Note: This is an excerpt translation of the “Shihanki-Houkokusho” for the convenience of overseas stakeholders. In cases where
any differences occur between the English version and the original Japanese version, the Japanese version shall prevail. RIKENTECHNOS CORPORATION assumes no responsibility for this translation or for direct, indirect or any other forms of damages
arising from the translation.

Quarterly Consolidated Financial Statements(Pursuant to Article 24-4-7, Paragraph 1 of theJapanese Financial Instruments and Exchange Act)
Third quarter of
the 94th term

From April 1, 2022
to December 31, 2022

RIKEN TECHNOS CORPORATION
2-101, Kanda-Awajicho, Chiyoda-ku, Tokyo, Japan

1

Quarterly Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Electronically recorded monetary claims operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Leased assets, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Leased assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

As of December 31, 2022

*2

20,702,615
1,785,477
21,413,866*2

20,448,595
1,363,997
26,180,728*2

3,145,045*2

3,917,972

9,159,195
621,167
7,623,661
751,067(83,600)
65,118,496

10,954,498
989,7428,461,606
1,257,576(83,827)
73,490,890

9,915,598
7,902,898
6,331,829
40,319364,622581,60225,136,870

10,982,200
8,458,163
6,503,673
58,215
1,131,888
643,478
27,777,619

7,275
588
2,098,602
2,106,466

6,183－
2,241,614
2,247,798

7,905,371
2,526
962,148
428,348
983,575(2,320)10,279,650
37,522,987
102,641,484

7,409,101
2,049
1,019,368
510,636
1,228,549(2,320)10,167,384
40,192,802
113,683,693

(Thousands of yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Lease liabilities
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Provision for share awards for directors (andother officers)
Retirement benefit liability
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
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets*2*1

20,075,715
521,101
6,769,296
488,174
14,444
480,704
726,155

As of December 31, 2022

*1

21,644,363
845,515
8,262,526
591,365
9,362
614,752
427,849

97,77469,9492,235,955
31,409,322

3,234,778
35,700,462

2,566,512
20,774
1,469,124

2,703,617
39,9391,607,121

171,386

191,309

1,136,730
330,880
88,252
5,783,661
37,192,984

1,312,337
334,526
74,341
6,263,193
41,963,655

8,514,018
6,597,580
38,200,822(466,193)
52,846,228

8,514,018
6,597,580
40,466,458(413,325)
55,164,731

4,255,441

3,950,169

563,069
97,331
4,915,842
7,686,429
65,448,500
102,641,484

3,354,389
102,080
7,406,639
9,148,667
71,720,037
113,683,693

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Thousands of yen)
Nine months ended
December 31, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Depreciation of assets for rent
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Loss on sale of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

Nine months ended
December 31, 2022

78,376,008
64,711,246
13,664,761
9,073,783
4,590,977

92,246,423
76,970,078
15,276,344
9,637,386

19,408180,360
192,806
167,129559,704

25,549223,428
195,767
122,771567,516

82,48827,59028,889138,968
5,011,714

108,264
13,05936,644
157,967
6,048,506

835
89,16790,003

937
8,720
9,658

530
4,720
1,409
6,660
5,095,056
1,242,596
3,852,460
524,150
3,328,310

－
1,650
－
1,650
6,056,514
1,563,335
4,493,178
932,745
3,560,432

5,638,958

Consolidated Statements of Comprehensive Income(Thousands of yen)
Nine months ended
December 31, 2021
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 ofparentComprehensive income attributable to noncontrolling interests

Nine months ended
December 31, 2022

3,852,460

4,493,178

224,211
837,321
37,201
1,098,734
4,951,194(305,662)
4,301,795
4,748
4,000,882
8,494,060

4,180,353

6,051,228

770,841

2,442,831

Notes to Quarterly Consolidated Financial Statements
Basis of Presentation of Quarterly Consolidated Financial Statements
The accompanying quarterly consolidated financial statements of RIKEN TECHNOS CORPORATION (the“Company”) and its consolidated subsidiaries have been prepared in accordance with the provisions set forthin the Japanese Financial Instruments and Exchange Act and its related accounting regulations, and inaccordance with accounting principles generally accepted in Japan (“Japanese GAAP”), which are different incertain respects as to the application and disclosure requirements of International Financial ReportingStandards (“IFRS”).
In addition, amounts are rounded down to the nearest thousand yen.
Special Accounting Applied for Preparing Quarterly Consolidated Financial Statements(Calculation of taxes)
The Company computes the taxes first by reasonably estimating the effective tax rate after applying tax effectaccounting against profit before income taxes for the fiscal year including the third quarter under review, andnext by multiplying profit before income taxes by such estimated effective tax rate.
However, in cases where the calculation of taxes using such estimated effective tax rate yields a result that is
not reasonable to a significant extent, the effective statutory tax rate is used.
Additional Information(Transactions of delivering the Company’s own stock to employees etc. through trusts)(1) Board Benefit Trust (BBT)In accordance with the resolution at the 87th Ordinary General Meeting of Shareholders held on June 24,
2016, the Company introduced a new stock-based compensation plan “Board Benefit Trust (BBT)” on
September 14, 2016, for the purpose of raising awareness of Directors who execute business (excluding
Directors who are Audit & Supervisory Committee Members) and Executive Officers toward theircontributions to improving the mid- to long-term corporate performance and increasing the corporate
value as well as making Directors who do not execute business (excluding Directors who are Audit &Supervisory Committee Members) and Directors who are Audit & Supervisory Committee Members
contribute to increasing the mid- to long-term corporate value through supervision or audit.
i)

Overview of transactions
Based on the officers’ stock benefit plan which was established in advance, the Company and its
group companies (the “Group”) grant points to Directors, etc. (Directors and Executive Officers). At
the time of their retirement, the Group provides shares in the Company to the Directors, etc. who
satisfy requirements for beneficiaries in proportion to the points which the Group has granted tothem. With regard to the shares which will be provided to Directors etc. in the future, a trust bankacquires the Company’s treasury shares through third-party allotment by using the money contributedby the Company. Such shares are managed as trust assets separately.

ii) Shares in the Company remaining at the trust
The shares in the Company remaining at the trust are recorded as the treasury shares in net assets withthe book value (excluding associated costs) at the trust. The book value and number of these treasury
shares as of the end of the previous fiscal year were 276,412 thousand yen and 601 thousand shares,
respectively, while those as of the end of the third quarter under review were 270,072 thousand yen
and 587 thousand shares, respectively.
iii) Book value of borrowings recorded due to the application of the gross method
Not applicable.

(2) Stock Benefit Trust (Employee Stockholding Association Purchase-type)
For the purpose of promoting welfare benefits for employees and giving incentives pertaining to theimprovement of corporate value of the Company, the Company introduced “Stock Benefit Trust(Employee Stockholding Association Purchase-type)” (hereinafter referred to as the “Plan”), pursuant to
the resolution at the Board of Directors meeting held on February 22, 2021.
i)

Overview of transactions
The Plan is an incentive plan under which the benefits of a rise in the Company’s stock price arepassed along to all the employees who are members of the “RIKEN TECHNOS Employee
Stockholding Association” (hereinafter referred to as the “Stockholding Association”).
A trust bank as the trustee of the Plan acquires shares in the Company that are expected to beacquired by the Stockholding Association over the five years after the establishment of the trust, en
bloc in advance, and sells those shares in the Company to the Stockholding Association as needed
when it acquires the shares. If the amount equivalent to gain on sales of shares by the trust bank was
accumulated in trust assets by the termination of this trust through the sale of shares to the
Stockholding Association, the accumulated amount is distributed as residual assets to the members of
the Company’s employee Stockholding Association who satisfy eligibility requirements forbeneficiaries. The Company has guaranteed loans that the trust bank received to acquire shares in the
Company. Therefore, if there is remaining loan amount that is equivalent to loss on sales of shares in
the Company due to a decline in the Company’s stock price at the time of termination of the trust, theCompany is required to pay the remaining loan amount under the guarantee agreement.

ii) Shares in the Company remaining at the trust
The shares in the Company remaining at the trust are recorded as the treasury shares in net assets withthe book value (excluding associated costs) at the trust. The book value and number of these treasury
shares as of the end of the previous fiscal year were 189,711 thousand yen and 372 thousand shares,
respectively, while those as of the end of the third quarter under review were 143,099 thousand yen
and 280 thousand shares, respectively.
iii) Book value of borrowings recorded due to the application of the gross method
157,014 thousand yen as of the end of the third quarter under review

Notes to Consolidated Balance Sheets*1. Overdraft agreements and unused overdraft facility balance
To flexibly secure working capital, the Company and its domestic consolidated subsidiaries have enteredinto overdraft agreements with banks with which they do business.
The unused balance of these prescribed limit agreements is as follows:
As of March 31, 2022

(Thousands of yen)
As of December 31, 2022

Total overdraft facility limit
Outstanding borrowings within the limit

9,230,000
3,665,000

9,130,000
3,865,000

Unused balance

5,565,000

5,265,000*2. Notes maturing on the quarterly balance sheet date
When the quarterly balance sheet date falls on a holiday of financial institutions, the notes maturing on thequarterly balance sheet date will be accounted for as if they were settled on the maturity date.
The amount of notes matured on December 31, 2022 is as follows:
As of March 31, 2022
Notes receivable - trade
Electronically recorded monetary claims - operating
Notes payable - trade37,13813,760
8,571(Thousands of yen)
As of December 31, 2022
85,314426,146－

Notes to Consolidated Statements of Income
Not applicable.
Notes to Consolidated Statements of Cash FlowsThe consolidated statements of cash flows for the nine-month period under review were not prepared.
Depreciation (including amortization of intangible assets except for goodwill) and amortization of goodwill
for the nine-month period under review are as follows:
Nine months ended
December 31, 2021
Depreciation
Amortization of goodwill(Thousands of yen)
Nine months ended
December 31, 2022

2,586,772

2,649,114

151,091

1,091

Shareholders’ Equity and Others
I.

Nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)
1. Dividends paid
(Resolution)

Type of shares

Total dividends(Thousands of yen)

Dividends
per share(Yen)

Cut-off date

Effective date

Source ofdividends

Ordinary General
Meeting ofRetained
Common stock
769,365
12
March 31, 2021
June 21, 2021
Shareholders held on
earnings
June 18, 2021
(Note) Total dividends include 12,897 thousand yen of dividends to the Company’s own shares held in Trust Account E.

(Resolution)

Type of shares

Total dividends(Thousands of yen)

Dividends
per share(Yen)

Cut-off date

Effective date

Source ofdividends

Board of Directors
September 30,
November 29,
Retainedmeeting held on
Common stock
512,9098
2021
2021
earnings
October 29, 2021
(Note) Total dividends include 8,160 thousand yen of dividends to the Company’s own shares held in Trust Account E.

II. Nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)
1. Dividends paid
(Resolution)

Type of shares

Total dividends(Thousands of yen)

Dividends
per share(Yen)

Cut-off date

Effective date

Source ofdividends

Ordinary General
Meeting ofRetained
Common stock
705,250
11
March 31, 2022
June 20, 2022
Shareholders held on
earnings
June 17, 2022
(Note) Total dividends include 10,710 thousand yen of dividends to the Company’s own shares held in Trust Account E.

(Resolution)

Type of shares

Total dividends(Thousands of yen)

Dividends
per share(Yen)

Cut-off date

Effective date

Source ofdividends

Board of Directors
September 30,
November 29,
Retainedmeeting held on
Common stock
577,0219
2022
2022
earnings
October 31, 2022
(Note) Total dividends include 8,136 thousand yen of dividends to the Company’s own shares held in Trust Account E.

Segment Information and Others
Segment information
I.

Nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)
1. Information about net sales and profit or loss by reportable segment, and revenue breakdown(Thousands of yen)
Reportable segment

Net sales
Revenue generated
from contracts withcustomers
Sales to externalcustomers
Intersegment sales
or transfers
Total
Segment profit

Other(Note 1)

Total

Amountrecorded ontheAdjustment
consolidated(Note 2)statements
of income(Note 3)

TR

DH

EL

BC

Total

23,808,584

20,181,857

15,689,867

18,621,031

78,301,341

74,66678,376,008－

78,376,008

23,808,584

20,181,857

15,689,867

18,621,031

78,301,341

74,66678,376,008－

78,376,008

－

31

－

1,313

1,344

191,681

193,025(193,025)－

23,808,584

20,181,889

15,689,867

18,622,344

78,302,686

266,347

78,569,033(193,025)

78,376,008

1,930,817

1,430,378

296,955

856,648

4,514,799

16,671

4,531,470

59,5074,590,977(Notes) 1. The “Other” category is the business segment that is not included in the reportable segments, and represents thepurchase and sales of raw materials, etc.
2. The adjustment to segment profit represents 59,507 thousand yen in inter-segment eliminations.
3. Segment profit is adjusted to operating profit in the consolidated statements of income.

2. Information about impairment loss on non-current assets or goodwill and others by reportablesegment
Not applicable.
II.

Nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)
1. Information about net sales and profit or loss by reportable segment, and revenue breakdown(Thousands of yen)
Reportable segment

Net sales
Revenue generated
from contracts withcustomers
Sales to externalcustomers
Intersegment sales
or transfers
Total
Segment profit

Other(Note 1)

Total

Amountrecorded ontheAdjustment
consolidated(Note 2)statements
of income(Note 3)

TR

DH

EL

BC

Total

27,789,991

25,643,058

18,409,735

20,341,511

92,184,296

62,127

92,246,423－

92,246,423

27,789,991

25,643,058

18,409,735

20,341,511

92,184,296

62,127

92,246,423－

92,246,423

－

－

－

－

－

259,149

259,149(259,149)－

27,789,991

25,643,058

18,409,735

20,341,511

92,184,296

321,276

92,505,573(259,149)

92,246,423

2,661,867

1,157,224

736,698

990,6865,546,477

30,3005,576,778

62,1805,638,958(Notes) 1. The “Other” category is the business segment that is not included in the reportable segments and represents thepurchase and sales of raw materials, etc.
2. The adjustment to segment profit represents 62,180 thousand yen in inter-segment eliminations.
3. Segment profit is adjusted to operating profit in the consolidated statements of income.

2. Information about impairment loss on non-current assets or goodwill and others by reportablesegment
Not applicable.

Revenue recognition
Information on the breakdown of revenue generated from contracts with customers is as stated in “Segment
Information and Others.”
Per Share Information
Basic earnings per share and the basis for calculation thereof are as follows:
Nine months ended
December 31, 2021
(1) Basic earnings per share (Yen)

Nine months ended
December 31, 2022

52.77

56.34

3,328,310

3,560,432－－

3,328,310

3,560,432

63,077

63,189(Basis for calculation)
Profit attributable to owners of parent (Thousands of yen)Amount not attributable to common shareholders(Thousands of yen)
Profit attributable to owners of parent regarding common
stock (Thousands of yen)
Average number of shares of common stock outstanding
during the period (Thousands of shares)(Notes) 1. Shares in the Company remaining at the trust that were recorded as treasury shares under shareholders’ equity havebeen included in the treasury shares that should be deducted in calculating the average number of shares outstanding
during the period for the purpose of calculating basic earnings per share.
The average number of treasury shares during the period that were deducted for the purpose of calculating basic
earnings per share was 1,036 thousand shares for the nine months ended December 31, 2021 and 923 thousand
shares for the nine months ended December 31, 2022.
2. Diluted earnings per share are not presented because there are no potential shares.

Significant Subsequent Events
Not applicable.

2

Other

At the Board of Directors’ meeting held on October 31, 2022, the Company resolved to declare interim
dividends as follows:(1)
Total amount of interim dividends
577,021 thousand yen(2)
Amount per share
9.00 yen(3)
Effective date and payment commencement dateNovember 29, 2022
(Note 1) The payment is made to the shareholders registered in the Company’s Shareholder Registry as of
September 30, 2022.
(Note 2) Total dividends include 8,136 thousand yen of dividends to the Company’s own shares held inTrust Account E.