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, 2019
(Based on Japanese GAAP)
October 9, 2019
Company name:
Riso Kyoiku Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

4714
URL http://www.tomas.co.jp/
President and CEO
Shigenori Hirano

Inquiries:
Vice president and CFO
Scheduled date to file Quarterly Securities Report:

Masaaki Kume
October 10, 2019

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

November 7, 2019
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, 2019 (from March 1, 2019 to August 31, 2019)(1) Consolidated operating results (cumulative)
Net sales
Six months ended August 31, 2019
Six months ended August 31, 2018

Millions of yen
12,987
11,808Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
10.0
1,166
19.8
1,165
19.0
727
25.3
9.2
973
31.5
979
34.9
580
15.3

Earnings per share

Diluted earnings per share
Yen
4.93
3.93

Six months ended August 31, 2019
Six months ended August 31, 2018

Yen
4.93
–(2) Consolidated financial position
Total assets
As of August 31, 2019
As of February 28, 2019

Net assets

Millions of yen
13,351
12,510Equity ratio

Millions of yen
6,041
6,263

Net assets per share
%
45.1
49.9

Yen
40.78
42.28

2. Cash dividends
Annual dividends per share

Year ended February 28, 2019Year ending February 29, 2020

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
7.50
3.00

Yen
7.50
3.00

Yen
7.50

Yen
3.50

Yen
26.00

3.00

3.00

12.00

Year ending February 29, 2020 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 29, 2020 (from March 1, 2019 to February 29, 2020)
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
27,000
10.2
3,010
19.0
3,000
18.1
1,800
14.2
12.19

1

4. Notes(1) Changes in significant subsidiaries during the six months ended August 31, 2019(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, 2019

156,209,829 shares As of February 28, 2019

156,209,829 shares

Number of treasury shares at the end of the period
As of August 31, 2019

8,586,800 shares As of February 28, 2019

8,586,160 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 2019

147,623,315 shares Six months ended August 31, 2018

2147,627,243 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 28, 2019

As of August 31, 2019

AssetsCurrent assets
Cash and deposits
Operating accounts receivable

4,716,148
924,243

4,815,141
1,452,258

Inventories
Income taxes receivable

102,746
145,734

129,257
107,491

Other
Allowance for doubtful accounts

441,968(12,816)

440,510(24,316)

6,318,025

6,920,344

2,507,978(1,147,080)

2,692,915(1,215,444)

1,360,897

1,477,470

1,656,340(557,721)

1,767,844(591,494)

1,098,619

1,176,350

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 depreciationBuildings and structures, netTools, 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
Deferred tax assets
Lease and guarantee deposits
Other

0

0

2,877,480

3,071,784

153,609

138,577

153,609

138,577

637,347

621,251

2,236,021
239,660

2,307,293
254,383

Allowance for doubtful accounts(6,072)(6,072)

Total investments and other assets

3,106,956

3,176,8576,138,047

6,387,218

333
54,510281
43,765

Total non-current assets
Deferred assets
Deferred organization expenses
Business commencement expenses
Total deferred assets
Total assets

3

54,84444,046

12,510,917

13,351,609

(Thousands of yen)
As of February 28, 2019

As of August 31, 2019

Liabilities
Current liabilities
Accounts payable - other

1,222,619

1,492,128

Income taxes payable
Advances received

400,616
1,169,407

484,734
1,645,110

Provision for sales returns
Provision for bonuses

3,626
219,110

2,728
243,670

Asset retirement obligationsOther

2,127
843,958–
936,258

3,861,464

4,804,630

Total current liabilities
Non-current liabilities
Lease obligations

8,264

7,180

Net defined benefit liability
Asset retirement obligations

1,383,449
994,196

1,466,244
1,031,869

Total non-current liabilities

2,385,910

2,505,294

6,247,375

7,309,924

Shareholders' equity
Capital stock

2,890,415

2,890,415

Capital surplus
Retained earnings

822,859
4,099,827

822,859
3,867,874

Treasury shares(1,397,924)(1,398,246)

Total shareholders' equity6,415,178

6,182,903

Foreign currency translation adjustment
Remeasurements of defined benefit plans

664(174,637)

793(164,348)

Total accumulated other comprehensive income(173,972)(163,555)

22,337

22,337

Total liabilities
Net assets

Accumulated other comprehensive income

Share acquisition rights
Total net assets
Total liabilities and net assets

4

6,263,542

6,041,685

12,510,917

13,351,609

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, 2018

August 31, 2019

Net sales
Cost of sales

11,808,045
8,569,008

12,987,229
9,342,537

Gross profit

3,239,036

3,644,692

Selling, general and administrative expenses

2,265,375

2,478,553

973,661

1,166,138

1026

100

Gain on forfeiture of unclaimed dividends
Gain on bad debts recovered

–
1,325

1,930
1,754

Foreign exchange gains
Miscellaneous income

1,880
1,017

–
841

Other

1,646

1,333

Total non-operating income

5,906

5,872

Interest expensesForeign exchange losses

0–

50
6,438

Other–

202

Operating profit
Non-operating income
Interest income
Dividend income

Non-operating expenses

Total non-operating expenses

06,691

979,567

1,165,319

80–

Insurance income

27,970–Total extraordinary income

28,050–Loss on retirement of non-current assets
Impairment loss

30,273
10,006

1,803–

Litigation expenses
Relocation expenses

31,443
1,753––

Ordinary profit
Extraordinary income
Reversal of allowance for provision for cancelation refunds

Extraordinary losses

73,477

1,803

Profit before income taxes

Total extraordinary losses

934,141

1,163,516

Income taxes

353,516

435,916

Profit

580,625

727,599

Profit attributable to owners of parent

580,625

727,599

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

ProfitOther comprehensive income

Six months ended

Six months ended

August 31, 2018

August 31, 2019

580,625

727,599

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

(166)
(128)

–
129

Remeasurements of defined benefit plans, net of tax(5,624)

10,288(5,918)

10,417

Comprehensive income

Total other comprehensive income

574,706

738,017Comprehensive income attributable toComprehensive income attributable to owners of parent

574,706

738,017(0)–Comprehensive income attributable to non-controllinginterests

6

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

Six months ended

August 31, 2018

August 31, 2019

Cash flows from operating activities
Profit before income taxes

934,141

1,163,516

Depreciation
Amortization of deferred assets

123,508
8,419

141,492
8,499

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

8,248
3,195

11,49924,560

Increase (decrease) in provision for cancellation refunds
Increase (decrease) in net defined benefit liability(80)
10,657–
82,795

887
(36)

(897)
(11)

Interest expenses
Impairment loss

0
10,00650–

Loss on retirement of property, plant and equipment
Decrease (increase) in notes and accounts receivable -30,273

1,803(436,151)(527,823)(8,826)(26,511)

Decrease (increase) in prepaid expenses
Increase (decrease) in notes and accounts payable - trade

52,488
12,836(3,280)12,429

Increase (decrease) in accrued consumption taxes
Increase (decrease) in accounts payable - other(77,886)
297,029

40,290226,952

Increase (decrease) in advances received
Other, net

208,423(53,022)475,702(42,500)

1,124,113

1,588,567

36(0)11(50)(15,619)(194,355)–(280,050)

Income taxes refund

25,711

38,188Net cash provided by (used in) operating activities

939,885

1,346,665(260,709)(5,605)(228,665)(14,179)–49,000

Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits(116,537)
25,936(77,741)
6,320

Purchase of insurance funds
Other, net–(13,583)(18,863)(3,834)

Net cash provided by (used in) investing activities(370,499)(287,963)

Increase (decrease) in other provisionInterest and dividend income

tradeDecrease (increase) in inventories

SubtotalInterest and dividend income received
Interest expenses paid
Litigation settlement paid
Income taxes paid

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from non-controlling shareholders with aconsolidated subsidiary establishment

7

(Thousands of yen)

Cash flows from financing activities
Cash dividends paid
Purchase of treasury shares
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Six months ended

Six months ended

August 31, 2018

August 31, 2019

(714,350)(957,818)

(370)
(157)

(321)
–

(714,877)(958,139)

469(1,569)Net increase (decrease) in cash and cash equivalents(145,020)

98,992

Cash and cash equivalents at beginning of period

4,171,521

4,716,148

Cash and cash equivalents at end of period

4,026,500

4,815,1418