Financial Results

For the Second Quarter of the Fiscal Year 2015 ending January 31, 2015
September 12, 2014
Balance Sheets

Thousands of Yen
31st Jul., 2014
31st Jan., 2014

AssetsCurrent assets:
Cash & Cash equivalents
Accounts receivable
Advance Payments
Prepaid expenses
Deferred tax assets
Other
Total current assets
Noncurrent assets:
Tangible fixed assets
Buildings (net)
Tools, furniture and fixture (net)Total tangible fixed assets
Intangible fixed assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Stocks of subsidiaries and affiliates
Leasehold and guarantee deposits
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities:
Accounts payable
Accrued expenses
Income tax payable
Accrued consumption taxes
Deposits received
Provision for point card certificates
Other
Total current liabilities
Noncurrent liabilities:
Long-term accounts payable
Deferred tax liabilities
Total noncurrent liabilities
Total liabilities

1

2,712,445
52,11462,806
6,548
18,958412,852,915

2,519,028
53,597

17,806
7,563
25,36918,512
6,752
25,265

4,812
18
4,831

5,964
18
5,983

265,515
123,097
24,835
413,448443,649
3,296,565

181,615
123,097
24,835329,548360,797
2,966,529

35,841
5,209
217,177
32,774
717,232
1,976
544
1,010,757

33,3105,534
294,130
28,556705,341
3,918
1,070,791

2,059
2,059
1,012,816

43
1,913
1,956
1,072,748

7,372
25,579153
2,605,731

Thousands of Yen
31st Jul., 2014
31st Jan., 2014
Net assets
Shareholders' equity:
Capital stock
Capital surplus
Retained earnings
Total shareholders' equityValuation and translation adjustments:
Valuation difference on available-for-sale securities
Total Valuation and translation adjustments
Subscription rights to shares
Total net assets
Total liabilities and net assets

2

381,504
391,075
1,504,317
2,276,896

363,154372,725
1,153,202
1,889,081

6,592
6,592
258
2,283,748
3,296,565

4,440
4,440
258
1,893,781
2,966,529

Statements of Income

Thousands of Yen
Feb.- Jul. 2014
Feb.- Jul. 2013

Revenue
Cost of revenue
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating revenues:
Interest income
Foreign exchange gains
Lecture and manuscript fee
OtherTotal non-operating revenues
Non-operating expenses:
Foreign exchange losses
Total non-operating expenses
Ordinary profit
Extraordinary losses:
Impairment losses
Head office transfer costs
Other
Total extraordinary losses
Net profit before taxes
Income tax, inhabitants tax and enterprise tax
Income tax adjustments
Total corporate taxes
Net profit

3

1,103,688
195,225
908,462
339,628
568,834

806,307
165,480
640,826
291,236
349,590

858
120
20999

958
675
105
139
1,879110
110
569,723

351,469

569,723
213,298
5,309
218,608
351,115

3,947
2,100
8
6,056
345,413
136,682(3,864)
132,817
212,595

Statements of Cash Flows

Thousands of Yen
Feb.- Jul. 2014

Cash flows from operating activities:
Net profit before taxes
Depreciation and amortization
Impairment losses
Increase (decrease) in provision for point card certificates
Increase (decrease) in provision for loss on transfer
Interest and dividend income
Loss on disposal of fixed assets
Head office transfer costs
Decrease (increase) in advanced payamnts
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued payments
Increase (decrease) in deposits received
Increase (decrease) in consumption tax payable
Decrease (increase) in other current assets
Increase (decrease) in other current liabilities
OtherSub total
Interest and dividends received
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Payments for leasehold and guarantee deposits
Proceeds from collection of leasehold and guarantee deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Repayments of installment payables
Proceeds from issuance of common stock
Proceeds from issuance of subscription rights to shares
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash flows
Cashfromand financingcash equivalents
activities
at the end of the period

4Feb.- Jul. 2013

569,723
4,991(1,941)
(858)
1
1,482
(62,086)
3,925
11,891
4,218
935
234
531,797858(290,266)
242,389

345,413
4,572(1,928)2,100(958)(1,159)
3,947
8
6,358
6,379
(293,875)(17,305)
720
5,729
(139)
59,863958(106,558)(45,736)(600,000)
500,000(2,600)(1,343)(80,290)(184,233)(300,000)
600,000(1,623)(114,575)(16,011)46
167,836(1,437)36,70035,262(1)
93,4172,019,028
2,112,445(1,437)51,362267
50,192
1,159
173,451
1,592,244
1,765,695