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, 2021
(Based on Japanese GAAP)
July 8, 2021
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
July 9, 2021

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, 2021 (from March 1, 2021 to May 31, 2021)(1) Consolidated operating results (cumulative)

Three months ended May 31, 2021
Three months ended May 31, 2020

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%6,111
46.7(203)–(161)–(167)–
4,165 (21.2)(1,316)–(1,318)–(1,036)–Earnings per share

Diluted earnings per share

Yen(1.13)(7.16)

Three months ended May 31, 2021
Three months ended May 31, 2020

Yen––(2) Consolidated financial position
Total assets
As of May 31, 2021
As of February 28, 2021

Net assets

Millions of yen
12,485
13,940Equity ratio

Millions of yen
5,016
6,575

Net assets per share
%
39.6
46.7

Yen
33.47
44.02

2. Cash dividends
Annual dividends per share

Year ended February 28, 2021
Year ending February 28, 2022

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
0.00
0.00

Yen
0.00

Yen
0.00

Yen
9.50

Yen
9.50

0.00

0.00

12.00

12.00

Year ending February 28, 2022 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 28, 2022 (from March 1, 2021 to February 28, 2022)
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
29,00015.1
2,510 148.4
2,500 109.7
1,700 206.2
11.61

1

4. Notes(1) Changes in significant subsidiaries during the three months ended May 31, 2021
(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, 2021

156,209,829 shares As of February 28, 2021

156,209,829 shares

Number of treasury shares at the end of the period
As of May 31, 2021

8,396,250 shares As of February 28, 2021

8,396,070 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended May 31, 2021

147,813,664 shares Three months ended May 31, 20202

144,673,185 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 28, 2021

As of May 31, 2021

AssetsCurrent assets
Cash and deposits
Trade accounts receivable

3,963,694
2,454,135

2,814,929
1,574,814

Inventories
Income taxes receivable

135,497
37,672

151,193
37,477

Other
Allowance for doubtful accounts

438,892(11,588)

480,735(12,978)

7,018,304

5,046,172

2,953,928(1,413,589)

3,197,060(1,449,965)

1,540,339

1,747,094

1,858,972(701,592)

1,981,870(725,524)

1,157,379

1,256,345

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

003,115,682

3,421,403

177,485

199,336

Total intangible assets

177,485

199,336

Investments and other assets
Investment securities

Total property, plant and equipment
Intangible assets
Other

124,027

128,516

Deferred tax assets
Leasehold and guarantee deposits

678,8912,558,477

779,716
2,645,216

Other
Allowance for doubtful accounts

273,534(6,072)

271,524(6,072)

Total investments and other assets

3,628,859

3,818,901

6,922,027

7,439,640

13,940,332

12,485,813

Total non-current assets
Total assets3

(Thousands of yen)
As of February 28, 2021

As of May 31, 2021

Liabilities
Current liabilities
Accounts payable - other

1,149,166

1,147,313

Income taxes payable
Advances received

422,847
1,701,720

142,800
1,844,642

Provision for sales returns
Provision for bonuses

2,370
265,2022,605
472,489

Provision for loss on liquidation of subsidiaries andassociates

40,529

9,902

Asset retirement obligations
Other

12,565
1,005,995

10,559988,506

Total current liabilities

4,600,399

4,618,819

Non-current liabilities
Lease obligations
Retirement benefit liability
Asset retirement obligations
Deferred tax liabilities

3,895

3,343

1,681,000
1,073,012

1,733,120
1,107,799

6,783

6,641

2,764,692

2,850,905

7,365,091

7,469,725

Share capital
Capital surplus

2,890,415
1,105,307

2,890,415
1,075,953

Retained earnings
Treasury shares

4,323,111(1,730,384)

2,780,635(1,730,443)

Total shareholders' equity

6,588,450

5,016,561

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

13,30016,415

Foreign currency translation adjustment
Remeasurements of defined benefit plans(401)(94,780)(3,160)(82,398)

Total accumulated other comprehensive income(81,881)(69,144)

68,671–

68,671–

Share acquisition rights
Non-controlling interests
Total net assets

6,575,240

5,016,088

Total liabilities and net assets

13,940,332

12,485,813

4

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

Net sales
Cost of sales
Gross profit (loss)

Three months ended

Three months ended

May 31, 2020

May 31, 2021

4,165,812
4,188,946

6,111,769
4,907,778(23,133)

1,203,991

Selling, general and administrative expenses

1,293,452

1,407,008

Operating loss

(1,316,586)(203,016)

––

1,931
3,811

1,055
–

1,706
6,370

Subsidy income
Recoveries of written off receivables–
716

25,208721

Interest on tax refund
Miscellaneous income

888
103

20
122

Non-operating income
Dividend income
Foreign exchange gains
Gain on forfeiture of unclaimed dividends
Compensation income

Other

308

2,845

3,073

42,738Interest expenses
Foreign exchange losses

1,586
2,003

754
–

Commission expenses
Other

1,470
185

–
72

Total non-operating income
Non-operating expenses

Total non-operating expenses

5,246

826

(1,318,759)(161,104)

–

1,572

Other

2,005

–

Total extraordinary income

2,005

1,572

Loss on retirement of non-current assets
Relocation expenses

––

262
1,507

Other–

543

Ordinary loss
Extraordinary income
Reversal of provision for loss on liquidation of subsidiaries
and associates

Extraordinary losses

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

(1,316,754)(161,844)(264,721)

5,754(1,052,033)(167,598)(15,574)–(1,036,458)(167,598)

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

LossOther comprehensive income

Three months ended

Three months ended

May 31, 2020

May 31, 2021

(1,052,033)(167,598)

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

–
488

3,114
(2,759)Remeasurements of defined benefit plans, net of tax

6,277

12,381

6,765

12,736Comprehensive income

Total other comprehensive income(1,045,267)(154,861)

Comprehensive income attributable toComprehensive income attributable to owners of parent(1,045,267)(154,861)––

Comprehensive income attributable to non-controllinginterests6