Financial Results Presentation for the Second Quarter of the Fiscal Year Ending August 2026 | MEIKO NETWORK JAPAN CO.,LTD. (4668) timely disclosure

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Direction

Mixed performance

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Scale

669

¥ million (year-on-year increase in revenue)

Wording

Conditional

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Contents of this document

Earnings presentationSecond quarter of the fiscal year ending August 202615 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales12,901 million yen+5.5%

Operating profit1,459 million yen-0.9%

Ordinary income1,552 million yen+0.8%

Net income966 million yen-4.3%

Operating profit margin11.3%, down 0.7 percentage points year on year

Selling, general and administrative expensesUp ¥573 million (selling, general and administrative expense ratio to revenue: not disclosed)

Full-year earnings forecast

Net Sales

25,500 million yen

Operating profit

1,800 million yen

Ordinary income

1,870 million yen

Net income for the current fiscal year

1,010 million yen

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Revenue was broadly in line with plan, while each profit metric was significantly above plan

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Revenue increase+¥669 million
Cost of sales, purchasing costs, personnel expenses and other costs-¥573 million
Increase in selling expenses-¥55 million
Increase in general and administrative expenses, excluding goodwill, personnel expenses and other costs-¥54 million
Goodwill Amortization+¥1 million

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

The plan incorporates rising costs including personnel expenses, investment in systems and new school openings, school-opening preparation costs and investment in human resources. Numerical assumptions were not disclosed

New initiatives

Integrate the 明光義塾-related functions of the DX Strategy Headquarters into the 明光義塾 Business Headquarters
Reorganize the Administration Headquarters as the Corporate Headquarters and establish an IR and Sustainability Promotion Office
明光みらい to develop free-school and support-school businesses for correspondence high schools
Conclude a cooperation agreement with Kanagawa Prefecture on promoting Japanese-language education for foreign residents of the prefecture, foreign workers and others
Provide Japany, a Japanese-language learning tool for foreign nationals

Key KPIsA metric the company considers important as a management benchmark.

Students enrolled in the 明光義塾 business99,257 people
Year on year against the same period last yearIncreased
Students in the directly operated 明光義塾 business33,846 people
Year on year against the same period last year+1,005 people
Students in the 明光義塾 franchise business65,411 people
Year on year against the same period last year+844 people
Students in the Japanese-language school business1,909 people
Year on year against the same period last year+80 people
Japany accounts6,405 people
Cumulative holders of hospitality qualifications1,167 people

Unit price and quantity metricsThese figures show sales broken down by price and volume.

The presentation includes the number of students enrolled in the 明光義塾 business and the average number of enrolled students (59.6 overall, 70.4 for directly operated schools and 55.3 for franchise schools). Unit-price metrics were not disclosed

Segment results

Meiko Gijuku tutoring-school directly operated business
Net Sales¥7,683 million (up 5.8% year on year, up ¥420 million)
Operating profit¥1,331 million (up ¥147 million year on year)
明光義塾 franchise business
Net Sales¥2,046 million (up 0.4% year on year, up ¥7 million)
Operating profit¥579 million (down ¥123 million year on year)
Japanese-Language School Business
Net Sales¥763 million (up 5.2% year on year, up ¥37 million)
Operating profit¥192 million (up ¥27 million year on year)
Other
Net Sales¥2,408 million (up 9.2% year on year, up ¥203 million)
Operating profit¥151 million (down ¥55 million year on year)

Medium-term management plan targets

Revised targets for the fiscal year ending August 2027: revenue of ¥26.5 billion, operating profit of ¥2.0 billion, EBITDA of ¥2.5 billion, ROE of 8.0%, financial leverage of at least 1.70x and DOE of 5.0%–7.0%. Operating profit of ¥1.69 billion in the fiscal year ended August 2025 was 112.7% of the final-year target.

Financial targets

ROE of 8.0%, financial leverage of at least 1.70x and DOE of 5.0%–7.0% (final-year targets under the medium-term management plan). The equity ratio was 71.1% at the end of the second quarter of the fiscal year ending August 2026.

Market Size / Share

Market size and market share figures were not disclosed

Number of stores and locations

481 directly operated 明光義塾 classrooms (down 6 year on year) and 1,183 franchise classrooms (down 32 year on year). For the directly operated business, openings and acquisitions from the franchise business added 4 classrooms, while transfers to the franchise business and closures reduced the number by 7. For the franchise business, new openings, expansions and reopenings added 10 classrooms, acquisitions from the directly operated business added 3, while closures, temporary closures and terminations reduced the number by 42, and transfers to the directly operated business reduced it by 3.

Number of employees

1,208 employees (consolidated, as of the end of August 2025)

Annual Dividend

¥28 (interim ¥14, year-end ¥14)

Payout ratio

Not disclosed. The medium-term management plan targets DOE of 5.0%–7.0%

Acquisition of treasury shares

A heading refers to the retirement of treasury shares. The amount, number of shares and period for any share repurchase were not disclosed

Contents of this document
Item	Details
Document type	Earnings presentation
Fiscal Period Covered	Second quarter of the fiscal year ending August 2026
Net Sales	12,901 million yen (YoY +5.5%)
Operating profit	1,459 million yen (YoY -0.9%)
Ordinary income	1,552 million yen (YoY +0.8%)
Net income	966 million yen (YoY -4.3%)
Operating profit margin	11.3%, down 0.7 percentage points year on year
Selling, general and administrative expenses	Up ¥573 million (selling, general and administrative expense ratio to revenue: not disclosed)
Full-year earnings forecast	Net Sales 25,500 million yen / Operating profit 1,800 million yen / Ordinary income 1,870 million yen / Net income for the current fiscal year 1,010 million yen
Self-assessment against the plan	Revenue was broadly in line with plan, while each profit metric was significantly above plan
Segment results	Segment Meiko Gijuku tutoring-school directly operated business / Net Sales ¥7,683 million (up 5.8% year on year, up ¥420 million) / Operating profit ¥1,331 million (up ¥147 million year on year), Segment 明光義塾 franchise business / Net Sales ¥2,046 million (up 0.4% year on year, up ¥7 million) / Operating profit ¥579 million (down ¥123 million year on year), Segment Japanese-Language School Business / Net Sales ¥763 million (up 5.2% year on year, up ¥37 million) / Operating profit ¥192 million (up ¥27 million year on year), Segment Other / Net Sales ¥2,408 million (up 9.2% year on year, up ¥203 million) / Operating profit ¥151 million (down ¥55 million year on year)
Breakdown of Factors Affecting the Change	Factors Revenue increase / Amount +¥669 million, Factors Cost of sales, purchasing costs, personnel expenses and other costs / Amount -¥573 million, Factors Increase in selling expenses / Amount -¥55 million, Factors Increase in general and administrative expenses, excluding goodwill, personnel expenses and other costs / Amount -¥54 million, Factors Goodwill Amortization / Amount +¥1 million
Key KPIs	Indicator name Students enrolled in the 明光義塾 business / Value 99,257 people / Year on year against the same period last year Increased, Indicator name Students in the directly operated 明光義塾 business / Value 33,846 people / Year on year against the same period last year +1,005 people, Indicator name Students in the 明光義塾 franchise business / Value 65,411 people / Year on year against the same period last year +844 people, Indicator name Students in the Japanese-language school business / Value 1,909 people / Year on year against the same period last year +80 people, Indicator name Japany accounts / Value 6,405 people / Year on year against the same period last year Not disclosed, Indicator name Cumulative holders of hospitality qualifications / Value 1,167 people / Year on year against the same period last year Not disclosed
Unit price and quantity metrics	The presentation includes the number of students enrolled in the 明光義塾 business and the average number of enrolled students (59.6 overall, 70.4 for directly operated schools and 55.3 for franchise schools). Unit-price metrics were not disclosed
Number of stores and locations	481 directly operated 明光義塾 classrooms (down 6 year on year) and 1,183 franchise classrooms (down 32 year on year). For the directly operated business, openings and acquisitions from the franchise business added 4 classrooms, while transfers to the franchise business and closures reduced the number by 7. For the franchise business, new openings, expansions and reopenings added 10 classrooms, acquisitions from the directly operated business added 3, while closures, temporary closures and terminations reduced the number by 42, and transfers to the directly operated business reduced it by 3.
Number of employees	1,208 employees (consolidated, as of the end of August 2025)
Assumptions Underlying the Business Outlook	The plan incorporates rising costs including personnel expenses, investment in systems and new school openings, school-opening preparation costs and investment in human resources. Numerical assumptions were not disclosed
Medium-term management plan targets	Revised targets for the fiscal year ending August 2027: revenue of ¥26.5 billion, operating profit of ¥2.0 billion, EBITDA of ¥2.5 billion, ROE of 8.0%, financial leverage of at least 1.70x and DOE of 5.0%–7.0%. Operating profit of ¥1.69 billion in the fiscal year ended August 2025 was 112.7% of the final-year target.
Financial targets	ROE of 8.0%, financial leverage of at least 1.70x and DOE of 5.0%–7.0% (final-year targets under the medium-term management plan). The equity ratio was 71.1% at the end of the second quarter of the fiscal year ending August 2026.
Annual Dividend	¥28 (interim ¥14, year-end ¥14)
Payout ratio	Not disclosed. The medium-term management plan targets DOE of 5.0%–7.0%
Acquisition of treasury shares	A heading refers to the retirement of treasury shares. The amount, number of shares and period for any share repurchase were not disclosed
Market Size / Share	Market size and market share figures were not disclosed
New initiatives	Integrate the 明光義塾-related functions of the DX Strategy Headquarters into the 明光義塾 Business Headquarters, Reorganize the Administration Headquarters as the Corporate Headquarters and establish an IR and Sustainability Promotion Office, 明光みらい to develop free-school and support-school businesses for correspondence high schools, Conclude a cooperation agreement with Kanagawa Prefecture on promoting Japanese-language education for foreign residents of the prefecture, foreign workers and others, Provide Japany, a Japanese-language learning tool for foreign nationals

Items this document does not state (7)

Gross Profit MarginResults for the three months of the current quarterProgress against full-year forecastRisk amount incorporated into the outlookCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Revenue increased mainly due to growth in the number of students in the directly operated 明光義塾 business. While higher revenue and expense controls contributed to operating profit, increases in purchasing costs, personnel expenses, selling expenses and general and administrative expenses weighed on earnings.

How to read this page

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