Roland DG : Financial Report, Second Quarter of Fiscal Year Ended December 31, 2022

Consolidated Financial Results

for the Six Months Ended June 30, 2022 [Japanese GAAP]

August 5, 2022

Company name: Roland DG Corporation

Securities Code: 6789

URL: www.rolanddg.com

Stock exchange listing: Tokyo Stock Exchange

Representative: Kohei Tanabe, President, Representative Director

Contact: Kazuhiro Ogawa, Managing Executive Officer and Division President of Corporate Division

Phone: [phone]

Scheduled date of filing quarterly securities report: August 5, 2022

Scheduled date of commencing dividend payments: September 9, 2022

Availability of supplementary briefing material on quarterly consolidated financial results: Available

Schedule of quarterly consolidated financial results briefing session: Scheduled (for institutional investors and analysts)

(Figures are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Six Months Ended June 30, 2022 (From January 1, 2022 to June 30, 2022)

(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period)
			Net sales	Operating profit	Ordinary profit		Profit attributable to
				owners of parent
			Millions of	%	Millions of	%	Millions of	%	Millions of	%
			Yen	Yen	Yen	Yen
		Six months ended
		24,085	-	2,689	-	2,874	-	1,934	-
		June 30, 2022
		Six months ended	21,846	38.5	2,958	-	3,059	-	1,580	-
		June 30, 2021
		(Note) Comprehensive	income: Six months ended June 30, 2022: 3,432 million yen [-%]
			Six months ended June 30, 2021: 2,035 million yen [-%]
			Basic earnings per	Diluted earnings per
			share		share
		Six months ended		Yen		Yen
			155.26		-
		June 30, 2022
		Six months ended		127.04		-
		June 30, 2021

(Note) The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. has been adopted from the beginning of the first quarter of the fiscal year ending December 31, 2022. As a result, each figure for the second quarter of the fiscal year ending December 31, 2022 is based on the application of the said standard, etc., and the year-on-year percentage change is not presented.

(2) Consolidated Financial Position

			Total assets	Net assets	Equity ratio	Net assets per share
	As of		Millions of Yen	Millions of Yen	%	Yen
		44,350	31,489	71.0	2,526.48
	June 30, 2022
	As of		42,969	28,797	67.0	2,311.49
	December 31, 2021
	(Reference) Equity:	As of June 30, 2022: 31,489 million yen
		As of December 31, 2021: 28,797 million yen

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2. Dividends

					Annual dividends
		1st quarter end	2nd quarter end		3rd quarter end		Year end	Total
Fiscal year ended		Yen	Yen		Yen		Yen	Yen
	-	40.00		-		60.00	100.00
December 31, 2021
Fiscal year ending		-	50.00
December 31, 2022
Fiscal year ending					-		80.00	130.00
December 31, 2022
(Forecast)

(Note) Revision of dividend forecasts from recently announced figures: No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2022 (From January 1,

2022 to December 31, 2022)			(% indicates changes from the previous corresponding period)
							Profit attributable	Basic
	Net sales		Operating profit	Ordinary profit	earnings
		to owners of parent
							per share
	Millions of	%	Millions of	%	Millions of	%	Millions of	%	Yen
Full year	Yen	15.1	Yen	25.5	Yen	28.2	Yen	47.3	441.34
51,900	7,600	7,800	5,500

(Note) Revision of financial results forecasts from recently announced figures: Yes

* Notes

1. Significant changes of subsidiaries during the six months ended June 30, 2022 (changes in specified subsidiaries resulting in changes in scope of consolidation): Yes
   Newly included: -, Excluded: 1 (Company name: Roland DG Europe Holdings B.V.)
2. Adoption of special accounting methods for preparing Quarterly Consolidated Financial Statement: No
3. Changes in accounting policies, changes in accounting estimates and corrections of errors
4. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Any changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Corrections of errors: No
5. Total number of issued shares (common shares)
6. 1. Total number of issued shares at the end of the period (including treasury shares):

	Six months ended June 30, 2022	12,656,311 shares
2) Total	Fiscal year ended December 31, 2021	12,656,311 shares
number of treasury shares at the end of the	period:
	Six months ended June 30, 2022	192,508 shares
	Fiscal year ended December 31, 2021	198,108 shares
3) Average number of shares during the period:
	Six months ended June 30, 2022	12,460,470 shares
	Six months ended June 30, 2021	12,441,648 shares

(Note) The total number of treasury shares at the end of the period includes shares of the Company held by the Director Stock Benefit Trust and J-ESOP Trust (192,100 shares at the end of the six months ended June 30, 2022 and 197,700 shares at the end of the fiscal year ended December 31, 2021). The number of treasury shares excluded from calculation of the average number of shares during the period includes shares of the Company held by said Trusts (192,100 shares at the end of the six months ended June 30, 2022 and 198,500 shares at the end of the six months ended June 30, 2021).

• These consolidated financial results are outside the scope of audit.
• • 2 -

* Explanation of the proper use of financial results forecast and other notes

Financial results forecast was prepared based on available information at the time of the release of this document, and the Company does not in any way guarantee the achievement of the projections. Actual results may be different from the projections due to various factors. For the notes concerning the use of financial results forecast, please refer to "Explanation of Future Forecast Information such as Consolidated Performance Forecast" on page 10.

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Table of Contents of Appendix
1. Results of Operations	5
(1)	Analysis of Results of Operations	5
(2)	Explanation of Financial Position	10
(3)	Explanation of Future Forecast Information such as Consolidated Performance Forecast	10
2. Consolidated Financial Statements and Primary Notes	11
(1)	Consolidated Balance Sheets	11
(2)	Consolidated Statements of Operations and Comprehensive Income	13
(3)	Notes on Consolidated Financial Statements	16
	(Notes on Going Concern Assumption)	16
	(Notes in Case of Significant Changes in Shareholders' Equity)	16
	(Significant Changes in Subsidiaries During the Six Months Ended June 30, 2022)	16
	(Changes in Accounting Policies)	16
	(Additional Information)	17
	(Significant Subsequent Events)	17

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1. Results of Operations

(1) Analysis of Results of Operations

During the six months ended June 30, 2022 (from January 1, 2022 to June 30, 2022), the world economy showed signs of a recovery trend as the prevention of a further COVID-19 pandemic and the normalization of economic activities progressed. However, with factors such as the intensification of the invasion of Ukraine by Russia, the lockdown policy in China, and soaring energy costs, the outlook has become increasingly uncertain.

Under these circumstances, the group is engaged in a three-yearmedium-term business plan (FY2021 - FY2023) based on the core strategies of transforming the company into a lean organization and transforming the business portfolio. In the first year of the plan, fiscal year 2021, we have mainly been working on structural reforms, and have made great strides towards the transformation into a lean business organization. In terms of business, we have been able to respond to the changing needs of the market caused by the impact of COVID-19. As a result, as we were able to achieve our consolidated operating profit target set for fiscal year 2023, the final year of the medium-term business plan, two-years ahead of schedule, we have redefined our consolidated performance targets. Accordingly, as there are expected growth markets within existing businesses and new areas with growth potential, we have, with the aim of proactively allocating management resources into these areas, revised our strategic categories to Visual Communication, Digital Fabrication, Dental, and Service, Software & Others. By categorizing based on business area rather than by product, we will be able to visualize trends in each area while also working on transitioning from the business model that relies on eco-solvent printer for production of traditional signboards (advertising, etc.). Further, we created new categories to be used for disclosure of sales.

Strategic Categories

Category Name	Application/Main Product	Overview of Strategy
	Category
Visual Communication (VC)	Large format printers and ink for	Although there is a maturing trend
	use with advertising boards and	in the area of advertising boards,
	decorative displays	there has been increasing demand
		for Visual Communication aimed
		at consumers such as,
		interior/exterior decorative
		displays or interior displays in
		stores. Our aim is to maintain and
		expand our customer base while
		expanding the range of suitable
		applications enabled through
		increasing the range of solutions
		available through an increased
		diversity of ink types.
Digital Fabrication (DF)	Product that enables on-demand	A field in which we can bring to
	personalization and customization	life the concept behind our
		company's products: "Wide
		Variety with Low Volumes, Small
		and Compact, On-Demand, Simple
		Operation, and High Quality." We
		will provide printers, cutting
		machines and 3D products to small
		businesses, online vendors, and
		retailers to enable on-demand
		production of a wide variety of
		products at low volumes, including
		for personalized requests or
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