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 Six Months Ended August 31, 2022
(Based on Japanese GAAP)
October 11, 2022
Company name:
Riso Kyoiku Co.,Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

4714
URL https://www.riso-kyoikugroup.com/
President and CEO
Masahiko Tenbo

Inquiries:
Vice president and CFOScheduled date to file Quarterly Securities Report:

Masaaki Kume
October 12, 2022

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

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 six months ended August 31, 2022 (from March 1, 2022 to August 31, 2022)(1) Consolidated operating results (cumulative)
Net sales
Six months ended August 31, 2022
Six months ended August 31, 2021

Millions of yen
15,441
14,612

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
5.7
1,007 (24.3)
1,034 (24.7)
636 (27.2)
31.5
1,331
–
1,373–
874–

Earnings per share

Diluted earnings per share
Yen
4.12
5.91

Six months ended August 31, 2022
Six months ended August 31, 2021

Yen
4.11
5.90

(2) Consolidated financial position
Total assets
As of August 31, 2022
As of February 28, 2022

Net assets

Millions of yen
17,64519,045Equity ratio

Millions of yen
8,603
10,513

Net assets per share%
48.1
54.8

Yen
55.02
67.59

2. Cash dividends
Annual dividends per share

Year ended February 28, 2022
Year ending February 28, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
0.00
0.00

Yen
0.00
0.00

Yen
0.00

Yen
16.00

Yen
16.00

0.00

16.00

16.00

Year ending February 28, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 28, 2023 (from March 1, 2022 to February 28, 2023)
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
33,000
10.0
3,610
19.1
3,700
21.4
2,500
2.8
16.20

1

4. Notes(1) Changes in significant subsidiaries during the six months ended August 31, 2022
(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 August 31, 2022

156,209,829 shares As of February 28, 2022

156,209,829 shares

Number of treasury shares at the end of the period
As of August 31, 2022

1,897,190 shares As of February 28, 2022

1,897,030 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 2022

154,312,696 shares Six months ended August 31, 2021

2147,813,598 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 28, 2022

As of August 31, 2022

AssetsCurrent assets
Cash and deposits
Trade accounts receivable
Inventories
Other
Allowance for doubtful accounts
Total current assets

8,011,322
2,328,853

6,259,489
2,253,004

152,476
513,945

158,354612,005(9,571)(15,254)

10,997,027

9,267,599

Non-current assets
Property, plant and equipment
Buildings and structures

3,478,318

3,728,483

Accumulated depreciation(1,532,583)(1,631,020)

Buildings and structures, net

1,945,734

2,097,463

2,093,144

2,202,863

Tools, furniture and fixtures
Accumulated depreciation(787,981)(841,053)

Tools, furniture and fixtures, net

1,305,162

1,361,810

Land

417,963

417,963

Other
Accumulated depreciation

13,668(13,668)

23,541(1,690)021,8503,668,860

3,899,087

Other

196,804

203,181

Total intangible assets

196,804

203,181

Investment securities
Deferred tax assets

109,306
1,074,648

110,664
1,101,816

Leasehold and guarantee deposits
Other

2,715,012
290,018

2,765,758
303,163

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

Total investments and other assets

4,182,914

4,275,330

Other, netTotal property, plant and equipment
Intangible assets

Investments and other assets

Total non-current assets
Total assets

3

8,048,578

8,377,599

19,045,606

17,645,198

(Thousands of yen)
As of February 28, 2022

As of August 31, 2022

Liabilities
Current liabilities
Accounts payable - other

1,176,548

1,621,235

Income taxes payable
Advances received

737,696
1,961,988

387,585––
2,405

2,446,759–

289,817

318,566

1,593

1,525

Contract liabilities
Provision for sales returns
Provision for bonuses
Provision for loss on liquidation of subsidiaries andassociates
Asset retirement obligations

9,341

23,199Other

1,266,910

1,024,198

Total current liabilities

5,446,301

5,823,069

Lease obligations
Retirement benefit liability

1,678
1,912,901

560
2,024,061

Asset retirement obligations
Deferred tax liabilities

1,162,432
8,599

1,184,939
9,214

Total non-current liabilities

3,085,611

3,218,776

8,531,913

9,041,845

Shareholders' equity
Share capital

2,890,415

2,890,415

Capital surplus
Retained earnings

2,616,453
5,379,715

2,616,453
3,418,501

Treasury shares(391,760)(391,818)

10,494,824

8,533,551

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

3,087(1,602)

4,029
(667)

Remeasurements of defined benefit plans(65,727)(46,845)

Total accumulated other comprehensive income(64,242)(43,483)

Share acquisition rights

83,111

113,284

Non-controlling interests00

Non-current liabilities

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income

Total net assets
Total liabilities and net assets

4

10,513,693

8,603,352

19,045,606

17,645,198

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

Six months ended

August 31, 2021

August 31, 2022

Net sales
Cost of sales

14,612,856
10,490,623

15,441,194
11,290,987

Gross profit

4,122,232

4,150,207

Selling, general and administrative expenses

2,790,998

3,143,042

Operating profit

1,331,233

1,007,164

Interest income
Dividend income

11
1,931

132,088

Foreign exchange gains
Gain on forfeiture of unclaimed dividends

1,538
2,691

–
3,732

Compensation income
Subsidy income

7,974
27,358–
11,379Recoveries of written off receivables
Compensation income for damage

1,268
–

507
5,465

Miscellaneous income
Other

3,295
2,338

2,618
2,451

Total non-operating income

48,40728,257

1,883

17–
4,142

151
–

157

559

Non-operating income

Non-operating expenses
Interest expenses
Foreign exchange losses
Litigation expenses
Other
Total non-operating expenses

6,182

728

1,373,458

1,034,694–

571

Reversal of provision for loss on liquidation of subsidiaries
and associates

7,850

–

Compensation income

41,839–Total extraordinary income

49,690

571

315
2,983

04,105

Ordinary profit
Extraordinary income
Gain on sale of non-current assets

Extraordinary losses
Loss on retirement of non-current assets
Relocation expenses
Other
Total extraordinary losses
Profit before income taxes

543

–

3,841

4,105

1,419,306

1,031,160

Income taxes

545,246

395,048

Profit874,060

636,111

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent50(0)874,060

636,111

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

ProfitOther comprehensive income

Six months ended

Six months ended

August 31, 2021

August 31, 2022

874,060

636,111

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

7,388(1,447)

941
935

Remeasurements of defined benefit plans, net of tax

24,782

18,88230,72320,758Comprehensive income

Total other comprehensive income

904,783

656,870

Comprehensive income attributable toComprehensive income attributable to owners of parent

904,783

656,870(0)0Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

August 31, 2021

August 31, 2022

1,419,306

1,031,160

Depreciation
Increase (decrease) in allowance for doubtful accounts

184,369
1,398

206,368
5,683

Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability

24,43285,07028,749111,159

Increase (decrease) in remeasurements of defined benefit
plans

24,782

18,882

Increase (decrease) in provision for loss on liquidation ofsubsidiaries and associates(38,551)(68)

Increase (decrease) in other provisions
Interest and dividend income

432(1,942)–(2,101)

Interest expenses
Subsidy income

1,883(27,358)

17(11,379)––(5,465)(571)

Loss on retirement of non-current assets
Decrease (increase) in trade receivables

315
371,631075,849

Decrease (increase) in inventories
Increase (decrease) in accounts payable - other(20,455)
190,517(5,878)407,104

Increase (decrease) in advances received
Increase (decrease) in contractLiabilities

394,015––484,771

Compensation for damage income
Gain on sale of non-current assets

Other, net

23,646(508,472)

Subtotal

2,633,495

1,835,808

Interest and dividends received

1,942

2,101

Interest paid
Subsidies received(1,883)27,358(17)
11,379–(419,300)

5,465(700,845)

Proceeds from compensation for damage
Income taxes paid
Income taxes refund

37,672–

2,279,286

1,153,892

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment(474,880)–(319,205)
571

Purchase of intangible assets
Payments of leasehold and guarantee deposits(46,828)(112,729)(42,445)(59,771)

Proceeds from refund of leasehold and guarantee deposits
Other, net

6,876(47,122)

9,025(32,233)

Net cash provided by (used in) investing activities(674,685)(444,058)

Net cash provided by (used in) operating activities
Cash flows from investing activities

7

(Thousands of yen)Six months ended

Six months endedAugust 31, 2021

August 31, 2022

Cash flows from financing activities
Proceeds from short-term borrowings

2,300,000–

Repayments of short-term borrowings
Repayments of lease obligations(2,300,000)––(1,106)

Dividends paid
Purchase of treasury shares(1,398,763)(101)(2,461,122)(61)

Proceeds from disposal of treasury shares
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents–3(1,398,865)(2,462,287)

824

619

Net increase (decrease) in cash and cash equivalents

206,560(1,751,833)

Cash and cash equivalents at beginning of period

3,963,694

8,011,322

Cash and cash equivalents at end of period

4,170,254

6,259,489

8