Riso Kagaku : Consolidated Financial Results for the Three Months of FY2024

Translation

August 1, 2023

Consolidated Financial Results

for the Three Months of the Fiscal Year Ending March 31, 2024

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:	August 8, 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 three months of the fiscal year ending March 31, 2024 (from April 1, 2023 to June 30, 2023)

(1) Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
	Net sales		Operating income	Ordinary income	Profit attributable to
		owners of parent
Three months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
June 30, 2023	16,787	(2.7)	902	(33.5)	1,263	(24.2)	1,048	(11.0)
June 30, 2022	17,258	3.6	1,356	32.2	1,666	44.5	1,177	15.9
Note: Comprehensive Income
Three months ended June 30, 2023: 2,178 million yen / (13.7) %
Three months ended June 30, 2022: 2,524 million yen / 142.4 %
	Net income per share	Diluted net income per
	share
Three months ended		Yen		Yen
June 30, 2023		31.38		-
June 30, 2022		34.94		-

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio
As of	Millions of yen	Mi2lions of yen	%
June 30, 2023	81,145	62,466	77.0
March 31, 2023	84,773	64,296	75.8
Reference: Shareholders' Equity	As of June 30, 2023:	62,466 million yen	As of March 31, 2023: 64,296 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	-	120.00	120.00
March 31, 2023
Fiscal year ending	-
March 31, 2024
Fiscal year ending
March 31, 2024		0.00	-	95.00	95.00
(Forecasts)

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

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

						(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	33,800	(3.6)	1,500	(37.3)	1,500	(42.2)	1,300	(35.1)	38.92
September 30, 2023
Fiscal year ending	72,100	(3.4)	4,000	(32.8)	4,100	(33.9)	3,200	(30.8)	95.80
March 31, 2024

(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 June 30, 2023	36,000,000 shares
As of March 31, 2023	40,000,000 shares
b. Number of treasury stock at the end of the period
As of June 30, 2023	2,598,398 shares
As of March 31, 2023	6,598,364 shares

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

Three months ended June 30, 2023	33,401,617 shares
Three months ended June 30, 2022	33,714,490 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 Three Months	2
(1)	Explanation on consolidated operating results	2
(2)	Explanation on consolidated financial position	2
(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 Three 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 sales and income decreased in the first quarter of the fiscal year under review compared with the same period of the previous year.

Net sales were 16,787 million yen (down 2.7% year on year), operating income was 902 million yen (down 33.5% year on year), and ordinary income was 1,263 million yen (down 24.2% year on year), due to the recording of a 432 million yen gain on revision of the retirement benefit plan under extraordinary income, profit attributable to owners of parent was 1,048 million yen (down 11.0% year on year).

The average exchange rates during the current consolidated three months period were 137.37 yen (a 7.80 yen depreciation of the yen year on year) for the US dollar and 149.47 yen (a 11.35 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 effects of the depreciation of the yen during the first three months of the fiscal year ending March 31, 2024, both sales and income decreased compared to the same period in the previous year, with net sales of 16,359 million yen (down 3.1% year on year), and segment profit of 753 million yen (down 38.1% year on year). This was primarily due to a surge in demand at the end of the previous fiscal year, prior to price revisions in Japan in April 2023, and its subsequent drop-off leading to a decline in sales.

In Japan, sales for both the inkjet business and the digital duplicating business decline the same period of the previous year. Overseas, 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. Net sales in Japan were 7,822 million yen (down 5.1% year on year), in the Americas were 1,300 million yen (up 3.3% year on year), in Europe were 4,100 million yen (up 5.9% year on year), and in Asia were 3,136 million yen (down 10.3% 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 267 million yen (down 2.3% year on year), and segment profit was 193 million yen (down 5.1% 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 160 million yen (up 49.2% year on year), and segment loss was 44 million yen (compared to segment loss of 64 million yen in the same period of the previous fiscal year).

(2) Explanation on consolidated financial position

The financial position of RISO at the end of the current quarter compared to the end of the previous fiscal year is as follows.

Total assets fell 3,628 million yen to 81,145 million yen, while net assets fell 1,829 million yen to 62,466 million

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