Riso Kagaku : Consolidated Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2022【PDF：621KB】

Translation

January 31, 2022

Consolidated Financial Results

for the Nine Months of the Fiscal Year Ending March 31, 2022

Company name:	RISO KAGAKU CORPORATION
Listing:	First Section of the Tokyo Stock Exchange
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 to file Quarterly Report:	February 8, 2022
Scheduled date of dividend payment commencement:	-
Preparation of supplementary information on quarterly business results:	None
Holding of briefing on quarterly business results:	None

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

1. Consolidated performance for the Nine months of the fiscal year ending March 31, 2022 (from April 1, 2021 to December 31, 2021)

(1) Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
	Net sales		Operating income	Ordinary income	Profit attributable to
		owners of parent
Nine months ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
December 31, 2021	48,920		3.0	2,344	-	2,629	-	2,063	－
December 31, 2020	47,478		(17.6)	(47)	-	214	(87.8)	(215)	－
Note: Comprehensive Income
Nine months ended December 31, 2021:	2,386 million yen / － %
Nine months ended December 31, 2020:	134 million yen / (86.0) %
	Net income per share	Diluted net income per
	share
Nine months ended			Yen		Yen
December 31, 2022			60.50		-
December 31, 2021			(6.20)		-

(Note) The Company began applying the accounting standard for revenue recognition (ASBJ Statement No. 29 of March 31, 2020, "Accounting Standard for Revenue Recognition") at the start of the three months ended June 30, 2021, and amounts for the third quarter of the fiscal year ending March 31, 2022, are shown after the application of the standard. Furthermore, the application of the standard 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 nine months of the fiscal year ended March 31, 2021, before the application of this standard.

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio
As of	Millions of yen	Millions of yen	%
December 31, 2021	78,687	60,066	76.3
March 31, 2021	81,764	61,069	74.7

Reference: Shareholders' Equity As of December 31, 2021: 60,066 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 of March 31, 2020, "Accounting Standard for Revenue Recognition") at the start of the three months ended June 30, 2021, and amounts for the third quarter of the fiscal year ending March 31, 2022, are shown after the application of the standard. The application of the standard does not affect total assets, net assets, or the equity ratio.

2. Cash dividends

		Cash dividends per share
	First quarter	Second quarter		Third quarter		Fiscal year-end	Total
	Yen	Yen		Yen		Yen	Yen
Fiscal year ended	-	0.00		-		40.00	40.00
March 31, 2021
Fiscal year ending	-	0.00		-
March 31, 2022
Fiscal year ending
March 31, 2022						60.00	60.00
(Forecasts)
(Note) Revisions to the forecasts of cash dividends in the current quarter: Yes

For details on the revision of the dividend forecast, please refer to the "Notice Concerning the Revision of the Dividend Forecast" announced on January 31, 2022.

3. Forecasts for the fiscal year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

(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
Fiscal year ending	68,700	0.4	3,100	122.2	3,300	71.4	2,600	57.4	76.42
March 31, 2022

(Note1)Revisions to the forecasts in the current quarter: None

(Note2) The Company began applying the accounting standard for revenue recognition (ASBJ Statement No. 29 of March 31, 2020, "Accounting Standard for Revenue Recognition") at the start of the three months ended June 30, 2021, and amounts for the fiscal year ending March 31, 2022, are shown after the application of the standard. Furthermore, the application of the standard 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 of the fiscal year ended March 31, 2021, before the application of this standard.

4. Others

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of consolidation): None
2. Adoption of peculiar accounting methods for quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates and restatement
4. 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
5. Number of issued shares (common stock)
6. 1. Total number of issued shares at the end of the period (including treasury stock)

As of December	31, 2021	45,000,000 shares
As of March 31,	2021	45,000,000 shares

b. Number of treasury stock at the end of the period

As of December	31, 2021	11,263,451 shares
As of March 31,	2021	10,292,931 shares

c. Average number of shares during the period (cumulative from the beginning of the fiscal year)

Nine months ended December 31, 2021	34,114,035 shares
Nine months ended December 31, 2020	34,707,113 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. Qualitative Information regarding Consolidated Results for the Nine Months .....................................................	2
(1)	Explanation on consolidated operating results...............................................................................................	2
(2)	Explanation on consolidated financial position .............................................................................................	3
(3)	Explanation on future estimates information pertaining to consolidated earnings forecasts .........................	3
(4)	Explanation on research and development activities .....................................................................................	3
2. Consolidated Quarterly Financial Statements.....................................................................................................	4
(1)	Consolidated quarterly balance sheets ...........................................................................................................	4
(2)	Consolidated quarterly statements of (comprehensive) income ....................................................................	6
(3)	Notes on quarterly consolidated financial statements ....................................................................................	8
	(Notes on premise of going concern) .............................................................................................................	8
	(Notes on significant changes in the amount of shareholders' equity) ..........................................................	8
	(Changes in accounting policies) ...................................................................................................................	8
	(Additional information)................................................................................................................................	8
	(Segment information) ...................................................................................................................................	9

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1. Qualitative Information regarding Consolidated Results for the Nine Months

(1) Explanation on consolidated operating results

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 third quarter, overseas sales increased year on year, mainly in the inkjet business, but domestic sales were affected by the new coronavirus infection (COVID-19), and overall sales decreased year on year. Sales for the current consolidated nine months period increased due to the impact of the depreciation of the yen at the exchange rate. In addition, profits increased due to the impact of the depreciation of the yen at the exchange rate and efforts to curb selling, general and administrative expenses.

Net sales were 48,920 million yen (up 3.0% year on year), operating income was 2,344 million yen (compared to operating loss of 47 million yen in the same period of the previous fiscal year), and ordinary income was 2,629 million yen (compared to ordinary income of 214 million yen in the same period of the previous fiscal year). Profit attributable to owners of parent was 2,063 million yen (compared to loss attributable to owners of parent of 215 million yen in the same period of the previous fiscal year).

The average exchange rates during the current consolidated nine months period were 111.10 yen (a 4.99 yen depreciation of the yen year on year) for the US dollar and 130.62 yen (a 8.24 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 in the printing equipment business were 47,803 million yen (up 2.8% year on year), and segment profit was 1,859 million yen (compared to segment loss of 455 million yen in the same period of the previous fiscal year).

In Japan, sales in the inkjet business exceeded the same period of the previous year, however, digital duplicating business fell below the same period of the previous year. In overseas, sales in the inkjet business and digital duplicating business exceeded the same period of the previous year.

Net sales in Japan were 24,796 million yen (down 3.0% year on year), in the Americas were 2,830 million yen (up 34.4% year on year), in Europe were 10,458 million yen (up 27.7% year on year), and in Asia were 9,717 million yen (down 8.6% 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 820 million yen (up 10.5% year on year), and segment profit was 615 million yen (up 23.3% 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 296 million yen (up 18.7% year on year), and segment loss was 130 million yen (compared to segment loss of 91 million yen in the same period of the previous fiscal year).

The Company began applying the accounting standard for revenue recognition (ASBJ Statement No. 29 of March 31, 2020, "Accounting Standard for Revenue Recognition") at the start of the three months ended June 30, 2021; as a result, net sales for that nine-month period were reduced by 352 million yen, cost of sales was reduced by 84 million yen, and selling, general and administrative expenses were reduced by 267 million yen. There was no impact at any profit level below operating income. For details, refer to "2. Consolidated Quarterly Financial Statements (3) Notes on quarterly consolidated financial statements (changes in accounting policies)."

In the consolidated fiscal year under review, changes to the reportable segments were implemented. Details are provided on p.8.

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