Roland DG : 06/12/2023 Annual Report 2022

ANNUAL REPORT 2022

Year ended December 31, 2022

Purpose

To Empower Creativity and Excitement Worldwide

Through innovative digital solutions, we provide people around the world with the amazement and joy of creation,

as well as the wow and excitement that result from it.

Ever since our foundation, we have not only provided products but also created

markets and helped enrich our customers' lifestyles and the world through the power of digital technology. Articulating our reason for existing, we are determined to share our purpose with the world, in addition to the core values embodied in our slogans, "Creativity," "BEST," and "Cooperative Enthusiasm."

Mission

Bringing new opportunities to society through digital technology

Slogans

Inspire the Enjoyment of Creativity Be the BEST rather than the BIGGEST

The Roland Family - Cooperative Enthusiasm

INDEX

TOP MESSAGE	02
To our Shareholders and Investors
SPECIAL FEATURE	03
Introduction of New Officers

MANAGEMENT

19

Corporate Governance

Board of Directors

Skill Matrix of Directors and Executive Officers

NEW PRODUCTS / TOPICS	05
FINANCIAL SUMMARY	08
OPERATING & FINANCIAL REVIEW	10
Net sales by market
Net sales by region
AT A GLANCE	14
Roots
Business Summary
DG Value

SUSTAINABILITY	26
FINANCIAL HIGHLIGHTS	41
FINANCIAL SECTION	42
CORPORATE DATA

ESG Initiatives

Environment		Social		Governance
Strengthening environmentally-friendly		Improving human health and safety through		Separate monitoring and execution,
non-solvent ink solutions		dental and medical support systems		delegate authority, and speed-up
								decision making
Constructing Nearly ZEB certified new HQ
	Work style reform: Promoted work-from-		Management transparency:
building with 75% less energy consumption
	home and flextime schemes		The Appointment and Compensation
*Construction completion:July 2023(Plan)
					Committee, comprising half or more of
								which are Independent Outsid Directors
Promoting Environment-friendly		Promoting digital transformation of sales
manufacturing		promotion and service activities		Diverse composition of Board of Directors,
								with foreign nationals, women, and people
								with wide-ranging experience and knowledge

Forward-looking information

All statements on this report that are not based on historical fact, including performance forecasts, plans, and strategies, constitute forward-looking statements regarding future performance. These statements were prepared by Roland DG management using information available at the time and based on certain assumptions, and as such, are subject to risk and uncertainties. As actual performance may differ widely from these forecasts, we ask that you do not base your investment decisions solely on these performance forecasts.

01

TOP MESSAGE

To our Shareholders and Investors

To Our Shareholders and Investors

I would like to take this opportunity to thank our shareholders and Investors for your continued support.

During the fiscal year ended December 31, 2022, the outlook for the world economy remained uncertain partly owing to the prolonged invasion of Ukraine by Russia and soaring energy costs. However, we achieved our highest ever net sales thanks to the robust demand for capital investment, the launch of new products and the impact of a weaker yen. Concurrently, we were able to achieve significant progress in the "expansion of growth areas" that we are focusing on under the midterm business plan.

We will continue our efforts to transform the business portfolio by proactively investing management resources in growth areas to solidify the foundations for business growth.

In these endeavors, we look forward to the continued support of our shareholders and Investors.

President, Representative Director

Kohei Tanabe

02

SPECIAL FEATURE

Introduction of New Officers

Introduction of New Officers

Let us introduce a new Director and a new Audit & Supervisory Board Member whose election was approved at the 42nd Ordinary General Meeting of Shareholders held on March 24, 2023.

By increasing the number of outside officers, we aim to further strengthen corporate governance and enhance corporate value.

Outside Director

Yasuhiro Kasahara

Profile

October 2006	Registered as Attorney-at-law
October 2006	Joined Nagashima Ohno & Tsunematsu
September 2012	Nagashima Ohno & Tsunematsu NY LLP
September 2014	Machado Meyer Sendacz Opice Advogados (Sao Paulo)
April 2016	Part-time Lecturer at the University of Tokyo, Faculty
	of Law
January 2017	Partner of Nagashima Ohno & Tsunematsu (current
	position)
April 2019	Visiting Associate Professor, The University of Tokyo,
	Graduate Schools for Law and Politics
March 2023	Director of the Company (current position)

• What are your strengths and expertise?

Since becoming an attorney-at-law in 2006, I have been continuously engaged in legal affairs in the corporate and M&A fields. In Japan and internationally, I specialize in complex M&A transactions, business integration transactions, and start-up investments while also advising listed companies on governance. Drawing on my international experience, which includes working in the U.S. and Brazil, my forte is cross-border cases. My guiding principle is to offer clients advice that contributes to their business success by proactively presenting practical solutions in a timely manner, going beyond pointing out legal risks.

• What is your impression of Roland DG?

Though headquartered in Japan, Roland DG, with an overseas manufacturing site and large overseas sales, strikes me as a global company. My impression is that Roland DG is a successful company boldly taking on the challenge of new markets, such as the dental field, and is not fearful of changes. With "global" and "taking on the challenge of new fields" as keywords, I would like to help Roland DG further enhance its attractiveness.

• What role would you like to play as a Director?

I believe that an attorney-at-law serving as an outside director of a listed company is expected to make appropriate judgments regarding the company's compliance, governance, and other legal matters. Mindful that requirements concerning compliance and governance of listed companies are increasing year by year, I would like to do my utmost to enhance the compliance and governance of Roland DG as a whole. Moreover, rather than taking a short-sighted view of legal risks, I will always endeavor to be fully aware of the need to strike a balance between business and legal risks with a view to contributing to the enhancement of the company's corporate value.

• Please send a message to stakeholders.

My goal as a corporate lawyer is to be management's most trusted and closest advisor. Having been appointed Outside Director, I am honored to have the opportunity to accomplish my goal by serving Roland DG. As a corporate lawyer who has been active at the forefront of the legal affairs field both in Japan and abroad, I intend to make the best use of the expertise I have cultivated over the years in order to fulfill the trust of our stakeholders.

03