1. How long does Kumon Center take to reach break even point?

Each Kumon Center has different break even point. Some Centers could reach break even point in 1 year while other Centers might take 2-3 years to reach break even point. It depends on many factors, such as Center location, how to promote Center in public, quality of Center instruction and communication, readiness of Center assistant team, etc.

2. What is the Company's criteria to select location to open Kumon Center?

The preliminary criteria for Center location selection includes the surrounding of Center location, safety, accessability, at least 100 square meters space, qualifications of the building based on government’s regulations determined by the Ministry of Education.

3. Is the distance between Kumon Centers a part for considering location to open new Center?

The distance between Centers is not a main factor to consider new Center’s location, but the Company will consider location based on population and density, growth potential of the area, local people’s lifestyle, etc. In summary, the Company will emphasize on the continuous growth of the whole area which includes new Center and all existing Centers located in the same area.