Consolidated sales from the Domestic Education Business Domain increased by 0.2% year on year, to ¥240.5 billion.

Contributing factors in the rise in sales were growth in enrollment in the Company’s mainstay Shinkenzemi and Kodomo Challenge correspondence courses, mainly in courses for elementary school students. Another factor was brisk growth in high school business, including simulated university entrance exams and materials offering guidance on courses of study and paths for advancement. Sales from the operations of Tetsuryokukai, a prep school that helps students hoping to enter elite universities, increased year on year. This reflected that sales during the previous fiscal year, when Tokyo Educational Institute Co., Ltd. assumed Tetsuryokukai’s operations, were first posted from the second quarter. Meanwhile, sales from Tokyo Individualized Educational Institute were lower, tracking falling enrollment.

Operating income rose 5.8% to ¥40,6 billion. A negative impact from declining sales at Tokyo Individualized Educational Institute, Inc., overall income grew on higher sales from the domestic correspondence course business and high school business, coupled with reductions in direct mail expenses. The latter stemmed from a temporary interruption in operating activities in the wake of the March 2011 earthquake.

The number of enrollees in domestic correspondence courses such as Shinkenzemi and Kodomo Challenge as of April 2011 was 4.03 million, down by 50,000 year on year. The decline was attributable to interruptions to sales activities in the wake of the earthquake.

Various payment methods are available, with progressively larger discounts for lump-sum payments made in advance. In the case of early withdrawal, refunds are made for courses that have not been completed.