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)First quarter of
the 93rd term

From April 1, 2021
to June 30, 2021

RIKEN TECHNOS CORPORATION
2-101, Kanda-Awajicho, Chiyoda-ku, Tokyo, JapanQuarterly Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and 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 June 30, 2021

21,106,010
21,143,908

21,136,032
21,979,766

2,162,815

2,338,438

6,227,760
692,289
5,372,437
948,638(83,920)
57,569,939

7,345,776
798,167
6,032,225
960,720(84,255)
60,506,872

9,917,194
8,390,108
6,282,764
59,298231,171590,426
25,470,963

10,118,928
8,400,689
6,325,470
52,882300,928
592,639
25,791,540

542,063
2,919
1,808,885
2,353,868

491,699
2,337
1,904,055
2,398,092

7,736,267
14,269883,374
418,840
764,382(3,045)9,814,089
37,638,921
95,208,860

7,661,594
13,095901,281419,297
743,862(2,320)9,736,810
37,926,442
98,433,315

(Thousands of yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease obligations
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
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*1

16,139,497
6,976,725
448,983
20,560885,287
721,429

As of June 30, 2021

*1

18,217,551
7,012,818
471,046
17,080544,208
348,152

84,70922,0462,803,299
28,080,491

3,627,394
30,260,297

2,819,082
26,361
1,545,671

2,876,578
24,5101,568,384

140,640

149,056

1,052,229
332,387
135,141
6,051,514
34,132,006

1,053,794
333,583
135,046
6,140,953
36,401,251

8,514,018
6,597,580
35,561,518(517,035)
50,156,082

8,514,018
6,597,580
35,918,275(510,717)
50,519,157

3,999,879

3,943,071(460,662)
46,021
3,585,238
7,335,533
61,076,854
95,208,860

210,672
58,422
4,212,166
7,300,740
62,032,063
98,433,315

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Thousands of yen)Three months ended
June 30, 2020
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
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

Three months ended
June 30, 2021

21,696,594
17,894,037
3,802,556
2,889,222
913,334

24,870,043
20,278,340
4,591,702
2,934,606
1,657,096

7,111
78,352－
29,035
114,499

5,249
93,19429,80857,356
185,609

42,995
15,17722,973
81,145
946,687

26,481－
17,27743,7591,798,945

5,009
－
－
5,009

471
3
1,010
1,486

778
3,485
4,263
947,433
266,941
680,491
331,868
348,622－763
763
1,799,668
436,190
1,363,478
217,775
1,145,703

Consolidated Statements of Comprehensive Income(Thousands of yen)Three months ended
June 30, 2020
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

Three months ended
June 30, 2021

680,491

1,363,478

460,264(1,146,395)
26,352(659,778)
20,713(56,851)
1,046,880
12,4001,002,429
2,365,908

196,666

1,772,630(175,953)

593,277

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.
Changes in Accounting Policies(Application of the Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (Accounting Standards Boardof Japan (ASBJ) Statement No. 29, March 31, 2020; hereinafter the “Revenue Recognition AccountingStandard”), etc. effective from the beginning of the first quarter under review, and recognizes revenue in theamount expected to be received in exchange for promised goods or services at the time when the control ofthese goods or services is transferred to the customer. Accordingly, with regard to charged supplying tocustomers, the Company has shifted to the method by which it does not recognize extinguishment of the
supplied goods, in cases where it assumes the obligation to repurchase the supplied goods. Additionally, interms of export transactions, the Company has changed its method of revenue recognition by which revenue isrecognized at the time of arrival at the place that the Company and customers had agreed upon, deeming our
performance obligations to have been fulfilled at that time. Furthermore, with regard to certain transactions inwhich the Group acts as an agent in providing the goods or services to a customer, the Company has changed
its method and recognizes revenue in the net amount.
The application of the Revenue Recognition Accounting Standard, etc. is subject to the transitional treatment
provided for in the proviso to Paragraph 84 of the Revenue Recognition Accounting Standard. Accordingly,
the cumulative effect of the retrospective application of the new accounting policy, assuming it has been
applied to periods prior to the beginning of the first quarter under review, is added to or subtracted fromretained earnings at the beginning of the first quarter under review, and the new accounting policy is applied
from the said beginning balance.
As a result, for the three-month period under review, net sales decreased by 271,131 thousand yen, cost of
sales decreased by 258,738 thousand yen, and operating profit, ordinary profit, and profit before income taxes
decreased by 12,392 thousand yen, respectively. Additionally, accounts receivable – trade decreased by
123,843 thousand yen, inventories increased by 94,176 thousand yen, and the beginning balance for retained
earnings of the first quarter under review decreased by 11,984 thousand yen.
Furthermore, in accordance with the transitional treatment stipulated in Paragraph 28-15 of the “AccountingStandard for Quarterly Financial Reporting” (ASBJ Statement No. 12, March 31, 2020), information on the
breakdown of revenue generated from contracts with customers for the three months ended June 30, 2020 is
not provided.
(Application of the Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30,
July 4, 2019; hereinafter the “Fair Value Measurement Accounting Standard”), etc. effective from the
beginning of the first quarter under review and in accordance with the transitional treatment provided for in
Paragraph 19 of the Fair Value Measurement Accounting Standard and Paragraph 44-2 of the “AccountingStandard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019), the Company will apply the new
accounting policy prescribed by the Fair Value Measurement Accounting Standard, etc. into the future. Thisapplication has no impact on the quarterly consolidated financial statements.

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 first 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.
(a) 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 to them.
With regard to the shares which will be provided to Directors etc. in the future, a trust bank acquires
the Company’s treasury shares through third-party allotment by using the money contributed by theCompany. Such shares are managed as trust assets separately.
(b) 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 282,476 thousand yen and 614 thousand shares,
respectively, while those as of the end of the first quarter under review were 282,476 thousand yen
and 614 thousand shares, respectively.
(c) 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 May 24, 2017.
(a) 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, theaccumulated amount is distributed as residual assets to the members of 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 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.
(b) 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 234,538 thousand yen and 459 thousand shares,
respectively, while those as of the end of the first quarter under review were 228,215 thousand yen
and 447 thousand shares, respectively.
(c) Book value of borrowings recorded due to the application of the gross method
229,957 thousand yen as of the end of the first quarter under review

Notes to Consolidated Balance Sheets*1. Overdraft agreements and unused overdraft facility balanceTo efficiently secure equipment funds, the Company and its domestic consolidated subsidiaries haveentered into overdraft agreements with banks with which they do business.
The unused balance of these prescribed limit agreements is as follows:
As of March 31, 2021

(Thousands of yen)
As of June 30, 2021

Total overdraft facility limit
Outstanding borrowings within the limit

12,180,000
4,965,000

12,030,000
4,915,000

Unused balance

7,215,000

7,115,000

Notes to Consolidated Statements of Income
Not applicable.
Notes to Consolidated Statements of Cash FlowsThe consolidated statements of cash flows for the three-month period under review were not prepared.
Depreciation (including amortization of intangible assets except for goodwill) and amortization of
goodwill for the three-month period under review are as follows:
Three months ended
June 30, 2020

(Thousands of yen)Three months ended
June 30, 2021

Depreciation

883,501

851,364

Amortization of goodwill

50,36350,363

Shareholders’ Equity and Others
I.

Three months ended June 30, 2020 (from April 1, 2020 to June 30, 2020)
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
510,777
8
March 31, 2020
June 22, 2020
Shareholders held on
earnings
June 19, 2020
(Note) Total dividends include 6,597 thousand yen of dividends to the Company’s own shares held in Trust Account E.

II. Three months ended June 30, 2021 (from April 1, 2021 to June 30, 2021)
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.

Segment Information and Others
Segment information
I.

Three months ended June 30, 2020 (from April 1, 2020 to June 30, 2020)
1. Information about net sales and profit or loss by reportable segment(Thousands of yen)
Reportable segment

Net sales(1) Sales to externalcustomers(2) Intersegment
sales or transfers
Total
Segment profit (loss)

TR

DH

EL

BC

Total

Other
(Note 1)

Total

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

6,288,255

5,774,371

4,261,145

5,242,198

21,565,971

130,622

21,696,594－

21,696,594

－

－

－

－

－

79,91579,915(79,915)－

6,288,255

5,774,371

21,565,971

210,537

21,776,509(79,915)

21,696,594

617,765

514,255

896,833(107)

896,726

16,607913,334

4,261,145 5,242,198(76,388)(158,797)(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 (loss) represents 16,607 thousand yen in inter-segment eliminations.
3. Segment profit (loss) 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.

Three months ended June 30, 2021 (from April 1, 2021 to June 30, 2021)
1. Information about net sales and profit or loss by reportable segment, and revenue breakdown(Thousands of yen)
Reportable segment

Net sales(1) Sales to externalcustomers(2) Intersegment
sales or transfers
Total
Segment profit (loss)

Total

Amountrecorded ontheAdjustment
consolidated(Note 2)statements
of income(Note 3)22,44924,870,043－

24,870,043－

72,76872,768(72,768)－

5,864,260

24,847,593

95,21824,942,811(72,768) 24,870,043

282,699

1,656,580

18,421

1,675,001(17,904)

Other(Note 1)

TR

DH

EL

BC

Total

7,817,080

6,423,018

4,743,233

5,864,260

24,847,593

－

－

－

－

7,817,080

6,423,018

4,743,233

694,113555,094

124,672

1,657,096(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 (loss) represents negative 17,904 thousand yen in inter-segment eliminations.
3. Segment profit (loss) 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.
3. Matters related to changes in reportable segments, etc.
The Company has applied the Revenue Recognition Accounting Standard, etc., effective from the
beginning of the first quarter under review, as stated in Change in Accounting Policies, and changed

the accounting method for revenue recognition, so it has similarly changed the method for calculating
the profit (loss) of business segments.
As a result of this change, for the three-month period under review, in the Transportation (TR)segment, there was no impact on net sales but segment profit decreased by 13,999 thousand yen. In
the Daily Life & Healthcare (DH) segment, the impact on net sales was minimal while there was no
impact on segment profit. In the Electronics (EL) segment, net sales increased by 5,254 thousand yen
and segment profit increased by 8,758 thousand yen. In the Building & Construction (BC) segment,
net sales decreased by 129,883 thousand yen and segment profit decreased by 7,151 thousand yen,
compared to the amounts calculated using the previous method.
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, and diluted earnings per share and the basis
for calculation thereof are as follows:
Three months ended
June 30, 2020
Basic earnings per share (Yen)Three months ended
June 30, 2021

5.53

18.17

348,622

1,145,703––

348,622

1,145,703

63,032

63,045(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 815 thousand shares for the three months ended June 30, 2020 and 1,068 thousand shares forthe three months ended June 30, 2021.
2. Diluted earnings per share for the three months ended June 30, 2021 are not presented because there are no potential
shares.

Significant Subsequent Events
Not applicable.