5+<7+0 &2/7'

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

Consolidated Financial Results
for the Year Ended March 31, 2024
[Japanese GAAP]May 14, 2024
Company name: RHYTHM CO.,LTD.
Stock exchange listing: Tokyo
Code number: 7769
URL: https://www.rhythm.co.jp/
Representative: Takeo Yumoto
President and Representative Director
Contact: Katsuhiko Yamazaki
Director and Managing Executive OfficerPhone: +81-48-643-7241
Scheduled date of Annual General Meeting of Shareholders: June 21, 2024
Scheduled date of commencing dividend payments: July 12, 2024
Scheduled date of filing annual securities report: June 21, 2024
Availability of supplementary briefing material on annual financial results: No
Schedule of annual financial results briefing session: Yes(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 to March 31, 2024)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toOperating profit
Ordinary profit
owners of parent

Net sales

Millions of yen%
Millions of yen
Fiscal year ended
March 31, 2024
32,6024.4730March 31, 2023
31,231
4.1886(Note) Comprehensive income:Fiscal year ended March 31, 2024:
Fiscal year ended March 31, 2023:%

Millions of yen(17.6)(0.7)¥¥

Basic earnings per Diluted earnings per Rate of return on
share
share
equityYen
Fiscal year ended
March 31, 2024
57.86
March 31, 2023
96.16
(Reference) Equity in earnings (losses) of affiliated companies:

Yen%

Millions of yen%

477794
20.6%](1.0) %]

(39.8)(23.0)

1,259
1.0
1,246
(3.1)
2,677 million [2,220 million [Ordinary profit tototal assets ratio

%

1.6
2.8
Fiscal year ended March 31, 2024:
Fiscal year ended March 31, 2023:

Operating profit to
net sales ratio

%%

3.0
3.2¥
¥

2.2
2.8
- million- million(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2024
March 31, 2023
(Reference) Equity:

Net assets

Millions of yen

Millions of yen

43,57339,738
As of March 31, 2024:
As of March 31, 2023:

Capital adequacy ratio¥¥

31,14528,87331,145 million
28,873 million

Net assets per share%

Yen

71.5
72.7

3,772.88
3,496.81(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2024
March 31, 2023

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

2,459
1,185

(2,143)(1,070)150(467)

11,0439,899

5+<7+0 &2/7'

2. Dividends
Annual dividends
1st2nd3rdquarter-end quarter-end quarter-end

Year-end

Total

Fiscal year ended

Yen

Yen

Yen

Yen

March 31, 2023

-

0.00

-

48.50

48.50

March 31, 2024

-

0.00

-

48.50

48.50

-

0.00

-

73.00

73.00

Payoutratio

Total
dividends(consolidated)

Yen Millions of yen

Dividends
to netassets(consolidated)

%%

400

50.4

1.4

400

83.8

1.3

Fiscal year ending
March 31, 2025

50.2

(Forecast)
On April 25, 2024, the Company received a proposal from some shareholders concerning an increase in dividend payments. (Fordetails, please refer to the notice titled ͆Notice concerning the Company's Board of Directors' opinion to the shareholders'
proposal(only available in Japanese)͇ disclosed on May 14, 2024.) The Company has scheduled to commence dividend payments
for July 12th, 2024. Note that the date of record is the last day of March 2024, as usual.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 to March 31, 2025)(% indicates changes from the previous corresponding period.)
Profit attributable Basic earnings per
Operating profit
Ordinary profit
to owners of parent
share

Net sales

Six months ending
September 30, 2024
Full year

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

Yen

17,400

19.7

450

170.4

600

36.6

300

-

36.34

35,500

8.9

1,800

146.4

2,000

58.8

1,200

151.2

145.34* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): NoNew(Company name:)
Exclusion:(Company name:)(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2024:
8,385,093 shares
March 31, 2023:
8,385,093 shares
2) Number of treasury shares at the end of the period:
March 31, 2024:
129,913 shares
March 31, 2023:
128,028 shares
3) Average number of shares outstanding during the period:
Fiscal Year ended March 31, 2024:
Fiscal Year ended March 31, 2023:

8,256,299 shares
8,257,514 shares5+<7+0 &2/7'

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 to March 31, 2024)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
March 31, 2024
March 31, 2023

Operating profit

Ordinary profit

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

15,082
16,038(6.0)
9.1(253)
349

24.5

1,006
918

9.6(1.2)

584
28(94.8)

Basic earnings per share Diluted earnings per share
Fiscal year ended
March 31, 2024
March 31, 2023

Yen

Yen

70.74
3.41-(2) Non-consolidated Financial Position
Total assets
As ofMarch 31, 2024
March 31, 2023
(Reference) Equity:

Net assets

Millions of yen

31,71930,262As of March 31, 2024:
As of March 31, 2023:

Capital adequacy ratio

Millions of yen¥¥

22,553
21,72922,553 million
21,729 million

Net assets per share%

Yen

71.1
71.8

2,732.04
2,631.66

RHYTHM CO.,LTD.

Consolidated Financial Statements
Consolidated Balance Sheets(Millions of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims operating
Inventories
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, netMachinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, netTools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, netConstruction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Distressed receivables
Deferred tax assets
Retirement benefit asset
OtherAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

As of March 31, 2024

9,899
4,115

11,043
5,511

1,844

1,859

8,345
179
788
(1)
25,171

7,980
200
483
(1)
27,076

12,392(7,498)4,894
10,002(7,631)
2,370
5,184(4,994)189
2,049
653(417)
235
163
9,902

13,841(8,047)
5,794
10,812(8,396)
2,416
4,978(4,784)
193
2,398
436
(210)
226
62
11,092

4676
411
533

76
128
205

2,585
73
2
162
249
1,132(76)4,13014,56739,738

3,405
67
057
409
1,327(67)
5,199
16,496
43,573

RHYTHM CO.,LTD.

(Millions of yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Current portion of long-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
Contract liabilities
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other provisions
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Deferred tax liabilities
Retirement benefit liability
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
Total net assets
Total liabilities and net assets

As of March 31, 2024

3,293
907
545
318
128
92
343

3,400
1,105
604
353
217
89345

151014685
6,344

97876,924

1,500
2,257
156
188
418
4,521
10,865

2,500
1,955
261
288
498
5,503
12,427

12,372
7,540
4,584(278)24,21912,372
7,540
4,662(283)
24,292

839

1,489

3,541
272
4,653
28,87339,738

5,034
329
6,853
31,14543,573

RHYTHM CO.,LTD.

Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Millions of yen)
For the fiscal year
ended March 31, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest incomeDividend income
Rental income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rental expenses
Special retirement expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on bargain purchaseTotal extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on sale of non-current assets
Impairment losses
Loss on valuation of inventories
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

For the fiscal year
ended March 31, 2024

31,231
24,447
6,784
5,897
886

32,60225,933
6,669
5,939
730

7
98
335
73
106
621

19
119
343
185
120
788

24
156
81
261
1,246

40
130
37
50
259
1,259

2
2

143
299
442

1
1
95
99
1,150
317
47
364
785
(8)
794

30
746
170
920
781
424(120)
303
477
477

RHYTHM CO.,LTD.

Consolidated Statements of Comprehensive Income(Millions of yen)
For the fiscal year
ended March 31, 2023
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to non-controllinginterests

For the fiscal year
ended March 31, 2024
785

477

472
980
(18)
1,434
2,220

650
1,492
56
2,199
2,677

2,228

2,677(8)-RHYTHM CO.,LTD.

Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity

Balance at beginningof period
Changes during
periodDividends ofsurplus
Profit attributable toowners of parent
Disposal of treasury
sharesPurchase of treasury
sharesChange inownership interestof parent due totransactions with
non-controllinginterests
Net changes initems other thanshareholders' equity
Total changes
during period
Balance at end ofperiod

Share capital

Capital surplus

12,372

7,584

Retainedearnings

Treasury shares

Total
shareholders'equity(276)

23,7804,100(309)

(309)

794

794

(0)

00

(1)

(1)

(44)

(44)

-(44)

484

(1)

438

12,372

7,540

4,584

(278)

24,219

Accumulated other comprehensive income
TotalValuation
Foreign currency Remeasurements accumulated Non-controlling Total net assets
difference oninterests
translationof defined
otheravailable-for-saleadjustment
benefit plans comprehensive
securities
incomeBalance at beginningof period
Changes during
periodDividends ofsurplus
Profit attributable toowners of parent
Disposal of treasury
sharesPurchase of treasury
sharesChange inownership interestof parent due totransactions with
non-controllinginterests
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

366

2,561

291

3,219

6

27,006(309)7940(1)

(44)

472

980

(18)

1,434

(6)

1,427

472

980

(18)

1,434

(6)

1,866

839

3,541

272

4,653

-

28,873

RHYTHM CO.,LTD.

For the fiscal year ended March 31, 2024
(Millions of yen)
Shareholders' equity

Balance at beginningof period
Changes during
periodDividends ofsurplus
Profit attributable toowners of parent
Disposal of treasuryshares
Purchase of treasury
sharesChange inownership interestof parent due totransactions withnon-controllinginterests
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end ofperiod

Share capital

Capital surplus

12,372

7,540

Retainedearnings

Treasury shares

Total
shareholders'equity(278)

24,219

4,584

(400)

(400)

477

477
(4)

(4)

---

77

(4)

72

12,372

7,540

4,662

(283)

24,292

Accumulated other comprehensive income
TotalValuation
Foreign currency Remeasurements accumulated Non-controlling Total net assetsdifference oninterests
translationof defined
otheravailable-for-saleadjustment
benefit plans comprehensive
securities
incomeBalance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Disposal of treasury
sharesPurchase of treasury
sharesChange inownership interestof parent due totransactions withnon-controllinginterests
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

839

3,541

272

4,653-

28,873

(400)
477
(4)

-

650

1,492

56

2,199-

2,199

650

1,492562,199-

2,272

1,489

5,034

329

6,853

-

31,145RHYTHM CO.,LTD.

Consolidated Statements of Cash Flows(Millions of yen)
For the fiscal year
ended March 31, 2023
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Gain on bargain purchase
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on disposal of non-current assets
Loss (gain) on sale of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Decrease (increase) in other assets
Increase (decrease) in other liabilities
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Proceeds from collection of loans receivable
Other, net
Net cash provided by (used in) investing activities

For the fiscal year
ended March 31, 2024

1,150
1,383
95
186
(5)
(103)
(23)
8

781
1,351
746
50(299)(11)
41(124)
(13)

3(4)

(106)
24(1)
1(1)
107(631)
(446)
179
(161)
(142)1,518
106(20)
(419)
1,185

(139)
40(171)3(143)(1,150)
1,402
(116)
183
126
171
2,724
139(33)(370)
2,459(957)
4(134)(3)(1,580)310(169)(4)-(703)

515(1,070)

5(1)(2,143)

RHYTHM CO.,LTD.

(Millions of yen)
For the fiscal year
ended March 31, 2023
Cash flows from financing activities
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Redemption of bonds
Purchase of treasury shares
Proceeds from sale of treasury shares
Dividends paid
Repayments of finance lease liabilities
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

For the fiscal year
ended March 31, 2024

(42)

-(70)
2,500
(844)
1,500
(3,000)(1)0(309)
(199)
(467)

1,000
(1,103)
1,000
(4)
(400)
(340)
150

310

677

(42)
9,941
9,899

1,143
9,899
11,043