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, 2023
(Based on Japanese GAAP)
April 10, 2023
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 26, 2023
May 29, 2023

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

May 11, 2023
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, 2023 (from March 1, 2022 to February 28, 2023)(1) Consolidated operating results
Net salesYear ended February 28, 2023
Year ended February 28, 2022

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen%
2,401(20.8)
2,442(19.9)
1,492(38.6)
3,030 199.8
3,048 155.7
2,431 337.9

Millions of yen
31,48830,008%4.9
19.1

Earnings per share

Diluted earnings pershare

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
9.65
15.2
13.1
7.616.22
28.7
18.5
10.1

Yen
9.67
16.25

Year ended February 28, 2023
Year ended February 28, 2022
(2) Consolidated financial position

Total assets
As of February 28, 2023
As of February 28, 2022

Net assets

Equity ratio

Millions of yen
18,252
19,045

Millions of yen
9,351
10,513

Cash flows fromoperating activities
Millions of yen
2,779
3,607

Cash flows frominvesting activities
Millions of yen(1,016)(1,011)

Net assets per share%
50.7
54.8

Yen
59.96
67.59

(3) Consolidated cash flows

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

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(2,465)7,308
1,4508,011

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

Year ended February 28, 2022
Year ended February 28, 2023
Year ending February 29, 2024
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

TotalYenYenYenYenYen

Millions of yen%%0.00
0.00

0.00
0.00

0.00
0.00

16.00
16.00

16.00
16.00

2,469
2,469

98.5
165.5

28.7
25.1

–––––

1

–

3. Forecast of consolidated financial results for the year ending February 29, 2024 (from March 1, 2023 to February 29, 2024)
Net sales
Full year

Millions of yen
34,000Percentages 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
8.0
3,000
24.9
3,000
22.8
2,060
38.0
13.35

4. Notes(1) Changes in significant subsidiaries during the year ended February 28, 2023
(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:

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, 2023

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 February 28, 2023

1,845,800 shares As of February 28, 2022

1,897,030 shares

154,331,116 shares Year ended February 28, 2022

149,665,379 shares

Average number of shares during the period
Year ended February 28, 2023

2

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 28, 2022As of February 28, 2023

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

8,011,322
2,328,853

7,308,410
1,670,857

152,476
513,945

153,019535,365(9,571)(7,490)10,997,027

9,660,161

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

3,478,318

3,785,962

Accumulated depreciation(1,532,583)(1,693,450)

Buildings and structures, net

1,945,734

2,092,512

2,093,144

2,228,397

Tools, furniture and fixtures
Accumulated depreciation(787,981)(882,061)

Tools, furniture and fixtures, net

1,305,162

1,346,336

Land

417,963

417,963

Other
Accumulated depreciation

13,668(13,668)

23,541(3,656)0

19,885

3,668,860

3,876,697

Other

196,804

244,900

Total intangible assets

196,804

244,900

Investment securities
Deferred tax assets

109,306
1,074,648

113,169
1,179,252

Leasehold and guarantee deposits
Other

2,715,012
290,018

2,881,535
302,369

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

Total investments and other assets4,182,914

4,470,255

Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Total non-current assets
Total assets

3

8,048,578

8,591,853

19,045,606

18,252,015

(Thousands of yen)
As of February 28, 2022

As of February 28, 2023

Liabilities
Current liabilities
Accounts payable - other

1,176,548

1,171,630

Income taxes payable
Advances received

737,696
1,961,988

364,127––
2,405

2,414,309–

289,817337,356

1,593

1,296

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

9,341

7,437

Other

1,266,910

1,070,438

Total current liabilities

5,446,301

5,366,595

Lease liabilities
Retirement benefit liability

1,678
1,912,901–
2,320,183

Asset retirement obligations
Deferred tax liabilities

1,162,432
8,599

1,210,185
3,396

Total non-current liabilities

3,085,611

3,533,766

8,531,913

8,900,361

Shareholders' equity
Share capital

2,890,415

2,890,415

Capital surplus
Retained earnings

2,616,453
5,379,715

2,622,691
4,274,941

Treasury shares(391,760)(381,226)

10,494,824

9,406,822

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

3,087(1,602)

5,767
(716)

Remeasurements of defined benefit plans(65,727)(156,595)

Total accumulated other comprehensive income(64,242)(151,544)

Share acquisition rights

83,111

96,375

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

410,513,693

9,351,653

19,045,606

18,252,015

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
February 28, 2022

Fiscal year ended
February 28, 2023

Net sales

30,008,875

31,488,432

Cost of sales

21,549,763

22,980,794

Gross profit

8,459,111

8,507,638

Selling, general and administrative expenses

5,428,851

6,106,269

Operating profit

3,030,260

2,401,369

Non-operating income
Interest income2625

Dividend income
Foreign exchange gains

3,915
1,493

4,176
–

Gain on forfeiture of unclaimed dividends
Compensation income

3,553
8,239

4,859
–

Subsidy income
Recoveries of written off receivables

32,873
2,311

14,209949

Compensation income for damage
Miscellaneous income

–
6,324

5,465
5,570

Other

10,607

8,009

Total non-operating income

69,34543,265

1,906
43,192

29
–

–
–

146
888

5,793

953

Non-operating expenses
Interest expenses
Share issuance costs
Foreign exchange losses
Penalty loss
Other
Total non-operating expenses50,891

2,017

3,048,713

2,442,617–

571

Reversal of provision for loss on liquidation of subsidiaries
and associates

7,850

–

Compensation income
Gain on extinguishment of debt

41,83930,714––

Total extraordinary income

80,404571

14,645

11,622

Impairment losses
Relocation expenses

2,008
3,618

88,441
13,575

Other

1,107

–

Total extraordinary losses

21,379113,639

Profit before income taxes

3,107,738

2,329,549

Income taxes - current

1,076,994

850,151

Income taxes - deferred(400,736)(13,155)

Total income taxes

676,257

836,996

2,431,480

1,492,5520(0)2,431,480

1,492,552

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

Extraordinary losses
Loss on retirement of non-current assets

ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent5

Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

February 28, 2022

February 28, 2023

2,431,480

1,492,552

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(10,213)(1,201)

2,680
885

Remeasurements of defined benefit plans, net of tax

29,052(90,868)

17,638(87,302)

Comprehensive income

Total other comprehensive income

2,449,119

1,405,250

Comprehensive income attributable toComprehensive income attributable to owners of parent

2,449,119

1,405,2500(0)Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended February 28, 2022
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of periodCapital surplus

2,890,415

Retained earnings

1,105,307

Treasury shares

4,323,111

Total shareholders'equity(1,730,384)

6,588,450

Changes during period
Profit attributable to ownersof parentDividends of surplus(29,354)

2,431,480

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

Purchase of treasury shares
Disposal of treasury shares

1,540,500

(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-forsale securities
Balance at beginning of period

13,300Foreigncurrencytranslation
adjustment

Total
accumulatedof defined benefit
otherplanscomprehensive
incomeRemeasurements(401)(94,780)(81,881)

Shareacquisitionrights

68,671

Non-controllinginterests

Total net assets–

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(10,213)(1,201)

29,052

17,63814,4390

32,078

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

29,052

17,63814,4390

3,938,452

3,087(1,602)(65,727)(64,242)

83,1110

10,513,693

Balance at end of period7

Fiscal year ended February 28, 2023
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,890,415

Retained earnings

2,616,453

Cumulative effects ofchanges in accountingpolicies
Restated balance

Treasury shares

5,379,715

Total shareholders'equity(391,760)

10,494,824(128,321)
2,890,415

2,616,453(128,321)

5,251,394(391,760)

10,366,502

Changes during period
Profit attributable to ownersof parent

1,492,552

1,492,552

Dividends of surplus(2,469,004)(2,469,004)

Purchase of treasury shares
Disposal of treasury shares

6,238

(192)

(192)

10,726

16,964

Net changes in items otherthan shareholders' equity–

Total changes during period
Balance at end of period

–

6,238

(976,452)

10,533(959,680)

2,890,415

2,622,691

4,274,941(381,226)

9,406,822

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

3,087

Foreigncurrencytranslation
adjustment

Total
accumulatedof defined benefit
otherplanscomprehensive
incomeRemeasurements(1,602)(65,727)(64,242)

Share
acquisitionrights

83,111

Non-controllinginterests

Total net assets

0

10,513,693

Cumulative effects ofchanges in accounting
policies
Restated balance(128,321)
3,087(1,602)(65,727)(64,242)

83,1110

10,385,371

Changes during period
Profit attributable to ownersof parent

1,492,552

Dividends of surplus(2,469,004)

Purchase of treasury shares(192)

Disposal of treasury shares

16,964

Net changes in items otherthan shareholders' equity

2,680

885

(90,868)(87,302)

13,264(0)(74,037)

Total changes during period

2,680

885

(90,868)(87,302)

13,264(0)(1,033,718)

Balance at end of period

5,767

(716)

(156,595)(151,544)

96,37509,351,653

8Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

February 28, 2022

February 28, 2023

3,107,738

2,329,549

Depreciation
Increase (decrease) in allowance for doubtful accounts

378,781(2,017)432,191(2,080)

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

24,614
231,901

47,539407,281

Increase (decrease) in remeasurements of defined benefit
plans

29,052(90,868)

Increase (decrease) in provision for loss on liquidation ofsubsidiaries and associates(38,936)(296)

Increase (decrease) in other provisions
Interest and dividend income

35(3,941)–(4,202)

Interest expenses
Share issuance costs

1,906
43,19229–

Subsidy income
Compensation for damage income(32,873)–(14,209)(5,465)Gain on sale of non-current assets
Loss on retirement of non-current assets–
14,645(571)
11,622

Impairment losses
Decrease (increase) in trade receivables

2,008
125,281

88,441
657,996

Decrease (increase) in inventories
Increase (decrease) in accounts payable - other(16,978)(55,861)(543)
56,250

Increase (decrease) in advances received
Increase (decrease) in contract liabilities

260,267––
452,321

Other, net

259,660(391,601)

Subtotal

4,328,477

3,973,383

Interest and dividends received

3,941

4,202

Interest paid
Subsidies received(1,906)32,873(29)
14,209–(793,664)

5,465(1,217,858)

Proceeds from compensation for damage
Income taxes paid
Income taxes refund

37,672–

3,607,393

2,779,373

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment(695,823)–(647,707)
571

Purchase of intangible assets
Payments of leasehold and guarantee deposits(67,739)(193,534)(112,004)(225,034)

Proceeds from refund of leasehold and guarantee deposits
Other, net

33,377(87,640)

49,622(82,335)(1,011,360)(1,016,887)

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

Net cash provided by (used in) investing activities

9(Thousands of yen)
Fiscal year ended

Fiscal year ended

February 28, 2022

February 28, 2023

Cash flows from financing activities
Proceeds from short-term borrowings

2,300,000–

Repayments of short-term borrowings
Repayments of lease liabilities(2,300,000)––(2,217)

Dividends paid
Proceeds from exercise of employee share options(1,399,743)–(2,463,638)
51

Purchase of treasury shares
Proceeds from disposal of treasury shares(375)
2,836,307(192)
3

Proceeds from issuance of share acquisition rights

14,439–Net cash provided by (used in) financing activities

1,450,628(2,465,993)

Effect of exchange rate change on cash and cash equivalents966594

Net increase (decrease) in cash and cash equivalents

4,047,627(702,912)

Cash and cash equivalents at beginning of period

3,963,694

8,011,322

Cash and cash equivalents at end of period

8,011,322

7,308,41010