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 Year Ended February 28, 2021
(Based on Japanese GAAP)
April 7, 2021
Company name:

Riso Kyoiku Co., Ltd.

Stock exchange listing: Tokyo
Stock code:
4714
Representative:
Inquiries:

URL

http://www.tomas.co.jp/President and CEO
Vice president and CFO

Shigenori Hirano
Masaaki KumeScheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

May 28, 2021
May 31, 2021

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

May 13, 2021
Yes

Holding of 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 year ended February 28, 2021 (from March 1, 2020 to February 28, 2021)(1) Consolidated operating results
Percentages 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%
Year ended February 28, 2021
25,201(5.6)
1,010(62.8)
1,192(56.6)
555(71.6)
Year ended February 29, 2020
26,704
9.0
2,716
7.4
2,749
8.2
1,953
23.9

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
3.79
8.8
8.8
4.0
13.23
31.7
21.4
10.2

Diluted earnings pershare

Yen
3.79
13.24

Year ended February 28, 2021
Year ended February 29, 2020
(2) Consolidated financial position

Total assets
As of February 28, 2021
As of February 29, 2020

Net assets

Equity ratio

Millions of yen
13,94013,214

Millions of yen
6,575
6,157

Cash flows fromoperating activities
Millions of yen
(36)
2,911

Cash flows frominvesting activities
Millions of yen
(655)
(652)

Net assets per share%
46.7
45.9

Yen
44.02
41.35

(3) Consolidated cash flows

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

Cash flows fromCash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
(182)
3,963
(2,138)4,837

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended February 29, 2020
Year ended February 28, 2021
Year ending February 28, 2022
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

3.00
0.00

3.00
0.00

3.000.00

3.00
9.50

12.00
9.50

1,768
1,404

90.6
250.7

28.7
22.3

–––––

1–

3. Forecast of consolidated financial results for the year ending February 28, 2022 (from March 1, 2021 to February 28, 2022)
Net sales
Full year

Millions of yen
29,000Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen
%Yen
15.1
2,510 148.4
2,500 109.7
1,700 206.2
11.61

4. Notes(1) Changes in significant subsidiaries during the year ended February 28, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of February 28, 2021

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 February 28, 2021

8,396,070 shares As of February 29, 2020

9,433,200 shares

146,387,438 shares Year ended February 29, 2020

147,600,611 shares

Average number of shares during the period
Year ended February 28, 20212

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

As of February 28, 2021

AssetsCurrent assets
Cash and deposits
Trade accounts receivable

4,837,138
1,133,803

3,963,694
2,454,135

Inventories
Income taxes receivable

111,399
106,096

135,497
37,672

Other
Allowance for doubtful accounts

472,250(15,927)

438,892(11,588)6,644,759

7,018,304

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

2,953,928(1,413,589)

1,498,638

1,540,339

1,769,455(628,569)

1,858,972(701,592)

1,140,886

1,157,379

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

00

3,057,487

3,115,682

135,571

177,485

135,571

177,485–

124,027

Deferred tax assets
Leasehold and guarantee deposits

670,4222,416,943

678,8912,558,477

Other
Allowance for doubtful accounts

257,542(6,072)

273,534(6,072)

Total investments and other assets

3,338,836

3,628,859

Total non-current assets

6,531,895

6,922,027

Deferred assets
Organization expenses

237–

Business commencement expenses

37,461–

Total deferred assets

37,699–13,214,354

13,940,332

Total assets3

(Thousands of yen)
As of February 29, 2020

As of February 28, 2021

Liabilities
Current liabilities
Accounts payable - other

1,040,268

1,149,166

Income taxes payable
Advances received

523,320
1,551,565

422,847
1,701,720

3,008
244,486

2,370265,202–

40,529Asset retirement obligations
Other

4,539
1,131,788

12,565
1,005,995

Total current liabilities

4,498,977

4,600,399

Provision for sales returns
Provision for bonuses
Provision for loss on liquidation of subsidiaries andassociates

Non-current liabilities
Lease obligations
Retirement benefit liability
Asset retirement obligations
Deferred tax liabilities

6,091

3,895

1,499,862
1,052,023

1,681,000
1,073,012

–

6,783

2,557,977

2,764,692

7,056,954

7,365,091

Share capital
Capital surplus

2,890,415822,859

2,890,415
1,105,307

Retained earnings
Treasury shares

4,208,207(1,724,062)

4,323,111(1,730,384)

Total shareholders' equity

6,197,419

6,588,450

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities–

13,300Foreign currency translation adjustment
Remeasurements of defined benefit plans

201(127,884)(401)(94,780)

Total accumulated other comprehensive income(127,682)(81,881)

48,36439,29868,671–Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

4

6,157,400

6,575,240

13,214,354

13,940,332

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
February 29, 2020

Fiscal year ended
February 28, 2021

Net sales

26,704,899

25,201,586

Cost of sales

18,997,866

19,096,483

Gross profit

7,707,032

6,105,102

Selling, general and administrative expenses

4,990,043

5,094,502

Operating profit

2,716,989

1,010,599

25

210–

02,051Gain on forfeiture of unclaimed dividends
Subsidy income

4,530
–

2,891
214,674

Recoveries of written off receivables
Interest on tax refund

2,768
–

2,239
1,128

Contribution for construction
Miscellaneous income

22,690
1,220

–
643

Non-operating income
Interest income
Dividend income
Foreign exchange gains

Other

2,604

13,245

Total non-operating income

33,839236,896

Interest expenses
Share issuance costs

95
–

2,116
30,100Foreign exchange losses
Loss on cancellation of leases

262
199––––

131
20,541

651
170

1,470
730

1,380

55,091

2,749,448

1,192,404

Compensation income
Other––

25,668
3,769

Total extraordinary income–

29,437

Non-operating expenses

Amortization of organization expenses
Amortization of business commencement expenses
Commission expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets

2,028

11,935

Impairment loss
Relocation expenses

96,278–12,059727

Provision for loss on liquidation of subsidiaries and associates
Other–
5,056

40,529–103,362

65,252

Profit before income taxes

Total extraordinary losses

2,646,085

1,156,589

Income taxes - current
Income taxes - deferred

755,874(53,758)

665,332(24,678)

702,116

640,654

1,943,969

515,935

Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

5(9,701)(39,298)

1,953,670

555,234

Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

February 29, 2020

February 28, 2021

1,943,969

515,935

Valuation difference on available-for-sale securities
Foreign currency translation adjustment–(462)

13,300(602)

Remeasurements of defined benefit plans, net of tax

46,752

33,103

46,29045,801

Comprehensive income

Total other comprehensive income

1,990,260

561,736

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,990,260

561,736(0)(0)

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended February 29, 2020
(Thousands of yen)
Shareholders' equity
Share capitalBalance at beginning of period

Capital surplus

2,890,415

Retained earnings

822,859

Total shareholders'equity

Treasury shares

4,099,827(1,397,924)

6,415,178

Changes during period
Profit attributable to ownersof parent

1,953,670

1,953,670

Dividends of surplus(1,845,291)(1,845,291)

Purchase of treasury shares(326,142)(326,142)

Disposal of treasury shares

33

Net changes in items otherthan shareholders' equity–

Total changes during period
Balance at end of period––

108,379(326,138)(217,758)

2,890,415

822,859

4,208,207(1,724,062)

6,197,419

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income–664(174,637)(173,972)

Net changes in items otherthan shareholders' equity–(462)

46,752

46,290Total changes during period

–

(462)

46,752

46,290

Balance at end of period–

201(127,884)(127,682)

Balance at beginning of period
Changes during period
Profit attributable to ownersof parentDividends of surplus
Purchase of treasury shares
Disposal of treasury shares

Balance at beginning of period

Share acquisitionrightsNon-controllinginterests

Total net assets

22,337–

6,263,542

Changes during period
Profit attributable to ownersof parent

1,953,670

Dividends of surplus(1,845,291)

Purchase of treasury shares(326,142)

Disposal of treasury shares

3

Net changes in items otherthan shareholders' equity

26,02639,298111,616

Total changes during period

26,02639,298(106,142)

Balance at end of period

48,36439,2986,157,400

7Fiscal year ended February 28, 2021
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,890,415

Retained earnings

822,859

Treasury shares

4,208,207(1,724,062)

Total shareholders'equity6,197,419

Changes during period
Profit attributable to ownersof parent

555,234

555,234

Dividends of surplus(440,329)(440,329)

Purchase of treasury shares
Disposal of treasury shares

282,448(735,838)(735,838)

729,516

1,011,964

Net changes in items otherthan shareholders' equity–

Total changes during period
Balance at end of period–

282,448

114,904(6,321)

391,030

2,890,415

1,105,307

4,323,111(1,730,384)

6,588,450

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income–201(127,884)(127,682)

Net changes in items otherthan shareholders' equity

13,300(602)

33,10345,801

Total changes during period

13,300(602)

33,10345,801

Balance at end of period

13,300(401)(94,780)(81,881)

Balance at beginning of period
Changes during period
Profit attributable to ownersof parent
Dividends of surplus
Purchase of treasury shares
Disposal of treasury shares

Balance at beginning of period

Share acquisitionrightsNon-controllinginterests

Total net assets

48,36439,2986,157,400

Changes during period
Profit attributable to ownersof parent

555,234

Dividends of surplus(440,329)

Purchase of treasury shares(735,838)

Disposal of treasury shares

1,011,964

Net changes in items otherthan shareholders' equity

20,307(39,298)

26,809Total changes during period

20,307(39,298)

417,840

Balance at end of period

68,671–

6,575,240

8

Consolidated statements of cash flows(Thousands of yen)
Fiscal year ended

Fiscal year ended

February 29, 2020

February 28, 2021

Cash flows from operating activities
Profit before income taxes

2,646,085

1,156,589

Depreciation
Amortization of deferred assets

295,824
17,159318,732
38,153

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

3,111
25,376(4,339)20,716

Increase (decrease) in retirement benefit liability
Increase (decrease) in remeasurements of defined benefit

116,412

181,138

46,752

33,103plans
Increase (decrease) in provision for loss on liquidation ofsubsidiaries and associates
Increase (decrease) in other provisions–

40,529

(617)

(637)

Interest and dividend income
Interest expenses(25)
95(21)
2,116––

30,100(214,674)

2,028
96,278

11,935
12,059Decrease (increase) in trade receivables
Decrease (increase) in inventories(209,218)(8,652)(1,320,673)(24,098)

Decrease (increase) in prepaid expensesIncrease (decrease) in trade payables(27,194)
(687)

5,396
2,052

Decrease (increase) in consumption taxes refund receivable
Increase (decrease) in accrued consumption taxes(1,886)
228,896(11,806)(134,930)

Increase (decrease) in accounts payable - other
Increase (decrease) in advances received(190,002)
382,157

84,585150,155

Share issuance costs
Subsidy income
Loss on retirement of property, plant and equipment
Impairment loss

Other, net

89,96875,385

Subtotal

3,511,861

451,568

Interest and dividends received

2521(95)(680,879)(2,116)(805,881)

80,846–105,352
214,674

2,911,758(36,379)(445,194)(263,794)(40,068)(101,714)

49,000––(104,856)

Purchase of insurance funds
Payments of leasehold and guarantee deposits(18,863)(187,986)(18,863)(174,521)

Proceeds from refund of leasehold and guarantee deposits
Other, net

6,320(15,661)

33,052(24,848)

Net cash provided by (used in) investing activities(652,453)(655,546)

Interest paid
Income taxes paid
Income taxes refund
Proceeds from subsidy income
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from non-controlling shareholders with aconsolidated subsidiary establishment
Purchase of investment securities

9(Thousands of yen)
Fiscal year ended

Fiscal year ended

February 29, 2020

February 28, 2021

Cash flows from financing activities
Proceeds from short-term borrowings–

4,000,000

Repayments of short-term borrowings
Dividends paid–
(1,838,453)(4,000,000)(447,164)

Proceeds from exercise of employee share options
Purchase of treasury shares–(326,142)

32(737,325)

Proceeds from disposal of treasury shares
Proceeds from issuance of share acquisition rights

326,026

969,944
32,210Net cash provided by (used in) financing activities(2,138,565)(182,302)

Effect of exchange rate change on cash and cash equivalents

250784

Net increase (decrease) in cash and cash equivalents

120,990(873,444)

Cash and cash equivalents at beginning of period

4,716,148

4,837,138

Cash and cash equivalents at end of period

4,837,138

3,963,694

10