Riso Kagaku : Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

Translation

May 13, 2022

	Consolidated Financial Results
	for the Fiscal Year Ended March 31, 2022
Company name:	RISO KAGAKU CORPORATION
Listing:	Tokyo Stock Exchange Prime Market
Stock code:	6413
URL:	https://www.riso.co.jp/english/
Representative:	Akira Hayama, President & CEO
Inquiries:	Shouichi Ikejima, Director and General Manager of Corporate Headquarters
	TEL: [phone] (from overseas)

Scheduled date of Regular General Meeting of Shareholders:	June 24, 2022
Scheduled date of dividend payment commencement:	June 27, 2022
Scheduled date to file Securities Report:	June 27, 2022
Preparation of supplementary information on business results:	Yes
Holding of briefing on business results:	Yes (Recorded video of briefing on business
	results scheduled for distribution)

(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated performance for the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)

(1) Consolidated operating results								(Percentages indicate year-on-year changes.)
				Net sales				Operating income	Ordinary income	Profit attributable to
							owners of parent
	Fiscal year ended		Millions of yen	%		Millions of yen	%	Millions of yen	% Millions of yen	%
	March 31, 2022	69,313	1.3	4,164	198.5		4,644	141.2		3,578	116.6
	March 31, 2021		68,434	(12.3)		1,395	(45.2)		1,925	(21.1)		1,651	141.7
Note: Comprehensive income
Fiscal year ended March 31, 2022: 5,291 million yen / 42.5% Fiscal year ended March 31, 2021: 3,713 million yen / -%
				Net income		Diluted net income	Return on equity	Ordinary income to	Operating income to
				per share				per share	total assets ratio	net sales ratio
	Fiscal year ended		Yen				Yen		%		%		%
	March 31, 2022	105.18				-		5.8		5.7		6.0
	March 31, 2021		47.59				-			2.8		2.4		2.0
Reference: Equity in earnings (losses) of affiliates
Fiscal year ended March 31, 2022: - million yen	Fiscal year ended March 31, 2021: - million yen

Note: The Company began applying the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and related guidance from the beginning of the consolidated fiscal year under review. Accordingly, all figures for the fiscal year ended March 31, 2022, are figures after application of the said standard and guidance. Furthermore, the application of the standard and guidance has only a limited impact on net sales, and there is no impact at any profit level below operating income. Calculations for the percentage year-on-year changes are based on consolidated financial results for the fiscal year ended March 31, 2021, before the application of the standard and guidance.

(2) Consolidated financial position

			Total assets		Net assets		Equity ratio		Net assets per share
	As of	Millions of yen		Millions of yen	%		Yen
	March 31, 2022	81,829	62,971	77.0	1,866.58
	March 31, 2021		81,764		61,069		74.7		1,759.56
Reference: Shareholders' equity	As of March 31, 2022: 62,971 million yen		As of March 31, 2021: 61,069 million yen

Note: The Company began applying the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and related guidance from the beginning of the consolidated fiscal year under review. Accordingly, all figures for the fiscal year ended March 31, 2022, are figures after application of the said standard and guidance. The application of the standard and guidance does not affect total assets, net assets, or the equity ratio.

(3) Consolidated cash flows

Net cash provided by

Net cash provided by

Net cash provided by

Cash and cash

(used in) operating

(used in) investing

(used in) financing

equivalents at end of

activities

activities

activities

period

Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2022

5,390

(1,375)

(3,593)

18,834

March 31, 2021

5,628

(2,162)

(1,156)

17,660

2. Cash dividends

Cash dividends per share

Total dividends

Dividend

Net assets-to

First

Second

Third

Fiscal

pay-out ratio

dividend ratio

Total

(annual)

(consolidated)

quarter

quarter

quarter

year-end

(consolidated)

Yen

Yen

Yen

Yen

Yen

Million of yen

%

%

Fiscal year ended

-

0.00

-

40.00

40.00

1,388

84.0

2.3

March 31, 2021

Fiscal year ended

-

0.00

-

100.00

100.00

3,373

95.1

5.5

March 31, 2022

Fiscal year ending

March 31, 2023

-

0.00

-

60.00

60.00

72.3

(Forecast)

Note: Breakdown of dividends for fiscal year ended March 31, 2022

Ordinary dividend 60.00yen Dividend to commemorate 75th anniversary of the founding of the Company 40.00yen

3. Forecasts for the fiscal year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

(Percentages indicate year-on-year changes.)

			Net sales			Operating income		Ordinary income		Profit attributable to		Net income
							owners of parent		per share
			Millions of	%		Millions of	%		Millions of	%		Millions of	%		Yen
			yen		yen		yen		yen
	Six months ending	33,500	3.7	1,500	7.5	1,500	(2.9)	1,100	(15.9)	32.61
	September 30, 2022
	Fiscal year ending		70,800	2.1		3,800	(8.8)		3,900	(16.0)		2,800	(21.8)		83.00
	March 31, 2023

4. Others

1. Changes in significant subsidiaries during the period (Changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Changes in accounting policies / changes in accounting estimates / restatement
3. 1. Changes due to revisions to accounting standards and other regulations: Yes
   2. Changes due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None

Note: For details, refer to "4. Consolidated Financial Statements and Notes (5) Notes regarding the consolidated financial statements (Changes in accounting policies)" on p. 14 of the attached materials.

1. Number of issued shares (common stock)
   a. Total number of issued shares at the end of the period (including treasury stock)

	As of March 31, 2022	40,000,000 shares
	As of March 31, 2021	45,000,000 shares
b. Number of treasury stock at the end of the period
	As of March 31, 2022	6,263,511 shares
	As of March 31, 2021	10,292,931 shares
c. Average number of shares during the period
	Fiscal year ended March 31, 2022	34,020,943 shares
	Fiscal year ended March 31, 2021	34,707,102 shares

• These financial results are outside the scope of audit by a certified public accountant or an audit firm.
• Proper use of the forecasts, and other special matters
  The forward-looking statements, including forecasts, contained in these materials are based on information currently available to the Company. These statements do not purport that the Company pledges to achieve such performance. Actual business may differ substantially from the forecasts due to various factors in the future.

Attached Materials

Index
1. Overview of Operating Results .............................................................................................................................	..2
(1)	Overview of Operating Results for the Fiscal Year under Review ....................................................................	2
(2)	Overview of financial position for the Fiscal Year under Review .....................................................................	3
(3)	Overview of cash flows for the Fiscal Year under Review ..............................................................................	3
(4)	Business outlook for the next fiscal year ...........................................................................................................	3
(5)	Basic Policy for Earning Distribution and Current and Next Fiscal Year Dividends ........................................	4
(6)	Explanation on research and development activities .........................................................................................	4
2. Management Policies ..............................................................................................................................................	4
(1)	Basic Managerial Policies and Medium to Long-Term Business Strategy........................................................	4
(2)	Issues to Address................................................................................................................................................	5
3. Basic policy on the selection of accounting standards ............................................................................................	6
4. Consolidated Financial Statements..........................................................................................................................	7
(1)	Consolidated balance sheets ..............................................................................................................................	7
(2)	Consolidated statements of (comprehensive) income........................................................................................	9
(Consolidated statements of income) ..................................................................................................................	9
(Consolidated statements of comprehensive income) .......................................................................................	10
(3)	Consolidated statements of changes in net assets ............................................................................................	11
(4)	Consolidated statements of cash flows ............................................................................................................	13
(5)	Notes on consolidated financial statements .....................................................................................................	14
(Notes on premise of going concern) ................................................................................................................	14
(Changes in accounting policies).......................................................................................................................	14
(Segment information) ......................................................................................................................................	14
(Subsequent event) ............................................................................................................................................	16

1

1. Overview of Operating Results

(1) Overview of Operating Results for the Fiscal Year under Review

The RISO Group (RISO) formulated the Seventh Medium term Management Plan (RISO Vision 22) with the final fiscal year of the period ending March 31, 2022, and followed its medium term management policy of "Enhance profitability by expanding the inkjet business and improving efficiency on a Group wide basis".

In the fiscal year under review, net sales grew year on year due to the effects of yen depreciation, while operating income rose for the same reason, and as a result of efforts to reduce selling, general and administrative expenses. Net sales were 69,313 million yen (up 1.3% year on year), operating income was 4,164 million yen (up 198.5%), ordinary income was 4,644 million yen (up 141.2%), due to the recording of foreign exchange gains, while profit attributable to owners of parent came to 3,578 million yen (up 116.6%).

The average exchange rates during the current consolidated fiscal year under review were 112.38 yen (a 6.32 yen depreciation of the yen year on year) for the US dollar and 130.56 yen (a 6.86 yen depreciation of the yen year on year) for the euro.

Results by segment are as follows:

a. Printing equipment business

RISO, as part of its printing equipment business, engages in the inkjet business, principally with its ORPHIS high-speed color printers, as well as the digital duplicating business, consisting mainly of its RISOGRAPH digital duplicators.

Net sales for the printing equipment business were 67,834 million yen (up 1.1% year on year), and segment profit were 3,560 million yen (up 335.6% year on year).

In Japan, sales in the inkjet business were more or less unchanged from the previous fiscal year, and the digital duplicating business saw a year-on-year decline in sales. Overseas, sales for both the inkjet business and the digital duplicating business exceeded previous-year levels.

Net sales in Japan were 35,849 million yen (down 4.7% year on year), in the Americas were 4,063 million yen (up 40.2% year on year), in Europe were 14,495 million yen (up 23.3% year on year), and in Asia were 13,425 million yen (down 9.3% year on year).

b. Real estate business

The Group's real estate business consists of the leasing of buildings. Net sales in the real estate business were 1,094 million yen (up 7.9% year on year), and segment profit was 794 million yen (up 13.2% year on year).

c. Others

RISO operates a print creating business and a digital communication business as well as printing equipment business and real estate business. Net sales in the others were 384 million yen (up 8.3% year on year), and segment loss was 190 million yen (compared to segment loss of 124 million yen in the previous fiscal year).

As a result of applying the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and related guidance from the beginning of the consolidated fiscal year under review, net sales in the consolidated fiscal year under review decreased by 478 million yen, cost of sales decreased by 112 million yen, and selling, general and administrative expenses decreased by 366 million yen. There is no impact at any profit level below operating income.

For details, refer to "4. Consolidated Financial Statements and Notes (5) Notes regarding the consolidated financial statements (Changes in accounting policies)."

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