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 Year Ended March 31, 2022
[Japanese GAAP]May 12, 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 OfficerPhone: 048-643-7241
Scheduled date of Annual General Meeting of Shareholders: June 22, 2022
Scheduled date of commencing dividend payments: June 23, 2022
Scheduled date of filing annual securities report: June 22, 2022
Availability of supplementary briefing material on annual financial results: No
Schedule of annual financial results briefing session: Yes(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 01, 2021 to March 31, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toOperating profit
Ordinary profit
owners of parent

Net sales
Fiscal year ended
March 31, 2022
March 31, 2021
(Note) Comprehensive income:Million yen

Million yen%

29,9999.9892
27,304(8.7)
318
Fiscal year ended March 31, 2022:
Fiscal year ended March 31, 2021:

%

180.5
¥
¥

Million yen%

Million yen%

1,286
118.7
588
2,242 million(674) million

1,031(1,262)-%]-%]-Basic earnings per Diluted earnings per Rate of return on
shareshareequityYenFiscal year ended
March 31, 2022
124.92
March 31, 2021
(152.90)(Reference) Equity in earnings (losses) of affiliated companies:

Yen[[Ordinary profit tototal assets ratio

%

4.0
(5.0)
Fiscal year ended March 31, 2022:
Fiscal year ended March 31, 2021:

Operating profit tonet sales ratio

%%

3.5
1.6¥
¥3.0
1.2
- million- million(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2022
March 31, 2021
(Reference) Equity:

Net assets

Million yen

Million yen

38,29335,704As of March 31, 2022:
As of March 31, 2021:

Capital adequacy ratio¥¥

27,00625,04627,000 million
25,021 million

Net assets per share%

Yen

70.5
70.1

3,269.61
3,029.49(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2022
March 31, 2021

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Million yen

Million yen

Million yen

Million yen

1,245
1,849

(876)
(585)

(1,203)
(686)

9,941
10,276

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

2. Dividends
Annual dividends
1st
2nd
3rd
quarter-end quarter-end quarter-end

Year-end

Total

Payoutratio

Total
dividends(consolidated)

Dividends
to netassets(consolidated)

Fiscal year ended

YenYen

Yen

Yen

Yen

Million yen%%March 31, 2021

-

0.00

-

30.00

30.00

247

-

1.0

March 31, 2022

-

0.00

-

37.50

37.50

309

30.0

1.2

-

36.00

36.00

Fiscal year ending
March 31, 2023--(Forecast)(Note) Breakdown of the year-end dividend for the fiscal year ended March 31, 2022 :Commemorative dividend- yenSpecial dividend- yen
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 per
Operating profit
Ordinary profit
owners of parent
share

Net sales
Million yen

Six months ended
September 30, 2022
Full year%Yen

14,700

6.1% Million yen

370

38.9

% Million yen

520

20.1% Million yen

400(11.4)

48.44

30,700

2.3

1,000

12.0

1,300

1.0

1,000(3.1)

121.09* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): NoNew(Company name:)
Exclusion:(Company name:)(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2022:
8,385,093 shares
March 31, 2021:
8,385,093 shares2) Total number of treasury shares at the end of the period:
March 31, 2022:
127,150 shares
March 31, 2021:
125,941 shares
3) Average number of shares during the period:
Fiscal Year ended March 31, 2022:
Fiscal Year ended March 31, 2021:

8,258,463 shares
8,259,919 shares5+<7+0 &2/7'

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 01, 2021 to March 31, 2022)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
March 31, 2022
March 31, 2021

Operating profit

Ordinary profit

Net income

Million yen%

Million yen%

Million yen%

Million yen%

14,695
12,12821.2
24.7

2808-929
513

81.0
501.8

541
220

145.2
-

Basic earnings per share Diluted earnings per share
Fiscal year ended
March 31, 2022
March 31, 2021

YenYen

65.59
26.74

-

(2) Non-consolidated Financial PositionTotal assets
As ofMarch 31, 2022
March 31, 2021
(Reference) Equity:

Net assets

Million yen

Million yen

30,10629,191
As of March 31, 2022:
As of March 31, 2021:

Capital adequacy ratio¥¥

21,534
21,12021,534 million
21,120 million

Net assets per share%

Yen

71.5
72.4

2,607.75
2,557.27

RHYTHM CO.,LTD.

Consolidated Financial Statements
Consolidated Balance Sheets(Million yen)
As of March 31,2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade, and contract
assetsElectronically recorded monetary claims operating
Inventories
Prepaid expenses
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
GoodwillSoftwareOther
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Distressed receivables
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

As of March 31,2022

10,276
4,150

9,941
--

4,107

1,452

1,785

5,469
135
344
(1)
21,827

7,397
158
680
(0)
24,069

11,966(6,915)
5,050
8,230(6,217)
2,012
5,468(5,272)
195
1,972
139(31)
108
199
9,539

12,034(6,864)
5,170
8,992(6,874)
2,117
5,511(5,302)209
2,008
561(222)
339
20
9,864

583
46
207
837

213
87
158
458

1,912
84
0
44
460
1,082(84)3,500
13,87735,704

2,067
79
2198
517
1,116(81)3,900
14,22338,293

RHYTHM CO.,LTD.

(Million yen)
As of March 31,2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Current portion of long-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
Contract liabilities
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other provisions
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Deferred tax liabilities
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
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 March 31,2022

2,938
332
433
384
281
92
275

3,563
70
3,000
435
457
269
262
106
334

1

11

59
342
5,142

17
650
9,178

3,000
1,510
148
458
397
5,515
10,657

1,074
113
523
396
2,107
11,286

12,3727,584
3,350(275)
23,031

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

211

366

1,482
295
1,989
25
25,04635,704

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

RHYTHM CO.,LTD.

Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31,2021
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
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rental expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary incomeExtraordinary losses
Early retirement related expanses
Loss on disposal of non-current assets
Loss on sale of non-current assets
Loss on sale of investment securities
Loss on valuation of investment securities
Impairment losses
Goodwill impairment loss
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes for prior periods
Income taxes - deferred
Total income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit (loss) attributable to owners of parent

For the fiscal year
ended March 31,2022

27,30420,9676,337
6,019
318

29,99923,192
6,807
5,914
892

361
316
201
582

377
325
35
105
126
673

37
140
43
90
312
588

43
158
77
280
1,286

34
0
34

34
7
42

1,501
17
9
1,528(905)
206
46
105
358
(1,263)(0)(1,262)

7
4
2
69
121
204
1,125
357
(58)
(186)
112
1,012
(19)
1,031

RHYTHM CO.,LTD.

Consolidated Statements of Comprehensive Income(Million yen)
For the fiscal year
ended March 31,2021
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 fiscal year
ended March 31,2022(1,263)

1,012

198
194
196
589(674)

154
1,078
(3)
1,230
2,242(673)

2,261

(0)

(19)

RHYTHM CO.,LTD.

Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31,2021(Million yen)
Shareholders' equity

Balance at beginningof period
Changes during
periodDividends ofsurplus
Profit (loss)
attributable toowners of parent
Disposal of treasury
sharesPurchase of treasury
sharesNet changes initems other thanshareholders' equity
Total changes
during period
Balance at end ofperiod

Share capital

Capital surplus

12,372

7,584

Retainedearnings

Treasury shares

Total
shareholders'equity(274)

24,543

4,860

(247)

(247)

(1,262)(1,262)

(0)

00(0)

(0)

-(0)

(1,510)(0)(1,511)

12,372

7,584

3,350

(275)

23,031

Accumulated other comprehensive income
TotalValuation
Foreign currency Remeasurements accumulated Non-controlling Total net assets
difference oninterests
translationof defined
otheravailable-for-saleadjustment
benefit plans comprehensive
securities
incomeBalance at beginningof period
Changes during
periodDividends ofsurplusProfit (loss)
attributable toowners of parent
Disposal of treasury
sharesPurchase of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

13

1,287

99

1,400

26

25,970(247)(1,262)
0(0)
198

194

196

589(0)

588

198

194

196

589(0)

(923)

211

1,482

295

1,989

25

25,046

RHYTHM CO.,LTD.

For the fiscal year ended March 31,2022(Million yen)
Shareholders' equity

Balance at beginningof period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during
periodDividends ofsurplus
Profit (loss)
attributable toowners of parent
Disposal of treasury
sharesPurchase of treasury
sharesNet changes initems other thanshareholders' equity
Total changes
during period
Balance at end ofperiod

Share capital

Capital surplus

12,372

7,584

Retainedearnings

Treasury shares

Total
shareholders'equity(275)

23,0313,350(33)

12,372

7,584

3,316

(33)
(275)

22,998

(247)

(247)

1,031

1,031
(1)

(1)

--

783

(1)

782

12,372

7,584

4,100

(276)

23,780

Accumulated other comprehensive income
TotalValuation
Foreign currency Remeasurements accumulated Non-controlling Total net assets
difference oninterests
translationof defined
otheravailable-for-saleadjustment
benefit plans comprehensive
securities
incomeBalance at beginningof period
Cumulative effects ofchanges in accounting
policiesRestated balance
Changes during
periodDividends ofsurplus
Profit (loss)
attributable toowners of parent
Disposal of treasury
sharesPurchase of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end ofperiod

211

1,482

295

1,989

25

25,046
(33)

211

1,482

295

1,989

25

25,013(247)
1,031
(1)
154

1,078

(3)

1,230

(19)

1,210

154

1,078

(3)

1,230

(19)

1,993

366

2,561

291

3,219

627,006

RHYTHM CO.,LTD.

Consolidated Statements of Cash Flows(Million yen)For the fiscal year
ended March 31,2021
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Early retirement related expenses
Subsidies for employment adjustment
Subsidy income
Impairment losses
Impairment loss of goodwill
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 incomeInterest 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 intangible assets
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
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
Subtotal
Payments for early retirement expenses
Proceeds from subsidies for emploment
Subsidies received
Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of intangible assets
Purchase of investment securities
Proceeds from sales of investments securities
Proceeds from collection of loans receivable
Other, netNet cash provided by (used in) investing activities

For the fiscal year
ended March 31,2022(905)
1,083
1,501(106)340(6)
58(131)102

1,125
1,319(105)69
121
285(4)
30(62)58(7)9(65)
37(14)
17(34)
(0)
968
1,484
30
172(104)(148)
3,380(1,484)
106
65(40)(177)
1,849(80)43(74)
7(34)
4(5)
(58)
(1,658)424(408)
19
168
1,195
105
80(42)(93)
1,245

25(657)59(40)(2)
0524(585)(908)50(37)2(2)656(876)

RHYTHM CO.,LTD.

(Million yen)
For the fiscal year
ended March 31,2021
Cash flows from financing activities
Increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
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 fiscal year
ended March 31,2022

(202)
2,170
(368)
(2,000)(0)0(247)
(37)
(686)

(313)
(434)
(1)
(247)
(206)
(1,203)

77

500

655
9,621
10,276(334)
10,276
9,941