Riso Kagaku : Consolidated Financial Results for the Nine Months Ended December 31, 2024【PDF：341KB】

Translation

January 31, 2025

Consolidated Financial Results

for the Nine Months Ended December 31, 2024

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the nine months ended December 31, 2024 (from April 1, 2024 to December 31, 2024)

Note: Comprehensive Income

Nine months ended December 31, 2024: 3,585 million yen / (10.4)%

Nine months ended December 31, 2023: 4,001 million yen /13.3%

(Note) The Company conducted a two-for-one split of its common shares on January 1, 2025.As a result, net income per sharestated above was calculated based on the assumption that the two-for-one stock split took place at the beginning of the fiscal year ended March 31, 2024.

(2) Consolidated financial position

Reference: Equity As of December 31, 2024: 65,493 million yen As of March 31, 2024: 66,893 million yen

2. Cash dividends

(Note) Revisions to the forecast of cash dividends most recently announced: None

The Company conducted a two-for-one split of its common shares on January 1, 2025. Actual dividend amounts for the year ended March 31, 2024 have been stated on a basis prior to said stock split.

3. Forecasts for the fiscal year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)

(Note) Revisions to the forecasts in the current quarter: None

The Company conducted a two-for-one split of its common shares on January 1, 2025. Forecast for net income per share on a consolidated basis has been calculated based on the number of issued shares (excluding treasury stock) after said stock split.

4. Others

1. Significant changes in the scope of consolidation during the period: Yes
   Newly included: 1 company (RISO Technologies Corporation)
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates, and restatement

1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
2. Changes in accounting policies due to other reasons: None
3. Changes in accounting estimates: None
4. Restatement: None

1. Number of issued shares (common shares)

1. Total number of issued shares at the end of the period (including treasury shares)

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

The Company conducted a two-for-one split of its common shares on January 1, 2025. As a result number of issued share stated above was calculated based on the assumption that the two-for-one stock split took place at the beginning of the fiscal year ended March 31, 2024.

• Review of the attached consolidated quarterly financial statements by a certified public accountant or audit firm: None
• 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.
• Other noteworthy matters
  The Company conducted a two-for-one split of its common shares on January 1, 2025.

Attached Materials

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1. Overview of Operating Results

1. Overview of Operating Results for the Semi-annual Period Under Review

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”.

During the nine months ended December 31, 2024, the Group incorporated and began operating the inkjet head business transferred from Toshiba Tec Corporation effective July 1, 2024.

Additionally, starting in the second quarter, we established a new reporting segment called the Printing Equipment- Related Business. This segment includes the existing Printing Equipment Business and the Inkjet Head Business, which began operations in July.

For the nine months ended December 31, 2024, both net sales and operating income increased year on year. This was attributed to the depreciation of the yen compared to the same period of the previous year and steady sales performance in the Printing Equipment-Related Business. Profit attributable to owners of parent decreased due to the recording of extraordinary losses of 496 million yen in structural reform costs at RISO TECHNOLOGY CHINA CO., LTD, a consolidated subsidiary of the Company.

Net sales were 57,087 million yen (up 7.8% year on year), operating income was 4,275 million yen (up 33.7% year on year), ordinary income was 4,572 million yen (up 23.9% year on year), and profit attributable to owners of parent was 2,699 million yen (down 5.0% year on year).

The average exchange rates during the current consolidated nine months period were 152.57 yen (a 9.28 yen depreciation of the yen year on year) for the US dollar and 164.83 yen (a 9.54 yen depreciation of the yen year on year) for the euro.

Results by segment are as follows:

a. Printing equipment-related business

The Group operates a printing equipment-related business, comprising the Printing Equipment Business and the Inkjet Head Business. Within the Printing Equipment Business, we operate the inkjet business, principally with its ORPHIS high-speed inkjet printers, as well as the digital duplicating business, consisting mainly of its RISOGRAPH digital duplicators.

The printing equipment-related business recorded net sales of 55,799 million yen (up 8.0% year on year) and segment profit of 4,041 million yen (up 47.1% year on year) during the nine months ended December 31, 2024, showing increases in both sales and profit compared to the same period of the previous year. In Japan, while sales had decreased in the same period of the previous year due to a softening of demand after a surge in demand prior to price revisions of consumables, sales in the nine months under review exceeded those in the same period of the previous year, as there was no such impact. Overseas, sales increased year on year due to the positive effect of yen depreciation in exchange rates. Additionally, the inkjet head business, which began operations in July 2024, contributed to increased net sales. Excluding the softening of a surge in demand prior to price revisions in Japan during the same period of the previous year, the start of the inkjet head business, and foreign exchange effects, the period under review showed results roughly comparable to the same period of the previous year.

Net sales in Japan amounted to 25,596 million yen (up 8.1% year on year), while overseas net sales reached 30,202 million yen (up 7.9% 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 773 million yen (down 5.6% year on year), and segment profit was 495 million yen (down 14.4% year on year).

c. Others

RISO operates the print creating business, the digital communication business, and the application software business, among others as well as printing equipment-related business and real estate business.

Net sales in the others were 515 million yen (up 10.2% year on year), and segment loss was 260 million yen (compared to segment loss of 127 million yen in the same period of the previous fiscal year).

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(2) Overview of financial position for the Quarter under Review

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 increased 64 million yen to 88,692 million yen, while net assets fell 1,399 million yen to 65,493 million yen.

The main changes in the assets section were increases of 959 million yen in merchandise and finished goods and 2,443 million yen in goodwill, respectively, while cash and deposits decreased by 5,135 million yen and notes and accounts receivable–trade decreased by 3,274 million yen. In liabilities, short-term borrowings increased by 1,403 million yen, long-term borrowings increased by 2,624 million yen, and notes and accounts payable–trade decreased by 2,502 million yen. In net assets, retained earnings decreased by 585 million yen, while treasury shares increased by 1,700 million yen and foreign currency translation adjustments increased by 787 million yen. As a result, the equity ratio decreased by 1.6 points to 73.8%.

(3) Explanation on future estimates information pertaining to consolidated earnings forecasts

There has been no revision to the consolidated forecasts for the fiscal year ending March 31, 2025, which were released on November 1, 2024.

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2. Consolidated Quarterly Financial Statements

(1) Consolidated quarterly balance sheets

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1. Consolidated quarterly statements of (comprehensive) income (Consolidated quarterly statements of income)

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