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, 2019
(Based on Japanese GAAP)
April 8, 2019
Company name:

RISO KYOIKU CO.,LTD

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

URL

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

President and CEO
Director

Masahiko Tenbo
Kazunori Noto

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

May 24, 2019
May 27, 2019

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

May 9, 2019
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, 2019 (from March 1, 2018 to February 28, 2019)(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 28, 201924,496
8.5
2,529
17.2
2,540
18.7
1,576
14.1
Year ended February 28, 2018
22,584
8.7
2,158
5.2
2,139
5.3
1,381
8.3

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
10.68
25.2
21.0
10.3
–
22.0
18.6
9.6

Diluted earnings per
share

Yen
10.68
9.36

Year ended February 28, 2019Year ended February 28, 2018
(2) Consolidated financial position

Total assets
As of February 28, 2019
As of February 28, 2018

Net assets

Equity ratio

Millions of yen
12,513
11,724

Millions of yen
6,263
6,273

Cash flows fromoperating activities
Millions of yen
2,707
2,278

Cash flows frominvesting activities
Millions of yen
(731)
(593)

Net assets per share
%
49.9
53.5

Yen
42.28
42.49

(3) Consolidated cash flows

Year ended February 28, 2019Year ended February 28, 2018

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(1,433)
4,716(1,377)4,171

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

Year ended February 28, 2018Year ended February 28, 2019Year ending February 29, 2020
(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

%

%

7.00
7.50

7.00
7.50

7.00
7.50

7.00
3.50

28.00
–

1,377
1,623

99.7
103.0

21.9
26.0

3.00

3.00

3.00

3.00

12.00

1

98.4

3. Forecast of consolidated financial results for the year ending February 29, 2020 (from March 1, 2019 to February 29, 2020)
Net sales
Full year

Millions of yen
27,000Percentages 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
10.2
3,010
19.0
3,000
18.1
1,800
14.2
12.19

4. Notes(1) Changes in significant subsidiaries during the year ended February 28, 2019(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 28, 2019

156,209,829 shares As of February 28, 2018

156,209,829 shares

Number of treasury shares at the end of the period
As of February 28, 2019

8,586,160 shares As of February 28, 2018

8,581,854 shares

147,626,055 shares Year ended February 28, 2018

147,631,293 shares

Average number of shares during the period
Year ended February 28, 20192

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 28, 2018

As of February 28, 2019

AssetsCurrent assets
Cash and deposits
Operating accounts receivable

4,171,521
833,705

4,716,148
924,243

Inventories
Income taxes receivable

100,017–

102,746
145,734

Deferred tax assets
Other

517,310444,926

182,907441,968

Allowance for doubtful accounts
Total current assets(15,065)(12,816)

6,052,415

6,500,933

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Tools, furniture and fixtures

2,223,157

2,507,978(1,103,396)(1,147,080)

1,119,760

1,360,897

1,485,572

1,656,340

Accumulated depreciation(533,456)(557,721)

Tools, furniture and fixtures, net

952,116

1,098,619

Land

417,963

417,963

Other
Accumulated depreciation

13,668(13,668)

13,668(13,668)002,489,840

2,877,480

Other

162,163

153,609

Total intangible assets

162,163

153,609

1,997
574,629–456,932

2,143,707
236,094

2,236,021
239,660

Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Deferred tax assets
Lease and guarantee deposits
Other
Allowance for doubtful accounts(5,892)(6,072)

Total investments and other assets

2,950,536

2,926,541

5,602,541

5,957,632

439
68,718333
54,510Total non-current assets
Deferred assets
Deferred organization expenses
Business commencement expenses
Total deferred assets
Total assets

3

69,157

54,844

11,724,113

12,513,410

(Thousands of yen)
As of February 28, 2018

As of February 28, 2019

Liabilities
Current liabilities
Accounts payable - other761,970

1,222,619

Income taxes payable
Advances received

302,6131,331,464

400,616
1,169,407

Provision for sales returns
Provision for bonuses

2,850
213,175

3,626
219,110

Provision for cancelation refunds
Provision for loss on litigation

358
15,619––Asset retirement obligations
Other

18,324784,449

2,127
843,958

3,430,826

3,861,464

–

8,264

–
1,101,479

2,492
1,383,449

Total current liabilities
Non-current liabilities
Lease obligations
Deferred tax liabilities
Net defined benefit liability
Asset retirement obligations

918,495

994,196

Total non-current liabilities

2,019,974

2,388,402

5,450,800

6,249,867

Capital stock
Capital surplus

2,890,415
822,859

2,890,415
822,859Retained earnings
Treasury shares

3,975,192(1,396,388)

4,099,827(1,397,924)

Total shareholders' equity

6,292,080

6,415,178

Total liabilities
Net assets
Shareholders' equity

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

431–

Foreign currency translation adjustment
Remeasurements of defined benefit plans

870(20,068)

664(174,637)

Total accumulated other comprehensive income(18,766)(173,972)

Share acquisition rights
Total net assets
Total liabilities and net assets

4–

22,337

6,273,313

6,263,542

11,724,113

12,513,410

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
February 28, 2018

Fiscal year ended
February 28, 2019

Net sales

22,584,511

24,496,171

Cost of sales

16,242,601

17,382,706

Gross profit

6,341,909

7,113,465

Selling, general and administrative expenses

4,183,692

4,583,501

Operating profit

2,158,217

2,529,963

32

20

Dividend income
Gain on bad debts recovered

47
1,297

55
2,677

Foreign exchange gains
Commission fee

–
1,496

4,477
673

Miscellaneous income
Other

884
1,932

1,770
2,595

Total non-operating income

5,691

12,270Non-operating income
Interest income

Non-operating expenses
Interest expenses

370

27

Amortization of share issuance cost
Foreign exchange losses

8,005
14,379––Loss on cancellation of leases
Other

–
1,187

1,221
78

Total non-operating expenses

23,943

1,327

2,139,965

2,540,907

1,848
–

358
135

–
–

27,97034,918

1,848

63,382

1,039

49,447

Impairment loss
Relocation expenses

20,562
12,626

10,4204,035

Litigation expenses
Provision for loss on litigation

15,604
15,61932,923–

Loss on liquidation of business
Loss on insurance cancellation

45,009––10,726

Ordinary profit
Extraordinary income
Reversal of allowance for provision for cancelation refunds
Gain on sales of investment securities
Insurance income
Compensation income
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets

Other

11,150–Total extraordinary losses

121,611

107,553

Profit before income taxes

2,020,202

2,496,736

Income taxes - current

347,484544,632

Refund of income taxes
Income taxes - deferred(9,829)300,901(0)375,808

Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

5638,556

920,441

1,381,646

1,576,295(0)–

1,381,646

1,576,295

Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

February 28, 2018

February 28, 2019

1,381,646

1,576,295

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

43
643

(431)
(206)

Remeasurements of defined benefit plans, net of tax(30,150)(154,568)(29,464)(155,206)

Comprehensive income

Total other comprehensive income

1,352,181

1,421,089

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,352,181

1,421,089

0(0)Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended February 28, 2018
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

2,890,415

Retained earnings

822,859

Treasury shares

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

Total shareholders'equity6,290,476

Changes of items during period
Profit attributable to ownersof parent

1,381,646

Dividends of surplus(1,377,901)

1,381,646(1,377,901)

Purchase of treasury shares(2,141)(2,141)

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

–

–

3,744

(2,141)

1,603

2,890,415

822,859

3,975,192(1,396,388)

6,292,080

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income387

227

10,081

10,697

Net changes of items otherthan shareholders' equity

43

643

(30,150)(29,464)

Total changes of items during
period43643(30,150)(29,464)

Balance at end of current period

431

870

(20,068)(18,766)

Balance at beginning of current
periodChanges of items during period
Profit attributable to ownersof parent
Dividends of surplus
Purchase of treasury shares

Balance at beginning of current
periodShare acquisitionrightsNon-controllinginterests

Total net assets–

06,301,174

Changes of items during period
Profit attributable to ownersof parent

1,381,646

Dividends of surplus(1,377,901)

Purchase of treasury shares(2,141)

Net changes of items otherthan shareholders' equity–(0)(29,464)

Total changes of items during
period–(0)(27,861)

Balance at end of current period––

6,273,313

7

Fiscal year ended February 28, 2019
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

2,890,415

Retained earnings

822,859

Treasury shares

3,975,192(1,396,388)

Total shareholders'equity6,292,080

Changes of items during period
Profit attributable to ownersof parent

1,576,295

1,576,295

Dividends of surplus(1,451,660)(1,451,660)

Purchase of treasury shares(1,536)(1,536)

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

124,634(1,536)

123,098

2,890,415

822,859

4,099,827(1,397,924)

6,415,178

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income431

870(20,068)(18,766)

Net changes of items otherthan shareholders' equity

(431)

(206)

(154,568)(155,206)

Total changes of items during
period

(431)

(206)

(154,568)(155,206)

Balance at end of current period–

664(174,637)(173,972)

Balance at beginning of current
periodChanges of items during period
Profit attributable to ownersof parent
Dividends of surplus
Purchase of treasury shares

Balance at beginning of current
periodShare acquisitionrightsNon-controllinginterests

Total net assets––

6,273,313

Changes of items during period
Profit attributable to ownersof parent

1,576,295

Dividends of surplus(1,451,660)

Purchase of treasury shares(1,536)

Net changes of items otherthan shareholders' equity

22,337–(132,868)

Total changes of items during
period22,337–(9,770)

Balance at end of current period

22,337–

6,263,542

8

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

Fiscal year ended

February 28, 2018

February 28, 2019

Cash flows from operating activities
Profit before income taxes

2,020,202

2,496,736

Depreciation
Amortization of deferred assets

233,061
22,905

254,649
16,918

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses(2,843)33,190(2,069)5,935

Increase(decrease) in provision for cancelation refunds
Increase (decrease) in provision for loss on litigation(2,116)
15,619(358)–

Increase (decrease) in net defined benefit liability
Increase (decrease) in remeasurements of defined benefit

158,513

281,970(30,150)(154,568)

plans
Increase (decrease) in other provision

(785)

776

Interest and dividend income
Loss on retirement of property, plant and equipment

(79)
1,039

(75)
49,447

Impairment loss
Interest expenses

20,562370

10,42027

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories(93,955)
25,876(90,538)(2,728)Decrease (increase) in prepaid expenses
Increase (decrease) in notes and accounts payable - trade(61,473)
3,243(8,066)
317

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

26,86532,86081
464,600

Increase (decrease) in advances received
Other, net

240,626
96,109(162,056)(4,046)

2,739,644

3,157,373

79
(370)

75
(27)

(109,900)(378,960)(15,619)(459,561)

27,97825,711

2,278,471

2,707,951

Purchase of property, plant and equipment
Purchase of intangible assets(324,231)(38,533)(545,664)(38,520)

Proceeds from sales of investment securities
Purchase of insurance funds–(39,441)

1,511(18,863)

Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits(191,643)
79,702(153,405)
60,862

Payments for deferred assets
Other, net(26,509)(52,732)–(37,064)

Net cash provided by (used in) investing activities(593,387)(731,145)

SubtotalInterest and dividend income received
Interest expenses paid
Litigation settlement paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities

9(Thousands of yen)
Fiscal year ended

Fiscal year ended

February 28, 2018

February 28, 2019

Cash flows from financing activities
Increase in short-term loans payable

900,000–

Decrease in short-term loans payable
Cash dividends paid

(900,000)(1,373,651)–(1,452,981)

Proceeds from issuance of share acquisition rights
Purchase of treasury shares–(2,141)

22,337(1,536)

Other, net(1,279)(1,567)(1,377,072)(1,433,748)(2,545)

1,569

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

305,465544,627

Cash and cash equivalents at beginning of period

3,866,056

4,171,521

Cash and cash equivalents at end of period

4,171,521

4,716,148

10