FY May-2006, 3Q Result Presentation. April

Transcription

1 FY May-2006, 3Q Result Presentation April

2 3Q of FY May-2006 Summary million yen Sales Recurring Profit Net Profit 13,000 12,000 11,000 10,532 12,241 1,900 1,700 1,100 10,000 9,000 1,500 1, ,000 1,100 7, , , Favorable growth of students and session's sales Recurring profit margin up 3.3 points 2

3 Overview of 3Q Business 1 Interim 2Q 3 consecutive growth 3 recurring profit YOY net profit YOY Being Maximum record Enhancing Corporate Value Jan-2006 Selected loan transaction stock Enhancing liquidity and transaction Feb-2006 Stock Option issued Incentive for staffs Apr-2006 Stock splits and higher dividends Increasing number and return of shareholders 3

4 Sales Segmentation May-05 3Q Sales 10,532 million May-06 3Q Sales 12,241 million Average unite price per student was increased 14,869(YOY) yen 2006/ yen 4

5 3Q of FY May-2006; B/S & CF CF million yen Current Assets Operating cash flow Cash and deposits Accounts receivable Investing cash flow others Financial cash flow Tangible & Intangible Investment & others Balance of cash and cash equivalent Total Assets Cash Flow Operating Cash Flow Current Liabilities Operating Cash Flow was 1,005 million yen Accrued expenses & advaces paied Reason or decreased from previous Accrued corporation Tax Due to the temporary increase of account receivable (107 M) to cut the tuition collection cost by renewal others contract with outsourcing company Fixed Liabilities In addition, corporate tax 1,281 million yen Shareholders' Equity Investment cash flow Total Liabilites & Equity Investment cash flow was 1,288 million yen Meiko Network Japan stocks 1,177 million yen New opened schools investment 110 million yen Financing cash flow Financing cash flow was 547 million yen Repurchased own stocks 345 million yen and dividends 309 million yen 5

6 FY May Q Financial Figures(YOY) 80.0% 60.0% 40.0% 20.0% 0.0% 05/5 3Q 06/5 3Q Cost of Sales ratio 62.5% 60.7% SG & A ratio 25.2% 23.8% Recurring Profit ratio 12.4% 15.7% Net profit ratio 6.8% 9.2% Cost of sales ration improved 1.8 SG&A ratio improved 1.4 Recurring profit ratio improved 3.3 Net profit ration improved 2.4 6

7 Monthly sales transition All school sales is going well, especially for existing school 7

8 30,000 25,000 20,000 15,000 Monthly students transition Total students 3 average up +3, 027 (YOY ) 10,000 Jun Jul Aug Sep Oct Nov Dec Jan-06 Feb FY May-05 21,288 23,542 24,822 25,324 25,700 26,096 26,752 24,778 22,615 FT May-06 24,911 27,567 28,529 28,657 28,969 29,109 29,567 26,746 24,103 Existing class students 3 average up +3,084 (YOY ) 30,000 25,000 20,000 15,000 10,000 Jun Jul Aug Sep Oct Nov Dec Jan-06 Feb FY May-05 21,040 23,157 24,374 24,836 25,306 25,703 26,274 24,273 22,339 FY May-06 24,444 27,110 28,038 28,154 28,465 28,884 29,305 26,579 24,078 8

9 Monthly new students All schools 3 average up +569 (YOY+4.6 ) FY May-06 3Q 13,031 FY May-05 3Q 12,462 10,000 11,000 12,000 13,000 9

10 Number of Inquiry Folded leaf & Web 3 average up +523 (YOY+ 1.5 ) FY May ,317 FY May ,794 30,000 31,000 32,000 33,000 34,000 35,000 36,000 Web ratio was up 1.7 points (YOY) 10

11 School opening situation New school Eight schools in this FY Keeping existing school growth Previous Year Kansai 34 schools +2 in this FY Fukuoka 4 schools +1 in this FY Nagoya 7 schools +1 in this FY Kanto 140 schools +4 in this FY 177 Schools New Open in this FY Kunitachi Tokyo Mar Yoga Tokyo Mar North Yono Saitama Feb Saiin Kyoto Feb West Jinnan Hyogo Feb Fujisaki Fukuoka Feb South Ohsawa Tokyo Dec Ikeshita Aichi Dec 11

12 Full year Forecast of FY May-2006 Sales 16,169 million yen Achieved 75.7 in 3Q Recurring profit 2,100 million yen Achieved 91.6 in 3Q Net profit 1,087 million yen Achieved in 3Q Very conservative forecast Last spurt for consecutive Maximum profit in the past 12

13 Recent condition March-2006, Monthly Report April-6 April-6 Announced YOY base base Existing schools Sales ,873 Million yen Students ,850 students All All schools Sales ,854 million yen Students ,769 students Due to shift advertisement budget to April for Test-Marketing in March, New students was decreased YOY basis, however, the sales of spring worksession was recorded high +31.8%(YOY). Surely, new students will be increased from April. 13

14 Medium term Management Projection (million yen) 24,000 20,000 16,000 14,077 16,169 Sales Recurring Profit Net Profit 18,308 21,378 (million yen) 3,500 3,000 2,500 2,000 1,717 2,100 2,625 3,281 1,700 12,000 8,000 1,500 1, ,087 1, ,000 0 FY May-05 FY May-06(E) FY May-07(E) FY May-08(E) Sales 14,077 16,169 18,308 21,378 0 FY May-05 FY May- 06(E) FY May- 07(E) FY May- 08(E) Recurring Profit 1,717 2,100 2,625 3,281 Net Profit 916 1,087 1,360 1,700 EPS 14

15 Corporate Profile As of end of Feb-2006 Established August 1985 Listing TSE 1st in August 2003 code;4745 C E O Shinji Baba Capital million yen Number of schools 183 Kanto 138, Kansai 34, Tokai 7, Kyushu 4 Enrollment 24,103 students Primary school 4,538, Junior high 11,811, Senior High7,754 Employees 288 Part time teaches included 6,897 Share outstanding 21,756,500 included company own shares 1,000,060 Number of shareholders 2,264 as of end of Nov-2005 Financial Institution 2.0% Trusut Bank 13.1% Security house 0.4% Other Company 14.7% Individual & Others 46.8% Foreign Institution 23.0% 15

16 IR Inquiry Please contact to Executive Director Shoichi Funato TEL: This presentation was prepared to provide information on TKG s 3Q of FY May-2006 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 February 28, The company makes no guarantees regarding the accuracy or completeness of this information and retains the right to revise this information at any time with no prior notification.