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 Six Months Ended August 31, 2017
(Based on Japanese GAAP)
October 10, 2017
Company name:
RISO KYOIKU CO.,LTD
Stock exchange listing: Tokyo
Stock code:
Representative:

4714
URL http://www.tomas.co.jp/President and CEO
Masahiko Tenbo

Inquiries:
Director
Scheduled date to file Quarterly Securities Report:

Kazunori Noto
October 11, 2017

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

November 9, 2017
Yes

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 six months ended August 31, 2017 (from March 1, 2017 to August 31, 2017)(1) Consolidated operating results (cumulative)
Net sales
Six months ended August 31, 2017
Six months ended August 31, 2016

Millions of yen
10,814
9,964

Percentages indicate year-on-year changes
Profit attributable toOperating income
Ordinary income
owners of parent% Millions of yen% Millions of yen% Millions of yen%
8.5
740
0.8
725
0.6
503
8.6
5.6
734
8.4
721
9.0
463
3.7

Earnings per share

Diluted earnings per share

Yen
10.23
8.93

Six months ended August 31, 2017
Six months ended August 31, 2016

Yen––(2) Consolidated financial position
Total assets
As of August 31, 2017
As of February 28, 2017

Net assets

Millions of yen11,664
11,250Equity ratio

Millions of yen
6,117
6,301

Net assets per share%
52.4
56.0

Yen
124.31128.04

2. Cash dividends
Annual dividends per share

Year ended February 28, 2017
Year ending February 28, 2018

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
0.00
7.00

Yen
12.00
7.00

Yen
6.00

Yen
7.00

Yen
25.00

7.00

7.00

28.00

Year ending February 28, 2018 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 28, 2018 (from March 1, 2017 to February 28, 2018)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating income
Ordinary income
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
23,100
11.2
2,420
18.0
2,400
18.1
1,400
9.8
28.45

1

4. Notes(1) Changes in significant subsidiaries during the six months ended August 31, 2017(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 August 31, 201752,069,943 shares As of February 28, 201752,069,943 shares

Number of treasury shares at the end of the period
As of August 31, 2017

2,859,688 shares As of February 28, 2017

2,858,038 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 201749,211,004 shares Six months ended August 31, 2016

251,918,506 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 28, 2017

As of August 31, 2017

AssetsCurrent assets
Cash and deposits
Operating accounts receivable

3,866,056
739,750

3,650,3071,112,730

Inventories
Deferred tax assets

125,894
527,126

116,811534,196

Other
Allowance for doubtful accounts

356,726(17,489)

387,372(27,465)5,598,064

5,773,952

2,005,952(1,009,241)

2,163,776(1,055,141)

996,710

1,108,634

1,377,044(514,336)

1,440,838(522,991)

862,707917,846

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
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities

00

2,277,381

2,444,444

203,257

191,030

203,257

191,030

1,934

1,766

852,857
2,046,458

863,2932,081,181

Other
Allowance for doubtful accounts

202,093(6,312)

233,372(6,312)

Total investments and other assets

3,097,033

3,173,301

5,577,672

5,808,776

527

491

66,2748,00581,080–

Deferred tax assets
Lease and guarantee deposits

Total non-current assets
Deferred assets
Deferred organization expenses
Business commencement expenses
Share issuance cost
Total deferred assets
Total assets

374,806

81,572

11,250,543

11,664,301

(Thousands of yen)
As of February 28, 2017

As of August 31, 2017

Liabilities
Current liabilities
Accounts payable - other810,910

1,099,189

Income taxes payable
Advances received

254,039
1,090,837

228,263
1,434,489

Provision for sales returns
Provision for bonuses

3,635
179,984

1,886210,068

Provision for cancellation refunds
Provision for loss on litigation

2,475
100,000

2,124
900

Asset retirement obligations
Other

14,787706,149

23,928666,199

Total current liabilities

3,162,819

3,667,049

Non-current liabilities
Net defined benefit liability

942,966

989,968

Asset retirement obligations
Other843,426
157

889,943–

Total non-current liabilities

1,786,549

1,879,912

4,949,369

5,546,961

Shareholders' equity
Capital stock

2,890,415

2,890,415

Capital surplus
Retained earnings

822,859
3,971,448

822,859
3,785,932

Treasury shares(1,394,246)(1,395,587)

Total shareholders' equity

6,290,476

6,103,620

387
227

269
188

Remeasurements of defined benefit plans

10,081

13,261

Total accumulated other comprehensive income

10,697

13,7190–6,301,174

6,117,340

11,250,543

11,664,301

Total liabilities
Net assets

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)Six months ended

Six months ended

August 31, 2016

August 31, 2017

Net sales
Cost of sales

9,964,9787,412,232

10,814,024
7,979,737

Gross profit

2,552,745

2,834,287

Selling, general and administrative expenses

1,818,295

2,093,719

734,449

740,567

27
23

1723

Gain on forfeiture of unclaimed dividends
Gain on bad debts recovered

3,528
3,145–545

Miscellaneous income
Other411
1,081577
552

Total non-operating income

8,217

1,716

Operating income
Non-operating income
Interest income
Dividend income

Non-operating expenses
Interest expenses

41368

Amortization of share issuance cost
Foreign exchange losses

19,433
–

8,005
7,856

Other

1,542

86

Total non-operating expenses
Ordinary income
Extraordinary income
Reversal of allowance for provision for cancelation refunds
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets

21,017

16,316

721,649

725,968

7,461

82

7,461

82

3,049

747

Impairment loss
Litigation expenses

6,081
7,718

2,629
10,694

Relocation expenses
Provision for loss on litigation

5,852
–

7,839
900

Loss on liquidation of business
Loss on insurance cancellation–
13,00445,009
–

Other

3,324

–

39,031

67,820

Profit before income taxes

Total extraordinary losses

690,079

658,230

Income taxes

226,447

154,785

Profit463,632

503,445

Loss attributable to non-controlling interests
Profit attributable to owners of parent–
463,632(0)503,445

5Consolidated statements of comprehensive income (cumulative)(Thousands of yen)Profit
Other comprehensive income

Six months ended

Six months ended

August 31, 2016

August 31, 2017463,632

503,445

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

139–

(117)
(39)

Remeasurements of defined benefit plans, net of tax(3,888)3,179(3,749)3,022

Comprehensive income

Total other comprehensive income

459,882

506,467

Comprehensive income attributable toComprehensive income attributable to owners of parent

459,882

506,467–(0)Comprehensive income attributable to non-controllinginterests

6Consolidated statements of cash flows(Thousands of yen)Six months ended

Six months ended

August 31, 2016

August 31, 2017

Cash flows from operating activities
Profit before income taxes

690,079

658,230

Depreciation
Amortization of deferred assets

100,141
19,433111,131
13,992

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

7,983
19,431

9,976
30,083

Increase (decrease) in provision for cancellation refunds
Increase (decrease) in net defined benefit liability(8,622)
10,676(350)
47,002

Increase (decrease) in other provisionInterest and dividend income

1,352
(50)

(1,749)(40)

Interest expenses
Impairment loss

41
6,081

368
2,629

Loss on retirement of property, plant and equipment
Decrease (increase) in notes and accounts receivable - trade

3,049
311,045

747(373,186)

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade

1,524
1,046

9,083
9,704

(213,750)
239,623(66,633)
287,52174,523
43,482

343,652
27,783

1,307,094

1,109,94550(41)40(368)–(119,566)(100,000)(192,645)

Increase (decrease) in accrued consumption taxes
Increase (decrease) in accounts payable - other
Increase (decrease) in advances received
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Litigation settlement paid
Income taxes paid
Income taxes refund

–

8,941

1,187,536

825,913Purchase of property, plant and equipment
Purchase of intangible assets(82,721)(41,397)(170,629)(28,289)

Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits(39,707)
22,206(81,098)
22,196

Purchase of insurance funds
Proceeds from cancellation of insurance funds(32,300)
12,234(32,300)–

Payments for deferred assets
Other, net–(31,631)(26,628)(32,449)

Net cash provided by (used in) investing activities(193,317)(349,200)

Net cash provided by (used in) operating activities
Cash flows from investing activities

7

(Thousands of yen)Six months ended

Six months ended

August 31, 2016

August 31, 2017

Cash flows from financing activities
Increase in short-term loans payable–900,000

Decrease in short-term loans payable
Cash dividends paid–(512,214)(900,000)(689,534)

Purchase of treasury shares
Proceeds from disposal of treasury shares(237)
104,926(1,340)–

Other, net(4,083)(809)(411,608)(691,684)

–

(777)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

582,610(215,748)

Cash and cash equivalents at beginning of period

4,515,815

3,866,056

Cash and cash equivalents at end of period

5,098,426

3,650,3078