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 Nine Months Ended November 30, 2015
(Based on Japanese GAAP)
January 12, 2016
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:
Executive Vice President
Scheduled date to file Quarterly Securities Report:

Kazuyoshi Minagi
January 13, 2016

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

Holding of quarterly financial results meeting:

NoTEL

03-5996-3701(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended November 30, 2015 (from March 1, 2015 to November 30, 2015)(1) Consolidated financial results (cumulative)

Percentages indicate year-on-year changes
Net sales

Nine months ended November 30, 2015
Nine months ended November 30, 2014

Millions of yen
14,17013,715

Operating income

Net income% Millions of yen% Millions of yen% Millions of yen
3.3
1,093 108.0
1,071 110.4
701(3.0)
525–
509–
2,039

Net income per share%(65.6)–

Diluted net income per share

Yen
13.60
41.46

Nine months ended November 30, 2015
Nine months ended November 30, 2014

Ordinary income

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
12,52012,069As of November 30, 2015
As of February 28, 2015

Equity ratioMillions of yen
6,996
6,041

Net assets per share
%
55.9
50.1

Yen
135.59117.21

2. Cash dividends
Annual dividends per share

Year ended February 28, 2015
Year ending February 29, 2016

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
0.00
0.00

Yen
0.00
0.00

Yen
0.00
0.00

Yen
0.00

Yen
0.00

10.00

10.00

Year ending February 29, 2016 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 29, 2016 (from March 1, 2015 to February 29, 2016)
Net sales
Full year

Millions of yen
19,500Percentages indicate year-on-year changes
Net income
Operating income
Ordinary income
Net income
per share% Millions of yen% Millions of yen% Millions of yen%
Yen
3.9
1,55054.1
1,500
53.4
1,100 (53.8)
21.32

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended November 30, 2015(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:

Yes
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 November 30, 2015

52,069,943 shares As of February 28, 2015

52,069,943 shares

Number of treasury shares at the end of the period
As of November 30, 2015

470,418 shares As of February 28, 2015

521,529 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended November 30, 2015

51,575,928 shares Nine months ended November 30, 2014

249,195,803 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 28, 2015

As of November 30, 2015

AssetsCurrent assets
Cash and deposits
Operating accounts receivable

3,288,665
1,217,097

4,534,324
840,675

Inventories
Income taxes receivable

107,063
53,945

108,157–

Deferred tax assets
Other

234,437
326,682

189,888
325,435

Allowance for doubtful accounts
Total current assets(11,721)(11,027)

5,216,168

5,987,454

1,881,015

1,921,262(904,656)(972,111)

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net

976,358

949,150

1,420,024

1,380,442

Accumulated depreciation(532,071)(548,523)

Tools, furniture and fixtures, net

887,952

831,918

Land

417,963

417,963

Other
Accumulated depreciation

15,988(15,974)

13,668(13,668)

14

0

2,282,289

2,199,032

Other

218,454

197,051

Total intangible assets

218,454

197,051

Investment securities
Deferred tax assets

2,394
2,157,915

2,069
1,938,271

Lease and guarantee deposits
Other

1,990,590
116,422

1,978,889
166,492

Total investments and other assets

4,267,324

4,085,723

6,768,068

6,481,807

85,73851,019Tools, furniture and fixtures

Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Total non-current assets
Deferred assets
Share issuance cost
Total deferred assets
Total assets

3

85,73851,01912,069,976

12,520,281

(Thousands of yen)
As of February 28, 2015

As of November 30, 2015

Liabilities
Current liabilities
Accounts payable - other

913,048765,517

Income taxes payable
Advances received

84,7991,646,079

136,898
1,644,026

Provision for sales returns
Provision for bonuses

13,790112,687

15,40335,897

Provision for loss on classroom closing
Prouision for cancellation refunds

5,214
528,1432,337
454,379

Asset retirement obligations
Other

30,031
647,278

13,555723,043

Total current liabilities

3,981,075

3,791,060

Non-current liabilities
Net defined benefit liability

1,210,431

903,394

Asset retirement obligations
Other

828,827
7,892

826,949
2,624

Total non-current liabilities

2,047,150

1,732,968

6,028,226

5,524,028

Shareholders' equity
Capital stock

2,890,415

2,890,415

Capital surplus
Retained earnings

822,859
2,521,937

822,859
3,456,986

Treasury shares(249,069)(223,642)

Total shareholders' equity5,986,143

6,946,618

Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans

425
55,180469
49,164

Total accumulated other comprehensive income

55,60649,634

6,041,749

6,996,252

12,069,976

12,520,281

Total liabilities
Net assets

Accumulated other comprehensive income

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)
Nine months endedNine months ended

November 30, 2014

November 30, 2015

Net sales
Cost of sales

13,715,709
10,791,183

14,170,814
10,568,349

Gross profit

2,924,526

3,602,464

Selling, general and administrative expenses

2,399,010

2,509,374

525,516

1,093,090

400
199

481
23

Gain on forfeiture of unclaimed dividends
Refunded consumption taxes

4,842
4,694

6,594
–

Dividend income of insurance
Interest on refund

3,997
10,744–590

Operating income
Non-operating income
Interest income
Dividend income

Other5,441

5,327

Total non-operating income

30,32013,017

Interest expenses
Amortization of share issuance cost

16,33026,713

167
34,719

Other

3,787

216

Non-operating expenses

Total non-operating expenses

46,831

35,102509,005

1,071,005

1,162,808

1,312

Reversal of allowance for provision for cancelation refunds
Refunds on prior periods dividends income

820,981921,299

68,007–

Other

138,286–

3,043,375

69,319Impairment loss
Litigation expenses

202,017–

38,24016,728Loss on Fraud Transactions
Business structure improvement expenses

23,622
105,779

22,06225,302

Relocation expensesLoss on insurance cancellation

32,972
40,465

9,059–

Provision for loss on classroom closing
Other

2,160
5,501

1,490
–

412,519

112,884

Income before income taxes and minority interests

3,139,862

1,027,440

Income taxes

1,100,349

326,112

Income before minority interests

2,039,512

701,327

Net income

2,039,512

701,327

Ordinary income
Extraordinary income
Gain on sales of non-current assets

Total extraordinary income
Extraordinary losses

Total extraordinary losses

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

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

Nine months ended

Nine months ended

November 30, 2014

November 30, 2015

2,039,512

701,327(76,857)–

44(6,016)(76,857)(5,972)

1,962,654

695,354

1,962,654–

695,354–

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to minority interests6