Rheon Automatic Machinery : Summary of Financial Results for the third quarter 2022

Rheon Automatic Machinery co.,ltd.

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Nine Months Ended December 31, 2021

[Japanese GAAP]

March 11, 2022

Company name: RHEON AUTOMATIC MACHINERY CO., LTD.

Stock exchange listing: Tokyo
Code number: 6272
URL: https://www.rheon.com
Representative: Mikio Kobayashi	President & C.E.O.
Contact: Tadao Fukuda	Managing Operating Officer
Phone: [phone]

Scheduled date of filing quarterly securities report: March 14, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: No

Schedule of quarterly financial results briefing session: No

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2021 (April 01, 2021 to December 31, 2021)

(1) Consolidated Operating Results					(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit	Ordinary profit		Profit attributable to
				owners of parent
Nine months ended	Million yen	%		Million yen	%	Million yen	%		Million yen	%
December 31, 2021		19,691	19.5		1,125	14.1		1,302	15.0			1,248	4.0
December 31, 2020		16,481	(18.5)		986	(53.8)		1,132	(48.8)			1,200	(23.1)
(Note) Comprehensive income:	Nine months ended December 31, 2021:	¥		1,456 million	[	34.1%]
		Nine months ended December 31, 2020:	¥		1,086 million	[	(34.0) %]
		Basic earnings	Diluted earnings per
		per share		share
Nine months ended			Yen			Yen
December 31, 2021			46.60			46.49
December 31, 2020			44.79			44.70
(2) Consolidated Financial Position
		Total assets		Net assets	Capital adequacy ratio		Net assets per share
As of			Million yen			Million yen				%				Yen
December 31, 2021			36,085			27,617				76.3				1,027.56
March 31, 2021			34,124			26,632				77.8				991.12
(Reference) Equity: As of	December 31, 2021:	¥	27,543 million
As of	March 31, 2021:	¥	26,560 million

Rheon Automatic Machinery co.,ltd.

2. Dividends

				Annual dividends
	1st	2nd		3rd		Year-end	Total
	quarter-end	quarter-end	quarter-end
	Yen		Yen	Yen		Yen	Yen
Fiscal year ended March 31, 2021	-		7.00	-		10.00	17.00
Fiscal year ending March 31, 2022	-		8.00	-
Fiscal year ending March 31, 2022						-	-
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	Yes

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022(April 01, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share
	Million yen		%	Million yen	%	Million yen		%	Million yen	%	Yen
Full year	26,560		19.2	1,110	(20.9)	1,320		(18.6)	930	(42.2)	34.70
(Note) Revision to the financial results forecast announced most recently:	Yes
* Notes:
(1) Changes in significant subsidiaries during the nine months ended December 31, 2021
(changes in specified subsidiaries resulting in changes in scope of consolidation):	No
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	No

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

December 31, 2021:	28,392,000	shares
March 31, 2021:	28,392,000	shares
2) Total number of treasury shares at the end of the period:
December 31, 2021:	1,587,105	shares
March 31, 2021:	1,593,686	shares

3) Average number of shares during the period:
Nine months ended December 31, 2021:	26,802,255	shares
Nine months ended December 31, 2020:	26,798,533	shares

Rheon Automatic Machinery co.,ltd.

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

			(Thousand yen)
		As of March 31,2021	As of December 31,2021
Assets
	Current assets
	Cash and deposits	7,484,219	9,162,683
	Notes and accounts receivable - trade	2,690,355	2,620,185
	Merchandise and finished goods	4,170,084	4,189,040
	Work in process	975,989	1,751,141
	Raw materials and supplies	328,369	436,640
	Other	1,326,759	1,069,192
	Allowance for doubtful accounts	(14,548)	(18,305)
	Total current assets	16,961,228	19,210,578
	Non-current assets
	Property, plant and equipment
	Buildings and structures	15,017,115	15,305,708
	Accumulated depreciation	(7,737,700)	(8,103,282)
	Buildings and structures, net	7,279,414	7,202,425
	Machinery, equipment and vehicles	7,931,499	8,150,855
	Accumulated depreciation	(6,380,314)	(6,742,704)
	Machinery, equipment and vehicles, net	1,551,185	1,408,151
	Tools, furniture and fixtures	1,924,816	1,948,668
	Accumulated depreciation	(1,728,089)	(1,788,402)
	Tools, furniture and fixtures, net	196,726	160,265
	Land	4,093,968	4,099,764
	Leased assets	45,286	45,286
	Accumulated depreciation	(42,045)	(43,914)
	Leased assets, net	3,241	1,372
	Construction in progress	35,058	222,713
	Total property, plant and equipment	13,159,594	13,094,692
	Intangible assets	1,463,960	1,225,753
	Investments and other assets
	Investment securities	976,863	901,820
	Retirement benefit asset	1,407,227	1,451,470
	Other	161,992	205,740
	Allowance for doubtful accounts	(6,036)	(4,060)
	Total investments and other assets	2,540,046	2,554,970
	Total non-current assets	17,163,601	16,875,416
	Total assets	34,124,830	36,085,995

Rheon Automatic Machinery co.,ltd.

(Thousand yen)

			As of March 31,2021	As of December 31,2021
Liabilities
	Current liabilities
		Notes and accounts payable - trade	740,599	1,310,865
		Short-term borrowings	734,006	975,730
		Lease obligations	2,334	835
		Accrued expenses	587,624	519,797
		Income taxes payable	231,165	301,548
		Advances received	1,205,429	1,949,302
		Provision for bonuses	485,486	320,893
		Provision for bonuses for directors (and other	11,600	18,370
		officers)
		Accounts payable - other	959,295	522,842
		Other	121,154	311,556
		Total current liabilities	5,078,696	6,231,743
	Non-current liabilities
		Long-term borrowings	1,406,934	1,450,609
		Lease obligations	1,154	690
		Deferred tax liabilities	573,083	353,482
		Deferred tax liabilities for land revaluation	347,422	347,422
		Asset retirement obligations	36,240	36,260
		Other	48,705	48,406
		Total non-current liabilities	2,413,540	2,236,872
	Total liabilities	7,492,237	8,468,615
Net assets
	Shareholders' equity
		Share capital	7,351,750	7,351,750
		Capital surplus	7,069,407	7,075,427
		Retained earnings	14,591,084	15,357,410
		Treasury shares	(773,996)	(771,088)
		Total shareholders' equity	28,238,245	29,013,498
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	345,996	289,659
		securities
		Revaluation reserve for land	(1,708,996)	(1,708,881)
		Foreign currency translation adjustment	(466,919)	(218,746)
		Remeasurements of defined benefit plans	151,997	168,212
		Total accumulated other comprehensive income	(1,677,921)	(1,469,755)
	Share acquisition rights	72,268	73,636
	Total net assets	26,632,592	27,617,379
Total liabilities and net assets	34,124,830	36,085,995

Rheon Automatic Machinery co.,ltd.

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the nine months)

		(Thousand yen)
	For the nine months	For the nine months
	ended December 31,2020	ended December 31,2021
Net sales	16,481,869	19,691,211
Cost of sales	9,217,331	11,483,059
Gross profit	7,264,537	8,208,152
Selling, general and administrative expenses
Advertising expenses	52,001	92,228
Packing and transportation costs	559,374	1,146,451
Provision of allowance for doubtful accounts	7,106	5,556
Sales commission	331,085	434,066
Salaries and allowances	2,333,329	2,434,690
Provision for bonuses	129,690	183,115
Provision for bonuses for directors (and other officers)	22,500	18,370
Retirement benefit expenses	133,279	114,334
Travel and transportation expenses	192,200	231,255
Depreciation	345,496	403,500
Research and development expenses	404,928	347,030
Other	1,767,003	1,671,831
Total selling, general and administrative expenses	6,277,996	7,082,431
Operating profit	986,541	1,125,721
Non-operating income
Interest income	2,611	2,724
Dividend income	20,200	19,467
Gain on sale of goods	6,901	14,980
Foreign exchange gains	4,107	42,126
Subsidy income	53,988	55,446
Surrender value of insurance policies	-	2,287
Sold power	19,118	18,153
Other	64,160	53,242
Total non-operating income	171,088	208,428
Non-operating expenses
Interest expenses	12,041	10,021
Loss on sale of non-current assets	29	7,321
Sold power expenses	8,366	7,454
Other	4,291	6,456
Total non-operating expenses	24,729	31,254
Ordinary profit	1,132,900	1,302,895
Extraordinary income
Reversal of provision for loss on litigation	7,646	-
Gain on sale of non-current assets	684,706	-
Total extraordinary income	692,352	-
Extraordinary losses
Loss on valuation of investment securities	28,231	-
Head office relocation expenses	101,523	-
Total extraordinary losses	129,755	-
Profit before income taxes	1,695,498	1,302,895
Income taxes - current	159,787	294,930
Income taxes - deferred	335,305	(240,897)
Total income taxes	495,092	54,032
Profit	1,200,405	1,248,863