Gakken : Consolidated Monetary Outcomes for the Three Months Ended December 31, 2021

Consolidated Monetary Outcomes

for the Three Months Ended December 31, 2021

[Japanese GAAP]

February 10, 2022

Firm identify: Gakken Holdings Co., Ltd.

Inventory change itemizing: Tokyo Inventory Change

Securities code: 9470

URL: https://www.gakken.co.jp/

Consultant: Hiroaki Miyahara, President, Consultant Director

Contact: Takashi Sawada, Basic Supervisor of Monetary Technique Workplace

Telephone: +81-3-6431-1050

Scheduled date of submitting quarterly securities report: February 10, 2022

Scheduled date of commencing dividend funds: ―

Availability of supplementary briefing materials on quarterly monetary outcomes: Accessible

Schedule of quarterly monetary outcomes briefing session: None

(Quantities of lower than a million yen are rounded down.)

1. Consolidated Monetary Outcomes for the Three Months Ended December 31, 2021 (October 1, 2021 to December 31, 2021)

(1) Consolidated Working Outcomes			(% signifies modifications from the earlier corresponding interval.)
	Web gross sales		Working revenue	Atypical revenue	Revenue attributable to
		homeowners of mother or father
Three months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
December 31, 2021	36,888	3.1	1,324	(31.4)	1,134	(35.5)	702	(25.7)
December 31, 2020	35,766	3.0	1,929	67.8	1,759	63.4	946	91.5

(Be aware) Complete revenue: Three months ended December 31, 2021: ¥680 million [(32.9)%]

	Three months ended December 31, 2020: ¥1,014 million [(27.1)%]
	Revenue per share	Diluted revenue per share
Three months ended	Yen	Yen
December 31, 2021	16.14	15.98
December 31, 2020	25.50	25.21

(2) Consolidated Monetary Place
		Complete property		Web property		Fairness ratio
		Million yen			Million yen		%
As of December 31, 2021	123,262			47,659		38.3
As of September 30, 2021	116,900			47,413		40.2
(Reference) Fairness: As of	December 31, 2021: ¥	47,209 million
As of September 30, 2021: ¥46,961 million
2. Dividends
				Annual dividends
		1st quarter-end	2nd quarter-end	third quarter-end	Yr-end	Complete
Fiscal 12 months ended		Yen		Yen		Yen	Yen	Yen
	－	11.00			－	11.00		22.00
September 30, 2021
Fiscal 12 months ending		－
September 30, 2022
Fiscal 12 months ending
September 30, 2022			12.00			－	12.00		24.00
(Forecast)

(Be aware) Revision of dividends forecast because the final announcement: None

3. Consolidated Monetary Outcomes Forecast for the Fiscal Yr Ending September 30, 2022 (October 1, 2021, to September 30, 2022)

(% signifies modifications from the earlier corresponding interval.)

	Web gross sales		Working revenue	Atypical revenue	Revenue attributable to	Revenue per share
		homeowners of mother or father
	Million yen		%	Million yen	%	Million yen		%	Million yen	%	Yen
Full 12 months	157,000		4.5	6,700	7.4	6,800		11.0	3,400	29.9	78.08
(Be aware) Revision of	monetary outcomes	forecast	because the final	announcement: None

The primary half efficiency forecast is omitted because of the nature of the Firm’s enterprise which is characterised by fluctuations within the first half.

* Notes:

1. Modifications in important subsidiaries throughout the interval underneath evaluation (modifications in specified subsidiaries leading to modifications in scope of consolidation): No

Newly added: – (Title) –

Excluded: – (Title) –

1. Utility of particular accounting therapies in making ready quarterly consolidated monetary statements: Sure
2. Modifications in accounting insurance policies, modifications in accounting estimates, and retrospective restatement
3. 1. Modifications in accounting insurance policies because of the revision of accounting requirements: Sure
   2. Modifications in accounting insurance policies aside from 1) above: No
   3. Modifications in accounting estimates: No
   4. Retrospective restatement: No
4. Complete variety of issued shares (widespread inventory)
5. 1. Complete variety of issued shares on the finish of the interval (together with treasury shares):

December 31, 2021: 44,633,232 shares

September 30, 2021: 44,633,232 shares

1. Complete variety of treasury shares on the finish of the interval: December 31, 2021: 1,048,386 shares September 30, 2021: 1,113,082 shares
2. The common variety of shares throughout the interval:

Three months ended December 31, 2021: 43,546,162 shares

Three months ended December 31, 2020: 37,107,515 shares

The Firm has a trust-type worker shareholding incentive plan in place. The overall variety of treasury shares on the finish of the interval contains the variety of the Firm’s shares held underneath this plan by The Nomura Belief & Banking Co., Ltd. (the devoted belief account for Gakken Workers’ Shareholding Affiliation): 310,500 shares on the finish of the three months ended December 31, 2021; and 375,600 shares on the finish of the fiscal 12 months ended September 30, 2021. The common variety of shares throughout the interval is calculated with the variety of treasury shares deducted; the variety of treasury shares deducted contains the variety of the Firm’s shares held underneath the identical plan by The Nomura Belief & Banking Co., Ltd. (the devoted belief account for Gakken Workers’ Shareholding Affiliation): 349,325 shares on the finish of the three months ended December 31, 2021; and 501,250 shares on the finish of the three months ended December 31, 2020.

• These quarterly consolidated monetary outcomes are outdoors the scope of quarterly evaluation by licensed public accountants or an audit agency.
• Rationalization of the right use of monetary outcomes forecast and different notes

(Be aware on forward-looking statements, and so forth.)

Monetary efficiency forecasts and different forward-looking statements herein are primarily based on info presently accessible to the Firm and sure assumptions it deems rational. The precise outcomes could fluctuate considerably because of varied components. With regard to the assumptions for the efficiency forecasts and the notes on the usage of the efficiency forecasts, please confer with “1. Qualitative Info on Monetary Outcomes for the Interval underneath Evaluation, (3) Consolidated Monetary Outcomes Forecast and Different Ahead-looking Statements” on web page Eight of the Attachments.

Desk of Contents – Attachments
1. Qualitative Info on Monetary Outcomes for the Interval underneath Evaluation …………………………………………………………..	2
(1)	Rationalization of Enterprise Outcomes ………………………………………………………………………………………………………………….	2
(2)	Rationalization of Monetary Place ………………………………………………………………………………………………………………..	8
(3)	Consolidated Monetary Outcomes Forecast and Different Ahead-looking Statements ………………………………………………	8
2. Quarterly Consolidated Monetary Statements and Major Notes ………………………………………………………………………	10
(1)	Quarterly Consolidated Steadiness Sheets ………………………………………………………………………………………………………	10
(2)	Quarterly Consolidated Statements of Revenue and Complete Revenue …………………………………………………….	12
(3)	Notes to the Quarterly Consolidated Monetary Statements …………………………………………………………………………….	14
(Notes on Going Concern Assumption) …………………………………………………………………………………………………………	14
(Notes When There’s Vital Modifications in Quantities of Fairness) …………………………………………………………………..	14
(Utility of Particular Accounting Remedies in Making ready Quarterly Consolidated Monetary Statements) ………….	14
(Modifications in Accounting Insurance policies) …………………………………………………………………………………………………………………	14
(Section Info, and so forth.) …………………………………………………………………………………………………………………………	16
(Vital Subsequent Occasions) …………………………………………………………………………………………………………………..	17

1. Qualitative Info on Monetary Outcomes for the Interval underneath Evaluation

(1) Rationalization of Enterprise Outcomes

Within the instructional area the place Gakken Group (the “Group”) conducts its enterprise, following instructional reform, new Programs of Research shall be rolled out to senior excessive colleges. As new instances of COVID-19 are rising quickly because of the look of a brand new variant, demand for training’s digitalization has elevated additional.

Whereas demand for in-person studying stays excessive within the studying middle market, countermeasures to stop an infection have grow to be a turning level to extend on-line classes not solely in personal and group tutoring, however for colleges with stringent entrance exams as nicely. Additional, individually optimized studying tailor-made to every pupil is increasing via the supply of AI-based studying plans and supplies.

Within the publishing trade, whereas the journal market stays sluggish, the market as a complete seems to have bottomed out, owing primarily to stay-at-home demand for paper publications and substantial development in e- guide publishing. Distribution reform initiatives throughout industries are progressing in response to longstanding challenges akin to constantly excessive charges of return of unsold items and rising logistics prices. World media-mix initiatives for mental property (IP) are additionally spreading worldwide not just for publishing, but in addition for such numerous media as motion pictures, animation, and video video games.

Within the college training trade, the GIGA (World and Innovation Gateway for All) College Program that goals to develop the academic ICT atmosphere has been expedited. Whereas the distribution of studying units to each pupil has been accomplished and the introduction of digital studying supplies is progressing, however, info safety measures and the dearth of ICT training abilities of academics are points to be addressed.

Within the grownup training trade, the recurrent training and e-learning markets are rising.

Within the healthcare and nursing area, authorities and company insurance policies are advancing strikes to extend hiring and retention of staff who assist aged care and child-care companies on the entrance line by enhancing their compensation.

Within the aged care enterprise, wants for aged care are rising in affiliation with the “2025 subject” (Japan’s child boomer technology will attain the late aged age (75 years outdated or older) in 2025) and the rising inhabitants of the aged with dementia. On this context, the Ministry of Well being, Labour and Welfare is selling the constructing of methods that present complete assist and companies to communities (Neighborhood-based Built-in Care System) that allow folks to proceed to stay their lives within the communities which can be acquainted to them till the tip of life. The discount of staff’ operational burdens via IT utilization and the prevention and early detection of dementia and lifestyle-related and different ailments are important points.

Within the child-care trade, the demand for child-care companies is rising because of the enhance in households wherein each dad and mom work. The variety of college students admitted to nursery colleges elevated because of nationwide measures to assist baby elevating, such because the New Little one-rearing Safety Plan and the availability of free preschool training and child-care, and the unfold of COVID-19 led to folks refraining from utilizing nursery colleges. This resulted in a lower within the variety of youngsters on ready lists for nursery colleges, however the want for nursery colleges stays excessive in main cities. The scarcity of after-school youngsters’s golf equipment nonetheless continues, and lots of corporations from all kinds of industries are coming into the enterprise.

Aged care and child-care amenities are required extra to make sure the protection of residents, youngsters, dad and mom and staff, in addition to thorough measures to stop the unfold of COVID-19, together with offering hygiene merchandise.

The Group created the slogan “Institution of a strong basis for development,” and set out the next administration insurance policies primarily based on “Gakken 2023,” a three-year plan formulated in November 2020: within the instructional area, create new methods of studying and numerous studying alternatives; within the healthcare and nursing area, contribute to the creation of sustainable communities as we intention to be a number one firm; and for the Group as a complete, speed up the digital transformation (DX) and broaden international enterprise.

Classification of the Group’s services and products is as follows:

Instructional		Operation of Gakken Classroom for a variety of kids from
Area	Classroom and	preschoolers to junior highschool college students (primarily elementary college
	college students)
	studying middle
	Operation of lessons for toddlers and youngsters
	enterprise
	Operation of studying facilities for a variety of kids from elementary
		college college students to senior highschool college students
		Publishing and sale of publications together with youngsters’s books and study-
		support books via distributors and bookstores
	Publishing and content material	Growth and sale of studying supplies for studying facilities
	Publishing and sale of books on nursing and drugs, sale of e-learning
	enterprise
	for coaching applications concentrating on nurses
		Growth and sale of digital content material linked with publishing and
		instructional toys
		Manufacturing and sale of publications, child-care merchandise, gear, and
		playground gear for kindergartens, nursery colleges, and youngsters’s
	Kindergarten and	daycare facilities, in addition to clothes for academics
	Manufacturing and sale of textbooks, instruction guides for academics,
	college enterprise
	supplementals, ICT studying supplies, particular wants training supplies,
		quick essay mock exams, and so forth.
		Operation of recruitment assist companies and company coaching applications
Healthcare	Aged housing	Planning, improvement, and operation of serviced flats for the
and Nursing	enterprise	aged, bases for aged care companies, and so forth.
Area	Group properties for the	Planning, improvement, and operation of varied companies together with group
	aged with dementia
	properties for the aged with dementia
	enterprise
	Little one elevating assist	Planning, improvement, and operation of nursery colleges, youngsters’s
	enterprise	daycare facilities, after-school youngsters’s golf equipment, and so forth.

Based mostly on the three-year plan “Gakken 2023,” the Group is advancing the next concrete measures. (Instructional area)

• Improve the added worth of school rooms and studying facilities by hanging a steadiness between offline and on-line, and interact in areas we’ve got but to domesticate
• Win the highest market share of kids’s books along with study-aid books
• Roll out digital studying utilizing publishing and content material
• Digitize medical and nursing texts, and speed up the expansion of e-learning concentrating on nurses
• Improve gross sales of products concentrating on kindergartens, nursery colleges and youngsters’s daycare facilities (e.g. image books, provides wanted for brand new semesters, and gear akin to desks), and enhance companies in facility operations via ICT
• Create new companies for colleges utilizing Group content material, and reorganize the gross sales system
• Roll out digital companies in grownup training and company coaching domains
• Evaluation unprofitable companies

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Disclaimer

GAKKEN Holdings Co. Ltd. printed this content material on 03 March 2022 and is solely accountable for the knowledge contained therein. Distributed by Public, unedited and unaltered, on 03 March 2022 06:09:04 UTC.

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All information about GAKKEN HOLDINGS CO., LTD.

Gross sales 2022 158 B 1 367 M 1 367 M Web revenue 2022 3 660 M 31,7 M 31,7 M Web Debt 2022 – – – P/E ratio 2022 11,8x Yield 2022 2,42%

Capitalization 43 172 M 373 M 373 M Capi. / Gross sales 2022 0,27x Capi. / Gross sales 2023 0,26x Nbr of Workers 7 995 Free-Float –

Chart GAKKEN HOLDINGS CO., LTD.

Period : Auto. 2 months Three months 6 months 9 months 1 12 months 2 years 5 years 10 years Max. Interval : Day Week

Technical evaluation tendencies GAKKEN HOLDINGS CO., LTD.

	Quick Time period	Mid-Time period	Lengthy Time period
Developments	Bearish	Bearish	Bearish

Revenue Assertion Evolution

Promote Purchase
Imply consensus	OUTPERFORM
Variety of Analysts	1
Final Shut Worth	992,00 JPY
Common goal value	1 770,00 JPY
Unfold / Common Goal	78,4%