Financial Results Brief i ng fort h e F i s c a l Yea r E n d e d M a r c h 2 0 2 3May, 2023

R I K E N K E I K I C o., L t d .

Securities Code:7734
Disclaimer
The forecasts and estimates shown in this document are dependent on a variety of assumptions andeconomic conditions. Plans and figures depicting the future do not imply a guarantee of actual outcomes.

Management Philosophy and Management Policy

Management Philosophy

We are a pioneer in creating safe working environments
for workers.
Management PolicyRIKEN KEIKI endeavors for its operations to be in full Legal Compliance, to strive for
Preservation of the Environment, and to maintain our role of high Social Responsibility as agood corporate citizen.
1.

Manage our Research and Development in an efficient manner, to create useful and needed
products which will be suitably profitable, to assure excellent and sustainable company
growth.

2.

Contribute to society by producing high quality products and enhanced services to assist ourcustomers in creating safe working environments.

3.

Reward stockholders by operating in a profitable manner to continually increase ourcorporate value.

4.

Develop mutually beneficial bilateral cooperative relations with vendors by providing stablebusiness transactions.

5.

Create a rewarding working environment, to provide challenge and satisfaction for all
employees, and also provides adequate compensation for their work efforts to assist inproviding comfort and stability to their personal lives.
2History
1939

1995

Established in 1939 tocommercialize and mass
produce opticalinterferometric combustible
gas detectors designed by theInstitute of Physical andChemical Research (RIKEN)

Listed on the First Section ofthe Tokyo Stock Exchange

1961

2017

2009
RIKEN KEIKI COMMERCIAL(SHANGHAI) CO.,LTD.
China established.

RKI INSTRUMENTS, INC.
USA established.

2018
Acquired R K INSTRUMENTS(S) PTE LTD, Singapore

Launch of portable gas
detector GX-3R series

New development center
opened. (Kasukabe City,Saitama Prefecture)1972

45 billion
yen

2019

2015

Listed on the Tokyo Stock
Exchange's 2nd Section

FY 2022 Sales

2020
New production
center completed.

RIKEN KEIKI NARA MFG. Co.,
Ltd. established.

(Kasukabe City, Saitama
Prefecture)2008

Launch of flagship portable
gas-detector GX-2009
Launch of stationary gasdetection GD-70D for
semiconductor plants■Net Sales

1934

1950

1960

1970

1980

1990

2000

2010

2020

3Our Products■Industrial gas detection and alarm equipment ■Percentage of sales by customer

industry

Product range of 100 different products
Other measurement devices

28.6％

Portable type

2.6％

●Others(including machinery, steel, andautomobiles)

Atmospheric Photoelectron
Yield Spectrometers andGas calorimeter

For personal safety
management of gas leakage
point detection, etc.

●Electric &Semiconductor

29％

46％

Fixed typeContinuous
monitoring of gas
leaks in equipment
and facilities

68.8％■Use of our products●Ship6％●Gas●Petrochemical

11％8％*Figures are rounded off to the nearest whole number,so the total percentage may not add up to 100%.

Contributing to creating safe working environments●Monitoring of toxic gases
Semiconductor, liquid crystal,petroleum refining, petrochemical
and chemical plants●Preventionof oxygen deficiency
Sewage treatment plants,
manhole work, paper and pulp
mills, steel mills, etc.

●Prevention of gas explosion
Petrochemical plants, LNG・LPG receiving terminals,
tankers, printing plants, etc.

●Environmental
measurement
Control of dioxin
generation, measurementof atmosphericenvironment, etc.

●OtherSurface analysis
of electronicmaterials, surface
analysis by X-ray,etc.

4

FINANCIAL RESULTS
Full year ended March 31, 2023

Summary of Operating Results (FY 2022)
 Sales and profits increased year on year due to strong sales to thesemiconductor industry and the lithium-ion battery factory, which
exceeded expectations.
(Millions of yen)

FY2021

FY2022Full-year
results

Full-yearresults

Net sales

37,36345,004120.4%

42,800105.1%

Operating profit

8,402

11,551137.5%

11,450100.9%

Operating profit
margin

22.5%

25.7%

114.2%

26.7％―Ordinary profit

8,819

11,944135.4%

12,00099.5%

Net profit

5,963

8,670

145.4%

8,400

103.2%

256.26372.41145.3%

360.80103.2%

60

80

133.33%80

100.00%Earning per share –BasicAnnual Dividend pershare

Y on Y

Full-year
forecast

Achievementrate

6Net Sales and Profit/Loss (Full Year)
 Net sales and operating profit increased in FY 2022.
 Sales growth due to continued vigorous capital investment in thesemiconductor industry and strong sales to overseas markets
 Increase in profit due to keeping fixed costs and to the impact of exchange
rates, etc. compared to its sales expansion
Net sales

Net sales(Millions of yen)

Operating income

Operating profit(Millions of yen)

50,00011,55145,000

8,402

40,00012,00010,00035,00030,0005,103

25,00020,0004,000

15,00010,000

6,197

6,598
37,363

4,415
28,08930,65045,00432,189

8,000

6,000

32,2094,000

23,357

2,000

5,000
00

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 20227

Sales by Device Type (Full Year) Steady growth in sales of fixed type due to vigorous capital investment in thesemiconductor industry
 Steady sales of portable type due to strong sales in North America
Net sales

Other(Millions of yen)

Portable type

Fixed type

45,00450,00037,36245,00040,00035,00028,08923,3571,356

30,00025,000(4.8%)

1,189(5.1%)

8,307

20,0007,189(29.6%)

15,000(30.8%)

10,0005,000
014,978(64.1%)
FY 2016

30,6501,268(4.1%)

8,851(28.9%)

32,18932,2091,202(3.2%)

1,123941(3.5%)(2.9%)

9,9038,800(26.5%)

9,551(29.7%)(27.3%)

1,166(2.6%)

12,882(28.6%)

30,955

18,425

20,53021,514

22,466

26,257(65.6%)(67.0%)(66.8%)(69.8%)(70.3%)(68.8%)FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022※The total ratio may not amount to 100% due to rounding.

8

Sales by Customer Industry (Non-Consolidated) 46.0% for the electrical and semiconductor industries, 10.5% for thepetrochemical industry, and 6.4% for the shipping industry
 Vigorous demand for capital investment by the semiconductor industry increasedthe sales ratio to the semiconductor industry.
Sales by40,000

Customer Industry(Millions of yen)

Others (government, steel, automobiles, electric power, construction, etc.)
Ship
Gas
Petrochemical
Electric & Semiconductor

30,000(28.8%)(30.5%)(31.9%)

20,000(34.4%)

10,000(32.6%)(6.0%)(32.1%)(7.5%)(5.9%)(8.2%)(8.3%)(10.9%)(6.1%)(7.0%)(6.9%)(8.5%)(10.3%)(11.4%)(6.4%)(31.4%)(6.7%)(7.5%)(7.5%)(10.5%)(11.7%)(11.4%)(46.0%)(12.2%)(37.6%)(8.4%)(42.9%)(44.3%)(43.9%)(41.4%)(43.0%)

0

FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022
9Sales Ratio of Products and Maintenance(Non-Consolidated) Product sales grew due to vigorous capital investment in the semiconductor
industry and strong sales of portable type for North America.
 Revenue related to maintenance after product sales increased slightly
Sales of Products and MaintenanceNet sales

Products (including construction)
MaintenanceRatio of Maintenance(Millions of yen)

45,00040,000

Products andMaintenance ratio
60%

48.2%
43.9%

35,000

50%

41.4%

41.0%

40.6%

30,00013,752

38.0%

35.9%

40%

25,00011,69320,00015,00010,984

10,85410,0005,000

11,81813,853

11,194

12,33530%

11,46620%

15,846

16,467

17,072

20,11524,57610%0%

0FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022
10

Overseas Sales by Region (Full Year) Overseas sales ratio increased due to growth in overseas market, particularly
in Asia and North America.
 Sales for Asian market was strong, particularly for the semiconductor industry
and for lithium-ion battery factories.
Net sales by region(Millions of yen)

OtherEurope

North America

Asia

Ratio on overseas sales

20,000

29.6%

31.0%

12,527

10,000236 (1.0%)

0

5,278
175 (0.8%)243(0.9%)724 (2.6%)
3,777752 (3.2%)

673 (2.9%) (13.4%)(7.0%)
1,245
1,647(5.3%)

9,087
306 (1.0%)
724 (2.4%)
3,930

9,975

9,306

302(0.9%)236 (0.7%)627 (2.0%)
3,866(12.0%)(12.8%)

654 (2.0%)
3,203

288 (0.8%)

2,964

3,183

3,926

4,125(12.7%)(13.6%)(14.0%)(13.5%)(16.1%)FY2015FY2016FY2017FY2018FY2019

25%

20%

4,265
15%(11.4%)

11,434(9.9%)

5,211(12.7%)

837 (2.2%)

7,138
5,177

35%

30%

5,725

22.6%

8,672
5,602

367(0.8%)40%

1,306 (2.9%)

28.9%

15,00023.9%

Ratio on sales

18,834

33.5%
30.9%

5,000

41.8%

(19.1%)

10%(25.4%)
5%(16.2%)
0%

FY2020

FY2021

FY2022※The sum of the ratios to net sales may not match due to rounding.

11Cash flows
 Operating CF decreased due to an increase in inventories and tradereceivables.
 As a topic of financial CF, the US subsidiary was turned into a wholly
owned subsidiary by investment.
Operating, investing andOperating cash flow
Finance CF

financial CF(Millions of yen)
6,000

10,383

14,346

Investment CF
CF Ending balance

15,016

CF Endingbalance(Millions of yen)

13,93218,0009,034

12,2394,000

17,98918,91315,0002,0000△ 2,000

4,137

△ 782
△ 1,564

3,373

△ 855
△ 495

4,220

△ 1,012

5,232

4,572

4,085

12,0009,000△ 1,193△ 2,472△ 1,045△ 2,953△ 4,255

6,000△ 3,327△ 2,756△ 4,000△ 2,565△ 648

3,0000△ 6,000

FY2016FY2017FY2018FY2019FY2020

FY2021

FY202212

Changes in ROE
 ROE rose to 14.5 percentage points due to growth in net income(Unit: %)1614.5141211.4

1011.1
9.6

9.5

9.5

FY2018FY2019FY20208.0864
20FY2016FY2017

FY2021

FY2022
13

Total Assets and Net Assets
 Increase in current assets due to securing necessary inventories inresponse to difficulties in procuring semiconductor components
 Maintain safety with high equity ratio
Total assets

Total assets and netassets(Unit: Millions Yen)
80,000

78.7%

78.3%

77.6%

78.8%

Net assets
79.3%

79.4%

79.5%

Equity ratio
80%

70,00060,00070%

50,00079,74640,00071,60630,00048,51920,00039,14852,91042,52756,851
46,21260,21949,63564,326
52,61556,85860%

63,38350%

10,000040%

FY2016FY2017FY2018FY2019FY2020

FY2021

FY202214

CAPEX
 Increased due to integration costs of sales offices and maintenance bases
Including construction costs of production center(e.g. construction starts) and acquisition of landfor Amagasaki construction
Capital expendituresIncluding construction cost ofproduction center (completion)(Millions of yen)

4,500
4,000
3,500

Including construction costs forthe new head office building

3,000
2,500

4,182

2,000
1,500

4,279

Including costs for
integration of Amagasaki
branch

2,815
2,009

1,000

1,384

1,057

500

678

0

FY2016FY2017FY2018FY2019FY2020

FY2021

FY202215

Depreciation
 Depreciation cost was at the similar level as last year

Depreciation and amortization

First half

(Millions of yen)

Second half

2200

1,855

2000

1,917

1800

1,529

1600

1,274

1400
1200
1000
800
600

994789937

974918943

FY2021

FY2022

827
722

676

531
391

400
200

1,339

398

463

FY2016FY2017552663702

FY2019FY20200FY201816

R&D Expenditure Continuous investment in new product development and enhancement offunctions of existing model of products
 Expected to remain at a level of around 6% in the ratio of R&D expenses tonet sales(Millions of yen)

2,500

6.2%

Ratio of R&D

R&D Expenditure

R&D Expenditure

expenditure to net

Ratio of R&D Expenditure to net sales
6.4%

6.1%
5.5%

5.9%

sales

5.7%

5.4%

2,0007%

6%

5%

4%

1,500

1,000

1,808

1,883

1,784

1,908

2,135

2,408

3%

2%

1,439
500

1%

0%

0

FY2016FY2017FY2018FY2019FY2020

FY2021

FY202217

Shareholder Returns
 Dividend increased by ¥20 to ¥80 in FY2022 for the full year
 Stable dividend policy is basically adopted.

Cash dividends paid

Cash dividends paid

(Unit: yen)

Dividend payout ratio

Dividend payout ratio
30%

90
85
80

23.4%

22.0%

75
70

21.4%

20.8%

21.0%

20.1%

65

25%

20%

60
55
50
45

13.5%

80

40
356030252015102430364015%10%

425%

50%0

FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022
18

FORECAST FOR THE FISCALYEAR ENDING MARCH 2024
FY 2023

Earnings Forecasts (Year Ending March 31, 2024)
 Demand is expected to continue for the semiconductor industry and for lithium-ion
battery factories.
 However, there is a risk of restrained capital investment in memory semiconductors,
mainly in the first half of FY2023
 Expect to increase the number of staffs and to improve operation in response torapid sales expansion(Millions of yen)

FY2022Q2 (cumulative)
Results

FY2023Full-year
results

Q2 (cumulative)
forecast

Full-year
forecast

Net sales

22,40445,004

22,20046,400Operating income

6,408

11,551

5,350

11,600Operating income
margin28.60%

25.7%

24.0％

25.0％

Ordinary income

6,633

11,9445,150

12,000Net income

4,546

8,670

3,600

8,700

Net income per share

195.29372.41

154.62373.66-80-80

Dividend per share20