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, 2024
(Based on Japanese GAAP)
April 8, 2024
Company name:

Riso Kyoiku Co.,Ltd.

Stock exchange listing: Tokyo
Stock code:
4714
Representative:
Inquiries:

URL

https://www.riso-kyoikugroup.com/

President and CEO
Vice president and CFO

Masahiko Tenbo
Masaaki Kume

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

May 24, 2024
May 27, 2024

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

May 10, 2024
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, 2024 (from March 1, 2023 to February 29, 2024)(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, 2024
32,215
2.3
2,586
7.7
2,614
7.0
1,703
14.1
Year ended February 28, 2023
31,4884.9
2,401(20.8)
2,442(19.9)
1,492(38.6)

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
11.01
19.1
14.3
8.0
9.65
15.2
13.1
7.6

Diluted earnings per
share

Yen
11.04
9.67

Year ended February 29, 2024
Year ended February 28, 2023
(2) Consolidated financial position

Total assets
As of February 29, 2024
As of February 28, 2023

Net assets

Equity ratio

Millions of yen
18,257
18,252Millions of yen
8,653
9,351

Cash flows fromoperating activities
Millions of yen
1,653
2,779

Cash flows frominvesting activities
Millions of yen(1,028)(1,016)

Net assets per share
%
46.8
50.7

Yen
55.35
59.96

(3) Consolidated cash flows

Year ended February 29, 2024
Year ended February 28, 2023

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(2,466)
5,460(2,465)
7,308

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

Year ended February 28, 2023
Year ended February 29, 2024
Year ending February 28, 2025
(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

%

%

0.00
0.00

0.00
0.00

0.00
0.00

16.00
10.00

16.00
10.00

2,469
1,543

165.5
90.6

25.1
17.3

0.00

0.00

0.00

10.00

10.00

1

90.3

3. Forecast of consolidated financial results for the year ending February 28, 2025 (from March 1, 2024 to February 28, 2025)
Net sales
Full year

Millions of yen
33,960Percentages 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
5.4
2,670
3.2
2,670
2.1
1,710
0.4
11.08

4. Notes(1) Changes in significant subsidiaries during the year ended February 29, 2024
(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, 2024

156,209,829 shares As of February 28, 2023

156,209,829 shares

Number of treasury shares at the end of the period
As of February 29, 2024

1,846,230 shares As of February 28, 2023

1,845,800 shares

154,363,752 shares Year ended February 28, 2023

154,331,116 shares

Average number of shares during the period
Year ended February 29, 20242

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 28, 2023

As of February 29, 2024

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

7,308,410
1,670,857

5,460,988
2,784,920

153,019535,365

151,391
542,739(7,490)(5,502)9,660,161

8,934,537

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

3,785,962

4,185,938

Accumulated depreciation(1,693,450)(1,906,667)

Buildings and structures, net

2,092,512

2,279,270

2,228,397

2,405,143

Tools, furniture and fixtures
Accumulated depreciation(882,061)(998,552)

Tools, furniture and fixtures, net

1,346,336

1,406,591

Land

417,963

417,963

Construction in progress
Other–
23,541

3,495
23,541

Accumulated depreciation(3,656)(7,587)

Other, net

19,885

15,9533,876,697

4,123,273

Total property, plant and equipment
Intangible assets
Other

244,900

310,555

Total intangible assets

244,900

310,555

Investments and other assets
Investment securities

113,169

200,019

Deferred tax assets
Leasehold and guarantee deposits

1,179,252
2,881,535

1,415,865
2,974,002

Other
Allowance for doubtful accounts

302,369(6,072)

305,576(6,072)

Total investments and other assets

4,470,255

4,889,391

8,591,853

9,323,221

18,252,015

18,257,758

Total non-current assets
Total assets3

(Thousands of yen)
As of February 28, 2023

As of February 29, 2024

Liabilities
Current liabilities
Accounts payable - other

1,171,630

1,196,199

Income taxes payable
Contract liabilities

364,127
2,414,309

700,1132,410,503

337,356

354,064

1,296

–

7,437

36,830Other

1,070,438

1,025,788

Total current liabilities

5,366,595

5,723,500

2,320,183
1,210,185

2,600,717
1,276,985

Provision for bonuses
Provision for loss on liquidation of subsidiaries andassociates
Asset retirement obligations

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

3,396

2,933

3,533,766

3,880,637

8,900,361

9,604,137

Share capital
Capital surplus

2,890,415
2,622,691

2,890,415
2,622,691

Retained earnings
Treasury shares

4,274,941(381,226)

3,500,017(381,348)

Total shareholders' equity

9,406,822

8,631,776

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

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

5,767

27,934Foreign currency translation adjustment
Remeasurements of defined benefit plans(716)(156,595)–(115,436)

Total accumulated other comprehensive income(151,544)(87,502)

96,375
0109,347–

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

4

9,351,653

8,653,621

18,252,015

18,257,758

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
February 28, 2023

Fiscal year ended
February 29, 2024

Net sales

31,488,432

32,215,052

Cost of sales

22,980,794

23,698,305

Gross profit

8,507,638

8,516,747

Selling, general and administrative expenses

6,106,269

5,929,817

Operating profit

2,401,369

2,586,929

Non-operating income
Interest income

25

25

Dividend income
Gain on forfeiture of unclaimed dividends

4,176
4,859

4,698
2,545

Subsidy income
Compensation income for damage

14,209
5,465

3,811
–

Photo sales profit
Miscellaneous income

4,640
930

5,632
3,681

Other

8,958

10,705

Total non-operating income

43,265

31,100Interest expenses
Foreign exchange losses

29
146

555
33

Penalty loss
Loss on cancellation of insurance policies

888
–

–
2,524

Non-operating expenses

Other
Total non-operating expenses
Ordinary profit
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
Impairment losses
Relocation expenses
Tender offer related expenses
Other
Total extraordinary losses

953

374

2,017

3,488

2,442,617

2,614,542

571

–

–

1,096

571

1,096

11,622

26,31288,441
13,57587,464
5,147––

53,76814,439113,639

187,130

Profit before income taxes

2,329,549

2,428,507

Income taxes - current
Income taxes - deferred

850,151(13,155)

980,130(255,327)

Total income taxes

836,996

724,802

1,492,552

1,703,704

(0)

(0)

1,492,552

1,703,704

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

5Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

February 28, 2023

February 29, 2024

1,492,552

1,703,704

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

2,680
885

22,166716

Remeasurements of defined benefit plans, net of tax(90,868)

41,159(87,302)

64,042Comprehensive income

Total other comprehensive income

1,405,250

1,767,747

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,405,250

1,767,747

(0)

(0)

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended February 28, 2023
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,890,415

Retained earnings

2,616,453

Cumulative effects ofchanges in accounting
policies
Restated balance

Treasury shares

5,379,715

Total shareholders'equity(391,760)

10,494,824(128,321)
2,890,415

2,616,453(128,321)

5,251,394(391,760)

10,366,502

Changes during period
Profit attributable to ownersof parent

1,492,552

1,492,552

Dividends of surplus(2,469,004)(2,469,004)

Purchase of treasury shares
Disposal of treasury shares

6,238

(192)

(192)

10,726

16,964

Net changes in items otherthan shareholders' equity–

Total changes during period
Balance at end of period

–

6,238

(976,452)

10,533(959,680)

2,890,415

2,622,691

4,274,941(381,226)

9,406,822

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

3,087

Foreigncurrencytranslation
adjustment

Total
accumulatedof defined benefit
other
plans
comprehensive
incomeRemeasurements(1,602)(65,727)(64,242)

Share
acquisitionrights

83,111

Non-controllinginterests

Total net assets

0

10,513,693

Cumulative effects ofchanges in accounting
policies
Restated balance(128,321)
3,087(1,602)(65,727)(64,242)

83,1110

10,385,371

Changes during period
Profit attributable to ownersof parent

1,492,552

Dividends of surplus(2,469,004)

Purchase of treasury shares(192)

Disposal of treasury shares

16,964

Net changes in items otherthan shareholders' equity

2,680

885

(90,868)(87,302)

13,264(0)(74,037)

Total changes during period

2,680

885

(90,868)(87,302)

13,264(0)(1,033,718)

Balance at end of period

5,767

(716)

(156,595)(151,544)

96,37509,351,653

7

Fiscal year ended February 29, 2024
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,890,415

Retained earnings

2,622,691

Treasury shares

4,274,941

Total shareholders'equity(381,226)

9,406,822

Changes during period
Profit attributable to ownersof parent
Decrease due to exclusionfrom consolidation
Dividends of surplus

1,703,704

1,703,704(8,805)(8,805)(2,469,824)(2,469,824)

Purchase of treasury shares

(121)

(121)

Net changes in items otherthan shareholders' equity–

Total changes during period
Balance at end of period––(774,924)(121)(775,046)

2,890,415

2,622,691

3,500,017(381,348)

8,631,776

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

5,767

Total
accumulatedof defined benefit
other
plans
comprehensive
incomeForeigncurrencytranslation
adjustment

Remeasurements(716)(156,595)(151,544)

Share
acquisitionrights96,375

Non-controllinginterests

Total net assets

09,351,653

Changes during period
Profit attributable to ownersof parent

1,703,704

Decrease due to exclusionfrom consolidation(8,805)

Dividends of surplus(2,469,824)

Purchase of treasury shares(121)

Net changes in items otherthan shareholders' equity

22,166716

41,15964,042

12,972(0)77,014

Total changes during period

22,166716

41,15964,042

12,972(0)(698,032)

Balance at end of period

27,934–(115,436)(87,502)109,347–

8,653,621

8

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

February 28, 2023

February 29, 2024

2,329,549

2,428,507

Depreciation
Increase (decrease) in allowance for doubtful accounts

432,191(2,080)517,719(1,988)

Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability

47,539407,281

16,708
280,534

Increase (decrease) in remeasurements of defined benefit
plans(90,868)

41,159

Increase (decrease) in provision for loss on liquidation ofsubsidiaries and associates(296)(1,296)

Interest and dividend income
Interest expenses(4,202)29(4,724)555

Subsidy income
Compensation for damage income(14,209)(5,465)(3,811)–Gain on sale of non-current assets
Loss on retirement of non-current assets(571)
11,622–
26,312

Impairment losses
Decrease (increase) in trade receivables

88,441
657,996

87,464(1,114,063)

Decrease (increase) in inventories
Increase (decrease) in accounts payable - other(543)
56,2501,628
20,392

Increase (decrease) in contract liabilities
Other, net

452,321(391,601)(3,805)(12,998)

Subtotal

3,973,383

2,278,291

Interest and dividends received
Interest paid

4,202
(29)

4,724
(555)

Subsidies received
Proceeds from compensation for damage

14,209
5,465

3,811
–

Income taxes paid
Income taxes refund(1,217,858)–(637,091)
4,788

Net cash provided by (used in) operating activities

2,779,373

1,653,968

Cash flows from investing activities
Purchase of property, plant and equipment(647,707)(661,396)

Proceeds from sale of property, plant and equipment
Purchase of intangible assets

571(112,004)–(157,392)

Purchase of investment securities
Payments of leasehold and guarantee deposits–(225,034)(54,900)(156,862)

Proceeds from refund of leasehold and guarantee deposits
Other, net

49,622(82,335)

64,199(62,107)(1,016,887)(1,028,459)

Net cash provided by (used in) investing activities

9(Thousands of yen)
Fiscal year ended

Fiscal year ended

February 28, 2023

February 29, 2024

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

1,000,000

Repayments of short-term borrowings
Repayments of lease liabilities–(2,217)(1,000,000)(1,678)(2,463,638)
51(2,464,424)
–

(192)
3

(121)
–

(2,465,993)(2,466,224)

594–

Net increase (decrease) in cash and cash equivalents(702,912)(1,840,715)

Cash and cash equivalents at beginning of period

8,011,322

7,308,410–(6,706)

7,308,410

5,460,988

Dividends paid
Proceeds from exercise of employee share options
Purchase of treasury shares
Proceeds from disposal of treasury shares
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Decrease in cash and cash equivalents resulting from exclusion ofsubsidiaries from consolidation
Cash and cash equivalents at end of period10