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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 Six Months Ended September 30, 2023
[Japanese GAAP]
November 13, 2023
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 filing quarterly securities report: November 13, 2023
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: No
Schedule of quarterly financial results briefing session: Yes(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months Ended September 30, 2023 (April 1, 2023 to September 30, 2023)(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% Millions of yen% Millions of yen%Six months ended
September 30, 2023
14,538(12.4)
166(61.6)
439(39.7)(83)
September 30, 2022
16,599
19.8
433
62.6
729
68.4
600
33.1
(Note) Comprehensive income:Six months ended September 30, 2023:¥1,708 million [(37.6) %]Six months ended September 30, 2022:¥2,738 million [277.4%]

Basic earnings
per share
Six months ended
September 30, 2023September 30, 2022

Diluted earnings pershareYen

Yen(10.14)72.72-(2) Consolidated Financial Position
Total assets
Millions of yen
As ofSeptember 30, 2023
43,956
March 31, 2023
39,738(Reference) Equity: As of September 30, 2023:
As of March 31, 2023:

Net assets

Capital adequacy ratio

Millions of yen¥¥

30,17928,87330,179 million
28,873 million

%

68.7
72.7

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

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Yen

YenYenYen

Yen

Fiscal year ended March 31, 2023

-0.00

-

48.50

48.50

Fiscal year ending March 31, 2024

-0.00-

48.50

48.50

Fiscal year ending March 31, 2024
(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, 2024(April 1, 2023 to March 31, 2024)
Net sales
Millions of yen(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Operating profit
Ordinary profit
owners of parent
per share% Millions of yen% Millions of yen

Full year
33,0005.7850(4.1)(Note) Revision to the financial results forecast announced most recently:

1,250
Yes

* Notes:(1) Changes in significant subsidiaries during the six months ended September 30, 2023
(changes in specified subsidiaries resulting in changes in scope of consolidation):
New(Company name:
Exclusion:(Company name:% Millions of yen

0.3

400

(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

2) Number of treasury shares at the end of the period:
September 30, 2023:
128,638 shares
March 31, 2023:
128,028 shares
3) Average number of shares outstanding during the period:
Six months ended September 30, 2023:
Six months ended September 30, 2022:

8,256,809 shares
8,257,766 shares

Yen

48.44

No

(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
September 30, 2023:
8,385,093 shares
March 31, 2023:
8,385,093 shares%(49.6)))
NoRHYTHM CO.,LTD.

Quarterly Consolidated Financial Statements
Quarterly 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
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipmentBuildings 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
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
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 September 30, 2023

9,899
4,115

11,164
4,338

1,844

1,879

8,345
967
(1)
25,171

9,465
1,043
(4)
27,887

4,894
5,008
9,902

5,204
5,880
11,084

46
487
533

265
265

2,585
162
1,458
(76)
4,130
14,56739,738

3,143
45
1,600
(71)
4,718
16,06843,956

3,293
907
128
343

3,736
1,112
164
378

15

-

14
1,642
6,344

13
1,968
7,373

1,500
2,257
188
5754,521
10,865

2,500
2,601
286
1,015
6,403
13,776

RHYTHM CO.,LTD.

(Millions of yen)
As of March 31, 2023
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 September 30, 2023

12,372
7,540
4,584(278)24,21912,372
7,540
4,100(279)23,734

839

1,267

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

4,960
217
6,445
30,17943,956

RHYTHM CO.,LTD.

Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the six months)(Millions of yen)
For the six months
ended September 30, 2022
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 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
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit (loss) attributable to owners of parent

For the six months
ended September 30, 2023

16,59913,140
3,458
3,025
433

14,538
11,505
3,032
2,866
166

262
164
145
52
427

675
172
129
31
415

14
57
59
131
729

11
64
34
32
142
439

3
30
299
299

0
1
1730
188
(56)
132
598
(2)
600

0
601
602
136
204
16
220
(83)
(83)

RHYTHM CO.,LTD.

Quarterly Consolidated Statements of Comprehensive Income (For the six months)(Millions of yen)
For the six months
ended September 30, 2022
Profit (loss)
Other 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 six months
ended September 30, 2023

598(83)

107
2,037
(4)
2,140
2,738

427
1,419(55)
1,791
1,708

2,740

1,708

(2)

-RHYTHM CO.,LTD.

Quarterly Consolidated Statements of Cash Flows(Millions of yen)
For the six months
ended September 30, 2022
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 refund (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
Proceeds from collection of loans receivable
Payments for acquisition of businesses
Other, net
Net cash provided by (used in) investing activities

For the six months
ended September 30, 2023

730
686
100(4)
(30)
(10)
7

136
647
601
50(299)(4)(63)
25
19(11)(15)(64)
14(113)0(1)5(1,357)
348
119(172)0244
64(12)(242)
55(82)
11
10(0)
(23)
(115)
241
77(73)
23
1,159
79(15)(193)
1,029(445)
7(86)
(1)
2
14(509)(565)
0(162)(2)3(703)(1)(1,431)

RHYTHM CO.,LTD.

(Millions of yen)
For the six months
ended September 30, 2022
Cash flows from financing activities
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 six months
ended September 30, 2023

(70)
2,500(394)
1,500(3,000)(0)0(309)(98)
126

1,000(450)
1,000(1)
(400)
(125)
1,021

807

645

479
9,941
10,421

1,265
9,899
11,164