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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, 2023
[Japanese GAAP]
August 10, 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: August 10, 2023
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, 2023 (April 1, 2023 to June 30, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Three months ended
June 30, 2023
6,970
(12.1)
131(43.7)
330(15.0)(101)
June 30, 2022
7,930
11.7
233
(24.7)
388
(5.6)
315
(25.9)(Note) Comprehensive income:Three months ended June 30, 2023:¥
1,055 million [(36.5) %]Three months ended June 30, 2022:¥
1,661 million [268.6%]
Basic earnings
per share
Three months ended
June 30, 2023
June 30, 2022

Diluted earnings pershare
Yen

Yen

(12.24)38.17-(2) Consolidated Financial Position
Total assets
As ofJune 30, 2023
March 31, 2023
(Reference) Equity:

Millions of yen

Net assets
Millions of yen

40,50039,738
As of June 30, 2023:
As of March 31, 2023:

Capital adequacy ratio¥¥

29,52828,87329,528 million
28,873 million

%

72.9
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

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 Basic earnings
Operating profit
Ordinary profit
to owners of parent
per share% Millions of yen% Millions of yen

Six months ending15,000(9.6)
350 (19.2)
September 30, 2023
Full year
31,500
0.9
1,100
24.1
(Note) Revision to the financial results forecast announced most recently:% Millions of yen

Yen

500

(31.4)

150(75.0)

18.17

1,400No12.3

800

0.896.88* Notes:(1) Changes in significant subsidiaries during the three months ended June 30, 2023
(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, 2023:
8,385,093 shares
March 31, 2023:
8,385,093 shares
2) Number of treasury shares at the end of the period:
June 30, 2023:
128,233 shares
March 31, 2023:
128,028 shares
3) Average number of shares outstanding during the period:
Three months ended June 30, 2023:
Three months ended June 30, 2022:%

8,256,966 shares
8,257,882 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
OtherAllowance 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
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 June 30, 2023

9,899
4,115

9,913
4,001

1,844

1,856

8,345
967
(1)
25,171

8,543
1,057
(3)
25,368

4,894
5,008
9,902

4,894
5,454
10,349

46487
533

503
503

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

2,796
95
1,463
(74)
4,280
15,13240,500

3,293
907
128
343

3,509
912
92
228

15-14
1,6426,344

13
1,781
6,536

1,500
2,257
188
575
4,521
10,865

1,500
2,027
205
702
4,435
10,972

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 June 30, 202312,372
7,540
4,584
(278)
24,21912,372
7,540
4,083(278)23,717

839

1,018

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

4,566
225
5,810
29,52840,500RHYTHM CO.,LTD.

Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the three months)(Millions of yen)
For the three months
ended June 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
Bond issuance costs
Rental expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Total 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 parentFor the three months
ended June 30, 2023
7,930
6,247
1,682
1,449
233

6,970
5,425
1,544
1,413
131

061
84
53
24224

374
87
113
14
292

91632
10
69388

4
32
56
93
330

0
000

11387
78
(4)
73
314
(0)
315

0
316
316
13
127(12)
114
(101)
(101)

RHYTHM CO.,LTD.

Quarterly Consolidated Statements of Comprehensive Income (For the three months)(Millions of yen)
For the three months
ended June 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 three months
ended June 30, 2023
314(101)

41
1,303
2
1,347
1,661

179
1,024(47)
1,156
1,055

1,662

1,055(0)-