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 28, 2017
(Based on Japanese GAAP)
April 10, 2017
Company name:

RISO KYOIKU CO.,LTD

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

URL

http://www.tomas.co.jp/

President and CEODirector

Masahiko Tenbo
Kazunori Noto

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

May 26, 2017
May 29, 2017

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

May 11, 2017
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 28, 2017 (from March 1, 2016 to February 28, 2017)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating income
Ordinary income
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended February 28, 2017
20,777
5.8
2,051
8.5
2,032
9.4
1,275(10.7)
Year ended February 29, 2016
19,643
4.6
1,890
87.9
1,857
89.8
1,428(40.0)
Profit attributable toOrdinary
owners ofincome/total assets
parent/equity
Yen%%–
18.1
17.1
–
20.7
15.1

Diluted earnings pershare

Earnings per share
Yen
25.12
27.69

Year ended February 28, 2017
Year ended February 29, 2016Operating
income/net sales%
9.99.6(2) Consolidated financial position
Total assets
As of February 28, 2017
As of February 29, 2016

Net assets

Equity ratio

Millions of yen
11,25012,493

Millions of yen
6,301
7,785

Cash flows fromoperating activities
Millions of yen
2,481
1,434

Cash flows frominvesting activities
Millions of yen
(527)
(217)

Net assets per share%
56.0
62.3

Yen
128.04150.84(3) Consolidated cash flows

Year ended February 28, 2017
Year ended February 29, 2016

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(2,603)
3,866
94,515

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

Year ended February 29, 2016
Year ended February 28, 2017
Year ending February 28, 2018
(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
12.00

0.00
6.00

10.00
7.00

10.00
25.00

519
1,263

36.1
99.57.5
17.9

7.00

7.00

7.00

7.00

28.00

198.4

3. Forecast of consolidated financial results for the year ending February 28, 2018 (from March 1, 2017 to February 28, 2018)
Net sales
Full year

Millions of yen
23,100Percentages indicate year-on-year changes
Profit attributable toOperating income
Ordinary income
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
11.2
2,420
18.0
2,400
18.1
1,400
9.8
28.45

4. Notes(1) Changes in significant subsidiaries during the year ended February 28, 2017(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:

Yes
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 28, 201752,069,943 shares As of February 29, 2016

52,069,943 shares

Number of treasury shares at the end of the period
As of February 28, 2017

2,858,038 shares As of February 29, 2016

452,238 shares

Average number of shares during the period
Year ended February 28, 2017

50,771,346 shares Year ended February 29, 2016

2

51,584,695 shares

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 29, 2016

As of February 28, 2017

AssetsCurrent assets
Cash and deposits
Operating accounts receivable

4,515,815
1,356,567

3,866,056
739,750

Inventories
Deferred tax assets

99,636100,167

125,894
527,126

Other
Allowance for doubtful accounts

334,597(11,733)

356,726(17,489)

6,395,050

5,598,064

1,890,504(967,660)

2,005,952(1,009,241)922,843996,710

1,345,177(508,114)

1,377,044(514,336)

837,062

862,707417,963
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, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities

00

2,177,869

2,277,381

200,430

203,257

200,430

203,257

1,274

1,934

1,563,305
1,952,297

852,857
2,046,458

Other
Allowance for doubtful accounts

163,750–

202,093(6,312)

Total investments and other assets

3,680,628

3,097,033

6,058,928

5,577,672–

527–
39,446

66,274
8,005

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

3

39,44674,806

12,493,425

11,250,543

(Thousands of yen)
As of February 29, 2016

As of February 28, 2017

Liabilities
Current liabilities
Accounts payable - other805,368

810,910

Income taxes payable
Advances received

127,684
1,155,577

254,039
1,090,837

Provision for sales returns
Provision for bonuses

13,777144,086

3,635
179,984

Provision for cancelation refunds
Provision for loss on litigation

45,622–

2,475
100,000

Asset retirement obligations
Other–
750,648

14,787706,149

Total current liabilities

3,042,766

3,162,819

Non-current liabilities
Net defined benefit liability

826,949

942,966

Asset retirement obligations
Other836,410
1,436

843,426
157

Total non-current liabilities

1,664,796

1,786,549

4,707,563

4,949,369

Shareholders' equity
Capital stock

2,890,415

2,890,415

Capital surplus
Retained earnings

822,8594,181,754

822,859
3,971,448

Treasury shares(215,016)(1,394,246)

Total shareholders' equity

7,680,012

6,290,476

(68)
–

387
227

Remeasurements of defined benefit plans

105,917

10,081

Total accumulated other comprehensive income

105,849

10,697–0

7,785,861

6,301,174

12,493,425

11,250,543

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 and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
February 29, 2016

Fiscal year ended
February 28, 2017

Net sales

19,643,220

20,777,361

Cost of sales

14,351,245

15,072,702

Gross profit

5,291,974

5,704,658

Selling, general and administrative expenses

3,401,516

3,653,346

Operating income

1,890,458

2,051,312

669

49

Dividend income
Gain on forfeiture of unclaimed dividends

47
6,594

47
7,091

Gain on bad debts recovered
Other

2,808
3,994

4,5422,511

Total non-operating income

14,114

14,241201

59

46,292697

31,441
1,983

Non-operating income
Interest income

Non-operating expenses
Interest expenses
Amortization of share issuance cost
Other
Total non-operating expenses
Ordinary income

47,191

33,483

1,857,381

2,032,069

1,312
474,922–
41,744Extraordinary income
Gain on sales of non-current assets
Reversal of allowance for provision for cancelation refunds
Other

9,072

–

485,307

41,744

Impairment loss
Loss on retirement of non-current assets

74,43910,58554,049
3,622

Relocation expenses
Litigation expenses

10,842
26,446

5,584
21,016

Loss on fraud transactions
Business structure improvement expenses

22,06225,394––

Loss on insurance cancellation
Provision for loss on litigation––

13,004
100,000

Other

–

9,636

Total extraordinary income
Extraordinary losses

Total extraordinary losses

169,771

206,913

2,172,917

1,866,901

Income taxes - current

161,379

298,712

Refund of income taxes
Income taxes - deferred(10,700)
593,685(18,939)
311,803

Total income taxes

744,364591,576

1,428,552

1,275,325––

1,428,552

1,275,325

Profit before income taxes

ProfitProfit 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 29, 2016

February 28, 2017

1,428,552

1,275,325

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

(494)
–

456
227

Remeasurements of defined benefit plans, net of tax

50,736(95,835)

50,242(95,152)

Comprehensive income

Total other comprehensive income

1,478,795

1,180,172

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,478,795

1,180,172–0Comprehensive income attributable to non-controllinginterests

6Consolidated statements of changes in equity
Fiscal year ended February 29, 2016
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

2,890,415

Retained earnings

822,859

2,521,937

Cumulative effects of changes
in accounting policies
Restated balance

Total shareholders'equity

Treasury shares(249,069)

243,795
2,890,415

822,859

2,765,733

5,986,143
243,795(249,069)

6,229,939

Changes of items during period
Profit attributable to ownersof parent

1,428,552

Purchase of treasury shares
Disposal of treasury shares(12,531)Transfer to capital surplus
from retained earnings

12,531

1,428,552(2,098)(2,098)36,151

23,619(12,531)–

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period–––

1,416,020

34,0521,450,073

2,890,415

822,859

4,181,754(215,016)

7,680,012

Accumulated other comprehensive income

Balance at beginning of current
periodValuation difference on
available-for-salesecurities

Remeasurements ofdefined benefit plans

Total accumulated
other comprehensive
income425

55,18055,606

Cumulative effects of changes
in accounting policies
Restated balance

Total net assets

6,041,749
243,795

425

55,18055,606

6,285,545

Changes of items during period
Profit attributable to ownersof parent

1,428,552

Purchase of treasury shares(2,098)

Disposal of treasury shares23,619

Transfer to capital surplus
from retained earnings–

Net changes of items otherthan shareholders' equity(494)

50,73650,24250,242

Total changes of items during
period(494)

50,73650,2421,500,315

Balance at end of current period(68)

105,917

105,849

7,785,861

7

Fiscal year ended February 28, 2017
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

2,890,415

Retained earnings

822,859

Total shareholders'equity

Treasury shares

4,181,754(215,016)

7,680,012

Changes of items during period
Profit attributable to ownersof parent

1,275,325

1,275,325

Dividends of surplus(1,434,813)(1,434,813)

Purchase of treasury shares
Disposal of treasury shares(50,817)

Transfer to capital surplus
from retained earnings

50,817(1,334,974)(1,334,974)

155,744

104,926(50,817)–

Net changes of items otherthan shareholders' equity–

Total changes of items during
periodBalance at end of current period––(210,305)(1,179,229)(1,389,535)

2,890,415

822,859

3,971,448(1,394,246)

6,290,476

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensiveincome

(68)

–

105,917

105,849

Non-controllinginterests

Total net assets–

7,785,861

Changes of items during period
Profit attributable to ownersof parent

1,275,325

Dividends of surplus(1,434,813)

Purchase of treasury shares(1,334,974)

Disposal of treasury shares

104,926

Transfer to capital surplus
from retained earnings–Net changes of items otherthan shareholders' equity

456

227

(95,835)(95,152)0(95,152)

Total changes of items during
period456

227(95,835)(95,152)0(1,484,687)

Balance at end of current period

387

227

10,081

10,6970

6,301,1748

Consolidated statements of cash flows(Thousands of yen)
Fiscal year ended

Fiscal year ended

February 29, 2016

February 28, 2017

Cash flows from operating activities
Profit before income taxes

2,172,917

1,866,901

Depreciation
Amortization of deferred assets

215,969
46,292208,09531,441

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

11
31,39912,06735,897

Increase(decrease) in provision for cancelation refunds
Increase (decrease) in provision for loss on litigation(482,521)–(43,147)
100,000

Increase (decrease) in net defined benefit liability
Increase (decrease) in other provision(54,560)(12)

116,016(10,142)Interest and dividend income
Loss on retirement of property, plant and equipment(716)
10,585(96)
3,622

Impairment loss
Interest expenses

74,439201

54,04959

Loss (gain) on sales of non-current assets
Decrease (increase) in notes and accounts receivable - trade(1,312)(139,470)–
616,816

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade

7,426
10,826(26,258)(7,701)

Increase (decrease) in accrued consumption taxes
Increase (decrease) in accounts payable - other

86,769(124,661)(141,828)(45,252)

Increase (decrease) in advances received
Other, net(490,502)
136,645(64,740)(3,276)

Subtotal

1,499,726

2,702,523

716
(201)

96
(59)

Income taxes paid
Income taxes refund(130,359)
64,426(222,852)
1,361

Net cash provided by (used in) operating activities

1,434,308

2,481,069(104,570)(216,143)

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

62,264(67,327)–(69,646)

Proceeds from sales of investment securities
Purchase of insurance funds

356(52,061)–(39,441)

Proceeds from cancellation of insurance funds
Payments for lease and guarantee deposits–(56,177)

12,234(148,450)

Proceeds from collection of lease and guarantee deposits
Payments for deferred assets

65,074–52,300(66,801)

Interest and dividend income received
Interest expenses paid

Cash flows from investing activities
Purchase of property, plant and equipment

Other, net(64,620)(51,113)

Net cash provided by (used in) investing activities(217,060)(527,063)

9

(Thousands of yen)

Cash flows from financing activities
Cash dividends paid

Fiscal year ended

Fiscal year ended

February 29, 2016

February 28, 2017
(892)

(1,418,307)

Purchase of treasury shares
Proceeds from disposal of treasury shares(2,098)23,619(1,334,974)
155,744

Other, net(10,726)(6,456)

9,902(2,603,993)–

227

Net increase (decrease) in cash and cash equivalents

1,227,150(649,759)

Cash and cash equivalents at beginning of period

3,288,665

4,515,815

Cash and cash equivalents at end of period

4,515,815

3,866,056

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

10