Riso Kagaku : Consolidated Financial Results for the Six Months Ended September 30, 2024【PDF：375KB】

Translation

November 1, 2024

Consolidated Financial Results

for the Six Months Ended September 30, 2024

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

1. Consolidated financial result for the Six months ended September 30, 2024 (from April 1, 2024 to September 30, 2024)

(2) Consolidated financial position

2. Cash dividends

(Note) Revisions to the forecast of cash dividends most recently announced: Yes

As indicated in the Notice Regarding Share Split, Amendment of Articles of Incorporation, an d Revision of Dividend Forecast released on November 1, 2024, the Company plans to execute a two for one split of its common shares on January 1, 2025.

As a result the cash dividends per share for the fiscal year ending March 31, 2025 (forecast) was calculated based on the number of shares after the share split. Not taking the share split into consideration, the year-end cash dividends for the fiscal year ending

March 31, 2025 (forecast) would be 100 .00 yen per share, and the annual dividend would be 100.00 yen.

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: Yes

Net income per share stated in the “Forecasts for the fiscal year ending March 31, 2025” was calculated based on the assumption that the two for one share split that will take effect on January 1, 2025 took place at the beginning of the fiscal year ending March 31,

2025. Not taking the share split into consideration, net income per share would be 128.66 yen

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 semi-annual 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
4. Number of issued shares (common stock)
1. Total number of issued shares at the end of the period (including treasury stock)

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

• Semi-annualfinancial results reports are exempt from review conducted by certified public accountants 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

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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 semi-annual period under review, 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 semi-annual period under review, 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.

Net sales were 38,167 million yen (up 9.6% year on year), operating income was 2,804 million yen (up 52.3% year on year), and due to the recording of foreign exchange losses, and other items, ordinary income was 2,630 million yen (up 12.3% year on year), profit attributable to owners of parent was 1,782 million yen (down 4.7% year on year).

The average exchange rates during the semi-annualwere 152.63 yen (a 11.63 yen depreciation of the yen year on year) for the US dollar and 165.95 yen (a 12.56 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 37,301 million yen (up 9.8% year on year) and segment profit of 2,665 million yen (up 73.1% year on year) during the semi-annual period under review, 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 semi-annual period under review exceeded those in the same period of the previous year, as there was no such impact. Additionally, although a surge in demand prior to price revisions of main products implemented in June 2024, this impact dissipated in the second quarter. Overseas, sales increased year on year due to steady sales performance and the positive effect of yen depreciation in exchange rates. Excluding the softening of a surge in demand prior to price revisions in Japan during the same period of the previous year and currency exchange impacts, results for the semi-annual period under review were generally in line with the same period of the previous year.

Net sales in Japan amounted to 17,700 million yen (up 10.0% year on year), while overseas net sales reached 19,601 million yen (up 9.6% 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 521 million yen (down 4.1% year on year), and segment profit was 332 million yen (down 13.7% 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 business and real estate business.

Net sales in the others were 345 million yen (up 6.7% year on year), and segment loss was 193 million yen (compared to segment loss of 84 million yen in the same period of the previous fiscal year).

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(2) Overview of financial position for the Semi-annual Period Under Review

①Assets, Liabilities, Net assets

The financial position at the end of the semi-annual period under review changed from the end of the previous fiscal year as follows.

Total assets decreased by 1,213 million yen to 87,414 million yen, while net assets decreased by 2,878 million yen to 64,014 million yen.

The main changes were as follows: In the assets section, goodwill increased by 2,579 million yen, while cash and deposits decreased by 5,286 million yen. In the liabilities section, short-term borrowings increased by 1,402 million yen and long-term borrowings increased by 2,811 million yen, while notes and accounts payable - trade decreased by 2,610 million yen. In net assets, retained earnings decreased by 1,502 million yen, and treasury shares increased by 955 million yen.

As a result, the equity ratio decreased by 2.2 points to 73.2%.

②Cash flows

Net cash provided by operating activities was 2,353 million yen (down 38.5% year on year). This is mainly attributable to profit before income taxes of 2,630 million yen, depreciation of 1,408 million yen, a decrease in trade receivables of 3,251 million yen, and income taxes paid of 782 million yen.

Net cash used in investing activities was 6,869 million yen (compared to an outflow of 384 million yen in the same period of the previous year). This was primarily attributed to expenditures of 1,097 million yen for the purchase of property, plant and equipment, 613 million yen for the purchase of intangible assets, and 6,436 million yen for the absorption-type company split.

Net cash provided by financing activities was 135 million yen (compared to an outflow of 4,385 million yen in the same period of the previous year). The result mainly reflects a net increase in short-term borrowings of 1,403 million yen, proceeds from long-term borrowings of 3,000 million yen, an expenditure of 954 million yen for the purchase of treasury shares, and dividend payments of 3,283 million yen.

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

Based on recent performance trends, we have revised our earnings forecasts announced on July 30, 2024, and the dividend forecast announced on May 9, 2024.

For details, please refer to the Notification of Revisions to Earnings Forecasts and Dividend Forecasts announced today (November 1, 2024).

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2. Semi-annual Consolidated Financial Statements

(1) Semi-annual Consolidated Balance Sheets

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(2) Semi-annual Consolidated Statements of Income and Comprehensive Income

(Semi-annual Consolidated statements of income) (Six Months Ended September 30)

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