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 Second Quarter of the Fiscal Year Ending December 31, 2022
(under Japanese GAAP)
August 8, 2022
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 file Quarterly Securities Report (Shihanki Hokokusho):August 9, 2022
Scheduled date to commence payment of dividends:
September 9, 2022
Preparation of supplementary briefing material on quarterly financial results: Yes
Holding of quarterly 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 second quarter of the fiscal year ending December 31, 2022 (from January 1 to June 30, 2022)(1) Consolidated operating results(Percentages indicate year-on-year changes.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Six months ended
Millions of yen%
Millions of yen%
Millions of yen%
Millions of yen%
43,004–
4,677–
4,794 (35.7)
3,927 (36.5)
June 30, 2022
June 30, 2021
43,03052.4
7,845 194.2
7,456 218.7
6,179 274.5
Note: Comprehensive income
For the six months ended June 30, 2022:¥7,976 million[4.8%]For the six months ended June 30, 2021:¥7,611 million[ – %]
Basic earnings
per share

Diluted earnings
per share

Six months ended
Yen
Yen
June 30, 2022
143.08140.80June 30, 2021
225.71220.44
Notes:The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020)
from the beginning of the fiscal year ending December 31, 2022. Net sales and Operating profit of the previous fiscal year
do not reflect this standard. Accordingly, year-on-year changes for net sales and operating profit against the second quarterof the previous fiscal year are not presented.
(2) Consolidated financial position
Total assets
Net assets
Equity ratio
As ofMillions of yen
Millions of yen%
June 30, 2022
62,77732,78851.8
December 31, 2021
52,80728,656
53.7
Reference: Equity (Shareholders’ equity + Accumulated other comprehensive income)As of June 30, 2022: ¥32,506 million
As of December 31, 2021: ¥28,380 million
2. DividendsFirstquarter-end

Secondquarter-end

Annual dividend per share
Third
quarter-end

Yen
Yen
Fiscal year ended
December 31, 2021–
69.00
Fiscal year ending
December 31, 2022–
78.00
Fiscal year ending
December 31, 2022
(forecast)
Note: Revisions from the most recently announced dividends forecast: None

Fiscalyear-end

Total

Yen

Yen

Yen

–

69.00

138.00–78.00

156.003. Forecast of consolidated financial results for the fiscal year ending December 31, 2022 (from January 1 to December 31, 2022)(Percentages indicate year-on-year changes.)
Profit attributable to
Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Millions ofyen%Millions ofyen%Millions ofyen%Millionsof yen%Yen

92,400–12,400–12,500
23.7
9,800
14.1
357.58
Fiscal year
Note: 1. Revisions from the most recently announced forecast of consolidated financial results: Yes
2. The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) fromthe beginning of the fiscal year ending December 31, 2022. The forecast of consolidated financial results above is based on
the said accounting standard. Accordingly, year-on-year changes for net sales and operating profit against 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:

Fiscal year

Net sales¥93,300 million

16.6%

Operating profit
19.9 %¥13,300 million[Notes](1) Changes in significant subsidiaries during the current period (Changes in specified subsidiaries resulting in the change in scopeof consolidation): None
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
(3) 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(4) Number of shares of common stock issued
1) Number of shares issued (including treasury shares)
As of June 30, 2022:
28,066,786 shares
As of December 31, 2021:
27,970,534 shares
2) Number of treasury shares
As of June 30, 2022:
851,744 shares
As of December 31, 2021:
421,931 shares
3) Average number of shares of common stock during the period (cumulative from the beginning of the fiscal year)
Six months ended June 30, 2022:
27,448,441 shares
Six months ended June 30, 2021:
27,379,679 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 six months ended June 30, 2021 and2022 were 423,973 shares and 401,886 shares, respectively.
* This quarterly financial results report is not subject to quarterly review 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“Explanation of forward-looking information including consolidated earnings forecast” on page 4 of the Attached Materials.
 The Company will hold a quarterly financial results briefing for institutional investors and securities analysts on Tuesday,
August 9, 2022. Materials used at the quarterly financial results briefing will be posted on the Company’s website.

Contents of Attached Materials
1. Qualitative Information on Quarterly Consolidated Financial Results ······························································· P. 2
(1) Explanation of consolidated operating results ······················································································ P. 2
(2) Explanation of consolidated financial position ····················································································· P. 3
(3) Explanation of forward-looking information including consolidated earnings forecast ······································ P. 4
2. Quarterly Consolidated Financial Statements and Major Notes ······································································ P. 5
(1) Quarterly consolidated balance sheets ······························································································· P. 5(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income ········· P. 7(3) Quarterly consolidated statements of cash flows··················································································· P. 9(4) Notes to quarterly consolidated financial statements ·············································································· P. 10(Going concern assumption) ·········································································································· P. 10(Significant changes in shareholders’ equity)······················································································· P. 10(Changes in accounting policies) ····································································································· P. 10-1-1. Qualitative Information on Quarterly Consolidated Financial Results
The Company has applied 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 ending 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 six months ended June 30, 2022 (hereinafter, the “period under review”) as referred to in “Explanation of
consolidated operating results” 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 understand the operating
performance for the period under review, year-on-year comparisons after adjustment are shown, which are percentages calculated
based on the assumption that the results for the period under review had been measured by the same accounting standard as used in
the fiscal year ended December 31, 2021.

(1) Explanation of consolidated operating results
During the period under review, while new COVID-19 cases were contained to some extent and social and economic activities wereon a recovery track, the Group went through various obstacles in the external environment, including ongoing difficulties inpurchasing semiconductors, soaring material and ocean freight costs, in addition to the disruption of supply chains triggered by
China’s lockdown and the prolonged Russia-Ukraine conflict.
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. On the supply side, although
the supply-demand balance of raw materials remained tight, continued efforts such as prompt management decisions for securing
the necessary materials contributed to the anticipated overall factory utilization level. Also, order backlog was progressed favorably.
Meanwhile, on the cost side, as several difficult conditions, such as lingering high ocean transportation costs and raw materials
prices persisted, the Group has focused on to optimize its product prices. At the same time, it reallocated the declined sales
opportunities in China and Russia to other regions in response to these unfavorable conditions.
As a result of the above, during the period under review, the Group recorded net sales of ¥43,004 million (up 5.9% compared to
Forecast, up 1.0% year on year after adjustment), operating profit came in at ¥4,677 million (up 1.7% compared to Forecast, down
34.8% year on year after adjustment), ordinary profit came in at ¥4,794 million (up 2.0% compared to Forecast, down 35.7% year
on year), and profit attributable to owners of parent came in at ¥3,927 million (up 12.2% compared to Forecast, down 36.5% year
on year). Whereas the forecast target was achieved, year on year profit was dropped. This is primarily attributable to the fact thata one-time sales increment (approximately ¥2 billion), associated with the inventory management implemented at the end of the
fiscal year ended December 31, 2020 was recorded in the previous year.

Sales performance by mainstay category is as shown below:[Keyboards] Net sales: ¥13,761 million (up 5.5% year on year after adjustment)
Among the mainstay categories, electronic pianos remained in stronger demand compared to the pre-pandemic era of COVID-19,
driven by brisk demand from people staying home for longer hours. Products in this category enjoyed solid demand while the orderbacklog was being processed in both the Group and the competitors, competitive environment in the market was gradually gettingback to what it used to be in the pre-pandemic era of COVID-19.
[Percussion and Wind Instruments] Net sales: ¥9,367 million (down 5.5% year on year after adjustment)
Among the mainstay categories, electronic drums products in the mid- to high-price range continued to perform strongly. Still sales
slightly fell short of the estimate, affected partly by the lock-down in China.
Sales of electronic wind instruments, primarily the mid- to high-end products, remained strong, backed by continued market
expansion.
[Guitar-related Products] Net sales: ¥10,712 million (up 1.6% year on year after adjustment)
Among the mainstay categories, sales of guitar effects, especially the Loop Station Series and compact effecter “Waza Craft Pedal”-2-series released in the previous fiscal year and multi-effecters released in the current fiscal year performed strongly.
Sales of musical instrument amplifiers remained as expected, although the short supply of products somewhat affected the sales
performance. This is partly because the shipment of orders in the backlog progressed to some extent.
[Creation-related Products & Services] Net sales: ¥5,836 million (up 6.1% year on year after adjustment)
Among the mainstay categories, synthesizers continued to perform strongly, backed by strong sales of compact stage pianos, andnew products released in the current fiscal year.
In the dance and DJ-related products domain, compact gadget instruments that allow users to enjoy full-scale electronic music easily
were released. In addition, sales of the latest model of the long-selling Sampler Series, released in the fourth quarter of the previous
fiscal year, remained strong.
In the software and service domain, through Roland Cloud where software sound sources are offered at a fixed membership fee, theGroup continued to provide new software synthesizers and sound packs. The Group also started offering an online service that enables
users to share the settings of effects and amplifiers.
[Video and Professional Audio] Net sales: ¥1,997 million (down 12.9% year on year after adjustment)
Among the mainstay categories, video related products struggled as the Group was unable to supply sufficient products due to parts
shortage, although events-related demand is on recovery in each country. Moreover, sales of new models for V-MODA brand products
fell short of expectations.
(2) Explanation of consolidated financial position(i) Assets, liabilities and net assets as of June 30, 2022
Total assets at the end of the period under review on a consolidated basis increased by ¥9,970 million from the end of the previous
fiscal year to ¥62,777 million. This is attributable primarily to increases in trade receivables of ¥2,942 million and inventories of¥6,507 million.
Liabilities increased by ¥5,838 million from the end of the previous fiscal year to ¥29,989 million. This is attributable primarily
to an increase in borrowings of ¥5,380 million.
Net assets increased by ¥4,132 million from the end of the previous fiscal year to ¥32,788 million. This is attributable mainly tothe recognition of profit attributable to owners of parent of ¥3,927 million and an increase in foreign currency translation
adjustment of ¥4,078 million due to the continued depreciation of yen against major currencies, which were partially offset by a
¥1,950 million increase in treasury shares, a deduction item from net asset, which reflects the repurchase of treasury shares, anda decrease in retained earnings of ¥1,929 million due to the payments of dividends.
As a result of the above, the equity ratio fell 2.0 percentage points from the end of the previous fiscal year to 51.8%.
(ii) Cash flows for the six months ended June 30, 2022
During the period under review, cash and cash equivalents (“net cash”) decreased by ¥59 million (an increase of ¥664 million forthe same period of the previous fiscal year) to ¥8,722 million at the end of the period.
Cash flows from operating activities
Net cash used in operating activities amounted to ¥910 million (¥4,229 million provided for the same period of the previous fiscal
year), which is attributable primarily to increased working capital.
Cash flows from investing activities
Net cash used in investing activities amounted to ¥443 million (¥229 million used for the same period of the previous fiscal year),which is attributable primarily to the purchase of property, plant and equipment.
Cash flows from financing activities
Net cash provided by financing activities amounted to ¥1,342 million (¥3,246 million used for the same period of the previous
fiscal year), which is attributable primarily to an increase in short-term borrowings, although this increase was offset partially by
the repurchase of treasury shares and the payment of dividends.

-3-(3) Explanation of forward-looking information including consolidated earnings forecast
To reflect recent trends of our operating performance and other factors, the consolidated financial result forecasts announced on
February 10, 2022 have been revised. For details, please refer to “Notice of Revisions to Financial Result Forecasts” publishedtoday (August 8, 2022).

-4-

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheets
Previous fiscal year
(As of December 31, 2021)(Millions of yen)
Current quarter(As of June 30, 2022)

AssetsCurrent assets:
Cash and deposits

8,781

8,722

Notes and accounts receivable – trade

7,444

10,387

Merchandise and finished goods

15,50819,941Work in process

1,715

1,399

Raw materials and supplies

8,016

10,406

Other

1,470

1,624

Allowance for doubtful accounts

(313)

(303)

42,62352,178

Buildings and structures, net

2,421

2,366

Land

1,626

1,650

Other, net

1,808

2,139

Total property, plant and equipment

5,857

6,156

632

587

Investment securities

1,245

1,009

Other

2,549

2,956

Allowance for doubtful accounts

(101)

(110)

Total investments and other assets

3,693

3,854

10,183

10,59852,807

62,777

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

Intangible assets
Investments and other assets:

Total non-current assets
Total assets-5-

Previous fiscal year
(As of December 31, 2021)(Millions of yen)
Current quarter(As of June 30, 2022)

Liabilities
Current liabilities:
Notes and accounts payable – trade

6,391

7,718

–

6,006

1,252

1,252

Income taxes payable

360

387

Provision for bonuses

1,662

937

Provision for bonuses for directors (and other officers)

78

23

Provision for product warranties

373

426

Other

5,915

5,798

Total current liabilities

16,03322,550

5,822

5,196

1

1

Provision for share awards

262

247

Provision for share awards for directors (and other officers)

58

65

Retirement benefit liability

725

710

Asset retirement obligations

86

87

1,160

1,129

Short-term borrowings
Current portion of long-term borrowings

Non-current liabilities:
Long-term borrowings
Provision for product warranties

Other
Total non-current liabilities

8,117

7,438

24,15029,989

Share capital

9,585

9,613

Capital surplus

163

191

Retained earnings

18,89420,891

Total liabilities
Net assets
Shareholders’ equity:

Treasury shares(482)(2,432)

28,161

28,263

Valuation difference on available-for-sale securities

140

112

Foreign currency translation adjustment

(178)

3,899

Remeasurements of defined benefit plans

258

231

Total accumulated other comprehensive income

219

4,242

Share acquisition rights

115

95

Non-controlling interests

161

186

28,65632,78852,807

62,777

Total shareholders’ equity
Accumulated other comprehensive income:

Total net assets
Total liabilities and net assets-6-

(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income
Quarterly consolidated statements of income
Six months ended
June 30, 2021
43,030Net sales(Millions of yen)Six months ended
June 30, 2022
43,004

Cost of sales

22,70425,452Gross profit

20,326

17,551

Selling, general and administrative expenses

12,48012,874

Operating profit

7,845

4,677

Interest income

44Dividend income

81

87

Subsidy income

51

108

Other

9

5

146

205

Interest expenses

12

12

Sales discounts

392–

Foreign exchange losses

98

69

Other

31

6

Total non-operating expenses

536

88

7,456

4,794

Gain on sales of non-current assets

372

2

Gain on liquidation of subsidiaries

–

168

372

171

6

4

Loss on competition law

149–

Total extraordinary losses

156

4

Profit before income taxes

7,672

4,960

Income taxes – current

1,594

1,180

Income taxes – deferred

(103)

(150)

Total income taxes

1,491

1,029

Profit

6,181

3,931

1

3

6,179

3,927

Non-operating income:

Total non-operating income
Non-operating expenses:

Ordinary profit
Extraordinary income:

Total extraordinary income
Extraordinary losses:
Loss on sales and retirement of non-current assets

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

Quarterly consolidated statements of comprehensive income
Six months ended
June 30, 2021
6,181

Profit(Millions of yen)Six months ended
June 30, 2022
3,931

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

90

(27)

1,311

4,099

28

(26)

1,430

4,045

7,611

7,976

7,599

7,950

12

25

Comprehensive income attributable to:
Owners of parent
Non-controlling interests-8-(3) Quarterly consolidated statements of cash flows
Six months ended
June 30, 2021

(Millions of yen)Six months ended
June 30, 2022

Cash flows from operating activities:
Profit before income taxes

7,672

4,960

793

813

Amortization of goodwill

22

Increase (decrease) in retirement benefit liability

1

(71)

Interest and dividend income

(85)

(92)

Interest expenses

1212Foreign exchange losses (gains)

84

58

(366)

1

Loss (gain) on liquidation of subsidiaries

–

(168)

Decrease (increase) in trade receivables(1,450)(710)

Decrease (increase) in inventories(351)(2,033)

Increase (decrease) in trade payables(881)(1,388)Other, net

167(1,250)Subtotal

5,599

133

Interest and dividends received

85

92

Interest paid

(11)

(12)

Income taxes paid

(1,443)(1,123)

Net cash provided by (used in) operating activities

4,229

(910)

Purchase of property, plant and equipment

(746)

(554)

Proceeds from sale of property, plant and equipment552

2

Purchase of intangible assets

(21)

(46)

Proceeds from collection of long-term loans receivable

18

4

Proceeds from liquidation of subsidiaries–

140

Other, net

(32)

10

Net cash provided by (used in) investing activities

(229)

(443)

Net increase (decrease) in short-term borrowings

(140)

6,006

Proceeds from long-term borrowings

1,500

–

Repayments of long-term borrowings(3,497)(626)

Proceeds from issuance of shares

145

35

Proceeds from sale of treasury shares

61

66

Purchase of treasury shares(121)(2,000)

Dividends paid

(992)

(1,929)Other, net

(202)

(209)

(3,246)

1,342

Effect of exchange rate change on cash and cash equivalents

(88)

(47)

Net increase (decrease) in cash and cash equivalents

664

(59)

Cash and cash equivalents at beginning of period

10,832

8,781

Cash and cash equivalents at end of period

11,497

8,722

Depreciation

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

Cash flows from investing activities:

Cash flows from financing activities:

Net cash provided by (used in) financing activities-9-(4) Notes to quarterly consolidated financial statements(Going concern assumption)
Not applicable(Significant changes in shareholders’ equity)
The Company repurchased 469,900 treasury shares during the period under review based on the resolution passed at the Board of
Directors meeting held on February 10, 2022. As a result, its treasury shares increased by ¥1,999 million to ¥2,432 million as ofthe end of the period under review.
(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 ending 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 ending December 31, 2022.
As a result, during the period under review, net sales, gross profit, and operating profit each decreased by ¥437 million, but these
decreases had no impact on ordinary profit and profit before income taxes since non-operating expenses also decreased by ¥437
million. In addition, consolidated financial statements for past periods have not been reclassified using the new presentation method,in accordance with the transitional treatment prescribed in paragraph 89-2 of the Accounting Standard for Revenue Recognition.
(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 ending 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 No. 10, July 4, 2019), the company will prospectively
apply the new accounting policies prescribed by the Accounting Standard for Fair Value Measurement. The above, however, does
not affect our quarterly consolidated financial statements.

- 10 -