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, 2022
(under Japanese GAAP)
February 13, 2023
Company name: Roland Corporation
Listing:
Tokyo Stock Exchange
Security code:
7944
URL:
https://www.roland.com/global/
Representative:
Gordon Raison, CEO and Representative Director
Contact:
Shunsuke Sugiura, CFO and Director
Phone:+81-53-523-0230
Scheduled date to hold ordinary general meeting of shareholders:March 29, 2023
Scheduled date to commence payment of dividends:
March 30, 2023
Scheduled date to file Annual Securities Report (Yukashoken Hokokusho):March 8, 2023
Preparation of supplementary briefing material on financial results:
Yes
Holding of financial results briefing:
Yes (for institutional investors and securities analysts)(Note) Amounts less than one million yen have been omitted.
1. Consolidated financial results for the fiscal year ended December 31, 2022 (from January 1 to December 31, 2022)(1) Consolidated operating results(Percentages indicate 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, 2022
95,840–10,751–
10,250
1.5
8,938
4.1
December 31, 2021
80,03225.0
11,09355.9
10,102
60.9
8,586
99.6
Note: Comprehensive income
For the fiscal year ended December 31, 2022: ¥11,062 million [(2.6)%]
For the fiscal year ended December 31, 2021: ¥11,361 million [188.8%]
Basic earnings
per share

Diluted earnings
per share

Ordinary profit tototal assets ratio

Return on equity

Fiscal year ended
Yen
Yen
December 31, 2022
326.98321.96
December 31, 2021
312.73306.26
Reference: Share of profit or loss of entities accounted for using equity method
For the fiscal year ended December 31, 2022: –For the fiscal year ended December 31, 2021: –

%
28.9
35.6

%
15.8
20.4

Operating profit
margin%11.2
13.9

Notes: The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) fromthe beginning of the fiscal year ended December 31, 2022. Net sales and operating profit of the previous fiscal year do notreflect this standard. Accordingly, year-on-year changes for net sales and operating profit against the fiscal year ended
December 31, 2021 are not presented.
(2) Consolidated financial position
Total assets
Net assets
Equity ratio
As ofMillions of yen
Millions of yen%
December 31, 2022
77,05633,74743.4
December 31, 2021
52,80728,656
53.7
Reference: Equity (Shareholders’ equity + Accumulated other comprehensive income)As of December 31, 2022: ¥33,467 million
As of December 31, 2021: ¥28,380 million(3) Consolidated cash flows
Cash flows from operating Cash flows from investing
activities
activities
Fiscal year ended
Millions of yen
Millions of yen
December 31, 2022
793
(11,351)
December 31, 2021
4,929
(803)

Net assets per share
Yen
1,228.49
1,030.19

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen
12,87910,506(6,071)8,781

2. Dividends
Annual dividend per share

Fiscal year ended
December 31, 2021
December 31, 2022
Fiscal year ending
December 31, 2023 (forecast)

Note:

First
SecondThird
quarter-end quarter-end quarter-end
Yen
Yen
Yen
–
69.00
–
–
78.00
–
–

85.00

–

Fiscalyear-end
Yen
69.00
78.00
85.00

Total

Total
dividends(Annual)Yen
138.00156.00Millions of yen
3,859
4,305

170.00

Dividend
Dividend on
payout ratio
equity(Consolidated) (Consolidated)
%
45.0
48.2

%
15.7
13.8

50.4

The total dividends include the dividends paid to the Board Benefit Trust, Employee Stock Ownership Plan Trust and Employee
Shareholding Association-type ESOP Trust (¥60 million and ¥57 million for the fiscal years ended December 31, 2021 and 2022,
respectively). The dividend payout ratio is calculated by dividing the total dividends by profit attributable to owners of parent.

3. Forecast of consolidated financial results for the fiscal year ending December 31, 2023 (from January 1 to December 31, 2023)(Percentages indicate year-on-year changes.)
Profit attributable to
Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per shareFirst six months
Fiscal year

Millions ofyen%Millions ofyen%Millions ofyen%Millionsof yen%Yen

48,800105,600

13.5
10.2

4,100
12,400(12.3)
15.3

4,100
12,400(14.5)
21.0

3,100
9,300

(21.1)
4.0

113.81340.73[Notes](1) Changes in significant subsidiaries during the current period (Changes in specified subsidiaries resulting in the change in scopeof consolidation): Yes
Newly added subsidiary : 1 company (Roland Drum Corporation)(2) Changes in accounting policies, changes in accounting estimates and restatements of prior period financial statements
1) Changes in accounting policies due to the application of new or revised accounting standards: Yes
2) Changes in accounting policies due to reasons other than the 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 shares)
As of December 31, 2022:
28,066,786 shares
As of December 31, 2021:
27,970,534 shares
2) Number of treasury shares
As of December 31, 2022:
824,172 shares
As of December 31, 2021:
421,931 shares
3) Average number of shares of common stock during the period
Fiscal year ended December 31, 2022:
27,336,507 sharesFiscal year ended December 31, 2021:
27,457,125 shares
Notes: The aggregate number of shares of the Company held by the Board Benefit Trust, Employee Stock Ownership Plan
Trust and Employee Shareholding Association-type ESOP Trust was included in the number of treasury shares, which
was to be deducted from the calculation of the average number of shares of common stock during the period. It is notedthat the average numbers of shares of common stock held by these trusts during the fiscal years ended December 31,
2021 and 2022 were 430,571 shares and 385,917 shares, respectively.

(Reference) Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended December 31, 2022 (from January 1 to December 31, 2022)(1) Non-consolidated operating results(Percentage indicates year-on-year changes.)
Net sales
Fiscal year ended
December 31, 2022
December 31, 2021

Operating profit

Millions of yen
34,356
29,624

%
16.0
14.1

Basic earnings
per share
Fiscal year ended
December 31, 2022
December 31, 2021

Millions of yen
7,471
3,626

%
106.0
79.0

Ordinary profit
Millions of yen
9,555
7,183

Profit%33.0
24.4

Millions of yen
7,678
6,018

%
27.6
17.9

Diluted earnings
per share

Yen
280.88219.19Yen
276.56214.65(2) Non-consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

As ofMillions of yen
Millions of yen%
December 31, 2022
63,91425,492
39.7
December 31, 2021
41,44523,856
57.3
Reference: Equity (Shareholders’ equity + Accumulated other comprehensive income)As of December 31, 2022: ¥25,396 million As of December 31, 2021: ¥23,741 million

Yen
932.24861.81* This financial results report is not subject to audit procedures by certified public accountants or an audit firm.
* [Proper use of earnings forecasts, and other special notes](Disclaimer with respect to earnings and other forecasts)

The forward-looking statements including the earnings forecast contained in this document are based on information currently
available and certain assumptions that are believed to be reasonable. Accordingly, please be advised that the Company does
not guarantee the achievement of the forecasts and the actual results may differ from the results described in this forwardlooking statements due to a variety of factors. For further information on the forecast of consolidated financial results, pleaserefer to “1. Overview of Operating Results, etc. (1) Overview of operating results for the fiscal year ended December 31, 2022(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 Tuesday, February 14,
2023. 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. ···································································································· P.2(1) Overview of operating results for the fiscal year ended December 31, 2022 ················································ P.2(2) Overview of financial position for the fiscal year ended December 31, 2022 ··············································· P.4(3) Basic policy for profit distribution and dividends for the fiscal year ending December 31, 2023 ························ P.5
2. Basic Approach to Selection of Accounting Standards··············································································· P.5
3. Consolidated Financial Statements and Major Notes················································································· P.6(1) Consolidated balance sheets ········································································································ P.6(2) Consolidated statements of income and consolidated statements of comprehensive income ······························ P.8(3) Consolidated statements of changes in equity ···················································································· P.10
(4) Consolidated statements of cash flows ···························································································· P.12
(5) Notes to consolidated financial statements ······················································································· P.13
(Going concern assumption) ········································································································ P.13
(Changes in accounting policies)···································································································· P.13
(Changes in reporting method)······································································································ P.13
(Segment information, etc.) ········································································································· P.13
(Per share information) ·············································································································· P.14
(Subsequent events) ·················································································································· P.15

-1-

1. Overview of Operating Results, etc.
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29 of March 31, 2020;
hereinafter, the “Accounting Standard for Revenue Recognition”) since the beginning of the fiscal year ended December 31, 2022.
Under the Accounting Standard for Revenue Recognition, sales discounts, which were previously recognized in non-operating
expenses, have been reclassified as deductions from net sales. With this change in our accounting standard, net sales and operating
profit decline, whereas ordinary profit, profit attributable to owners of parent, and cash flows remain unaffected.
Figures for the fiscal year ended December 31, 2022 (hereinafter, the “period under review”) as referred to in “Operating results forthe fiscal year ended December 31, 2022” represent the results after the application of the Accounting Standard for Revenue
Recognition. For this reason, direct year-on-year comparisons of these figures are not shown. Instead, to help you better understandthe operating performance for the period under review, year-on-year comparisons after adjustment are shown, which arepercentages calculated based on the assumption that the results for the period under review had been measured by the sameaccounting standard as used in the fiscal year ended December 31, 2021.

(1) Overview of operating results for the fiscal year ended December 31, 2022(i) Operating results for the fiscal year ended December 31, 2022
During the period under review, while new COVID-19 cases were contained to some extent and social and economic activities got
back on a recovery track, countries around the world underwent big changes, such as the prolonged Russia-Ukraine conflict, global
inflation, and drastic changes in exchange rate and interest rates. Such economic downside risks were noticeable especially fromthe second half of the period under review onward, making market conditions remain highly uncertain. In China, major cities wereplaced under lockdowns on a sporadic basis, and after the zero-Covid policy was lifted, new cases surged.
In the electronic musical instruments business hemisphere, compared to the pre-pandemic era, sales standards went on to become
a further solid position endorsed by the entrenched new lifestyle brought by the COVID-19 pandemic as a whole; however, demand
declines were sensed especially in China and Europe from the second half of the period under review onward. On the procurement
and supply sides, by implementing various measures, the circumstances have been moving out of the worst phase of COVID-19,
although difficulties in purchasing raw materials forced us to extend development periods. On the cost side, despite a decline trendof ocean transportation costs, raw materials prices remained higher compared to the pre pandemic level. To deal with these higher
cost and price, the Company has focused on to optimize its product prices with the careful eyes on the market conditions andcompetitive situations of each region.
Surrounded by these circumstances, our key strategies (1) Produce, (2) Reach, (3) Deliver, and (4) Support, were set forth underthe vision for our medium-term corporation plan, “Bringing the WAKUWAKU Thrill and Excitement to all the people in the World.”
As the third year of the Medium-term Business Plan, the Group grappled with (1) Development of high value-added products andservices that only we can provide, (2) Customer creation and market development through continuous engagement with our
enthusiastic fans, (3) Establishment of the world best SCM that never stops supplying products without stock shortages and overstockings, and (4) Human resources development, strengthening governance and visualization.
Regarding “Development of high value-added products and services that only we can provide,” while refreshing our core productfamilies and adding new products to our lineup to strengthen our market competitiveness, continued efforts were put into thedevelopment of products. They include the AIRA Compact series, portable electronic musical instruments that allow users to enjoy
full-scale electronic music easily, to acquire new customers and the ultimate sampling pad SPD-SX PRO for drummers, designed
for the most demanding gigs, to expand the market. In October, all the shares of Drum Workshop, Inc. (hereinafter, “DW”), a U.S.based drum manufacturer, were acquired aiming to reach a dominant position in the drum market and to offer innovations todrummers and other musicians. Additionally, toward achieving our medium- to long-term goal of evolving from a hardware provider
into a solutions provider, our effort was paid to enhance the content of the cloud-base subscription service, Roland Cloud that offersa variety of software sound sources, sounds, data for software updates, etc. Another efforts was extended to develop new services,such as Roland Piano App, a digital application of piano practice which could reach to additional contents if registered as a paid
membership of Roland Cloud service.
Regarding “Customer creation and market development through continuous engagement with our enthusiastic fans,” accelerated
use of digital marketing was a major driver. A special website of Roland at 50 was launched to commemorate the 50th anniversaryof our founding, and Roland/BOSS Players Summit 2022, an online user-interactive event which offered the 50th anniversary
concept model performance and other live performances was held. Meanwhile, based on a belief that it is highly important for us-2-to provide our customers with opportunities to touch our musical instruments and convince them of the value of our products before
making a decision to purchase our products, Store in Store (spaces dedicated solely to Roland products inside the stores of ourbusiness partners) were set up in major cities around the world. In August 2022, the first Roland-operated retail store called Roland
Store was opened in London, where communication with our customers both online and offline could be exchanged.
Regarding “Establishment of the world best SCM that never stops supplying products without stock shortages and over-stockings,”
various challenges in procurement, production, and logistics in the wake of the COVID-19 pandemic took place. In response to theglobal shortage of semiconductors and other raw materials, a medium- to long-term product roadmap was developed to ensure
necessary components earlier. Appropriate inventory allocation was realized with implementation of flexible production system
adjusting demand movements. A reduction in the number of models, which we have sought to achieve over the medium term,
progressed in line with the plan.
Regarding “Human resources development, strengthening governance and visualization,” our efforts to have more diverse
workstyles were recognized and we were awarded by the Minister of Health, Labour and Welfare the Kurumin certification as acompany that supports childrearing. On the personnel side, an employee engagement survey has been conducted on a global scale
since 2021 to boost employee engagement.

As a result of the above, during the period under review, the Group recorded net sales of ¥95,840 million (up 20.9% year on year
after adjustment) partly due to increased revenue driven by foreign exchange gains. In terms of profit, the Group recorded operating
profit of ¥10,751 million (up 5.5% year on year after adjustment), ordinary profit of ¥10,250 million (up 1.5% year on year), andprofit attributable to owners of parent of ¥8,938 million (up 4.1% year on year).

Sales performance by mainstay category is as shown below:[Keyboards] Net sales: ¥29,869 million (up 21.6% year on year after adjustment)
Among the mainstay categories, electronic pianos remained in stronger demand compared to the pre-COVID-19 pandemic era,
driven by brisk demand from people staying home for longer hours. The demand remained strong as a whole partly due to our effort
to expand channels, although the demand for low-end products in particular weakened.
[Percussion and Wind Instruments] Net sales: ¥23,046 million (up 22.0% year on year after adjustment)
Among the mainstay categories, sales of drums performed stronger than the previous fiscal year due in part to the affiliation of DW
in the Group, despite the influence of lockdowns in China and the delayed launch of some new products.
Sales of electronic wind instruments remained firm thanks to the launch of the region exclusive model, despite the short supply ofsome products.
[Guitar-related Products] Net sales: ¥23,540 million (up 24.7% year on year after adjustment)
Among the mainstay categories, sales of guitar effects continued to perform strongly, especially the Loop Station series and compact
effector “Waza Craft Pedal” series released in the previous fiscal year and multi-effects released in the current fiscal year performed
strongly.
Sales of musical instrument amplifiers, especially the mainstay KATANA series, remained firm although the demand declined in
China.
[Creation-related Products & Services] Net sales: ¥12,206 million (up 21.9% year on year after adjustment)
Among the mainstay categories, while supply shortage for synthesizers remained, the FANTOM-0 series and other new products
released in the current fiscal year continued to enjoy brisk sales.
The dance and DJ-related products domain continued to record strong sales, particularly the AIRA Compact series went well. In
addition, sales of the latest model of the long-selling Sampler Series, released in the fourth quarter of the previous fiscal year,
continued to perform strongly.
In the software and service domain, through Roland Cloud platform, the Group continued to release new software synthesizers andsound contents. The Group also started offering a piano lesson application service as well as an online service where users can sharecustomized settings of effects and amplifiers with each other.
[Video and Professional Audio] Net sales: ¥4,357 million (up 2.8% year on year after adjustment)-3-

Among the mainstay categories, video-related products were affected by supply constraints although events-related demand
recovered, which boosted demand for the products, while video distribution demand from individual users diminished.
Moreover, sales of the V-MODA brand mainstay products struggled despite the release of new models to the brand products.
(ii) Future outlook
Consolidated financial forecasts for the fiscal year ending December 31, 2023 is expected with net sales of ¥105,600 million (up10.2% year on year), operating profit of ¥12,400 million (up 15.3% year on year), ordinary profit of ¥12,400 million (up 21.0% year
on year), and profit attributable to owners of parent of ¥9,300 million (up 4.0% year on year).
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.

(2) Overview of financial position for the fiscal year ended December 31, 2022
(i) Assets as of December 31, 2022
Total assets as of December 31, 2022 increased by ¥24,249 million from the end of the previous year to ¥77,056 million. This is
attributable primarily to increases in trade receivables of ¥5,460 million, inventories of ¥7,082 million, property, plant andequipment of ¥1,912 million, intangible assets of ¥5,458 million due to purchase Drum Workshop, Inc. shares.
Total liabilities increased by ¥19,158 million from the end of the previous fiscal year to ¥43,309 million. This is attributableprimarily to an increase in borrowings of ¥19,448 million due to the fund of purchasing shares of Drum Workshop, Inc. andincreased working capital.
Net assets increased by ¥5,090 million from the end of the previous fiscal year to ¥33,747 million. This is attributable primarily
to the recognition of profit attributable to owners of parent of ¥8,938 million and a ¥2,058 million increase in foreign currencytranslation adjustment due to the continued depreciation of yen against major currencies, which were partially offset by a ¥4,082
million decrease in retained earnings due to the payment of dividends and a ¥1,924 million increase in treasury shares, a deduction
item from net asset, which reflects the repurchase of treasury shares.
As a result of the above, the equity ratio fell 10.3 percentage points from the end of the previous fiscal year to 43.4%.
(ii) Cash flows for the fiscal year ended December 31, 2022
During the period under review, cash and cash equivalents (“net cash”) increased by ¥1,724 million (a decrease by ¥2,051 million
for the same period of the previous fiscal year) to ¥10,506 million at the end of the period.
Cash flows from operating activities
Net cash provided by operating activities amounted to ¥793 million (¥4,929 million provided for the same period of the previous
fiscal year), which is attributable primarily to recording of profit before income taxes.
Cash flows from investing activities
Net cash used in investing activities amounted to ¥11,351 million (¥803 million used for the same period of the previous fiscal
year), which is attributable primarily to the purchase of shares of subsidiaries.
Cash flows from financing activities
Net cash provided by financing activities amounted to ¥12,879 million (¥6,071 million used for the same period of the previous
fiscal year), which is attributable primarily to an increase in borrowings, although this increase was offset partially by the
repurchase of treasury shares and the payment of dividends.

-4-

(3) Basic policy for profit distribution and dividends for the fiscal year ending December 31, 2023
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 purchasing treasury
shares taking into account various factors, including stock market trends and capital efficiency. Through this, the Company will,in principle, aim for a consolidated total return ratio of 50%, or a consolidated total return ratio of 30% or higher even if it isnecessary to secure funds for growth investment.
Given the above policy and financial standing of the Company, a fiscal year-end dividend of ¥78 per share (annual dividend of¥156 per share, which includes an interim dividend of ¥78 per share) will be paid for the fiscal year ended December 31, 2022.
An annual dividend of ¥170 per share (consisting of an interim dividend of ¥85 per share and a fiscal year-end dividend of ¥85
per share) is anticipated for the fiscal year ending December 31, 2023.

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, 2021)(Millions of yen)
Current fiscal year
(As of December 31, 2022)

AssetsCurrent assets:
Cash and deposits

8,781

10,506

Notes and accounts receivable – trade

7,444

–

Notes receivable – trade–2

Accounts receivable – trade–

12,902Merchandise and finished goods

15,50820,214Work in process

1,715

1,249

Raw materials and supplies

8,016

10,858

Other

1,470

2,561

Allowance for doubtful accounts

(313)

(394)

42,62357,902

10,71812,035

Accumulated depreciation(8,297)(8,336)

Buildings and structures, net

2,421

3,698

Machinery, equipment and vehicles

1,251

1,600

Accumulated depreciation(923)(1,078)

Machinery, equipment and vehicles, net

328

521

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

Tools, furniture and fixtures

6,055

7,277

Accumulated depreciation(4,667)(5,549)Tools, furniture and fixtures, net

1,387

1,727

1,626

1,640

92

182

5,857

7,770

Goodwill

20

3,266

Other

612

2,824

Total intangible assets

632

6,090

1,245

938

0

–

2,063

3,806

Other

486

659

Allowance for doubtful accounts

(101)

(110)

Total investments and other assets

3,693

5,293

10,183

19,15452,80777,056Land
Construction in progress
Total property, plant and equipment
Intangible assets

Investments and other assets:
Investment securities
Long-term loans receivable
Deferred tax assets

Total non-current assets
Total assets-6-

Previous fiscal year
(As of December 31, 2021)(Millions of yen)
Current fiscal year
(As of December 31, 2022)

Liabilities
Current liabilities:
Notes and accounts payable – trade
Short-term borrowings
Current portion of long-term borrowings

6,391

5,606

–

17,700

1,252

1,252

Lease obligations

376

612

Accrued expenses

2,995

3,024

Income taxes payable

360

482

Provision for bonuses

1,662

771

Provision for bonuses for directors (and other officers)

78

34

Provision for product warranties

373

281

Other

2,542

2,747

Total current liabilities

16,03332,513

5,822

7,570

416

1,518

Deferred tax liabilities

2

1

Provision for product warranties

1–

Provision for share awards

262

253

Provision for share awards for directors (and other officers)

58

78

Retirement benefit liability

725

432

Asset retirement obligations

86

87

Non-current liabilities:
Long-term borrowings
Lease obligations

Other

741

853

8,117

10,79624,15043,309

Share capital

9,585

9,613

Capital surplus

163

191

Retained earnings

18,89423,750Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity:

Treasury shares(482)(2,407)28,161

31,148Valuation difference on available-for-sale securities

140

68

Foreign currency translation adjustment

(178)

1,879

Remeasurements of defined benefit plans

258

370

Total accumulated other comprehensive income

219

2,319

Share acquisition rights

115

95

Non-controlling interests

161

184

28,65633,74752,80777,056

Total shareholders’ equity
Accumulated other comprehensive income:

Total net assets
Total liabilities and net assets- 7 -(2) Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income

Net sales

Previous fiscal year
(From January 1, 2021
to December 31, 2021)
80,032(Millions of yen)
Current fiscal year
(From January 1, 2022
to December 31, 2022)
95,840

Cost of sales

43,89556,484Gross profit

36,13739,356

Selling, general and administrative expenses

25,04328,605

Operating profit

11,093

10,751

Interest income

15

12

Dividend income

86

93

Subsidy income

51

122

Other

18

8

Total non-operating income

172

236

Interest expenses

25

71

Sales discounts

770–

Foreign exchange losses

259

652

Other

107

13

1,163

737

10,102

10,250Non-operating income:Non-operating expenses:

Total non-operating expenses
Ordinary profit
Extraordinary income:Gain on sales of non-current assets

375

48

Gain on liquidation of subsidiaries

–

246

375

294

Loss on sales and retirement of non-current assets

16

15

Impairment loss

72–

Loss on competition law

149–

Total extraordinary income
Extraordinary losses:

239

15

Profit before income taxes

Total extraordinary losses

10,23910,529

Income taxes – current

2,130

1,992

Income taxes – deferred

(479)

(417)

Total income taxes

1,650

1,575

Profit

8,588

8,954

2

16

8,586

8,938

Profit attributable to non-controlling interests
Profit attributable to owners of parent- 8 -Consolidated statements of comprehensive income
Previous fiscal year
(From January 1, 2021
to December 31, 2021)
8,588

Profit(Millions of yen)
Current fiscal year
(From January 1, 2022
to December 31, 2022)
8,954

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

191

(71)

2,044

2,066

536

112

2,772

2,107

11,361

11,062

11,33911,03821

23

Comprehensive income attributable to:
Owners of parent
Non-controlling interests- 9 -(3) Consolidated statements of changes in equity
Previous fiscal year (from January 1, 2021 to December 31, 2021)(Millions of yen)
Shareholders’ equity
Share capital Capital surplus
Balance as of January 1, 2021

9,490

69

94

94

Retainedearnings

Treasuryshares13,230

(403)

Total
22,386

Changes during period
Issuance of new shares –exercise of share acquisitionrights188

Dividends of surplus(2,922)(2,922)

Profit attributable to ownersof parent

8,586

8,586

Purchase of treasury shares

(121)

(121)

Disposal of treasury shares

42

42

Net changes in items otherthan shareholders’ equity–

Total changes during period

94

94

5,663

(78)

5,774

Balance as of December 31,
2021

9,585

163

18,894(482)

28,161

Total
Remeasureaccumulated-ments ofotherdefined benefit comprehensive
plansincomeShare
acquisitionrights

Noncontrollinginterests

Total net assets

158

139

20,151

Accumulated other comprehensive income

Balance as of January 1, 2021

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment(51)(2,203)(278)(2,533)

Changes of items during period
Issuance of new shares –exercise of share acquisitionrights–188

Dividends of surplus–(2,922)

Profit attributable to ownersof parent

–

8,586

Purchase of treasury shares

–

(121)

Disposal of treasury shares–

42

Net changes in items otherthan shareholders’ equity

191

2,024

536

2,752

(43)

21

2,731

Total changes during period

191

2,024

536

2,752

(43)

21

8,505

Balance as of December 31,
2021

140

(178)

258

219

115

161

28,656- 10 -

Current fiscal year (from January 1, 2022 to December 31, 2022)(Millions of yen)
Shareholders’ equity
Share capital Capital surplus
Balance as of January 1, 2022

9,585

163

27

27

Retainedearnings

TreasurysharesTotal

18,894(482)

28,161

Changes during period
Issuance of new shares –exercise of share acquisition
Rights55

Dividends of surplus(4,082)(4,082)

Profit attributable to ownersof parent

8,938

8,938

Purchase of treasury shares(2,000)(2,000)

Disposal of treasury shares

76

76

Net changes in items otherthan shareholders’ equity–

Total changes during period

27

27

4,856

(1,924)

2,987

Balance as of December 31,
2022

9,613

191

23,750(2,407)31,148

Accumulated other comprehensive income
Total
Valuation
Foreign
Remeasureaccumulateddifference on
currency-ments ofotheravailable-fortranslation defined benefit
comprehensive
plans
sale securities
adjustment
incomeShare
acquisitionrights

Noncontrollinginterests

115

161

Balance as of January 1, 2022

140

(178)

258

219

Total net assets

28,656

Changes of items during period
Issuance of new shares –exercise of share acquisitionrights–55

Dividends of surplus–(4,082)

Profit attributable to ownersof parent

–

8,938

Purchase of treasury shares–(2,000)

Disposal of treasury shares–76

Net changes in items otherthan shareholders’ equity

(71)

2,058

112

2,099

(19)

23

2,103

Total changes during period

(71)

2,058

112

2,099

(19)

23

5,090

Balance as of December 31,
2022

68

1,879

370

2,319

95

184

33,747- 11 -

(4) Consolidated statements of cash flows
Previous fiscal year

(Millions of yen)
Current fiscal year

(From January 1, 2021
to December 31, 2021)(From January 1, 2022
to December 31, 2022)

Profit before income taxes

10,23910,529Depreciation

1,608

1,981

Cash flows from operating activities:

Amortization of goodwill

494

Increase (decrease) in retirement benefit liability

4

(147)

(101)

(105)

Interest expenses

25

71

Foreign exchange losses (gains)

174

1,013

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

(359)

(33)

Loss (gain) on liquidation of subsidiaries

–

(246)

Decrease (increase) in trade receivables(347)(4,301)

Decrease (increase) in inventories(5,427)(1,105)

Increase (decrease) in trade payables(106)(4,143)

Other, net

1,653

(478)

Subtotal

7,367

3,126

Interest and dividends received

102

105

Interest paid

(24)

(71)

Income taxes paid

(2,516)(2,367)

Net cash provided by (used in) operating activities

4,929

793

(1,208)(1,272)

Proceeds from sale of property, plant and equipment

557

49

Purchase of intangible assets

(98)

(108)

Proceeds from collection of long-term loans receivable

31

6

Proceeds from liquidation of subsidiaries
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Other, net

–

227

–

(10,167)

(85)

(87)

Net cash provided by (used in) investing activities(803)(11,351)(143)

17,686

Interest and dividend income

Cash flows from investing activities:
Purchase of property, plant and equipment

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

1,500

3,000

Repayments of long-term borrowings(4,123)(1,252)

Proceeds from issuance of shares

145

35

Proceeds from sale of treasury shares

136

151

Purchase of treasury shares(263)(2,000)(2,922)(4,082)

(400)

(659)

(6,071)

12,879

(105)

(595)

Net increase (decrease) in cash and cash equivalents(2,051)

1,724

Cash and cash equivalents at beginning of period

10,832

8,781

Cash and cash equivalents at end of period

8,781

10,506

Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents- 12 -

(5) Notes to quarterly consolidated financial statements(Going concern assumption)
Not applicable(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition)
The Company has applied the Accounting Standard for Revenue Recognition since the beginning of the fiscal year ended December
31, 2022. Under the new standard, we recognize revenue upon the transfer of control of promised goods or services in an amountthat reflects the amount which we expect to receive in exchange for such goods or services. Under the new standard, sales discounts,
which were previously recognized in non-operating expenses, have been deducted from net sales.
While the Company applies the Accounting Standard for Revenue Recognition, in accordance with the transitional treatmentprescribed in the provision of paragraph 84 of the standard, the application had no impact on our retained earnings at the beginningof the fiscal year ended December 31, 2022.
In addition, “Notes and accounts receivable – trade,” which was presented under “Current assets” in the consolidated balance sheetof the previous fiscal year, has been included in and presented as “Notes receivable – trade” and “Accounts receivable – trade” fromthe current fiscal year. However, consolidated financial statements for past periods have not been reclassified using the newpresentation method, in accordance with the transitional treatment prescribed in paragraph 89-2 of the Accounting Standard for
Revenue Recognition.
As a result, during the period under review, net sales, gross profit, and operating profit each decreased by ¥953 million, but these
decreases had no impact on ordinary profit and profit before income taxes since non-operating expenses also decreased by ¥953
million.
(Application of Accounting Standard for Fair Value Measurement)
The Company has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019; hereinafter,
the “Accounting Standard for Fair Value Measurement”) since the beginning of the fiscal year ended December 31, 2022. In
accordance with the transitional treatment prescribed in paragraph 19 of the Accounting Standard for Fair Value Measurement andparagraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), the Company willprospectively apply the new accounting policies prescribed by the Accounting Standard for Fair Value Measurement. The above,
however, does not affect our consolidated financial statements.
(Application of Accounting Standards Codification (ASC) Topic 842 Leases issued by the U.S. Financial Accounting Standards
Board)
Overseas consolidated subsidiaries employing generally accepted accounting principles in the U.S. have applied ASC 842 Leases
since the fiscal year ended December 31, 2022. Under the new standard, in principle, the overseas consolidated subsidiaries
recorded all lease transactions as assets and liabilities in their balance sheets as a lessee.
As a result, “Buildings and structures, net” and “Machinery, equipment and vehicles, net” under “Property, plant and equipment”
increased by ¥164 million and ¥5 million respectively and “Lease obligations” under “Current liabilities” and “Lease obligations”
under “Non-current liabilities” increased by ¥139 million and ¥33 million respectively at the ended of the fiscal year ended
December 31, 2022. Furthermore, the above is insignificant to our profit or loss for the fiscal year ended December 31, 2022.
(Changes in reporting method)
Consolidated Balance Sheets
Goodwill, which was included in "Intangible assets" in the previous fiscal year, is separately stated from the fiscal year underreview because of increase in materiality in terms of amount.
To reflect this change in reporting method, the consolidated financial statements for the previous fiscal year have been reclassified.
As a result, ¥632 million presented in "Intangible assets" in the consolidated balance sheets for the previous fiscal year has been
reclassified as ¥20 million for "Goodwill" and ¥612 million for "Other."(Segment information, etc.)
Segment information is omitted because the Group operates a single segment of the Electronic Musical Instruments Business.

- 13 -

(Per share information)
Previous fiscal year
(from January 1, 2021

Current fiscal year
(from January 1, 2022

to December 31, 2021)

to December 31, 2022)

Net assets per share

1,030.19 yen

1,228.49 yen

Basic earnings per share

312.73 yen

326.98 yen

Diluted earnings per share

306.26 yen

321.96 yen

Notes: 1. For the purpose of calculating net assets per share, the aggregate number of shares of the Company held by the Board
Benefit Trust, Employee Stock Ownership Plan Trust, and Employee Shareholding Association-type ESOP Trust was
included in the number of treasury shares, which was to be deducted from the number of shares issued at the end of theperiod.
In addition, for the purpose of calculating basic earnings per share and diluted earnings per share, the aggregate numberof shares of the Company held by these trusts was also included in the number of treasury shares, which was to be deductedfrom the calculation of the average number of shares of common stock during the period. The average numbers of sharesof common stock held by these trusts during the fiscal years ended December 31, 2021 and 2022 were 430,571 shares and385,917 shares, respectively. Meanwhile, the aggregate number of shares of the Company held by these trusts as ofDecember 31, 2021 and 2022 were 421,767 shares and 353,957 shares, respectively.
2. Basis for calculation of both basic and diluted earnings per share is as follows:(Millions of yen, unless otherwise stated)

Previous fiscal year
(from January 1, 2021
to December 31, 2021)

Current fiscal year
(from January 1, 2022
to December 31, 2022)

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 (Thousand shares)

8,586

8,938

–

–

8,586

8,938

27,457

27,336

–

–

580

426

[580]

[426]

–

–

Diluted earnings per share
Adjustment to profit attributable to owners of parent
Number of shares of common stock increased(Thousand shares)[of which number of share acquisition rights (Thousand
shares)]Summary of potential shares not included in thecalculation of diluted earnings per share due to their antidilutive effect- 14 -

3. Basis for calculation of net assets per share is as follows:(Millions of yen, unless otherwise stated)
Previous fiscal year
(As of December 31, 2021)

Current fiscal year
(As of December 31, 2022)

28,65633,747

Deductions from total net assets

276

280

[of which, share acquisition rights]

[115]

[95]

[of which, non-controlling interests]

[161]

[184]

Net assets applicable to common stock at end of period

28,38033,467

Number of shares of common stock at end of period used
for the calculation of net assets per share (Thousands
shares)27,54827,242

Total net assets(Subsequent events)
Not applicable.

- 15 -