Riso Kagaku : Consolidated Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2023

Translation

January 31, 2023

Consolidated Financial Results

for the Nine Months of the Fiscal Year Ending 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 to file Quarterly Report:	February 14, 2023
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, 2023 (from April 1, 2022 to December 31, 2022)

(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, 2022	52,942	8.2	3,626	54.7	3,771	43.4	2,836	37.4
December 31, 2021	48,920	3.0	2,344	-	2,629	-	2,063	-
Note: Comprehensive Income
Nine months ended December 31, 2022: 3,530 million yen / 48.0 %
Nine months ended December 31, 2021: 2,386 million yen / － %
	Net income per share	Diluted net income per
	share
Nine months ended		Yen		Yen
December 31, 2022		84.38		-
December 31, 2021		60.50		-

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio
As of	Millions of yen	Millions of yen	%
December 31, 2022	82,830	62,629	75.6
March 31, 2022	81,829	62,971	77.0
Reference: Shareholders' Equity	As of December 31, 2022: 62,629 million yen	As of March 31, 2022: 62,971 million yen

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	-	100.00	100.00
March 31, 2022
Fiscal year ending	-	0.00	-
March 31, 2023
Fiscal year ending
March 31, 2023				100.00	100.00
(Forecasts)

(Note) Revisions to the forecasts of cash dividends in the current quarter: Yes

Please refer to the "Notification of Revisions to Dividend Forecasts" released today (January 31, 2023) for the revision of the dividend forecast.

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
Fiscal year ending	73,500	6.0	5,100	22.5	5,300	14.1	3,800	6.2	113.12
March 31, 2023

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

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

1. Changes due to revisions to accounting standards and other regulations: None
2. Changes due to other reasons: None
3. Changes in accounting estimates: None
4. Restatement: None

1. Number of issued shares (common stock)

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

As of December 31, 2022	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 December 31, 2022	6,475,304 shares
As of March 31, 2022	6,263,511 shares

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

Nine months ended December 31, 2022	33,614,126 shares
Nine months ended December 31, 2021	34,114,035 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
	(Additional information)	8
	(Segment information)	9
	(Subsequent event)	10

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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 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".

Both net sales and operating income grew in the nine months of the fiscal year ending March 31, 2023, compared with the same period of the previous year.

Net sales were 52,942 million yen (up 8.2% year on year), operating income was 3,626 million yen (up 54.7% year on year), and ordinary income was 3,771 million yen (up 43.4% year on year), profit attributable to owners of parent was 2,836 million yen (up 37.4% year on year).

The average exchange rates during the current consolidated nine months period were 136.51 yen (a 25.41 yen depreciation of the yen year on year) for the US dollar and 140.59 yen (a 9.97 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, both net sales and operating income grew in the nine months of the fiscal year ending March 31, 2023, compared with the same period of the previous year partly due to the

effects of yen depreciation in exchange rates. Net sales in the printing equipment business were 51,709 million yen (up 8.2% year on year), and segment profit was 3,144 million yen (up 69.1% year on year).

In Japan, sales in the inkjet business exceeded the same period of the previous year, and sales in the digital duplicating business decline the same period of the previous year. Overseas, sales for both the inkjet business and the digital duplicating business exceeded the same period of the previous year. Net sales in Japan were 24,846 million yen (up 0.2% year on year), in the Americas were 4,115 million yen (up 45.4% year on year), in Europe were 11,728 million yen (up 12.1% year on year), and in Asia were 11,018 million yen (up 13.4% 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 821 million yen (up 0.1% year on year), and segment profit was 599 million yen (down 2.7% 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 410 million yen (up 38.6% year on year), and segment loss was 116 million yen (compared to segment loss of 130 million yen in the same period of the previous fiscal year).

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