Earnings Pressure from Higher Personnel and Recruitment Costs

「In terms of expenses, costs increased due to higher personnel expenses associated with improving employee compensation, higher advertising expenses from actively conducting WEB advertising and other activities for student recruitment, and higher rent associated with opening new classrooms in the Kanto region, among other factors. As a result, revenue was ¥15,050.165 million, up 6.2% year on year, and the increase in expenses was absorbed by revenue growth, resulting in segment profit (operating profit) of ¥1,005.859 million, up 24.1% year on year.」

「In terms of expenses, segment expenses increased due to higher personnel expenses associated with improving employee compensation and the increase in staff, and higher advertising expenses because the timing of student recruitment advertising was brought forward from the previous year, among other factors. As a result, revenue was ¥7,015.567 million, up 8.1% year on year, and the increase in expenses was absorbed by revenue growth, resulting in segment profit (operating profit) of ¥185.083 million, up 30.5% year on year.」

「In terms of expenses, costs increased due to higher personnel expenses from improving employee compensation and the increase in the number of students, higher advertising expenses from actively conducting WEB advertising and other activities for student recruitment, higher rent associated with opening new classrooms and expanding existing classrooms, and costs related to making 株式会社一会塾 a consolidated subsidiary, among other factors. As a result, revenue was ¥14,177.918 million, up 9.1% year on year, and the increase in expenses was absorbed by revenue growth, resulting in segment profit (operating profit) of ¥810.629 million, up 9.0% year on year.」

「In terms of expenses, segment expenses increased due to higher personnel expenses associated with improving employee compensation, higher advertising expenses from actively conducting WEB advertising and other activities to strengthen student recruitment, and costs associated with making 株式会社一会塾 a consolidated subsidiary, among other factors. As a result, revenue was ¥6,488.001 million, up 8.4% year on year, and the increase in expenses was absorbed by revenue growth, resulting in segment profit (operating profit) of ¥141.779 million, up 11.0% year on year.」

「This was mainly because personnel expenses increased by ¥227.390 million, or 3.5%, from the previous consolidated fiscal year to ¥6,702.509 million as a result of salary revisions and other measures to improve employee compensation.」

「In terms of expenses, segment expenses in the cram-school division increased due to higher salaries and allowances accompanying increases in the number of students and courses, higher recruitment advertising costs associated with strengthened hiring for winter courses, and higher supplies expenses resulting from the replacement of office computers, among other factors. As a result, revenue was ¥5,983.878 million, up 3.8% year on year, and although expenses increased, the increase was absorbed by revenue growth, resulting in segment profit (operating profit) of ¥127.719 million, up 44.3% year on year.」

「In addition, costs increased due to higher personnel expenses and other costs accompanying the increase in the number of students, higher recruitment advertising costs associated with stepped-up hiring, and higher supplies expenses resulting from the replacement of office computers, among other factors. As a result, revenue was ¥2,339.943 million, up 3.4% year on year, and the segment loss (operating loss) was ¥434.869 million, compared with a segment loss (operating loss) of ¥439.831 million in the same period of the previous year.」

「In addition, costs increased due to higher personnel expenses resulting from salary revisions and other measures to improve employee compensation, higher advertising expenses from actively conducting WEB advertising and other activities for student recruitment, higher fees paid for the use and maintenance of various systems, and higher utilities expenses due to surging electricity charges, among other factors. As a result, revenue was ¥12,581.716 million, up 2.7% year on year, and the increase in expenses was absorbed by revenue growth, resulting in segment profit (operating profit) of ¥754.639 million, up 10.5% year on year.」

「Although segment costs increased due to higher personnel expenses following salary revisions to improve employee compensation, active advertising to strengthen student recruitment, and higher utilities expenses resulting from surging electricity prices, among other factors, the Company worked to reduce other expenses and operate the business efficiently.」

「In addition, segment expenses increased because the company actively conducted advertising to strengthen student recruitment in the cram-school division, while utilities expenses rose due to higher electricity charges and other factors.」

「Although advertising expenses increased because the company stepped up WEB advertising and direct-mail distribution, costs declined due to lower personnel expenses and other costs accompanying the decrease in revenue.」

「Although segment expenses increased with higher revenue, the company operated efficiently by reducing recruitment advertising costs against the backdrop of favourable recruitment conditions and cutting other expenses. As a result, segment revenue was ¥9,215.417 million, up 8.9% year on year, and segment profit (operating profit) was ¥676.176 million, up 980.0% year on year, representing a significant improvement in the profit level.」

「In terms of costs, the segment cost-to-revenue ratio improved significantly due to a decrease in recruitment advertising expenses resulting from strong recruitment of university-student instructors, restrained growth in personnel expenses from improved instruction ratios in one-to-one instruction, and lower-than-usual travel and event expenses due to the impact of COVID-19.」

「In addition, costs increased from the same period of the previous year due to higher purchases of teaching materials and other items resulting from the increase in new enrolments, higher salaries and allowances accompanying the increase in the number of classes, and higher advertising expenses resulting from intensified advertising for student recruitment for new classrooms and summer courses, among other factors.」

「In terms of expenses, costs declined due to the cancellation of training camps and events, the discontinuation of business trips, lower purchases of teaching materials and other items accompanying the decrease in the number of students, and lower advertising expenses, among other factors.」

「On the other hand, costs declined due to lower purchases of teaching materials and other items resulting from the decrease in the number of students, the suspension of business trips and cancellation of summer training camps, and lower advertising expenses, among other factors.」

「On the other hand, costs declined from the same period of the previous year because various costs fell as a result of lower purchases of teaching materials and other items due to the decline in new enrolments, the cancellation of training camps and events, and the suspension of student recruitment activities, among other factors. The burden of one-off costs incurred in the previous period to reduce electricity charges at classrooms also ended.」

「This was mainly because personnel expenses, including salaries, rose by ¥227.670 million, or 3.8%, from the previous consolidated fiscal year to ¥6,245.558 million as the business expanded; rent paid rose by ¥35.028 million, or 2.3%, to ¥1,563.465 million; and fees paid rose by ¥32.039 million, or 21.3%, from the previous consolidated fiscal year to ¥182.367 million, mainly due to the introduction of educational content.」

「In terms of expenses, segment profit (operating profit) was ¥501.299 million, down 22.3% year on year, due to higher personnel expenses associated with business expansion and higher costs from increased advertising for student recruitment, among other factors.」

「The increase in the number of group members and higher fees per student resulted in segment revenue of ¥5,578.461 million, up 4.4% year on year. In terms of earnings, the segment loss (operating loss) was ¥194.962 million, compared with a segment loss (operating loss) of ¥82.622 million in the same period of the previous year, due to higher personnel expenses associated with business expansion, higher costs from increased advertising for student recruitment, temporary costs incurred under a project to reduce rent and electricity charges, and higher costs related to launching operations in South Korea.」

「As a result, revenue was ¥2,181.582 million, up 5.5% year on year, but the segment loss (operating loss) was ¥592.547 million, compared with a segment loss (operating loss) of ¥519.926 million in the same period of the previous year, due to higher personnel expenses for nursery teachers and other staff, higher recruitment costs to secure nursery teachers, and the recognition of one-off costs to reduce electricity charges at classrooms, among other factors.」

「The increase in these costs was absorbed by revenue growth, resulting in segment profit (operating profit) of ¥429.421 million, up 741.1% year on year.」

「In terms of expenses, the personnel expense ratio improved and the burden of upfront investment, including capital investment, was reduced because fewer new childcare facilities were opened. As a result, segment profit (operating profit) was ¥645.411 million, up 79.7% year on year.」

「Segment revenue was ¥5,342.566 million, up 7.2% year on year, due to increases in the number of group-enrolled students and franchise classrooms. In terms of earnings, the segment loss (operating loss) improved significantly to ¥82.622 million, compared with a segment loss (operating loss) of ¥304.797 million in the same period of the previous year, as the burden of upfront investment related to opening childcare facilities was eliminated, the personnel expense ratio improved, and capital investment expenses declined because fewer classrooms were newly opened or scheduled to open than in the previous fiscal year.」

「As the burden of upfront investments, including the opening of licensed childcare centers and the launch of new brands, decreased from the same period of the previous year, segment loss (operating loss) was ¥519.926 million, compared with a segment loss (operating loss) of ¥614.216 million in the same period of the previous year.」

「This was primarily due to personnel expenses, including salaries, increasing by ¥134.048 million, or 2.4%, year on year to ¥5.828212 billion as a result of efforts to retain talented employees; supplies expenses increasing by ¥117.492 million, or 142.8%, year on year to ¥199.777 million due to the opening of new licensed childcare centers and other factors; and rent paid increasing by ¥75.532 million, or 5.4%, year on year to ¥1.481061 billion due to the increase in classrooms and other facilities.」

「Expenses increased mainly because personnel expenses and capital investment and other costs were incurred ahead of the launch of the new brand, and because the Company conducted proactive advertising and promotional activities. As a result, segment profit (operating profit) was ¥359.235 million, down 28.7% year on year.」

「Meanwhile, higher personnel expenses associated with business expansion, higher expenses from active advertising and promotional activities, supplies and other costs associated with the opening of Kaisei Nursery School, and upfront investment in Kaisei English Academy, an English-language school for Japanese students opened in the Philippines in July, resulted in a segment loss (operating loss) of ¥304.797 million, compared with a segment loss (operating loss) of ¥178.591 million in the same period of the previous year.」

「As a result, revenue was ¥1,904.779 million, up 2.0% year on year. However, expenses increased mainly because of higher personnel expenses associated with opening childcare facilities and capital investment, resulting in a segment loss (operating loss) of ¥614.216 million, compared with a segment loss (operating loss) of ¥519.543 million in the same period of the previous year.」

「This was primarily due to personnel expenses, including salaries, increasing by ¥244.099 million, or 4.5%, year on year to ¥5.694164 billion as a result of efforts to retain talented employees, and recruitment advertising expenses increasing by ¥29.308 million, or 21.2%, year on year to ¥167.841 million due to higher recruitment costs.」

「Expenses increased due to higher personnel costs accompanying business expansion, higher recruitment costs resulting from improvements in the employment environment, and upfront investment to prepare for the opening in April 2017 of Kaisei Academy Japanese Language School and the authorised childcare centre Kaisei Nursery School. Segment profit (operating profit) was ¥503.626 million, down 19.3% year on year.」

「Meanwhile, higher personnel expenses in preparation for existing operations and future business expansion, higher recruitment advertising expenses, and an increase in the number of classrooms opened for summer courses led to higher classroom-opening costs. Segment loss (operating loss) was ¥178.591 million, compared with a segment loss (operating loss) of ¥11.486 million in the same period of the previous year.」

「As a result, revenue was ¥1.868257 billion, up 0.8% year on year, but segment loss (operating loss) was ¥519.543 million, compared with a segment loss (operating loss) of ¥391.939 million in the same period of the previous year, due to higher personnel expenses in preparation for existing operations and future business expansion, higher advertising and promotional expenses from active public-relations activities, and higher recruitment advertising expenses.」

「Costs increased due to higher personnel expenses, including efforts to retain talented employees, higher advertising and promotional expenses to recruit students for the cram schools, and higher recruitment costs resulting from improvements in the employment environment. Segment profit (operating profit) was ¥870.918 million, down 3.5% year on year.」