Note: This document has been translated from a part of the Japanese original for reference purposes only.
In the event of any discrepancy between this translated document and the Japanese original, the original
shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any otherforms of damages arising from the translation.
(Measures for electronic provision start on: May 29, 2024)

OTHER MATTERS FOR ELECTRONIC PROVISION MEASURESFOR THE 95TH ORDINARY GENERAL MEETING OF SHAREHOLDERS(MATTERS OMITTED IN THE PAPER COPY FOR DELIVERY)

Consolidated Financial Statements
Consolidated Statements of Changes in Net Assets
Notes to Consolidated Financial Statements
Non-Consolidated Financial Statements
Non-Consolidated Statements of Changes in Net Assets
Notes to Non-Consolidated Financial Statements(April 1, 2023 - March 31, 2024)

RIKEN TECHNOS CORPORATION-1-Consolidated Statements of Changes in Net Assets
95th fiscal year (April 1, 2023 - March 31, 2024)(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginning of period

8,514,018

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity6,597,580

41,463,280(406,095)

56,168,784

Changes during period
Dividends of surplus(1,795,173)(1,795,173)

Profit attributable to owners of parent

6,880,230

6,880,230

Purchase of treasury shares(7,000,249)(7,000,249)

Disposal of treasury shares

41,05341,0537,000,413–(7,000,413)

Cancellation of treasury shares(12,844)

Other(12,844)

Net changes in items other thanshareholders’ equity–

Total changes during period
Balance at end of period

8,514,018–
6,597,580(1,928,200)

41,217(1,886,983)

39,535,079(364,877)

54,281,800

Accumulated other comprehensive income
Valuation
Total accumulated Non-controlling
Foreign currency Remeasurements
difference on
otherinterests
translationof defined
available-for-salecomprehensive
adjustment
benefit planssecurities
incomeBalance at beginning of period

4,904,961

2,159,985(37,713)

7,027,233

8,969,215

Total net
assets72,165,232

Changes during period
Dividends of surplus(1,795,173)

Profit attributable to owners of parent

6,880,230

Purchase of treasury shares(7,000,249)

Disposal of treasury shares

41,053–Cancellation of treasury shares(12,844)

Other
Net changes in items other thanshareholders’ equity

1,621,913

1,063,634

445,569

3,131,117

607,960

3,739,078

Total changes during period

1,621,913

1,063,634

445,569

3,131,117

607,960

1,852,094

Balance at end of period

6,526,875

3,223,620

407,855

10,158,350

9,577,176

74,017,327

Note: Figures presented are rounded down to the nearest thousand yen.

-2-

Notes to Consolidated Financial Statements
Significant Matters in Preparing Consolidated Financial Statements
1. Basis of presentation of consolidated financial statements
The accompanying 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 Companies Act and its related accounting regulations, and in accordance with accounting
principles generally accepted in Japan (“Japanese GAAP”), which are different in certain respects as to theapplication and disclosure requirements of International Financial Reporting Standards (“IFRS”).
2. Scope of consolidation
Number of consolidated subsidiaries and names of principal consolidated subsidiaries
 Number of consolidated subsidiaries
16 Names of consolidated subsidiaries
RIKEN CABLE TECHNOLOGY CO., LTD.
KYOEI PLASTIC MFG CO., LTD.
RIKEN CHEMICAL PRODUCTS CO., LTD.
IMI Co., LTD.
RIKEN (THAILAND) CO., LTD.
RIKEN ELASTOMERS (THAILAND) CO., LTD.
PT. RIKEN INDONESIASHANGHAI RIKEN TECHNOS CORPORATIONRIKEN TECHNOS (JIANGSU) CORPORATIONRIKEN VIETNAM CO., LTD.
RIKEN TECHNOS INTERNATIONAL KOREACORPORATIONRIKEN TECHNOS INDIA PVT. LTD.
RIKEN U.S.A. CORPORATIONRIMTEC MANUFACTURING CORPORATIONRIKEN ELASTOMERS CORPORATIONRIKEN AMERICAS CORPORATIONRIKEN TECHNOS INTERNATIONALCORPORATION, which was a consolidated subsidiaryin the previous fiscal year, is excluded from the scopeof consolidation from the fiscal year under review, as it
was dissolved due to an absorption-type merger with
the Company as the surviving company.
3. Application of equity method
Non-consolidated subsidiaries accounted for by the equity method
 Number of non-consolidated subsidiaries orNoneaffiliates accounted for by the equity method
4. Fiscal year-end of consolidated subsidiaries
The fiscal year-end of consolidated subsidiaries is December 31. The financial statements as of their fiscal
year-end are consolidated because that date is not different by more than three months from the consolidated
fiscal year-end. However, for major transactions that occurred between that date and the consolidated balance
sheet date, the necessary adjustments are made in the consolidated financial statements.

-3-

5. Accounting policies(1) Valuation methods for significant assets
 Held-to-maturity bonds
Stated at amortized cost (straight-line method).
 Available-for-sale securities
Securities other than shares, etc.
Stated at fair value. (Unrealized gains and losses, net of applicablewithout market prices
taxes, are reported in a separate component of net assets, and costsof securities sold are determined by the moving-average method.)
Shares, etc. without market prices Stated at cost determined by the moving-average method.
 Valuation methods for inventories Inventories of the Company and domestic consolidated subsidiaries
are mainly stated at cost determined by the moving-average method(the carrying amounts in the consolidated balance sheets are written
down due to a decline in profitability). Inventories of overseas
consolidated subsidiaries are mainly stated at the lower of cost or
market, determined by the average method.
(2) Depreciation and amortization of significant assets
 Property, plant and equipment
The Company and domestic consolidated subsidiaries mainly apply(excluding leased assets)
the declining-balance method. However, buildings acquired on orafter April 1, 1998 (excluding facilities attached to buildings), andfacilities attached to buildings and structures acquired on or after
April 1, 2016 are depreciated by the straight-line method. Overseas
consolidated subsidiaries apply the straight-line method.
The estimated useful lives of major items are as follows:
Buildings and structures
3 to 47 years
Machinery, equipment and vehicles
4 to 10 years
 Intangible assets (excluding leased The Company and domestic consolidated subsidiaries apply theassets)straight-line method. Internal use software is amortized by thestraight-line method over its estimated useful life as internallydetermined (five years).
 Leased assets
The Company and domestic consolidated subsidiaries apply thestraight-line method assuming the lease periods as useful lives withno residual value.
(3) Significant standards for the recognition of allowances Allowance for doubtful accounts
To cover losses from bad debts for notes and accounts receivable trade, loans receivable and others, an allowance for doubtful
accounts is provided based on historical experience of bad debts forgeneral receivables. For specific receivables, such as highly
doubtful receivables, the collectibility is individually considered
and the estimated amount of uncollectible accounts is provided as
the allowance.
 Provision for bonuses
To cover bonus payments to employees, a provision for bonuses isprovided in the amount to be paid for services rendered by
employees based mainly on the estimated amount of future bonus
payment.
 Provision for bonuses for directors To cover bonus payments to Directors (excluding Directors who are(and other officers)
Audit & Supervisory Committee Members) and Executive Officers,
the Company records a provision for bonuses for directors (andother officers) in the amount of the portion applicable to the fiscal
year, based on the estimated amount of future bonus payment.
 Provision for share awards for
To cover provision of shares in the Company to Directors anddirectors (and other officers)
Executive Officers, the Company records a provision for executive
officer incentive plan trust based on the estimated amount of shareprovision obligations as of the end of the current fiscal year.

-4-(4) Method of recognizing retirement benefits Method of attributing estimated retirement benefits to periods
For the purpose of attributing estimated retirement benefits to periods up to the end of the current
fiscal year in the calculation of retirement benefit obligations, the benefit formula method is applied.
 Method of amortizing actuarial differences and past service cost
Past service cost is amortized by the straight-line method over a certain term within the averageremaining service period of the eligible employees (13 years).
With regard to actuarial differences, the amount is amortized by the straight-line method over a certain
term within the average remaining service period of the eligible employees (13 years) for eachapplicable fiscal year, and expensed from the year following the year in which the gain or loss isrecognized.
 Method of accounting for unrecognized actuarial differences and unrecognized past service cost
Unrecognized actuarial differences and unrecognized past service cost are recognized inremeasurements of defined benefit plans under accumulated other comprehensive income in net assets
after adjusting for tax effects.
 Application of simplified accounting method at small companies
Some consolidated subsidiaries apply a simplified accounting method in which the retirement benefit
liability and retirement benefit expenses are calculated by using a method in which the amount of
retirement benefits to be paid in cases where all eligible employees retired at the fiscal year-end dateis regarded as retirement benefit obligations.
(5) Significant standards for the recognition of revenue and expenses
Revenue from the sale of products and merchandise arises mainly from the manufacture and sale ofcompound products, film products and food wrapping film products, and the sale of merchandise. The
Company or its consolidated subsidiary assumes performance obligations to deliver these products ormerchandise in accordance with sales contracts with customers. The Company or its consolidated
subsidiary considers that these performance obligations are fulfilled at the time of delivery, when thecustomer gains control over the product or merchandise, and revenue is recognized at this time. However,revenue from sales within Japan is recognized at the time of shipment. For export sales, the Company
considers that its performance obligations are fulfilled when the products arrive at the place agreed uponwith the customer, and revenue is recognized at that time.
Furthermore, with regard to transactions in which the Company or its consolidated subsidiary is
considered to act in the capacity of an agent, the net amount receivable in exchange for merchandiseprovided by the third-party supplier, after deducting the amount payable to the third-party supplier, isrecognized as revenue.

-5-(6) Other significant matters in preparing consolidated financial statements
 Significant hedge accounting
For foreign currency-denominated monetary receivables and payables and others that have been
hedged by forward exchange contracts, the allocation method is used. For interest rate swap contracts,
the Company and its domestic consolidated subsidiaries apply the method in which the amount paidor received under the swap contract is added to or deducted from the interest on the hedged assets andliabilities (the exceptional accrual method), in cases where the requirements for the method aresatisfied.
 Transactions of delivering the Company’s own stock to employees etc. through trusts
Board Benefit Trust (BBT)In accordance with the resolution at the 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 officers toward their contributions toimproving the mid- to long-term corporate performance and increasing the corporate value.
Overview of transactions

Accounting method

Shares in the Company
held by the trust

Based on the officers’ stock benefit plan which was established inadvance, the Company and its group companies (the “Group”) grant
points to officers. At the time of their retirement, the Group provides
shares in the Company to those who satisfy requirements forbeneficiaries in proportion to the points which the Group has
granted to them.
With regard to the shares which will be provided to officers in the
future, a trust bank acquires the Company’s treasury shares throughthird-party allotment by using the trust of money established by theGroup. Such shares are managed as trust assets separately.
The gross method is applied pursuant to “Practical Solution on
Transactions of Delivering the Company’s Own Stock to
Employees etc. through Trusts” (PITF No.30, March 26, 2015).
Expenses and provisions corresponding thereto are recorded basedon the number of points granted to officers in accordance with theplan.
The shares in the Company held by the trust are recorded as thetreasury shares in net assets with the book value (excluding
associated costs) at the trust. The book value and number of thesetreasury shares as of the end of the fiscal year under review were
270,072 thousand yen and 587 thousand shares, respectively.

-6-

Stock Benefit Trust (Employee Stockholding Association Purchase-type)
For the purpose of promoting welfare benefits for employees, the Company conducts transactions ofdelivering the Company’s own stock to employees through trusts.
Overview of transactions
The plan is an incentive plan under which the benefits of a rise in
the Company’s stock price are passed 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 be acquired 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, theaccumulated amount is distributed as residual assets to the membersof the Company’s employee Stockholding Association who satisfy
eligibility requirements for beneficiaries. The Company has
guaranteed loans that the trust bank received to acquire shares in the
Company. Therefore, if there is remaining loan amount that isequivalent 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,the Company is required to pay the remaining loan amount under
the guarantee agreement.
Accounting method“Practical Solution on Transactions of Delivering the Company’s
Own Stock to Employees etc. through Trusts” (PITF No.30, March
26, 2015) is applied.
Shares in the Company
The shares in the Company held by the trust are recorded as theheld by the trust
treasury shares in net assets with the book value (excluding
associated costs) at the trust. The book value and number of thesetreasury shares as of the end of the fiscal year under review were
94,804 thousand yen and 185 thousand shares, respectively.
 Amortization of goodwill
Goodwill is amortized evenly over the period, not exceeding 20 years, during which the goodwill has
an effect. However, when the amount of goodwill is insignificant, it is charged to income at the dateof occurrence.

-7-

Notes to Revenue Recognition
1. Information on the breakdown of revenue generated from contracts with customers(Thousands of yen)
Reportable segment

Net sales
Revenue generated
from contracts withcustomers
Sales to externalcustomers

TR

DH

EL

BC

Total

40,004,145

34,055,970

25,022,093

26,601,003 125,683,212

40,004,145

34,055,970

25,022,093

26,601,003 125,683,212

Adjustment

Amountrecorded ontheconsolidated
financialstatements

55,903 125,739,116－

125,739,116

55,903 125,739,116－

125,739,116

Other

Total

Note: The name, abbreviation, and main markets of each respective reportable segment are as follows.
The terms in parentheses are abbreviations for the reportable segments.
 Transportation (TR): automobile, railroad, and shipping markets, etc.
 Daily Life & Healthcare (DH): healthcare, consumer goods, and food wrapping film markets, etc.
 Electronics (EL): energy, communications, and IT equipment markets, etc.
 Building & Construction (BC): housing, buildings, construction materials, and civil engineering markets
2. Information fundamental to an understanding of revenue generated from contracts with customers
Information fundamental to an understanding of revenue generated from contracts with customers is as statedin “5. Accounting policies (5) Significant standards for the recognition of revenue and expenses” under“Significant Matters in Preparing Consolidated Financial Statements.”

Notes to Consolidated Balance Sheets
Accumulated depreciation of property, plant and equipment: 76,833,654 thousand yen-8-Notes to Consolidated Statements of Changes in Net Assets
1. Total number of issued shares(Thousands of shares)
Type of shares
Common stock

Number of shares at the
beginning of the fiscal
year under review

Increase

64,113

Decrease–

8,338

Number of shares at theend of the fiscal year
under review
55,775

2. Appropriation of surplus
1) Dividends paidDividends pursuant to resolution at the 94th Ordinary General Meeting of Shareholders held on June
16, 2023
Total dividends
1,025,815 thousand yen
Dividends per share
16 yenCut-off date
March 31, 2023
Effective dateJune 19, 2023
Note: Total dividends include dividends on treasury shares of 13,668 thousand yen held by the trustthat was established upon introduction of the Board Benefit Trust (BBT) and Stock Benefit
Trust (Employee Stockholding Association Purchase-type).



Dividends pursuant to resolution at the Board of Directors meeting held on October 30, 2023
Total dividends
769,357 thousand yen
Dividends per share
12 yenCut-off date
September 30, 2023
Effective dateNovember 29, 2023
Note: Total dividends include dividends on treasury shares of 9,702 thousand yen held by the trustthat was established upon introduction of the Board Benefit Trust (BBT) and Stock Benefit
Trust (Employee Stockholding Association Purchase-type).

2) Dividends whose cut-off date is in the current fiscal year and whose effective date is in the following
fiscal yearThe following shall be submitted to the 95th Ordinary General Meeting of Shareholders to be heldon June 21, 2024.
Total dividends
1,115,502 thousand yen
Source of dividends
Retained earnings
Dividends per share
20 yenCut-off date
March 31, 2024
Effective dateJune 24, 2024
Note: Total dividends include dividends on treasury shares of 15,476 thousand yen held by the trustthat was established upon introduction of the Board Benefit Trust (BBT) and Stock Benefit
Trust (Employee Stockholding Association Purchase-type).

-9-

Financial Instruments
1. Overview of financial instruments
The Company and its consolidated subsidiaries invest their excess funds in safe financial instruments withlow risks by reference to external ratings and others, pursuant to internal regulations.
The Group reduces customer credit risk associated with notes and accounts receivable - trade, by monitoringcustomer credit in conformity with standards such as credit control regulations and by periodic review.
Investment securities are listed stocks mainly for the purpose of holding for the long term, which areevaluated on a fair value basis each quarterly period.
Procuring funds through borrowings is limited to fund raising essential to business operations, such as for
operating funds and capital investment. Derivative transactions are executed pursuant to the policy underinternal regulations and are basically limited within actual demands.
2. Fair values of financial instruments
The carrying amounts in the consolidated balance sheets and the fair values, and difference between them asof March 31, 2024 (the consolidated balance sheet date for the fiscal year under review) are shown below.
Shares, etc. without market prices (carrying amount in consolidated balance sheets: 134,158 thousand yen)
are not included in “(2) Investment securities: Available-for-sale securities.” “Cash and deposits,” “Notes
receivable - trade,” “Accounts receivable - trade,” “Electronically recorded monetary claims - operating,”“Notes and accounts payable - trade,” “Electronically recorded obligations - operating,” “Income taxes
payable” and “Accrued consumption taxes” are omitted from the table below as they are cash-based, they
are settled in a short period of time and their fair values therefore approximate their book values. In derivativetransactions, since items subject to the exceptional accrual method for interest rate swaps are accounted fortogether with the long-term borrowings that are the hedged items, the fair values thereof are included in thefair values of the corresponding long-term borrowings (please refer to “Liabilities (2) Current portion of
long-term borrowings and (4) Long-term borrowings”).
(Thousands of yen)

(1) Short-term loans receivable(2) Investment securities
Available-for-sale securities(3) Long-term loans receivable
Total assets(1) Short-term borrowings(2) Current portion of long-termborrowings(3) Lease liabilities (Current liabilities)(4) Long-term borrowings(5) Leaseliabilities(Non-current
liabilities)
Total liabilities
Derivative transactions

Carrying amount inconsolidated balance sheets
422

Fair value

Difference422

010,375,593
1,483
10,377,499
7,749,221

10,375,593
1,483
10,377,499
7,749,221–
000577,563561,793(15,770)

23,633
1,768,768

23,633
1,750,098

0(18,669)

32,93632,9360

10,152,123–

10,117,683–(34,439)–- 10 -

3. Breakdown of financial instruments by level of fair value
The fair value of financial instruments is classified into the following three levels on the basis of theobservability and significance of the inputs used to calculate fair value:
Level 1 fair value: Fair value calculated using observable inputs that are market prices formed in active
markets for the assets or liabilities for which fair value is to be calculated
Level 2 fair value: Fair value calculated using observable inputs other than those used to calculate Level 1
fair value
Level 3 fair value: Fair value calculated using unobservable inputs
When multiple inputs that may have a material impact on the calculation of fair value are used, the calculated
fair value is classified at the lowest level of the inputs used.

(1) Financial instruments carried on the consolidated balance sheets at fair value
As of March 31, 2024
(Thousands of yen)
Category
Investment securities
Available-for-sale securities
SharesTotal assets

Fair value
Level 1

Level 2

Level 3

Total

10,375,593––

10,375,593

10,375,593––

10,375,593(2) Financial instruments other than those carried on the consolidated balance sheets at fair value
As of March 31, 2024
(Thousands of yen)
Category

Fair value
Level 1

Level 2

Level 3

Total

Short-term loans receivable

–

422

–

422

Long-term loans receivable

–

1,483

–

1,483

Total assets
Short-term borrowings
Current portion of long-termborrowings
Lease liabilities (Current liabilities)
Long-term borrowings
Lease liabilities (Non-current
liabilities)
Total liabilities

–
–

1,905
7,749,221

–
–

1,905
7,749,221–

561,793–561,793––

23,633
1,750,098––

23,633
1,750,098–

32,936–32,936–

10,117,683–

10,117,683(Note) Explanation of the valuation techniques and inputs used to calculate fair value
Investment securities
Listed shares are valued with quoted prices. Because listed shares are traded in active markets, theirfair value is classified as Level 1 fair value.

Short-term and long-term loans receivable
The fair value of these loans receivable is calculated as the present value of the sum of principal andinterest amounts, discounted using the estimated rates applicable for new loans, and is classified as
Level 2 fair value.

- 11 -

Short-term borrowings and lease liabilities
Fair value is calculated as the present value of the sum of principal and interest amounts, discounted
using the estimated rates applicable for similar new borrowings or lease transactions, and is classified
as Level 2 fair value.

Long-term borrowings
The fair value of long-term borrowings is calculated as the present value of the sum of principal andinterest amounts, discounted using an interest rate that reflects the remaining term of the liability andcredit risk, and is classified as Level 2 fair value. Long-term borrowings using floating interest rates
are subject to the special accounting treatment for interest rate swaps. Fair value is calculated as thepresent value of the sum of principal and interest amounts treated as a single item together with therelevant interest rate swap, discounted using an interest rate that reflects the remaining term of theliability and credit risk, and is classified as Level 2 fair value.

Per Share Information
1. Net assets per share

1,171.61 yen

2. Basic earnings per share

114.24 yen

Note: Net assets per share and basic earnings per share have been calculated based on the total number ofshares outstanding at the fiscal year-end and the average number of shares outstanding during the period
after deducting treasury shares. The number of treasury shares at the fiscal year-end includes the numberof treasury shares held by the trust that was established upon introduction of the Board Benefit Trust(BBT) and Stock Benefit Trust (Employee Stockholding Association Purchase-type). The average
number of shares outstanding during the period includes the average number of treasury shares during
the period held by the trust that was established upon introduction of the Board Benefit Trust (BBT) andStock Benefit Trust (Employee Stockholding Association Purchase-type).

Significant Subsequent Events
Not applicable.

- 12 -

Non-Consolidated Statements of Changes in Net Assets
95th fiscal year (April 1, 2023 - March 31, 2024)(Thousands of yen)
Shareholders’ equity
Capital surplus
Share capital

Balance at beginning of period

Retained earnings
Other retained
earnings

Legal capitalsurplus

Total capitalsurplus

Legal retained earnings

8,514,018

6,532,977

6,532,977

1,107,369

12,000,000

–

–

–

–

–

8,514,018

6,532,977

6,532,977

1,107,369

12,000,000

General reserve

Changes during period
Dividends of surplus
ProfitPurchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

Valuation andtranslation adjustments

Shareholders’ equity
Retained earnings
Other retained
earnings
Retained earnings
brought forward

Total retained
earnings

Treasury shares

Total shareholders’equityValuation difference on
available-for-salesecurities(406,095)

49,566,451

4,902,924

Total
net assets

21,818,180

34,925,549

Dividends of surplus(1,795,173)(1,795,173)(1,795,173)(1,795,173)

Profit6,640,720

6,640,720

6,640,720

6,640,720

Balance at beginning of period

54,469,375

Changes during period

Purchase of treasury shares(7,000,249)(7,000,249)(7,000,249)

Disposal of treasury shares

41,05341,05341,0537,000,413––

Cancellation of treasury shares(7,000,413)(7,000,413)

Net changes in items other thanshareholders’ equity

1,617,284

1,617,284

Total changes during period(2,154,866)(2,154,866)

41,217(2,113,649)

1,617,284(496,364)

Balance at end of period

19,663,313

32,770,683(364,877)

47,452,802

6,520,209

53,973,011

Note: Figures presented are rounded down to the nearest thousand yen.

- 13 -

Notes to Non-Consolidated Financial Statements
Notes to Significant Accounting Policies
1. Valuation methods for assets(1) Valuation methods for securities Held-to-maturity bonds
 Shares of subsidiaries andaffiliates Available-for-sale securities
Securities other than shares, etc.
without market prices
Shares, etc. without market prices

Stated at amortized cost (straight-line method).
Stated at cost determined by the moving-average method.
Stated at fair value. (Unrealized gains and losses, net of applicabletaxes, are reported in a separate component of net assets, and costsof securities sold are determined by the moving-average method.)Stated at cost determined by the moving-average method.

(2) Valuation methods for inventories
Stated at cost determined by the moving-average method. (Thecarrying amounts in the non-consolidated balance sheets are written
down due to a decline in profitability).
2. Depreciation and amortization of assets(1) Property, plant and equipment
The declining-balance method is applied. (However, buildings(excluding leased assets)acquired on or after April 1, 1998 (excluding facilities attached tobuildings), and facilities attached to buildings and structuresacquired on or after April 1, 2016 are depreciated by the straightline method.)
The estimated useful lives of major items are as follows:
Buildings and structures
3 to 47 years
Machinery and equipment
8 years
Tools, furniture and fixtures 2 to 15 years(2) Intangible assets (excluding
The straight-line method is applied. (Internal use software isleased assets)
amortized by the straight-line method over its estimated useful life
as internally determined (five years)).
(3) Leased assets
The straight-line method is applied assuming the lease periods asuseful lives with no residual value.

- 14 -

3. Standards for the recognition of allowances(1) Allowance for doubtful accounts To cover losses from bad debts for notes and accounts receivable trade, loans receivable and others, an allowance for doubtful
accounts is provided based on historical experience of bad debts forgeneral receivables. For specific receivables, such as highly
doubtful receivables, the collectibility is individually considered
and the estimated amount of uncollectible accounts is provided as
the allowance.
(2) Provision for bonuses
To cover bonus payments to employees, a provision for bonuses isprovided in the amount to be paid for services rendered by
employees based mainly on the estimated amount of future bonus
payment.
(3) Provision for bonuses for
To cover bonus payments to Directors (excluding Directors who are
directors (and other officers)
Audit & Supervisory Committee Members) and Executive Officers,
the Company records a provision for bonuses for directors (andother officers) in the amount of the portion applicable to the fiscal
year, based on the estimated amount of future bonus payment.
(4) Provision for share awards for
To cover provision of shares in the Company to Directors anddirectors (and other officers)
Executive Officers, the Company records a provision for executive
officer incentive plan trust based on the estimated amount of shareprovision obligations as of the end of the current fiscal year.
(5) Provision for retirement benefits To cover payments of retirement benefits to employees, theCompany records a provision based on the estimated amount of
retirement benefit obligations and plan assets as of the end of thecurrent fiscal year.
Past service cost is amortized by the straight-line method over acertain term within the average remaining service period of theeligible employees (13 years).
Actuarial differences are amortized by the straight-line method overa certain term within the average remaining service period of theeligible employees (13 years) for each applicable fiscal year, andexpensed from the year following the year in which the gain or loss
is recognized.
4. Standards for the recognition of revenue and expenses
Revenue from the sale of products and merchandise arises mainly from the manufacture and sale ofcompound products, film products and food wrapping film products, and the sale of merchandise. The
Company or its consolidated subsidiary assumes performance obligations to deliver these products ormerchandise in accordance with sales contracts with customers. The Company or its consolidated subsidiaryconsiders that these performance obligations are fulfilled at the time of delivery, when the customer gains
control over the product or merchandise, and revenue is recognized at this time. However, revenue fromsales within Japan is recognized at the time of shipment. For export sales, the Company considers that its
performance obligations are fulfilled when the products arrive at the place agreed upon with the customer,
and revenue is recognized at that time.
Furthermore, with regard to transactions in which the Company is considered to act in the capacity of anagent, the net amount receivable in exchange for merchandise provided by the third-party supplier, after
deducting the amount payable to the third-party supplier, is recognized as revenue.

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5. Other significant matters in preparing non-consolidated financial statements(1) Method of recognizing retirement benefits
Method of accounting for unrecognized actuarial differences and unrecognized past service cost in
retirement benefits is different from the accounting method applied in the consolidated financial statements.
(2) Significant hedge accounting
For interest rate swap contracts, the Company applies the method in which the amount paid or received
under the swap contract is added to or deducted from the interest on the hedged assets and liabilities (theexceptional accrual method), in cases where the requirements for the method are satisfied.
(3) Transactions of delivering the Company’s own stock to employees etc. through trusts Board Benefit Trust (BBT)In accordance with the resolution at the 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 officers toward their contributions toimproving the mid- to long-term corporate performance and increasing the corporate value.
Overview of transactions
Based on the officers’ stock benefit plan which was established inadvance, the Company and its group companies (the “Group”) grant
points to officers. At the time of their retirement, the Group provides
shares in the Company to those who satisfy requirements forbeneficiaries in proportion to the points which the Group has
granted to them.
With regard to the shares which will be provided to officers in the
future, a trust bank acquires the Company’s treasury shares throughthird-party allotment by using the trust of money established by theCompany. Such shares are managed as trust assets separately.
Accounting method
The gross method is applied pursuant to “Practical Solution on
Transactions of Delivering the Company’s Own Stock to
Employees etc. through Trusts” (PITF No.30, March 26, 2015).
Expenses and provisions corresponding thereto are recorded basedon the number of points granted to officers in accordance with theplan.
Shares in the Company held
The shares in the Company held by the trust are recorded as theby the trust
treasury shares in net assets with the book value (excluding
associated costs) at the trust. The book value and number of thesetreasury shares as of the end of the fiscal year under review were
270,072 thousand yen and 587 thousand shares, respectively.

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 Stock Benefit Trust (Employee Stockholding Association Purchase-type)
For the purpose of promoting welfare benefits for employees, the Company conducts transactions ofdelivering the Company’s own stock to employees through trusts.
Overview of transactions
The plan is an incentive plan under which the benefits of a rise in
the Company’s stock price are passed 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 be acquired 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, theaccumulated amount is distributed as residual assets to the membersof the Company’s employee Stockholding Association who satisfy
eligibility requirements for beneficiaries. The Company has
guaranteed loans that the trust bank received to acquire shares in the
Company. Therefore, if there is remaining loan amount that isequivalent 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,the Company is required to pay the remaining loan amount under
the guarantee agreement.
Accounting method“Practical Solution on Transactions of Delivering the Company’s
Own Stock to Employees etc. through Trusts” (PITF No.30, March
26, 2015) is applied.
Shares in the Company held
The shares in the Company held by the trust are recorded as theby the trust
treasury shares in net assets with the book value (excluding
associated costs) at the trust. The book value and number of thesetreasury shares as of the end of the fiscal year under review were
94,804 thousand yen and 185 thousand shares, respectively.

Notes to Revenue Recognition
Information fundamental to an understanding of revenue generated from contracts with customers is as statedin “Notes to Revenue Recognition” in Notes to Consolidated Financial Statements.

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Notes to Non-Consolidated Balance Sheets
1. Accumulated depreciation of property, plant and equipment: 45,625,333 thousand yen
2. Guaranteed liabilities
The Company guarantees loans of subsidiaries and associates obtained from financial institutions, etc.
(Thousands of yen)
RIKEN VIETNAM CO., LTD.
1,918,995
SHANGHAI RIKEN TECHNOS CORPORATION
197,229
RIKEN AMERICAS CORPORATION
148,883
RIKEN U.S.A. CORPORATION
121,120
RIKEN ELASTOMERS (THAILAND) CO., LTD.
104,000
RIKEN TECHNOS (JIANGSU) CORPORATION
58,325
RIKEN TECHNOS INTERNATIONAL KOREA CORPORATION
11,2403. Monetary receivables from and payables to subsidiaries and associates are as follows.
(1) Short-term monetary receivables: 1,853,369 thousand yen(2) Short-term monetary payables: 149,782 thousand yen

Notes to Non-Consolidated Statements of Income
Transactions with subsidiaries and associates(1) Net sales(2) Purchases(3) Selling, general and administrative expenses(4) Transactions other than operating transactions(Thousands of yen)
4,078,339
1,097,191
119,901
1,881,255

Notes to Non-Consolidated Statements of Changes in Net Assets
Number of treasury shares
Number of treasury shares as of the fiscal year-end
Common stock

773 thousand shares

Notes: 1. Common stock includes 587 thousand treasury shares held by the trust that was established upon
introduction of the Board Benefit Trust (BBT).
2. Common stock includes 185 thousand treasury shares held by the trust that was established upon
introduction of the Stock Benefit Trust (Employee Stockholding Association Purchase-type).

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Notes to Tax Effect Accounting
Significant components of deferred tax assets and liabilities(Thousands of yen)
Deferred tax assets
Allowance for doubtful accounts
Provision for retirement benefits
Impairment losses
Asset retirement obligations
Provision for bonuses
Enterprise tax payable
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries and associates
Loss on valuation of investments in capital of subsidiaries andassociates
Other
Subtotal of deferred tax assets
Valuation allowance related to net operating losses carryforward
Valuation allowance related to total deductible temporary
difference, etc.
Subtotal of valuation allowance
Total deferred tax assets
Deferred tax liabilities
Property, plant and equipment (asset retirement obligations)Prepaid pension costs
Valuation difference on available-for-sale securities
Other
Total deferred tax liabilities
Net deferred tax assets- 19 -

25,843685,070299,217
101,744
280,886
93,951
101,637
56,137
705,578
230,1622,580,230－(1,156,984)(1,156,984)
1,423,246(30,022)(281,826)(2,735,339)(15,766)(3,062,954)(1,639,708)

Notes to Transactions with Related Parties
Not applicable.

Per Share Information
1. Net assets per share981.30 yen

2. Basic earnings per share110.26 yen

Note: Net assets per share and basic earnings per share have been calculated based on the total number ofshares outstanding at the fiscal year-end and the average number of shares outstanding during theperiod after deducting treasury shares. The number of treasury shares at the fiscal year-end includes
the number of treasury shares held by the trust that was established upon introduction of the Board
Benefit Trust (BBT) and Stock Benefit Trust (Employee Stockholding Association Purchase-type).
The average number of shares outstanding during the period includes the average number of treasury
shares during the period held by the trust that was established upon introduction of the Board Benefit
Trust (BBT) and Stock Benefit Trust (Employee Stockholding Association Purchase-type).

Significant Subsequent Events
Not applicable.

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