RHYTHM CO.,LTD.

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, 2022
[Japanese GAAP]
February 10, 2023
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: February 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: No(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2022 (April 01, 2022 to December 31, 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%
Nine months ended
December 31, 2022
24,131
10.8
722
4.5
1,011
6.6
790
(17.6)
December 31, 2021
21,774
11.6
691
949
224.1
959
(Note) Comprehensive income:Nine months ended December 31, 2022:¥
2,025 million [38.0%]
Nine months ended December 31, 2021:¥1,467 million [-%]
Basic earnings
per share
Nine months ended
December 31, 2022
December 31, 2021

Diluted earnings pershareYen

Yen

95.67
116.13-(2) Consolidated Financial Position
Total assets
Million yen
As ofDecember 31, 2022
40,077
March 31, 2022
38,293(Reference) Equity: As of December 31, 2022:
As of March 31, 2022:

Net assets

Capital adequacy ratio

Million yen¥¥

28,67927,006
28,679 million
27,000 million

%

71.6
70.5

RHYTHM CO.,LTD.

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

Year-end

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

TotalNo

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
Net sales
Operating profit
Ordinary profit
owners of parent
per share%

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 nine months ended December 31, 2022
(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, 2022:
8,385,093 shares
March 31, 2022:
8,385,093 shares2) Total number of treasury shares at the end of the period:
December 31, 2022:
127,862 shares
March 31, 2022:
127,150 shares
3) Average number of shares during the period:
Nine months ended December 31, 2022:
Nine months ended December 31, 2021:

8,257,625 shares
8,258,602 shares))No5+<7+0 &2/7'

Quarterly Consolidated Financial Statements
Quarterly Consolidated Balance Sheets(Million yen)
As of March 31,2022

As of December 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

9,941

9,273

4,107

4,430

1,785

1,970

7,397
838
(0)

8,877
1,261
(1)

Total current assets

24,06925,812

5,170

5,004

4,694

4,992

9,864

9,997

Goodwill

213

92

Other
Total intangible assets

245
458

376
468

Investment securities
Deferred tax assets

2,067
198

2,371
168

Other

1,715

1,336

(81)
3,900
14,223(77)
3,799
14,26538,29340,077

3,563

3,595

Non-current assets
Property, plant and equipment
Buildings and structures, net
Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

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

7030

Current portion of long-term borrowings
Income taxes payable

435
262

900
288

Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Current portion of bonds payable

334

172

11-

3,000-

Other provisions
Other

17
1,484

14
1,714

Total current liabilities

9,178

6,715

Non-current liabilities
Bonds payable-1,500

1,074

2,489

Retirement benefit liability
Other523
509

225
467

Total non-current liabilities

2,107

4,683

11,286

11,398Long-term borrowings

Total liabilities

5+<7+0 &2/7'(Million yen)
As of March 31,2022

As of December 31,2022

Net assets
Shareholders' equity
Share capital
Capital surplus

12,372
7,584

12,372
7,540

Retained earnings

4,100

4,581

Treasury shares
Total shareholders' equity(276)
23,780(277)
24,216

366

663

2,561

3,538

291
3,219

260
4,462

Non-controlling interests

6-

Total net assets
Total liabilities and net assets

27,00638,29328,67940,077

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

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

Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the nine months)(Million yen)
For the nine months
ended December 31,2021

For the nine months
ended December 31,2022

Net sales

21,774

24,131

Cost of sales

16,675

18,977Gross profit
Selling, general and administrative expenses

5,098
4,407

5,154
4,431

Operating profit
Non-operating income

691722

Interest income
Dividend income

274

495

Rental income

237

249

Foreign exchange gains
Other

877

6570

Total non-operating income

399

486

Non-operating expenses
Interest expenses

2120

Rental expenses

93

107

26142
949

69
197
1,011

152-

728-

01

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 assetsLoss on sale of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current

82948
218

1,012
227

Income taxes - refund

(65)

-

Income taxes - deferred
Total income taxes

(155)
(2)

2230

ProfitLoss attributable to non-controlling interests

951
(7)

782
(8)

Profit attributable to owners of parent

959

790

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

Quarterly Consolidated Statements of Comprehensive Income (For the nine months)(Million yen)
For the nine months
ended December 31,2021
ProfitOther comprehensive income

For the nine monthsended December 31,2022

951

782

Valuation difference on available-for-sale securities

123

297

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

413
(20)

976
(30)

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to non-controllinginterests

516

1,243

1,467

2,025

1,475

2,033

(7)

(8)