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, 2022
(Based on Japanese GAAP)
July 11, 2022
Company name:
Riso Kyoiku Co.,Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

4714
URL https://www.riso-kyoikugroup.com/
President and CEO
Masahiko Tenbo

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

Masaaki Kume
July 12, 2022

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–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 three months ended May 31, 2022 (from March 1, 2022 to May 31, 2022)(1) Consolidated operating results (cumulative)
Net sales
Three months ended May 31, 2022Three months ended May 31, 2021

Millions of yen
6,443
6,111

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
5.4
(348)
–(329)
–
(262)
–
46.7
(203)
–(161)–(167)–Earnings per share

Diluted earnings per share

Yen(1.70)(1.13)

Three months ended May 31, 2022
Three months ended May 31, 2021

Yen––(2) Consolidated financial position
Total assets
As of May 31, 2022
As of February 28, 2022

Net assets

Millions of yen
16,27019,045Equity ratio

Millions of yen
7,665
10,513

Net assets per share
%
46.6
54.8

Yen
49.14
67.59

2. Cash dividends
Annual dividends per share

Year ended February 28, 2022
Year ending February 28, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
0.00
0.00

Yen
0.00

Yen
0.00

Yen
16.00

Yen
16.00

0.00

0.00

16.00

16.00

Year ending February 28, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 28, 2023 (from March 1, 2022 to February 28, 2023)
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
33,000
10.0
3,610
19.1
3,700
21.4
2,500
2.8
16.20

1

4. Notes(1) Changes in significant subsidiaries during the three months ended May 31, 2022
(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:

Yes
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, 2022

156,209,829 shares As of February 28, 2022

156,209,829 shares

Number of treasury shares at the end of the period
As of May 31, 2022

1,897,180 shares As of February 28, 2022

1,897,030 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended May 31, 2022

154,312,742 shares Three months ended May 31, 2021

2

147,813,664 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 28, 2022

As of May 31, 2022

AssetsCurrent assets
Cash and deposits
Trade accounts receivable
Inventories
Other
Allowance for doubtful accounts
Total current assets

8,011,322
2,328,853

5,381,695
1,705,588

152,476
513,945

168,672
631,331(9,571)(10,788)

10,997,027

7,876,498

Non-current assets
Property, plant and equipment
Buildings and structures

3,478,318

3,601,664

Accumulated depreciation(1,532,583)(1,579,241)

Buildings and structures, net

1,945,734

2,022,423

2,093,144

2,146,946

Tools, furniture and fixtures
Accumulated depreciation(787,981)(815,829)

Tools, furniture and fixtures, net

1,305,162

1,331,116

Land

417,963

417,963

Other
Accumulated depreciation

13,668(13,668)

23,541(707)

022,833

3,668,860

3,794,337

Other

196,804

203,777

Total intangible assets

196,804

203,777

Investment securities
Deferred tax assets

109,306
1,074,648

110,037
1,246,421

Leasehold and guarantee deposits
Other

2,715,012
290,018

2,758,890
286,871

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

Total investments and other assets

4,182,914

4,396,149

Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Total non-current assets
Total assets

3

8,048,578

8,394,264

19,045,606

16,270,762

(Thousands of yen)
As of February 28, 2022

As of May 31, 2022

Liabilities
Current liabilities
Accounts payable - other

1,176,548

1,272,327

Income taxes payable
Advances received

737,696
1,961,988

77,213––2,405

2,392,032–

289,817537,008

1,593

1,630

Contract liabilities
Provision for sales returns
Provision for bonuses
Provision for loss on liquidation of subsidiaries andassociates
Asset retirement obligations

9,341

21,855

Other

1,266,910

1,142,874

Total current liabilities

5,446,301

5,444,940

Lease obligations
Retirement benefit liability

1,678
1,912,901

1,120
1,976,289

Asset retirement obligations
Deferred tax liabilities

1,162,432
8,599

1,174,126
8,415

Total non-current liabilities

3,085,611

3,159,951

8,531,913

8,604,892

Shareholders' equity
Share capital

2,890,415

2,890,415

Capital surplus
Retained earnings

2,616,453
5,379,715

2,616,453
2,521,135

Treasury shares(391,760)(391,816)

10,494,824

7,636,188

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

3,087(1,602)

3,594
(715)

Remeasurements of defined benefit plans(65,727)(56,308)

Total accumulated other comprehensive income(64,242)(53,429)

Share acquisition rights

83,111

83,111

Non-controlling interests00

Non-current liabilities

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income

Total net assets
Total liabilities and net assets

4

10,513,693

7,665,870

19,045,606

16,270,762

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, 2021

May 31, 2022

Net sales
Cost of sales

6,111,769
4,907,778

6,443,041
5,211,422

Gross profit

1,203,991

1,231,618

Selling, general and administrative expenses

1,407,008

1,580,536

Operating loss

(203,016)(348,918)

Dividend income
Foreign exchange gains

1,931
3,811

2,088–

Gain on forfeiture of unclaimed dividends
Compensation income

1,706
6,370

2,141
–

Subsidy income
Recoveries of written off receivables

25,208721

10,239132

Miscellaneous income
Other

1,952
1,035

1,421
3,377

Total non-operating income

42,73819,401

754

9–
72

144
11

Non-operating income

Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary loss

826

165

(161,104)(329,682)

–

571

1,572

–

1,572

571

262
1,507

02,128543–

Extraordinary income
Gain on sale of non-current assets
Reversal of provision for loss on liquidation of subsidiaries
and associates
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Relocation expenses
Other
Total extraordinary losses
Loss before income taxes
Income taxes
Loss
Loss attributable to non-controlling interests
Loss attributable to owners of parent

5

2,312

2,128

(161,844)(331,239)

5,754(68,412)(167,598)(262,827)–(0)(167,598)(262,827)

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

Loss
Other comprehensive income

Three months ended

Three months ended

May 31, 2021

May 31, 2022

(167,598)(262,827)

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

3,114(2,759)507
886

Remeasurements of defined benefit plans, net of tax

12,381

9,419

12,736

10,812Comprehensive income

Total other comprehensive income(154,861)(252,014)

Comprehensive income attributable toComprehensive income attributable to owners of parent(154,861)(252,014)–0Comprehensive income attributable to non-controllinginterests

6