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 29, 2020
(Based on Japanese GAAP)
April 7, 2020
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 Kume

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

May 28, 2020
May 29, 2020

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

May 13, 2020
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 29, 2020 (from March 1, 2019 to February 29, 2020)(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 29, 2020
26,704
9.0
2,716
7.4
2,749
8.2
1,953
23.9
Year ended February 28, 201924,496
8.5
2,529
17.2
2,540
18.7
1,576
14.1

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
13.23
31.7
21.4
10.2
10.68
25.2
21.0
10.3

Diluted earnings per
share

Yen
13.24
10.68

Year ended February 29, 2020
Year ended February 28, 2019(2) Consolidated financial position

Total assets
As of February 29, 2020
As of February 28, 2019

Net assets

Equity ratio

Millions of yen
13,214
12,510Millions of yen
6,157
6,263

Cash flows fromoperating activities
Millions of yen
2,911
2,707

Cash flows frominvesting activities
Millions of yen
(652)
(731)

Net assets per share
%
45.9
49.9

Yen
41.35
42.28

(3) Consolidated cash flows

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

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(2,138)4,837(1,433)4,716

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

Year ended February 28, 2019Year ended February 29, 2020
Year ending February 28, 2021
(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

%

%

7.50
3.00

7.50
3.00

7.50
3.00

3.50
3.00

–
12.00

1,623
1,768

103.0
90.6

26.0
28.7

–

–

–

–

–

1

–

3. Notes(1) Changes in significant subsidiaries during the year ended February 29, 2020(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 29, 2020

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 February 29, 2020

9,433,200 shares As of February 28, 2019

8,586,160 shares

147,600,611 shares Year ended February 28, 2019

147,626,055 shares

Average number of shares during the period
Year ended February 29, 20202

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

As of February 29, 2020

AssetsCurrent assets
Cash and deposits
Operating accounts receivable

4,716,148
924,243

4,837,138
1,133,803

Inventories
Income taxes receivable

102,746
145,734

111,399
106,096

Other
Allowance for doubtful accounts

441,968(12,816)472,250(15,927)

6,318,025

6,644,759

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

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

1,360,897

1,498,638

1,656,340(557,721)

1,769,455(628,569)

1,098,619

1,140,886

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, 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
Leasehold and guarantee deposits
Other

0

0

2,877,480

3,057,487

153,609

135,571

153,609

135,571

637,347

670,4222,236,021
239,660

2,416,943
257,542

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

Total investments and other assets

3,106,956

3,338,836

6,138,047

6,531,895

333
54,510237
37,461

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

3

54,844

37,69912,510,917

13,214,354

(Thousands of yen)
As of February 28, 2019

As of February 29, 2020

Liabilities
Current liabilities
Accounts payable - other

1,222,619

1,040,268

Income taxes payable
Advances received

400,616
1,169,407

523,320
1,551,565

Provision for sales returns
Provision for bonuses

3,626
219,110

3,008
244,486

Asset retirement obligations
Other

2,127
843,958

4,539
1,131,788

3,861,464

4,498,977

Total current liabilities
Non-current liabilities
Lease obligations

8,264

6,091

Retirement benefit liability
Asset retirement obligations

1,383,449
994,196

1,499,862
1,052,023

Total non-current liabilities

2,385,910

2,557,977

6,247,375

7,056,954

Shareholders' equity
Capital stock

2,890,415

2,890,415

Capital surplus
Retained earnings

822,859
4,099,827

822,859
4,208,207

Treasury shares(1,397,924)(1,724,062)

Total shareholders' equity

6,415,178

6,197,419

Foreign currency translation adjustment
Remeasurements of defined benefit plans

664(174,637)

201(127,884)

Total accumulated other comprehensive income(173,972)(127,682)

22,337–48,36439,2986,263,542

6,157,400

12,510,917

13,214,354

Total liabilities
Net assets

Accumulated other comprehensive income

Share acquisition rights
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, 2019

Fiscal year ended
February 29, 2020

Net sales

24,496,171

26,704,899

Cost of sales

17,382,706

18,997,866

Gross profit

7,113,465

7,707,032

Selling, general and administrative expenses

4,583,501

4,990,043

Operating profit

2,529,963

2,716,989

20

25

Dividend income
Gain on bad debts recovered

55
2,677

0
2,768

Gain on forfeiture of unclaimed dividends
Foreign exchange gains

–
4,477

4,530
–

673
–

–
22,690Miscellaneous income
Other

1,770
2,595

1,220
2,604

Total non-operating income

12,27033,839Non-operating income
Interest income

Commission income
Contribution for construction

Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on cancellation of leases
Commission expenses
Other
Total non-operating expenses

27

95

–
1,221

262
199

–
78

651
170

1,327

1,380

2,540,907

2,749,448

358
135

–
–

Insurance income
Compensation income

27,97034,918––

Total extraordinary income

63,382–

Ordinary profit
Extraordinary income
Reversal of allowance for provision for cancelation refunds
Gain on sales of investment securities

Extraordinary losses
Loss on retirement of non-current assets

49,4472,028

Impairment loss
Relocation expenses

10,4204,035

96,278–

Litigation expenses
Loss on insurance cancellation

32,923
10,726––

Other
Total extraordinary losses
Profit before income taxes

–

5,056

107,553

103,3622,496,736

2,646,085

Income taxes - current

544,632

755,874

Income taxes - deferred

375,808(53,758)

Total income taxes

920,441

702,116

1,576,295

1,943,969

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

5–(9,701)

1,576,295

1,953,670

Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

February 28, 2019

February 29, 2020

1,576,295

1,943,969

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

(431)
(206)

–
(462)

Remeasurements of defined benefit plans, net of tax(154,568)

46,752(155,206)

46,290Comprehensive income

Total other comprehensive income

1,421,089

1,990,260

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,421,089

1,990,260

(0)

(0)

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended February 28, 2019
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

2,890,415

Retained earnings

822,859

Treasury shares

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

Total shareholders'equity6,292,080

Changes of items during period
Profit attributable to ownersof parent

1,576,295

Dividends of surplus(1,451,660)

1,576,295(1,451,660)

Purchase of treasury shares(1,536)(1,536)

Disposal of treasury shares–

Net changes of items otherthan shareholders' equity–

Total changes of items during
periodBalance at end of current period––

124,634(1,536)

123,098

2,890,415

822,859

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

6,415,178

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income431

870(20,068)(18,766)

Net changes of items otherthan shareholders' equity

(431)

(206)

(154,568)(155,206)

Total changes of items during
period

(431)

(206)

(154,568)(155,206)

Balance at end of current period–

664(174,637)(173,972)

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

Balance at beginning of current
periodShare acquisitionrightsNon-controllinginterests

Total net assets––

6,273,313

Changes of items during period
Profit attributable to ownersof parent

1,576,295

Dividends of surplus(1,451,660)

Purchase of treasury shares(1,536)

Disposal of treasury shares–

Net changes of items otherthan shareholders' equity

22,337–(132,868)

Total changes of items during
period22,337–(9,770)

Balance at end of current period

22,337–

6,263,542

7

Fiscal year ended February 29, 2020
(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

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

6,415,178

Changes of items 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

3

3

Net changes of items otherthan shareholders' equity–

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

–

(462)

46,752

46,290Total changes of items during
period–(462)

46,752

46,290

Balance at end of current period–

201(127,884)(127,682)

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

Balance at beginning of current
periodShare acquisitionrightsNon-controllinginterests

Total net assets

22,337–

6,263,542

Changes of items 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 of items otherthan shareholders' equity

26,02639,298111,616

Total changes of items during
period26,02639,298(106,142)

Balance at end of current period

48,36439,2986,157,400

8

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

Fiscal year ended

February 28, 2019

February 29, 2020

Cash flows from operating activities
Profit before income taxes

2,496,736

2,646,085

Depreciation
Amortization of deferred assets

254,649
16,918295,824
17,159

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses(2,069)
5,935

3,111
25,376

Increase(decrease) in provision for cancelation refunds
Increase (decrease) in retirement benefit liability(358)
281,970–
116,412

Increase (decrease) in remeasurements of defined benefit
plans(154,568)

46,752

776
(75)

(617)
(25)

Loss on retirement of property, plant and equipment
Impairment loss

49,447
10,4202,028
96,278Interest expenses
Decrease (increase) in notes and accounts receivable - trade27(90,538)95(209,218)

Decrease (increase) in inventories
Decrease (increase) in prepaid expenses(2,728)(8,066)(8,652)(27,194)

317
–

(687)
(1,886)

Increase (decrease) in accrued consumption taxes
Increase (decrease) in accounts payable - other81
464,600

228,896(190,002)

Increase (decrease) in advances received
Other, net(162,056)(4,046)382,157
89,968Subtotal

3,157,373

3,511,861

75
(27)

25
(95)

(15,619)(459,561)–(680,879)

25,71180,846

2,707,951

2,911,758(545,664)(38,520)(445,194)(40,068)–

49,000

Proceeds from sales of investment securities
Purchase of insurance funds

1,511(18,863)–(18,863)

Payments for leasehold and guarantee deposits
Proceeds from collection of leasehold and guarantee deposits(153,405)
60,862(187,986)
6,320

Increase (decrease) in other provisionInterest and dividend income

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

Interest 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
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from non-controlling shareholders with aconsolidated subsidiary establishment

Other, net(37,064)(15,661)

Net cash provided by (used in) investing activities(731,145)(652,453)

9

(Thousands of yen)

Cash flows from financing activities
Cash dividends paid

Fiscal year ended

Fiscal year ended

February 28, 2019

February 29, 2020

(1,452,981)(1,838,453)

Proceeds from issuance of share acquisition rights
Purchase of treasury shares

22,337(1,536)26,026(326,142)

Proceeds from disposal of treasury shares
Other, net–(1,567)

3–(1,433,748)(2,138,565)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

1,569

250

Net increase (decrease) in cash and cash equivalents

544,627

120,990

Cash and cash equivalents at beginning of period

4,171,521

4,716,148

Cash and cash equivalents at end of period

4,716,148

4,837,13810