MEIKO Network Japan Co., Ltd

(September 1, 2012, through February 28, 2013)

MEIKO Network Japan Co., Ltd.

April 10, 2013 Hirotake Watanabe, President Highlights of 2Q of the year ending August 2013 (consolidated) (Unit：million yen)

2Q of FY 2013 YoY Against plan

Net sales 7,680 +494 (+6.9%) △218 (△2.8%)

Ordinary income 2,189 +187 (()+9.4%) +185 (＋9.2%)

2Q Net Income 1,331 +208 (+18.6%) +140 (＋11.8%) (Cumulative)

 Growth in sales and earnings and record high performance  [Meiko Gijuku] [as of February 2013] 2,097 schools (up 47 on a year-on-year basis) and 140,688 registered students (down 1,814 on a year-on-year basis)  YouDEC has been consolidated from this period.

2 Net sales / Ordinary income (2Q)

(Million yen) (Million yen)

Net sales Ordinary income 10,000 2,500 ■ 2,091 2,189 Summary 9,000 20022,002 Recorded all -time high 8,000 1,839 2,000 sales. Ordinary income 7,000 1,594 60006,000 15001,500 ■ Profitability 5,000 Achieved net sales and 4,000 1,000 ordinary income of 7,186 7,680 6,480 7,056 28. 5% (up 0. 6 points 3,000 5,930 from the same period 2,000 500 the previous year). 10001,000 0 0 FY09 FY10 FY11 FY12 FY13 (2Q) (2Q) (2Q) (2Q) (2Q)

Ordinary income ratio 26.9 % 28.4 % 29.6 % 27.9% 28.5%

Non- Consolidated consolidated 3 Financial summary of 2Q of FY 2013 (consolidated P/L)

(milli on yen ) Sales YoY 2Q FY 2012 2Q FY 2013 ・Sales from You DEC Co., Ltd.: Change Percentage change Net sales 71867,186 76807,680 +494 +6.9% 302 million yen Cost of sales 4,011 4,351 +340 +8.5% ・Increase in sales from new businesses: 89 Cost of sales per sales (%) 55.8% 56.7% +0.9pt million yen Gross profit 3,174 3,328 154 +4.9% YoY:(1765%): (176.5%) Gross profit ratio (%) 44.2% 43.3% △ 0.9pt Selling, general and ・Increase in sales from teaching materials administrative expenses 1,256 1,240 -16 △1.3% SGA per sales (%) 17.5% 16.1% △1.4pt Selling Cost Operating income 1,918 2,088 170 +8.9% ・Purchase/personnel expenses of You DEC Operating income ratio (%) 26.7% 27.2% +0.5pt Ordinary income 2,002 2,189 187 +9.4% Co., Ltd. Ordinary income ratio (%) 27.9% 28.5% +0.6pt ・Increase in ppgurchase of teaching materials Extraordinary income －－－－ Extraordinary losses －5－－SGA 1,122 1,331 208 +18.6% Net income ・A major contribution to advertising expenses Net income ratio (%) 15.6% 17.3% +1.7pt for SGA in the last second quarter as a result of the move and redesign

4 Financial summary of 2Q of FY 2013 (consolidated B/S)

(million yen)

From the end of the previous term Aug-12 Feb-13 Assets Change Percentage change Current assets 78907,890 87598,759 +868 +11.0% ・Increase in cash and Property, Plant and deposits (retained equipment 718 719 +1 +0.2% earnings) Intangible assets 313 305 (8) △2.6% Investments and up 917 million yen other assets 6,271 6,417 145 +2.3% Total assets 15,195 16,202 1,007 +6.6% Liabilities Current liabilities 2,713 4,204 1,490 +54.9% ・Amounts due within one Noncurrent liabilities 2,331 699 (1,631) △70.0% year on long-term loans Total liabilities 50455,045 49044,904 (141) △2.8% payable → current Total net assets 10,149 11,298 1,149 +11.3% liabilities Total liabilities and net assets 15,195 16,202 1,007 +6.6% *Capital-to-asset ratio: 69.5% (up 2.9 point)

5 Financial summary of 2Q of FY 2013 (consolidated C/F)

(million yen) Change f rom the Q2 FY 2011 Q2 FY 2012 same period of the Operating activities prev ious y ear Produced 1,,y247 million yen Net cash prov ided by (used in) operating activ ities 1,293 1,247 △46 via ongoing solid performance

Net cash prov ided by (used Investments i)iin) inv es ting ac tiititiv ities 5 △49 △55 Purchase of software (soccer Net cash prov ided by (used school, the new system of in) f inancing activ ities △828 △356 +471 Waseda Academy Kobetsu Net increase (decrease) in School), etc. cash and cash equiv alents 471 841 +369

Cash and cash equiv alents Financing activities at beginning of period 41734,173 4, 431 +257 Dividend paid: down 361

Cash and cash equiv alents million yen at end of period 4,644 5,272 +627

6 Sales and Operating Income by Segment

(Unit: million yen)

Direct business by Meiko Gijuku FC New Business Other company- Cram School Business Across the board Meiko Gijuku Business *1 related expenses*2 Sales 35043,504 33713,371 295 509 76807,680 (change from previous quarter) (△11) (+90) (+22) (+392) (+494) 2Q FY Operating Income 907 1,766 2 △68 △519 2,088 2013 (change from previous quarter) (+113) (+20) (+8) (△9) (+38) (+170) Operating income margin 25.9% 52.4% 1.0% - 27.2%

Sales 3,515 3,281 272 116 7,186 2Q FY Operating Income 794 17451,745 △5 △58 △557 19181,918 2012 Operating income margin 22.6% 53.2% - - 26.7%

*1. Waseda Academy, Kobetsu School, Meiko Soccer School,Meiko Kids, Abrakadoodle, Meiko ALC English Studio, You DEC Co., Ltd.(consolidated subsidiary) *2. Expenses for the Administration Division of the head office,etc.

7 Meiko Gijuku directly-operated businesses

(million yen) Sales Operatiiing income 4,000 ■Number of schools: down 10 ・Up 1 due to the transfer from the franchised 3,000 3,515 3,504 business, down 11 due to the transfer to the franchised business 2,000 ■Sales: down 0.3% ・ Decline in the number of schools 907 1,000 794 ・ Increase ibfitdin average number of registered students ・ Slight decline in a revenue per registered 0 student 2Q FY 2012 2Q FY 2013 ■Expense and selling expense: （Unit：schools、people、thousand yen） down 12% 2Q FY 2012 2Q FY 2013 YOY Oppgerating income: u p 14% Number of schools 215 205 △10 ・ Decline in expense due to a decline in the Number of students 16,204 16,067 △137 number of schools Average number 75.4 78.4 +3.0 ・ Decline in expenses associated with the of students move and redesign on a y-o-y basis Average sales per 220 215 △5 student

8 Meiko Gijuku franchise business

(million yen) Sales Operating income 4,000 ■Number of schools: up 57 3,000 3,281 3,371 ・60 ne wl y established , 11 transferred 1,745 1,766 from the company-owned school 2,000 business, down 1 due to the transfer to the comppyany-owned school 1,000 business, down 13 due to closings

0 ■Sales: up 2.8% 2Q FY 2012 2Q FY 2013 ・ Increase in the number of classes （Unit：schools、people、million yen）・ Decline in average number of 2Q FY 2012 2Q FY 2013 YoY registered students and average NbN um b er o f sc hlhoo ls 18351 ,835 1, 892892 + 57 royalty per school Number of students 126,298 124,621 △1,677 ・ Increase in sales from training Average number 68.8 65.9 △2.9 materials of students Royalty revenues revenues 22032 ,203 2, 192192 △11 ■Operating income: up Average royalty revenues per school 1,218 1,167 △51 1.2% （Unit：thousand yen） 9 Medical Cram School Bussiness （ Tokyo Ishin Gakuin） ■Sales: up 8% (Unit: million yen) Operating income: returned to ＦＹ12（2Ｑ）ＦＹ13（2Ｑ） the black

Results Forecast Results Difference with the forecast ・ Increase in participants in the winter training camp Sales 272.7 270.6 295.0 +24.4 ・ Strengthening the special lectures Operating ■RdReduc tion in fidfixed cost income △5.7 △31.6 2.9 +34.5 ・Closed the Tamagawa boarding school (at the end of March) for integration into Mitaka school ・Moved Geneki Kan to the headquarters building ■Number of registered students: Increase in new students Up 20% y-o-y in news students for the spriting term ( as of fAil7) April 7)

[Obligatory dormitory system] Mitaka School 10 Soccer school for kids under direction of professional coaches

Other Business （ Meiko Soccer School）

（Unit：million yen） yen） Difference ■Aggressive opening of school FY12 FY12 FY13 with the ・Newly established for this second quarter: 3, (4Q) (2Q) （2Ｑ forecast transferred: 2 Sales 48 104 60 12 ・Opening of two schools for March resulted in a （Unit：schools, people） current total of 14. Number of 4 7 12 8 ■ Soccer event held (in Thailand) schools ・ MEIKO Football Academyyg in Bangkok （〃FC) (0) (1) (2) (2) Held on November 17, 2012, at the same time of Number of the FIFA Futsal World Cup with participation by 655 708 900 245 190 students

11 Individual tutoring schools for students with high academic performance Other Business （Waseda Academy Kobetsu School）（Unit：million yen） Difference FY12 FY12 FY13 with the ■Expansion of FC business: Opened (2Q) (4Q) （2Ｑ) forecast five schools for this period Sales 199 61 132 +71 ・Opening of one school for April resulted in a total （Unit：schools、people） of fifteen schools now (two company-owned and Number of 2 9 14 +12 thirteen in the franchise) schools ※ Number of schools totals nineteen including schools owned by （〃 FC) (0) (7) (12) (+12) WdAdWaseda Academy Number of 186 334 457 +271 ■Performance of entrance students ※ ※In addition to the above, number of schools totals Many students passed the difficult- four ownedowned by by Waseda Waseda Academy Academy to-enter schools. ・Waseda University Junior High School, Waseda Junior High School, Joshigakuin Junior High School, Toshimagaoka-joshigakuen, Junior High School of Ochanomizu University, etc. ・SiHihShlftOtkUiSenior High School of at Otsuka, Univers itfTkbKiility of Tsukuba, Keio girls Senior High School, Keio Senior High School, Keio Shiki Senior High School, Waseda Jitsugyo, Waseda University Honjo Senior High School, Hibiya High School, Urawa High School, ICU, etc. ・Waseda University, Sophia University, Ochanomizu University, Meiji University, Chuo University, Rikkyo University, Hosei University, Tokyo University of Science, etc. (including performance of schools owned by Waseda Academy) 12 Extended-hours schools

Other Business （Meiko Kids）

（Unit：million yen） FY12 FY12 FY13 Difference ■Offering services becoming with the (2Q) (4Q) （2Ｑ) forecast established Sales 4 12 6 2 ・Care services for elementary schoolchildren （Unit：schools、 people）people）・CiCramming serv ifltices for elementary Number of schools 1 1 1 0 schoolchildren (lower classes) Number of students 69 52 71 19 ■Number of registered students: Increase in newly Pre-kids ※ 1 5 45 44 registered students ※children preschool age and younger ・110 subscribers to enter the schools in April ・A pickup service scheduled to start in April

Entrance Return home Assignment Teatime Events Cleaning Kids meeting Learning (reception) (extended) A day of Meiko kids 13 Art education program for young children ranging in age from infants to elementary school children and English school for children

Other Business （ Mirai Kids Club ）

（Unit：millionyen） FY12 FY12 FY13 Difference ■Business model is under with the (2Q) (4Q) （2Ｑ) forecast construction Sales 1.6 7.7 7.3 5.7 （Unit：schools、people）・Expansion of schools Number of Sudio 1 3 3 2 More than 90 students in Kamisyakujii Park Number of school 26 134 140 114 students A hybrid model of art and English programs is under construction in Center Kita school ・Expansion of schools at culture centers A school in Shinjuku Isetan will be followed by that in Ginza Otona Juku (in April)

14 Other Business （You DEC Co., Ltd. ： consolidated subsidiary）（Unit：million yen） ■Issuance of the exam related- FY12 FY12 FY13 Difference with the information magazine Gakuan (2Q) (4Q) （2Ｑ) forecast Sales 328 ・Number one in Kansai area in terms of sales volume Operating 7 ■Increase in schools within the income campus (Unit：schools）・Three orders received for this period resulted Schools within 12 15 in entering into 15 schools in total the campus ■Practice examinations ・Aggressive sales expansion of practice examination for schools ・Conducting Meiko Gijuku universal test ■Sale of training materials for schools

15 Other Business （Unit：million yen） FY2012 FY2013 (2Q) ■Sa les: up 338% Difference Results Plan Results from the Operating loss: within forecast planned Sales 116 529 509 △20 ・[The company: New businesses] Meiko Soccer School 48 57 60 +3Meiko Soccer School Waseda Academy Kobetsu School Waseda Academy Kobetsu School 61 131 132 +1Meiko Kids Mirai Kids (Abrakadoodle, Meiko-ALC Meiko Kids 4 5 6 +1English Studio) Meiko Plus Academy (New) Mirai Kids Club（Abrakadoodle、 1 10 7 △3 Meiko ALC English Studio） Individual tutoring school for Korean was opened in Wakamatsu-cho, Shinjuku-ku, Tokyo for February. subtotal 114 205 205 +2 ・[Conso lidat ed sub sidi ary] You DEC Co., Ltd.※ 324 303 △21 YouDEC Co., Ltd. Operaitng income △58 △69 △68 +1 Consolidated from this period (holding 63.1% of shares)

16 Medium-term Management plan （FY2011～FY2013 three-year）

＜Basic Strategy＞ Figure of new growth path

1. Establish a new growth path Growth driven by new businesses for the business of Meiko Gijuku. (new growth path) 2. Establish new business - Expand the customer base - Meiko Gijuku (growth 3. Promote the implementation of driven by increases organizational reforms and the in number of schools) development human resources to 2007 2010 2013 2020 support thhhhe new growth path

17 Earnings forecasts for fiscal year ending

August 2013 (Unit: million yen)

2Q Full year Complete Plan Actual resultsAgainst plan Plan percentage Sales 7,898 7,680 △ 218 △2.8% 15,938 48.2% Ordinary income 2,004 2,189 +185 9.2% 3,893 56.2% Net income 1,191 1,331 +140 11.8% 2,323 57.3% Earnings per share (EPS) 43.17yen 48.25yen 5.08 yen 84.23yen 57.3% Dividends 13yen 13yen 27yen

No change in initial plan of earnings forecasts for full year Plans remain in pppylace to pay a cash dividend per share of ¥27

18 Dividends (Reference) (Estimates)

FY08 FY09 FY10 FY11 FY12 FY13

Dividends per share 17.0 yen 18.0 yen 20.0 yen 22.0 yen 25.0 yen 27.0 yen (Interim dividend per (7. 0 yen ) (9. 0 yen ) (9. 0 yen ) (10. 0 yen ) (12. 0 yen ) (13. 0 yen ) share included)

yen Dividends per share (()Estimates) 30 25 20 15 27.0 10 18.0 20.0 22.0 25.0 5 17.0 0 FY08 FY09 FY10 FY11 FY12 FY13 The Company has increased dividends for 14 consecutive terms since the year following its listing on JASDAQ in April 1997 (taking stock splits into account). 19 Contact information

Corporate Planning Department T. Takahashi / M.Miyawaki TEL +81(3)-5860-2111 FAX +81(3)- 5332-7091 E-mail：[email protected] Website：http://www.meikonet.co.jp/

The document is designed to provide information on operating results for the second quarter of the fiscal year ending August 2012 and not to solicit investments in securities issued by the company. This report is based on data as of end of February 2012.Opinions and estimates described in the document are our judgments as of its preparation and does not guarantee or promise the accuracy and completeness of those information. This document may be changed without notice.