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, 2022
(Based on Japanese GAAP)
April 7, 2022
Company name:

Riso Kyoiku Co.,Ltd.

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

URL

https://www.riso-kyoikugroup.com/

President and CEO
Vice president and CFO

Masahiko Tenbo
Masaaki Kume

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

May 27, 2022
May 30, 2022

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

May 12, 2022
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, 2022 (from March 1, 2021 to February 28, 2022)(1) Consolidated operating resultsPercentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended February 28, 2022
30,00819.1
3,030 199.8
3,048 155.7
2,431 337.9
Year ended February 28, 2021
25,201(5.6)
1,010(62.8)
1,192(56.6)
555(71.6)

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
16.22
28.7
18.5
10.1
3.79
8.8
8.84.0

Diluted earnings pershare

Yen
16.25
3.79

Year ended February 28, 2022
Year ended February 28, 2021
(2) Consolidated financial position

Total assets
As of February 28, 2022
As of February 28, 2021

Net assets

Equity ratio

Millions of yen
19,045
13,940Millions of yen
10,513
6,575

Cash flows fromoperating activities
Millions of yen
3,607
(36)

Cash flows frominvesting activities
Millions of yen(1,011)(655)

Net assets per share%
54.8
46.7

Yen
67.59
44.02

(3) Consolidated cash flows

Year ended February 28, 2022
Year ended February 28, 2021

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
1,450
8,011
(182)
3,963

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

Year ended February 28, 2021
Year ended February 28, 2022
Year ending February 28, 2023
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

TotalYenYenYen

YenYenMillions of yen%%

0.000.00

0.00
0.00

0.00
0.00

9.50
16.00

9.50
16.00

1,404
2,469

250.7
98.5

22.3
28.7

0.00

0.00

0.00

16.00

16.00

198.8

3. Forecast of consolidated financial results for the year ending February 28, 2023 (from March 1, 2022 to February 28, 2023)
Net sales
Full year

Millions of yen
33,000Percentages 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
10.0
3,610
19.1
3,700
21.4
2,500
2.816.20

4. Notes(1) Changes in significant subsidiaries during the year ended February 28, 2022
(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:

NoNo

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, 2022

156,209,829 shares As of February 28, 2021

156,209,829 shares

Number of treasury shares at the end of the period
As of February 28, 2022

1,897,030 shares As of February 28, 2021

8,396,070 shares

149,665,379 shares Year ended February 28, 2021

146,387,438 shares

Average number of shares during the period
Year ended February 28, 20222

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 28, 2021

As of February 28, 2022

AssetsCurrent assets
Cash and deposits
Trade accounts receivable

3,963,694
2,454,135

8,011,322
2,328,853

Inventories
Income taxes receivable

135,497
37,672

152,476–

Other
Allowance for doubtful accounts

438,892(11,588)

513,945(9,571)

7,018,304

10,997,027

2,953,928(1,413,589)

3,478,318(1,532,583)

1,540,339

1,945,734

1,858,972(701,592)

2,093,144(787,981)

1,157,379

1,305,162

417,963
13,668417,963
13,668(13,668)(13,668)

003,115,682

3,668,860

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, netTools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Other

177,485

196,804

Total intangible assets

177,485

196,804

Investments and other assets
Investment securities

124,027

109,306

Deferred tax assets
Leasehold and guarantee deposits

678,8912,558,477

1,074,648
2,715,012

Other
Allowance for doubtful accounts

273,534(6,072)290,018(6,072)

Total investments and other assets

3,628,859

4,182,914

6,922,027

8,048,578

13,940,332

19,045,606

Total non-current assets
Total assets3

(Thousands of yen)
As of February 28, 2021

As of February 28, 2022

Liabilities
Current liabilities
Accounts payable - other

1,149,166

1,176,548

Income taxes payable
Advances received

422,847
1,701,720

737,696
1,961,988

Provision for sales returns
Provision for bonuses

2,370
265,2022,405
289,817

Provision for loss on liquidation of subsidiaries andassociates

40,529

1,593

Asset retirement obligations
Other

12,565
1,005,995

9,341
1,266,910

Total current liabilities

4,600,399

5,446,301

3,895

1,678

1,681,000
1,073,012

1,912,901
1,162,432

Non-current liabilities
Lease obligations
Retirement benefit liability
Asset retirement obligations
Deferred tax liabilities

6,783

8,599

2,764,692

3,085,611

7,365,091

8,531,913

Share capital
Capital surplus

2,890,415
1,105,307

2,890,415
2,616,453

Retained earnings
Treasury shares

4,323,111(1,730,384)

5,379,715(391,760)

Total shareholders' equity

6,588,450

10,494,824

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

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

13,3003,087

Foreign currency translation adjustment
Remeasurements of defined benefit plans(401)(94,780)(1,602)(65,727)

Total accumulated other comprehensive income(81,881)(64,242)

68,671–83,1110

6,575,240

10,513,693

13,940,332

19,045,606

Share acquisition rights
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 28, 2021

Fiscal year ended
February 28, 2022

Net sales

25,201,586

30,008,875

Cost of sales

19,096,483

21,549,763

Gross profit

6,105,102

8,459,111

Selling, general and administrative expenses

5,094,502

5,428,851

Operating profit

1,010,599

3,030,260

Non-operating income
Interest income

2126

Dividend income
Foreign exchange gains

0
2,051

3,915
1,493

Gain on forfeiture of unclaimed dividends
Compensation income

2,891
–

3,553
8,239

Subsidy income
Recoveries of written off receivables

214,674
2,239

32,873
2,311

Miscellaneous income
Other

1,349
13,6686,324
10,607

Total non-operating income

236,896

69,345

2,116

1,906

Share issuance costs
Amortization of organization expenses

30,100131

43,192–

Amortization of business commencement expenses
Commission expenses

20,541
1,470–
–

730

5,793

Non-operating expenses
Interest expenses

Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Reversal of provision for loss on liquidation of subsidiaries

55,09150,891

1,192,404

3,048,713

and associates
Compensation income

–

7,850

25,66841,839Gain on extinguishment of debt
Other

–
3,769

30,714–

Total extraordinary income

29,43780,404

11,935

14,645

Impairment losses
Relocation expenses

12,059
727

2,008
3,618

Provision for loss on liquidation of subsidiaries and associates
Other

40,529––1,107

Total extraordinary losses

65,252

21,379Profit before income taxes

1,156,589

3,107,738

Income taxes - current
Income taxes - deferred

665,332(24,678)

1,076,994(400,736)

Total income taxes

640,654676,257

Profit515,935

2,431,480

Extraordinary losses
Loss on retirement of non-current assets

Profit (loss) attributable to non-controlling interests(39,298)

0Profit attributable to owners of parent

555,234

2,431,4805

Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

February 28, 2021

February 28, 2022

515,935

2,431,480

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

13,300(602)(10,213)(1,201)Remeasurements of defined benefit plans, net of tax

33,10329,05245,801

17,638Comprehensive income

Total other comprehensive income

561,7362,449,119

Comprehensive income attributable toComprehensive income attributable to owners of parent

561,7362,449,119–0Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended February 28, 2021
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,890,415

Retained earnings

822,859

Treasury shares

4,208,207(1,724,062)

Total shareholders'equity
6,197,419

Changes during period
Profit attributable to ownersof parent

555,234

555,234

Dividends of surplus(440,329)(440,329)

Purchase of treasury shares
Disposal of treasury shares

282,448(735,838)(735,838)

729,516

1,011,964

Net changes in items otherthan shareholders' equity–

Total changes during periodBalance at end of period–

282,448

114,904(6,321)

391,030

2,890,415

1,105,307

4,323,111(1,730,384)

6,588,450

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income–201(127,884)(127,682)

Net changes in items otherthan shareholders' equity

13,300(602)

33,10345,801

Total changes during period

13,300(602)

33,10345,801

Balance at end of period

13,300(401)(94,780)(81,881)

Balance at beginning of period
Changes during period
Profit attributable to ownersof parent
Dividends of surplus
Purchase of treasury shares
Disposal of treasury shares

Balance at beginning of period

Share acquisitionrightsNon-controllinginterests

Total net assets

48,36439,2986,157,400

Changes during period
Profit attributable to ownersof parent

555,234

Dividends of surplus(440,329)

Purchase of treasury shares(735,838)

Disposal of treasury shares

1,011,964

Net changes in items otherthan shareholders' equity

20,307(39,298)

Total changes during period

20,307(39,298)

417,840

Balance at end of period

68,671–

6,575,240

26,8097Fiscal year ended February 28, 2022
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,890,415

Retained earnings

1,105,307

Treasury shares

4,323,111(1,730,384)

Total shareholders'equity
6,588,450

Changes during period
Profit attributable to ownersof parent

2,431,480

Dividends of surplus(29,354)

2,431,480(1,374,876)(1,404,231)

Purchase of treasury shares
Disposal of treasury shares1,540,500(375)(375)

1,339,000

2,879,500

Net changes in items otherthan shareholders' equity–

Total changes during period
Balance at end of period–

1,511,145

1,056,604

1,338,624

3,906,374

2,890,415

2,616,453

5,379,715(391,760)

10,494,824

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income13,300(401)(94,780)(81,881)

Net changes in items otherthan shareholders' equity(10,213)(1,201)

29,052

17,638

Total changes during period(10,213)(1,201)

29,052

17,6383,087(1,602)(65,727)(64,242)

Balance at beginning of period
Changes during period
Profit attributable to ownersof parent
Dividends of surplus
Purchase of treasury shares
Disposal of treasury shares

Balance at end of period

Balance at beginning of period

Share acquisitionrightsNon-controllinginterests

Total net assets

68,671–

6,575,240

Changes during period
Profit attributable to ownersof parent

2,431,480

Dividends of surplus(1,404,231)

Purchase of treasury shares(375)

Disposal of treasury shares

2,879,500

Net changes in items otherthan shareholders' equity

14,439032,078

Total changes during period

14,4390

3,938,452

Balance at end of period

83,1110

10,513,693

8

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

Fiscal year ended

February 28, 2021

February 28, 2022

Cash flows from operating activities
Profit before income taxes

1,156,589

3,107,738

Depreciation
Amortization of deferred assets

318,732
38,153

378,781–

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses(4,339)20,716(2,017)
24,614

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

181,138

231,901

33,10329,052

40,529(38,936)plans
Increase (decrease) in provision for loss on liquidation ofsubsidiaries and associates
Increase (decrease) in other provisions
Interest and dividend income
Interest expenses
Share issuance costs
Subsidy income
Loss on retirement of property, plant and equipment
Impairment lossesDecrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in accounts payable - other
Increase (decrease) in advances received

(637)

35

(21)
2,116

(3,941)
1,906

30,100(214,674)

43,192(32,873)

11,935
12,05914,6452,008(1,320,673)(24,098)

125,281(16,978)

84,585150,155(55,861)
260,267

Other, net(63,902)259,660

Subtotal

451,568

4,328,477

Interest and dividends received

21

3,941

Interest paid
Income taxes paid

(2,116)(805,881)(1,906)(793,664)

Income taxes refund
Subsidies received

105,352
214,674

37,67232,873

Net cash provided by (used in) operating activities(36,379)

3,607,393

Cash flows from investing activities
Purchase of property, plant and equipment(263,794)(695,823)

Purchase of intangible assets
Purchase of investment securities(101,714)(104,856)(67,739)–

Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits(174,521)
33,052(193,534)
33,377

Other, net(43,712)(87,640)

Net cash provided by (used in) investing activities(655,546)(1,011,360)

9

(Thousands of yen)
Fiscal year ended

Fiscal year ended

February 28, 2021

February 28, 2022

Cash flows from financing activities
Proceeds from short-term borrowings

4,000,000

2,300,000

Repayments of short-term borrowings
Dividends paid

(4,000,000)(447,164)(2,300,000)(1,399,743)

Proceeds from exercise of employee share options
Purchase of treasury shares

32(737,325)–(375)

Proceeds from disposal of treasury shares
Proceeds from issuance of share acquisition rights

969,944
32,2102,836,30714,439

Net cash provided by (used in) financing activities(182,302)

1,450,628

784966

Net increase (decrease) in cash and cash equivalents(873,444)

4,047,627

Cash and cash equivalents at beginning of period

4,837,138

3,963,694

Cash and cash equivalents at end of period

3,963,694

8,011,322

Effect of exchange rate change on cash and cash equivalents

10