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, 2021
(Based on Japanese GAAP)
October 4, 2021
Company name:
Riso Kyoiku Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

4714
URL https://www.riso-kyoikugroup.com/
President and CEO
Shigenori Hirano

Inquiries:
Vice president and CFOScheduled date to file Quarterly Securities Report:

Masaaki Kume
October 5, 2021

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, 2021 (from March 1, 2021 to August 31, 2021)(1) Consolidated operating results (cumulative)

Six months ended August 31, 2021
Six months ended August 31, 2020

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%
14,612
31.5
1,331
–
1,373
–
874
–
11,109 (14.5)(460)–(416)–(468)–
Earnings per share

Diluted earnings per share

Yen
5.91
(3.23)

Six months ended August 31, 2021
Six months ended August 31, 2020

Yen
5.90
–(2) Consolidated financial position
Total assets
As of August 31, 2021
As of February 28, 2021

Net assets

Millions of yen
14,48913,940Equity ratio

Millions of yen
6,075
6,575

Net assets per share%
41.5
46.7

Yen
40.64
44.02

2. Cash dividends
Annual dividends per share

Year ended February 28, 2021
Year ending February 28, 2022

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

Yen
9.50

Yen
9.50

0.00

12.00

12.00

Year ending February 28, 2022 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 28, 2022 (from March 1, 2021 to February 28, 2022)
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
29,50017.1
2,810 178.1
2,800 134.8
1,900 242.2
12.98

1

4. Notes(1) Changes in significant subsidiaries during the six months ended August 31, 2021
(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, 2021

156,209,829 shares As of February 28, 2021

156,209,829 shares

Number of treasury shares at the end of the period
As of August 31, 2021

8,396,370 shares As of February 28, 2021

8,396,070 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 2021

147,813,598 shares Six months ended August 31, 2020

2144,983,900 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 28, 2021

As of August 31, 2021

AssetsCurrent assets
Cash and deposits
Trade accounts receivable

3,963,694
2,454,135

4,170,254
2,082,504

Inventories
Income taxes receivable

135,497
37,672

155,952–

Other
Allowance for doubtful accounts

438,892(11,588)516,990(12,987)

7,018,304

6,912,715

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

3,374,376(1,483,421)

1,540,339

1,890,954

1,858,972(701,592)

2,038,620(748,364)

1,157,379

1,290,255

417,963
13,668417,963
13,668(13,668)(13,668)00

3,115,682

3,599,173

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, netTools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, netLand
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Other

177,485

192,507

Total intangible assets

177,485

192,507

Investments and other assets
Investment securities

124,027

134,676

Deferred tax assets
Leasehold and guarantee deposits

678,8912,558,477

704,135
2,643,261

Other
Allowance for doubtful accounts

273,534(6,072)309,256(6,072)

Total investments and other assets

3,628,859

3,785,257

6,922,027

7,576,938

13,940,332

14,489,653

Total non-current assets
Total assets3

(Thousands of yen)
As of February 28, 2021

As of August 31, 2021

Liabilities
Current liabilities
Accounts payable - other

1,149,166

1,396,874

Income taxes payable
Advances received

422,847
1,701,720

597,641
2,095,736

Provision for sales returns
Provision for bonuses

2,370
265,2022,802
289,635

Provision for loss on liquidation of subsidiaries andassociates40,529

1,977

Asset retirement obligations
Other

12,565
1,005,995

1,419
1,086,251

Total current liabilities

4,600,399

5,472,339

3,895

2,789

1,681,000
1,073,012

1,766,071
1,166,262

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

6,783

6,499

2,764,692

2,941,623

7,365,091

8,413,962

Share capital
Capital surplus

2,890,415
1,105,307

2,890,415
1,075,953

Retained earnings
Treasury shares

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

3,822,295(1,730,486)

Total shareholders' equity

6,588,450

6,058,177

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

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

13,30020,688Foreign currency translation adjustment
Remeasurements of defined benefit plans(401)(94,780)(1,848)(69,997)

Total accumulated other comprehensive income(81,881)(51,157)

68,671–

68,671
0

6,575,240

6,075,691

13,940,332

14,489,653

Share acquisition rights
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, 2020

August 31, 2021

Net sales
Cost of sales

11,109,002
9,019,192

14,612,856
10,490,623

Gross profit

2,089,809

4,122,232

Selling, general and administrative expenses

2,549,810

2,790,998

Operating profit (loss)(460,000)

1,331,233

10011
1,931

Foreign exchange gains
Gain on forfeiture of unclaimed dividends

1,491
2,100

1,538
2,691

Compensation income
Subsidy income–
70,204

7,974
27,358Recoveries of written off receivables
Interest on tax refund

1,291
1,107

1,268
142

174
617

336
5,155

76,997

48,407

Non-operating expenses
Interest expenses

2,082

1,883

Share issuance costs
Commission expenses

30,1001,470––

Litigation expenses
Other–
311

4,142
157

33,9646,182(416,968)

1,373,458

–

7,850

Compensation income
Other–
3,181

41,839–Total extraordinary income

3,181

49,690–315––2,983
543

Non-operating income
Interest income
Dividend income

Miscellaneous income
Other
Total non-operating income

Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Reversal of provision for loss on liquidation of subsidiaries
and associates

Extraordinary losses
Loss on retirement of non-current assets
Relocation expenses
Other
Total extraordinary losses–3,841(413,787)

1,419,306

Income taxes

86,369545,246

Profit (loss)(500,156)

874,060

Profit (loss) before income taxes

Profit (loss) attributable to non-controlling interests(31,500)

0Profit (loss) attributable to owners of parent(468,656)

874,060

5

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

Profit (loss)
Other comprehensive income

Six months ended

Six months ended

August 31, 2020

August 31, 2021

(500,156)

874,060

Valuation difference on available-for-sale securities
Foreign currency translation adjustment–(289)

7,388(1,447)

Remeasurements of defined benefit plans, net of tax

15,59524,782

15,30630,723Comprehensive income

Total other comprehensive income(484,850)

904,783

Comprehensive income attributable toComprehensive income attributable to owners of parent(484,850)

904,783(0)(0)

Comprehensive income attributable to non-controllinginterests

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

Six months ended

August 31, 2020

August 31, 2021

Cash flows from operating activities
Profit (loss) before income taxes(413,787)

1,419,306

Depreciation
Amortization of deferred assets

156,032
8,659

184,369–

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

79320,643

1,398
24,432

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

101,008

85,07015,59524,782–(38,551)

plans
Increase (decrease) in provision for loss on liquidation ofsubsidiaries and associates
Increase (decrease) in other provisions(1,430)432

Interest and dividend income
Interest expenses

(10)
2,082

(1,942)
1,883

Share issuance costs
Subsidy income

30,100(70,204)–(27,358)

Loss on retirement of property, plant and equipment
Decrease (increase) in trade receivables–(299,241)315
371,631

Decrease (increase) in inventories
Decrease (increase) in prepaid expenses(23,568)
11,405(20,455)(79,882)

Increase (decrease) in trade payables
Decrease (increase) in consumption taxes refund

13,406

18,933

receivable
Increase (decrease) in accrued consumption taxes–

12,545(334,968)

1,480

Increase (decrease) in accounts payable - other
Increase (decrease) in advances received

160,434
324,985

190,517394,015

Other, net(61,860)

70,569Subtotal(359,924)

2,633,495

Interest and dividends received

10

1,942

Interest paid
Proceeds from subsidy income(2,082)70,204(1,883)27,358

Income taxes paid
Income taxes refund(437,089)
105,352(419,300)
37,672

Net cash provided by (used in) operating activities(623,529)

2,279,286(184,783)(474,880)

Purchase of intangible assets
Payments of leasehold and guarantee deposits(36,096)(104,867)(46,828)(112,729)

Proceeds from refund of leasehold and guarantee deposits
Purchase of insurance funds

3,030(18,863)6,876(18,863)

Other, net(12,737)(28,259)

Net cash provided by (used in) investing activities(354,318)(674,685)

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

7

(Thousands of yen)Six months ended

Six months ended

August 31, 2020

August 31, 2021

Cash flows from financing activities
Proceeds from short-term borrowings

4,000,000

2,300,000

Repayments of short-term borrowings
Dividends paid

(4,000,000)(445,461)(2,300,000)(1,398,763)

32(735,557)–(101)

Proceeds from exercise of employee share options
Purchase of treasury sharesProceeds from disposal of treasury shares

969,923–

Net cash provided by (used in) financing activities(211,063)(1,398,865)

954

824

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents(1,187,956)

206,560

Cash and cash equivalents at beginning of period

4,837,138

3,963,694

Cash and cash equivalents at end of period

3,649,182

4,170,254

8