Translation
Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between thistranslated document and the Japanese original, the original shall prevail.

Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending December 31, 2022
(under Japanese GAAP)
November 9, 2022
Company name: Roland Corporation
Listing:
Tokyo Stock Exchange
Security code:
7944
URL:
https://www.roland.com/global/
Representative:
Gordon Raison, CEO and Representative Director
Contact:
Shunsuke Sugiura, CFO and Director
Phone:+81-53-523-0230
Scheduled date to file Quarterly Securities Report (Shihanki Hokokusho):November 10, 2022
Scheduled date to commence payment of dividends:—
Preparation of supplementary briefing material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
Yes (for institutional investors and securities analysts)(Note) Amounts less than one million yen have been omitted.
1. Consolidated financial results for the third quarter of the fiscal year ending December 31, 2022 (from January 1 to September 30, 2022)(1) Consolidated operating results(Percentages indicate year-on-year changes.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Nine months ended
Millions of yen%
Millions of yen%
Millions of yen%
Millions of yen%
64,622–
6,288–
5,872 (34.3)
5,075 (34.4)
September 30, 2022
September 30, 2021
60,668
31.0
9,664
77.8
8,936
85.5
7,741 132.4
Note: Comprehensive income
For the nine months ended September 30, 2022: ¥9,716 million [5.0%]
For the nine months ended September 30, 2021: ¥9,256 million [261.0%]
Basic earnings
per share

Diluted earnings
per share

Nine months ended
Yen
Yen
September 30, 2022
185.43182.54September 30, 2021
282.25276.15
Notes:The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020)
from the beginning of the fiscal year ending December 31, 2022. Net sales and operating profit of the previous fiscal year
do not reflect this standard. Accordingly, year-on-year changes for net sales and operating profit against the nine months
ended September 30, 2021 are not presented.
(2) Consolidated financial position
Total assets
Net assets
Equity ratio
As ofMillions of yen
Millions of yen%
September 30, 2022
68,59432,38746.8
December 31, 2021
52,80728,656
53.7
Reference: Equity (Shareholders’ equity + Accumulated other comprehensive income)As of September 30, 2022: ¥32,102 million
As of December 31, 2021: ¥28,380 million
2. DividendsFirstquarter-end

Secondquarter-end

Annual dividend per share
Third
quarter-end

Yen
Yen
Fiscal year ended
December 31, 2021–
69.00
Fiscal year ending
December 31, 2022–
78.00
Fiscal year ending
December 31, 2022
(forecast)
Note: Revisions from the most recently announced dividends forecast: None

Fiscalyear-end

Total

Yen

Yen

Yen

–

69.00

138.0078.00

156.00–3. Forecast of consolidated financial results for the fiscal year ending December 31, 2022 (from January 1 to December 31, 2022)(Percentages indicate year-on-year changes.)
Profit attributable to
Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Millions ofyen%Millions ofyen%Millions ofyen%Millionsof yen%Yen

92,400–12,400–12,500
23.7
9,800
14.1
357.58
Fiscal year
Note: 1. Revisions from the most recently announced forecast of consolidated financial results: None
2. The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) fromthe beginning of the fiscal year ending December 31, 2022. The forecast of consolidated financial results above is based on
the said accounting standard. Accordingly, year-on-year changes for net sales and operating profit against the fiscal year
ended December 31, 2021 are not presented. The forecasts of net sales and operating profit for the fiscal year ending
December 31, 2022 calculated in line with the same standard as was used in the fiscal year ended December 31, 2021 are as
follows:

Fiscal year

Net sales¥93,300 million

16.6%

Operating profit
19.9 %¥13,300 million[Notes](1) Changes in significant subsidiaries during the current period (Changes in specified subsidiaries resulting in the change in scopeof consolidation): 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 restatements of prior period financial statements
1) Changes in accounting policies due to the application of new or revised accounting standards: Yes
2) Changes in accounting policies due to reasons other than the above 1):
None3) Changes in accounting estimates:
None4) Restatements of prior period financial statements:
None(4) Number of shares of common stock issued
1) Number of shares issued (including treasury shares)
As of September 30, 2022:
28,066,786 shares
As of December 31, 2021:
27,970,534 shares
2) Number of treasury shares
As of September 30, 2022:
839,802 shares
As of December 31, 2021:
421,931 shares
3) Average number of shares of common stock during the period (cumulative from the beginning of the fiscal year)
Nine months ended September 30, 2022: 27,370,986 shares
Nine months ended September 30, 2021: 27,428,203 shares
Notes: The aggregate number of shares of the Company held by the Board Benefit Trust, Employee Stock Ownership Plan
Trust and Employee Shareholding Association-type ESOP Trust was included in the number of treasury shares, which
was to be deducted from the calculation of the average number of shares of common stock during the period. It is notedthat the average numbers of shares of common stock held by these trusts during the nine months ended September 30,
2021 and 2022 were 431,632 shares and 393,843 shares, respectively.
* This quarterly financial results report is not subject to quarterly review procedures by certified public accountants or an audit firm.
* [Proper use of earnings forecasts, and other special notes](Disclaimer with respect to earnings and other forecasts)
 The forward-looking statements including the earnings forecast contained in this document are based on information currently
available and certain assumptions that are believed to be reasonable. Accordingly, please be advised that the Company does notguarantee the achievement of the forecasts and the actual results may differ from the results described in this forward-looking
statements due to a variety of factors. For further information on the forecast of consolidated financial results, please refer to“Explanation of forward-looking information including consolidated earnings forecast” on page 4 of the Attached Materials.
 The Company will hold a quarterly financial results briefing for institutional investors and securities analysts on Thursday,
November 10, 2022. Materials used at the quarterly financial results briefing will be posted on the Company’s website.

Contents of Attached Materials
1. Qualitative Information on Quarterly Consolidated Financial Results ······························································· P. 2
(1) Explanation of consolidated operating results ······················································································ P. 2
(2) Explanation of consolidated financial position ····················································································· P. 3
(3) Explanation of forward-looking information including consolidated earnings forecast ······································ P. 4
2. Quarterly Consolidated Financial Statements and Major Notes ······································································ P. 5
(1) Quarterly consolidated balance sheets ······························································································· P. 5(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income ········· P. 7(3) Quarterly consolidated statements of cash flows··················································································· P. 9(4) Notes to quarterly consolidated financial statements ·············································································· P. 10(Going concern assumption) ·········································································································· P. 10(Significant changes in shareholders’ equity)······················································································· P. 10(Changes in accounting policies) ····································································································· P. 10(Subsequent events) ···················································································································· P. 10-1-1. Qualitative Information on Quarterly Consolidated Financial Results
The Company has applied Accounting Standard for Revenue Recognition (ASBJ Statement No. 29 of March 31, 2020; hereinafter,
the “Accounting Standard for Revenue Recognition”) since the beginning of the fiscal year ending December 31, 2022.
Under the Accounting Standard for Revenue Recognition, sales discounts, which were previously recognized in non-operating
expenses, have been reclassified as deductions from net sales. With this change in our accounting standard, net sales and operating
profit decline, whereas ordinary profit, profit attributable to owners of parent, and cash flows remain unaffected.
Figures for the nine months ended September 30, 2022 (hereinafter, the “period under review”) as referred to in “Explanation of
consolidated operating results” represent the results after the application of the Accounting Standard for Revenue Recognition. For
this reason, direct year-on-year comparisons of these figures are not shown. Instead, to help you better understand the operating
performance for the period under review, year-on-year comparisons after adjustment are shown, which are percentages calculated
based on the assumption that the results for the period under review had been measured by the same accounting standard as used in
the fiscal year ended December 31, 2021.

(1) Explanation of consolidated operating results
During the period under review, while new COVID-19 cases were contained to some extent and social and economic activities got
back on a recovery track, the Group forced to face some downside risks, such as the prolonged Russia-Ukraine conflict, global
inflation and drastic changes in exchange rate and interest rates. Signs of economic downturn were noticeable especially in the third
quarter and later of the current fiscal year. Market conditions remained highly uncertain particularly in China, as the recovery fromthe lockdown in Shanghai was relatively tepid.
In the electronic musical instruments business hemisphere, compared to the pre-pandemic era, sales standards went on to become afurther solid position endorsed by the entrenched new lifestyle brought by the COVID-19 pandemic as a whole. On the procurement
and supply sides, by implementing various measures, the circumstances have been moving out of the worst phase of COVID-19 andorder backlog was progressed successfully. Meanwhile, on the cost side, although ocean transportation and raw material prices wereremained higher than expected, the Group has focused on to optimize its product prices with the careful eyes on the market conditions
and competitive situations of each region.
Moreover, with a view to further growth of the drums business, the Group published an announcement that Roland Drum Corporation,
one of the Group’s consolidated subsidiaries would acquire all the outstanding shares of U.S. based Drum Workshop, Inc. and makeit a wholly owned subsidiary as of September 12, and acquisition procedure was completed as of October 3. Through this partnership
between the major brands of electronic and acoustic drums, the Group will develop a new drum market. While Roland Drum
Corporation is subjected to be consolidated commencing from the fourth quarter of the current fiscal year, this transaction will be no
significant impact and the consolidated forecast has not been revised. However, in the rise of any matters to be disclosed,announcements shall be published in a swift manner.
As a result of the above, during the period under review, the Group recorded net sales of ¥64,622 million (up 7.6% year on year
after adjustment). In terms of profit, the Group recorded operating profit of ¥6,288 million (down 28.2% year on year after
adjustment), ordinary profit of ¥5,872 million (down 34.3% year on year) and profit attributable to owners of parent of ¥5,075
million (down 34.4% year on year).

Sales performance by mainstay category is as shown below:[Keyboards] Net sales: ¥20,820 million (up 13.1% year on year after adjustment)
Among the mainstay categories, electronic pianos remained in stronger demand compared to the pre-COVID-19 pandemic era, driven
by brisk demand from people staying home for longer hours. Meanwhile, the demand declined especially for some low-end products
primarily due to soaring prices of consumer goods in Europe.
[Percussion and Wind Instruments] Net sales: ¥13,953 million (down 3.0% year on year after adjustment)
Among the mainstay categories, sales of electronic drums fell short of expectations due in part to the influence of lockdown in China
and the delayed launch of some new products.
Sales of electronic wind instruments were affected by the short supply of some products and lockdown in China, a core market for
the instruments, although the category has been earning strong attention.
-2-

[Guitar-related Products] Net sales: ¥16,108 million (up 10.2% year on year after adjustment)
Among the mainstay categories, sales of guitar effects continued to perform strongly, especially the Loop Station series and compact
effector “Waza Craft Pedal” series released in the previous fiscal year and multi-effecters released in the current fiscal year performed
strong.
Sales of musical instrument amplifiers, especially drum amplifiers were challenged by lockdown in China. Overall sales of guitarrelated products, however, remained firm.
[Creation-related Products & Services] Net sales: ¥8,793 million (up 15.4% year on year after adjustment)
Among the mainstay categories, while supply shortage for the mid- to high-price synthesizers remained, products such as compact
stage pianos continued to enjoy brisk sales.
The dance and DJ-related products domain continued to record strong sales particularly compact gadget instruments that allow users
to enjoy full-scale electronic music easily went well. In addition, sales of the latest model of the long-selling Sampler Series, releasedin the fourth quarter of the previous fiscal year, continued to perform stronger than expected.
In the software and service domain, through Roland Cloud platform where software sound sources are offered at a fixed membershipfee, the Group continued to release new software synthesizers and sound packs. The Group also started offering a piano lesson
application service as well as an online service where users can share customized settings of effects and amplifiers with each other.
[Video and Professional Audio] Net sales: ¥2,950 million (down 4.7% year on year after adjustment)
Among the mainstay categories, video related products struggled as the Group was unable to supply sufficient products due to parts
shortage, although events-related demand was on a recovery track in each country. Moreover, sales of new models for the V-MODA
brand products fell short of expectations.
(2) Explanation of consolidated financial position(i) Assets, liabilities and net assets as of September 30, 2022
Total assets at the end of the period under review on a consolidated basis increased by ¥15,787 million from the end of theprevious fiscal year to ¥68,594 million. This is attributable primarily to increases in trade receivables of ¥4,301 million andinventories of ¥10,668 million.
Liabilities increased by ¥12,056 million from the end of the previous fiscal year to ¥36,206 million. This is attributable primarily
to an increase in borrowings of ¥11,237 million.
Net assets increased by ¥3,731 million from the end of the previous fiscal year to ¥32,387 million. This is attributable mainly tothe recognition of profit attributable to owners of parent of ¥5,075 million and an increase in foreign currency translation
adjustment of ¥4,698 million due to the continued depreciation of yen against major currencies, which were partially offset by adecrease in retained earnings of ¥4,082 million due to the payment of dividends and an increase in treasury shares of ¥1,939
million, a deduction item from net asset, which reflects the repurchase of treasury shares.
As a result of the above, the equity ratio fell 6.9 percentage points from the end of the previous fiscal year to 46.8%.
(ii) Cash flows for the nine months ended September 30, 2022
During the period under review, cash and cash equivalents (“net cash”) decreased by ¥579 million (a decrease by ¥2,044 million
for the same period of the previous fiscal year) to ¥8,201 million at the end of the period.
Cash flows from operating activities
Net cash used in operating activities amounted to ¥3,934 million (¥4,207 million provided for the same period of the previous
fiscal year), which is attributable primarily to increased working capital.
Cash flows from investing activities
Net cash used in investing activities amounted to ¥791 million (¥545 million used for the same period of the previous fiscal year),which is attributable primarily to the capital outlay for the purchases of property, plant and equipment.
Cash flows from financing activities
Net cash provided by financing activities amounted to ¥4,953 million (¥5,535 million used for the same period of the previous
fiscal year), which is attributable primarily to an increase in borrowings, although this increase was offset partially by the
repurchase of treasury shares and the payment of dividends.
-3-(3) Explanation of forward-looking information including consolidated earnings forecast
The full-year consolidated financial result forecasts have not changed since the last announcement on August 8, 2022. In theevent of any change, details shall be published in an appropriate manner.

-4-

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheets
Previous fiscal year
(As of December 31, 2021)(Millions of yen)
Current quarter(As of September 30, 2022)

AssetsCurrent assets:
Cash and deposits

8,781

8,201

Notes and accounts receivable – trade

7,444

11,746Merchandise and finished goods

15,50823,473Work in process

1,715

1,570

Raw materials and supplies

8,016

10,864

Other

1,470

1,919

Allowance for doubtful accounts

(313)

(368)

42,62357,407

Buildings and structures, net

2,421

2,244

Land

1,626

1,650

Other, net

1,808

2,360

Total property, plant and equipment

5,857

6,255

632

589

Investment securities

1,245

976

Other

2,549

3,481

Allowance for doubtful accounts

(101)

(115)

Total investments and other assets

3,693

4,341

10,183

11,18752,807

68,594

Total current assets
Non-current assets:
Property, plant and equipment:

Intangible assets
Investments and other assets:

Total non-current assets
Total assets-5-

Previous fiscal year
(As of December 31, 2021)(Millions of yen)
Current quarter(As of September 30, 2022)

Liabilities
Current liabilities:
Notes and accounts payable – trade

6,391

7,875

–

9,176

1,252

1,252

Income taxes payable

360

326

Provision for bonuses

1,662

523

Provision for bonuses for directors (and other officers)

78

39

Provision for product warranties

373

425

Other

5,915

6,469

Total current liabilities

16,03326,088

5,822

7,883

1

1

Provision for share awards

262

255

Provision for share awards for directors (and other officers)

58

76

Retirement benefit liability

725

689

Asset retirement obligations

86

87

1,160

1,123

Short-term borrowings
Current portion of long-term borrowings

Non-current liabilities:
Long-term borrowings
Provision for product warranties

Other
Total non-current liabilities

8,117

10,11824,15036,206

Share capital

9,585

9,613

Capital surplus

163

191

Retained earnings

18,894

19,887

Total liabilities
Net assets
Shareholders’ equity:

Treasury shares(482)(2,421)

28,161

27,270

Valuation difference on available-for-sale securities

140

94

Foreign currency translation adjustment

(178)

4,519

Remeasurements of defined benefit plans

258

218

Total accumulated other comprehensive income

219

4,832

Share acquisition rights

115

95

Non-controlling interests

161

189

28,65632,38752,807

68,594

Total shareholders’ equity
Accumulated other comprehensive income:

Total net assets
Total liabilities and net assets-6-

(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income
Quarterly consolidated statements of income
Nine months ended
September 30, 2021
60,668Net sales(Millions of yen)
Nine months ended
September 30, 2022
64,622

Cost of sales

32,538

38,106Gross profit

28,13026,515

Selling, general and administrative expenses

18,465

20,227

Operating profit

9,664

6,288

Interest income

78Dividend income

86

93

Subsidy income

51

116

Other

13

5

Total non-operating income

159

223

Interest expenses

18

25

Sales discounts

589－

Foreign exchange losses

185

603

Other

93

9

Total non-operating expenses

887

639

8,936

5,872

Gain on sales of non-current assets

374

11

Gain on liquidation of subsidiaries－

246

Total extraordinary income

374

258

6

8

Loss on competition law

149－

Total extraordinary losses

156

8

Profit before income taxes

9,154

6,122

Income taxes – current

1,963

1,631

Income taxes – deferred

(551)

(591)

Total income taxes

1,411

1,040

Profit

7,743

5,082

1

6

7,741

5,075

Non-operating income:Non-operating expenses:

Ordinary profit
Extraordinary income:Extraordinary losses:
Loss on sales and retirement of non-current assets

Profit attributable to non-controlling interests
Profit attributable to owners of parent-7-

Quarterly consolidated statements of comprehensive income
Nine months ended
September 30, 2021
7,743

Profit(Millions of yen)
Nine months ended
September 30, 2022
5,082

Other 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

131

(45)

1,338

4,720

43

(39)

1,513

4,634

9,256

9,716

9,242

9,688

14

28

Comprehensive income attributable to:
Owners of parent
Non-controlling interests-8-(3) Quarterly consolidated statements of cash flows
Nine months ended
September 30, 2021

(Millions of yen)
Nine months ended
September 30, 2022

Cash flows from operating activities:
Profit before income taxes

9,154

6,122

Depreciation

1,194

1,253

Amortization of goodwill

33

Increase (decrease) in retirement benefit liability

1

(110)

Interest and dividend income

(94)

(101)

Interest expenses

18

25

Foreign exchange losses (gains)

137

483

Loss (gain) on sale and retirement of non-current assets

(367)

(3)

Loss (gain) on liquidation of subsidiaries

－

(246)

Decrease (increase) in trade receivables(1,415)(1,956)

Decrease (increase) in inventories(3,025)(4,821)

Increase (decrease) in trade payables

684(1,899)Other, net

(71)

(988)

Subtotal

6,221(2,237)

Interest and dividends received

94

101

Interest paid

(18)

(21)

Income taxes paid

(2,090)(1,776)

Net cash provided by (used in) operating activities

4,207(3,934)(1,001)(947)

Proceeds from sale of property, plant and equipment

555

17

Purchase of intangible assets

(73)

(94)

Proceeds from collection of long-term loans receivable

26

5

Proceeds from liquidation of subsidiaries–

227

Other, net

(53)

(0)

Net cash provided by (used in) investing activities

(545)

(791)

Net increase (decrease) in short-term borrowings

(143)

9,136

Proceeds from long-term borrowings

1,500

3,000

Repayments of long-term borrowings(3,810)(939)

Proceeds from issuance of shares

145

35

Proceeds from sale of treasury shares

93

105

(121)

(2,000)(2,903)(4,063)

(295)

(322)

(5,535)

4,953

(171)

(807)

Net increase (decrease) in cash and cash equivalents(2,044)(579)

Cash and cash equivalents at beginning of period

10,832

8,781

Cash and cash equivalents at end of period

8,787

8,201

Cash flows from investing activities:
Purchase of property, plant and equipment

Cash flows from financing activities:

Purchase of treasury shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents-9-(4) Notes to quarterly consolidated financial statements(Going concern assumption)
Not applicable(Significant changes in shareholders’ equity)
The Company repurchased 469,900 treasury shares during the period under review based on the resolution passed at the Board of
Directors meeting held on February 10, 2022. As a result, its treasury shares increased by ¥1,999 million to ¥2,421 million as ofthe end of the period under review.
(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition)
The Company has applied the Accounting Standard for Revenue Recognition since the beginning of the fiscal year ending December
31, 2022. Under the new standard, we recognize revenue upon the transfer of control of promised goods or services in an amountthat reflects the amount which we expect to receive in exchange for such goods or services. Under the new standard, sales discounts,
which were previously recognized in non-operating expenses, have been deducted from net sales.
While the Company applies the Accounting Standard for Revenue Recognition, in accordance with the transitional treatmentprescribed in the provision of paragraph 84 of the standard, the application had no impact on our retained earnings at the beginningof the fiscal year ending December 31, 2022.
As a result, during the period under review, net sales, gross profit, and operating profit each decreased by ¥655 million, but these
decreases had no impact on ordinary profit and profit before income taxes since non-operating expenses also decreased by ¥655
million. In addition, consolidated financial statements for past periods have not been reclassified using the new presentation method,in accordance with the transitional treatment prescribed in paragraph 89-2 of the Accounting Standard for Revenue Recognition.
(Application of Accounting Standard for Fair Value Measurement)
The Company has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019; hereinafter,
the “Accounting Standard for Fair Value Measurement”) since the beginning of the fiscal year ending December 31, 2022. In
accordance with the transitional treatment prescribed in paragraph 19 of the Accounting Standard for Fair Value Measurement andparagraph 44–2 of the Accounting Standard for Financial Instruments (ASBJ No. 10, July 4, 2019), the Company will prospectively
apply the new accounting policies prescribed by the Accounting Standard for Fair Value Measurement. The above, however, does
not affect our quarterly consolidated financial statements.
(Subsequent events)(Business combination through acquisition)
At the Board of Directors meeting held on September 12, 2022, the Company resolved that Roland Drum Corporation (“RDC”),
which was newly established as a wholly owned subsidiary of the Company, will make Drum Workshop, Inc. a subsidiarythrough the acquisition of all its outstanding shares. The acquisition procedure was completed as of October 3, 2022.
1. Outline of the business combination(1) Name and line of business of the acquired company
Name:
Drum Workshop, Inc. (“DW”)
Line of business: Development, manufacture and sale of hardware products including drums and percussions, and related
software(2) Reasons for the business combination
Building on the success of the recent V-Drums Acoustic Design (“VAD”) series launch, Roland aims to further expand ourdrum business. To further advance our efforts to become the world leader in drums, we have determined that a partnershipwith DW will greatly contribute to acquiring a dominant position in the drum market and further our development
opportunities. Drum Workshop has outstanding people, innovative product development capabilities, and world-class drum
and percussion brands including DW Drums and Hardware, Pacific Drums and Percussion (PDP), Latin Percussion (LP),Gretsch Drums, and Slingerland. With the combination of the major brands in both electronic drums and acoustic drums,
the partnership will endeavor to expand the global drum market.
(3) Date of business combination
October 3, 2022 (Deemed acquisition date: October 1, 2022)(4) Legal form of the business combination
Acquisition of shares for cash consideration- 10 -

(5) Name of the company after the business combination
No change(6) Percentage of voting rights acquired
100%(7) Major grounds for determining the acquiring company
RDC acquired the shares in exchange for cash.
2. Breakdown of acquisition costs and consideration for the acquired company by type
Consideration for the acquisition
Acquisition cost

Cash

US$ 65 million (approx. ¥9.4 billion)
US$ 65 million (approx. ¥9.4 billion)

Notes: 1. Converted to Japanese yen using the exchange rate of 144.90 yen to the U.S. dollar (as of October 3, 2022)
2. The acquisition cost is subject to be adjusted with the balance of cash and deposits, debt, and changes in working
capital, as of the closing date.
3. Breakdown of major acquisition-related costs by nature and amount
Advisory fee, etc. (estimated amount): US$ 1.8 million (approx. ¥260 million)
Note: Converted to the Japanese yen using the exchange rate of 144.90 yen to the US dollar (as of October 3, 2022)
4. Amount of goodwill arising from acquisition, reason for goodwill, method and period of amortization
Not yet determined at the moment.
5. Breakdown of assets acquired and liabilities assumed on the business combination date by amount and typeNot yet determined at the moment.
6. Method of funding
We have funded the acquisition with borrowings from a financial institution as shown below:(1) Lenders: Resona Bank, Limited(2) Amount of loan: 11,200 million yen(3) Loan interest rates: Base rate + Spread(4) Loan execution dates: October 3, 2022
(5) Final repayment dates: September 29, 2023
(6) Status of security and guarantee: Unsecured and unguaranteed
Note: The amount is scheduled to be refinanced with long-term bank loans during the above loan period.

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