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 Three Months Ended May 31, 2017
(Based on Japanese GAAP)
July 10, 2017
Company name:
RISO KYOIKU CO.,LTD
Stock exchange listing: Tokyo
Stock code:
Representative:

4714
URL http://www.tomas.co.jp/President and CEO
Masahiko Tenbo

Inquiries:
Director
Scheduled date to file Quarterly Securities Report:

Kazunori Noto
July 11, 2017

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

Holding of quarterly financial results meeting:

NoTEL

03-5996-3701(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended May 31, 2017 (from March 1, 2017 to May 31, 2017)(1) Consolidated operating results (cumulative)
Net sales
Three months ended May 31, 2017
Three months ended May 31, 2016

Millions of yen4,388
4,061

Percentages indicate year-on-year changes
Profit attributable toOperating income
Ordinary income
owners of parent% Millions of yen% Millions of yen% Millions of yen%
8.0(332)–(343)–(244)–6.9(206)–(212)–(146)–Earnings per share

Diluted earnings per share

Yen(4.96)(2.82)

Three months ended May 31, 2017
Three months ended May 31, 2016

Yen––(2) Consolidated financial position
Total assets
As of May 31, 2017
As of February 28, 2017

Net assets

Millions of yen
10,541
11,250Equity ratio

Millions of yen
5,713
6,301

Net assets per share%
54.2
56.0

Yen
116.10128.04

2. Cash dividends
Annual dividends per share

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
0.00
7.00

Yen
12.00

Yen
6.00

Yen
7.00

Yen
25.00

7.00

7.00

7.00

28.00

Year ending February 28, 2018 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 28, 2018 (from March 1, 2017 to February 28, 2018)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating incomeOrdinary income
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
23,100
11.2
2,420
18.0
2,400
18.1
1,400
9.8
28.45

14. Notes(1) Changes in significant subsidiaries during the three months ended May 31, 2017(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 May 31, 201752,069,943 shares As of February 28, 201752,069,943 shares

Number of treasury shares at the end of the period
As of May 31, 2017

2,858,948 shares As of February 28, 2017

2,858,038 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended May 31, 201749,211,524 shares Three months ended May 31, 2016

251,889,980 shares

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

As of May 31, 2017

AssetsCurrent assets
Cash and deposits
Operating accounts receivable

3,866,056
739,750

2,921,941
721,223

Inventories
Deferred tax assets

125,894
527,126

107,222644,498

OtherAllowance for doubtful accounts

356,726(17,489)

343,876(16,814)

5,598,064

4,721,948

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

2,101,850(1,030,903)

996,710

1,070,946

1,377,044(514,336)

1,405,599(520,376)

862,707885,222417,963
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, netLand
OtherAccumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities

00

2,277,381

2,374,132

203,257

202,135

203,257

202,135

1,934

1,810

852,857
2,046,458

878,7902,076,988

Other
Allowance for doubtful accounts

202,093(6,312)201,799(6,312)

Total investments and other assets

3,097,033

3,153,076

5,577,672

5,729,344

527

518

66,274
8,005

87,395
2,001

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

89,914

11,250,543

10,541,208

(Thousands of yen)
As of February 28, 2017

As of May 31, 2017

Liabilities
Current liabilities
Accounts payable - other810,910805,260

Income taxes payable
Advances received

254,039
1,090,837

42,662
1,161,247

Provision for sales returns
Provision for bonuses

3,635
179,984

2,255
337,764

Provision for cancellation refunds
Provision for loss on litigation

2,475
100,000

2,323–

Asset retirement obligations
Other

14,787706,149

24,501
610,707

Total current liabilities

3,162,819

2,986,723

Non-current liabilities
Net defined benefit liability

942,966

969,786

Asset retirement obligations
Other843,426
157

869,186
1,920

Total non-current liabilities

1,786,549

1,840,892

4,949,369

4,827,615

Shareholders' equity
Capital stock

2,890,415

2,890,415

Capital surplus
Retained earnings

822,859
3,971,448

822,859
3,382,878

Treasury shares(1,394,246)(1,394,919)

Total shareholders' equity

6,290,476

5,701,233

387
227

300
183

Remeasurements of defined benefit plans

10,081

11,874

Total accumulated other comprehensive income

10,697

12,358006,301,174

5,713,592

11,250,543

10,541,208

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 (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)Three months ended

Three months ended

May 31, 2016

May 31, 2017

Net sales
Cost of sales

4,061,718
3,383,558

4,388,183
3,696,702

Gross profit

678,159

691,480

Selling, general and administrative expenses

884,990

1,024,373

Operating loss

(206,830)(332,893)

Interest income
Gain on forfeiture of unclaimed dividends

4
3,528

1–

Gain on bad debts recovered
Other

1,933
766

303
418

Total non-operating income

6,233

723

25

366

11,573
–

6,003
4,903

181

42Non-operating income

Non-operating expenses
Interest expenses
Amortization of share issuance cost
Foreign exchange losses
Other
Total non-operating expenses
Ordinary loss
Extraordinary income
Reversal of allowance for provision for cancelation refunds
Total extraordinary income
Extraordinary losses
Impairment loss

11,78011,316(212,377)(343,485)

244

143

244

143

4,957

2,268

Litigation expenses
Relocation expenses

7,746
1,542

4,967
1,593

Total extraordinary losses

14,246

8,829

Loss before income taxes(226,379)(352,171)

Income taxes(80,302)(108,085)

Loss(146,076)(244,086)–(0)(146,076)(244,086)

Loss attributable to non-controlling interests
Loss attributable to owners of parent

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

Loss
Other comprehensive income

Three months ended

Three months ended

May 31, 2016

May 31, 2017

(146,076)(244,086)

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

120–(87)(44)

Remeasurements of defined benefit plans, net of tax(1,258)

1,792(1,137)

1,661

Comprehensive incomeTotal other comprehensive income(147,214)(242,425)

Comprehensive income attributable toComprehensive income attributable to owners of parent(147,214)(242,425)–(0)Comprehensive income attributable to non-controllinginterests

6