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 Three Months Ended May 31, 2016
(Based on Japanese GAAP)
July 11, 2016
Company name:
RISO KYOIKU CO.,LTD
Stock exchange listing: Tokyo
Stock code:
Representative:

4714
URL http://www.tomas.co.jp/President and CEO
Masahiko Tenbo

Inquiries:
Director
Scheduled date to file Quarterly Securities Report:

Kazunori Noto
July 12, 2016

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

Holding of quarterly financial results meeting:

NoTEL

03-5996-3701(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended May 31, 2016 (from March 1, 2016 to May 31, 2016)(1) Consolidated operating results (cumulative)
Net sales
Three months ended May 31, 2016
Three months ended May 31, 2015

Millions of yen
4,061
3,799

Percentages indicate year-on-year changes
Profit attributable toOperating income
Ordinary income
owners of parent% Millions of yen% Millions of yen% Millions of yen%
6.9(206)–(212)–(146)–0.1(270)–(275)–(210)–Earnings per share

Diluted earnings per share

Yen(2.82)(4.09)

Three months ended May 31, 2016
Three months ended May 31, 2015

Yen––(2) Consolidated financial position
Total assets
As of May 31, 2016
As of February 29, 2016

Net assets

Millions of yen
11,63912,493Equity ratio

Millions of yen
7,227
7,785

Net assets per share%62.1
62.3

Yen
139.13150.84

2. Cash dividends
Annual dividends per share

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
0.00
0.00

Yen
0.00

Yen
0.00

Yen
10.00

Yen
10.00

8.00

0.00

8.00

16.00

Year ending February 28, 2017 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 28, 2017 (from March 1, 2016 to February 28, 2017)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating incomeOrdinary income
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
20,800
5.9
2,100
11.1
2,050
10.4
1,250 (12.5)
24.06

1

4. Notes(1) Changes in significant subsidiaries during the three months ended May 31, 2016(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:

Yes
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 May 31, 2016

52,069,943 shares As of February 29, 2016

52,069,943 shares

Number of treasury shares at the end of the period
As of May 31, 2016

122,778 shares As of February 29, 2016

452,238 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended May 31, 2016

51,889,980 shares Three months ended May 31, 2015

251,558,294 shares

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

As of May 31, 2016

AssetsCurrent assets
Cash and deposits
Operating accounts receivable

4,515,815
1,356,567

4,253,146
639,050

Inventories
Deferred tax assets

99,636100,167

94,686
97,225

Other
Allowance for doubtful accounts

334,597(11,733)

322,591(12,187)

6,395,050

5,394,513

1,890,504(967,660)

1,918,007(990,460)

922,843927,547

1,345,177(508,114)

1,351,843(510,103)

837,062

841,740

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, net
Land
Other
Accumulated depreciationOther, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Lease and guarantee deposits
Other

0

0

2,177,869

2,187,250

200,430

218,165

200,430

218,165

1,274

1,450

1,563,305
1,952,297

1,688,301
1,954,071

163,750

167,4133,680,628

3,811,236

6,058,928

6,216,653

Share issuance cost

39,44627,873

Total deferred assets

39,44627,873

12,493,425

11,639,040

Total investments and other assets
Total non-current assets
Deferred assets

Total assets3

(Thousands of yen)
As of February 29, 2016

As of May 31, 2016

Liabilities
Current liabilities
Accounts payable - other805,368

710,205

Income taxes payable
Advances received

127,684
1,155,577

42,974
1,081,927

Provision for sales returns
Provision for bonuses

13,777144,086

14,117
257,872

Provision for cancellation refunds
Asset retirement obligations

45,622–

44,216
18,566

Other

750,648578,268

3,042,766

2,748,150

826,949
836,410

836,186
826,539

1,436

861

1,664,796

1,663,587

4,707,563

4,411,737

Capital stock
Capital surplus

2,890,415
822,859

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

4,181,754(215,016)

3,468,682(59,366)

Total shareholders' equity

7,680,012

7,122,590

(68)

52

Remeasurements of defined benefit plans

105,917

104,659

Total accumulated other comprehensive income

105,849

104,711

Total current liabilities
Non-current liabilities
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

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

Total net assets
Total liabilities and net assets

47,785,861

7,227,302

12,493,425

11,639,040

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)Three months ended

Three months ended

May 31, 2015

May 31, 2016

Net sales
Cost of sales

3,799,808
3,216,309

4,061,718
3,383,558

Gross profit

583,498

678,159

Selling, general and administrative expenses853,722

884,990

Operating loss

(270,223)(206,830)

Interest income
Gain on forfeiture of unclaimed dividends

773,795

4
3,528

Gain on bad debts recovered
Other

874
1,497

1,933
766

Total non-operating income

6,244

6,233

67

25

11,57367

11,573181

Non-operating income

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

11,707

11,780(275,687)(212,377)

Reversal of allowance for provision for cancelation refunds
Other

21,871
227

244–

Total extraordinary income

22,099244Ordinary loss
Extraordinary income

Extraordinary losses
Impairment loss

22,467

4,957

Litigation expenses
Loss on fraud transactions–
22,062

7,746–

Business structure improvement expenses
Relocation expenses

20,139
3,990

–
1,542

Total extraordinary losses

68,66014,246

Loss before income taxes and minority interests(322,248)(226,379)

Income taxes(111,592)(80,302)

Loss(210,655)(146,076)

Loss attributable to owners of parent(210,655)(146,076)

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

LossOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

Three months ended

Three months ended

May 31, 2015

May 31, 2016

(210,655)(146,076)

276(1,410)120(1,258)(1,133)(1,137)(211,789)(147,214)(211,789)(147,214)––

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6