Riso Kyoiku

Basic Information

Stock Code
4714
Industry
Services
Category Detail
Education
Prefecture
Tokyo
Establishment Year
July 1985
Listing Year
December 1998
Official Website
https://www.riso-kyoikugroup.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Meiko Network Japan, Waseda Academy, Kyoshin, Tokyo Kobetsu, S Science, Sprix, FCE, Wizas, Nagase, Gakkyu-sha, Step

Overview

Riso Kyoiku is a leading company in the education services industry, founded in 1985 and primarily operating individual tutoring cram schools such as TOMAS in the Tokyo metropolitan area.

Current Situation

Riso Kyoiku recorded consolidated sales of approximately 31.5 billion yen and consolidated operating profit of approximately 2.4 billion yen in the fiscal year ended February 2023, maintaining a stable revenue base. Centering on its flagship individual tutoring cram school brand TOMAS, it offers a wide range of educational services from junior high school entrance exams to university entrance exams, boasting a high market share in the Tokyo metropolitan area. The group includes subsidiaries handling home tutor dispatch, early childhood education, and English conversation classes, pursuing diversification. In recent years, it has focused on introducing IT-based learning management systems, launching new brands, and expanding through partnerships with educational corporations. In 2024, the largest shareholder shifted to HULIC, strengthening ties with real estate. It has experienced past scandals such as falsified accounts but has reinforced internal controls and improved governance. Moving forward, it plans to transition to a holding company structure to achieve efficient management and advance growth strategies.

Trivia

Interesting Facts

  • TOMAS is an abbreviation for 'TOkyo Man to Man School', named in 1997
  • Riso Kyoiku sponsors major professional sports teams nationwide
  • Has experience being designated as a special attention market stock due to improper accounting
  • Founder Minoru Iwasa established a cultural foundation in the education field and promotes social contributions
  • Group subsidiary Plus One Education experienced a personal information leak scandal
  • Meimon-kai is a Riso Kyoiku subsidiary handling individual tutoring in regional areas
  • Sundai TOMAS is a joint venture established with a school corporation
  • HULIC as the largest shareholder is strengthening collaboration with the real estate industry
  • Some brands have been integrated through absorption mergers for efficiency
  • Cocokara T-Chars, specializing in recruitment and training, supports the group's instructors
  • Educational travel business holds registration as a travel agency from the tourism agency
  • Meimon-kai's MEDIC brand is an individual tutoring cram school specialized for medical school exams
  • Plus One Education focuses on children's character education and camp businesses
  • Shinmeikai offers a multifaceted lineup from toddler classrooms to daycare and after-school care
  • Has experience changing its accounting auditor due to contract issues with the audit firm

Hidden Connections

  • Utilizing HULIC's real estate development expertise for cram school site expansion
  • Enhancing education business competitiveness through joint venture with Surugadai Gakuen School Corporation
  • Introduced sports education programs through partnership with Konami Sports
  • Public interest foundation effectively operated by Riso Kyoiku to advance social contributions
  • Plus One Education holds travel agency registration, providing integrated educational travel within the group
  • Experienced penalties for violating securities listing regulations due to past window dressing
  • Absorbed and merged Inter TOMAS's English education business for brand integration
  • Subsidiary specializing in instructor recruitment and training supports high-quality education delivery

Future Outlook

Growth Drivers

  • Increasing demand for small-class individual tutoring
  • Learning efficiency and customer management enhancement via IT utilization
  • Market expansion in early childhood education and childcare businesses
  • Steady demand in junior high school and medical school entrance exam markets
  • Diversification of educational trips and experiential learning programs
  • Business diversification leveraging group synergies
  • Store expansion through real estate collaboration with HULIC
  • Enhanced social credibility via public interest foundation
  • Focus on English education and global talent development
  • Trust recovery through legal compliance and governance strengthening
  • Continued regional embedded brand deployment
  • Recovery of in-person education demand post-COVID

Strategic Goals

  • Transition to holding company structure and optimization of group management
  • Achieve over 50% market share in Tokyo metropolitan area individual tutoring brands
  • Advanced customer services through IT system utilization
  • Expand early childhood and childcare-related business sales ratio to over 20%
  • Strengthen domestic and international expansion of educational travel business
  • Advance sustainability management and expand social contributions
  • Strengthen education quality via improved instructor training programs
  • Expand digital education services and promote online initiatives
  • Promote women's active roles and develop diverse workplace environments
  • Secure trust through advanced information security systems

Business Segments

Collaborative Projects for Educational Institutions

Overview
Collaborates with school corporations and public educational institutions to provide educational programs and operational support.
Competitiveness
Strong regionally embedded services in the Tokyo metropolitan area
Customers
  • School corporations
  • Universities
  • Private integrated junior and senior high schools
  • Boards of education
Products
  • Individual tutoring program provision
  • Joint curriculum development
  • Management consignment services

System Provision for Cram Schools and Prep Schools

Overview
Provides IT tools and systems to improve cram school operations efficiency.
Competitiveness
Proprietary learning management expertise and system development capabilities
Customers
  • Small and medium cram schools
  • Prep school operators
  • Education-related companies
Products
  • Learning management systems
  • Online lesson platforms
  • Instructor and student management tools

Human Resources Recruitment and Training Support

Overview
Group-wide deployment of recruitment and training support services for instructors and employees.
Competitiveness
Education industry-specialized talent network and training expertise
Customers
  • Education-related companies
  • Staffing agencies
  • Educational institutions
Products
  • Instructor recruitment agency
  • Training programs
  • Job placement services

Educational Trips and Experiential Learning Planning

Overview
Provides total planning for school trips and camps tailored to educational settings.
Competitiveness
Long years of planning and operations experience with travel agency license
Customers
  • Schools
  • Cram schools
  • Education-related organizations
Products
  • Educational camp planning
  • Experiential learning tours
  • Event operations

Cafe and Welfare Services

Overview
Provides cafe services to employees and visitors, supporting welfare.
Competitiveness
Promotion of usage within group companies
Customers
  • Riso Kyoiku Group companies
  • Head office building users
Products
  • Operated cafe stores

Competitive Advantage

Strengths

  • Strong presence with individual tutoring cram schools in the Tokyo metropolitan area
  • Ownership of diverse education service brands
  • Cross-group provision of education services
  • Robust instructor training and recruitment system
  • Stable financial base
  • IT-utilized learning management systems
  • Expansion of collaborative businesses with school corporations
  • Abundant education-related expertise
  • Active brand diversification
  • Broad business portfolio from child-rearing support to exam preparation
  • Improved management efficiency through transition to holding company structure
  • Integrated instructor training and referral services
  • Long track record in the industry
  • Active participation in social contribution activities
  • Strength in knowledge sharing across the group

Competitive Advantages

  • Top-class brand recognition and quality in individual tutoring cram school business in the Tokyo metropolitan area
  • Diversified education service system via group subsidiaries
  • Efficiency in learning management and customer service through IT systems
  • High-quality instructors secured through education-focused recruitment and training
  • Superiority in real estate utilization via business alliance with HULIC
  • Strength in expansion into child-rearing support areas like after-school care and early childhood education
  • Effective utilization of brand power and regional strategies of owned brands
  • Strengthened internal controls and management systems through years of operational improvements
  • Flexible service design responding to diverse customer needs
  • Enhanced social trust through public interest foundation
  • Risk management capabilities from experience recovering from performance scandals
  • Proprietary expertise in educational travel business with travel agency approval
  • Comprehensive language services including multilingual and English education
  • Group collaboration creating synergies in management structure
  • Efficient organizational operations achieved through business divisions and mergers

Threats

  • Concerns over shrinking education market due to declining birthrate
  • Intensifying price competition from rivals
  • Risks from strengthened regulations in education
  • Customer loss due to rise of online education
  • Delayed recovery from past scandal image
  • Restrictions on in-person classes due to new infectious diseases
  • Decline in service quality from instructor recruitment and training difficulties
  • Reduced education investments amid worsening economic environment
  • Delays in responding to rapid digitalization
  • Risk of changes in parent company HULIC's management policies
  • Loss of trust from personal information leaks
  • Competition from new entrants from other industries

Innovations

2023: 33 billion yen funding for educational management system 'Manaby'

Overview
Investment aimed at strengthening IT systems to expand tutoring operations in Vietnam.
Impact
Expansion of overseas business and improved management efficiency.

2021: Capital and business alliance with Surugadai Gakuen School Corporation

Overview
Establishment of joint venture Sundai TOMAS to strengthen junior high school entrance exam-focused business.
Impact
Enhanced competitiveness in the exam student market.

2020: Absorption merger for inter-company transaction efficiency

Overview
Improved administrative efficiency by absorbing Inter TOMAS and TOMAS Planning into the parent company.
Impact
Streamlined management and effective resource allocation.

2024: Third-party allotment capital increase and public tender offer leading to subsidiary status under HULIC

Overview
Accelerated strengthening of capital structure and collaboration with real estate company.
Impact
Stabilized management base and creation of new business opportunities.

Sustainability

  • Social contribution activities through support for children's education
  • Operation of scholarship programs via the public interest Iwasa Education and Culture Foundation
  • Enhanced information security measures in the education field
  • Promotion of education quality improvement through alliances with school corporations
  • Advancement of human development programs such as greetings and manners education
  • Strengthened initiatives for child-rearing support in local communities
  • Improved corporate governance through strengthened internal controls
  • Promotion of paperless operations and energy-saving activities for environmental considerations
  • Advancement of diversity management through promotion of women's active roles
  • Reduced environmental impact through efficient operations via IT system introductions