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, 2020
(Based on Japanese GAAP)
October 8, 2020
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 9, 2020

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–No

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, 2020 (from March 1, 2020 to August 31, 2020)(1) Consolidated operating results (cumulative)

Six months ended August 31, 2020
Six months ended August 31, 2019

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%
11,109 (14.5)(460)–(416)–(468)–
12,987
10.0
1,166
19.8
1,165
19.0
727
25.3
Earnings per share

Diluted earnings per share

Yen(3.23)
4.93

Six months ended August 31, 2020
Six months ended August 31, 2019

Yen
–
4.93

(2) Consolidated financial position
Total assets

Net assets

Millions of yen
12,55013,214As of August 31, 2020
As of February 29, 2020

Equity ratio

Millions of yen
5,496
6,157

Net assets per share
%
43.4
45.9

Yen
36.89
41.35

2. Cash dividends
Annual dividends per share

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
3.00
0.00

Yen
3.00
0.00

Yen
3.00

Yen
3.00

Yen
12.00

0.00

6.00
~9.00

6.00
~9.00

Year ending February 28, 2021 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 28, 2021 (from March 1, 2020 to February 28, 2021)
Net sales
Full year

Millions of yen
26,000Percentages 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
(2.6)
1,510 (44.4)
1,500 (45.4)
1,000 (48.8)
6.89

1

4. Notes(1) Changes in significant subsidiaries during the six months ended August 31, 2020(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, 2020

156,209,829 shares As of February 29, 2020

156,209,829 shares

Number of treasury shares at the end of the period
As of August 31, 2020

8,395,220 shares As of February 29, 2020

9,433,200 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 2020

144,983,900 shares Six months ended August 31, 20192

147,623,315 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 29, 2020

As of August 31, 2020

AssetsCurrent assets
Cash and deposits
Trade accounts receivable

4,837,138
1,133,803

3,649,182
1,433,012

Inventories
Income taxes receivable

111,399
106,096

134,967
41,330Other
Allowance for doubtful accounts

472,250(15,927)

448,086(16,721)6,644,759

5,689,859

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

2,907,773(1,351,765)

1,498,638

1,556,007

1,769,455(628,569)

1,840,557(670,978)1,140,886

1,169,579

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, 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
Leasehold and guarantee deposits
Other

00

3,057,487

3,143,550

135,571

148,562

135,571

148,562

670,422748,1362,416,943
257,5422,518,829
278,576

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

Total investments and other assets

3,338,836

3,539,470

6,531,895

6,831,582

237
37,461

184
29,215

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

337,699

29,40013,214,354

12,550,842

(Thousands of yen)
As of February 29, 2020

As of August 31, 2020

Liabilities
Current liabilities
Accounts payable - other

1,040,268

1,197,264

Income taxes payable
Advances received

523,320
1,551,565

222,907
1,876,550

Provision for sales returns
Provision for bonuses

3,008
244,486

1,577
265,129Asset retirement obligations
Other

4,539
1,131,788

9,071
794,517

Total current liabilities

4,498,977

4,367,018

Non-current liabilities
Lease obligations

6,091

4,996

1,499,862
1,052,023

1,600,870
1,074,170

–

7,067

2,557,977

2,687,105

7,056,954

7,054,123

Share capital
Capital surplus

2,890,415
822,859

2,890,415
1,105,307

Retained earnings
Treasury shares

4,208,207(1,724,062)

3,299,221(1,730,109)

Total shareholders' equity

6,197,419

5,564,835

Accumulated other comprehensive incomeForeign currency translation adjustment

201

(87)

Remeasurements of defined benefit plans(127,884)(112,288)

Total accumulated other comprehensive income(127,682)(112,375)

Share acquisition rights

48,36436,460Non-controlling interests

39,298

7,797

Retirement benefit liability
Asset retirement obligations
Deferred tax liabilities
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Total net assets
Total liabilities and net assets

4

6,157,400

5,496,718

13,214,354

12,550,842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, 2019

August 31, 2020

Net sales
Cost of sales

12,987,229
9,342,537

11,109,002
9,019,192

Gross profit

3,644,692

2,089,809

Selling, general and administrative expenses

2,478,553

2,549,810

Operating profit (loss)

1,166,138(460,000)

100

100

Foreign exchange gains
Gain on forfeiture of unclaimed dividends–1,930

1,491
2,100

Gain on bad debts recovered
Interest on tax refund

1,754
–

1,291
1,107–
841

70,204174

Non-operating income
Interest income
Dividend income

Subsidies for employment adjustment
Miscellaneous income
Other

1,333

617

Total non-operating income

5,872

76,99750–

2,082
30,100

6,438
–

–
1,470

Non-operating expenses
Interest expenses
Share issuance cost
Foreign exchange losses
Commission expenses
Other

202

311

6,691

33,964

Ordinary profit (loss)

1,165,319(416,968)

Extraordinary income
Other

–

3,181

–

3,181

1,803

–

Total non-operating expenses

Total extraordinary incomeExtraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit (loss) before income taxes

1,803

–

1,163,516(413,787)

Income taxes

435,916

86,369Profit (loss)

727,599(500,156)

Loss attributable to non-controlling interests–(31,500)

Profit (loss) attributable to owners of parent

727,599(468,656)5

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

Profit (loss)
Other comprehensive income
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

Six months ended

Six months ended

August 31, 2019

August 31, 2020

727,599(500,156)

129
10,288(289)
15,595

10,41715,306

738,017(484,850)

738,017(484,850)–(0)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)Six months ended

Six months ended

August 31, 2019

August 31, 2020

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

1,163,516(413,787)

Depreciation
Amortization of deferred assets

141,492
8,499

156,032
8,659

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

11,49924,560793
20,643

Increase (decrease) in retirement benefit liability
Increase (decrease) in other provisions

82,795(897)

101,008(1,430)–15,595(11)50(10)
2,082––

30,100(70,204)

Loss on retirement of property, plant and equipment
Decrease (increase) in trade receivables

1,803(527,823)–(299,241)

Decrease (increase) in inventories
Decrease (increase) in prepaid expenses(26,511)(3,280)(23,568)
11,405

Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes

12,42940,29013,406(334,968)

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

226,952
475,702160,434
324,985

Other, net(42,500)(61,860)

Subtotal

Increase (decrease) in remeasurements of defined benefit
plansInterest and dividend income
Interest expenses
Share issuance cost
Subsidy income

1,588,567(359,924)

Interest and dividends received

1110

Interest paid
Proceeds from subsidy income(50)–(2,082)
70,204

Income taxes paid
Income taxes refund(280,050)
38,188(437,089)
105,352

Net cash provided by (used in) operating activities

1,346,665(623,529)(228,665)(184,783)(14,179)(36,096)

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

49,000–(77,741)(104,867)

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

6,320(18,863)

3,030(18,863)

Other, net
Net cash provided by (used in) investing activities

7(3,834)(12,737)(287,963)(354,318)

(Thousands of yen)Six months ended

Six months ended

August 31, 2019

August 31, 2020

Cash flows from financing activities
Proceeds from short-term borrowings–

4,000,000

Repayments of short-term borrowings
Dividends paid–
(957,818)(4,000,000)(445,461)

–
(321)

32
(735,557)–

969,923

Net cash provided by (used in) financing activities(958,139)(211,063)

Effect of exchange rate change on cash and cash equivalents(1,569)954

Net increase (decrease) in cash and cash equivalents

98,992(1,187,956)

Cash and cash equivalents at beginning of period

4,716,148

4,837,138

Cash and cash equivalents at end of period

4,815,141

3,649,182

Proceeds from exercise of employee share options
Purchase of treasury shares
Proceeds from disposal of treasury shares8