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, 2016
(Based on Japanese GAAP)
October 11, 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:
Director
Scheduled date to file Quarterly Securities Report:

Kazunori Noto
October 12, 2016

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 six months ended August 31, 2016 (from March 1, 2016 to August 31, 2016)(1) Consolidated operating results (cumulative)
Net sales
Six months ended August 31, 2016
Six months ended August 31, 2015

Millions of yen
9,964
9,432

Percentages indicate year-on-year changes
Profit attributable toOperating income
Ordinary income
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
5.6
734
8.4
721
9.0
463
3.7
2.0
677 105.5
662 108.1
446 (76.4)

Earnings per share

Diluted earnings per share
Yen
8.93
8.67

Six months ended August 31, 2016
Six months ended August 31, 2015

Yen––(2) Consolidated financial position
Total assets
As of August 31, 2016
As of February 29, 2016

Net assets

Millions of yen
12,78512,493

Equity ratio

Millions of yen
7,834
7,785

Net assets per share%
61.3
62.3

Yen
150.81150.84

2. Cash dividends
Annual dividends per share

Year ended February 29, 2016
Year ending February 28, 2017

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
0.00
0.00

Yen
0.00
12.00

Yen
0.00

Yen
10.00

Yen
10.00

6.00

6.00

24.00

Year ending February 28, 2017 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 28, 2017 (from March 1, 2016 to February 28, 2017)
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
20,800
5.9
2,100
11.1
2,050
10.4
1,250 (12.5)
24.07

1

4. Notes(1) Changes in significant subsidiaries during the six months ended August 31, 2016(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 August 31, 2016

52,069,943 shares As of February 29, 2016

52,069,943 shares

Number of treasury shares at the end of the period
As of August 31, 2016

123,108 shares As of February 29, 2016

452,238 shares

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

51,918,506 shares Six months ended August 31, 2015

251,566,704 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 29, 2016

As of August 31, 2016

AssetsCurrent assets
Cash and deposits
Operating accounts receivable

4,515,815
1,356,567

5,098,426
1,045,521

Inventories
Deferred tax assets

99,636100,167

98,111
86,331Other
Allowance for doubtful accounts

334,597(11,733)

377,336(19,717)

6,395,050

6,686,009

1,890,504(967,660)

1,932,453(991,931)

922,843

940,522

1,345,177(508,114)

1,357,832(507,869)

837,062

849,962

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 fixturesAccumulated 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
Deferred tax assets
Lease and guarantee deposits
Other

0

0

2,177,869

2,208,448

200,430

208,381

200,430

208,381

1,274

1,477

1,563,305
1,952,297

1,519,170
1,948,972

163,750

193,4293,680,628

3,663,050

6,058,928

6,079,880

Share issuance cost

39,44620,013

Total deferred assets

39,44620,013

12,493,425

12,785,902

Total investments and other assets
Total non-current assets
Deferred assets

Total assets3

(Thousands of yen)
As of February 29, 2016

As of August 31, 2016

Liabilities
Current liabilities
Accounts payable - other805,368

1,040,923

Income taxes payable
Advances received

127,684
1,155,577

189,639
1,230,101

Provision for sales returns
Provision for bonuses

13,777144,086

15,130163,517

Provision for cancellation refunds
Asset retirement obligations

45,622–

36,999
9,713

Other750,648

584,828

3,042,766

3,270,854

826,949
836,410

837,626
842,538

1,436

627

1,664,796

1,680,791

4,707,563

4,951,646

Capital stock
Capital surplus

2,890,415
822,859

2,890,415
822,859Retained earnings
Treasury shares

4,181,754(215,016)

4,078,391(59,509)

Total shareholders' equity

7,680,012

7,732,156

(68)

70

Remeasurements of defined benefit plans

105,917

102,028

Total accumulated other comprehensive income

105,849

102,099

Total current liabilities
Non-current liabilities
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

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

Total net assets
Total liabilities and net assets

47,785,861

7,834,256

12,493,425

12,785,902

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, 2015

August 31, 2016

Net sales
Cost of sales

9,432,508
7,060,853

9,964,9787,412,232

Gross profit

2,371,655

2,552,745

Selling, general and administrative expenses

1,694,356

1,818,295

677,299

734,449

209
23

2723

Gain on forfeiture of unclaimed dividends
Gain on bad debts recovered

3,795
1,396

3,528
3,145

Other

2,797

1,492

Total non-operating income

8,221

8,217

123
23,14641
19,433130

1,542

Operating income
Non-operating income
Interest income
Dividend income

Non-operating expenses
Interest expenses
Amortization of share issuance cost
Other
Total non-operating expenses23,399

21,017662,121721,649

1,312–

Reversal of allowance for provision for cancelation refunds

39,7607,461

Total extraordinary income

41,072

7,461

Loss on retirement of non-current assets
Impairment loss–
33,162

3,049
6,081

Litigation expenses
Loss on fraud transactions

8,439
22,062

7,718–

Business structure improvement expenses
Relocation expenses

22,840
6,629

–
5,852

Loss on insurance cancellation
Provision for loss on classroom closing

–
1,890

13,004––

3,324

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

Extraordinary losses

Other

95,02539,031

Income before income taxes and minority interests

Total extraordinary losses

608,168

690,079

Income taxes

161,226

226,447

Profit446,941

463,632

Profit attributable to owners of parent

446,941

463,6325

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

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

Six months ended

Six months ended

August 31, 2015

August 31, 2016

446,941

463,63262(3,705)

139(3,888)(3,643)(3,749)443,298

459,882

443,298

459,882––

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

6

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Income before income taxes and minority interests

Six months ended

Six months ended

August 31, 2015

August 31, 2016

608,168

690,079

Depreciation
Amortization of deferred assets

107,877
23,146100,141
19,433

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

6,385
21,575

7,983
19,431

Increase (decrease) in provision for cancellation refunds
Increase (decrease) in net defined benefit liability(45,328)(11,130)(8,622)
10,676

Increase (decrease) in other provisionInterest and dividend income

1,530
(232)

1,352
(50)

Interest expenses
Loss (gain) on sales of non-current assets

123(1,312)

41–

Impairment loss
Loss on retirement of property, plant and equipment

33,162
–

6,081
3,049

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories

320,713(10,129)

311,045
1,524

Increase (decrease) in notes and accounts payable - trade
Decrease (increase) in consumption taxes refund receivable

13,57999

1,046–

Increase (decrease) in accrued consumption taxes
Increase (decrease) in accounts payable - other(80,050)
41,717(213,750)
239,623

Increase (decrease) in advances received
Other, net(296,621)
54,41074,523
43,482

Subtotal

787,6811,307,094

232
(123)

50(41)

Income taxes paid
Income taxes refund(83,123)
63,745(119,566)–

Net cash provided by (used in) operating activities

768,413

1,187,536(64,818)(82,721)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets

62,264(30,920)–(41,397)

Proceeds from sales of investment securities
Payments for lease and guarantee deposits

357(6,950)–(39,707)

Proceeds from collection of lease and guarantee deposits
Purchase of insurance funds

32,513(44,920)

22,206(32,300)

Proceeds from cancellation of insurance funds
Other, net–(36,203)

12,234(31,631)

Net cash provided by (used in) investing activities(88,678)(193,317)

Interest and dividend income received
Interest expenses paid

Cash flows from investing activities
Purchase of property, plant and equipment

7

(Thousands of yen)

Cash flows from financing activities
Cash dividends paid

Six months ended

Six months ended

August 31, 2015

August 31, 2016
(558)

(512,214)

Purchase of treasury shares
Proceeds from disposal of treasury shares(1,227)
12,188(237)
104,926

Other, net(5,652)(4,083)

4,749(411,608)

Net increase (decrease) in cash and cash equivalents

Net cash provided by (used in) financing activities

684,484

582,610

Cash and cash equivalents at beginning of period

3,288,665

4,515,815

Cash and cash equivalents at end of period

3,973,149

5,098,4268