GAKKYUSHA CO.,LTD.

In FY2026 (ending March 2026), the seven Tokyo Metropolitan designated advancement-focus high schools produced a combined 377 successful examinees, ranking No.1 among all cram schools. The 11 Tokyo Metropolitan integrated junior-senior high schools also produced 1,097 successful examinees in total, with Koishikawa Junior High, Osyukan Junior High, and Hakuo High School Affiliated Junior High each recording the company's all-time highest number of successful examinees. This accumulation of admission results underpins the credibility of the "ena brand" and forms the foundation for student acquisition.

In FY2026 (ending March 2026), the operating profit margin on sales reached 22.2% (up 2.5 percentage points year on year), exceeding the medium-term management plan target of over 20.0%. Operating profit of ¥2,904 million and ordinary profit of ¥3,004 million both renewed all-time highs. Cost reductions from school consolidation and revenue increases from expanded training camps were achieved simultaneously, demonstrating profit management capability that significantly increased profit even amid a decline in sales.

As of the end of FY2026 (ending March 2026), the equity ratio stood at 65.0% (up from 60.3% at the end of the previous fiscal year), with net assets of ¥8,174 million. Operating cash flow was stably generated at ¥2,448 million, and the interest-bearing debt to cash flow ratio remained low at 0.6 years. The company has also secured overdraft facilities totaling ¥500 million across Mitsubishi UFJ, Mizuho, and Sumitomo Mitsui banks, indicating a high level of financial soundness.

Promoting the establishment of metropolitan/private course offerings at all elementary division campuses and expanding the number of campuses offering the "ena Saikosuiju" (highest-level) program at the junior high division. The opening of "Kiwami," a specialized cram school for the most competitive private and national junior high school entrance exams, and the development of the original textbook "EXE" are intended to expand the customer base from the traditional focus on metropolitan public school exams to capture demand for private school entrance exams.

The summer training camp was extended from the previous 5 nights/6 days to 10 nights/11 days, and a new long-term camp of 22 nights/23 days was established. In winter as well, a long-term camp of 13 nights/14 days was held, with many students participating. The high-value-added, high-unit-price revenue from these training camps offset the decline in sales and contributed significantly to the improvement in operating margin in FY2026 (ending March 2026).

Flexibly promoting the consolidation of low-profitability campuses, particularly in the individualized instruction segment. Combined with the elimination of one-time costs associated with environmental improvements incurred in the previous fiscal year, overall operating expenses were reduced compared to the same period of the previous year. This is contributing to strengthening the earnings structure, enabling an increase in operating profit even amid a decline in sales.

The number of students at the GAKKYUSHA USA Group, which operates overseas campuses in the United States, Canada, and Europe, has been progressing steadily, contributing to the increase in education segment net sales in FY2026 (ending March 2026). By capturing demand from returnee families and Japanese households residing overseas, the company aims to diversify the risk associated with Japan's declining birthrate.