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, 2024
(Based on Japanese GAAP)
July 12, 2024
Company name:
Riso Kyoiku Co.,Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

4714
URL https://www.riso-kyoikugroup.com/
President and CEO
Masahiko Tenbo

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

Masaaki Kume
July 16, 2024

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–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 three months ended May 31, 2024 (from March 1, 2024 to May 31, 2024)(1) Consolidated operating results (cumulative)
Net sales
Three months ended May 31, 2024Three months ended May 31, 2023

Millions of yen
6,901
6,692

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
3.1
(190)
–(197)–(208)–
3.9(364)–(357)–(273)–Earnings per share

Diluted earnings per share

Yen(1.34)(1.77)

Three months ended May 31, 2024
Three months ended May 31, 2023

Yen––(2) Consolidated financial position
Total assets
As of May 31, 2024
As of February 29, 2024

Net assets

Millions of yen
19,801
18,096Equity ratio

Millions of yen
10,1038,484%
50.6
46.3

2. Cash dividends
Annual dividends per share

Year ended February 29, 2024
Year ending February 28, 2025

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
0.00
0.00

Yen
0.00

Yen
0.00

Yen
10.00

Yen
10.00

0.00

0.00

10.00

10.00

Year ending February 28, 2025 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 28, 2025 (from March 1, 2024 to February 28, 2025)
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
33,960
5.4
2,670
1.6
2,670
0.5
1,710
2.9
10.28

1

4. Notes(1) Changes in significant subsidiaries during the three months ended May 31, 2024
(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, 2024

171,806,159 shares As of February 29, 2024

156,209,829 shares

Number of treasury shares at the end of the period
As of May 31, 2024

1,722,510 shares As of February 29, 2024

1,846,230 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended May 31, 2024

155,043,002 shares Three months ended May 31, 2023

2154,363,969 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 29, 2024

As of May 31, 2024

AssetsCurrent assets
Cash and deposits
Trade accounts receivable
Inventories
OtherAllowance for doubtful accounts
Total current assets

5,460,988
2,784,920

8,732,230
897,561

171,828
542,739

227,713642,006(5,502)(5,751)

8,954,974

10,493,759

Non-current assets
Property, plant and equipment
Buildings and structures

3,950,105

4,113,867

Accumulated depreciation(1,876,983)(1,933,210)

Buildings and structures, net

2,073,122

2,180,657

2,321,998

2,355,597

Accumulated depreciation(977,509)(1,003,937)

Tools, furniture and fixtures, net

1,344,489

1,351,659

Land

417,963

417,963Construction in progress
Other

3,495
23,541

3,495
23,541Tools, furniture and fixtures

Accumulated depreciation(7,587)(8,570)

Other, net

15,953

14,9703,855,023

3,968,746

Total property, plant and equipment
Intangible assets
Other

310,555

324,539

Total intangible assets

310,555

324,539

Investments and other assets
Investment securities

200,01944,000

Deferred tax assets
Leasehold and guarantee deposits

1,502,592
2,974,002

1,620,751
3,048,640

Other
Allowance for doubtful accounts

305,576(6,072)

307,315(6,072)

Total investments and other assets

4,976,118

5,014,634

9,141,697

9,307,920

18,096,672

19,801,679

Total non-current assets
Total assets3

(Thousands of yen)
As of February 29, 2024

As of May 31, 2024

Liabilities
Current liabilities
Accounts payable - other

1,196,199

1,336,765

Income taxes payable
Contract liabilities

707,892
2,410,503

105,027
2,644,216

354,064
36,830480,926
41,931Other

1,025,788

1,132,650

Total current liabilities

5,731,279

5,741,516

2,600,717
1,276,985

2,671,212
1,283,707

2,933

1,818

3,880,637

3,956,738

9,611,916

9,698,255

Share capital
Capital surplus

2,890,415
2,622,691

4,590,415
4,331,411

Retained earnings
Treasury shares

3,331,151(381,348)

1,579,395(355,742)

Total shareholders' equity

8,462,910

10,145,480

Provision for bonuses
Asset retirement obligations

Non-current liabilities
Retirement benefit liability
Asset retirement obligations
Deferred tax liabilities
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive incomeValuation difference on available-for-sale securities

27,934(7,562)Remeasurements of defined benefit plans(115,436)(109,613)

Total accumulated other comprehensive income(87,502)(117,176)

Share acquisition rights
Total net assets
Total liabilities and net assets

4

109,347

75,1188,484,755

10,103,423

18,096,672

19,801,679

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

Three months ended

May 31, 2023

May 31, 2024

Net sales
Cost of sales

6,692,249
5,483,865

6,901,554
5,560,006

Gross profit

1,208,384

1,341,548

Selling, general and administrative expenses

1,572,432

1,531,815

Operating loss

(364,048)(190,267)

Dividend income
Gain on forfeiture of unclaimed dividends

2,296
2,545

2,818
3,354

Subsidy income
Photo sales profit

461
1,331

1,224
1,202

Non-operating income

Other

794

1,414

7,428

10,014

Interest expenses
Share issuance costs

551–

6916,017

Foreign exchange losses
Other

13286

–
1,422

Total non-operating expenses

852

17,509(357,472)(197,762)

Gain on sale of non-current assets
Gain on sales of parent company's stocks––

55
44,409Total extraordinary income–

44,4652,735

204

Impairment losses
Relocation expenses

–
296

3,458
488

Tender offer related expenses
Other–
711

95,120–3,743

99,272(361,215)(252,569)

Total non-operating income
Non-operating expenses

Ordinary loss
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets

Total extraordinary losses
Loss before income taxes
Income taxes(87,861)(44,450)

Loss(273,353)(208,119)

Loss attributable to non-controlling interests
Loss attributable to owners of parent5(0)–(273,353)(208,119)Consolidated statements of comprehensive income (cumulative)(Thousands of yen)

Loss
Other comprehensive income

Three months ended

Three months ended

May 31, 2023

May 31, 2024

(273,353)(208,119)

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

6,24292(35,496)–Remeasurements of defined benefit plans, net of tax

11,596

5,822

17,931(29,673)

Comprehensive income

Total other comprehensive income(255,422)(237,793)

Comprehensive income attributable toComprehensive income attributable to owners of parent(255,422)(237,793)(0)–Comprehensive income attributable to non-controllinginterests

6