Meiko Network Japan : Summary of Financial Results for the second quarter 2022

Summary of Consolidated Financial Results for the Six Months Ended February 28, 2022

(Japanese GAAP)

Company name: Listing:MEIKO NETWORK JAPAN CO., LTD. Tokyo

April 13, 2022

Securities code:
Representative:	Kazuhito Yamashita, President & Representative Director
Inquiries:	Kouyuki Sakamoto, Executive Officer, General Manager of Corporate Planning Department
Telephone:	[phone]

（URL：https://www.meikonet.co.jp）

4668

Scheduled date to file quarterly securities report: Scheduled date to commencement dividend payment:April 14, 2022

May 9, 2022

Preparation of supplementary material on quarterly financial results: AvailableHolding of quarterly financial results briefing:

Scheduled (for analysts and institutional investors)

(Amounts are rounded down to the nearest million yen.)

1. Consolidated financial results for the Six months ended February 28, 2022 (from September 1, 2021 to February 28, 2022)

(1) Consolidated operating results (cumulative)

Net sales

Operating profit

Six months ended	Millions of yen	%	%	%
February 28, 2022	9,927	1.9	1,326	30.6	84.2
February 28, 2021

% Millions of yen

9,744 (6.5)

930 (27.4)

(Note) Comprehensive income: Six months ended February 28, 2022:

Six months ended February 28, 2021:

(% indicates changes from the previous corresponding period.)

¥1,285 million [83.5 %] ¥700 million [(36.0) %]

Basic earnings per share	Diluted earnings per share
Six months ended	Yen	Yen
February 28, 2022	48.94	－
February 28, 2021	26.57	－

Ordinary profit

1,016 (26.6)

(2) Consolidated financial position

Total assets	Net assets	Equity-to-asset ratio
As of	Millions of yen	Millions of yen	%
February 28, 2022	15,750	11,045	70.1
August 31, 2021	14,649	10,025	68.4

(Reference)

Profit attributable to owners of parent

666 (15.8)

Equity: As of February 28, 2022:

2. Cash Dividends

As of August 31, 2021:

¥11,045 million ¥10,025 million

Annual dividends per share
First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
Yen	Yen	Yen	Yen	Yen
Fiscal year ended August 31, 2021	－	10.00	－	10.00	20.00
Fiscal year ending August 31, 2022	－	11.00
Fiscal year ending August 31, 2022 (Forecast)	－	11.00	22.00

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

None

3. Consolidated Financial Results Forecast for Fiscal Year Ending August 31, 2022 (from September 1, 2021 to August 31, 2022)

(% indicates year-on-year changes)

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent	Basic earnings per share
Millions of yen	％	Millions of yen	％	Millions of yen	％	Millions of yen	％	yen
Full-year	19,800	4.0	1,040	7.3	1,114	0.0	1,025	(10.1)	40.86

None

(Note) Revision to the financial results forecast announced most recently:

*Notes:

(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in the 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: Yes

2)	Changes in accounting policies due to other reasons:	None
3)	Changes in accounting estimates:	None
4)	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 February 28, 2022	27,803,600 shares
  As of August 31, 2021	27,803,600 shares

• (ii) Number of treasury shares at the end of the period

  As of February 28, 2022	2,720,058 shares
  As of August 31, 2021	2,720,058 shares

• (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Six months ended February 28, 2022	25,083,542 shares
Six months ended February 28, 2021	25,083,599 shares

* 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.

（Reference）Trend of numbers of Meiko Gijuku schools and registered students and system-wide sales

Term	Six months ended February 28, 2021	Six months ended February 28, 2022
Fiscal Period	From Sep. 1, 2020 to Feb. 28, 2021	From Sep. 1, 2021 to Feb. 28, 2022
Operating results	YOY comparison	Operating results	YOY comparison
Number of Meiko Gijuku directly operated schools Number of Meiko Gijuku directly operated schools (MAXIS) Number of Meiko Gijuku directly operated schools (KLINE) Number of Meiko Gijuku directly operated schools (TOMONI)*1 Number of Meiko Gijuku directly operated schools (One link) Number of Meiko Gijuku directly operated schools (Cooth) *2 Number of Meiko Gijuku directly operated schools Number of Meiko Gijuku franchised schools	208 93 41 42 21 - 405 1,404	(15) (1) (2) (1) +21 - +2 (125)	214 95 41 42 21 15 428 1,350	+6 +2 - - - +15 +23 (54)
Total number of Meiko Gijuku schools	1,809	(123)	1,778	(31)
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)*1 Number of registered students of Meiko Gijuku directly operated schools (One link) umber of registered students of Meiko Gijuku directly operated schools (Cooth) *2	14,315 6,824 2,694 2,159 832 -	(755) (254) +96 (69) +832 -	14,817 6,744 2,736 2,168 899 1,077	+502 (80) +42 +9 +67 +1,077
Number of registered students of Meiko Gijuku directly operated schools Number of registered students of Meiko Gijuku franchised Schools	26,824 75,935	(150) (9,155)	28,441 71,241	+1,617 (4,694)
Total number of registered students of Meiko Gijuku schools	102,759	(9,305)	99,682	(3,077)
Sales from Meiko Gijuku directly operated schools (Millions of yen) Sales from Meiko Gijuku franchised schools *3 (Millions of yen) Sales from Japanese language schools (Millions of yen) Sales from others (Millions of yen)	5,877 2,159 475 1,231	+198 (233) (264) (378)	6,134 2,281 330 1,180	+257 +121 (144) (51)
Total Sales (Millions of yen)	9,744	(677)	9,927	+182
Sales from Meiko Gijuku directly operated schools (Millions of yen) System-wide sales from Meiko Gijuku franchised schools (Millions of yen)	5,877 13,424	+198 (1,525)	6,134 12,793	+257 (630)
Total system-wide sales from Meiko Gijuku schools *4 (Millions of yen )	19,302	(1,326)	18,928	(373)

*	1	K.M.G Corporation Co., Ltd has changed its name to TOMONI Co., Ltd. as of September 1, 2021.
2	Cooth CO., LTD. was included in the scope of consolidation on December 1, 2021 due to the acquisition of shares.
3	Sales from Meiko Gijuku franchised schools represent royalty revenues and sales of products.
4	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, 2021	As of February 28, 2022
Assets
Current assets
Cash and deposits	8,727	9,660
Accounts receivable - trade	767	－
Accounts receivable and contract assets	－	728
Securities	200	－
Merchandise	114	106
Work in process	13	7
Supplies	7	13
Advance payments to suppliers	19	5
Prepaid expenses	303	280
Other	322	387
Allowance for doubtful accounts	(33)	(31)
Total current assets	10,441	11,158
Non-current assets
Property, plant and equipment
Buildings and structures	1,145	1,308
Accumulated depreciation	(676)	(755)
Buildings and structures, net	469	552
Tools, furniture and fixtures	375	390
Accumulated depreciation	(322)	(332)
Tools, furniture and fixtures, net	52	57
Land	0	49
Leased assets	10	35
Accumulated depreciation	(1)	(21)
Leased assets, net	8	14
Total property, plant and equipment	531	674
Intangible assets
Goodwill	203	188
Software	190	140
Software in progress	4	31
Telephone subscription right	4	4
Total intangible assets	402	364
Investments and other assets
Investment securities	2,022	2,249
Long-term prepaid expenses	42	38
Deferred tax assets	226	190
Leasehold and guarantee deposits	942	934
Long-term time deposits	－	100
Other	40	40
Total investments and other assets	3,274	3,553
Total non-current assets	4,207	4,591
Total assets	14,649	15,750

(Millions of yen)

As of August 31, 2021	As of February 28, 2022
Liabilities
Current liabilities
Accounts payable - trade	119	214
Accounts payable - other	102	184
Accrued expenses	1,139	924
Income taxes payable	427	717
Accrued consumption taxes	331	457
Advances received	1,242	－
Contract liabilities	－	852
Lease obligations	1	1
Deposits received	54	152
Provision for bonuses	404	367
Other	51	19
Total current liabilities	3,876	3,891
Non-current liabilities
Long-term borrowings	－	56
Retirement benefit liability	111	116
Provision for share awards for directors (and other officers)	11	19
Provision for share awards	34	34
Long-term accounts payable-other to employees	104	90
Long-term accounts payable-other to officers	117	117
Deferred tax liabilities	18	10
Lease obligations	7	13
Asset retirement obligations	339	351
Long-term guarantee deposits	1	1
Total non-current liabilities	747	812
Total liabilities	4,624	4,704
Net assets
Shareholders' equity
Share capital	972	972
Capital surplus	909	909
Retained earnings	10,529	11,491
Treasury shares	(2,779)	(2,779)
Total shareholders' equity	9,632	10,594
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	377	436
Foreign currency translation adjustment	15	14
Total accumulated other comprehensive income	392	450
Total net assets	10,025	11,045
Total liabilities and net assets	14,649	15,750