Riso Kagaku : Consolidated Financial Results for the Three Months of FY2023【PDF：352KB】

Translation

July 29, 2022

Consolidated Financial Results

for the Three 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:	August 9, 2022
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, 2023 (from April 1, 2022 to June 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
	Three months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
	June 30, 2022	17,258	3.6	1,356	32.2	1,666	44.5	1,177	15.9
	June 30, 2021	16,655	23.8	1,026	-	1,153	-	1,016	-
Note: Comprehensive Income
Three months ended June 30, 2022: 2,524 million yen / 142.4 %
Three months ended June 30, 2021: 1,041 million yen / 381.8 %
		Net income per share	Diluted net income per
		share
	Three months ended		Yen		Yen
	June 30, 2022		34.94		-
	June 30, 2021		29.42		-

(2) Consolidated financial position

			Total assets	Net assets		Equity ratio
	As of	Millions of yen	Mi2lions of yen	%
	June 30, 2022	80,404		61,922	77.0
	March 31, 2022		81,829		62,971		77.0
Reference: Shareholders' Equity	As of June 30, 2022:	61,922 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	-
March 31, 2023
Fiscal year ending
March 31, 2023		0.00		-			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
	Six months ending	34,000	5.3	2,000	43.3	2,200	42.4	1,600	22.3	47.51
	September 30, 2022
	Fiscal year ending		70,800	2.1		3,800	(8.8)		3,900	(16.0)		2,800	(21.8)		83.18
	March 31, 2023
(Note) 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

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, 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 June 30, 2022	6,353,069 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)

Three months ended June 30, 2022	33,714,490 shares
Three months ended June 30, 2021	34,555,410 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 net sales and operating income grew in the first quarter of the fiscal year under review compared with the same period of the previous year.

Net sales were 17,258 million yen (up 3.6% year on year), operating income was 1,356 million yen (up 32.2% year on year), and ordinary income was 1,666 million yen (up 44.5% year on year), profit attributable to owners of parent was 1,177 million yen (up 15.9% year on year).

The average exchange rates during the current consolidated three months period were 129.57 yen (a 20.08 yen depreciation of the yen year on year) for the US dollar and 138.12 yen (a 6.16 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 16,876 million yen (up 3.5% year on year) due to the effects of yen depreciation in exchange rates, and segment profit was 1,217 million yen (up 40.0% 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 8,246 million yen (down 2.5% year on year), in the Americas were 1,259 million yen (up 68.8% year on year), in Europe were 3,873 million yen (up 12.1% year on year), and in Asia were 3,497 million yen (down 3.9% 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 273 million yen (up 0.4% year on year), and segment profit was 203 million yen (down 1.0% 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 107 million yen (up 28.2% year on year), and segment loss was 64 million yen (compared to segment loss of 49 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 1,424 million yen to 80,404 million yen, while net assets fell 1,049 million yen to 61,922 million yen.

The main areas of change in the assets section were raw materials and supplies increased by 398 million yen. Cash and deposits, and notes and accounts receivable-trade decreased by 560 million yen and 2,423 million yen, respectively. In the liabilities section, retirement benefit liability increased by 763 million yen. Income taxes payable, and provision for bonuses decreased by 609 million yen and 834 million yen, respectively. In net assets, retained earnings decreased by 2,195 million yen, while foreign currency translation adjustment increased by 1,301 million yen.

As a result, the equity ratio remained unchanged from the end of the previous fiscal year at 77.0%.

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