TAC : Consolidated Financial Results for the Six Months Ended September 30, 2023

TAC Co.,Ltd Consolidated Financial Results for the Six Months Ended September 30, 2023

Consolidated Financial Results

for the Six Months Ended September 30, 2023

November 6 , 2023

Company name: TAC Co., Ltd.

Listing: Tokyo Stock Exchange

Company code number: 4319

URL: https://www.tac-school.co.jp

Representative: Toshio Tada, Representative Director

Contact: Shoji Nonaka, Manager of IR department Tel: [phone]

Scheduled date to commence dividend payments: December 4, 2023

Scheduled date to submit the annual securities report of the 2nd quarter: November 10, 2023

Supplemental information for financial statements: Yes

Results briefing session: Yes (for investors and analysts)

(Amounts rounded down to the nearest million yen)

1. Consolidated 2nd quarter results for the fiscal year ending March, 2024

(From April 1, 2023 to September 30, 2023)

(1) Consolidated financial results

(% indicates changes from the previous corresponding period)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

(Yen in millions)

％

(Yen in millions)

％

(Yen in millions)

％

(Yen in millions)

％

FY2023

10,125

-5.9

252

-73.1

226

-75.5

173

-71.7

(Apr.1,2023-Sep.30,2023)

FY2022

10,762

-3.5

941

-15.2

925

-19.9

614

-20.7

(Apr.1,2022-Sep.30,2022)

(Notes)Comprehensive income:FY2023(2023/9) 164 million yen (-73.4%) FY2022(2022/9) 617 million yen (-22.7%)

Profit per share

Fully diluted profit

per share

(Yen)

(Yen)

FY2023

9.59

－

(Apr.1,2023-Sep.30,2023)

FY2022

33.22

－

(Apr.1,2022-Sep.30,2022)

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

FY2023

(Yen in millions)

(Yen in millions)

％

21,372

6,312

29.5

(As of Sep.30,2023)

FY2022

20,795

6,203

29.8

(As of Mar.31,2023)

(Notes) Equity FY2023(2023/9)

6,303 million yen FY2022(2023/3)

6,194 million yen

2．Dividends

Annual dividends per share

1stquarter

2ndquarter

3rdquarter

4thquarter

Total

FY2022

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

(Apr.1,2022-Mar.31,2023)

－

3.00

－

3.00

6.00

FY2023

－

3.00

(Apr.1,2023-Mar.31,2024)

FY2023(Forecast)

－

3.00

6.00

(Note) Revision of dividend forecasts in the current quarter: None

3．Consolidated forecasts for March 2024 term (From April 1, 2023 to March 31,2024)

(% indicates changes from the previous corresponding period)

	Net sales	Operating profit	Ordinary profit	Profit attributable to	Profit per share
	owners of parent
	(Yen in millions)	％	(Yen in millions)	％	(Yen in millions)	％	(Yen in millions)	％	(Yen)
Full year	19,620	-0.5	380	19.1	330	1.7	210	-2.2	11.58

(Note) Revision of consolidated financial results forecasts: None

1

TAC Co.,Ltd Consolidated Financial Results for the Six Months Ended September 30, 2023

• Notes
• 1. Significant changes in scope of consolidation (Changes in consolidated subsidiaries): None
  2. Application of the simplified accounting method and/or the special accounting method for quarterly consolidated financial statements: None
  3. Changes in accounting policies, changes in accounting estimates, and restatements

(3)-1 Changes in accounting policies due to the revision of accounting standards: None

(3)-2 Changes in accounting policies other than (3)-1: None

(3)-3 Changes in accounting estimates: Yes

(3)-4 Restatements: None

(4)Number of shares issued (common stocks)

(4)-1 Number of shares issued at the end of the period (including treasury shares)

(4)-2 Number of treasury shares at the end of the period

(4)-3 Average number of shares during the period

FY2023	18,504,000	shares	FY2022	18,504,000	shares
2ndquarter
FY2023	370,168	shares	FY2022	370,168	shares
2ndquarter
FY2023	18,133,832	shares	FY2022	18,503,932	shares
2ndquarter	2ndquarter

• This "Consolidated Financial Results" are outside the scope of the audit.
• Explanation of proper use of financial forecasts and other special notes:

The above forecasts are based on the information available at this time and on assumptions deemed to be reasonable. Therefore, the actual financial results may differ significantly from the forcasts due to various factors.

2

TAC Co.,Ltd Consolidated Financial Results for the Six Months Ended September 30, 2023

(Table of contents of appendix)

1. Qualitative information on quarterly financial results
2. 1. Overview of operating results
   2. Overview of financial position
3. Quarterly consolidated financial statements and notes
4. 1. Quarterly consolidated balance sheet
   2. Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income
   3. Quarterly consolidated statement of cash flows
   4. Notes for quarterly consolidated financial statements(Going-Concern Assumption)
      (Notes on significant changes in the amount of shareholders' equity) (Changes in accounting estimates)
      (Segment information) (Revenue recognition)

3

TAC Co.,Ltd Consolidated Financial Results for the Six Months Ended September 30, 2023

1．Qualitative information on quarterly financial results

1. Overview of operating results

1. Overview of 2nd quarter

In the business of supporting acquisition of license qualifications, tuition fees are paid by the student upon application for a particular course. This constitutes net sales on a cash basis. Upon payment, the entire amount of tuition received is credited to advances received (liability) and reduced to recognize net sales on an accrual basis in the relevant accounting periods in which the service is provided to the student. While net sales recorded in the income statement are net sales on an accrual basis, for business management purposes we attach great importance to growth in net sales on a cash basis.

In the current period, net sales on a cash basis decreased 4.1%, or by ¥430 million, year on year to ¥9,989 million. Net sales on an accrual basis after adjustment of advances received decreased 5.9%, or by ¥636 million to ¥10,125 million.

Cost of sales increased 0.2%, or by ¥11 million year on year to ¥6,130 million. Selling, general and administrative expenses increased 1.1%, or by ¥40 million year on year to ¥3,741 million. In total, operating profit for the current period decreased 73.1%, or by ¥688 million year on year to ¥252 million.

Non-operating income of ¥11 million was recorded, including interest income of ¥3 million and gain on sale of investment securities of ¥3 million. Non-operating expenses of ¥38 million were posted including interest expenses of ¥16 million, foreign exchange losses of ¥6 million and share of loss of entities accounted for using equity method of ¥4 million. As a result, ordinary profit decreased 75.5%, or by ¥698 million year on year to ¥226 million.

In the current period, gain on liquidation of investment securities of ¥13 million and loss on valuation of investment securities of ¥6 million were posted as extraordinary income and extraordinary losses, respectively. As a result, profit decreased 71.6%, or by ¥440 million year on year to ¥174 million and profit attributable to owners of parent decreased 71.7%, or by ¥440 million year on year to ¥173 million.

Quarterly results of TAC Group are as shown below. Net sales before adjustment of advances received represent net sales totaling the amount paid upon registration. Net sales after adjustment of advances received represent net sales after allocating the amount paid upon registration to corresponding periods in accordance with provision of educational services.

License examinations covered by our educational courses have some notable features including (i) examinations of Certified Public Accountant and Certified Public Tax Accountant, our flagship, implemented from spring to autumn (1st to 3rd quarters) and (ii) registration to Public Officer courses, whose main clients are university students, concentrating in spring to summer (1st to 2nd quarters). Accordingly, registration for educational courses in the 4th quarter (net sales before adjustment of advances received) tends to be weaker compared to other quarters. Meanwhile, operating expenses including rent expenses, instructors' fees and advertising costs are allocated evenly to each month, causing no variance in quarterly results.

4

TAC Co.,Ltd Consolidated Financial Results for the Six Months Ended September 30, 2023

Changes in fiscal operating results between this year and last year:

FY2022	1stquarter		2ndquarter			3rdquarter		4thquarter		Total for FY2022
(Apr.2022-Mar.2023)	(April - June)	(July-September)	(October-December)	(January-March)	(Apr.2022-Mar.2023)
			%		Y-O-Y		%		Y-O-Y			%		Y-O-Y		%		Y-O-Y		%	Y-O-Y
		Yen in			%	Yen in			%		Yen in				%	Yen in			%	Yen in		%
Net sales (before	millions				millions					millions					millions				millions
4,739			93.9	5,680			95.5	4,309				95.0	4,566			99.0	19,295		95.8
adjustment of
tuition advances)
Adjustment of		836			121.7	-493			－	-122				－	196			75.7	416		127.9
tuition advances
Net sales (after	5,575	28.3		97.2	5,186	26.3		95.7	4,186		21.2		94.2	4,762	24.2		97.8	19,711	100.0	96.3
adjustment of
tuition advances)
Gross profit		2,431	43.6		98.2	2,212	42.7		96.9	1,212		29.0		89.9	1,876	39.4		109.9	7,732	39.2	99.0
Operating profit	549	9.9		88.3	391	7.6		80.2	-600		-14.3		－	-22	-0.5		－	319	1.6	77.2
Ordinary profit	534	9.6		85.0	390	7.5		74.2	-572		-13.7		－	-27	-0.6		－	324	1.6	73.3
Profit attributable	351	6.3		81.2	263	5.1		76.8	-410		-9.8		－	10	0.2		－	214	1.1	48.3
to owners of parent
Net profit per share	Yen				Yen					Yen					Yen				Yen
18.98				14.24					-22.42					0.59				11.69
(Notes)	1．Percentage of quarterly net sales stated as a proportion of total net sales.
	2．Other percentages stated as a proportion of quarterly net sales.
FY2023	1stquarter		2ndquarter
(Apr.2023-Mar.2024)	(April - June)	(July-September)
			%		Y-O-Y		%		Y-O-Y
		Yen in			%	Yen in			%
Net sales (before	millions				millions
adjustment of		4,443			93.7	5,546			97.7
tuition advances)
Adjustment of		763			91.3	-627			－
tuition advances
Net sales (after
adjustment of		5,206	－		93.4	4,919	－		94.8
tuition advances)
Gross profit		2,050	39.4		84.4	1,943	39.5		87.9
Operating profit	123	2.4		22.4	129	2.6		33.0
Ordinary profit	106	2.0		19.9	120	2.4		30.9
Profit attributable	83	1.6		23.7	90	1.8		34.4
to owners of parent
Net profit per share	Yen				Yen
4.59				5.00
(Notes)	1．Percentage of quarterly net sales stated as a proportion of total net sales.
	2．Other percentages stated as a proportion of quarterly net sales.

(B) Segment-related information

Operating performance (net sales on a cash basis) and an overview of each segment of TAC group in the current period is as shown below. With regards to segment information, TAC introduced a management approach by adopting "Accounting Standards for the Disclosure of Segment Information". Accordingly, sales data are presented in the following tables as "net sales on a cash basis before adjustment of advances received" so as to reflect management decision-making of TAC group in a more appropriate manner. Please note that net sales on a cash basis are different from net sales shown on the consolidated quarterly income statement. For details, please refer to "Segment information" on page 19.

Segment information		2nd quarter of FY2022			2nd quarter of FY2023
	Percentage	Y-O-Y			Percentage		Y-O-Y
	Yen in millions	%	%	Yen in millions	%	%
Personal Education	5,632	54.1	92.2	5,404		54.1		96.0
Corporate Training	2,367	22.7	102.7	2,418		24.2		102.1
Publishing	2,130	20.4	92.4	1,867		18.7		87.7
Manpower Business	315	3.0	104.4	319		3.2		101.1
Eliminations	-26	-0.2	―	-19		-0.2		―
Total	10,419	100.0	94.8	9,989		100.0		95.9
			5

TAC Co.,Ltd Consolidated Financial Results for the Six Months Ended September 30, 2023

Personal Education

While the motivation of working people to learn has recovered after the COVID-19 disaster, private companies have been actively recruiting younger employees in anticipation of future economic recovery. As a result, student applications for our educational courses remained weak, resulting in a decrease in sales on a cash basis for this segment as a whole compared to the same term last year. Sales of IT Specialist course remained strong due to growing IT-related demand. Certified Public Tax Accountant course, which was positively impacted by the change in the testing system and the tax reform, maintained strong sales for the first quarter and grew year-over-year. In addition to the Labor and Social Security Attorney course, which saw a recovery in applications in the second quarter, educational courses such as Small and Medium Enterprise Management Consultant, Real Estate Transaction Agent, Judicial Scrivener, Certified Administrative Procedures Legal Specialist, and others also experienced strong sales. Meanwhile, educational courses mainly for college students including Certified Public Accountant and Public Officer declined year on year and Bookkeeping, Real Estate Appraiser and Architects and Building Engineers remained weak. Operating expenses such as instructors' fees, outsourcing expenses related to production of educational materials and rent expenses decreased 0.4% year on year to ¥5,633 million. In total, net sales of this segment on a cash basis decreased 4.0% year on year to ¥5,404 million and an operating loss on a cash basis of ¥229 million was recorded (an operating loss on a cash basis of ¥22 million recorded in the same term last year).

FY2022	1stquarter		2ndquarter		3rdquarter			4thquarter		Total for FY2022
(Apr.2022-Mar.2023)	(April - June)	(July-September)	(October-December)	(January-March)	(Apr.2022-Mar.2023)
			%		Y-O-Y		%		Y-O-Y			%		Y-O-Y			%		Y-O-Y		%	Y-O-Y
Net sales		Yen in			%	Yen in			%	Yen in				%	Yen in				%	Yen in		%
	millions				millions				millions					millions					millions
(cash basis)		2,332	23.4		88.9	3,300	33.1		94.6	2,170		21.8		92.8	2,171		21.8		92.5	9,974	100.0	92.4
Operating expenses	2,871	123.1		97.7	2,783	84.3		94.8	2,673		123.2		94.8	2,720		125.3		90.7	11,048	110.8	94.5
Operating profit	-539	-23.1		－	516	15.7		93.8	-502		-23.2		－	-549		-25.3		－	-1,074	-10.8	－
(cash basis)
Adjustment of tuition	826	26.2		118.9	-464	-16.4		－	-117		-5.7		－	166		7.1		75.8	411	4.0	123.8
advances
Net sales		3,158	30.4		95.2	2,835	27.3		94.9	2,052		19.8		91.0	2,337		22.5		91.1	10,385	100.0	93.3
(accrual basis)
Operating profit	287	9.1		75.6	52	1.9		98.5	-620		-30.2		－	-383		-16.4		－	-663	-6.4	－
(accrual basis)
(Notes)	1．Percentage of quarterly net sales stated as a proportion of total net sales.
	2．Other percentages stated as a proportion of quarterly net sales.
	3．Operating expenses that are not allocable are excluded for the calculation of operating expenses and operating profit.
FY2023	1stquarter		2ndquarter
(Apr.2023-Mar.2024)	(April - June)	(July-September)
			%		Y-O-Y		%		Y-O-Y
		Yen in			%	Yen in			%
Net sales		millions				millions
(cash basis)		2,144	－		92.0	3,259	－		98.8
Operating expenses	2,885	134.5		100.5	2,747	84.3		98.7
Operating profit	-740	-34.5		－	511	15.7		98.9
(cash basis)
Adjustment of tuition	760	26.2		91.9	-596	-22.4		－
advances
Net sales		2,904	－		92.0	2,662	－		93.9
(accrual basis)
Operating profit	19	0.7		6.8	-85	-3.2		－
(accrual basis)
(Notes)	1．Percentage of quarterly net sales stated as a proportion of total net sales.
	2．Other percentages stated as a proportion of quarterly net sales.
	3．Operating expenses that are not allocable are excluded for the calculation of operating expenses and operating profit.

6

TAC Co.,Ltd Consolidated Financial Results for the Six Months Ended September 30, 2023

Corporate Training

Our corporate training programs have continued to perform well since the first quarter. In terms of trends by license area, the IT & International area was strong, driven by demand from digital transformation. Programs in Financial Services & Real Estate, our flagship area, and Finance & Accounting, as well as programs related to electricity and equipment, remained strong and exceeded sales in the same period last year. In-university seminars, which performed well in the previous quarter, were slightly lower due to the timing of implementation of training programs. Sales were down in business at affiliated schools whose main clients are individual customers residing in those areas (-7.6% YoY), provision of educational contents to colleges in local cities (-0.5% YoY), and training programs consigned by local governments (-1.0% YoY). Operating expenses increased 2.7% year on year to ¥1,796 million. In total, net sales of this segment on a cash basis increased 2.1% year on year to ¥2,418 million and operating profit on a cash basis increased 0.5% year on year to ¥621 million.

FY2022		1stquarter			2ndquarter		3rdquarter			4thquarter		Total for FY2022
(Apr.2022-Mar.2023)	(April - June)	(July-September)	(October-December)	(January-March)	(Apr.2022-Mar.2023)
				%		Y-O-Y			%		Y-O-Y			%		Y-O-Y			%		Y-O-Y		%	Y-O-Y
Net sales		Yen in				%	Yen in				%	Yen in				%	Yen in				%	Yen in		%
	millions					millions					millions					millions					millions
(cash basis)	1,196		27.1		104.3	1,171		26.5		101.1	1,036		23.4		95.4	1,019		23.0		103.9	4,423	100.0	101.2
Operating expenses	879		73.5		101.7	869		74.2		105.1	875		84.5		102.7	832		81.6		106.3	3,457	78.2	103.9
Operating profit	316		26.5		112.3	301		25.8		91.2	160		15.5		68.9	187		18.4		94.6	966	21.8	92.6
(cash basis)
Adjustment of tuition	9		0.8		－	-29		-2.5		－	-5		-0.5		－	29		2.8		75.0	4	0.1	－
advances
Net sales		1,205		27.2		105.8	1,142		25.8		101.3	1,031		23.3		95.6	1,049		23.7		102.8	4,428	100.0	101.4
(accrual basis)
Operating profit	326		27.0		119.0	272		23.9		90.8	155		15.1		69.0	216		20.7		91.3	971	21.9	93.6
(accrual basis)
(Notes)	1．Percentage of quarterly net sales stated as a proportion of total net sales.
	2．Other percentages stated as a proportion of quarterly net sales.
	3．Operating expenses that are not allocable are excluded for the calculation of operating expenses and operating profit.
FY2023		1stquarter			2ndquarter
(Apr.2023-Mar.2024)	(April - June)	(July-September)
				%		Y-O-Y			%		Y-O-Y
Net sales		Yen in				%	Yen in				%
	millions					millions
(cash basis)	1,225		－		102.4	1,192		－		101.8
Operating expenses	907		74.1		103.2	889		74.6		102.3
Operating profit	317		25.9		100.3	303		25.5		100.6
(cash basis)
Adjustment of tuition	3		0.3		37.1	-31		-2.7		－
advances
Net sales		1,229		－		101.9	1,161		－		101.7
(accrual basis)
Operating profit	321		26.1		98.5	272		23.4		99.9
(accrual basis)
(Notes)	1．Percentage of quarterly net sales stated as a proportion of total net sales.
	2．Other percentages stated as a proportion of quarterly net sales.
	3．Operating expenses that are not allocable are excluded for the calculation of operating expenses and operating profit.

7

TAC Co.,Ltd Consolidated Financial Results for the Six Months Ended September 30, 2023

Publishing

We have been proceeding with our business under a dual framework of "TAC Publishing" and "W Seminar" of Waseda Management Publishing Co., Ltd., which is our subsidiary (hereafter referred to as "W Publishing").

Although the publishing business showed signs of a gradual recovery, it was not enough to make up for the decline in the previous quarter, which was affected by the reduction of "demand from staying at home". As a result, sales in this segment declined year on year. Among the books for qualification exams, Labor and Social Security Attorney, published by TAC Publishing, and Patent Attorney, published by W Publishing, showed growth year on year. Meanwhile, books for Bookkeeping, Real Estate Transaction Agent, Financial Planner and Licensed Strata Management Consultant were lower year on year. Travel guides, on the other hand, remained strong due to the launch of a new series and increased travel demand during the summer holidays. Operating expenses increased 0.9% year on year to ¥1,555 million. As a result, net sales of this segment decreased 12.3% year on year to ¥1,867 million and operating profit decreased 47.0% year on year to ¥311 million.

	FY2022	1stquarter		2ndquarter		3rdquarter			4thquarter		Total for FY2022
	(Apr.2022-Mar.2023)	(April - June)	(July-September)	(October-December)	(January-March)	(Apr.2022-Mar.2023)
					%		Y-O-Y		%		Y-O-Y			%		Y-O-Y			%		Y-O-Y		%	Y-O-Y
	Net sales		Yen in					%	Yen in				%	Yen in				%	Yen in				%	Yen in		%
		millions						millions					millions					millions					millions
	(cash basis)	1,074		24.3		94.1	1,056	23.9		90.6	985		22.3		99.6	1,310		29.6		107.6	4,426	100.0	98.1
	Operating expenses	836		77.8		93.0	706	66.9		93.7	849		86.2		103.9	818		62.4		88.2	3,209	72.5	94.5
	Operating profit	238		22.2		98.2	349	33.1		84.9	136		13.8		78.9	492		37.6		169.8	1,216	27.5	109.0
	(cash basis)
	Adjustment of	－			－		－	－		－		－	－		－		－	－		－		－	－	－	－
	tuition advances
	Net sales		1,074		24.3		94.1	1,056	23.9		90.6	985		22.3		99.6	1,310		29.6		107.6	4,426	100.0	98.1
	(accrual basis)
	Operating profit	238		22.2		98.2	349	33.1		84.9	136		13.8		78.9	492		37.6		169.8	1,216	27.5	109.0
	(accrual basis)
(Notes)	1．Percentage of quarterly net sales stated as a proportion of total net sales.
		2．Other percentages stated as a proportion of quarterly net sales.
		3．Operating expenses that are not allocable are excluded for the calculation of operating expenses and operating profit.
	FY2023		1stquarter		2ndquarter
	(Apr.2023-Mar.2024)	(April - June)	(July-September)
					%		Y-O-Y			%	Y-O-Y
	Net sales		Yen in					%	Yen in				%
		millions						millions
	(cash basis)	922			－		85.9	944		－		89.5
	Operating expenses	851		92.3		101.8	704		74.6		99.7
	Operating profit	71			7.7		29.9	240		25.4		68.7
	(cash basis)
	Adjustment of	－			－		－	－		－		－
	tuition advances
	Net sales		922			－		85.9	944		－		89.5
	(accrual basis)
	Operating profit	71			7.7		29.9	240		25.4		68.7
	(accrual basis)
(Notes)	1．Percentage of quarterly net sales stated as a proportion of total net sales.
		2．Other percentages stated as a proportion of quarterly net sales.
		3．Operating expenses that are not allocable are excluded for the calculation of operating expenses and operating profit.

8

TAC Co.,Ltd Consolidated Financial Results for the Six Months Ended September 30, 2023

Manpower Business

As to the introduction and dispatch business of accounting personnel assumed by TAC Profession Bank, our subsidiary, demand for accounting personnel in audit firms, tax accountant corporations and private companies remained strong and advertising and introduction business continued to be strong from the previous quarter. As to the introduction and dispatch business of medical office staffing and nurses assumed by Medical Office Staffing Kansai Co., Ltd., sales declined year on year in the previous quarter due to the decline in COVID19-related business, but sales in the current period recovered to the same level as in the same period last year. However, operating profit decreased due to the impact of higher operating expenses, such as personnel costs. As a result, net sales of this segment increased 1.1% year on year to ¥319 million and operating profit increased 2.2% year on year to ¥84 million.

FY2022	1stquarter		2ndquarter		3rdquarter		4thquarter		Total for FY2022
(Apr.2022-Mar.2023)	(April - June)	(July-September)	(October-December)	(January-March)	(Apr.2022-Mar.2023)
			%		Y-O-Y		%		Y-O-Y			%		Y-O-Y		%		Y-O-Y		%	Y-O-Y
Net sales		Yen in			%	Yen in			%	Yen in				%	Yen in			%	Yen in		%
	millions				millions				millions					millions				millions
(cash basis)		144	27.9		99.6	171	33.1		108.7	129		25.0		98.0	72	14.0		92.9	517	100.0	101.0
Operating expenses	112	77.6		105.9	121	70.7		98.6	109		84.5		95.2	105	145.0		101.8	447	86.5	100.2
Operating profit	32	22.4		82.8	50	29.3		144.7	20		15.5		116.9	-32	-45.0		－	70	13.5	106.5
(cash basis)
Adjustment of		－	－		－	－	－		－	－		－		－	－	－		－	－	－	－
tuition advances
Net sales		144	27.9		99.6	171	33.1		108.7	129		25.0		98.0	72	14.0		92.9	517	100.0	101.0
(accrual basis)
Operating profit	32	22.4		82.8	50	29.3		144.7	20		15.5		116.9	-32	-45.0		－	70	13.5	106.5
(accrual basis)
(Notes)	1．Percentage of quarterly net sales stated as a proportion of total net sales.
	2．Other percentages stated as a proportion of quarterly net sales.
	3．Operating expenses that are not allocable are excluded for the calculation of operating expenses and operating profit.
FY2023	1stquarter		2ndquarter
(Apr.2023-Mar.2024)	(April - June)	(July-September)
			%		Y-O-Y		%		Y-O-Y
Net sales		Yen in			%	Yen in			%
	millions				millions
(cash basis)		154	－		107.2	164	－		96.0
Operating expenses	109	70.6		97.5	125	76.4		103.7
Operating profit	45	29.4		140.8	38	23.6		77.3
(cash basis)
Adjustment of		－	－		－	－	－		－
tuition advances
Net sales		154	－		107.2	164	－		96.0
(accrual basis)
Operating profit	45	29.4		140.8	38	23.6		77.3
(accrual basis)
(Notes)	1．Percentage of quarterly net sales stated as a proportion of total net sales.
	2．Other percentages stated as a proportion of quarterly net sales.
	3．Operating expenses that are not allocable are excluded for the calculation of operating expenses and operating profit.

9

TAC Co.,Ltd Consolidated Financial Results for the Six Months Ended September 30, 2023

(C) Number of students

In the current period, the number of students increased 2.7% year on year to 128,895 including individual members of 74,158 (-0.4% YoY, or -264) and corporate members of 54,737 (+7.1% YoY, or +3,610). Regarding the number of individual and corporate members combined, a number of educational courses marked increases, including Certified Public Tax Accountant (+5.9%), Real Estate Transaction Agent (+7.8%), Financial Planner (+9.8%) and IT Specialist (+23.2%). Meanwhile, Bookkeeping (-4.5%), Certified Public Accountant (-4.4%), Architects and Building Engineers (- 5.7%) and Government Officials (RS&LG)* (-10.8%) marked decreases. As to the number of corporate members, correspondence courses for corporate training programs increased 12.7%. In-university seminars and affiliated schools decreased 6.0% and 5.1%, respectively. Consigned training programs increased 1.1%.

* Regular Service & Local Government

					Increase (decrease)
		Individual members	Corporate members	Total	over the previous	Year on year
					year
						%
	FY2013	140,016	62,627	202,643	+713	100.4
	FY2014	130,147	64,507	194,654	-7,989	96.1
	FY2015	135,995	69,471	205,466	+10,812	105.6
	FY2016	138,230	73,584	211,814	+6,348	103.1
	FY2017	136,324	83,254	219,578	+7,764	103.7
	FY2018	131,119	84,450	215,569	-4,009	98.2
	FY2019	126,000	81,118	207,118	-8,451	96.1
	FY2020	120,068	88,519	208,587	+1,469	100.7
	FY2021	118,238	86,973	205,211	-3,376	98.4
	FY2022	112,628	84,078	196,706	-8,505	95.9
	Total for 10 years	1,288,765	778,581	2,067,346	―	―
	(Distribution %)	(62.3%)	(37.7%)	(100.0%)
	2ndquarter of FY2023	74,158	54,737	128,895
	(April - September)	+3,346	102.7%
	[99.6％]	[107.1％]	[102.7％]
	[Y-O-Y]
	2ndquarter of FY2022	74,422	51,127	125,549
	(April - September)	-5,865	95.5%
	[95.1％]	[96.2％]	[95.5％]
	[Y-O-Y]

10