Business Expansion and Improved Profitability

「当第１四半期連結累計期間における売上高は2,992,813千円（前年同期比7.0％増）、営業損失521,939千円（前年同期は営業損失554,105千円）、経常損失は522,896千円（前年同期は経常損失559,922千円）、親会社株主に帰属する四半期純損失は340,496千円（前年同期は親会社株主に帰属する四半期純損失387,703千円）となりました。」

「Revenue was ¥15,156,867 thousand, up 6.1% year on year, operating income was ¥978,869 thousand, up 25.8%, ordinary income was ¥965,205 thousand, up 27.2%, and net income attributable to owners of the parent was ¥583,806 thousand, up 26.5%.」

「Revenue for the six months ended the interim period was ¥7,066,947 thousand, up 8.1% year on year, operating income was ¥167,522 thousand, up 41.8%, and ordinary income was ¥159,900 thousand, up 47.3%. Interim net income attributable to owners of the parent was ¥72,632 thousand, down 2.3%, due to the recognition of an impairment loss of ¥26,417 thousand as an extraordinary loss.」

「Revenue was ¥14,287,096 thousand, up 9.0% year on year, operating income was ¥778,287 thousand, up 10.7%, ordinary income was ¥758,557 thousand, up 6.7%, and net income attributable to owners of the parent was ¥461,479 thousand, up 6.4%.」

「Revenue for the six months ended the interim period was ¥6,539,821 thousand, up 8.4% year on year, operating income was ¥118,162 thousand, up 20.1%, ordinary income was ¥108,527 thousand, up 10.0%, and interim net income attributable to owners of the parent was ¥74,322 thousand, up 76.5%. Mainly due to strong performance in the education-related business, revenue for the interim period reached a record high.」

「Revenue was ¥13,102,403 thousand, up 3.4% year on year, operating income was ¥702,950 thousand, down 1.3%, ordinary income was ¥711,125 thousand, down 2.3%, and net income attributable to owners of the parent was ¥433,809 thousand, up 2.9%.」

「Revenue for the six months ended the second quarter was ¥6,032,189 thousand, up 3.9% year on year, operating income was ¥98,379 thousand, up 61.7%, and ordinary income was ¥98,655 thousand, up 73.3%. Quarterly net income attributable to owners of the parent was ¥42,110 thousand, down 9.3%, due to the reversal of the valuation allowance against deferred tax assets recognized in the same period of the previous year. Mainly due to strong performance in the education-related business, revenue for the six months ended the second quarter reached a record high.」

「Revenue for the three months ended the first quarter was ¥2,365,179 thousand, up 3.5% year on year. Operating loss was ¥446,223 thousand, compared with an operating loss of ¥453,002 thousand in the same period of the previous year, and ordinary loss was ¥443,148 thousand, compared with an ordinary loss of ¥447,418 thousand. Quarterly net loss attributable to owners of the parent was ¥311,123 thousand, compared with a quarterly net loss attributable to owners of the parent of ¥305,868 thousand, due to the recognition of adjustments to corporate income taxes and other factors.」

「Revenue was ¥12,671,448 thousand, up 2.7% year on year, operating income was ¥712,172 thousand, up 11.2%, ordinary income was ¥727,777 thousand, up 11.0%, and net income attributable to owners of the parent was ¥421,500 thousand, up 27.1%.」

「Revenue for the nine months ended the third quarter was ¥9,387,446 thousand, up 1.2% year on year, and operating income was ¥662,894 thousand, up 3.2%. Although the company faced the reversal of penalty income and subsidy income recognized in the previous fiscal year, ordinary income was ¥667,009 thousand, up 0.2%, and quarterly net income attributable to owners of the parent was ¥416,190 thousand, up 3.7%, due to a lower corporate tax burden.」

「Revenue for the six months ended the second quarter was ¥5,806,320 thousand, up 0.7% year on year. Operating income was ¥60,842 thousand, down 37.1%, ordinary income was ¥56,912 thousand, down 51.9%, and quarterly net income attributable to owners of the parent was ¥46,419 thousand, down 39.4%.」

「Under these circumstances, revenue for the three months ended the first quarter was ¥2,284,579 thousand, down 0.5% year on year, and operating loss was ¥453,002 thousand, compared with an operating loss of ¥445,868 thousand in the same period of the previous year. Due to the reversal of penalty income and subsidy income recognized in the previous fiscal year, ordinary loss was ¥447,418 thousand, compared with an ordinary loss of ¥424,061 thousand. Quarterly net loss attributable to owners of the parent was ¥305,868 thousand, compared with a quarterly net loss attributable to owners of the parent of ¥291,139 thousand, due to the recognition of adjustments to corporate income taxes and other factors.」

「Under these circumstances, revenue for the nine months ended the third quarter was ¥9,276,358 thousand, up 8.6% year on year. Operating income was ¥642,279 thousand, compared with operating income of ¥22,005 thousand in the same period of the previous year, ordinary income was ¥665,362 thousand, compared with ordinary income of ¥17,534 thousand, and quarterly net income attributable to owners of the parent was ¥401,246 thousand, compared with a quarterly net loss attributable to owners of the parent of ¥77,709 thousand.」

「Revenue for the six months ended the second quarter was ¥5,764,341 thousand, up 10.8% year on year. Operating income was ¥96,764 thousand, compared with an operating loss of ¥372,473 thousand in the same period of the previous year, ordinary income was ¥118,345 thousand, compared with an ordinary loss of ¥374,334 thousand, and quarterly net income attributable to owners of the parent was ¥76,653 thousand, compared with a quarterly net loss attributable to owners of the parent of ¥309,282 thousand. Mainly due to strong performance in the education-related business, the company reported operating income for the six months ended the second quarter for the first time in 7 years, since the fiscal year ended March 2015.」

「Under these circumstances, revenue for the three months ended the first quarter was ¥2,296,925 thousand, up 13.2% year on year. Operating loss was ¥445,868 thousand, compared with an operating loss of ¥613,133 thousand in the same period of the previous year, and ordinary loss was ¥424,061 thousand, compared with an ordinary loss of ¥612,827 thousand. Quarterly net loss attributable to owners of the parent was ¥291,139 thousand, compared with a quarterly net loss attributable to owners of the parent of ¥448,806 thousand, due to the recognition of gains on sales of investment securities held for policy purposes, gains on business transfers arising from the conversion of directly operated classrooms into franchises, and other extraordinary gains, as well as the recognition of adjustments to corporate income taxes.」

「Revenue for the fiscal year was ¥11,641,859 thousand, down 4.7% year on year. Operating income was ¥25,363 thousand, down 90.7%, ordinary income was ¥48,331 thousand, down 80.8%, and net loss attributable to owners of the parent was ¥106,567 thousand, compared with net income attributable to owners of the parent of ¥33,412 thousand in the same period of the previous year.」

「Under these circumstances, due to the spread of COVID-19, revenue for the nine months ended the third quarter was ¥8,541,002 thousand, down 8.9% year on year, operating income was ¥22,005 thousand, down 95.3%, and ordinary income was ¥17,534 thousand, down 96.1%.」

「Revenue for the six months ended the second quarter was ¥5,202,580 thousand, down 7.9% year on year. Operating loss was ¥372,473 thousand, compared with an operating loss of ¥226,619 thousand in the same period of the previous year, ordinary loss was ¥374,334 thousand, compared with an ordinary loss of ¥245,437 thousand, and quarterly net loss attributable to owners of the parent was ¥309,282 thousand, compared with a quarterly net loss attributable to owners of the parent of ¥215,083 thousand.」

「Under these circumstances, revenue for the three months ended the first quarter was ¥2,029,184 thousand, down 8.5% year on year, and operating loss was ¥613,133 thousand, compared with an operating loss of ¥608,200 thousand in the same period of the previous year. Ordinary loss was ¥612,827 thousand, compared with an ordinary loss of ¥615,911 thousand, due to the recognition of foreign exchange gains. Quarterly net loss attributable to owners of the parent was ¥448,806 thousand, compared with a quarterly net loss attributable to owners of the parent of ¥453,034 thousand, due to a lower impairment loss burden.」

「Revenue for the fiscal year was ¥12,220,134 thousand, up 2.8% year on year. However, due to higher personnel, advertising and other expenses, operating income was ¥272,449 thousand, down 29.1%, and ordinary income was ¥251,366 thousand, down 63.0%. Net income attributable to owners of the parent was ¥33,412 thousand, down 91.6%, due to higher impairment losses.」

「Under these circumstances, revenue for the nine months ended the third quarter was ¥9,374,419 thousand, up 3.2% year on year, while operating income was ¥469,369 thousand, down 22.9%. As there were no significant non-operating or extraordinary gains or losses, ordinary income was ¥449,623 thousand, down 50.4%, and quarterly net income attributable to owners of the parent was ¥220,390 thousand, down 61.1%.」

「Revenue for the six months ended the second quarter was ¥5,645,865 thousand, up 4.4% year on year. Operating loss was ¥226,619 thousand, compared with an operating loss of ¥114,133 thousand in the same period of the previous year, ordinary loss was ¥245,437 thousand, compared with ordinary income of ¥65,037 thousand, and quarterly net loss attributable to owners of the parent was ¥215,083 thousand, compared with quarterly net income attributable to owners of the parent of ¥31,244 thousand.」

「Revenue for the three months ended the first quarter was ¥2,216,662 thousand, up 5.4% year on year. Operating loss was ¥608,200 thousand, compared with an operating loss of ¥531,020 thousand in the same period of the previous year, ordinary loss was ¥615,911 thousand, compared with an ordinary loss of ¥506,897 thousand, and quarterly net loss attributable to owners of the parent was ¥453,034 thousand, compared with a quarterly net loss attributable to owners of the parent of ¥357,689 thousand.」

「Revenue for the fiscal year was ¥11,890,709 thousand, up 5.8% year on year. Operating income was ¥384,160 thousand, compared with operating income of ¥20,550 thousand in the same period of the previous year, ordinary income was ¥679,748 thousand, up 114.3%, and net income attributable to owners of the parent was ¥396,730 thousand, up 288.2%.」

「Revenue for the nine months ended the third quarter was ¥9,083,698 thousand, up 6.0% year on year. Operating income was ¥608,449 thousand, up 82.1%, ordinary income was ¥907,384 thousand, up 41.7%, and quarterly net income attributable to owners of the parent was ¥566,868 thousand, up 48.9%.」

「Revenue for the six months ended the second quarter was ¥5,407,881 thousand, up 7.0% year on year. Operating loss was ¥114,133 thousand, compared with an operating loss of ¥323,725 thousand in the same period of the previous year. Ordinary income was ¥65,037 thousand, compared with an ordinary loss of ¥18,816 thousand, and quarterly net income attributable to owners of the parent was ¥31,244 thousand, compared with a quarterly net loss attributable to owners of the parent of ¥33,273 thousand.」

「Revenue for the three months ended the first quarter was ¥2,102,544 thousand, up 8.2% year on year. Operating loss was ¥531,020 thousand, compared with an operating loss of ¥621,694 thousand in the same period of the previous year, ordinary loss was ¥506,897 thousand, compared with an ordinary loss of ¥625,899 thousand, and quarterly net loss attributable to owners of the parent was ¥357,689 thousand, compared with a quarterly net loss attributable to owners of the parent of ¥446,239 thousand.」

「Revenue for the fiscal year was ¥11,243,646 thousand, up 3.3% year on year, while operating income was ¥20,550 thousand, down 90.1%. Ordinary income was ¥317,124 thousand, up 18.6%, and net income attributable to owners of the parent was ¥102,191 thousand, down 22.8%.」

「Under these circumstances, revenue for the nine months ended the third quarter was ¥8,565,668 thousand, up 3.0% year on year. However, the increase in expenses could not be absorbed by revenue growth, resulting in operating income of ¥334,137 thousand, down 32.5% year on year. Ordinary income was ¥640,206 thousand, up 21.3%, and quarterly net income attributable to owners of the parent was ¥380,590 thousand, up 6.3%, due to the recognition of subsidy income as non-operating income in connection with the authorized nursery facility scheduled to open next spring.」

「Under these circumstances, revenue for the six months ended the second quarter was ¥5,052,959 thousand, up 2.6% year on year. However, operating loss was ¥323,725 thousand, compared with an operating loss of ¥191,362 thousand in the same period of the previous year, due to higher expenses, including personnel costs, and expenses related to new businesses. Ordinary loss was ¥18,816 thousand, compared with an ordinary loss of ¥201,966 thousand, due to the recognition of subsidy income as non-operating income in connection with the authorized nursery school scheduled to open next spring. Quarterly net loss attributable to owners of the parent was ¥33,273 thousand, compared with a quarterly net loss attributable to owners of the parent of ¥130,902 thousand.」

「Under these circumstances, revenue for the three months ended the first quarter was ¥1,942,997 thousand, up 1.6% year on year. Operating loss was ¥621,694 thousand, compared with an operating loss of ¥527,297 thousand in the same period of the previous year, ordinary loss was ¥625,899 thousand, compared with an ordinary loss of ¥532,542 thousand, and the quarterly net loss attributable to owners of the parent was ¥446,239 thousand, compared with a quarterly net loss attributable to owners of the parent of ¥372,148 thousand.」

「Revenue for the fiscal year was ¥10,888,371 thousand, up 2.0% year on year, while operating income was ¥206,900 thousand, down 48.4%. Ordinary income was ¥267,455 thousand, down 33.5%, and net income attributable to owners of the parent was ¥132,298 thousand, down 28.3%.」

「As a result, revenue for the nine months ended the third quarter was ¥8,315,417 thousand, up 2.7% year on year. However, the increase in expenses could not be absorbed by revenue growth, resulting in operating income of ¥494,725 thousand, down 18.6% year on year, ordinary income of ¥527,878 thousand, down 10.4%, and quarterly net income attributable to owners of the parent of ¥357,932 thousand, down 3.7%.」

「Under these circumstances, revenue for the six months ended the second quarter was ¥4,926,019 thousand, up 1.9% year on year. However, due to higher expenses, including personnel costs, the operating loss was ¥191,362 thousand, compared with an operating loss of ¥27,740 thousand in the same period of the previous year, and the ordinary loss was ¥201,966 thousand, compared with an ordinary loss of ¥41,925 thousand. The quarterly net loss attributable to owners of the parent was ¥130,902 thousand, compared with a quarterly net loss attributable to owners of the parent of ¥50,211 thousand in the same period of the previous year.」

「Accordingly, although the first quarter, when student numbers are low and the impact of special courses and other programs is limited, is less profitable and resulted in an operating loss, performance has generally remained in line with the initial plan.」

「Against this backdrop, the Group considers it an important management priority to pursue the following initiatives to expand its business and improve profitability.」