4668.T

Overall Company & Mid-Term Plan Overview

• The 3-year mid-term management plan "MEIKO Transition" (2025 August fiscal year as first year) had all quantitative financial targets achieved a year early in the first year. Management is currently focused on balancing profitability and growth investment to build future growth capacity.
• The company pursues two core transitions: Business Transition (portfolio evolution, customer expansion, alliance acceleration, group-wide alignment, safe environment development) and Human Transition (organizational and talent development).

Business Transition Progress

• Portfolio Evolution:

  • For core Meikyo Juku business: Targeted classroom-level talent development and hospitality training has increased total enrollment to 99,257 students, with average enrollment per classroom improving to 59.6 students, driving better classroom profitability and operating efficiency. Over 1,000 staff have earned hospitality certifications, 324 of which are from the FC segment.
  • For human resources and training segment: Meiko Career Partners is in its second investment phase, with Q2 revenue up 24% YoY driven by strong growth in the foreign talent business. The Japanese learning tool "Japany" now has 6,405 users, and the company signed a partnership agreement with Kanagawa Prefecture in January 2026 to promote Japanese language education for foreign workers.

• Target Customer Expansion:

  • For kids business: Expanded from B2C direct operation to B2B contracted services, with growing demand for after-school programs at private elementary schools and kindergarten extra-curricular programs, which now lead segment growth.
  • Launched new Meiko Mirai business targeting under-served student groups: Operates free schools and correspondence high school support schools. Three free school locations are open as of Q2, and the Meikyo Juku Academy correspondence high support campus opened in Takadanobaba in April 2026.
  • The company will continue active investment in new business areas combined with M&A to drive growth.

• Alliance Strategy Acceleration:

  • Meiko Career Partners launched a joint program with major restaurant industry operator Royal Holdings Co., Ltd., offering a sponsored course for Vietnamese students studying Japanese at Hanoi University that covers Japanese restaurant operations.
  • Meiko Kids' 4th annual Kids SDGs EXPO was backed by the Tokyo Metropolitan Board of Education, serving as a public event to showcase student-led sustainability learning projects.

• Group Alignment & Safe Environment:

  • The company's Japanese language school segment unified all operations under the single brand name "Waseda EDU" starting April 2026.
  • Regular disaster prevention drills and traffic safety training are held across all Meikyo Juku classrooms to prioritize student safety.

Human Transition Progress

• Cross-group job rotation is used to develop talent, with 36 employees currently participating in internal group exchanges, including 5 seconded directors leading group subsidiaries.
• A new executive leadership development program has launched, focused on building qualitative leadership skills including hospitality, ethics, and decision-making capacity, to support long-term organizational growth.

• Full-year 2026 August fiscal year earnings guidance is maintained at the originally projected level, as the company plans to continue planned investments in environmental upgrades, digital systems, and human capital in the second half of the fiscal year.
• Interim dividend per share is kept at the planned 14 yen, with full-year annual dividend planned at 28 yen, a 1 yen increase compared to the prior fiscal year. Dividend policy targets a 5% to 7% dividend on equity ratio (DOE).
• The company's board of directors has approved the cancellation of 2 million shares of outstanding treasury stock to return capital to shareholders.
• A corporate organizational restructuring has been announced: the DX Strategy Headquarters will be integrated into the Meikyo Juku Business Headquarters to accelerate core business growth, and the Management Headquarters and Group Coordination Office will be reorganized to strengthen growth support and governance for group subsidiaries.

1. Meikyo Juku Direct Management Business: Revenue of 7.683 billion yen, 59.6% of total consolidated revenue, up 420 million yen year-over-year (YoY). Operating profit of 1.331 billion yen, up 147 million yen YoY. Operating classrooms decreased by 6 YoY to 481 units, with growth driven by increased student count and expense control.
2. Meikyo Juku Franchise (FC) Business: Revenue of 2.046 billion yen, 15.9% of total consolidated revenue, up 7 million yen YoY. Operating profit of 579 million yen, down 123 million yen YoY. Operating classrooms decreased by 32 YoY to 1,183 units, with higher expenses for commission payments, marketing, and digital talent expansion offsetting growth in royalty and textbook revenue.
3. Japanese Language School Business: Revenue of 763 million yen, 5.9% of total consolidated revenue, up 37 million yen YoY. Operating profit of 192 million yen, up 27 million yen YoY. Enrollment increased by 80 YoY to 1,909 students, with no negative impact from international tensions as previously anticipated.
4. Other Businesses: Revenue of 2.408 billion yen, 18.6% of total consolidated revenue, up 203 million yen YoY. Operating profit of 151 million yen, down 55 million yen YoY. Growth from existing segments (kids business, RED business) was offset by upfront startup costs for newly consolidated Meiko Mirai new business.

There were no major material risks or operational failures discussed in the provided transcript. The only pre-identified potential risk was negative impact to the Japanese Language School business from international events, which management confirmed has not materialized as of the second quarter.

The provided transcript does not include a question and answer section.