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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, 2022
[Japanese GAAP]
November 11, 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 Officer
Phone: 048-643-7241
Scheduled date of filing quarterly securities report: November 14, 2022
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, 2022 (April 01, 2022 to September 30, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toOperating profit
Ordinary profit
owners of parent

Net sales
Six months ended
September 30, 2022
September 30, 2021
(Note) Comprehensive income:Million yen%

Million yen%

Million yen

16,599
19.8
433
62.6
13,85515.1
266
Six months ended September 30, 2022:¥
Six months ended September 30, 2021:¥Basic earnings
per share

Six months ended
September 30, 2022
September 30, 2021

%

729
68.4
432
2,738 million
725 million

Diluted earnings pershareYenYen

72.72
54.65

-(2) Consolidated Financial PositionTotal assets
Million yen
As ofSeptember 30, 2022
41,716
March 31, 2022
38,293(Reference) Equity: As of September 30, 2022:
As of March 31, 2022:

Net assets

Capital adequacy ratio

Million yen¥¥

29,43527,00629,431 million
27,000 million

%

70.6
70.5

Million yen[[%60033.1
451277.4%]-%]

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2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

YenYen

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-endTotalNo

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023(April 01, 2022 to March 31, 2023)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Operating profit
Ordinary profit
owners of parent
per share

Net sales%

Million yen%

Million yen%

Yen

Full year
30,700
2.3
1,000
12.0
(Note) Revision to the financial results forecast announced most recently:

Million yen%

Million yen

1,300
No

1.0

1,000(3.1)

121.09* Notes:(1) Changes in significant subsidiaries during the six months ended September 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):
September 30, 2022:
8,385,093 shares
March 31, 2022:
8,385,093 shares2) Total number of treasury shares at the end of the period:
September 30, 2022:
127,637 shares
March 31, 2022:
127,150 shares
3) Average number of shares during the period:
Six months ended September 30, 2022:
Six months ended September 30, 2021:

8,257,766 shares
8,258,784 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 September 30,2022

9,941

10,421

4,107

4,465

1,785

1,812

7,397
838
(0)
24,069

9,383
1,085
(2)
27,166

5,170
4,694
9,864

5,200
5,126
10,326

213
245
458

151
352
504

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

2,178
226
1,393
(78)
3,718
14,54941,716

3,563
70
435
262
334

4,276
900
194
341

11-

3,000
17
1,484
9,178

15
1,634
7,362

1,074
5235092,107
11,286

1,500
2,714
241
461
4,918
12,280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 September 30,2022

12,372
7,584
4,100(276)23,780

12,372
7,584
4,391
(277)
24,071

366

474

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

4,598
286
5,359
4
29,43541,716

RHYTHM CO.,LTD.

Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the six months)(Million yen)
For the six months
ended September 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 income
Non-operating expenses
Interest expenses
Rental expenses
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 - refund
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

For the six months
ended September 30,2022

13,855
10,654
3,200
2,934
266

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

2
49
154
853
267

262
164
145
52
427

1562
23101
432

1457
59
131
729

1
57

3
33
37432
135
(63)
(81)
(10)
443
(8)
451

0
1
1
730
188
(56)
132
598
(2)
600

RHYTHM CO.,LTD.

Quarterly Consolidated Statements of Comprehensive Income (For the six months)(Million yen)
For the six months
ended September 30,2021
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustmentRemeasurements 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 30,2022

443

598

152
142
(12)
282
725

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

733

2,740

(8)

(2)

RHYTHM CO.,LTD.

Quarterly Consolidated Statements of Cash Flows(Million yen)
For the six months
ended September 30,2021
Cash flows from operating activities
Profit before income taxesDepreciation
Amortization of goodwill
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
Loss (gain) on sale of investment securities
Decrease (increase) in trade receivablesDecrease (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 sales of investments securities
Proceeds from collection of loans receivable
Other, net
Net cash provided by (used in) investing activities

For the six months
ended September 30,2022

432
540
171(1)
(15)
(18)
65

730
686
100
(4)
(30)
(10)
7(1)

(11)

(51)
15(2)
32(5)
421
(1,086)
188(299)5
117
480
51(15)
(19)
496

(64)
14(113)0(1)5(1,357)
348
119(172)0244
64(12)(242)
55(555)6(6)(1)
62(547)

(445)
7(86)
(1)
214(509)

RHYTHM CO.,LTD.

(Million yen)
For the six months
ended September 30,2021
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 30,2022

(62)
(218)
(0)
(247)
(14)
(544)

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

61

807

(533)
10,276
9,742

479
9,941
10,421