Riso Kagaku : Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

Translation

May 9, 2023

	Consolidated Financial Results
	for the Fiscal Year Ended March 31, 2023
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 27, 2023
Scheduled date of dividend payment commencement:	June 28, 2023
Scheduled date to file Securities Report:	June 28, 2023
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, 2023 (from April 1, 2022 to March 31, 2023)

(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, 2023	74,655	7.7	5,955	43.0		6,201	33.5	4,624	29.2
March 31, 2022	69,313	1.3	4,164	198.5		4,644	141.2	3,578	116.6
Note: Comprehensive income
Fiscal year ended March 31, 2023: 5,498 million yen / 3.9% Fiscal year ended March 31, 2022: 5,291 million yen / 42.5%
	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, 2023	137.72		-		7.3		7.4		8.0
March 31, 2022	105.18		-		5.8		5.7		6.0
Reference: Equity in earnings (losses) of affiliates
Fiscal year ended March 31, 2023: - million yen	Fiscal year ended March 31, 2022: - million yen

(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, 2023	84,773	64,296	75.8	1,924.95
March 31, 2022	81,829	62,971	77.0	1,866.58
Reference: Shareholders' equity	As of March 31, 2023: 64,296 million yen	As of March 31, 2022: 62,971 million yen

(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, 2023		5,644			(742)		(4,443)		19,676
March 31, 2022		5,390			(1,375)		(3,593)		18,834
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		-	100.00	100.00	3,373		95.1	5.5
March 31, 2022
Fiscal year ended	-	0.00		-	120.00	120.00	4,008		87.1	6.3
March 31, 2023
Fiscal year ending
March 31, 2024	-	0.00		-	95.00	95.00			99.2
(Forecast)

3. Forecasts for the fiscal year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

	Net sales
	Millions of
	yen
Six months ending	33,800
September 30, 2023
Fiscal year ending	72,100
March 31, 2024

				(Percentages indicate year-on-year changes.)
	Operating income	Ordinary income	Profit attributable to	Net income
	owners of parent	per share
%	Millions of	%	Millions of	%	Millions of	%	Yen
yen	yen	yen
(3.6)	1,500	(37.3)	1,500	(42.2)	1,300	(35.1)	38.92
(3.4)	4,000	(32.8)	4,100	(33.9)	3,200	(30.8)	95.80

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. 13 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, 2023	40,000,000 shares
As of March 31, 2022	40,000,000 shares
b. Number of treasury stock at the end of the period
As of March 31, 2023	6,598,364 shares
As of March 31, 2022	6,263,511 shares
c. Average number of shares during the period
Fiscal year ended March 31, 2023	33,581,361 shares
Fiscal year ended March 31, 2022	34,020,943 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	4
3. Basic policy on the selection of accounting standards	5
4. Consolidated Financial Statements	6
(1)	Consolidated balance sheets	6
(2)	Consolidated statements of income and comprehensive income	8
(Consolidated statements of income)	8
(Consolidated statements of comprehensive income)	9
(3)	Consolidated statements of changes in net assets	10
(4)	Consolidated statements of cash flows	12
(5)	Notes on consolidated financial statements	13
(Notes on premise of going concern)	13
(Changes in accounting policies)	13
(Segment information)	13
(Subsequent event)	15

1

1. Overview of Operating Results

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

The RISO Group (RISO) formulated the Eighth Medium term Management Plan (RISO Vision 25) with the final fiscal year of the period ending March 31, 2025, and followed its medium term management policy of "1. Expand IJ business 2. Establish a solid customer oriented sales planning structure".

In the fiscal year under review, both sales and income grew year on year.

Net sales were 74,655 million yen (up 7.7% year on year), operating income was 5,955 million yen (up 43.0% year on year), ordinary income was 6,201 million yen (up 33.5% year on year), due to the recording of foreign exchange gains, while profit attributable to owners of parent came to 4,624 million yen (up 29.2% year on year).

The average exchange rates during the current consolidated fiscal year under review were 135.47 yen (a 23.09 yen depreciation of the yen year on year) for the US dollar and 140.97 yen (a 10.41 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.

In the printing equipment business, despite the impact of surging raw material costs on the cost of sales, both sales and income grew year on year, due in part to the depreciation of the yen. Net sales for the printing equipment business were 73,030 million yen (up 7.7% year on year), and segment profit were 5,323 million yen (up 49.5% 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-yeardecline in sales. Furthermore, during the fourth quarter, there was an increase in sales due to factors such as front-loaded demand associated with price revisions. Overseas, sales for both the inkjet business and the digital duplicating business exceeded previous-yearlevels.

Net sales in Japan were 36,958 million yen (up 3.1% year on year), in the Americas were 5,465 million yen (up 34.5% year on year), in Europe were 15,938 million yen (up 10.0% year on year), and in Asia were 14,666 million yen (up 9.2% 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 1,095 million yen (up 0.1% year on year), and segment profit was 796 million yen (up 0.2% 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 528 million yen (up 37.4% year on year), and segment loss was 165 million yen (compared to segment loss of 190 million yen in the previous fiscal year).

2