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, 2021
(under Japanese GAAP)
February 10, 2022
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
Scheduled date to hold ordinary general meeting of shareholders:March 30, 2022
Scheduled date to commence payment of dividends:
March 31, 2022
Scheduled date to file Annual Securities Report (Yukashoken Hokokusho): March 9, 2022
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, 2021 (from January 1 to December 31, 2021)(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, 2021
80,03225.0
11,09355.9
10,102
60.9
8,586
99.6
December 31, 2020
64,044
1.3
7,115
35.0
6,277
32.8
4,301
63.6
Note: Comprehensive income
For the fiscal year ended December 31, 2021: ¥11,361 million [188.8%]
For the fiscal year ended December 31, 2020: ¥3,934 million [ 85.4%]
Basic earnings
Diluted earnings
Ordinary profit toOperating profit
Return on equity
per shareper share
total assets ratio
marginFiscal year ended
Yen
Yen
%
%
%
December 31, 2021
312.73306.26
35.6
20.4
13.9
December 31, 2020
160.13
155.37
22.7
14.0
11.1
Reference: Share of profit or loss of entities accounted for using equity method
For the fiscal year ended December 31, 2021: –For the fiscal year ended December 31, 2020: –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, 2020.
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 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
As ofMillions of yen
Millions of yen%
December 31, 2021
52,80728,656
53.7
December 31, 2020
46,096
20,151
43.1
Reference: Equity (Shareholders’ equity + Accumulated other comprehensive income)As of December 31, 2021: ¥28,380 million
As of December 31, 2020: ¥19,853 million(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
Millions of yen
December 31, 2021
4,929
December 31, 2020
6,902

Cash flows frominvesting activities
Millions of yen
(803)
(901)

Net assets per share
Yen
1,030.19
730.91

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(6,071)
8,781(3,669)10,832

2. Dividends

Fiscal year ended
December 31, 2020
December 31, 2021
Fiscal year ending
December 31, 2022 (forecast)

Note:

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

Total

Total
dividends(Annual)Dividend
Dividend on
payout ratio
equity(Consolidated) (Consolidated)

Yen Millions of yen––

1,080.00
69.00

–
–

36.00
69.00

–
138.00

–

78.00

–

78.00

156.00

1,977
3,859

%

%

46.0
45.0

10.3
15.7

50.2

1. As the Company conducted a 30-for-1 common stock split effective on September 14, 2020, the dividends per share forthe second quarter-end of the fiscal year ended December 31, 2020 is figure before the stock split. The annual dividend pershare for the fiscal year ended December 31, 2020 is not presented because the figures for the second quarter-end and thefiscal year-end cannot be simply added up due to the stock split. If the effect of the stock split is taken into account, thedividend per share for the second quarter-end of the fiscal year ended December 31, 2020 will be 36 yen, resulting in theannual dividend per share of 72 yen.
2. The total dividends include the dividends paid to the Board Benefit Trust, Employee Stock Ownership Plan Trust and
Employee Shareholding Association-type ESOP Trust (¥32 million and ¥60 million for the fiscal years ended December
31, 2020 and 2021, respectively). The dividend payout ratio is calculated by dividing the total dividends by profit
attributable to owners of parent.
3.The Company also plan to purchase treasury shares of up to ¥2 billion in total during the period between February 14, 2022
and June 23, 2022. If the Company conducts the purchase of treasury shares in the full amount, the consolidated total
return ratio for the fiscal year ended December 31, 2021 will be 68.2%, with the annual dividend of ¥138.

3. Forecast of consolidated financial results for the fiscal year ending December 31, 2022 (from January 1 to December 31, 2022)(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
Millionsof yen%of yen%of yen%of yen%Yen––(37.0)(43.4)
40,600
4,600
4,700
3,500
127.38First six months
–
–
15.8
1.3
85,00011,60011,7008,700
316.75
Fiscal year
Note: 1. Accounting Standard for Revenue Recognition(ASBJ Statement No. 29, revised on March 31, 2020 effective from the
beginning of the consolidated fiscal year that commences on or after April 1, 2021) will be newly applied to in calculating
the forecasts of net sales and operating profit for the fiscal year ending December 31, 2022. Accordingly, year-on-yearchanges from the actual results for the fiscal year ended December 31, 2021 are not presented. The forecasts of net sales
and operating profit for the fiscal year ending December 31, 2022 calculated in line with the same standard as was used in
the fiscal year ended December 31, 2021 are as follows:First six months
Fiscal year

Net sales¥41,000 million¥85,800 million(4.7)%
7.2 %Operating profit(36.3)%¥5,000 million
11.8 %¥12,400 million

2. The Company’s Board of Directors, at the meeting held on February 10, 2022, resolved to purchase treasury shares.
Accordingly, the figures of “Basic earnings per share” in the forecast of consolidated financial results for the fiscal year
ending December 31, 2022 reflect the impact of the purchase of treasury shares. For details on the purchase of treasury
shares, please refer to “Notice of Decision on Matters Related to Acquisition of Treasury Stock” released today (onFebruary 10, 2022).
[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 shares)
As of December 31, 2021:
27,970,534 shares
As of December 31, 2020:
27,581,366 shares
2) Number of treasury shares
As of December 31, 2021:
421,931 shares
As of December 31, 2020:
418,810 shares
3) Average number of shares of common stock during the period
Fiscal year ended December 31, 2021:
27,457,125 sharesFiscal year ended December 31, 2020:
26,863,796 shares
Notes: 1. As the Company conducted a 30-for-1 common stock split effective on September 14, 2020, the “Average number ofshares of common stock during the period” was calculated based on the assumption that the stock split had been
conducted at the beginning of the fiscal year ended December 31, 2020.
2. 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 noted that the average numbers of shares of common stock held by these trusts after the stock split during the
fiscal years ended December 31, 2020 and 2021 were 490,416 shares and 430,571 shares, respectively.
(Reference) Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended December 31, 2021 (from January 1 to December 31, 2021)(1) Non-consolidated operating results
Fiscal year ended
December 31, 2021
December 31, 2020

Net sales
Millions of yen
29,62425,966
Basic earnings
per share(Percentage indicates year-on-year changes.)
%
14.1
4.2

Operating profit
Millions of yen
%
3,626
79.0
2,026
92.2

Ordinary profit
Millions of yen
%
7,183
24.4
5,773
72.8

ProfitMillions of yen
6,018
5,106

%
17.9
130.0

Diluted earnings
per share

Fiscal year ended
Yen
Yen
December 31, 2021
219.19214.65
December 31, 2020
190.08184.43
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, 2020.
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 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
As ofMillions of yen
Millions of yen%
December 31, 2021
41,44523,85657.3
December 31, 2020
41,69920,51448.8
Reference: Equity (Shareholders’ equity + Accumulated other comprehensive income)As of December 31, 2021: ¥23,741 million
As of December 31, 2020: ¥20,356 million

Net assets per shareYen
861.81
749.42* This financial results report is not subject to audit procedures 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 and assumptions. Actual results may differ from the results anticipated in these forward-looking statements due to avariety of factors. For further information on the forecast of consolidated financial results, please refer to “1. Overview ofOperating Results, etc. (1) Overview of operating results for the fiscal year ended December 31, 2021 (ii) Future outlook” onpage 4 of the Attached Materials.
 The Company will hold a financial results briefing for institutional investors and securities analysts on Monday, February 14,2022. 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, 2021 ················································P.

2(2) Overview of financial position for the fiscal year ended December 31, 2021 ···············································

P.

4(3) Basic policy for profit distribution and dividends for the fiscal year ending December 31, 2022 ························

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. 13(Going concern assumption) ········································································································

P. 13(Segment information, etc.) ·········································································································

P. 13(Per share information) ··············································································································

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

P. 14

-1-

1. Overview of Operating Results, etc.
(1) Overview of operating results for the fiscal year ended December 31, 2021
(i) Operating results for the fiscal year ended December 31, 2021
During the fiscal year ended December 31, 2021 (the “fiscal year under review”), the global economy remained unstable alongwith the difficulty in foreseeing when the COVID-19 pandemic begins to subside. This was due in part to the emerging
variants and breakthrough infections, which resulted in the rebound of COVID-19 cases, despite the resumption of economic
activities as more and more people got vaccinated.
The electronic musical instruments business has continued to enjoy demand that is even greater than before the pandemic. Thisis because an increasing number of people take up a challenge to start playing musical instruments or resume musicalperformance to spend their leisure time as a new lifestyle has become normal amid the prolonged “With Corona” period.
However, on the procurement side, the Group continued to suffer from problems such as the global shortage ofsemiconductors and a significant rise in raw material prices. On the production side, Malaysia, where our main factory is
located, experienced a worsening outbreak of COVID-19 from the latter half of the second quarter to the latter half of the third
quarter of the current fiscal year. Accordingly, in accordance with the instructions of the Malaysian government andauthorities, our Malaysia factory operation was restricted and suspended. On the logistics side, the global logistics delays due
for example to U.S. port congestion led to extended lead times.

Surrounded by these circumstances, we underscored its key strategies (1)Produce, (2)Reach, (3)Deliver and (4)Support, underthe vision for our medium-term corporation plan, “Bringing the WAKUWAKU Thrill and Excitement to all the people in theWorld”. As the second year of the Midium-term Business plan, we grappled with (1)Development of high value added
products and services 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 over-stockings, and (4) Human resources development, strengthening governance and visualization.
Regarding “Development of high value-added products and services that only we can provide”, we continued to work on thedevelopment of products, such as an electronic guitar equipped with synthesizer sounds, to acquire new customers, whilerefreshing our core product families and adding new products to our lineup to strengthen our market competitiveness. In thedevelopment process, we promoted the use of a common platform for various product categories and established a system thatallows us to convert an idea into a product more efficiently and swiftly with a view to growth over the medium- to long term.
Additionally, toward achieving our medium- to long-term goal of evolving from a hardware provider into a solutions provider,we focused our efforts on enhancing the content of the cloud-base subscription service, Roland Cloud that offers a variety ofsoftware sound sources and sounds, as well as developing new services to make the service even more appealing. In
November, we released Roland Cloud Connect, a service that allows customers to enjoy a variety of Roland Cloud contents
seamlessly by connecting it with our synthesizers wirelessly.
Regarding “Customer creation and market development through continuous engagement with our enthusiastic fans”, we
continued to accelerate the use of digital marketing. As a new lifestyle has become normal in the “With Corona” era, being
connected with end users online has become increasingly important. Given these circumstances, we tried to promote theConversion Partner Program, a program delivering digital content that is compelling for customers in collaboration with ourbusiness partners and ultimately driving sales in each country. Meanwhile, based on the conviction that it is highly importantfor us to provide our customers with opportunities to touch our musical instruments and convince them of the value of our
products before they make the decision to purchase our products, we set up Store in Store (spaces dedicated solely to Roland
products inside the stores of our business partners) in major cities around the world. At Store in Store in Europe, we launched
an online service called Roland Live to serve customers who are at home, as a new initiative in the “New Normal” of life with
COVID-19. In October 2021, we held Roland/BOSS Players Summit 2021, an online user-interactive event, in Japan, as partof our continued efforts to forge a new bond with customers.
Regarding “Establishment of the world best SCM that never stops supplying products without stock shortages and overstockings”, we took on various challenges in procurement, production, and logistics in the wake of the COVID-19 pandemic.
In response to the global shortage of semiconductors and other raw materials, we made efforts such as purchasing materials
from markets to build up inventories earlier, developing a long-term purchasing plan, and modifying designs to accommodate
our products to substitute parts. On the production side, we implemented thoroughgoing infection prevention measures tominimize the impact of the suspended operation of our Malaysia factory. Also, to meet growing demand, we started the
production of pianos at our factory in China. On the logistics side, while the lead time had extended in line with increased
logistics volume worldwide, we successfully minimized its impact on our earnings for the fiscal year under review by
optimizing the regional allocation of logistics resources and driving the sales of in-stock products in local markets. A reductionin 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”, the Group was awarded the highest
3-star Eruboshi (“L-Star”) certification in July as an excellent company that contributed to women’s empowerment inaccordance with the Act on Promotion of Women’s Participation and Advancement in the Workplace. In terms of the personnel
system, we have officially adopted flexible working hours and remote work systems, which we had worked to develop since
the previous fiscal year, in a bid to adapt to the “New Normal” of life with COVID-19.

Consequently, the Company reported net sales for the fiscal year under review of ¥80,032 million (up 25.0% year on year). In
terms of profit or loss, we reported operating profit of ¥11,093 million (up 55.9% year on year), ordinary profit of ¥10,102
million (up 60.9%), and profit attributable to owners of parent of ¥8,586 million (up 99.6%).
-2-

Sales performance by mainstay category is as shown below:[Keyboards]
Among the mainstay categories, sales of electronic pianos remained solid, driven by increased demand from people staying
home for longer hours as the new lifestyle has become normal. Among others, the new portable piano series and new spacesaving models continued to record strong sales. Although sales of keyboards soared backed partly by the successful
development of sales channels in North America, the order backlog increased in all regions as a consequence of supply
shortages.
As a result of the above, net sales from the Keyboards category amounted to ¥24,792 million (up 39.0% year on year).

[Percussion and Wind Instruments]
Among the mainstay categories, sales of electronic drums, especially the V-Drums Acoustic Design series and variations of theexisting products remained strong, and sales increased significantly in all regions.
Sales of electronic wind instruments remained very firm, especially the highest model of Aerophone and the region limited
model released in the fiscal year under review went very well. Such significant sales growth is also driven by the upswing of
the entire electronic wind instruments market.
As a result of the above, net sales from the Percussion and Wind Instruments category amounted to ¥19,053 million (up 30.3%
year on year).

[Guitar-related Products]
Among the mainstay categories, sales of guitar effects increased, backed especially by successful promotion of new productfamilies launched in the previous fiscal year and other products such as the anniversary versions of compact effects released in
the fiscal year under review, despite supply shortages.
Sales of musical instruments amplifiers, especially the KATANA amplifier series increased mainly in North America. Also, in
addition to products intended for outdoor use, sales of amplifiers for keyboards and electronic drums performed very well.
As a result of the above, net sales from the Guitar-related Products category amounted to ¥19,093 million (up 14.2% year onyear).

[Creation-related Products & Services]
Among the mainstay categories, sales of synthesizers continued very strong. This is attributable to strong demand for
keyboards for emerging countries as well as synthesizers equipped with 88 keys like electronic pianos and stage pianos.
Sales of dance and DJ-related products also soared, driven by strong sales of new product families launched in the previous
and current fiscal years given the increased interest in music production among people staying home amid the COVID-19
pandemic.
In the software and service domain, through Roland Cloud platform, new versions of software sound source were released inaddition to the upgrade software which enables existing electronic drum products to expand their functions. Also, we released
Roland Cloud Connect, a service that allows customers to enjoy a variety of Roland Cloud content seamlessly by connecting itwith our synthesizers wirelessly.
As a result of the above, net sales from the Creation-related Products & Services category amounted to ¥10,122 million (up26.4% year on year).

[Video and Professional Audio]
Among the mainstay categories, sales of video related products in the lower price range plateaued due to a range of factors,
including the diminished video distribution demand from individual users who stay home for longer hours in the wake of the
COVID-19 pandemic and the influence of competition with the products of other companies, although sales of mid-range
video related products remained brisk.
As a result of the above, net sales from the Video and Professional Audio category amounted to ¥4,282 million (down 6.9%
year on year).
(ii) Future outlook
We have made the consolidated financial forecasts for the fiscal year ending December 31, 2022 with net sales of ¥85,000
million, operating profit of ¥11,600 million, ordinary profit of ¥11,700 million (up 15.8%) and profit attributable to owners ofparent of ¥8,700 million (up 1.3%).
Accounting Standard for Revenue Recognition(ASBJ Statement No. 29, revised on March 31, 2020 effective from the
beginning of the consolidated fiscal year that commences on or after April 1, 2021) will be newly applied to in calculating theforecasts of net sales and operating profit for the fiscal year ending December 31, 2022. Accordingly, year-on-year changes
from the actual results for the fiscal year ended December 31, 2021 are not presented.
Meanwhile, the forecasts of net sales and operating profit for the fiscal year ending December 31, 2022 calculated in line withthe same standard as was used in the fiscal year ended December 31, 2021 (hereinafter, the “previous standard”) are ¥85,800
million (up 7.2% year on year under the previous standard) and ¥12,400 million (up 11.8% year on year under the previous-3-

standard), respectively.
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, 2021
(i) Assets as of December 31, 2021
Total assets as of December 31, 2021 increased by ¥6,710 million from the end of the previous year to ¥52,807 million. This is
attributable primarily to increases in trade receivables of ¥1,514 million and inventories of ¥7,165 million, which were partially
offset by a decrease in cash and deposits of ¥2,051 million. The position of cash and deposits is described in detail in the next
section on the status of cash flows.
Liabilities decreased by ¥1,794 million from the end of the previous fiscal year to ¥24,150 million. This is mainly owing todecreases in borrowings of ¥2,761 million and provision for loss on competition law of ¥562 million, which were partially offset
by an increase in trade payables of ¥1,162 million.
Net assets increased by ¥8,505 million from the end of the previous fiscal year to ¥28,656 million. This is mainly owing torecording of profit attributable to owners of parent of ¥8,586 million and an increase in foreign currency translation adjustmentof ¥2,024 million resulting from a further depreciation of yen against major currencies, which were partially offset by dividends
from retained earnings of ¥2,922 million.
As a result of the above, the equity ratio rose 10.7 percentage points from the end of the previous fiscal year to 53.7%.
(ii) Cash flows for the fiscal year ended December 31, 2021
Cash and cash equivalents as of December 31, 2021 decreased by ¥2,051 million from the previous fiscal year to ¥8,781 million.
Net cash provided by operating activities amounted to ¥4,929 million (down ¥1,972 million in the inflow year on year), which ismainly owing to the contribution of profit before income taxes.
Net cash used in investing activities amounted to ¥803 million (down ¥98 million in the outflow year on year), which is mainly
as a result of payment for purchase of property, plant and equipment.
Net cash used in financing activities amounted to ¥6,071 million (up ¥2,401 million in the outflow year on year), which is mainly
due to payments of dividends and repayment of borrowings.
(3) Basic policy for profit distribution and dividends for the fiscal year ending December 31, 2022
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, we 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 is necessary tosecure funds for growth investment.
Given the above policy and financial standing of the Company, we will pay a fiscal year-end dividend of ¥69 per share (annual
dividend of ¥138 per share, which includes an interim dividend of ¥69 per share) for the fiscal year ended December 31, 2021.
We also plan to purchase treasury shares of up to ¥2 billion in total during the period between February 14, 2022 and June 23,2022. If the Company conducts the purchase of treasury shares in the full amount, a consolidated total return ratio for the fiscal
year ended December 31, 2021 will be 68.2%, with the annual dividend of ¥138. For the details of the purchase of treasury shares,
please refer to the“Notice of Decision on Matters Related to Acquisition of Treasury Stock” announced on February 10, 2022.
We plan to pay an annual dividend of ¥156 per share (consisting of an interim dividend of ¥78 per share and a fiscal year-end
dividend of ¥78 per share) for the fiscal year ending December 31, 2022.
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.

-4-3. Consolidated Financial Statements and Major Notes(1) Consolidated balance sheets
Previous fiscal year
(As of December 31, 2020)(Millions of yen)
Current fiscal year
(As of December 31, 2021)

AssetsCurrent assets:
Cash and deposits

10,832

8,781

Notes and accounts receivable – trade

5,930

7,444

Merchandise and finished goods

13,622

15,508Work in process

889

1,715

Raw materials and supplies

3,563

8,016

Other

1,558

1,470

Allowance for doubtful accounts

(338)

(313)

36,05842,623

10,877

10,718

Accumulated depreciation(8,159)(8,297)

Buildings and structures, net

2,717

2,421

Machinery, equipment and vehicles

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

1,091

1,251

Accumulated depreciation

(845)

(923)

Machinery, equipment and vehicles, net

246

328

Tools, furniture and fixtures

5,502

6,055

Accumulated depreciation(4,377)(4,667)

Tools, furniture and fixtures, net

1,124

1,387

1,652

1,626

20

92

5,761

5,857

759

632

949

1,245

Land
Construction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets:
Investment securities
Long-term loans receivable

5

0

1,816

2,063

Other

854

486

Allowance for doubtful accounts

(110)

(101)

Total investments and other assets

3,517

3,693

10,038

10,18346,09652,807

Deferred tax assets

Total non-current assets
Total assets-5-

Previous fiscal year
(As of December 31, 2020)(Millions of yen)
Current fiscal year
(As of December 31, 2021)

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

5,228

6,391

138

－

3,935

1,252

Lease obligations

381

376

Accrued expenses

2,445

2,995

Income taxes payable

467

360

Provision for bonuses

1,441

1,662

Provision for bonuses for directors (and other officers)

84

78

Provision for product warranties

294

373

Provision for loss on competition law

562

－

Other

1,999

2,542

Total current liabilities

16,97916,033

5,762

5,822

Lease obligations

674

416

Deferred tax liabilities

222

Non-current liabilities:
Long-term borrowings

Provision for product warranties

01

Provision for share-based remuneration

217

262

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

25

58

1,482

725

Retirement benefit liability
Asset retirement obligations

85

86

Other

694

741

8,965

8,117

25,945

24,150Share capital

9,490

9,585

Capital surplus

69

163

Retained earnings

13,23018,894

Treasury shares

(403)

(482)

22,38628,161(51)140

Foreign currency translation adjustment(2,203)(178)

Remeasurements of defined benefit plans

(278)

258

(2,533)219

Share acquisition rights

158

115

Non-controlling interests

139

161

20,151

28,65646,09652,807

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

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

Total accumulated other comprehensive income

Total 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

(Millions of yen)
Current fiscal year

(From January 1, 2020
to December 31, 2020)(From January 1, 2021
to December 31, 2021)

Net sales

64,04480,032

Cost of sales

33,66443,895Gross profit

30,37936,137

Selling, general and administrative expenses

23,26425,043Operating profit

7,115

11,093

Interest income

11

15

Dividend income

21

86

Subsidy income

99

51

Other

22

18

Total non-operating income

154

172

Non-operating income:Non-operating expenses:
Interest expenses

34

25

Sales discounts

576

770

Foreign exchange losses

158

259

Listing expenses

133

－

Other

89

107

Total non-operating expenses

992

1,163

6,277

10,102Gain on sale of non-current assets

125

375

Total extraordinary income

125

375

29

16

Ordinary profit
Extraordinary income:Extraordinary losses:
Loss on sale and retirement of non-current assets
Impairment loss–

72

Loss on competition law

343

149

Loss related to COVID-19

183－

Total extraordinary losses

556

239

Profit before income taxes

5,846

10,239

Income taxes – current

1,636

2,130

Income taxes – deferred

(98)

(479)

Total income taxes

1,538

1,650

Profit

4,307

8,588

6

2

4,301

8,586

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

Consolidated statements of comprehensive income
Previous fiscal year

(Millions of yen)
Current fiscal year

(From January 1, 2020
to December 31, 2020)(From January 1, 2021
to December 31, 2021)

Profit

4,307

8,588

Valuation difference on available-for-sale securities

(41)

191

Foreign currency translation adjustment

(485)

2,044

Other comprehensive income:Remeasurements of defined benefit plans, net of tax

153

536

Total other comprehensive income

(373)

2,772

3,934

11,361

3,926

11,3398

21

Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests-8-(3) Consolidated statements of changes in equity
Previous 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 acquisitionrights139

Dividends of surplus(2,275)(2,275)

Profit attributable to ownersof parent

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

69

69

2,026

69

2,235

Balance at December 31, 2020

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 attributable to ownersof 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

20,151-9-

Current fiscal year (from January 1, 2021 to December 31, 2021)(Millions of yen)
Shareholders’ equity
Share capital Capital surplus
Balance at 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

5,633

(78)

5,774

Balance at December 31, 2021

9,585

163

18,894(482)

28,161Remeasure
Total accumulated-ments ofotherdefinedcomprehensive
benefitincomeplans

Share
acquisitionrights

Noncontrollinginterests

Total net assets

158

139

20,151

Accumulated other comprehensive income

Balance at 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 at December 31, 2021

140

(178)

258

219

115

161

28,656- 10 -

(4) Consolidated statements of cash flows
Previous fiscal year

(Millions of yen)
Current fiscal year

(From January 1, 2020
to December 31, 2020)(From January 1, 2021
to December 31, 2021)

Profit before income taxes

5,846

10,239Depreciation

1,568

1,608

Amortization of goodwill

4

4

Increase (decrease) in retirement benefit liability

81

4Interest and dividend income

(33)

(101)

Interest expenses

34

25

Foreign exchange losses (gains)

240

174

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

(96)

(359)

Decrease (increase) in trade receivables

2,172

(347)

Decrease (increase) in inventories(4,288)(5,427)

Increase (decrease) in trade payables

1,478

(106)

Other, net

1,711

1,653

Subtotal

8,720

7,367

Interest and dividends received

32

102

Interest paid

(33)

(24)

Income taxes paid

(1,816)(2,516)

Net cash provided by (used in) operating activities

6,902

4,929

(1,012)(1,208)Proceeds from sale of property, plant and equipment

149

557

Purchase of intangible assets

(152)

(98)

Long-term loan advances(5)－

Collection of long-term loans receivable

45

31

Other, net

73

(85)

(901)

(803)

Cash flows from operating activities:

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

Net cash provided by (used in) investing activities- 11 -

Previous fiscal year

(Millions of yen)
Current fiscal year

(From January 1, 2020
to December 31, 2020)(From January 1, 2021
to December 31, 2021)

Net increase (decrease) in short-term borrowings(2,949)(143)

Proceeds from long-term borrowings

6,200

1,500

Repayments of long-term borrowings(4,614)(4,123)

Proceeds from issuance of shares

90

145

Proceeds from sale of treasury shares

226

136

Purchase of treasury shares

(0)

(263)

(2,275)(2,922)

(347)

(400)

(3,669)(6,071)

Cash flows from financing activities:

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

(313)

(105)

Net increase (decrease) in cash and cash equivalents

2,017(2,051)

Cash and cash equivalents at beginning of period

8,815

10,832

Cash and cash equivalents at end of period

10,832

8,781- 12 -

(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, 2020
to December 31, 2020)

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

Net assets per share

730.91 yen

1,030.19 yen

Basic earnings per share160.13 yen

312.73 yen

Diluted earnings per share

155.37 yen

306.26 yen

Notes: 1. The Company conducted a 30-for-1 common stock split effective on September 14, 2020. Basic earnings per shareand 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, 2020.
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. 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 the period.
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 treasury shares, 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, 2020 and 2021 were 490,416 shares and 430,571 shares, respectively. Meanwhile, the aggregate
number of shares of the Company held by these trusts as of December 31, 2020 and 2021 were 418,720 shares and421,767 shares, respectively.
4. 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, 2020
(from January 1, 2021
to December 31, 2020)
to December 31, 2021)
Basic earnings per share
Profit attributable to owners of parent

4,301

8,586

–

–

Profit attributable to common shareholders of parent

4,301

8,586

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

26,86327,457

–

–

823

580

[823]

[580]

–

–

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 the calculationof diluted earnings per share due to their anti-dilutive effect- 13 -

6. Basis for calculation of net assets per share is as follows:(Millions of yen, unless otherwise stated)
Current fiscal year
Previous fiscal year
(As of December 31, 2020) (As of December 31, 2021)
Total net assets

20,151

28,656

Deductions from total net assets

297

276

[of which, share acquisition rights]

[158]

[115]

[of which, non-controlling interests]

[139]

[161]

Net assets applicable to common stock at end of period

19,85328,380

Number of shares of common stock at end of period used
for the calculation of net assets per share (Thousands
shares)27,162

27,548(Subsequent events)(Acquisition of treasury stock )The Company hereby announces that its Board of Directors decided on the following matters related to the acquisition of treasury
stock pursuant to Article 156 of the Companies Act as applied mutatis mutandis per the provisions of Article 165-3 of the same
Act at the meeting convened on February 10, 2022.
1. Reason for acquisition of treasury stock
The objective is to enhance shareholder return and improve capital efficiency.
2. Detailed matters related to the acquisition(1) Type of shares to be acquired(2) Total number of shares to be acquired(3) Total acquisition cost of the shares(4) Acquisition period(5) Acquisition method

The Company’s common stock
550,000 shares (maximum)
2.0% of shares issued and outstanding (excluding treasury stock)
2,000,000,000 yen (maximum)
February 14, 2022 to June 23, 2022
Market purchase on the Tokyo Stock Exchange(Discretionary account transaction by securities company)

Reference: Treasury stock held by the Company as of December 31, 2021
Total number of shares issued and outstanding (excluding treasury stock)
Number of treasury stock- 14 -

27,548,603 shares
421,931 shares