Riken Technos : 2020 Consolidated financial statements

Note: This is an excerpt translation of the "Shihanki-Houkokusho" for the convenience of overseas stakeholders. In cases where any differences occur between the English version and the original Japanese version, the Japanese version shall prevail. RIKEN TECHNOS CORPORATION assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

Quarterly Consolidated Financial Statements

(Pursuant to Article 24-4-7, Paragraph 1 of the Japanese Financial Instruments and Exchange Act)

First quarter of	From April 1, 2021
the 93rd term	to June 30, 2021

RIKEN TECHNOS CORPORATION

2-101,Kanda-Awajicho,Chiyoda-ku, Tokyo, Japan

Quarterly Consolidated Financial Statements

(1) Consolidated Balance Sheets

							(Thousands of yen)
				As of March 31, 2021		As of June 30, 2021
	Assets
	Current assets
	Cash and deposits		21,106,010		21,136,032
	Notes and accounts receivable - trade		21,143,908			21,979,766
	Electronically recorded monetary claims -			2,162,815			2,338,438
	operating
	Merchandise and finished goods	6,227,760		7,345,776
	Work in process		692,289		798,167
	Raw materials and supplies	5,372,437		6,032,225
	Other		948,638		960,720
	Allowance for doubtful accounts	(83,920)		(84,255)
	Total current assets		57,569,939		60,506,872
	Non-current assets
	Property, plant and equipment
	Buildings and structures, net	9,917,194		10,118,928
	Machinery, equipment and vehicles, net		8,390,108		8,400,689
	Land	6,282,764		6,325,470
	Leased assets, net		59,298		52,882
	Construction in progress	231,171		300,928
	Other, net		590,426		592,639
	Total property, plant and equipment	25,470,963		25,791,540
	Intangible assets
	Goodwill	542,063		491,699
	Leased assets		2,919		2,337
	Other	1,808,885		1,904,055
	Total intangible assets		2,353,868		2,398,092
	Investments and other assets
	Investment securities		7,736,267		7,661,594
	Long-term loans receivable	14,269		13,095
	Retirement benefit asset		883,374		901,281
	Deferred tax assets	418,840		419,297
	Other		764,382		743,862
	Allowance for doubtful accounts	(3,045)		(2,320)
	Total investments and other assets		9,814,089		9,736,810
	Total non-current assets	37,638,921		37,926,442
	Total assets		95,208,860		98,433,315

							(Thousands of yen)
			As of March 31, 2021	As of June 30, 2021
	Liabilities
	Current liabilities
	Notes and accounts payable - trade			16,139,497			18,217,551
	Short-term borrowings		*1	6,976,725		*1	7,012,818
	Current portion of long-term borrowings			448,983			471,046
	Lease obligations		20,560			17,080
	Income taxes payable			885,287			544,208
	Provision for bonuses		721,429			348,152
	Provision for bonuses for directors (and other			84,709			22,046
	officers)
	Other		2,803,299			3,627,394
	Total current liabilities			28,080,491			30,260,297
	Non-current liabilities
	Long-term borrowings			2,819,082			2,876,578
	Lease obligations		26,361			24,510
	Deferred tax liabilities			1,545,671			1,568,384
	Provision for share awards for directors (and		140,640			149,056
	other officers)
	Retirement benefit liability			1,052,229			1,053,794
	Asset retirement obligations		332,387			333,583
	Other			135,141			135,046
	Total non-current liabilities		6,051,514			6,140,953
	Total liabilities			34,132,006			36,401,251
	Net assets
	Shareholders' equity
	Share capital		8,514,018			8,514,018
	Capital surplus			6,597,580			6,597,580
	Retained earnings		35,561,518			35,918,275
	Treasury shares			(517,035)			(510,717)
	Total shareholders' equity		50,156,082			50,519,157
	Accumulated other comprehensive income
	Valuation difference on available-for-sale		3,999,879			3,943,071
	securities
	Foreign currency translation adjustment			(460,662)			210,672
	Remeasurements of defined benefit plans		46,021			58,422
	Total accumulated other comprehensive income			3,585,238			4,212,166
	Non-controlling interests		7,335,533			7,300,740
	Total net assets			61,076,854			62,032,063
	Total liabilities and net assets		95,208,860			98,433,315

1. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income Consolidated Statements of Income

				(Thousands of yen)
			Three months ended	Three months ended
			June 30, 2020	June 30, 2021
	Net sales		21,696,594	24,870,043
	Cost of sales		17,894,037	20,278,340
	Gross profit		3,802,556	4,591,702
	Selling, general and administrative expenses		2,889,222	2,934,606
	Operating profit		913,334	1,657,096
	Non-operating income
	Interest income		7,111	5,249
	Dividend income	78,352	93,194
	Foreign exchange gains		－	29,808
	Other	29,035	57,356
	Total non-operating income		114,499	185,609
	Non-operating expenses
	Interest expenses		42,995	26,481
	Foreign exchange losses	15,177	－
	Other		22,973	17,277
	Total non-operating expenses	81,145	43,759
	Ordinary profit		946,687	1,798,945
	Extraordinary income
	Gain on sale of non-current assets		5,009	471
	Gain on sale of investment securities	－	3
	Other		－	1,010
	Total extraordinary income	5,009	1,486
	Extraordinary losses
	Loss on sale of non-current assets	778	－
	Loss on retirement of non-current assets		3,485	763
	Total extraordinary losses	4,263	763
	Profit before income taxes		947,433	1,799,668
	Income taxes	266,941	436,190
	Profit		680,491	1,363,478
	Profit attributable to non-controlling interests	331,868	217,775
	Profit attributable to owners of parent		348,622	1,145,703

Consolidated Statements of Comprehensive Income

						(Thousands of yen)
				Three months ended	Three months ended
				June 30, 2020	June 30, 2021
	Profit			680,491		1,363,478
	Other comprehensive income
	Valuation difference on available-for-sale securities			460,264		(56,851)
	Foreign currency translation adjustment			(1,146,395)		1,046,880
	Remeasurements of defined benefit plans, net of tax			26,352		12,400
	Total other comprehensive income			(659,778)		1,002,429
	Comprehensive income			20,713		2,365,908
	Comprehensive income attributable to
	Comprehensive income attributable to owners of			196,666		1,772,630
	parent
	Comprehensive income attributable to non-			(175,953)		593,277
	controlling interests