Business Overview 4. DX Regional Collaboration Project Signpost's DX and Regional Collaboration Project started in March 2022 with the establishment of the DX and Regional Collaboration Division. It aims to provide products and services that contribute to regional collaboration by collaborating with local financial institutions nationwide, utilizing its own DX technology and open innovation. In August 2022, it began working with Oita Made Co., Ltd., which was established with the investment of multiple companies in Oita Prefecture, including Oita Bank, to sell original products made in Oita Prefecture to both domestic and overseas markets and to match local companies and Signpost's products and services in order to promote the revitalization of Oita Prefecture's economy. In addition, in April 2024, it started offering DX support services for medium-sized and small businesses. As the first effort, it supports the creation of DX declaration by (The) Fourth Hokuriku Bank, Ltd. (Niigata City, Niigata Prefecture) to deploy DX declaration support services to the market. Furthermore, it will realize new solutions by commercializing its own technology and open innovation and promote regional collaboration through innovation.

Jyonan Shingaku Kenkyusha (4720) opened the "Jyonan Yobiko" in Kawasaki City in 1961 as a comprehensive prep school for university entrance exams and high school supplementary classes. Since then, the company expanded its schools in Kanagawa Prefecture and started the individual instruction school "Jyonan COBEZZ" in 2002, the video lesson classroom "KawaiJuku Manabisu" in 2008, the brain training school "Kubota no uken" (changed to "Kubota no uken" and "Atama GYM" from April 2024 onwards) in 2009, and the nursery school "Jyonan Ruminah Hoikuen" and expanded its service area in 2011. Since 2013, the company has been consolidating companies operating nursery schools, English education, and sports clubs through mergers and acquisitions, and has been expanding its business as a comprehensive education solution company.

Due to changes in the market environment such as declining birthrates, the services of the core business, "Jyonan Yobiko," were terminated at the end of March 2020, and the breakdown of sales by division has changed significantly in recent years. The children's education division (including nursery schools), which accounted for 23.2% of the total in the fiscal year ending March 2020, grew to 33.0% in the fiscal year ending March 2024, surpassing the video education division as the largest division. On the other hand, the individual instruction division declined from 30.2% to 22.3% due to the continued decrease in the number of high school students.

The main services currently provided by the company include the individual instruction school "Jyonan COBEZZ," which is directly operated and franchised by the company, and the video lesson education classroom "KawaiJuku Manabisu," which is offered as a franchisee. In the field of infant and child education, the company provides multiple education services such as "Kubota no uken," "Atama GYM," "Zoo Phonics Academy," and "Ringo Juku," as well as operating the nursery school "Jyonan Ruminah Hoikuen."

In addition, as a digital teaching materials and solution business, the company sells online learning materials using ICT, such as "Dekitas" and "Dekitas Comyu (exercise problems)," to elementary and junior high schools, learning centers, and sports clubs. "Dekitas" and "Dekitas Comyu" are digital teaching materials developed to ensure thorough understanding of school lessons, designed to enable easy and enjoyable learning for 10 minutes a day using compact 2-5 minute video lessons with animations and exercise problems, and also support retrospective and forward-looking learning and regular test preparation.

In its consolidated subsidiaries, the company operates swimming schools for infants and adults at Kuga Hara Sports Club Co., Ltd., and operates licensed nursery schools (for infants up to under 3 years old) at Jyonan Nursery Co., Ltd. and Jyonan Fairly Co., Ltd., and runs "Jyonan Kids After School," which provides after-school childcare in a native English environment, at Jyonan KIDS Co., Ltd. In the field of English education, RINGO ELLESEE Co., Ltd. operates TOEFL(R) and IELTS※ test preparation schools, while Ibeck Co., Ltd. operates business English training and English conversation schools for companies. In addition, IomaGazine Co., Ltd. provides consulting and content development for e-learning and develops and operates learning systems. In October 2022, the company absorbed LittleLand Co., Ltd., which operated various education services for infants and children such as "Kubota no uken."

※IELTS (International English Language Testing System) is one of the English proficiency tests that measures English language proficiency, and is operated jointly by the Cambridge English Language Assessment, the British Council, and IDP Education.

(Written by FISCO guest analyst, Jo Sato)