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 Nine Months Ended December 31, 2023
[Japanese GAAP]
February 13, 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 filing quarterly securities report: February 13, 2024
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 Nine Months Ended December 31, 2023 (April 1, 2023 to December 31, 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%
Nine months ended
December 31, 2023
23,440(2.9)
556(23.0)
899(11.1)
86(89.1)
December 31, 2022
24,131
10.8
722
4.5
1,011
6.6
790
(17.6)(Note) Comprehensive income:Nine months ended December 31, 2023:¥1,048 million [(48.3) %]Nine months ended December 31, 2022:¥2,025 million [38.0%]

Basic earnings
per share
Nine months ended
December 31, 2023
December 31, 2022

Diluted earnings pershareYen

Yen

10.42
95.67-(2) Consolidated Financial Position
Total assets
Millions of yen
As ofDecember 31, 2023
42,699March 31, 2023
39,738(Reference) Equity: As of December 31, 2023:
As of March 31, 2023:

Net assets

Capital adequacy ratio

Millions of yen¥¥

29,51828,87329,518 million
28,873 million

%

69.1
72.7

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2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Yen

Yen

Yen

Yen

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

Year-end

Fiscal year ending March 31, 2024
(Forecast)(Note) Revision to the forecast for dividends announced most recently:

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 yenFull year
33,000
5.7
850
(4.1)
(Note) Revision to the financial results forecast announced most recently:

1,250
No% Millions of yen

0.3

400%

Yen

(49.6)

48.44* Notes:(1) Changes in significant subsidiaries during the nine months ended December 31, 2023
(changes in specified subsidiaries resulting in changes in scope of consolidation):
NoNew(Company name:
Exclusion:(Company name:(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):December 31, 2023:
8,385,093 shares
March 31, 2023:
8,385,093 shares
2) Number of treasury shares at the end of the period:
December 31, 2023:
129,227 shares
March 31, 2023:
128,028 shares
3) Average number of shares outstanding during the period:
Nine months ended December 31, 2023:
Nine months ended December 31, 2022:

8,256,556 shares
8,257,625 shares))
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 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
OtherAllowance 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
OtherTotal current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities

As of December 31, 2023

9,899
4,115

9,941
5,325

1,844

1,841

8,345
967
(1)
25,171

9,032
709
(3)
26,847

4,894
5,008
9,902

5,027
6,121
11,148

46
487
533

244
244

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

2,946
35
1,548
(69)
4,459
15,852
42,699

3,293
907
128
343

3,817
1,112
115
225

15-

14
1,642
6,344

13
1,797
7,083

1,500
2,257188
575
4,521
10,865

2,500
2,324
277
995
6,097
13,180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 December 31, 2023

12,372
7,540
4,584(278)24,21912,372
7,540
4,270(280)
23,902

839

1,100

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

4,317
197
5,615
29,51842,699RHYTHM CO.,LTD.

Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the nine months)(Millions of yen)
For the nine months
ended December 31, 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 expensesInterest 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
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

For the nine months
ended December 31, 2023

24,131
18,977
5,154
4,431
722

23,44018,553
4,887
4,330
556

4
95
249
65
70
486

10
117
258
103
47
536

20
107
69
197
1,011

18
98
36
39
194
899

2
210
299
309

0
1
2
1,012
227
2
230
782
(8)
790

0
728
728
480
279
114
394
86
86

RHYTHM CO.,LTD.

Quarterly Consolidated Statements of Comprehensive Income (For the nine months)(Millions of yen)
For the nine months
ended December 31, 2022
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 nine months
ended December 31, 2023

782

86

297
976
(30)
1,243
2,025

261
776
(75)
962
1,048

2,033

1,048

(8)

-