Segment reporting of corporate expenses and management fees following the transition to a holding company structure

「From the third quarter of the previous fiscal year, in connection with the transition to a holding-company structure, the Company changed its method of accounting for group operating expenses previously included in the tutoring-school business by recording them as corporate expenses in the adjustments to segment profit or loss. It also receives management fees from each reportable segment commensurate with the Group’s organizational structure after the transition to the holding-company structure. The management fees are recorded as expenses by each reportable segment and as corporate revenue in the adjustments to segment profit or loss.」