Rheon Automatic Machinery co.,ltd.

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Six Months Ended September 30, 2021
[Japanese GAAP]
November 08, 2021
Company name: RHEON AUTOMATIC MACHINERY CO., LTD.
Stock exchange listing: Tokyo
Code number: 6272
URL: https://www.rheon.com
Representative: Mikio Kobayashi
President & C.E.O.
Contact: Tadao FukudaManaging Operating Officer
Phone: 028-665-1111
Scheduled date of filing quarterly securities report: November 10, 2021
Scheduled date of commencing dividend payments: December 13, 2021
Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: Yes(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Six Months Ended September 30, 2021 (April 01, 2021 to September 30, 2021)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%Six months ended
September 30, 2021
12,69711.2
971(8.5)
1,020(13.3)
911(40.3)
September 30, 2020
11,415(21.5)
1,062(44.1)
1,176(38.6)
1,526
18.8(Note) Comprehensive income:Six months ended September 30, 2021:¥
1,045 million [(30.3) %]Six months ended September 30, 2020:¥
1,500 million [31.3%]
Basic earnings
per share
Six months ended
September 30, 2021
September 30, 2020

Diluted earnings pershareYen

Yen

34.01
56.95

33.93
56.83

(2) Consolidated Financial Position
Total assets
As ofSeptember 30, 2021
36,339March 31, 2021
34,124(Reference) Equity: As of September 30, 2021:
As of March 31, 2021:

Net assets

Million yen

Capital adequacy ratio

Million yen¥¥

27,42026,632
27,346 million
26,560 million

Net assets per share%

Yen

75.3
77.8

1,020.22
991.12

Rheon Automatic Machinery co.,ltd.

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2021

-

7.00

-

10.00

17.00

Fiscal year ending March 31, 2022

-

8.00
-

8.00

16.00

Fiscal year ending March 31, 2022
(Forecast)(Note) Revision to the forecast for dividends announced most recently:

Year-end

TotalNo

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022(April 01, 2021 to March 31, 2022)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profitowners of parent
per share%

Million yen%

Million yen%

Yen

Full year
26,290
18.0
2,010
43.2
(Note) Revision to the financial results forecast announced most recently:

Million yen%

Million yen

2,110
Yes

30.0

1,560

(3.0)

58.21

* Notes:(1) Changes in significant subsidiaries during the six months ended September 30, 2021
(changes in specified subsidiaries resulting in changes in scope of consolidation):
New(Company name:
Exclusion:(Company name:No(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
September 30, 2021:
28,392,000 shares
March 31, 2021:
28,392,000 shares2) Total number of treasury shares at the end of the period:
September 30, 2021:
1,587,040 shares
1,593,686 shares
March 31, 2021:
3) Average number of shares during the period:
Six months ended September 30, 2021:
Six months ended September 30, 2020:

26,801,123 shares
26,798,569 shares))NoRheon Automatic Machinery co.,ltd.

Quarterly Consolidated Financial Statements
Quarterly Consolidated Balance Sheets(Thousand yen)
As of March 31,2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and suppliesOther
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

As of September 30,2021

7,484,219
2,690,355
4,170,084
975,989
328,369
1,326,759(14,548)
16,961,228

8,846,367
3,190,822
4,439,839
1,445,174
468,986
899,891(14,208)
19,276,872

15,017,115(7,737,700)
7,279,414
7,931,499(6,380,314)
1,551,185
1,924,816(1,728,089)
196,726
4,093,968
45,286(42,045)
3,241
35,05813,159,594
1,463,960

15,190,455(7,957,479)
7,232,976
8,053,738(6,575,555)
1,478,182
1,937,714(1,765,518)
172,196
4,086,397
45,286(43,352)
1,933
99,452
13,071,137
1,304,507

976,863
1,407,227
161,992(6,036)2,540,046
17,163,601
34,124,830

1,047,538
1,436,999
206,009(4,043)2,686,503
17,062,148
36,339,020

Rheon Automatic Machinery co.,ltd.

(Thousand yen)
As of March 31,2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Lease obligations
Accrued expenses
Income taxes payable
Advances received
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Accounts payable - other
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Total net assets
Total liabilities and net assets

As of September 30,2021

740,599
734,006
2,334
587,624
231,165
1,205,429
485,486

1,087,562
829,490
1,252
546,395
333,494
1,961,561
630,816

11,60012,250959,295
121,154
5,078,696

927,206
160,020
6,490,049

1,406,934
1,154
573,083
347,422
36,24048,7052,413,540
7,492,237

1,537,672
815
457,768
347,422
36,25348,5582,428,491
8,918,540

7,351,750
7,069,407
14,591,084(773,996)
28,238,245

7,351,750
7,075,427
15,234,721(770,991)
28,890,906

345,996

390,913(1,708,996)(466,919)
151,997(1,677,921)
72,26826,632,592
34,124,830(1,708,996)(388,788)
162,807(1,544,062)
73,63627,420,479
36,339,020

Rheon Automatic Machinery co.,ltd.

Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the six months)(Thousand yen)
For the six months
ended September 30,2020
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Advertising expenses
Packing and transportation costs
Provision of allowance for doubtful accounts
Sales commission
Salaries and allowances
Provision for bonuses
Provision for bonuses for directors (and other officers)
Retirement benefit expenses
Travel and transportation expenses
Depreciation
Research and development expenses
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Gain on sale of goods
Foreign exchange gains
Subsidy income
Surrender value of insurance policies
Sold power
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sale of non-current assets
Sold power expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Reversal of provision for loss on litigation
Gain on sale of non-current assets
Total extraordinary income
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

For the six months
ended September 30,2021

11,415,762
6,310,686
5,105,076

12,697,343
7,104,697
5,592,645

21,535356,909
5,744
232,946
1,381,679
277,339
15,00090,693112,168
172,076
295,631
1,081,317
4,043,040
1,062,035

66,649670,021678
255,970
1,393,604
358,584
12,25076,333
139,415
268,476
221,108
1,157,746
4,620,840
971,804

1,930
12,253
4,358
7,428
51,542
14,72438,025130,2632,252
11,264
8,081
6,608
2,069
2,287
13,66026,42772,650

8,119
29
5,577
1,601
15,327
1,176,971

6,593
7,321
4,913
5,331
24,1601,020,295

7,646
682,713690,360
1,867,331
22,112
319,155
341,268
1,526,063
1,526,063

1,020,295
284,127(175,451)
108,675
911,619
911,619

Rheon Automatic Machinery co.,ltd.

Quarterly Consolidated Statements of Comprehensive Income (For the six months)(Thousand yen)
For the six months
ended September 30,2020
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent

For the six months
ended September 30,2021

1,526,063

911,619

44,273(69,866)
140(25,451)
1,500,611

44,917
78,13010,809133,858
1,045,478

1,500,611

1,045,478

Rheon Automatic Machinery co.,ltd.

Quarterly Consolidated Statements of Cash Flows(Thousand yen)
For the six months
ended September 30,2020
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accountsIncrease (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in provision for loss on litigation
Interest and dividend income
Surrender value of insurance policies
Interest expenses
Loss (gain) on sale of non-current assets
Decrease (increase) in retirement benefit asset
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in accrued expenses
Increase (decrease) in trade payables
Decrease (increase) in consumption taxes refund
receivable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other current liabilities
Increase (decrease) in other non-current liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities

For the six months
ended September 30,2021

1,867,331
477,732(3,242)(140,983)

1,020,295
558,525(2,449)145,384(6,700)650(7,646)(14,183)
8,119(682,713)
2,273(999,653)
244,743
48,943127,015(192,014)(13,516)(2,287)
6,593
5,441(14,227)(500,183)(860,672)
175,623(20,782)
342,041

42,290(88,971)

67,773(430,491)(1,755)
20,540427,379
14,183(8,899)(323,586)
571
109,648

48,994
791,582(312)
24,757
1,616,485
13,516(7,235)(181,421)
300,132
1,741,477

Rheon Automatic Machinery co.,ltd.

(Thousand yen)
For the six months
ended September 30,2020
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease obligations
Purchase of treasury shares
Dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

For the six months
ended September 30,2021(688,318)
1,253,084(360,611)(3,927)(16,432)
183,794(342,160)
2,380(7,178)(3,859)3,562(347,254)

115,910
1,100,000(173,730)(3,743)(173)(188,178)
850,083

35,910350,000(160,231)(1,438)(347)(268,349)(44,456)

17,67812,3801,161,204
4,820,663
5,981,867

1,362,147
7,484,219
8,846,367