1. Qualitative Data Pertaining to this Quarter’s Financial Results(1) Regarding this Quarter’s Business Results
Throughout our second financial quarter of the 20/21 financial year, the spread of the COVID-19
greatly impacted the Japanese economy, placing limitations on both social and economic activity.
Even now within Japan and abroad, while many are taking great efforts to alleviate the impact ofthe virus, with no clear end in sight to the pandemic and an unstable global economy, it is likely
this period of economic uncertainty will continue for the foreseeable future. Within the cramschool and private tuition industry, many companies were forced to temporarily suspend alloperations, particularly those specializing in group based instructional lessons. Considering boththe problem of Japan’s declining birth rate with no readily apparent solution and a revolution in
the overall approach to children’s education and university acceptance, a large-scale change isoccurring in the industry as a whole. With regards to our business model, predicated on theassumption that Japan’s birth rate would continue to decline, and bearing in mind our company
ethos of “devoting everything to giving children a bright future”, we strive to deliver a tangibly
beneficial educational service. Utilizing our highly diversified business model, we aim to become
the pre-eminent force in our field and tout this goal as the fundamental underlying policy of ourfinancial success.
In the wake of the COVID-19 pandemic, during the first financial quarter of the 20/21 financial
year, we were forced to close all of our educational facilities in accordance with a governmentmandated State of Emergency. However, considering strongly the need to foster an environment
where students could continue their studies with peace of mind, we took measures unseen
amongst our competitors and introduced meticulous anti-infection routines and equipment,ensuring the safety of our students’ learning environment. After providing medical grade faceshields to our facilities, having received reports of concurrent shortages of critical equipment atmedical facilities, we also promptly provided face shields to critical areas in Tokyo and three of its
surrounding prefectures. While continuing our devotion to maintaining a safe environment for ourstudents to study with peace of mind, we will continue to aim for growth in all areas of our group.
For Q2 of FY20/21, our gross sales amounted to 11.109 billion Japanese yen (down 14.5% YoY),
operating loss totaled 460,000,000 Japanese yen (compared to an operating profit of 1.166 billion
Japanese yen for Q2 FY19/20), ordinary loss amounted to 416,000,000 Japanese yen (compared toan ordinary profit of 1,165,000,000 Japanese yen for Q2 FY19/20) and current net loss attributable
to shareholders of the parent company amounted to 468,000,000 Japanese yen (compared to aprofit of 727,000,000 Japanese yen for Q2 FY19/20). This is partially attributable to the fact that
our number of students fluctuates shortly after school entrance exams and high school
graduation; our first quarter of the financial year, which coincides with the start of the academic
year, is generally our least busy financial period. In quarters 2 and 4, the number of students
greatly increases with seasonal variance.
Business results of individual business segments are as follows. As of the fourth quarter of FY
19/20, following the merger of two subsidiary companies, the results of the “Student Recruitment

Business Unit” are now included under the results of the “Private Tuition School Education
Business Unit”. Figures given in comparison to results from the same period of the previous
financial year are compared against retroactively calculated financial results to reflect this.
① TOMAS (Private Tuition School Education Business Unit)
Despite continuing to provide stellar educational services with the aim of helping students to elite
education facilities through completely 1-on-1 private tuition, due to the temporary closure of allschools, gross sales amounted to 5,947,000,000 Japanese yen (6.3% down YoY), rising to
5,948,000,000 Japanese yen (8.1% down YoY) when taking internal net sales into account.
②Meimonkai (Home Dispatch Tutor Business Unit)

We are making steady progress in expanding our business unit dispatching 100% professional
individual tutors to all corners of the country, though due to the school closures enforced earlier
this year, gross sales amounted to 2,062,000,000 Japanese yen (10.5% down YoY).
③ Shingakai (Childcare and Education Business unit)
In addition to Shingakai boasting some of the best results in support for passing entrance exams toenter Japan’s top kindergartens and elementary schools, we are continuing to develop ourShinga’s Club brand, offering longtime childcare and schooling for exceptionally gifted children
hoping to pass rigorous school entrance exams. Following temporary school closures earlier thisyear, gross sales amounted to 2,326,000,000 Japanese yen (9.4% down YoY) and remained at thesame figure when taking into account internal net sales (10.3% down YoY). During the accounting
period for Q2 FY 20/21, Shinga’s Club Fujisawa (Kanagawa prefecture) was renovated and moved
to a different location.
④ School TOMAS (In-School Individual Tutoring Business Unit)
We are continuing our promotion and expansion of School TOMAS, our in-school individual
tutoring service. However, owing to the aforementioned school closures earlier this year, sales
amounted to 526,000,000 Japanese yen (22.9% down YoY), rising to 644,000,000 Japanese yen(down 19.7% YoY) when taking internal net sales into account.
⑤ Plus One Kyoiku (Social and Emotional Learning Camp Business Unit)
Plus One Kyoiku offers a wide variety of fulfilling, hands-on character building workshops,
however, in light of government requests to refrain from large gatherings in the wake of theCOVID-19 pandemic, gross sales amounted to 241,000,000 Japanese yen (down 77.6% YoY), rising
to 257,000,000 Japanese yen (down 76.4% YoY) when taking internal net sales into account.
During the accounting period for Q2 FY19/20, TOMAS Gymnastics School Futako-Tamagawa(Tokyo) was officially opened.

⑥ Additional Miscellaneous Business Units
Net sales accrued through additional business units totaled 5,000,000 Japanese yen (down 21.4%YoY), rising to 39,000,000 Japanese yen (down 0.6% YoY) when taking into account internal netsales.
During the accounting period for Q2 FY 20/21, “Cocokara Teachers Co., Ltd.”, an enterprisecombining the recruitment, management, training and introduction of potential private tutors,
was formally established.

(2) Regarding the Present Financial Situation
There was an increase in Accounts Payable, Sales Deposits and Retirement Allowances offset by areduction in Income Tax Payable and other current liabilities (Consumption Tax Payable, Deposits
Received), representing a reduction of 2,000,000 Japanese yen compared to the end of theprevious consolidated financial year, equal to 7,054,000,000 Japanese yen. Additionally, there wasan increase in capital surplus and a reduction in retained earnings, representing a decrease of660,000,000 Japanese yen compared to the end of the previous consolidated financial year for a
total of 5,496,000,000 Japanese yen.

(3) Cash Flows(Cash Flows from Operating Activities)
Net cash used in operating activities totaled 623,000,000 Japanese yen (compared to1,346,000,000 Japanese yen for the same period in FY19/20). This is mainly attributable to a pretax adjusted quarterly loss of 413,000,000 Japanese yen, a decrease in accrued consumption taxesof 334,000,000 Japanese yen, an increase in accounts payable of 160,000,000 Japanese yen, anincrease in advances received of 324,000,000 Japanese yen, and 437,000,000 Japanese yen of
corporate tax paid.
(Cash Flows from Investment Activities)
Net cash used in investment activities totaled 354,000,000 Japanese yen (compared to287,000,000 Japanese yen for the same period in FY19/20). This is mainly attributable to anexpenditure of 184,000,000 Japanese yen on acquisition of tangible fixed assets, an expenditure of36,000,000 Japanese yen on acquisition of intangible fixed assets, and payments of leasehold andguarantee deposits totaling 104,000,000 Japanese yen.
(Cash Flows from Financial Activities)
Net cash used in financial activities totaled 211,000,000 Japanese yen (compared to 958,000,000
Japanese yen for the same period in FY19/20). This is mainly attributable to proceeds from short-term borrowings of 4,000,000,000 Japanese yen, repayments of short-term borrowings totaling
4,000,000,000 Japanese yen, payment of dividends amounting to 445,000,000 Japanese yen,acquisition of treasury shares totaling 735,000,000 Japanese yen, and proceeds from disposal oftreasury shares amounting to 969,000,000 Japanese yen.

(4) Regarding Future Forecasting Information for Upcoming Consolidated Business Results
As the relative cost of sanitizing spray and masks used in measures to prevent the spread of theCOVID-19 virus has settled in the past few months, utilizing the information currently available touse we have adjusted our forecasted figures for operating profit, ordinary profit, and net income
attributable to owners of the parent company. For further details, please refer to “AnnouncementRegarding Forecasted Results for FY20/21” (2021 年２月期 業績予想に関するお知らせ) and“Announcement Regarding Dividend Payout for FY20/21” (2021 年２月期 配当予想に 関するお知らせ).