Riso Kagaku : Consolidated Financial Results for the Three Months Ended June 30, 2025(Under Japanese GAAP)

July 31, 2025

Company name: RISO KAGAKU CORPORATION Listing: Tokyo Stock Exchange Prime Market Securities code: 6413

URL: https://www.riso.co.jp/english/ Representative: Akira Hayama, President & CEO

Inquiries: Yoshiomi Narumiya, Director and General Manager of Corporate Headquarters Telephone: +81-3-5441-6611 (from overseas)

Scheduled date to commence dividend payments: -Preparation of supplementary material on financial results: None Holding of financial results briefing: None

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

1. Consolidated financial results for the three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025)
   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Three months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      June 30, 2025	18,282	(6.0)	1,476	(23.1)	1,534	(38.5)	888	(48.9)
      June 30, 2024	19,444	15.8	1,919	112.8	2,493	97.4	1,740	66.1

      Note: Comprehensive income	For the three months ended June 30, 2025:	¥874 million	[(71.1)%]
      	For the three months ended June 30, 2024:	¥3,021 million	[38.7%]

      	Basic earnings per share	Diluted earnings per share
      Three months ended	Yen	Yen
      June 30, 2025	13.86	-
      June 30, 2024	26.53	-

      A two-for-one split of its common shares was conducted on January 1, 2025. As a result, basic earnings per 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, 2025.

   2. Consolidated financial position

   	Total assets	Net assets	Equity-to-asset ratio
   As of	Millions of yen	Millions of yen	%
   June 30, 2025	89,513	64,174	71.7
   March 31, 2025	88,911	66,505	74.8

   Reference: Equity

   As of June 30, 2025: ¥64,174 million

   As of March 31, 2025: ¥66,505 million

2. Cash dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   Fiscal year ended March 31, 2025	-	0.00	-	50.00	50.00
   Fiscal year ended March 31, 2026	-
   Fiscal year ending March 31, 2026 (Forecast)		0.00	-	50.00	50.00

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

3. Forecasts for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

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

1. Significant changes in the scope of consolidation during the period: None

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: None

   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 shares)

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

      As of June 30, 2025	72,000,000 shares
      As of March 31, 2025	72,000,000 shares

   2. Number of treasury shares at the end of the period

      As of June 30, 2025	7,879,016 shares
      As of March 31, 2025	7,879,016 shares

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

A two-for-one split of its common shares was conducted on January 1, 2025. As a result, the number of issued shares 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, 2025.

• 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.

1. Overview of Operating Results 2

   1. Overview of Operating Results for the Quarter under Review 2

   2. Overview of financial position for the Quarter under Review 3

   3. Explanation on future estimates information pertaining to consolidated earnings forecasts 3

2. Consolidated Quarterly Financial Statements and Notes 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 segment information) 8

(Notes on significant changes in the amount of shareholders' equity) 8

(Notes on premise of going concern) 8

(Notes on quarterly consolidated cash flow statement) 8

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1. Overview of Operating Results for the Quarter under Review

   The RISO Group (RISO) pursues its business activities in line with its Management Policies. For the fiscal year ending March 31, 2026, these are to "Maintain reliable management in the Printing Equipment-Related Business", "Promote planning and development unique to RISO", and "Improve planning in the Corporate Headquarters".

   During the three months ended June 30, 2025, the Group operated the inkjet head business, which was transferred from Toshiba Tec Corporation effective July 1, 2024 by integrating the business into the Group. Accordingly, a new reporting segment called the "Printing Equipment-Related Business" was established in the second quarter of the previous fiscal year. This segment includes the existing "Printing Equipment Business" and the "Inkjet Head Business", which began operations in July.

   For the three months ended June 30, 2025, year on year decreases were recorded in net sales, operating income and profit attributable to owners of parent. The Printing Equipment-Related Business generally maintained steady performance, although sales of main unit products decreased slightly. Despite the addition of the inkjet head business, performance was impacted by the absence of the front-loaded domestic demand that was observed in the same period of the previous fiscal year ahead of price revisions in June 2024, as well as the appreciation of the yen. In addition, 95 million yen in foreign exchange losses was recorded as non-operating expenses (as opposed to 422 million yen of foreign exchange gains recorded in the same period of the previous fiscal year), and a 101 million yen loss on liquidation of subsidiaries and associates was recorded as extraordinary losses.

   Net sales were 18,282 million yen (down 6.0% year on year), operating income was 1,476 million yen (down 23.1% year on year), ordinary income was 1,534 million yen (down 38.5% year on year), and profit attributable to owners of parent was 888 million yen (down 48.9% year on year).

   The average exchange rates during the current consolidated three months period were 144.59 yen (a 11.29 yen appreciation of the yen year on year) for the US dollar and 163.80 yen (a 4.08 yen appreciation of the yen year on year) for the euro.

   Results by segment are as follows:

   1. 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.

      In the Printing Equipment-Related Business, both net sales and segment profit decreased in the three months ended June 30, 2025, compared to the same period of the previous fiscal year, with net sales of 17,887 million yen (down 5.7% year on year) and segment profit of 1,413 million yen (down 22.5% year on year).

      Net sales in Japan amounted to 8,162 million yen (down 12.3% year on year), while overseas net sales reached 9,725 million yen (up 0.7% year on year).

   2. Real estate business

      The Group's real estate business consists of the leasing of buildings.

      Net sales in the real estate business were 252 million yen (down 6.3% year on year), and segment profit was 160 million yen (down 14.5% year on year).

   3. Others

The Group 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 142 million yen (down 33.2% year on year), and segment loss was 98 million yen (compared to segment loss of 92 million yen in the same period of the previous fiscal year).

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