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, 2016
(Based on Japanese GAAP)
April 12, 2016
Company name:

RISO KYOIKU CO., LTD

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

URL

http://www.tomas.co.jp/President and CEO
Executive Vice President

Masahiko Tenbo
Kazuyoshi MinagiScheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

May 26, 2016
May 27, 2016

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:–
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, 2016 (from March 1, 2015 to February 29, 2016)(1) Consolidated financial results
Percentages indicate year-on-year changes
Net salesYear ended February 29, 2016
Year ended February 28, 2015

Millions of yen
19,643
18,776

Operating income% Millions of yen
4.6
1,890
(5.1)
1,006

Diluted net income
per share
Yen
Yen
27.69
–
47.81
–

Net income per share
Year ended February 29, 2016
Year ended February 28, 2015

Ordinary income

%
87.9
–

Millions of yen
1,857
978%
89.8
–

Net income
Millions of yen
1,428
2,379

Ordinary
income/total assets
%%
20.7
15.1
54.7
6.8

Net income/equity%(40.0)–

Operatingincome/net sales%
9.6
5.4(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Millions of yen
12,493
12,069Millions of yen
7,785
6,041

Cash flows fromoperating activities
Millions of yen
1,434(2,546)

Cash flows frominvesting activities
Millions of yen
(217)
5,488

As of February 29, 2016
As of February 28, 2015

Net assets per share%
62.3
50.1

Yen
150.84117.21(3) Consolidated cash flows

Year ended February 29, 2016
Year ended February 28, 2015

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
94,515(1,556)3,288

2. Cash dividends
Ratio ofDividend
Total cash
dividends topayout ratio
dividends (Total) (Consolidated)
net assets(Consolidated)

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

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

Year ended February 28, 2015
Year ended February 29, 2016

0.00
0.00

0.00
0.00

0.00
0.00

0.00
10.00

0.00
10.00

–
519

–
36.1

–
7.5

Year ending February 28, 2017 (Forecast)

0.00

8.00

0.00

8.00

16.00

166.5

3. Forecast of consolidated financial results for the year ending February 28, 2017 (from March 1, 2016 to February 28, 2017)
Net sales
Full year

Millions of yen
20,800Percentages indicate year-on-year changes
Profit attributable toNet income
Operating income
Ordinary income
owners of parent
per share% Millions of yen% Millions of yen% Millions of yen%
Yen
5.9
2,100
11.1
2,050
10.4
1,250 (12.5)
24.06

4. Notes(1) Changes in significant subsidiaries during the year ended February 29, 2016(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 after error corrections:

YesNo(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, 2016

52,069,943 shares As of February 28, 2015

52,069,943 shares

Number of treasury shares at the end of the period
As of February 29, 2016

452,238 shares As of February 28, 2015

521,529 shares

51,584,695 shares Year ended February 28, 2015

49,772,038 shares

Average number of shares during the period
Year ended February 29, 20162

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 28, 2015

As of February 29, 2016

AssetsCurrent assets
Cash and deposits
Operating accounts receivable

3,288,665
1,217,097

4,515,815
1,356,567

Inventories
Income taxes receivable

107,063
53,945

99,636–

Deferred tax assets
Other

234,437
326,682

100,167
334,597

Allowance for doubtful accounts
Total current assets(11,721)(11,733)

5,216,168

6,395,050

1,881,015

1,890,504(904,656)(967,660)

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

976,358

922,843

1,420,024

1,345,177

Accumulated depreciation(532,071)(508,114)

Tools, furniture and fixtures, net

887,952

837,062Land

417,963

417,963

Other
Accumulated depreciation

15,988(15,974)

13,668(13,668)14

02,282,289

2,177,869

Other

218,454

200,430

Total intangible assets

218,454

200,430

Investment securities
Deferred tax assets

2,394
2,157,915

1,274
1,563,305

Lease and guarantee deposits
Other

1,990,590
116,422

1,952,297
163,750

Total investments and other assets

4,267,324

3,680,628

6,768,068

6,058,928

85,73839,446

Tools, furniture and fixtures

Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Total non-current assets
Deferred assets
Share issuance cost
Total deferred assets
Total assets

385,738

39,446

12,069,976

12,493,425

(Thousands of yen)
As of February 28, 2015

As of February 29, 2016

Liabilities
Current liabilities
Accounts payable - other

913,048805,368

Income taxes payable
Advances received

84,7991,646,079

127,684
1,155,577

Provision for sales returns
Provision for bonuses

13,790112,687

13,777144,086

Provision for loss on classroom closing
Provision for cancelation refunds

5,214
528,143–
45,622

Asset retirement obligations
Other

30,031
647,278–
750,648

Total current liabilities

3,981,075

3,042,766

Non-current liabilities
Net defined benefit liability

1,210,431

826,949

Asset retirement obligations
Other

828,827
7,892

836,410
1,436

Total non-current liabilities

2,047,150

1,664,796

6,028,226

4,707,563

Shareholders' equity
Capital stock

2,890,415

2,890,415

Capital surplus
Retained earnings

822,859
2,521,937

822,859
4,181,754

Treasury shares(249,069)(215,016)

Total shareholders' equity

5,986,143

7,680,012

Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans

425
55,180(68)
105,917

Total accumulated other comprehensive income

55,606

105,849

6,041,749

7,785,861

12,069,976

12,493,425

Total liabilities
Net assets

Accumulated other comprehensive income

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 28, 2015Fiscal year ended
February 29, 2016

Net sales

18,776,583

19,643,220

Cost of sales

14,558,420

14,351,245

Gross profit

4,218,163

5,291,974

Selling, general and administrative expenses

3,211,935

3,401,516

Operating income

1,006,227

1,890,458

537

669

Dividend income
Refunded consumption taxes

222
4,711

47
–

Gain on forfeiture of unclaimed dividends
Dividend income of insurance

4,842
3,997

6,594
–

Interest on refund
Gain on bad debts recovered

11,502
1,842

590
2,808

Non-operating income
Interest income

Other

4,971

3,404

Total non-operating income

32,627

14,114

Interest expenses
Amortization of share issuance cost

16,40838,286201
46,292

Other

5,636

697

Non-operating expenses

60,33147,191

Ordinary income

Total non-operating expenses

978,523

1,857,381

Extraordinary income
Gain on sales of investment securities

124,212–

1,162,852
950,502

1,312
474,922921,299
14,073–
9,072

3,172,939

485,307508,319

74,439Loss on retirement of non-current assets
Relocation expenses

12,27836,545

10,585
10,842

Litigation expenses
Loss on fraud transactions–39,385

26,44622,062Business structure improvement expenses
Loss on insurance cancellation

147,945
43,06425,394–

Provision for loss on classroom closing
Other

5,214
7,851

–
–

Gain on sales of non-current assets
Reversal of allowance for provision for cancelation refunds
Refunds on prior periods dividends income
Other
Total extraordinary income
Extraordinary losses
Impairment loss

800,604

169,771

Income before income taxes and minority interests

Total extraordinary losses

3,350,859

2,172,917

Income taxes - current
Refund of income taxes

140,382(139,329)

161,379(10,700)

Income taxes - deferred

970,019593,685

Total income taxes

971,072

744,364

Income before minority interests

2,379,786

1,428,552

Net income

2,379,786

1,428,552

5

Consolidated statements of comprehensive income(Thousands of yen)

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

Fiscal year ended

Fiscal year ended

February 28, 2015

February 29, 2016

2,379,786

1,428,552(76,703)–(494)
50,736(76,703)50,2422,303,082

1,478,795

2,303,082–

1,478,795–

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to minority interests

6Consolidated statements of changes in equity
Fiscal year ended February 28, 2015
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

2,390,415

Retained earnings

3,223,702(2,737,129)

Total shareholders'equity

Treasury shares(290,314)

2,586,674

Changes of items during period
Issuance of new shares

500,000

Deficit disposition

500,000

1,000,000(2,900,843)

2,900,843–

Dividends of surplus–

Net income

2,379,786

Purchase of treasury shares
Disposal of treasury shares(21,562)

Transfer to capital surplus
from retained earnings

21,562(21,562)

2,379,786(2,164)(2,164)

43,40921,846–

Net changes of items otherthan shareholders' equity
Total changes of items during
period500,000(2,400,842)

5,259,067

41,244

3,399,468

Balance at end of current period

2,890,415822,859

2,521,937(249,069)

5,986,143

Accumulated other comprehensive income

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

Remeasurements ofdefined benefit plans

Total accumulated
other comprehensive
incomeSubscription rights toshares

77,129–77,129–Total net assets

2,663,804

Changes of items during period
Issuance of new shares

1,000,000

Deficit disposition–

Dividends of surplus–

Net income

2,379,786

Purchase of treasury shares(2,164)

Disposal of treasury shares

21,846

Transfer to capital surplus
from retained earnings
Net changes of items otherthan shareholders' equity(76,703)55,180(21,522)–(21,522)

Total changes of items during
period(76,703)55,180(21,522)–

3,377,945

Balance at end of current period

425

55,18055,606–

6,041,749

7

Fiscal year ended February 29, 2016
(Thousands of yen)
Shareholders' equity
Capital stock

Capital surplus

Retained earnings

Total shareholders'equityTreasury shares

Balance at beginning of current
period2,890,415

822,859

2,521,937(249,069)

5,986,143

Cumulative effects of changes
in accounting policies––

243,795–

243,795

2,890,415

822,859

2,765,733(249,069)

6,229,939

Restated balance
Changes of items during period
Net income

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
Valuation difference on
available-for-salesecurities

Remeasurements ofdefined benefit plans

Total accumulated
other comprehensive
incomeSubscription rights toshares

Balance at beginning of current
period425

55,18055,606–

6,041,749

Cumulative effects of changes
in accounting policies––––

243,795

425

55,18055,606–

6,285,545

Restated balance

Total net assets

Changes of items during period
Net income

1,428,552

Purchase of treasury shares(2,098)

Disposal of treasury shares

23,619Transfer to capital surplus
from retained earnings–

Net changes of items otherthan shareholders' equity(494)

50,73650,242–50,242

Total changes of items duringperiod(494)

50,73650,242–1,500,315

Balance at end of current period(68)

105,917

105,849–

7,785,8618

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Income before income taxes and minority interests

Fiscal year ended

Fiscal year ended

February 28, 2015

February 29, 2016

3,350,859

2,172,917

Depreciation
Amortization of deferred assets

201,474
40,256215,969
46,292

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

8,063(22,214)1131,399

Increase(decrease) in provision for cancelation refunds
Increase (decrease) in net defined benefit liability(2,233,085)
46,423(482,521)(54,560)

(633)
(760)

(12)
(716)

Loss (gain) on sales of investment securities
Loss on retirement of property, plant and equipment(124,212)
12,278–
10,585

Refunds on prior periods dividends income
Impairment loss

(921,299)
508,319–
74,439Interest expenses
Loss (gain) on sales of non-current assets

16,408(1,162,852)

201(1,312)

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories(603,263)
4,718(139,470)
7,426

Increase (decrease) in notes and accounts payable - trade
Decrease (increase) in consumption taxes refund receivable(2,238)
307,568

10,826–

Increase (decrease) in accrued consumption taxes
Increase (decrease) in accounts payable - other254,347(925,293)

86,769(124,661)

Increase (decrease) in advances received
Other, net(2,456,969)
209,870(490,502)
136,645

Subtotal(3,492,233)

1,499,726

Interest and dividend income received
Interest expenses paid

760
(16,745)

716
(201)

Income taxes paid
Income taxes refund(183,707)
648,915(130,359)
64,426

Proceeds from refunds on prior periods dividends income
Payments for penalty

921,299(424,770)––(2,546,481)

1,434,308

Increase (decrease) in other provisionInterest and dividend income

Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment(78,156)(104,570)

4,394,444(56,920)

62,264(67,327)

Proceeds from sales of investment securities
Proceeds from cancellation of insurance funds

871,042
383,986356–

Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits(61,085)
171,944(56,177)
65,074Purchase of insurance funds
Other, net(64,849)(71,948)(52,061)(64,620)

5,488,456(217,060)

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

Net cash provided by (used in) investing activities

9(Thousands of yen)

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

Fiscal year ended

Fiscal year ended

February 28, 2015

February 29, 2016

500,000–

Decrease in short-term loans payable
Repayments of long-term loans payable(2,000,000)(785,000)––

Cash dividends paid
Proceeds from issuance of common shares(3,205)927,952(892)–

Redemption of bonds
Purchase of treasury shares(200,000)(2,164)–(2,098)Proceeds from disposal of treasury shares
Other, net

21,846(16,088)

23,619(10,726)(1,556,659)

9,902

Net increase (decrease) in cash and cash equivalents

Net cash provided by (used in) financing activities

1,385,315

1,227,150

Cash and cash equivalents at beginning of period

1,903,350

3,288,665

Cash and cash equivalents at end of period

3,288,665

4,515,815

10