Riso Kagaku : Consolidated Financial Results for the Three Months of the Fiscal Year Ending March 31, 2025

Translation

July 30, 2024

Consolidated Financial Results

for the Three Months of the Fiscal Year Ending March 31, 2025

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

1. Consolidated performance for the three months of the fiscal year ending March 31, 2025 (from April 1, 2024 to June 30, 2024)

(2) Consolidated financial position

2. Cash dividends

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

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

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: Yes
2. Changes due to other reasons: None
3. Changes in accounting estimates: None
4. Restatement: None

Note: For details, refer to “2. Consolidated Quarterly Financial Statements and Notes (3) Notes on quarterly consolidated financial statements (Notes on changes in accounting policies)” on p. 8 of the attached materials.

1. Number of issued shares (common stock)

a. 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)

• 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.

Attached Materials

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1. Overview of Operating Results

(1) Overview of Operating Results for the Quarter 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”.

Both net sales and operating income increased in the first quarter of the fiscal year under review compared with the same period of the previous year.

This was due to depreciation of the yen exchange rate compared to the same period of the previous year and temporary front-loaded demand in the printing equipment business in Japan. Excluding these factors, results for the first three months were generally in line with the same period of the previous year.

Net sales were 19,444 million yen (up 15.8% year on year), operating income was 1,919 million yen (up 112.8% year on year), and due to the recording of foreign exchange gains, and other items, ordinary income was 2,493 million yen (up 97.4% year on year), profit attributable to owners of parent was 1,740 million yen (up 66.1% year on year).

The average exchange rates during the current consolidated three months period were 155.88 yen (a 18.51 yen depreciation of the yen year on year) for the US dollar and 167.88 yen (a 18.41 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 inkjet printers, as well as the digital duplicating business, consisting mainly of its RISOGRAPH digital duplicators.

In the printing equipment business, both sales and income increased compared to the same period in the previous year, with net sales of 18,962 million yen (up 15.9% year on year), and segment profit of 1,824 million yen (up 142.2% year on year). In Japan, sales decreased in the same period of the previous year due to the softening of demand after being pulled forward due to the price revisions of consumables. However, there was no such impact in the three months under review. Additionally, with front-loaded demand accompanying price revisions of main unit products from June 2024, sales exceeded those of the same period of the previous year. Overseas, sales increased year on year due to steady sales performance and the effect of the depreciation of the yen. Excluding the front-loaded demand in Japan and currency exchange impacts, results for the first three months were generally in line with the same period of the previous year.

Both in Japan and overseas, sales in the inkjet business and the digital duplicating business exceeded the same period of the previous fiscal year. Net sales in Japan were 9,303 million yen (up 18.9% year on year), in the Americas were 1,533 million yen (up 18.0% year on year), in Europe were 4,513 million yen (up 10.1% year on year), and in Asia were 3,612 million yen (up 15.2% 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 269 million yen (up 0.5% year on year), and segment profit was 187 million yen (down 2.8% 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 213 million yen (up 32.4% year on year), and segment loss was 92 million yen (compared to segment loss of 44 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 505 million yen to 89,133 million yen, while net assets fell 763 million yen to 66,129 million yen.

The main changes in the assets section were increases of 861 million yen in cash and deposits and 734 million yen in merchandise and finished goods, respectively, while notes receivable – trade and accounts receivable – trade decreased by 1,428 million yen. In the liabilities section, short-term borrowings increased by 1,308 million yen and other current liabilities by 1,243 million yen, respectively, while provision for bonuses decreased by 797 million yen. In net assets, retained earnings decreased by 1,544 million yen, and foreign currency translation adjustment increased by 1,060 million yen.

As a result, the equity ratio decreased by 1.3 points to 74.2%.

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

Regarding the consolidated earnings forecast, as we expect to exceed the forecast announced on May 9, 2024, we have revised our consolidated earnings forecast for both the first half and the full fiscal year.

For details, please refer to the “Notice Regarding Revision of Earnings Forecast” released today (July 30, 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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