FY February Tokyo Individualized Education Institute April 18,

Transcription

1 FY February-2011 Business Result Presentation April 18, 2011 Tokyo Individualized Education Institute 4745

2 First We express our heartfelt sympathy to people suffered from East Japan Great Earthquake Fortunately, we did not happen any damage related to staffs and schools. Firstly considering i the safety of students t and parents, TKG advances to further progress according to present policies as following under the corporate original policy Possible to do if it does. Offer of "Safe, safe class environment" Offer of Quality and amount of class connected directly to students peformance Contribution ti by corporate efforts and cooperation for Japan revival 2

3 Business Results of FY February-2011 Director: Shoich Funato 3

4 Business Overview Since July, 2011 new management organization started. Various new efforts such as the area business unite, SV institution to strengthen job site and improvement effort for class, instructor and school operation contributed to improve withdrawal ratio. However, the second quarter s result was under performed because of sluggish 1Q performance. Since the winter, we introduced additional menu of our strategic service product and expand service up to 103 schools. TKG continue to enhance the study environment for students. 4

5 FY Feb-2011: Business Results Sales 13,732 13, % Cost of Sales 8,428 8, % Sales cost ration 61.4% 62.0% Gross Profit 5,304 5, % Gross Margin 38.6% 38.0% SG & A 4,510 4, % SG&A ratio 32.8% 32.1% Operating Profit % OP margin 5.8% 5.9% Recurring Profit % RP margin 5.8% 6.0% Net Profit % 14,824 8, % 6,058 40,9% 4,433 29,9% 1, % 1, % 923 NP margin 1.1% 1.6% 6.2% 5

6 FY Feb-2011 Balance Sheet million yen Current Assets 6,009 7,316 Fix Assets 2,120 2,464 Total Assets 8,129 9,781 Current Liabilities 1,353 1,649 Fix Liability Total Net Assets 6,763 8,115 Total Liability & Net Assets 8,129 9,781 Assets Total Assets 8,129 M yen (YOY 1,651 M yen) Mainly repurchasing own stocks and payment tax and dividends. Liability Total Liability 1,366 M yen (YOY 298 M yen) Mainly due to tax refund, tax payment did not occurred. Net Assets Total Assets 6,763 M yen (YOY 1,352 M yen) Due to payment dividends and repurchase of own stocks. 6

7 FY Feb-2011 Cash Flow million yen Operating Cash Flow Investing Cash Flow 2,862 3,150 Financing Cash Flow 1, Cash and cash equivalents as of end of Fiscal year 5,399 3,734 Operating Cash earned 322 M yen Operating profit covered cash out such as corporate tax Investing Cash earned 2,862 M yen Cash-in from fixed deposit, rent deposit from school transfer exceeded cash-out for software development, rent deposit and acquisition of fix assets. Financing Cash out 1,519 M yen Due to repurchase own stocks and payment dividends 7

8 Breakdown; Cost of Sales and SG & A million yen Cost of Sales 8, % 8, % 8, % Personnel expense 1, % 1, % 1, % Instructor expense 3, % 3, % 4, % Rent 1, % 1, % 1, % Lease % % 1% % Property expense % % % Depreciation % % % Others % % % SG & A 4, % 4, % 4, % Personnel expense % % % Advertisement 2, % 2, % 2, % Commissions % % % Recruiting % % % Lease % % % Depreciation % % % Others % % % 8

9 Retirement of own stocks Capital Policy Type of shares to be retied Company s common stock Number of retired shares 6,401, % to total outstanding shares Expected date to be retired April 30, 2010 Repurchasing own shares May 6, 2010 August 31, 2010 Type of shares to be repurchased Company s common stock Number of shares to be repurchased 4,576,700, shares Max 5,000,000, Total amount to be repurchased 1,117,427,100 Result Period to be repurchased ; May 6, 2010 to August 31, 2010 Commemorative dividends 2Q dividends payment exercised as plan 9

10 Disclosure of Business Forecast Due to East Japan Great Earthquake on March 11, 20011, power shortage and traffic confusion, we canceled spring workshop and voluntary restraint sales activity for considering the safety first of students and parents. Then, we restarted school operation since March 22 and sales activity since April 4, We are taking measure of consumers attitude sincerely now. Under these macro circumstance, we are processing on revise original management plan now. We plan to disclose this fiscal year business forecast after confirmed rational estimation as soon as possible. 10

11 Business overview Director: Katsuki Saitou 11

12 Result VS. Budget New student Withdraw rate Students No Revised budget since September 1Q Achieve % Achieve % Achieve % Since 2nd Quarter of new management started, good performance continue in the second half. Withdrawal ration was improved YOY basis and contributed to total students numbers. 12

13 Total students; Plan & Result Students Number Revised budget since September To Plan 13

14 New students Plan VS Result New Students Revised budget since September To Plan 14

15 Withdrawal ratio Plan VS Result Withdrawal Ratio Revised budget since September To Plan Worse Better 15

16 Cost cutting progress Result Biggest scale of remove and decrease Many cost cutting schools of rent and common service charge Suitable location change contribute sales and cost cutting. New facility trial Shin Yurigaoka school was changed to Elementary & Junior and High school. Earning improvement & Suitable cost cutting 16

17 FY 2011; Improvement Prefecture Business Unite Being evaluated by customers Sales Growth Enhancing Quality Improve Performance All school adopt Improve of customer satisfaction and continue intention by qualified result & communication Growth strategy for 2012 after Appropriate profit management and variation iti adjusting location Suitable Earning and quality school unite development and expanding 17

18 Strategy Overview CONET STYLE President and CEO : Kazunari Taniyama 18

19 Admission intention 90% 95% Continue intention Flash back of Two year strategy t Withdraw improved Introducing UP. 105% 110% % 95% 105% 110%. 19

20 Strategic quality Improvement Offer value is strength of Business Contents & Strength of Commitment to customer Beyond expectation = Accordance Offer & Results ) Commitment t Quality In addition to Result, enhancing students Self convincing 20

21 One year earlier than original plan, Conet Style would be introduced all schools in the winter 2011 Expand grade Expand schools Steady Operation Adjusting Repeatability Measurement *base total review provision entrance exam science social correspond

22 In winter workshop, schools adopted CONET STYLE efficient result as followings Additional unite in winter workshop White school # Withdrawal Nov t d a a o VS Dec Feb eb Junior 1 Junior 2 Difference 121 Totally, YOY basis improved. New adopted school rapid increase 30 up 4 times scale, we can proof CONET STYLE going very well. Junior 1&2 grade students withdrawal ration was improved a lot YOY basis. 22

23 achievement Mock exam result CO ONET English Deviation rise person's ratio 26pt CONET 7pt Mathematics Text Book Yes No Exam Result Self evaluation No text book sale marketing achievement Yes 5 subject book Average Deviation Urayasu School, early adopted 1.5 times New student Before 50 After 75 Interview Ratio Nov-2009 Sep

24 Management Policy President and CEO : Kazunari Taniyama 24

25 Focusing Policy 2011 Safe, safe class environment Quality and amount of class connected directly to students Contribution by corporate efforts (CSR) 2011 Crucial i l moment of revival Important Students 25

26 Focusing Policy 2011 Safe, safe class environment Lighting for blacking out, enthusiasm syndrome measures, escape route confirmation, and disaster measures Fire prevention supervisor and strengthening people and training of employees and training strengthening Customer mailing list, lecturer SNS and employee safety confirmation system, etc. Quality and amount of class connected directly to students Review and re-proposal of learning scheme for student's accomplishment of a goal Use of holiday and GW on weekend Usual business of summer workshop Contribution by corporate efforts (CSR) Continue the active conduct of business and promote it as a part in the educational industry. Keep earning profit, and payback it to the stake-holder. Grow up people filled with the desire of "Possibletodoifitdoes" if it does to the world Work on the power consumption reduction by one's best. 26

27 FY 2011 Basic Policy for re-planning management plan Re-focusing withdrawal ratio Recover new students 2011 Crucial moment of revival Important Students For Revival Keep the amount of class Provision for summer workshop achievement to increasing students To all schools CONET STYLE Continuous Growth after 2012 Cost structure renovation Management resource select & Focusing Class profit and cost cutting 27

28 Corporate Profile as of February 28, 2011 Etblihd Established August 1985 Listing TSE 1st in August 2003 code;4745 C E O Kazunari Taniyama Capital million yen Number of schools 197 Kanto 148, Kansai 37, Tokai 7, Kyushu 5 Enrollment 20,183 students Primary school 2,749 Junior high 10,043 Senior High 7,391 Employees 423 Part time teaches included 6,504 Share outstanding 58,868,186 Number of shareholders h 5,060 Benesse Corporation 33,610, Shinji Baba 7,057, SB asset management 3,315, Takao Yasuda 1,426, Nippon master trust B/K (TA) 445, Nippon trusty service trust B/K (TA) 283, Trans Pacific Education Network 270, Nippon trusty service trust B/K (TA) 267, Kyoko Ishihara 250, Isao Ishihara 248, (Note) 1.In addition to above, TKG owns company stocks 4,676,700 (as of Feb-28, 2011). 2. Big shareholder's "Holdings ratio" calculates the total of outstanding shares except the repurchased stock as a denominator by revising the Corporate Law enforcement rule Article 122 paragraph 1. 28

29 Inquiry IR Inquiry Director and General manager of Management Policy Headquarters Shoichi Funato IR/Communication: Yuji Sugimura TEL: This presentation was prepared to provide information on TKG s FY Feb-2011 results and management strategies. The purpose of these materials is not to solicit investments in TKG s stock or other securities. All information in this presentation is based on data that is current as of end of February, The company makes no guarantees regarding the accuracy or completeness of this information i and retains the right to revise this information at any time with no prior notification.