リズム（7769） – 【Summary】Consolidated Financial Results for the Year Ended March 31, 2022 [Japanese GAAP]

(cid:53)(cid:43)(cid:60)(cid:55)(cid:43)(cid:48) (cid:38)(cid:50)(cid:17)(cid:15)(cid:47)(cid:55)(cid:39)(cid:17)May 12, 2022Note:ThisdocumentisatranslationofapartoftheoriginalJapaneseversionandprovidedforreferencepurposesonly.IntheeventofanydiscrepancybetweentheJapaneseoriginalandthisEnglishtranslation,theJapaneseoriginalshallprevail.Consolidated Financial Resultsfor the Year Ended March 31, 2022[Japanese GAAP]Company name: RHYTHM CO.,LTD.Stock exchange listing: TokyoCode number: 7769URL: https://www.rhythm.co.jp/Representative: Hiromi HirataContact: Katsuhiko YamazakiPhone: 048-643-7241Scheduled date of Annual General Meeting of Shareholders: June 22, 2022Scheduled date of commencing dividend payments: June 23, 2022Scheduled date of filing annual securities report: June 22, 2022Availability of supplementary briefing material on annual financial results: NoSchedule of annual financial results briefing session: YesPresident and Representative DirectorDirector and Managing Executive Officer(Amounts of less than one million yen are rounded down)1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 01, 2021 to March 31, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)Fiscal year endedMarch 31, 2022March 31, 2021(Note) Comprehensive income:Net salesOperating profitOrdinary profitMillion yen29,99927,304Million yen%8929.9318(8.7)Fiscal year ended March 31, 2022:Fiscal year ended March 31, 2021:%180.5-¥¥%Million yen118.71,286-5882,242 million(674) millionProfit attributable toowners of parentMillion yen1,031(1,262)-%]-%][[%–Basic earnings pershareDiluted earnings pershareRate of return onequityOrdinary profit tototal assets ratioOperating profit tonet sales ratioFiscal year endedMarch 31, 2022March 31, 2021(Reference) Equity in earnings (losses) of affiliated companies:Yen124.92(152.90)Yen–%4.0(5.0)Fiscal year ended March 31, 2022:Fiscal year ended March 31, 2021:%3.51.6¥¥(2) Consolidated Financial PositionTotal assetsNet assetsCapital adequacy ratioNet assets per shareAs ofMarch 31, 2022March 31, 2021(Reference) Equity: As of March 31, 2022:As of March 31, 2021:Million yen38,29335,704Million yen27,00625,046¥¥27,000 million25,021 million%70.570.1(3) Consolidated Cash FlowsFiscal year endedMarch 31, 2022March 31, 2021Cash flows fromoperating activitiesCash flows frominvesting activitiesCash flows fromfinancing activitiesCash and cashequivalents at the endof periodMillion yen1,2451,849Million yen(876)(585)Million yen(1,203)(686)Million yen9,94110,276%3.01.2- million- millionYen3,269.613,029.49(cid:2057)(cid:20)(cid:53)(cid:43)(cid:60)(cid:55)(cid:43)(cid:48) (cid:38)(cid:50)(cid:17)(cid:15)(cid:47)(cid:55)(cid:39)(cid:17)2. DividendsFiscal year endedMarch 31, 2021March 31, 2022Fiscal year endingMarch 31, 2023Annual dividends1stquarter-endYen2ndquarter-endYen3rdquarter-endYenYear-endTotalTotaldividendsPayoutratio(consolidated)Dividendsto netassets(consolidated)—0.000.000.00—YenYenMillion yen30.0037.5030.0037.5024730936.0036.0030.0%–%1.01.2(Forecast)(Note) Breakdown of the year-end dividend for the fiscal year ended March 31, 2022 :Commemorative dividendSpecial dividend- yen- yen3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 01, 2022 to March 31, 2023)Net salesOperating profit(% indicates changes from the previous corresponding period.)Basic earnings perProfit attributable toshareowners of parentOrdinary profitSix months endedSeptember 30, 2022Full yearMillion yen% Million yen% Million yen% Million yen%14,70030,7006.12.33701,00038.912.05201,30020.11.0400(11.4)1,000(3.1)* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): NoNewExclusion:–(Company name:(Company name:Yen48.44121.09))(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement1) Changes in accounting policies due to the revision of accounting standards: Yes2) Changes in accounting policies other than 1) above: No3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)1) Total number of issued shares at the end of the period (including treasury shares):March 31, 2022:March 31, 2021:March 31, 2022:March 31, 2021:8,385,093 shares8,385,093 shares127,150 shares125,941 shares2) Total number of treasury shares at the end of the period:3) Average number of shares during the period:Fiscal Year ended March 31, 2022:Fiscal Year ended March 31, 2021:8,258,463 shares8,259,919 shares(cid:2057)(cid:21)(cid:53)(cid:43)(cid:60)(cid:55)(cid:43)(cid:48) (cid:38)(cid:50)(cid:17)(cid:15)(cid:47)(cid:55)(cid:39)(cid:17)(Reference) Summary of Non-consolidated Financial Results1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 01, 2021 to March 31, 2022)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)Net salesOperating profitOrdinary profitNet incomeFiscal year endedMarch 31, 2022March 31, 2021Million yen14,69512,128%21.224.7Million yen2808%–Million yen929513%81.0501.8Million yen541220%145.2-Basic earnings per share Diluted earnings per shareFiscal year endedMarch 31, 2022March 31, 2021Yen65.5926.74Yen–(2) Non-consolidated Financial PositionTotal assetsNet assetsCapital adequacy ratioNet assets per shareAs ofMarch 31, 2022March 31, 2021(Reference) Equity: As of March 31, 2022:As of March 31, 2021:Million yen30,10629,191Million yen21,53421,120¥¥21,534 million21,120 million%71.572.4Yen2,607.752,557.27(cid:2057)(cid:22)Consolidated Financial StatementsConsolidated Balance SheetsAssetsCurrent assetsCash and depositsNotes and accounts receivable – tradeNotes and accounts receivable – trade, and contractassetsElectronically recorded monetary claims -operatingInventoriesPrepaid expensesOtherAllowance for doubtful accountsTotal current assetsNon-current assetsProperty, plant and equipmentBuildings and structuresAccumulated depreciationBuildings and structures, netMachinery, equipment and vehiclesAccumulated depreciationMachinery, equipment and vehicles, netTools, furniture and fixturesAccumulated depreciationTools, furniture and fixtures, netLandLeased assetsAccumulated depreciationLeased assets, netConstruction in progressTotal property, plant and equipmentIntangible assetsGoodwillSoftwareOtherTotal intangible assetsInvestments and other assetsInvestment securitiesLong-term loans receivableDistressed receivablesDeferred tax assetsRetirement benefit assetOtherAllowance for doubtful accountsTotal investments and other assetsTotal non-current assetsTotal assetsRHYTHM CO.,LTD.(Million yen)As of March 31,2021As of March 31,202210,2764,150-1,4525,469135344(1)21,82711,966(6,915)5,0508,230(6,217)2,0125,468(5,272)1951,972139(31)1081999,539583462078371,912840444601,082(84)3,50013,87735,7049,941-4,1071,7857,397158680(0)24,06912,034(6,864)5,1708,992(6,874)2,1175,511(5,302)2092,008561(222)339209,864213871584587921985172,0671,116(81)3,90014,22338,293　4LiabilitiesCurrent liabilitiesNotes and accounts payable – tradeShort-term borrowingsCurrent portion of bonds payableCurrent portion of long-term borrowingsAccounts payable – otherAccrued expensesIncome taxes payableContract liabilitiesProvision for bonusesProvision for bonuses for directors (and otherofficers)Other provisionsOtherTotal current liabilitiesNon-current liabilitiesBonds payableLong-term borrowingsDeferred tax liabilitiesRetirement benefit liabilityOtherTotal non-current liabilitiesTotal liabilitiesNet assetsShareholders’ equityShare capitalCapital surplusRetained earningsTreasury sharesTotal shareholders’ equityAccumulated other comprehensive incomeValuation difference on available-for-salesecuritiesForeign currency translation adjustmentRemeasurements of defined benefit plansTotal accumulated other comprehensive incomeNon-controlling interestsTotal net assetsTotal liabilities and net assetsRHYTHM CO.,LTD.(Million yen)As of March 31,2021As of March 31,20222,938332-43338428192-2751593425,1423,0001,5101484583975,51510,65712,3727,5843,350(275)23,0312111,4822951,9892525,04635,7043,563703,00043545726926210633411176509,178-1,0741135233962,10711,28612,3727,5844,100(276)23,7803662,5612913,219627,00638,293　5Consolidated Statements of Income and Comprehensive IncomeConsolidated Statements of IncomeRHYTHM CO.,LTD.For the fiscal yearended March 31,2021For the fiscal yearended March 31,2022(Million yen)Selling, general and administrative expensesNet salesCost of salesGross profitOperating profitNon-operating incomeInterest incomeDividend incomeRental incomeForeign exchange gainsSubsidy incomeOtherTotal non-operating incomeNon-operating expensesInterest expensesRental expensesForeign exchange lossesOtherTotal non-operating expensesOrdinary profitExtraordinary incomeGain on sale of non-current assetsGain on sale of investment securitiesTotal extraordinary incomeExtraordinary lossesEarly retirement related expansesLoss on disposal of non-current assetsLoss on sale of non-current assetsLoss on sale of investment securitiesLoss on valuation of investment securitiesImpairment lossesGoodwill impairment lossTotal extraordinary lossesProfit (loss) before income taxesIncome taxes – currentIncome taxes for prior periodsIncome taxes – deferredTotal income taxesProfit (loss)Loss attributable to non-controlling interestsProfit (loss) attributable to owners of parent27,30420,9676,3376,019318361316–201582371404390312588340341,501179—-1,528(905)20646105358(1,263)(0)(1,262)29,99923,1926,8075,9148923773253510512667343158-7734742-742-2801,286691212041,125357(58)(186)1121,012(19)1,031　6Consolidated Statements of Comprehensive IncomeProfit (loss)Other comprehensive incomeValuation difference on available-for-sale securitiesForeign currency translation adjustmentRemeasurements of defined benefit plans, net of taxTotal other comprehensive incomeComprehensive incomeComprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterestsFor the fiscal yearended March 31,2021For the fiscal yearended March 31,2022RHYTHM CO.,LTD.(Million yen)1,0121541,078(3)1,2302,2422,261(19)(1,263)198194196589(674)(673)(0)　7RHYTHM CO.,LTD.Consolidated Statements of Changes in Net AssetsFor the fiscal year ended March 31,2021Share capitalCapital surplusTreasury sharesShareholders’ equityRetainedearnings12,3727,5844,860(274)24,543(Million yen)Totalshareholders’equity(247)(1,262)0(0)0(0)(247)(1,262)(0)-(0)(1,510)12,3727,5843,350(0)(275)(1,511)23,031Accumulated other comprehensive incomeValuationdifference onavailable-for-salesecuritiesForeign currencytranslationadjustmentRemeasurementsof definedbenefit plansTotalaccumulatedothercomprehensiveincomeNon-controllinginterestsTotal net assets131,287991,4002625,9701981982111941941,4821961962955895891,989(0)(0)25(247)(1,262)0(0)588(923)25,046Balance at beginningof periodChanges duringperiodDividends ofsurplusProfit (loss)attributable toowners of parentDisposal of treasurysharesPurchase of treasurysharesNet changes initems other thanshareholders’ equityTotal changesduring periodBalance at end ofperiodBalance at beginningof periodChanges duringperiodDividends ofsurplusProfit (loss)attributable toowners of parentDisposal of treasurysharesPurchase of treasurysharesNet changes initems other thanshareholders’ equityTotal changesduring periodBalance at end ofperiod　8For the fiscal year ended March 31,2022RHYTHM CO.,LTD.Share capitalCapital surplusTreasury sharesShareholders’ equityRetainedearnings(Million yen)Totalshareholders’equity12,3727,5843,350(275)23,03112,3727,5843,316(275)22,998(33)(33)(247)1,031(247)1,031-(1)78223,780(1)(1)(276)-12,372-7,5847834,100Accumulated other comprehensive incomeValuationdifference onavailable-for-salesecuritiesForeign currencytranslationadjustmentRemeasurementsof definedbenefit plansTotalaccumulatedothercomprehensiveincomeNon-controllinginterestsTotal net assets2111,4822951,9892525,0462111,4822951,9892525,013Balance at beginningof periodCumulative effects ofchanges in accountingpoliciesRestated balanceChanges duringperiodDividends ofsurplusProfit (loss)attributable toowners of parentDisposal of treasurysharesPurchase of treasurysharesNet changes initems other thanshareholders’ equityTotal changesduring periodBalance at end ofperiodBalance at beginningof periodCumulative effects ofchanges in accountingpoliciesRestated balanceChanges duringperiodDividends ofsurplusProfit (loss)attributable toowners of parentDisposal of treasurysharesPurchase of treasurysharesNet changes initems other thanshareholders’ equityTotal changesduring periodBalance at end ofperiod1541543661,0781,0782,561(3)(3)2911,2301,2303,219(19)(19)6(33)(247)1,031-(1)1,2101,99327,006　9Consolidated Statements of Cash FlowsCash flows from operating activitiesProfit (loss) before income taxesDepreciationEarly retirement related expensesSubsidies for employment adjustmentSubsidy incomeImpairment lossesImpairment loss of goodwillAmortization of goodwillIncrease (decrease) in allowance for doubtful accountsIncrease (decrease) in retirement benefit liabilityDecrease (increase) in retirement benefit assetIncrease (decrease) in provision for bonusesIncrease (decrease) in provision for bonuses fordirectors (and other officers)Interest and dividend incomeInterest expensesForeign exchange losses (gains)Loss (gain) on disposal of non-current assetsLoss (gain) on sale of non-current assetsLoss (gain) on sale of intangible assetsLoss (gain) on sale of investment securitiesLoss (gain) on valuation of investment securitiesDecrease (increase) in trade receivablesDecrease (increase) in inventoriesIncrease (decrease) in trade payablesIncrease (decrease) in accrued consumption taxesDecrease (increase) in other assetsIncrease (decrease) in other liabilitiesSubtotalPayments for early retirement expensesProceeds from subsidies for emplomentSubsidies receivedInterest and dividends receivedInterest paidIncome taxes paidNet cash provided by (used in) operating activitiesCash flows from investing activitiesNet decrease (increase) in time depositsPurchase of property, plant and equipmentProceeds from sale of property, plant and equipmentPurchase of intangible assetsProceeds from sale of intangible assetsPurchase of investment securitiesProceeds from sales of investments securitiesProceeds from collection of loans receivableOther, netNet cash provided by (used in) investing activitiesRHYTHM CO.,LTD.(Million yen)For the fiscal yearended March 31,2021For the fiscal yearended March 31,2022(905)1,0831,501(106)—340(6)58(131)102(7)(65)37(14)17(34)-(0)9681,48430172(104)(148)3,380(1,484)106-65(40)(177)1,84925(657)59(40)(2)-0524(585)1,1251,319–(105)69121285(4)30(62)589(80)43(74)(34)74-(5)(58)(1,658)424(408)191681,195–10580(42)(93)1,245(908)50(37)(2)-2656(876)　10Cash flows from financing activitiesIncrease (decrease) in short-term borrowingsProceeds from long-term borrowingsRepayments of long-term borrowingsRedemption of bondsPurchase of treasury sharesProceeds from sale of treasury sharesDividends paidRepayments of finance lease liabilitiesNet cash provided by (used in) financing activitiesEffect of exchange rate change on cash and cashequivalentsNet increase (decrease) in cash and cash equivalentsCash and cash equivalents at beginning of periodCash and cash equivalents at end of periodRHYTHM CO.,LTD.(Million yen)For the fiscal yearended March 31,2021For the fiscal yearended March 31,2022(202)2,170(368)(2,000)(0)0(247)(37)(686)776559,62110,276(313)(434)—(1)(247)(206)(1,203)500(334)10,2769,941　11