Riken Technos : 2020_3Q_Quarterly 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)

Third quarter of	From April 1, 2020
the 92nd term	to December 31, 2020

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, 2020		As of December 31, 2020
Assets
Current assets
Cash and deposits		18,342,206			19,655,160
Notes and accounts receivable - trade	*2	23,835,492	*2	20,516,488
Electronically recorded monetary claims -	*2	562,670		*2	1,982,070
operating
Merchandise and finished goods		6,474,606			6,360,149
Work in process		788,560			786,530
Raw materials and supplies		4,720,146			4,653,698
Other		1,168,234			1,121,944
Allowance for doubtful accounts			(84,898)			(83,684)
Total current assets			55,807,020			54,992,357
Non-current assets
Property, plant and equipment
Buildings and structures, net		10,106,727			10,068,947
Machinery, equipment and vehicles, net		9,457,101			8,651,333
Land		6,354,579			6,285,035
Leased assets, net		26,913			24,474
Construction in progress		287,737			173,208
Other, net			669,943			611,250
Total property, plant and equipment			26,903,003			25,814,249
Intangible assets
Goodwill		743,518			592,427
Leased assets		5,251			3,502
Other			1,266,508			1,773,444
Total intangible assets			2,015,278			2,369,374
Investments and other assets
Investment securities		5,182,750			7,123,136
Long-term loans receivable		44,218			23,538
Retirement benefit asset		512,807			524,030
Deferred tax assets		508,798			363,247
Other		898,773			842,798
Allowance for doubtful accounts			(3,770)			(3,770)
Total investments and other assets			7,143,578			8,872,981
Total non-current assets			36,061,860			37,056,605
Total assets			91,868,881			92,048,963

(Thousands of yen)

As of March 31, 2020

As of December 31, 2020

Liabilities

Current liabilities

Notes and accounts payable - trade

Short-term borrowings

Current portion of long-term borrowings Lease obligations

Income taxes payable

Provision for bonuses

Provision for bonuses for directors (and other officers)

Other

Total current liabilities

Non-current liabilities

Long-term borrowings

Lease obligations

Deferred tax liabilities

Provision for retirement benefits for directors (and other officers)

Provision for share-based remuneration for directors (and other officers)

Retirement benefit liability

Asset retirement obligations

Other

Total non-current liabilities

Total liabilities

Net assets

Shareholders' equity

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders' equity Accumulated other comprehensive income

Valuation difference on available-for-sale securities

Foreign currency translation adjustment Remeasurements of defined benefit plans

	*2	16,479,773	*2	14,596,767
	*3	7,324,167	*3	7,397,549
		614,308			567,432
		15,252			12,890
		423,546			260,059
		596,165			356,522
		72,077			53,159
		2,387,202			3,770,427
		27,912,493			27,014,808
		3,458,857			2,899,454
		18,528			17,171
		1,042,985			1,584,829
		86,841			-
		178,922			129,115
		1,134,958			1,146,440
		327,678			331,209
		120,798			135,205
		6,369,571			6,243,425
		34,282,064			33,258,234
		8,514,018			8,514,018
		7,373,812			6,597,580
		33,252,502			34,352,917
		(1,444,377)			(407,082)
		47,695,956			49,057,434
		2,170,858			3,543,001
		218,900			(478,929)
		(375,387)			(296,329)

Total accumulated other comprehensive income	2,014,371	2,767,742
Non-controlling interests	7,876,489	6,965,552
Total net assets	57,586,816	58,790,729
Total liabilities and net assets	91,868,881	92,048,963

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

			(Thousands of yen)
		Nine months ended	Nine months ended
		December 31, 2019	December 31, 2020
Net sales	74,132,526	63,370,842
Cost of sales		60,842,002	51,484,728
Gross profit		13,290,524	11,886,114
Selling, general and administrative expenses		9,222,414	8,436,490
Operating profit		4,068,109	3,449,623

Non-operating income

Interest income

Dividend income

Foreign exchange gains

Subsidies for employment adjustment Other

Total non-operating income

Non-operating expenses

Interest expenses

Foreign exchange losses

Other

Total non-operating expenses

Ordinary profit

Extraordinary income

Gain on sales of non-current assets Gain on sales of investment securities Total extraordinary income

Extraordinary losses

Loss on sales of non-current assets Loss on retirement of non-current assets Total extraordinary losses

Profit before income taxes

Income taxes

Profit

Profit attributable to non-controlling interests

Profit attributable to owners of parent

	36,818	20,641
	151,363	160,122
	18,898	-
	-	77,596
	148,523	119,041
	355,602	377,402
	176,340	112,827
	-	89,488
	53,927	62,128
	230,267		264,444
	4,193,444	3,562,581
	4,991	4,785
	71,324	10,768
	76,315	15,553
	2,504	759
	12,205		6,124
	14,709	6,884
	4,255,050		3,571,251
	1,170,249	847,330
	3,084,801		2,723,920
	856,636	701,938
	2,228,164		2,021,981

Consolidated Statements of Comprehensive Income

				(Thousands of yen)
		Nine months ended	Nine months ended
		December 31, 2019	December 31, 2020
Profit	3,084,801		2,723,920
Other comprehensive income
Valuation difference on available-for-sale securities	440,581		1,371,727
Foreign currency translation adjustment	(88,502)		(1,210,303)
Remeasurements of defined benefit plans, net of tax	70,776		79,057
Total other comprehensive income	422,854		240,481
Comprehensive income		3,507,656		2,964,401
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	2,626,413		2,775,352
Comprehensive income attributable to non-controlling	881,242		189,048
interests