Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Three Months Ended May 31, 2020
(Based on Japanese GAAP)
July 9, 2020
Company name:
Riso Kyoiku Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

4714
URL http://www.tomas.co.jp/President and CEO
Shigenori Hirano

Inquiries:
Vice president and CFO
Scheduled date to file Quarterly Securities Report:

Masaaki Kume
July 10, 2020

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–No

Holding of quarterly financial results meeting:

Yes

TEL

03-5996-3701(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended May 31, 2020 (from March 1, 2020 to May 31, 2020)(1) Consolidated operating results (cumulative)

Three months ended May 31, 2020Three months ended May 31, 2019Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
4,165 (21.2)(1,316)–(1,318)–(1,036)
–
5,288
11.2
(233)
–(235)–(206)–Earnings per share

Diluted earnings per share

Yen(7.16)(1.40)

Three months ended May 31, 2020Three months ended May 31, 2019

Yen––(2) Consolidated financial position
Total assets
As of May 31, 2020
As of February 29, 2020

Net assets

Millions of yen10,756
13,214Equity ratio

Millions of yen
3,936
6,157

Net assets per share%
35.9
45.9

Yen
26.78
41.35

2. Cash dividends
Annual dividends per share

Year ended February 29, 2020
Year ending February 28, 2021

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
3.00
0.00

Yen
3.00

Yen
3.00

Yen
3.00

Yen
12.00

6.00

–––

Year ending February 28, 2021 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 28, 2021 (from March 1, 2020 to February 28, 2021)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
27,0001.1–––––––

1

4. Notes(1) Changes in significant subsidiaries during the three months ended May 31, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of May 31, 2020

156,209,829 shares As of February 29, 2020

156,209,829 shares

Number of treasury shares at the end of the period
As of May 31, 202011,936,390 shares As of February 29, 2020

9,433,200 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended May 31, 2020

144,673,185 shares Three months ended May 31, 2019

2147,623,423 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 29, 2020

As of May 31, 2020

AssetsCurrent assets
Cash and deposits
Trade accounts receivable

4,837,138
1,133,803

2,245,762
856,795

Inventories
Income taxes receivable

111,399
106,096

133,777
44,183

Other
Allowance for doubtful accounts

472,250(15,927)

460,294(13,212)

6,644,759

3,727,600

2,773,988(1,275,350)

2,873,560(1,313,002)

1,498,638

1,560,557

1,769,455(628,569)

1,830,398(649,402)

1,140,886

1,180,995

417,963
13,668417,963
13,668(13,668)(13,668)

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
OtherAccumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Deferred tax assets
Leasehold and guarantee deposits
Other

0

0

3,057,487

3,159,517

135,571

130,553

135,571

130,553

670,422940,8102,416,943
257,5422,511,782
258,937

Allowance for doubtful accounts(6,072)(6,072)

Total investments and other assets

3,338,836

3,705,459

6,531,895

6,995,529

237
37,461

210
32,677Total non-current assets
Deferred assets
Organization expenses
Business commencement expenses
Total deferred assets
Total assets

337,699

32,88813,214,354

10,756,018

(Thousands of yen)
As of February 29, 2020

As of May 31, 2020

Liabilities
Current liabilities
Accounts payable - other

1,040,268

1,087,986

Income taxes payable
Advances received

523,320
1,551,565

29,924
1,916,931

Provision for sales returns
Provision for bonuses

3,008
244,486532
442,754

Asset retirement obligations
Other4,539
1,131,788

1,288
713,146

Total current liabilities

4,498,977

4,192,565

Non-current liabilities
Lease obligations

6,091

5,544

Retirement benefit liability
Asset retirement obligations

1,499,862
1,052,023

1,553,750
1,067,874

Total non-current liabilities

2,557,977

2,627,169

7,056,954

6,819,734

Shareholders' equity
Share capital

2,890,415

2,890,415

Capital surplus
Retained earnings

822,859
4,208,207

822,859
2,731,418

Treasury shares(1,724,062)(2,459,580)

Total shareholders' equity

6,197,419

3,985,112

Foreign currency translation adjustment
Remeasurements of defined benefit plans

201(127,884)

690(121,607)

Total accumulated other comprehensive income(127,682)(120,916)

48,36439,29848,36423,724

Total net assets

6,157,400

3,936,284

Total liabilities and net assets

13,214,354

10,756,018

Total liabilities
Net assets

Accumulated other comprehensive income

Share acquisition rights
Non-controlling interests4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)

Net sales
Cost of sales

Three months ended

Three months ended

May 31, 2019

May 31, 2020

5,288,243
4,288,604

Gross profit (loss)

4,165,812
4,188,946

999,638(23,133)

Selling, general and administrative expenses

1,233,557

1,293,452

Operating loss

(233,918)(1,316,586)

1,339
–

716
1,055

Interest on tax refund
Miscellaneous income

–
441

888
103

Other

578

308

2,360

3,073

Interest expenses
Foreign exchange losses

25
3,393

1,586
2,003

Commission expenses
Other–
202

1,470
185

3,621

5,246(235,179)(1,318,759)

Other–

2,005

Total extraordinary income

–

2,005

1,803

–

Non-operating income
Gain on bad debts recovered
Gain on forfeiture of unclaimed dividends

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary loss
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets

1,803

–

Loss before income taxes

Total extraordinary losses(236,983)(1,316,754)

Income taxes(30,854)(264,721)

Loss(206,128)(1,052,033)–(15,574)(206,128)(1,036,458)

Loss attributable to non-controlling interests
Loss attributable to owners of parent5

Consolidated statements of comprehensive income (cumulative)(Thousands of yen)

Loss
Other comprehensive income
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

Three months ended

Three months ended

May 31, 2019

May 31, 2020

(206,128)(1,052,033)

298
5,151

488
6,277

5,450

6,765

(200,678)(1,045,267)(200,678)(1,045,267)––

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6