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, 2023
(under Japanese GAAP)
February 14, 2024
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:
Yuichi Hakamata, CFO and Executive Officer
Phone:+81-53-523-0230
Scheduled date to hold ordinary general meeting of shareholders:March 26, 2024
Scheduled date to commence payment of dividends:
March 27, 2024
Scheduled date to file Annual Securities Report (Yukashoken Hokokusho):March 5, 2024
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, 2023 (from January 1 to December 31, 2023)(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, 2023
102,445
6.9
11,871
10.4
11,154
8.8
8,151
(8.8)
December 31, 2022
95,840–10,751–
10,250
1.5
8,938
4.1
Note: Comprehensive income
For the fiscal year ended December 31, 2023: ¥10,799 million [(2.4)%]
For the fiscal year ended December 31, 2022: ¥11,062 million [(2.6)%]
Basic earnings
per share

Diluted earnings
per share

Return on equity

Fiscal year ended
Yen
Yen
December 31, 2023
297.97294.33
December 31, 2022
326.98321.96
Reference: Share of profit or loss of entities accounted for using equity method
For the fiscal year ended December 31, 2023: –For the fiscal year ended December 31, 2022: –Ordinary profit tototal assets ratio

%
22.2
28.9

Operating profit
margin

%
14.1
15.8

%
11.6
11.2

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. Accordingly, year-on-year changes for net sales and operating profit
against the fiscal year ended December 31, 2021, before the application of the said accounting standard are not presented.
(2) Consolidated financial position
Total assets
Net assets
Equity ratio
As ofMillions of yen
Millions of yen%
December 31, 2023
80,96940,11449.2
December 31, 2022
77,05633,747
43.4
Reference: Equity (Shareholders’ equity + Accumulated other comprehensive income)As of December 31, 2023: ¥39,808 million
As of December 31, 2022: ¥33,467 million

Net assets per share
Yen
1,450.74
1,228.49(3) Consolidated cash flows
Cash flows from operating Cash flows from investing Cash flows from financing Cash and cash equivalents
activities
activities
activities
at end of period
Fiscal year ended
Millions of yen
Millions of yen
Millions of yen
Millions of yen
December 31, 2023
15,428(3,576)(8,668)12,883
December 31, 2022
793
(11,351)
12,87910,506

2. Dividends

Fiscal year ended
December 31, 2022
December 31, 2023
Fiscal year ending
December 31, 2024 (forecast)

Note:

Annual dividend per share
First
SecondThird
Fiscalquarter-end quarter-end quarter-end year-end
Yen
Yen
Yen
Yen
–
78.00
–
78.00
–
85.00
–
85.00
–

85.00

–

85.00

Total
Yen
156.00170.00

Dividend
Dividend on
Total dividends
payout ratio
equity(Annual)(Consolidated) (Consolidated)
Millions of yen
%
%
4,305
48.2
13.8
4,710
57.8
12.7

170.0055.4

The total dividends include the dividends paid to the Board Benefit Trust, Employee Stock Ownership Plan Trust and Employee
Shareholding Association-type ESOP Trust (¥57 million and ¥50 million for the fiscal years ended December 31, 2022 and 2023,
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, 2024 (from January 1 to December 31, 2024)(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

45,10099,900

(2.2)
(2.5)

3,300
11,400(22.5)(4.0)

3,300
11,300(17.8)
1.3

2,500
8,500

(21.8)
4.3

90.83
308.37[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 the application of new or revised accounting standards: None
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, 2023:
28,163,038 shares
As of December 31, 2022:
28,066,786 shares
2) Number of treasury shares
As of December 31, 2023:
722,886 shares
As of December 31, 2022:
824,172 shares
3) Average number of shares of common stock during the period
Fiscal year ended December 31, 2023:
27,358,306 sharesFiscal year ended December 31, 2022:
27,336,507 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,
2022 and 2023 were 385,917 shares and 318,462 shares, respectively.

(Reference) Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended December 31, 2023 (from January 1 to December 31, 2023)(1) Non-consolidated operating results(Percentage indicates year-on-year changes.)
Net sales
Fiscal year ended
December 31, 2023
December 31, 2022

Operating profit

Millions of yen% Millions of yen
34,092(0.8)
6,285
34,35616.0
7,471
Basic earnings
per share

Fiscal year ended
December 31, 2023
December 31, 2022

Ordinary profit% Millions of yen(15.9)
6,946
106.0
9,555

Profit% Millions of yen(27.3)
5,110
33.0
7,678

%
(33.4)
27.6

Diluted earnings
per shareYen
186.78280.88Yen
184.50276.56(2) Non-consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

As ofMillions of yen
Millions of yen%
December 31, 2023
64,691
26,315
40.6
December 31, 2022
63,91425,492
39.7
Reference: Equity (Shareholders’ equity + Accumulated other comprehensive income)As of December 31, 2023: ¥26,245 million As of December 31, 2022: ¥25,396 million

Yen956.47932.24* 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 notguarantee the achievement of the forecasts and the actual results may differ from the results described in this 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, 2023 (ii)
Future outlook” on page 3 of the Attached Materials.
 The Company will hold a financial results briefing for institutional investors and securities analysts on Thursday, February 15,2024. 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, 2023 ················································

P.2(2) Overview of financial position for the fiscal year ended December 31, 2023 ···············································

P.3(3) Basic policy for profit distribution and dividends for the fiscal year ending December 31, 2024 ························

P.4

2. Basic Approach to Selection of Accounting Standards···············································································

P.4

3. Consolidated Financial Statements and Major Notes·················································································

P.5(1) Consolidated balance sheets ········································································································

P.5(2) Consolidated statements of income and consolidated statements of comprehensive income ······························

P.7(3) Consolidated statements of changes in equity ····················································································

P.9(4) Consolidated statements of cash flows ····························································································

P.11(5) Notes to consolidated financial statements ·······················································································

P.12(Going concern assumption) ········································································································

P.12(Segment information, etc.) ·········································································································

P.12(Per share information) ··············································································································

P.13(Subsequent events) ··················································································································

P.13

-1-

1. Overview of Operating Results, etc.
(1) Overview of operating results for the fiscal year ended December 31, 2023
(i) Operating results for the fiscal year ended December 31, 2023
During the fiscal year ended December 31, 2023 (hereinafter, “period under review”), the transition to a world after COVID-19
advanced significantly across the globe. At the same time, however, the global economic environment surrounding the Groupremained uncertain due to the protracted situation in Russia and Ukraine, a slowdown in the Chinese market, rising prices andinterest rates worldwide, and financial instability.
Overall demand for electronic musical instruments remained mainly firm, but there were some differences by region such as China,
where demand recovery has been slow, and also by product category such as digital pianos, which faced a reactionary decline after
stay-at-home demand. As for shipments, the easing of supply constraints caused by COVID-19 resulted in oversupply, and excess
dealer inventories, particularly in the U.S., and an continued adjustment phase toward normalization of the supply chain. On thecost side, although raw material prices remained high, there were improvements thanks to a decline in stubbornly high marinetransportation costs and other factors. Furthermore, to act with intelligence and with agility to the changing market conditions,spending has been reviewed in a timely and appropriate manner to generate profits through focused efforts.
Surrounded by these circumstances, the Group has set the Medium-term Business Plan, targeting for “Create Fans for Life! – To
become a brand loved by more music lovers- “under its long-term vision of “The World Leader in Music Creation-“. As the firstyear of the plan, the Group dedicated efforts to the following four strategies, (1) Create demand, (2) Expand market share, (3)Increase Lifetime Value (hereinafter, “LTV”), and (4) Strengthen foundation.
Regarding “Create demand,” while refreshing our core product families and adding new products to our lineup to strengthen ourmarket competitiveness, creating a new market with Game Changer products was our major focus during the period. Specifically,
through technological synergy with Drum Workshop, Inc. (hereinafter, “DW”), acquired in the previous fiscal year, DWe, a firstof-its-kind acoustic-electronic convertible drum set was launched. In addition, targeting the promising e-sports market expected to
thrive in the future, an audio Mixer for game streaming, BRIDGE CAST, was launched. Moreover, as a new service in partnershipwith a developer of a music generation AI, we started offering BGM CAST, a royalty-free background music service for BRIDGECAST through Roland Cloud.
Regarding “Expand market share,” an affordable keyboard, E-X10, was launched for the portable keyboard market, which is an
untapped market for the Group. In addition, in the portable keyboard and digital piano segments, new channels were explored in
response to changes in customer purchasing behavior. In emerging countries, strengthening our sales structure was emphasized
especially in India and Indonesia, where the purchasing power of the middle class is increasing in line with huge population growth.
Furthermore, to provide customers with a place where they can touch our musical instruments and be convinced of the value before
purchasing, the Group has been expanding Roland-operated retail stores called Roland Store in major cities around the world. The
first store in Japan was opened in Harajuku, Tokyo in October, 2023.
Regarding “Increase LTV,” in addition to revamping the user interface of Roland Cloud to significantly improve its usability,
software “GALAXIAS” was released, which integrates legendary Roland synthesizers and drum machines sounds. Also, the Grouphas been working on paid upgrades to our well-received FANTOM series synthesizers, and expanding Roland Cloud services tomake it available in categories beyond synthesizers. Moreover, the Roland Platform, centralized management system of customer
data, has been built to enhance our understanding of and communication with customers, and to improve the accuracy of our
products and services.
Regarding “Strengthen foundation,” our major effort was made to enhance our human resource system by globally deploying
systems such as “Right person, Right place” and a stock compensation system, to revitalize our people and organization. In addition,with the aim of accelerating innovation through the consolidation of our development divisions and improving employee
engagement and productivity, relocation of headquarters in Hamamatsu-shi, Shizuoka was determined to serve as a core researchand development center. Furthermore, ERP software update was decided for further business growth, as well as introduction of
production management systems to minimize loss of sales opportunities and shorten lead times.
As a result of the above, during the period under review, the Group recorded net sales of ¥102,445 million (up 6.9% year on year),partly due to the contribution of newly consolidated DW as well as the weakened yen. In terms of profit, the Group recorded
operating profit of ¥11,871 million (up 10.4% year on year), ordinary profit of ¥11,154 million (up 8.8% year on year), and profit
attributable to owners of parent of ¥8,151million (down 8.8% year on year). Furthermore, deferred tax assets in the prior fiscal year
adversely affected profit attributable to owners of parent as a one-off factor.
-2-

Sales performance (year-on-year change) by mainstay category is as shown below:[Keyboards] Net sales: ¥27,546 million (down 7.8% year on year)
Sales of electronic pianos struggled, owing to dealer inventory adjustments and intensified competition, in addition to a slowdown
in exceptionally high demand triggered by COVID-19.
[Percussion and Wind Instruments] Net sales: ¥29,342 million (up 27.3% year on year)
Sales of drums were generally firm in the Western countries, mainly thanks to the introduction of new products, although sales in
China were affected by the downsizing of music schools resulting from the backdrop of government regulations on tutoring schools
and COVID-19. Overall sales in the drums business grew significantly, thanks to the new consolidation of DW.
Sales of electronic wind instruments suffered due to market inventory adjustments in the mainstay markets of China and Japan, as
well as competition from new entrants, especially in China.

[Guitar-related Products] Net sales: ¥25,726 million (up 9.3% year on year)
Sales of guitar effects remained strong, thanks to new product launches, on top of a recovery from supply shortages in the previous
fiscal year.
Sales of musical instrument amplifiers remained strong, driven by solid demand as well as by the contribution of new products tothe performance, although it was affected by dealer inventory adjustments, particularly in the U.S.
[Creation-related Products & Services] Net sales: ¥12,662 million (up 3.7% year on year)
Demand for synthesizers remained generally firm, although there was a reactionary decline because many new products had beenlaunched in the previous fiscal year.
As to dance and DJ-related products, existing products showed signs of slowing down, although new product lines launched in thecurrent year contributed to sales.
In the software and service domain, Roland Cloud continued to provide software synthesizers, sound contents, and firmware updates
for hardware products, resulting in stable growth in membership.
[Video and Professional Audio] Net sales: ¥4,073 million (down 6.5% year on year)
Demand for video-related events recovered, and there was an increase in the demand for products. However, the demand for personal
livestreamers, influenced by the stay-at-home trend calmed down. Moreover, sales of the V-MODA brand headphones and otherproducts encountered challenges.
(ii) Future outlook
Consolidated financial forecasts for the fiscal year ending December 31, 2024, is expected with net sales of ¥99,900 million (down
2.5% year on year), operating profit of ¥11,400 million (down 4.0% year on year), ordinary profit of ¥11,300 million (up 1.3% year
on year), and profit attributable to owners of parent of ¥8,500 million (up 4.3% 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, 2023
(i) Assets as of December 31, 2023
Total assets as of December 31, 2023 increased by ¥3,912 million from the end of the previous year to ¥80,969 million. This is
attributable primarily to increases in cash and deposits of ¥2,377 million with details described in cash flows in the next section,
trade receivables of ¥899 million, and property, plant and equipment of ¥2,190 million, partially offset by a decrease ininventories of ¥2,178 million.
Total liabilities decreased by ¥2,454 million from the end of the previous fiscal year to ¥40,854 million. This is attributableprimarily to a decrease in borrowings of ¥3,639 million, partially offset by an increase in trade payables of ¥660 million.
Net assets increased by ¥6,366 million from the end of the previous fiscal year to ¥40,114 million. This is attributable primarily
to the recognition of profit attributable to owners of parent of ¥8,151 million and an increase in foreign currency translation
adjustment of ¥1,849 million due to the depreciation of the yen against major currencies, partially offset by a decrease in retained-3-earnings of ¥4,506 million due to payments of dividends.
As a result of the above, the equity ratio rose 5.7 percentage points from the end of the previous fiscal year to 49.2%.
(ii) Cash flows for the fiscal year ended December 31, 2023
During the period under review, cash and cash equivalents (“net cash”) increased by ¥2,377 million (an increase by ¥1,724
million for the same period of the previous fiscal year) to ¥12,883 million at the end of the period.
Cash flows from operating activities
Net cash provided by operating activities amounted to ¥15,428 million (¥793 million provided for the same period of the previous
fiscal year), which is attributable primarily to the recording of profit before income taxes and a decrease in working capital.
Cash flows from investing activities
Net cash used in investing activities amounted to ¥3,576 million (¥11,351 million used for the same period of the previous fiscal
year), which is attributable primarily to the capital outlay for the purchases of property, plant and equipment.
Cash flows from financing activities
Net cash used in financing activities amounted to ¥8,668 million (¥12,879 million provided for the same period of the previous
fiscal year), which is attributable primarily to repayments of borrowings and payments of dividends.
(3) Basic policy for profit distribution and dividends for the fiscal year ending December 31, 2024
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 ¥85 per share (annual dividend of¥170 per share, which includes an interim dividend of ¥85 per share) will be paid for the fiscal year ended December 31, 2023.
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, 2024.

2. Basic Approach to Selection of Accounting Standards
The Group prepares the 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 appropriatemanner, taking into consideration various domestic and international circumstances.

-4-3. Consolidated Financial Statements and Major Notes(1) Consolidated balance sheets
Previous fiscal year
(As of December 31, 2022)(Millions of yen)
Current fiscal year
(As of December 31, 2023)

AssetsCurrent assets:
Cash and deposits
Notes receivable - trade

10,506

12,883

2

2

Accounts receivable - trade

12,90213,802Merchandise and finished goods

20,21418,094Work in process

1,249

1,443

Raw materials and supplies

10,858

10,606

Other

2,561

2,311

Allowance for doubtful accounts

(394)

(485)

57,90258,659Total current assets
Non-current assets:
Property, plant and equipment:
Buildings and structures

12,035

12,515

Accumulated depreciation(8,336)(8,581)

Buildings and structures, net

3,698

3,934

Machinery, equipment and vehicles

1,600

1,910

(1,078)(1,299)521

610

Tools, furniture and fixtures

7,277

7,986

Accumulated depreciation(5,549)(6,203)Tools, furniture and fixtures, net

1,727

1,783

1,640

2,328

182

1,305

7,770

9,961

Goodwill

3,266

3,129

Other

2,824

3,110

Total intangible assets

6,090

6,240

Investment securities

938

1,107

Retirement benefit asset

-

891

3,806

3,510

Other

659

703

Allowance for doubtful accounts

(110)

(105)

Total investments and other assets

5,293

6,107

19,15422,30977,05680,969

Accumulated depreciation
Machinery, equipment and vehicles, net

LandConstruction in progress
Total property, plant and equipment
Intangible assets

Investments and other assets:

Deferred tax assets

Total non-current assets
Total assets-5-

Previous fiscal year
(As of December 31, 2022)(Millions of yen)
Current fiscal year
(As of December 31, 2023)

Liabilities
Current liabilities:
Notes and accounts payable – trade

5,606

6,266

Short-term borrowings

17,7004,300

Current portion of long-term borrowings

1,252

8,526

Lease obligations

612

744

Accrued expenses

3,024

3,306

Income taxes payable

482

415

Provision for bonuses

771

852

Provision for bonuses for directors (and other officers)

34

39

Provision for product warranties

281

335

Other

2,747

3,254

Total current liabilities

32,51328,041Long-term borrowings

7,570

10,056

Lease obligations

1,518

1,669

1

3

253

252

Non-current liabilities:

Deferred tax liabilities
Provision for share awards
Provision for share awards for directors (and other officers)

78

96

Retirement benefit liability

432

249

Asset retirement obligations

87

88

Other

853

396

10,796

12,81243,30940,854

Share capital

9,613

9,641

Capital surplus

191

124

Retained earnings

23,75027,334

Treasury shares(2,407)(2,207)

Total shareholders’ equity

31,14834,89268

153

Foreign currency translation adjustment

1,879

3,728

Remeasurements of defined benefit plans

370

1,032

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity:

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities

2,319

4,915

Share acquisition rights

Total accumulated other comprehensive income

9570

Non-controlling interests

184

235

33,747

40,114

77,05680,969Total net assets
Total liabilities and net assets- 6-

(2) Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income
Previous fiscal year
(From January 1, 2022
to December 31, 2022)
95,840Net sales(Millions of yen)
Current fiscal year
(From January 1, 2023
to December 31, 2023)
102,445

Cost of sales

56,48458,512Gross profit

39,35643,932

Selling, general and administrative expenses

28,60532,060Operating profit

10,751

11,8711236

Non-operating income:Interest income
Dividend income

93

85

Subsidy income

122

66

8

22

236

210

Interest expenses

71

144

Foreign exchange losses

652

760

Other

13

22

Total non-operating expenses

737

927

10,250

11,154Gain on sale of non-current assets

48

8Gain on liquidation of subsidiaries

246–

Total extraordinary income

294

8

Loss on sale and retirement of non-current assets

15

14

Total extraordinary losses

15

14

Profit before income taxes

10,529

11,148

Income taxes – current

1,992

2,821

Income taxes – deferred

(417)

134

Total income taxes

1,575

2,955

Profit

8,954

8,192

16

40

8,938

8,151

Other
Total non-operating income
Non-operating expenses:

Ordinary profit
Extraordinary income:Extraordinary losses:

Profit attributable to non-controlling interests
Profit attributable to owners of parent- 7-

Consolidated statements of comprehensive income
Previous fiscal year
(From January 1, 2022
to December 31, 2022)
8,954

Profit(Millions of yen)
Current fiscal year
(From January 1, 2023
to December 31, 2023)
8,192

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

(71)

85

2,066

1,859

112

662

2,107

2,606

11,062

10,79911,038

10,74823

51

Comprehensive income attributable to:
Owners of parent
Non-controlling interests- 8-(3) Consolidated statements of changes in equity
Previous 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

Treasuryshares

18,894

(482)

Total
28,161

Changes during period
Issuance of new shares exercise of share acquisitionrights55

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

Total
Remeasureaccumulated
ments ofother
defined benefit
comprehensive
plansincomeShare
acquisitionrights

Noncontrollinginterests

Total net assets

115

161

28,656

Accumulated other comprehensive income

Balance as of January 1, 2022

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

140

(178)

258

219

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- 9-

Current fiscal year (from January 1, 2023 to December 31, 2023)(Millions of yen)
Shareholders’ equity
Share capital Capital surplus
Balance as of January 1, 2023

9,613

191

27

27

Retainedearnings

Treasuryshares23,750(2,407)

Total
31,148Changes during period
Issuance of new shares exercise of share acquisitionrights55

Dividends of surplus(4,506)(4,506)

Profit attributable to ownersof parent

8,151

8,151

Purchase of treasury shares
Disposal of treasury shares(94)

Change in scope of
consolidation

(0)

(0)

199

104

(60)

(60)

Net changes in items otherthan shareholders' equity–

Total changes during period

27

(66)

3,584

199

3,744

Balance as of December 31,
2023

9,641

124

27,334(2,207)34,892

Accumulated other comprehensive income

Balance as of January 1, 2023

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

68

1,879

Total
Remeasureaccumulated
ments ofother
defined benefit
comprehensive
plansincome
370

2,319

Share
acquisitionrights

Noncontrollinginterests

95

184

Total net assets

33,747

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

Dividends of surplus–(4,506)

Profit attributable to ownersof parent

–

8,151

Purchase of treasury shares–(0)

Disposal of treasury shares–

104

Change in scope of
consolidation

–

(60)

Net changes in items otherthan shareholders' equity

85

1,849

662

2,596

(25)

51

2,622

Total changes during period

85

1,849

662

2,596

(25)

51

6,366

Balance as of December 31, 2023

153

3,728

1,032

4,915

70

235

40,114- 10 -

(4) Consolidated statements of cash flows
Previous fiscal year

(Millions of yen)
Current fiscal year

(From January 1, 2022
to December 31, 2022)(From January 1, 2023
to December 31, 2023)

Profit before income taxes

10,529

11,148Depreciation

1,981

2,397

94

358

Increase (decrease) in retirement benefit liability

(147)

(154)

Interest and dividend income

(105)

(121)

71

144

1,013

518

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

(33)

6

Loss (gain) on liquidation of subsidiaries

(246)

–

Decrease (increase) in trade receivables(4,301)(46)

Decrease (increase) in inventories(1,105)

4,677

Increase (decrease) in trade payables(4,143)(849)

Other, net

(478)

192

Subtotal

3,126

18,272

Interest and dividends received

105

121

Interest paid

(71)

(149)

(2,367)(2,815)793

15,428(1,272)(3,084)49

18

Purchase of intangible assets

(108)

(402)

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

227–(10,167)

(50)

(80)

(58)

Net cash provided by (used in) investing activities(11,351)(3,576)

Net increase (decrease) in short-term borrowings

17,686(13,404)

Proceeds from long-term borrowings

3,000

12,100

Repayments of long-term borrowings(1,252)(2,339)Proceeds from issuance of shares

35

84

Proceeds from sale of treasury shares

151

190

Purchase of treasury shares(2,000)(0)

Dividends paid

(4,082)(4,506)

(659)

(792)

12,879(8,668)

Effect of exchange rate change on cash and cash equivalents

(595)

(762)

Net increase (decrease) in cash and cash equivalents

1,724

2,421

Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting fromchange in scope of consolidation
Cash and cash equivalents at end of period

8,781

10,506–(43)

10,506

12,883

Cash flows from operating activities:

Amortization of goodwill

Interest expenses
Foreign exchange losses (gains)

Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

Cash flows from financing activities:

Other, net
Net cash provided by (used in) financing activities- 11 -

(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.

- 12 -

(Per share information)
Previous fiscal year
(from January 1, 2022
to December 31, 2022)
Net assets per share

Current fiscal year
(from January 1, 2023
to December 31, 2023)

1,228.49 yen

1,450.74 yen

Basic earnings per share

326.98 yen

297.97 yen

Diluted earnings per share

321.96 yen

294.33 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, 2022 and 2023 were 385,917 shares and318,462 shares, respectively. Meanwhile, the aggregate number of shares of the Company held by these trusts as ofDecember 31, 2022 and 2023 were 353,957 shares and 281,328 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
Current fiscal year
(from January 1, 2022
(from January 1, 2023
to December 31, 2022)
to December 31, 2023)
Basic earnings per share
Profit attributable to owners of parent

8,938

8,151

–

–

Profit attributable to common shareholders of parent

8,938

8,151

Average number of shares of common stock during theperiod (Thousand shares)

27,33627,358

–

–

426

337

[426]

[337]

–

–

Profit not attributable to common shareholders

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
3. Basis for calculation of net assets per share is as follows:(Millions of yen, unless otherwise stated)
Previous fiscal year
Current fiscal year
(As of December 31, 2022)(As of December 31, 2023)
Total net assets

33,747

40,114

Deductions from total net assets

280

305

[of which, share acquisition rights]

[95]

[70]

[of which, non-controlling interests]

[184]

[235]

Net assets applicable to common stock at end of period

33,46739,808

Number of shares of common stock at end of period used
for the calculation of net assets per share (Thousands
shares)27,24227,440(Subsequent events)
Not applicable.

- 13 -