Translation
Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between thistranslated document and the Japanese original, the original shall prevail.

Consolidated Financial Results
for the Fiscal Year Ended December 31, 2020
(under Japanese GAAP)
February 12, 2021
Company name: Roland Corporation
Listing:
Tokyo Stock Exchange
Security code:
7944
URL:
https://www.roland.com/global/
Representative:
Jun-ichi Miki, CEO and Representative Director
Contact:
Shunsuke Sugiura, CFO and Senior Executive Officer
Phone:+81-53-523-0230
March 30, 2021
Scheduled date to hold ordinary general meeting of shareholders:
Scheduled date to commence payment of dividends:
March 31, 2021
Scheduled date to file Annual Securities Report (Yukashoken Hokokusho): March 31, 2021
Yes
Preparation of supplementary briefing material on financial results:
Yes (for institutional investors and securities analysts)
Holding of financial results briefing:(Note) Amounts less than one million yen have been omitted.
1. Consolidated financial results for the fiscal year ended December 31, 2020 (from January 1 to December 31, 2020)(1) Consolidated operating results(Percentage indicates year-on-year changes.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Fiscal year ended
Millions of yen% Millions of yen%
Millions of yen% Millions of yen%
December 31, 2020
64,044
1.3
7,115
35.0
6,277
32.8
4,301
63.6
December 31, 201963,247
3.4
5,269 (10.0)
4,726
(8.6)
2,629 (13.7)
Note: Comprehensive income
For the fiscal year ended December 31, 2020: ¥3,934 million [85.4%]
For the fiscal year ended December 31, 2019: ¥2,122 million [ –%]Basic earnings
Diluted earnings
Ordinary profit toOperating profit
Return on equity
per shareper share
total assets ratio
marginFiscal year ended
Yen
Yen
%
%
%
December 31, 2020
160.13
155.37
22.7
14.0
11.1
December 31, 2019
97.92
–
14.4
11.2
8.3
Reference: Share of profit or loss of entities accounted for using equity method
For the fiscal year ended December 31, 2020: –For the fiscal year ended December 31, 2019: –Notes: 1. As the Company conducted a 30-for-1 common stock split effective on September 14, 2020, both basic and diluted
earnings per share were calculated based on the assumption that the stock split had been conducted at the beginning of the
fiscal year ended December 31, 2019.
2. Diluted earnings per share for the fiscal year ended December 31, 2019 is not stated because the Company’s stock was notlisted and thus the average stock price is not available during that fiscal year.
3. As the Company went public on the First Section of the Tokyo Stock Exchange on December 16, 2020, diluted earnings
per share for the fiscal year ended December 31, 2020 was calculated by deeming the average stock price during the period
from the listing date to December 31, 2020 as the average stock price during that fiscal year.
(2) Consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
As ofMillions of yen
Millions of yen%
Yen
December 31, 2020
46,096
20,15143.1
730.91
December 31, 201943,532
18,22741.3
670.07
Reference: Equity (Shareholders’ equity + Accumulated other comprehensive income)As of December 31, 2020: ¥19,853 million
As of December 31, 2019: ¥17,993 million
Note:
As the Company conducted a 30-for-1 common stock split effective on September 14, 2020, net assets per share wascalculated based on the assumption that the stock split had been conducted at the beginning of the fiscal year ended
December 31, 2019.
(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
Millions of yen
December 31, 2020
6,902
December 31, 2019
4,992

Cash flows frominvesting activities
Millions of yen(901)(1,588)Cash flows fromfinancing activities
Millions of yen(3,669)(3,146)

Cash and cash equivalents
at end of period
Millions of yen
10,8328,815

2. Dividends

Fiscal year ended
December 31, 2019
December 31, 2020
Fiscal year ending
December 31, 2021 (forecast)

Note:

Annual dividend per share
SecondThird
FiscalFirstquarter-end quarter-end quarter-end year-end
Yen
Yen
Yen
Yen
1,416.00
1,646.00––
36.00
1,080.00
–
–

–

47.00

–

47.00

Total

Total
dividends(Annual)Yen Millions of yen
3,062.00
2,790
1,977
–
94.00

Dividend
Dividend on
payout ratio
equity(Consolidated) (Consolidated)
%
106.1
46.0

%
15.0
10.3

49.9

1. While the Company conducted a 30-for-1 common stock split effective on September 14, 2020, the dividends per share forthe fiscal year ended December 31, 2019 and the second quarter-end of the fiscal year ended December 31, 2020 are
figures before the stock split. The annual dividend per share for the fiscal year ended December 31, 2020 is not presented
because the figures for the second quarter-end and the fiscal year-end cannot be simply added up due to the stock split. If
the effect of the stock split is taken into account, the dividend per share for the second quarter-end of the fiscal year ended
December 31, 2020 will be 36 yen, resulting in the annual dividend per share of 72 yen.
2. The total dividends include the dividends paid to Management Stock Ownership Plan Trust, Employee Stock Ownership
Plan Trust and Employee Stock Ownership Plan Trust through the Employee Shareholding Association (¥50 million and¥32 million for the fiscal years ended December 31, 2019 and 2020, respectively). The dividend payout ratio is calculatedby dividing the total dividends by profit attributable to owners of parent.

3. Forecast of consolidated financial results for the fiscal year ending December 31, 2021 (from January 1 to December 31, 2021)(Percentage indicates year-on-year changes.)
Profit attributable to
Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Millions
Millions
Millions
Millions%of yen%of yen%of yen%Yenof yen32,10013.7
2,000(25.0)
1,600(31.6)
1,200(27.3)
44.18
First six months
68,400
6.8
7,500
5.4
6,900
9.9
5,200
20.9
191.44
Fiscal year
[Notes](1) Changes in significant subsidiaries during the current period (Changes in specified subsidiaries resulting in the change in scopeof consolidation): None
(2) Changes in accounting policies, changes in accounting estimates and restatements of prior period financial statements
1) Changes in accounting policies due to application of new or revised accounting standards: None
2) Changes in accounting policies due to reasons other than above 1):
None3) Changes in accounting estimates:
None4) Restatements of prior period financial statements:
None(3) Number of shares of common stock issued
1) Number of shares issued (including treasury stock)
As of December 31, 2020:
27,581,366 shares
As of December 31, 2019:27,343,830 shares
2) Number of shares of treasury stock
As of December 31, 2020:
418,810 shares
As of December 31, 2019:
491,010 shares
3) Average number of shares of common stock during the period
Fiscal year ended December 31, 2020:
26,863,796 sharesFiscal year ended December 31, 2019:
26,852,820 shares
Notes: 1. As the Company conducted a 30-for-1 common stock split effective on September 14, 2020, the “Number of sharesissued (including treasury stock)”, “Number of shares of treasury stock” and “Average number of shares of common
stock during the period” were calculated based on the assumption that the stock split had been conducted at the
beginning of the fiscal year ended December 31, 2019.
2. The aggregate number of shares of the Company held by the Management Stock Ownership Plan Trust, Employee
Stock Ownership Plan Trust and Employee Stock Ownership Plan Trust through the Employee Shareholding
Association was included in the number of shares of treasury stock, which was to be deducted from the calculation of
the average number of shares of common stock during the period. It is noted that the average numbers of shares ofcommon stock held by these trusts after the stock split during the fiscal years ended December 31, 2019 and 2020
were 491,010 shares and 490,416 shares, respectively.

(Reference) Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended December 31, 2020 (from January 1 to December 31, 2020)(1) Non-consolidated operating results
Fiscal year ended
December 31, 2020
December 31, 2019

Net sales
Millions of yen
25,96624,924(Percentage indicates year-on-year changes.)
%
4.2
1.1

Basic earnings
per share

Operating profit
Millions of yen
%
2,026
92.2
1,053 (65.1)

Ordinary profit
Millions of yen
%
5,773
72.8
3,341
3.9

ProfitMillions of yen
5,106
2,220

%
130.0
33.7

Diluted earnings
per share

Fiscal year ended
Yen
Yen
December 31, 2020
190.08184.43
December 31, 201982.68–
Notes: 1. As the Company conducted a 30-for-1 common stock split effective on September 14, 2020, both basic and diluted
earnings per share were calculated based on the assumption that the stock split had been conducted at the beginning of the
fiscal year ended December 31, 2019.
2. Diluted earnings per share for the fiscal year ended December 31, 2019 is not stated because the Company’s stock was
not listed and thus the average stock price is not available during that fiscal year.
3. As the Company went public on the First Section of the Tokyo Stock Exchange on December 16, 2020, diluted earnings
per share for the fiscal year ended December 31, 2020 was calculated by deeming the average stock price during theperiod from the listing date to December 31, 2020 as the average stock price during that fiscal year.
(2) Non-consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
As ofMillions of yen
Millions of yen%
Yen
December 31, 2020
41,69920,51448.8
749.42
December 31, 201937,863
17,44845.8
645.93
Reference: Equity (Shareholders’ equity + Accumulated other comprehensive income)As of December 31, 2020: ¥20,356 million
As of December 31, 2019: ¥17,345 million
Note:
As the Company conducted a 30-for-1 common stock split effective on September 14, 2020, net assets per share wascalculated based on the assumption that the stock split had been conducted at the beginning of the fiscal year ended
December 31, 2019.
＜Summary for variance of non-consolidated financial result the fiscal year ended December 31, 2019 and the fiscal year ended
December 31, 2020＞
Financial result for the fiscal year ended December 31, 2020 differed from that of the previous fiscal year, mainly due to the decreased
expenses accompanied by the COVID-19 pandemic and the increased dividend income from its consolidated subsidiaries.
* This financial results report is not subject to audit procedures to be performed by certified public accountants or an audit firm.
* [Proper use of earning forecasts, and other special notes](Disclaimer with respect to earnings and other forecasts)
 The forward-looking statements including earnings forecast contained in this document are based on information currently
available to us and certain assumptions that we believe are reasonable. Accordingly, we can give no assurance that suchstatements will prove to be correct. Actual results may differ from the results anticipated in these forward-looking statements
due to a variety of factors. For further information on the forecast of consolidated financial results, please refer to “1. Overview
of Operating Results, etc. (1) Overview of operating results for the fiscal year ended December 31, 2020 (ii) Future outlook”
on page 4 of the Attached Materials.

The Company will hold a financial results briefing for institutional investors and securities analysts on Wednesday, February
17, 2021. Materials used at the financial results briefing will be posted on the Company’s website.

Contents of Attached Materials
1. Overview of Operating Results, etc. ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏP.

2(1) Overview of operating results for the fiscal year ended December 31, 2020 ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

P.

2(2) Overview of financial position for the fiscal year ended December 31, 2020 ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

P.

4(3) Basic policy for profit distribution and dividends for the fiscal year ending December 31, 2021 ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

P.

4

2. Basic Approach to Selection of Accounting Standards ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

P.

5

3. Consolidated Financial Statements and Major Notesꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

P.

6(1) Consolidated balance sheets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

P.

6(2) Consolidated statements of income and consolidated statements of comprehensive income ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

P.

8(3) Consolidated statements of changes in equity ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

P. 10(4) Consolidated statements of cash flows ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

P. 12(5) Notes to consolidated financial statements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

P. 14(Going concern assumption) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

P. 14(Segment information, etc.) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

P. 14(Per share information) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

P. 14(Subsequent events) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

P. 15

- 1 -

1. Overview of Operating Results, etc.
(1) Overview of operating results for the fiscal year ended December 31, 2020(i) Operating results for the fiscal year ended December 31, 2020
During the fiscal year ended December 31, 2020 (the “fiscal year under review”), global economic activities were significantly
restricted by the COVID-19 pandemic around the world. During and after the third quarter of the fiscal year under review,
there was some relaxation of pandemic-control measures; however, the economic outlook remained uncertain, reflecting thesecond and third waves of COVID-19.
The music instruments industry, in which Roland Corporation and its subsidiaries and associate (the “Roland Group”) operates,
was also affected by the COVID-19 pandemic, and many stores operated by our business partners were forced to close as aresult of pandemic-control measures implemented in countries across the world. The Roland Group also had to suspend
operations of its factory in China and its mainstay factory in Malaysia. On the other hand, demand for music instruments grewsignificantly, especially for electronic music instruments, which are suitable to be sold online, due to the prolonged stay-homeperiod.
Under such circumstances, with the corporate vision of “bringing the WAKUWAKU thrill and excitement to all the people in
the world,” the Roland Group have worked on “development of original high value products and services”, “customer creationand market development through a continuously strengthened bond between Roland and its enthusiastic fans”, “effective SCM
that secures business continuity without shortages or overstock” and “human resources development in support of growth andgood governance through visualization.”
To develop original high value products and services, we continued to work on product development aiming at reactivating
customers who once played but stopped for some reason and acquiring new customers, while refreshing our core productfamilies and adding new products to our lineup to strengthen our market competitiveness. In the development process, we
promoted the use of common platform for various product categories with an eye to medium- to long-term growth. We also
facilitated integrated planning that allows us to convert an idea to a product more efficiently and swiftly. Additionally, in orderto create a new business foundation, we focused our efforts on enhancing the content of the cloud-base subscription service
Roland Cloud that offers a variety of software sound sources as well as to build systems to develop new services to make theservice even more appealing. In May 2020, we released a software synthesizer ZENOLOGY that allows data sharing between
compatible Roland hardware and software.
To create customers and develop markets through a continuously strengthened bond between Roland and its enthusiastic fans,
we continued to accelerate the utilization of digital marketing. While many music events have been cancelled to prevent further
spread of COVID-19, we created attractive digital content and delivered the information to many potential and actualized
customers through partnerships with musicians and key influencers around the world. In October 2020, we held an online userinteractive event “Roland/BOSS Players Summit” in Japan. In terms of regional efforts, we carried out effective sales activities
with a focus on online activities to respond to growing demand from stay home — for electronic music instruments, whichbecame evident amid the COVID-19 pandemic, especially in our major markets, North America and Europe.
To achieve effective SCM that secures business continuity without shortages or overstock, despite the suspension of operationsof our mainstay factory to prevent the spread of COVID-19, we worked hard for early resumption of the operations by taking
various preventive measures at production sites. We also strove to substantially increase production and ensure the appropriate
inventory allocation in order to prepare for demand growth and another suspension of production activities.
To develop human resources in support of growth and good governance through visualization, we promoted the creation of aflexible working environment and HR system that can adapt to different working styles by increasing the engagement between
employers and employees through the proactive adoption of remote work and online meetings on a global basis to prevent the
spread of COVID-19.
Consequently, we reported net sales for the fiscal year under review of ¥64,044 million (up 1.3% year on year). In terms of
profit or loss, we reported operating profit of ¥7,115 million (up 35.0% year on year), with ordinary profit of ¥6,277 million(up 32.8%) and profit attributable to owners of parent of ¥4,301 million (up 63.6%).

[Keyboards]
Among mainstay product categories, sales, especially online sales, of FP series portable electronic pianos and GO series
electronic keyboards were strong, boosted by the emerging demand from stay home for electronic music instruments. During- 2 -and after the third quarter of the fiscal year under review, the expansion of sales channels in North America started to get on
track, which led to growth in sales in that region.
Consequently, sales of keyboards for the fiscal year under review stood at ¥17,842 million (up 4.3% year on year).

[Percussion and Wind Instruments]
Among mainstay product categories, despite sales of electronic drums adversely affected over a prolonged period bysuspension of operations of Roland Music Schools in China due to the COVID-19 pandemic, strong sales of the new V-Drums
Acoustic Design series resulted in sales growth, especially in Europe and Japan.
Sales were steady for electronic wind instruments, especially in Europe, China and emerging countries, boosted by the
emerging demand from stay home for electronic music instruments.
Consequently, sales of percussion and wind instruments for the fiscal year under review stood at ¥14,620 million (up 2.9% year
on year).

[Guitar-related Products]
Among mainstay product categories, despite strong performance of looper series, which allows users to enjoy playing an
instrument along with previously recorded performance, in Europe, sales of guitar effects dropped, reflecting the prolonged
effects of falls in Brick & Mortar sales and demand for live event use in North America, Japan and emerging countries due tothe COVID-19 pandemic.
As for amplifiers for music instruments, the growing demand from stay home for electronic music instruments invigorated thecompact amplifier market. Sales of the Company’s amplifiers also steadily grew thanks to continued strong sales of a wirelessheadphone personal guitar amplification system Waza-Air, which had been released in the previous fiscal year, in addition to
the revamp of KATANA, our popular guitar amplifier series.
Consequently, sales of guitar-related products for the fiscal year under review stood at ¥16,712 million (down 0.2% year onyear).

[Creation-related Products and Services]
Among mainstay product categories, sales of synthesizers fell, reflecting the weak demand for live event use due to the
COVID-19 pandemic, despite strong performance of new products, including a compact stage piano RD-88 and our flagshipsynthesizer JUPITER-X.
Sales of dance and DJ-related products declined due to a reactionary drop in sales of products released in the previous fiscal
year.
In the software and service domain, sales increased substantially thanks to, among other things, the launch of new price plans
and a new sales plan for software sound sources, as wells as software version upgrade for Roland Cloud.
Consequently, sales of creation-related products and services for the fiscal year under review stood at ¥8,010 million (down
3.1% year on year).

[Video and Professional Audio]
Among mainstay product categories, new demand for hybrid events — live events combined with live streaming— andgrowing demand for video distribution by corporations, educational organizations and individuals boosted sales of videorelated products significantly despite a drop in demand for event and rental uses due to the COVID-19 pandemic.
On the other hand, we struggled with sales of audio-related devices, affected by stagnant demand for capital expenditures.
Consequently, sales of video and professional audio for the fiscal year under review stood at ¥4,597 million (up 7.2% year onyear).

- 3 -(ii) Future outlook
We have made the consolidated financial forecasts for the fiscal year ending December 31, 2021 with net sales of ¥68,400
million (up 6.8% year on year), operating profit of ¥7,500 million (up 5.4%), ordinary profit of ¥6,900 million (up 9.9%) andprofit attributable to owners of parent of ¥5,200 million (up 20.9%).
The forward-looking statements in this document contain inherent risks and uncertainties insofar as they are based on future
projections and plans that may differ materially from the actual results achieved.

(2) Overview of financial position for the fiscal year ended December 31, 2020(i) Assets as of December 31, 2020
Total assets as of December 31, 2020 increased by ¥2,563 million year on year to ¥46,096 million. This was mainly due toincreases in cash and deposits of ¥2,017 million and inventories of ¥3,859 million, which were partially offset by a decrease intrade receivables of ¥2,982 million. The increases in cash and deposits resulted from the status of cash flows as described indetail below.
Total liabilities as of December 31, 2020 increased by ¥640 million year on year to ¥25,945 million. This was mainly due toincreases in trade payables of ¥1,097 million and provision for bonuses of ¥346 million, which were partially offset by adecrease in borrowings of ¥1,394 million.
Net assets as of December 31, 2020 increased by ¥1,923 million year on year to ¥20,151 million. This was mainly due to therecording of profit attributable to owners of parent of ¥4,301 million, which was partially offset by payment of dividends of¥2,275 million and a decrease in foreign currency translation adjustment of ¥487 million, reflecting the appreciation ofJapanese yen against major foreign currencies.
Consequently, the equity ratio as of December 31, 2020 increased by 1.7 percentage points year on year to 43.1%.

(ii) Cash flows for the fiscal year ended December 31, 2020
Cash and cash equivalents as of December 31, 2020 increased by ¥2,017 million year on year to ¥10,832 million.
Net cash provided by operating activities amounted to ¥6,902 million (up ¥1,910 million in the inflow year on year) mainly
due to the recording of profit before income taxes.
Net cash used in investing activities amounted to ¥901 million (down ¥686 million in the outflow year on year) mainly due topurchase of property, plant and equipment.
Net cash used in financing activities amounted to ¥3,669 million (up ¥523 million in the outflow year on year) mainly due topayment of dividends and repayment of borrowings.

(3) Basic policy for profit distribution and dividends for the fiscal year ending December 31, 2021
The Company aims to achieve sustainable growth of its corporate value while building empathy with all stakeholders throughthe maximization of added value created from business activities and appropriate distribution thereof.
The Company’s shareholder return policy is to make sustainable and stable dividend payments while flexibly purchasingtreasury shares taking into account various factors, including stock market trends and capital efficiency. Through these efforts,
we will, in principle, aim for a consolidated total return ratio of 50%, or at least 30% even if it is necessary to secure funds for
growth investment.
Given the above policy and financial standing of the Company, we will pay a fiscal year-end dividend of ¥36 per share(resulting in an annual dividend of ¥72 per share, given an interim dividend of ¥36 per share if the effect of the stock split istaken into account) for the fiscal year under review. For the fiscal year ending December 31, 2021, we plan to pay an annual
dividend of ¥94 per share (consisting of interim dividend of ¥47 per share and fiscal year-end dividend of ¥47 per share).

- 4 -2. Basic Approach to Selection of Accounting Standards
The Group prepares consolidated financial statements in accordance with generally accepted accounting principles in Japan(Japanese GAAP). The Group will work on the adoption of the International Financial Reporting Standards (IFRS) in an
appropriate manner, taking into consideration various domestic and international circumstances.

- 5 -3. Consolidated Financial Statements and Major Notes(1) Consolidated balance sheets
Previous fiscal year
(As of December 31, 2019)(Millions of yen)
Current fiscal year
(As of December 31, 2020)

AssetsCurrent assets:
Cash and deposits

8,815

10,832

Notes and accounts receivable – trade

8,913

5,930

Merchandise and finished goods

11,245

13,622Work in process

770

889

Raw materials and supplies

2,199

3,563

Other

1,518

1,558

Allowance for doubtful accounts

(398)

(338)

33,06436,058

11,271

10,877

Accumulated depreciation(8,509)(8,159)Buildings and structures, net

2,762

2,717

Machinery, equipment and vehicles

Total current assets
Non-current assets:
Property, plant and equipment:
Buildings and structures

1,222

1,091

Accumulated depreciation

(872)

(845)

Machinery, equipment and vehicles, net

349

246

Tools, furniture and fixtures

5,140

5,502

Accumulated depreciation(4,142)(4,377)

997

1,124

1,657

1,652

17

20

5,784

5,761

877

759

966

949

Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets:
Investment securities
Long-term loans receivable

32

5

Deferred tax assets

1,818

1,816

Other

1,037

854

Allowance for doubtful accounts

(48)

(110)

Total investments and other assets

3,806

3,517

10,46810,03843,53246,096

Total non-current assets
Total assets- 6 -Previous fiscal year
(As of December 31, 2019)(Millions of yen)
Current fiscal year
(As of December 31, 2020)

Liabilities
Current liabilities:
Notes and accounts payable – trade

4,130

5,228

Short-term borrowings

3,118

138

Current portion of long-term borrowings

1,000

3,935

Lease obligations

276

381

Accrued expenses

2,190

2,445

Income taxes payable

401

467

Provision for bonuses

1,062

1,441

62

84

Provision for bonuses for directors (and other officers)
Provision for product warranties

220

294

Provision for loss on competition law

574

562

Other

1,668

1,999

Total current liabilities

14,707

16,979Long-term borrowings

7,111

5,762

Lease obligations

685

674

Deferred tax liabilities

21

22

Provision for bonuses

32–

Provision for bonuses for directors (and other officers)

85–

Provision for product warranties

00Provision for share-based remuneration

225

217

Provision for share-based remuneration for directors (and other officers)

19

25

Retirement benefit liability

1,614

1,482

Asset retirement obligations

89

85

Other

712

694

10,598

8,965

25,30525,945

9,421

9,490

Non-current liabilities:

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity:
Share capital
Capital surplus–

69

Retained earnings

11,203

13,230Treasury shares

(473)

(403)

20,151

22,386

Total shareholders’ equity
Accumulated other comprehensive income:
Valuation difference on available-for-sale securities

(10)

(51)

Foreign currency translation adjustment(1,716)(2,203)Remeasurements of defined benefit plans

(432)

(278)

(2,158)(2,533)103

158

Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

-7-

131

139

18,227

20,15143,53246,096

(2) Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income
Previous fiscal year

(Millions of yen)
Current fiscal year

(From January 1, 2019
to December 31, 2019)(From January 1, 2020
to December 31, 2020)

Net sales

63,24764,044

Cost of sales

33,006

33,664Gross profit

30,24030,379Selling, general and administrative expenses

24,971

23,264

Operating profit

5,269

7,115

Interest income

3111

Dividend income

105

21

Subsidy income

4299

Gain on valuation of investments in money held in trust

39

–

Other

47

22

Total non-operating income

265

154

Interest expenses

68

34

Sales discounts

480

576

Foreign exchange losses

168

158

Listing expenses

19

133

Other

70

89

Total non-operating expenses

808

992

4,726

6,277

Gain on sales of non-current assets

19

125

Gain on sales of investment securities

11–

Gain on termination of retirement benefit plan

158–

Total extraordinary income

188

125

Loss on sales and retirement of non-current assets

19

29

Impairment loss

100–

Loss on valuation of investment securities

185–

Provision for loss on competition law

529–

Loss on competition law–

343

Loss related to COVID-19–

183

Total extraordinary losses

835

556

Profit before income taxes

4,080

5,846

Income taxes – current

1,712

1,636

Income taxes – deferred

(224)

(98)

Total income taxes

1,488

1,538

Profit

2,591

4,307

(37)

6

2,629

4,301

Non-operating income:Non-operating expenses:

Ordinary profit
Extraordinary income:Extraordinary losses:

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent-8-

Consolidated statements of comprehensive income
Previous fiscal year

(Millions of yen)
Current fiscal year

(From January 1, 2019
to December 31, 2019)(From January 1, 2020
to December 31, 2020)

Profit

2,591

4,307

Valuation difference on available-for-sale securities

194

(41)

Foreign currency translation adjustment

(394)

(485)

Remeasurements of defined benefit plans, net of tax

(268)

153

Total other comprehensive income

(469)

(373)

2,122

3,934

2,167

3,926

(44)

8

Other comprehensive income:Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests-9-(3) Consolidated statements of changes in equity
Previous fiscal year (from January 1, 2019 to December 31, 2019)(Millions of yen)
Shareholders’ equity
Share capital Capital surplus
Balance, January 1, 2019

9,421

469

Cumulative effects ofchanges in accounting
policies
Restated balance

Retainedearnings

Treasuryshares10,890

Total

(473)

25
9,421

469

10,916

20,30725(473)

20,333

Changes during period
Dividends of surplus(1,500)(1,500)

Profit (loss) attributable toowners of parent

2,629

2,629

(841)

(1,310)Purchase of investments incapital of consolidated
subsidiaries(469)

Net changes in items otherthan shareholders' equity–

Total changes during period

–

(469)

287

–

(181)

Balance, December 31, 2019

9,421

–

11,203(473)

20,151

Total
Remeasureaccumulated
ments ofother
defined benefit
comprehensive
plansincomeShare
acquisitionrights

Noncontrollinginterests

Total net assets

68

(157)

18,522

Accumulated other comprehensive income

Balance at January 1, 2019

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment(204)(1,328)(163)

Cumulative effects ofchanges in accounting
policies
Restated balance(1,696)–(204)(1,328)(163)(1,696)

25
68

(157)

18,548Changes during period
Dividends of surplus–(1,500)

Profit (loss) attributable toowners of parent

–

2,629

Purchase of investments incapital of consolidated
subsidiaries–(1,310)Net changes in items otherthan shareholders' equity

194

(387)

(268)

(462)

34

288

(138)

Total changes during period

194

(387)

(268)

(462)

34

288

(320)

Balance at December 31, 2019(10)

(1,716)(432)(2,158)103131

18,227- 10 -

Current fiscal year (from January 1, 2020 to December 31, 2020)(Millions of yen)
Shareholders’ equity
Share capital Capital surplus
Balance at January 1, 2020

9,421

–

69

69

Retainedearnings

Treasuryshares

11,203

Total

(473)

20,151

Changes during period
Issuance of new shares exercise of share acquisitionrightsDividends of surplus
Profit (loss) attributable toowners of parent

139(2,275)(2,275)

4,301

4,301

Purchase of treasury shares

(0)

(0)

Disposal of treasury shares

69

69

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at December 31, 2020

–
69

69

2,026

69

2,235

9,490

69

13,230(403)

22,386

Total
Remeasureaccumulated
ments ofother
defined benefit
comprehensive
plansincomeShare
acquisitionrights

Noncontrollinginterests

Total net assets

103

131

18,227

Accumulated other comprehensive income

Balance at January 1, 2020

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment(10)(1,716)(432)(2,158)Changes of items during period
Issuance of new shares exercise of share acquisitionrights–139

Dividends of surplus–(2,275)

Profit (loss) attributable toowners of parent

–

4,301

Purchase of treasury shares–(0)

Disposal of treasury shares–

69

Net changes in items otherthan shareholders' equity

(41)

(487)

153

(375)

55

8

(311)

Total changes during period

(41)

(487)

153

(375)

55

8

1,923

Balance at December 31, 2020

(51)

(2,203)(278)(2,533)158

139

20,151- 11 -

(4) Consolidated statements of cash flows
Previous fiscal year

(Millions of yen)
Current fiscal year

(From January 1, 2019
to December 31, 2019)(From January 1, 2020
to December 31, 2020)

Profit before income taxes

4,080

5,846

Depreciation

1,537

1,568

Impairment loss

100

–

4

4

Provision for loss on competition law

529–

Increase (decrease) in retirement benefit liability

(5)

81

(136)

(33)

Interest expenses

68

34

Foreign exchange losses (gains)

52

240

Loss (gain) on sales and retirement of non-current assets

(0)

(96)

Loss (gain) on sales of investment securities

(11)

–

Loss (gain) on valuation of investment securities

185–

Gain on termination of retirement benefit plan

(158)

–

Decrease (increase) in trade receivables

(846)

2,172

Decrease (increase) in inventories(1,239)(4,288)

Increase (decrease) in trade payables

248

1,478

Other, net

1,555

1,711

Subtotal

5,964

8,720

Interest and dividends received

128

32

Interest paid

(55)

(33)

Income taxes paid

(1,044)(1,816)

Net cash provided by (used in) operating activities

4,992

6,902

(1,036)(1,012)

45

149

(576)

(152)

Proceeds from sales of investment securities

16–

Long-term loan advances

(51)

(5)

Collection of long-term loans receivable

57

45

Other, net

(43)

73

(1,588)(901)

Cash flows from operating activities:

Amortization of goodwill

Interest and dividend income

Cash flows from investing activities:
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets

Net cash provided by (used in) investing activities- 12 -

Previous fiscal year

(Millions of yen)
Current fiscal year

(From January 1, 2019
to December 31, 2019)(From January 1, 2020
to December 31, 2020)

1,057(2,949)Proceeds from long-term borrowings

–

6,200

Repayments of long-term borrowings(1,012)(4,614)

Proceeds from issuance of shares–

90

Proceeds from sales of treasury shares–

226

Purchase of treasury shares–(0)(1,902)(2,275)

Dividends paid to non-controlling interests

(102)

–

Payments from changes in ownership interests in subsidiaries that
do not result in change in scope of consolidation

(878)

–

Other, net

(306)

(347)

(3,146)(3,669)Effect of exchange rate change on cash and cash equivalents

(494)

(313)

Net increase (decrease) in cash and cash equivalents

(237)

2,017

Cash and cash equivalents at beginning of period

9,052

8,815

Cash and cash equivalents at end of period

8,815

10,832

Cash flows from financing activities:
Net increase (decrease) in short-term borrowings

Dividends paid

Net cash provided by (used in) financing activities- 13 -

(5) Notes to consolidated financial statements(Going concern assumption)
Not applicable.
(Segment information, etc.)
Segment information is omitted because the Group operates a single segment of the Electronic Musical Instruments Business.
(Per share information)
Previous fiscal year
(from January 1, 2019
to December 31, 2019)

Current fiscal year
(from January 1, 2020
to December 31, 2020)

Net assets per share

670.07 yen

730.91 yen

Basic earnings per share

97.92 yen160.13 yen–

155.37 yen

Diluted earnings per share

Notes: 1. Diluted earnings per share for the fiscal year ended December 31, 2019 is not stated because the Company’s stock
was not listed and thus the average stock price is not available during that fiscal year.
2. As the Company went public on the First Section of the Tokyo Stock Exchange on December 16, 2020, diluted
earnings per share for the fiscal year ended December 31, 2020 was calculated by deeming the average stock priceduring the period from the listing date to December 31, 2020 as the average stock price during the fiscal year.
3. As the Company conducted a 30-for-1 common stock split effective on September 14, 2020, net assets per share,
basic earnings per share and diluted earnings per share were calculated based on the assumption that the stock split
had been conducted at the beginning of the fiscal year ended December 31, 2019.
4. For the purpose of calculating Net assets per share, the aggregate number of shares of the Company held by theManagement Stock Ownership Plan Trust, Employee Stock Ownership Plan Trust and Employee Stock Ownership
Plan Trust through the Employee Shareholding Association was included in the number of shares of treasury stock,which was to be deducted from the number of shares issued at the end of the fiscal year.
In addition, for the purpose of calculating Basic earnings per share and Diluted earnings per share, the aggregate
number of shares of the Company held by these trusts was also included in the number of shares of treasury stock,which was to be deducted from the calculation of the average number of shares of common stock during the period.
The average numbers of shares of common stock held by these trusts after the stock split during the fiscal years
ended December 31, 2019 and 2020 were 491,010 shares and 490,416 shares, respectively. Meanwhile, theaggregate number of shares of the Company held by these trusts as of December 31, 2019 and 2020 were 491,010
shares and 418,720 shares, respectively.
5. Basis for calculation of both basic and diluted earnings per share is as follows:(Millions of yen, unless otherwise stated)
Previous fiscal year
Current fiscal year
(from January 1, 2019(from January 1, 2020
to December 31, 2019)
to December 31, 2020)
Basic earnings per share
Profit attributable to owners of parent
Profit not attributable to common shareholders
Profit attributable to common shareholders of parent
Average number of shares of common stock during theperiod (Thousands of shares)

2,629

4,301

–

–

2,629

4,301

26,852

26,863

–

–

–

823

[–]

[823]

–

–

Diluted earnings per share
Adjustment to profit attributable to owners of parent
Number of shares of common stock increased(Thousands of shares)[of which, number of share acquisition rights](Thousands of shares)
Summary of potential shares not included in the calculationof diluted earnings per share due to their anti-dilutive effect- 14 -

6. Basis for calculation of Net assets per share is as follows:(Millions of yen, unless otherwise stated)
Previous fiscal year
Current fiscal year
(from January 1, 2019(from January 1, 2020
to December 31, 2019)
to December 31, 2020)
Total net assets

18,227

20,151

Deductions from total net assets

234

297

[of which, share acquisition rights]

[103]

[158]

[of which, non-controlling interests]

[131]

[139]

Net assets applicable to common stock at end of period

17,993

19,853

Number of shares of common stock at end of period used forthe calculation of net assets per share (Thousands of shares)

26,852

27,162(Subsequent events)
Not applicable.

- 15 -