Interim report
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Translation Note : This is an English translation of the original Japanese version and is provided for reference purposes only . In the event of any discrepancy between this translation and the Japanese original , the Japanese version shall prevail . @Roland Consolidated Financial Results for the Six Months Ended June 30 , 2026 ( Under Japanese GAAP ) Company name : Roland Corporation Security code : 7944 Representative : Contact : Phone : Listing : Tokyo Stock Exchange URL : https://www.roland.com/global/ Masahiro Minowa , CEO and Representative Director Yoshiyuki Shimizu , CFO and Executive Officer + 81-53-523-0230 Scheduled date to file Semi - annual Securities Report ( Hanki Hokokusho ) : Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results briefing : August 7 , 2026 September 11 , 2026 Yes Accounting Standards F FASF MEMBERSHIP August 7 , 2026 Yes ( for institutional investors and securities analysts ) ( Note ) Amounts less than one million yen have been omitted . ( Percentages indicate year - on - year changes . ) Ordinary profit Profit attributable to owners of parent 1. Consolidated financial results for the six months ended June 30 , 2026 ( from January 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) Net sales Six months ended June 30 , 2026 Millions of yen 51,697 % Operating profit Millions of yen % 12.9 16.0 Millions of yen 4,191 % 13.7 Millions of yen % 3,199 ( 18.3 ) June 30 , 2025 45,806 ( 1.9 ) 3,687 ( 3.3 ) 3,914 5.9 Note : Comprehensive income For the six months ended June 30 , 2026 For the six months ended June 30 , 2025 Six months ended June 30 , 2026 June 30 , 2025 Basic earnings per share Yen 121.27 146.43 4,437 3,825 ( 13.6 ) ¥ 4,563 million [ 233.7 % ] ¥ 1,367 million [ ( 83.5 ) % ] Diluted earnings per share Yen 145.98 Note : Diluted earnings per share for the six months ended June 30 , 2026 are not presented because there are no potential shares outstanding . ( 2 ) Consolidated financial position As of June 30 , 2026 December 31 , 2025 Total assets Net assets Equity ratio Millions of yen 84,437 83,477 Millions of yen 43,777 41,364 % 51.5 49.2 Reference : Equity ( Shareholders ' equity + Accumulated other comprehensive income ) As of June 30 , 2026 : ¥ 43,460 million As of December 31 , 2025 : ¥ 41,078 million 2. Dividends Fiscal year ended December 31 , 2025 Annual dividend per share First quarter - end Second quarter - end Third quarter - end Fiscal year - end Total Yen Yen 85.00 Yen Yen 85.00 Yen 170.00 85.00 Fiscal year ending December 31 , 2026 Fiscal year ending December 31 , 2026 85.00 170.00 ( forecast ) Note : Revisions from the most recently announced dividends forecast : None
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3. Forecast of consolidated financial results for the fiscal year ending December 31, 2026 (from January 1 to December 31, 2026) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Fiscal year 106,400 5.4 10,000 6.2 9,600 6.4 7,200 232.1 273.24 Note: Revisions from the most recently announced forecast of consolidated financial results: None [Notes] (1) Significant changes in the scope of consolidation during the period: None (2) Adoption of accounting treatment specific to the preparation of semi-annual 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: None 2) Changes in accounting policies due to reasons other than the above 1): None 3) Changes in accounting estimates: None 4) 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, 2026: 26,580,659 shares As of December 31, 2025: 26,580,659 shares 2) Number of treasury shares As of June 30, 2026: 172,358 shares As of December 31, 2025: 208,367 shares 3) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Six months ended June 30, 2026: 26,380,768 shares Six months ended June 30, 2025: 26,730,120 shares Note: The aggregate number of shares of the Company held by the Board Benefit Trust and Employee Stock Ownership Plan Trust was included in the number of treasury shares, which was to be deducted from the calculation of the average number of shares outstanding during the period. The average numbers of shares outstanding held by these trusts during the six months ended June 30, 2025 and 2026 were 176,372 shares and 164,418 shares, respectively. * The attached semi-annual financial results reports are not subject to review 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 on certain assumptions deemed reasonable. Accordingly, please be advised that Roland Corporation (the “Company”) does not guarantee the achievement of these forecasts, and the actual results may differ from those described in this forward-looking statements due to various factors. For further information regarding the consolidated earnings forecast, please refer to “Explanation of forward-looking information including consolidated earnings forecast” on page 3 of the Attached Materials. The Company will hold a financial results briefing for institutional investors and securities analysts on Friday, August 7, 2026. The materials used in the briefing will be available on the Company’s website.
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- 1 - Contents of Attached Materials 1. Qualitative Information on Semi-annual 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. 3 2. Semi-annual Consolidated Financial Statements and Major Notes ··································································· P. 4 (1) Semi-annual consolidated balance sheets ··························································································· P. 4 (2) Semi-annual consolidated statements of income and consolidated statements of comprehensive income ················· P. 6 (3) Semi-annual consolidated statements of cash flows ··············································································· P. 8 (4) Notes to semi-annual consolidated financial statements ·········································································· P. 9 (Going concern assumption) ·········································································································· P. 9 (Significant changes in shareholders’ equity) ······················································································· P. 9 (Subsequent events) ···················································································································· P. 9
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- 2 - 1. Qualitative Information on Semi-annual Consolidated Financial Results (1) Explanation of consolidated operating results During the six months ended June 30, 2026 (hereinafter referred to as the “period under review”), the global economic environment surrounding the Roland Group (the “Group”) remained generally resilient, with economic conditions in major countries overall holding firm. However, escalating tensions in the Middle East led to the emergence of new geopolitical risks, resulting in increased uncertainty regarding energy prices and raw material procurement. In addition, amid soaring semiconductor memory prices and tight supply and demand conditions driven by expanding demand for generative AI, as well as changes in U.S. tariff policies, the Group’s business environment continued to face an uncertain outlook. In the musical instruments market, following a surge in at-home demand during the COVID-19 pandemic, a prolonged reactionary decline in demand persisted alongside the normalization of social activities. However, we recognize that the market is now in a phase of gradual recovery. Meanwhile, amid the rapidly evolving external environment, demand conditions remained volatile, and the business environment continued to require close monitoring. The Company worked to minimize the impact of these external changes through the swift formulation and execution of appropriate measures, while steadily advancing initiatives in line with our Mid-term Management Plan. As a result, during the period under review, the Group recorded net sales of ¥51,697 million (up 12.9% year on year). In terms of profit, the Group recorded operating profit of ¥4,437 million (up 16.0% year on year), ordinary profit of ¥4,191 million (up 13.7% year on year), and profit attributable to owners of parent of ¥3,199 million (down 18.3% year on year). Sales performance (year-on-year change) by mainstay category is as shown below: [Keyboards] Net sales: ¥13,839 million (up 17.5% year on year) Although the competitive environment remained challenging, sales of electronic pianos remained exceptionally strong, supported by the continued recovery in demand, particularly for portable models. [Percussion and Wind Instruments] Net sales: ¥15,395 million (up 15.1% year on year) Sales of electronic drums were solid, driven by the new product lines launched last year. Sales of acoustic drums by Drum Workshop, Inc. (DW) recovered, supported by strengthened sales efforts and new product launches. Meanwhile, electronic wind instruments continued to face a challenging business environment due to intensified competition, in China, the mainstay market. [Guitar-related Products] Net sales: ¥13,021 million (up 13.3% year on year) While demand for guitar effects remained exceptionally strong, supported by robust demand for both effects pedals and multi-effects, new product lines also contributed positively. Instrument amplifiers were slightly weaker due to the fading impact of new product launches. [Creation-related Products & Services] Net sales: ¥6,598 million (up 5.5% year on year) Sales of synthesizers were weak, mainly due to a decline in demand following the initial strong demand for high-end new products launched in the same period of the previous year and stockouts of certain products. As to dance and DJ-related products, sales remained exceptionally strong, supported by robust market conditions as well as shipments from the order backlog. In the software and service domain, Roland Cloud continued to expand its offerings by providing additional content and new services aimed at increasing the LTV (Lifetime Value) of products for users, and membership accounts continued to grow. [Video and Professional Audio] Net sales: ¥1,243 million (down 17.7% year on year) Sales of video-related products were weak due to a decline in deliveries for commercial projects and lower demand ahead of new product launches. For details of sales performance by region, please refer to the Financial Results Highlights posted on the Company’s IR website. https://ir.roland.com/en/ir.html
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- 3 - (2) Explanation of consolidated financial position (i) Assets, liabilities and net assets as of June 30, 2026 Total assets at the end of the period under review increased by ¥959 million from the end of the previous fiscal year to ¥84,437 million. This is mainly due to increases in cash and deposits of ¥894 million as described in the following cash flows section and inventories of ¥1,262 million, respectively, partially offset by a decrease in trade receivables of ¥1,143 million. Total liabilities decreased by ¥1,453 million from the end of the previous fiscal year to ¥40,660 million. This is attributable primarily to decreases in borrowings of ¥2,385 million as well as accounts payable – other of ¥645 million and accrued expenses of ¥612 million included in other under current liabilities, partially offset by an increase in trade payables of ¥1,990 million. Net assets increased by ¥2,412 million from the end of the previous fiscal year to ¥43,777 million. This is mainly due to an increase in foreign currency translation adjustment of ¥1,632 million reflecting the depreciation of the yen against major currencies and the recording of profit attributable to owners of parent of ¥3,199 million, partially offset by a decrease in retained earnings of ¥2,256 million due to the declaration and payment of dividends. As a result of the above, the equity ratio increased by 2.3 percentage points from the end of the previous fiscal year to 51.5%. (ii) Cash flows for the six months ended June 30, 2026 During the period under review, cash and cash equivalents (“net cash”) increased by ¥894 million (an increase by ¥4,549 million for the same period of the previous fiscal year) to ¥16,771 million at the end of the period. Cash flows from operating activities Net cash provided by operating activities amounted to ¥6,757 million (¥7,220 million provided for the same period of the previous fiscal year), which is mainly due 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 ¥1,148 million (¥1,339 million used for the same period of the previous fiscal year), which is primarily due to capital outlay for the purchase of property, plant and equipment and intangible assets. Cash flows from financing activities Net cash used in financing activities amounted to ¥5,109 million (¥1,622 million used for the same period of the previous fiscal year), which is primarily attributable to repayments of borrowings and payments of dividends. (3) Explanation of forward-looking information including consolidated earnings forecast There is no change in the consolidated earnings forecast for the current fiscal year, which was announced on February 13, 2026. Should there be any revisions, an updated forecast will be disclosed in a timely and appropriate manner.
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- 4 - 2. Semi-annual Consolidated Financial Statements and Major Notes (1) Semi-annual consolidated balance sheets (Millions of yen) Previous fiscal year (As of December 31, 2025) Semi-annual period (As of June 30, 2026) Assets Current assets: Cash and deposits 15,876 16,771 Notes and accounts receivable – trade 13,353 12,210 Merchandise and finished goods 18,829 19,999 Work in process 1,438 1,667 Raw materials and supplies 7,052 6,916 Other 2,972 2,559 Allowance for doubtful accounts (728) (791) Total current assets 58,795 59,332 Non-current assets: Property, plant and equipment: Buildings and structures, net 9,553 9,533 Land 2,338 2,353 Other, net 2,342 2,557 Total property, plant and equipment 14,234 14,444 Intangible assets Other 3,026 2,905 Total intangible assets 3,026 2,905 Investments and other assets: Investment securities 759 798 Other 6,759 7,067 Allowance for doubtful accounts (99) (110) Total investments and other assets 7,420 7,754 Total non-current assets 24,681 25,105 Total assets 83,477 84,437
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- 5 - (Millions of yen) Previous fiscal year (As of December 31, 2025) Semi-annual period (As of June 30, 2026) Liabilities Current liabilities: Notes and accounts payable – trade 6,841 8,832 Short-term borrowings 1,100 – Current portion of long-term borrowings 2,570 2,570 Income taxes payable 411 520 Provision for bonuses 879 981 Provision for bonuses for directors (and other officers) 22 10 Provision for product warranties 411 436 Other 7,934 6,685 Total current liabilities 20,170 20,037 Non-current liabilities: Long-term borrowings 18,490 17,205 Provision for share awards 248 219 Provision for share awards for directors (and other officers) 47 54 Retirement benefit liability 280 284 Asset retirement obligations 100 117 Other 2,775 2,741 Total non-current liabilities 21,942 20,622 Total liabilities 42,113 40,660 Net assets Shareholders’ equity: Share capital 9,641 9,641 Capital surplus – 6 Retained earnings 18,965 19,908 Treasury shares (342) (244) Total shareholders’ equity 28,264 29,312 Accumulated other comprehensive income: Valuation difference on available-for-sale securities 37 41 Foreign currency translation adjustment 9,845 11,478 Remeasurements of defined benefit plans 2,930 2,628 Total accumulated other comprehensive income 12,813 14,148 Non-controlling interests 286 316 Total net assets 41,364 43,777 Total liabilities and net assets 83,477 84,437
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- 6 - (2) Semi-annual consolidated statements of income and consolidated statements of comprehensive income Semi-annual consolidated statements of income (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Net sales 45,806 51,697 Cost of sales 26,050 30,030 Gross profit 19,756 21,667 Selling, general and administrative expenses 15,931 17,229 Operating profit 3,825 4,437 Non-operating income: Interest income 18 28 Dividend income 36 37 Subsidy income – 28 Miscellaneous income 34 – Other 15 4 Total non-operating income 105 98 Non-operating expenses: Interest expenses 113 137 Foreign exchange losses 125 203 Other 4 3 Total non-operating expenses 243 344 Ordinary profit 3,687 4,191 Extraordinary income: Gain on sale of non-current assets 0 60 Settlement income 361 – Total extraordinary income 362 60 Extraordinary losses: Loss on sale and retirement of non-current assets 15 6 Loss on liquidation of subsidiaries 11 – Extra retirement payments 170 28 Loss on litigation – 38 Loss from money transfer scam at foreign subsidiary – 136 Total extraordinary losses 196 210 Profit before income taxes 3,852 4,041 Income taxes – current 355 843 Income taxes – deferred (420) (11) Total income taxes (64) 832 Profit 3,917 3,209 Profit attributable to non-controlling interests 2 9 Profit attributable to owners of parent 3,914 3,199
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- 7 - Semi-annual consolidated statements of comprehensive income (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Profit 3,917 3,209 Other comprehensive income: Valuation difference on available-for-sale securities (7) 4 Foreign currency translation adjustment (2,361) 1,652 Remeasurements of defined benefit plans, net of tax (180) (301) Total other comprehensive income (2,549) 1,354 Comprehensive income 1,367 4,563 Comprehensive income attributable to: Owners of parent 1,382 4,533 Non-controlling interests (15) 30
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- 8 - (3) Semi-annual consolidated statements of cash flows (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Cash flows from operating activities: Profit before income taxes 3,852 4,041 Depreciation 1,284 1,468 Amortization of goodwill 189 2 Increase (decrease) in retirement benefit liability (148) 1 Decrease (increase) in retirement benefit asset (142) (494) Interest and dividend income (55) (66) Interest expenses 113 137 Foreign exchange losses (gains) 65 158 Loss (gain) on sale and retirement of non-current assets 14 (53) Loss (gain) on liquidation of subsidiaries 11 – Decrease (increase) in trade receivables 515 1,752 Decrease (increase) in inventories (364) (376) Increase (decrease) in trade payables 2,648 1,340 Other, net (371) (124) Subtotal 7,613 7,788 Interest and dividends received 55 64 Interest paid (113) (133) Income taxes paid (334) (962) Net cash provided by (used in) operating activities 7,220 6,757 Cash flows from investing activities: Purchase of property, plant and equipment (1,091) (979) Proceeds from sale of property, plant and equipment 5 69 Purchase of intangible assets (201) (112) Other, net (51) (125) Net cash provided by (used in) investing activities (1,339) (1,148) Cash flows from financing activities: Net increase (decrease) in short-term borrowings (2,300) (1,100) Proceeds from long-term borrowings 10,400 – Repayments of long-term borrowings (1,245) (1,285) Purchase of treasury shares (5,799) – Proceeds from sale of treasury shares 72 – Dividends paid (2,366) (2,256) Other, net (382) (468) Net cash provided by (used in) financing activities (1,622) (5,109) Effect of exchange rate change on cash and cash equivalents 290 395 Net increase (decrease) in cash and cash equivalents 4,549 894 Cash and cash equivalents at beginning of period 14,478 15,876 Cash and cash equivalents at end of period 19,027 16,771
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- 9 - (4) Notes to semi-annual consolidated financial statements (Going concern assumption) Not applicable (Significant changes in shareholders’ equity) Not applicable (Subsequent events) (U.S. Tariff refund procedures) Following the U.S. Supreme Court’s ruling that the tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were invalid, Roland Corporation U.S. and Drum Workshop, Inc., consolidated subsidiaries of the Company, filed claims for tariff refunds totaling $18 million (approximately ¥3.0 billion, translated at the exchange rate as of June 30, 2026) by the end of July 2026. The Company intends to recognize the financial impact depending on the future status of the refund claims. However, as of the end of July 2026, the eligibility for refunds, the amount to be refunded, and the timing of such refunds remain uncertain. Accordingly, the claimed refund amount has not been reflected in the Company’s consolidated earnings forecast for the current fiscal year.