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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 Three Months Ended June 30, 2022
[Japanese GAAP]
August 10, 2022
Company name: RHYTHM CO.,LTD.
Stock exchange listing: Tokyo
Code number: 7769
URL: https://www.rhythm.co.jp/
Representative: Hiromi Hirata
President and Representative Director
Contact: Katsuhiko Yamazaki
Director and Managing Executive OfficerPhone: 048-643-7241
Scheduled date of filing quarterly securities report: August 12, 2022
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: No
Schedule of quarterly financial results briefing session: No(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Three Months Ended June 30, 2022 (April 01, 2022 to June 30, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%Three months ended
June 30, 2022
7,930
11.7
233(24.7)388(5.6)315(25.9)
June 30, 2021
7,101
30.4
309
411
425(Note) Comprehensive income:Three months ended June 30, 2022:¥
1,661 million [268.6%]
Three months ended June 30, 2021:¥
450 million [-%]
Basic earnings
per share
Three months ended
June 30, 2022
June 30, 2021

Diluted earnings pershareYen

Yen

38.17
51.53

-(2) Consolidated Financial Position
Total assets
As ofJune 30, 2022
March 31, 2022
(Reference) Equity:

Net assets

Million yen

Million yen

40,842
38,293As of June 30, 2022:
As of March 31, 2022:

Capital adequacy ratio¥¥

28,35827,00628,353 million
27,000 million

%

69.4
70.5

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2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2022

-0.00

-

37.50

37.50

Fiscal year ending March 31, 2023

0.00

-

36.00

36.00

Fiscal year ending March 31, 2023
(Forecast)(Note) Revision to the forecast for dividends announced most recently:

Year-end

TotalNo

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023(April 01, 2022 to March 31, 2023)

Net sales
Million yen

Operating profit% Million yen(% indicates changes from the previous corresponding period.)
Profit attributable Basic earnings per
Ordinary profit
to owners of parent
share% Million yen

Six months ended
14,7006.137038.9520
September 30, 2022
Full year
30,700
2.3
1,000
12.0
1,300
(Note) Revision to the financial results forecast announced most recently:
No% Million yenYen

20.1

400(11.4)

48.44

1.0

1,000(3.1)

121.09* Notes:(1) Changes in significant subsidiaries during the three months ended June 30, 2022
(changes in specified subsidiaries resulting in changes in scope of consolidation):
New(Company name:
Exclusion:(Company name:No(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:(3) 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(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
June 30, 2022:
8,385,093 shares
March 31, 2022:
8,385,093 shares2) Total number of treasury shares at the end of the period:
June 30, 2022:
127,286 shares
March 31, 2022:
127,150 shares
3) Average number of shares during the period:
Three months ended June 30, 2022:
Three months ended June 30, 2021:%

8,257,882 shares
8,258,984 shares))
NoRHYTHM CO.,LTD.

Quarterly Consolidated Financial Statements
Quarterly Consolidated Balance Sheets(Million yen)
As of March 31,2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsElectronically recorded monetary claims operating
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Current portion of bonds payable
Other provisions
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities

As of June 30,2022

9,941

10,611

4,107

4,406

1,785

1,810

7,397
838
(0)
24,069

8,628
1,175
(1)
26,630

5,170
4,694
9,864

5,221
4,965
10,186

213
245
458

190
263
454

2,067
198
1,715
(81)
3,900
14,22338,293

2,109
177
1,364
(80)
3,571
14,212
40,842

3,563
70
435
262
334

4,099
270
933
85
168

11-

3,000
17
1,484
9,178

15
1,7747,347

1,074
523
509
2,107
11,286

1,500
2,966
203
466
5,136
12,484

RHYTHM CO.,LTD.

(Million yen)
As of March 31,2022
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

As of June 30,2022

12,372
7,584
4,100(276)23,78012,372
7,584
4,106(277)23,786

366

407

2,561
291
3,219
6
27,00638,293

3,865
293
4,566
5
28,35840,842

RHYTHM CO.,LTD.

Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the three months)(Million yen)
For the three months
ended June 30,2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rental income
Foreign exchange gains
OtherTotal non-operating incomeNon-operating expenses
Interest expenses
Bond issuance costs
Rental 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
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on sale of non-current assets
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 three months
ended June 30,2022
7,101
5,389
1,712
1,402
309

7,930
6,247
1,682
1,449
233

04876
29
156

0
61
84
53
24
224

728
61154
411

91632
1069
388

5500

44412
70(79)
(9)
421
(3)
425

1
1
387
78
(4)
73
314
(0)
315

RHYTHM CO.,LTD.

Quarterly Consolidated Statements of Comprehensive Income (For the three months)(Million yen)
For the three months
ended June 30,2021
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 ofparent
Comprehensive income attributable to non-controllinginterests

For the three months
ended June 30,2022
421

314

419428
450

41
1,303
2
1,347
1,661

454

1,662

(3)

(0)