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 Nine Months Ended November 30, 2019
(Based on Japanese GAAP)
January 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
January 9, 2020

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

February 13, 2020
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 nine months ended November 30, 2019 (from March 1, 2019 to November 30, 2019)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended November 30, 2019
Nine months ended November 30, 2018

Millions of yen
19,396
17,747

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
9.3
1,671
8.5
1,679
8.2
1,057
17.6
9.5
1,540
33.5
1,552
35.4
899
27.2

Earnings per share

Diluted earnings per share
Yen
7.16
6.09

Nine months ended November 30, 2019
Nine months ended November 30, 2018

Yen
7.16
6.09

(2) Consolidated financial position
Total assets
As of November 30, 2019
As of February 28, 2019

Net assets

Millions of yen
13,566
12,510Equity ratio

Millions of yen
6,005
6,263

Net assets per share%
43.6
49.9

Yen
40.05
42.28

2. Cash dividends
Annual dividends per share

Year ended February 28, 2019Year ending February 29, 2020

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
7.50
3.00

Yen
7.50
3.00

Yen
7.50
3.00

Yen
3.50

Yen
26.00

3.00

12.00

Year ending February 29, 2020 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 29, 2020 (from March 1, 2019 to February 29, 2020)
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
27,000
10.2
3,010
19.0
3,000
18.1
1,800
14.2
12.19

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended November 30, 2019(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 November 30, 2019

156,209,829 shares As of February 28, 2019

156,209,829 shares

Number of treasury shares at the end of the period
As of November 30, 2019

8,586,850 shares As of February 28, 2019

8,586,160 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended November 30, 2019

147,623,212 shares Nine months ended November 30, 2018

2147,626,741 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 28, 2019

As of November 30, 2019

AssetsCurrent assets
Cash and deposits
Operating accounts receivable

4,716,148
924,243

5,103,287
1,331,483

Inventories
Income taxes receivable

102,746
145,734

112,581
96,588

Other
Allowance for doubtful accounts

441,968(12,816)

519,094(18,965)

6,318,025

7,144,070

2,507,978(1,147,080)

2,705,020(1,236,603)

1,360,897

1,468,416

1,656,340(557,721)

1,776,244(607,091)

1,098,619

1,169,153

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, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, netLand
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Deferred tax assets
Lease and guarantee deposits
Other

00

2,877,480

3,055,533

153,609

141,912

153,609

141,912637,347

563,168

2,236,021
239,660

2,367,232
258,141

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

Total investments and other assets

3,106,956

3,182,470

6,138,047

6,379,916

333
54,510254
41,988

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

3

54,84442,242

12,510,917

13,566,230

(Thousands of yen)
As of February 28, 2019

As of November 30, 2019

Liabilities
Current liabilities
Accounts payable - other

1,222,619

1,337,494

Income taxes payable
Advances received

400,616
1,169,407

358,354
2,205,999

Provision for sales returns
Provision for bonuses3,626
219,1103,196
61,503

Asset retirement obligations
Other

2,127
843,958–
1,061,760

3,861,464

5,028,309

Total current liabilities
Non-current liabilities
Lease obligations

8,264

6,636

Net defined benefit liability
Asset retirement obligations

1,383,449
994,196

1,488,389
1,037,647

Total non-current liabilities

2,385,910

2,532,673

6,247,375

7,560,983

Shareholders' equity
Capital stock

2,890,415

2,890,415

Capital surplus
Retained earnings

822,859
4,099,827

822,859
3,755,083

Treasury shares(1,397,924)(1,398,267)

Total shareholders' equity

6,415,178

6,070,091

Foreign currency translation adjustment
Remeasurements of defined benefit plans

664(174,637)

761(159,200)

Total accumulated other comprehensive income(173,972)(158,438)

22,337–48,36445,2306,263,542

6,005,247

12,510,917

13,566,230

Total liabilities
Net assets

Accumulated other comprehensive income

Share acquisition rights
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)
Nine months ended

Nine months ended

November 30, 2018

November 30, 2019

Net sales
Cost of sales

17,747,462
12,815,938

19,396,796
13,976,636

Gross profit

4,931,524

5,420,159

Selling, general and administrative expenses

3,391,490

3,748,864

Operating profit

1,540,033

1,671,295

1026

100

Gain on forfeiture of unclaimed dividends
Gain on bad debts recovered–
1,945

3,557
1,979

Miscellaneous income
Foreign exchange gains

1,631
6,637

1,051
147

Other

2,028

1,897

Total non-operating income

12,2808,644Interest expenses
Loss on cancellation of leases

0–

73
199

Other

20

2

Non-operating income
Interest income
Dividend income

Non-operating expenses

Total non-operating expenses

20276

1,552,293

1,679,663

358–

Insurance income
Compensation income

27,97034,918––

Total extraordinary income

63,247–39,0902,028

Impairment loss
Litigation expenses

10,42032,621––

Relocation expenses
Loss on insurance cancellation

4,035
10,726––

Total extraordinary losses

96,894

2,028

1,518,645

1,677,635

Ordinary profit
Extraordinary income
Reversal of allowance for provision for cancelation refunds

Extraordinary losses
Loss on retirement of non-current assets

Profit before income taxes
Income taxes

618,904

623,726

Profit899,741

1,053,908

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

5–(3,769)899,741

1,057,678

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

ProfitOther comprehensive income

Nine months ended

Nine months ended

November 30, 2018

November 30, 2019899,741

1,053,908

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

(250)
156

–
97

Remeasurements of defined benefit plans, net of tax(8,436)

15,436(8,530)15,534Comprehensive income

Total other comprehensive income

891,211

1,069,443

Comprehensive income attributable toComprehensive income attributable to owners of parent

891,211

1,069,443––

Comprehensive income attributable to non-controllinginterests

6