Riso Kagaku : Consolidated Financial Results for the Six Months of the Fiscal Year Ending March 31, 2023

Translation

November 2, 2022

Consolidated Financial Results

for the Six Months of the Fiscal Year Ending March 31, 2023

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:	November 9, 2022
Scheduled date of dividend payment commencement:	-
Preparation of supplementary information on quarterly business results:	Yes
Holding of briefing on quarterly business results:	Yes (Recorded video of briefing on business
	results scheduled for distribution)

(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated performance for the Six months of the fiscal year ending March 31, 2023 (from April 1, 2022 to September 30, 2022)

(1) Consolidated operating results (cumulative)			(Percentages indicate year-on-year changes.)
			Net sales			Operating income		Ordinary income		Profit attributable to
							owners of parent
	Six months ended		Millions of yen	%		Millions of yen	%		Millions of yen	%		Millions of yen	%
	September 30, 2022	35,047	8.5	2,393	71.5	2,596	68.1	2,001	53.1
	September 30, 2021		32,302	7.0		1,395	-		1,544	-		1,307	178.6
Note: Comprehensive Income
Six months ended September 30, 2022: 3,379 million yen / 158.3 %
Six months ended September 30, 2021: 1,308 million yen / 129.5 %
			Net income per share		Diluted net income per
				share
	Six months ended			Yen			Yen
	September 30, 2022			59.47			-
	September 30, 2021			38.13			-

(2) Consolidated financial position

			Total assets		Net assets	Equity ratio
	As of	Millions of yen		Millions of yen	%
	September 30, 2022	82,045	62,478		76.2
	March 31, 2022		81,829		62,971		77.0
Reference: Shareholders' Equity	As of September 30, 2022: 62,478 million yen	As of March 31, 2022: 62,971 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	-	100.00	100.00
March 31, 2022
Fiscal year ending	-	0.00
March 31, 2023
Fiscal year ending
March 31, 2023			-			60.00		60.00
(Forecasts)

(Note) Revisions to the forecasts of cash dividends in the current quarter: None Breakdown of dividends for fiscal year ended March 31, 2022

Ordinary dividend 60.00yen Dividend to commemorate 75th anniversary of the founding of the Company 40.00yen

3. Forecasts for the fiscal year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

(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
	Fiscal year ending		73,500	6.0		5,100	22.5		5,300	14.1		3,800	6.2		113.12
	March 31, 2023
(Note1)Revisions to the forecasts in the current quarter: Yes

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
4. 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
5. Number of issued shares (common stock)
6. 1. Total number of issued shares at the end of the period (including treasury stock)

	As of September 30, 2022	40,000,000 shares
	As of March 31, 2022	40,000,000 shares
b. Number of treasury stock at the end of the period
	As of September 30, 2022	6,475,304 shares
	As of March 31, 2022	6,263,511 shares

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

Six months ended September 30, 2022	33,659,085 shares
Six months ended September 30, 2021	34,303,809 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 Six Months.......................................................	2
(1)	Explanation on consolidated operating results .............................................................................................	2
(2)	Explanation on consolidated financial position ............................................................................................	3
(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)	Consolidated quarterly statements of cash flows..........................................................................................	8
(4)	Notes on quarterly consolidated financial statements...................................................................................	9
	(Notes on premise of going concern)............................................................................................................	9
	(Notes on significant changes in the amount of shareholders' equity) .........................................................	9
	(Additional information)...............................................................................................................................	9
	(Segment information)................................................................................................................................	10

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1. Qualitative Information regarding Consolidated Results for the Six 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 net sales and operating income grew in the six months of the fiscal year ending March 31, 2023, compared with the same period of the previous year.

Net sales were 35,047 million yen (up 8.5% year on year), operating income was 2,393 million yen (up 71.5% year on year), and ordinary income was 2,596 million yen (up 68.1% year on year). Profit attributable to owners of parent was 2,001 million yen (up 53.1% year on year).

The average exchange rates during the current consolidated six months period were 133.97 yen (a 24.17 yen depreciation of the yen year on year) for the US dollar and 138.73 yen (a 7.83 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.

Net sales in the printing equipment business were 34,276 million yen (up 8.6% year on year) partly due to depreciation of the yen, and segment profit was 2,104 million yen (up 95.7% year on year).

In Japan, 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. Overseas, sales for both the inkjet business and the digital duplicating business exceeded the same period of the previous year. Net sales in Japan were 16,868 million yen (up 1.6% year on year), in the Americas were 2,668 million yen (up 54.4% year on year), in Europe were 7,571 million yen (up 12.3% year on year), and in Asia were 7,168 million yen (up 10.6% 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 547 million yen (up 0.2% year on year), and segment profit was 397 million yen (down 3.2% 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 222 million yen (up 13.3% year on year), and segment loss was 108 million yen (compared to segment loss of 90 million yen in the same period of the previous fiscal year).

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