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, 2018
(Based on Japanese GAAP)
April 9, 2018
Company name:

RISO KYOIKU CO.,LTD

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

URL

http://www.tomas.co.jp/

President and CEO
Director

Masahiko Tenbo
Kazunori Noto

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

May 25, 2018
May 28, 2018

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

May 10, 2018
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, 2018 (from March 1, 2017 to February 28, 2018)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended February 28, 2018
22,584
8.7
2,158
5.2
2,139
5.3
1,381
8.3
Year ended February 28, 2017
20,777
5.8
2,051
8.5
2,032
9.4
1,275
(10.7)
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
–
22.0
18.6
9.6
–
18.1
17.1
9.9

Diluted earnings per
share

Earnings per share
Yen
28.08
25.12

Year ended February 28, 2018Year ended February 28, 2017(2) Consolidated financial position

Total assets
As of February 28, 2018
As of February 28, 2017

Net assets

Equity ratio

Millions of yen
11,724
11,250Millions of yen
6,273
6,301

Cash flows fromoperating activities
Millions of yen
2,278
2,481

Cash flows frominvesting activities
Millions of yen
(593)
(527)

Net assets per share
%
53.5
56.0

Yen
127.48128.04(3) Consolidated cash flows

Year ended February 28, 2018Year ended February 28, 2017

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(1,377)4,171(2,603)3,866

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

Year ended February 28, 2017
Year ended February 28, 2018Year ending February 28, 2019
(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

%

%

0.00
7.00

12.00
7.00

6.00
7.00

7.00
7.00

25.00
28.00

1,263
1,377

99.5
99.7

17.9
21.9

7.50

7.50

7.50

7.50

30.00

1

98.4

3. Forecast of consolidated financial results for the year ending February 28, 2019 (from March 1, 2018 to February 28, 2019)
Net sales
Full year

Millions of yen
24,200Percentages 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
7.2
2,510
16.3
2,500
16.8
1,500
8.6
30.48

4. Notes(1) Changes in significant subsidiaries during the year ended February 28, 2018(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, 2018

52,069,943 shares As of February 28, 201752,069,943 shares

Number of treasury shares at the end of the period
As of February 28, 2018

2,860,618 shares As of February 28, 2017

2,858,038 shares

49,210,431 shares Year ended February 28, 2017

50,771,346 shares

Average number of shares during the period
Year ended February 28, 20182

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 28, 2017

As of February 28, 2018

AssetsCurrent assets
Cash and deposits
Operating accounts receivable

3,866,056
739,750

4,171,521
833,705

Inventories
Deferred tax assets

125,894
527,126

100,017517,310

Other
Allowance for doubtful accounts

356,726(17,489)444,926(15,065)5,598,064

6,052,415

2,005,952(1,009,241)

2,223,157(1,103,396)

996,710

1,119,760

1,377,044(514,336)

1,485,572(533,456)

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

862,707952,116

417,963
13,668417,963
13,668(13,668)(13,668)002,277,381

2,489,840

203,257

162,163203,257

162,163

1,934

1,997

852,857
2,046,458

574,629
2,143,707

Other
Allowance for doubtful accounts

202,093(6,312)

236,094(5,892)

Total investments and other assets

3,097,033

2,950,536

5,577,672

5,602,541

527

439

66,274
8,005

68,718–Deferred tax assets
Lease and guarantee deposits

Total non-current assets
Deferred assets
Deferred organization expenses
Business commencement expenses
Share issuance cost
Total deferred assets
Total assets

374,806

69,157

11,250,543

11,724,113

(Thousands of yen)
As of February 28, 2017

As of February 28, 2018

Liabilities
Current liabilities
Accounts payable - other810,910

761,970

Income taxes payable
Advances received

254,039
1,090,837

302,6131,331,464

Provision for sales returns
Provision for bonuses

3,635
179,984

2,850
213,175

Provision for cancelation refunds
Provision for loss on litigation

2,475
100,000

358
15,619Asset retirement obligations
Other

14,787706,149

18,324784,449

Total current liabilities

3,162,819

3,430,826

Non-current liabilities
Net defined benefit liability

942,966

1,101,479

Asset retirement obligations
Other843,426
157

918,495–

Total non-current liabilities

1,786,549

2,019,974

4,949,369

5,450,800

Shareholders' equity
Capital stock

2,890,415

2,890,415

Capital surplus
Retained earnings

822,859
3,971,448

822,859
3,975,192

Treasury shares(1,394,246)(1,396,388)

Total shareholders' equity

6,290,476

6,292,080

387
227

431
870

Remeasurements of defined benefit plans

10,081(20,068)

Total accumulated other comprehensive income

10,697(18,766)

0–6,301,174

6,273,313

11,250,543

11,724,113

Total liabilities
Net assets

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
February 28, 2017

Fiscal year ended
February 28, 2018

Net sales

20,777,361

22,584,511

Cost of sales

15,072,702

16,242,601

Gross profit

5,704,658

6,341,909

Selling, general and administrative expenses

3,653,346

4,183,692

Operating profit

2,051,312

2,158,217

49

32

Dividend income
Gain on forfeiture of unclaimed dividends

47
7,091

47
–

Gain on bad debts recovered
Commission fee

4,542
446

1,297
1,496

Miscellaneous income
Other

663
1,400

884
1,932

Total non-operating income

14,241

5,691

Non-operating income
Interest income

Non-operating expenses
Interest expenses

59

370

Amortization of share issuance cost
Foreign exchange losses

31,441–

8,005
14,379

Other

1,983

1,187

Total non-operating expenses
Ordinary profit
Extraordinary income
Reversal of allowance for provision for cancelation refunds
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets

33,48323,9432,032,069

2,139,965

41,744

1,848

41,744

1,848

3,622

1,039

Impairment loss
Relocation expenses

54,0495,584

20,562
12,626

Litigation expenses
Provision for loss on litigation

21,016
100,000

15,604
15,619Loss on liquidation of business
Loss on insurance cancellation–
13,00445,009
–

Other

9,636

11,150Total extraordinary losses

206,913

121,611

1,866,901

2,020,202

Income taxes - current

298,712

347,484

Refund of income taxes
Income taxes - deferred(18,939)
311,803(9,829)300,901

Total income taxes

591,576

638,556

1,275,325

1,381,646–(0)1,275,325

1,381,646

Profit before income taxes

ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

February 28, 2017

February 28, 2018

1,275,325

1,381,646

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

456
227

43
643

Remeasurements of defined benefit plans, net of tax(95,835)(30,150)(95,152)(29,464)

Comprehensive income

Total other comprehensive income

1,180,172

1,352,181

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,180,172

1,352,181

00Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended February 28, 2017
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

2,890,415

Retained earnings

822,859

Total shareholders'equityTreasury shares

4,181,754(215,016)

7,680,012

Changes of items during period
Profit attributable to ownersof parent

1,275,325

Dividends of surplus(1,434,813)

1,275,325(1,434,813)

Purchase of treasury shares(1,334,974)(1,334,974)

155,744

104,926

Disposal of treasury shares(50,817)

Transfer to capital surplus
from retained earnings

50,817(50,817)––(210,305)(1,179,229)(1,389,535)

2,890,415

822,859

3,971,448(1,394,246)

6,290,476–

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income(68)–

105,917

105,849

Non-controllinginterests

Total net assets–

7,785,861

Changes of items during period
Profit attributable to ownersof parent

1,275,325

Dividends of surplus(1,434,813)

Purchase of treasury shares(1,334,974)

Disposal of treasury shares

104,926

Transfer to capital surplus
from retained earnings–

Net changes of items otherthan shareholders' equity

456

227

(95,835)(95,152)

0(95,152)

Total changes of items during
period456

227(95,835)(95,152)

0(1,484,687)

Balance at end of current period

387

227

10,081

10,6970

6,301,1747

Fiscal year ended February 28, 2018
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

2,890,415

Retained earnings

822,859

Total shareholders'equityTreasury shares

3,971,448(1,394,246)

6,290,476

Changes of items during period
Profit attributable to ownersof parent

1,381,646

1,381,646

Dividends of surplus(1,377,901)(1,377,901)

Purchase of treasury shares(2,141)(2,141)

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period

–

–

3,744

(2,141)

1,603

2,890,415

822,859

3,975,192(1,396,388)

6,292,080

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income387

227

10,081

10,697

Non-controllinginterests

Total net assets

06,301,174

Changes of items during period
Profit attributable to ownersof parent

1,381,646

Dividends of surplus(1,377,901)

Purchase of treasury shares(2,141)

Net changes of items otherthan shareholders' equity

43

643

(30,150)(29,464)(0)(29,464)

Total changes of items during
period43643(30,150)(29,464)(0)(27,861)

Balance at end of current period

431

870

(20,068)(18,766)–

6,273,313

8

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

Fiscal year ended

February 28, 2017

February 28, 2018

Cash flows from operating activities
Profit before income taxes

1,866,901

2,020,202

Depreciation
Amortization of deferred assets

208,095
31,441

233,061
22,905

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

12,06735,897(2,843)33,190

Increase(decrease) in provision for cancelation refunds
Increase (decrease) in provision for loss on litigation(43,147)
100,000(2,116)
15,619

Increase (decrease) in net defined benefit liability
Increase (decrease) in other provision

116,016(10,142)

158,513(785)Interest and dividend income
Loss on retirement of property, plant and equipment

(96)
3,622

(79)
1,039

Impairment loss
Interest expenses

54,04959

20,562370

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

616,816(26,258)(93,955)
25,876

Decrease (increase) in prepaid expenses
Increase (decrease) in notes and accounts payable - trade(17,937)(7,701)(61,473)
3,243

Increase (decrease) in accrued consumption taxes
Increase (decrease) in accounts payable - other(141,828)(45,252)

26,86532,860

Increase (decrease) in advances received
Other, net(64,740)
14,660240,626
65,9582,702,523

2,739,644

96
(59)

79
(370)

–
(222,852)(109,900)(378,960)

1,361

27,9782,481,069

2,278,471

Purchase of property, plant and equipment
Purchase of intangible assets(216,143)(69,646)(324,231)(38,533)

Purchase of insurance funds
Proceeds from cancellation of insurance funds(39,441)
12,234(39,441)–

Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits(148,450)
52,300(191,643)
79,702

Payments for deferred assets
Other, net(66,801)(51,113)(26,509)(52,732)

Net cash provided by (used in) investing activities(527,063)(593,387)

SubtotalInterest and dividend income received
Interest expenses paid
Litigation settlement paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities

9(Thousands of yen)
Fiscal year ended

Fiscal year ended

February 28, 2017

February 28, 2018

Cash flows from financing activities
Increase in short-term loans payable–

900,000

Decrease in short-term loans payable
Cash dividends paid–
(1,418,307)(900,000)(1,373,651)

Purchase of treasury shares
Proceeds from disposal of treasury shares(1,334,974)
155,744(2,141)–(6,456)(1,279)(2,603,993)(1,377,072)

227(2,545)

Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents(649,759)

305,465

Cash and cash equivalents at beginning of period

4,515,815

3,866,056

Cash and cash equivalents at end of period

3,866,056

4,171,521

10