(1,061)

200
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 on impairment loss on fixed assets and goodwill by reportable segment(Significant changes in the amount of goodwill)
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 increased importance.
Since we acquired all shares of Runwellness Co., Ltd. (renamed Meikowellness Co., Ltd. as of May 31, 2024), it has
been included in the scope of consolidation from the third quarter of the current consolidated fiscal year.
As a result, the increase in goodwill in the "Other" segment was 355 million yen.