Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

May 11, 2023

Consolidated Financial Results for the Fiscal Year Ended March 31, 2023
[Under Japanese GAAP]
Company name:
RIKEN KEIKI Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
7734
URL:
http://www.rikenkeiki.co.jp/
Representative:
Tetsuya Matsumoto, President
Inquiries:
Takuro Maeda, General Manager, Accounting Department, Corporate Administration Division
Telephone:+81-3-3966-1128
Scheduled date of the annual general meeting of shareholders:June 28, 2023
Scheduled date to commence dividend payments:
June 7, 2023
Scheduled date to file annual securities report:
June 28, 2023
Preparation of supplementary materials on financial results:
None
Holding of financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)1.

Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (from April 1, 2022 to March 31,
2023)(1) Consolidated Operating Results
Net sales(% indicate year-on-year changes.)
Net profit attributable toOrdinary profit
owners of parent

Operating profit

Millions of yen%

Millions of yen%

Fiscal year ended
March 31, 2023
45,00420.4
11,551
37.5
March 31, 2022
37,363
16.0
8,402
27.4
Note: Comprehensive income
For the fiscal year ended March 31, 2023
For the fiscal year ended March 31, 2022
Earnings per share-Basic-Earnings per share-Diluted-

Yen

Yen

Fiscal year ended
March 31, 2023
372.41March 31, 2022
256.26(Reference) Investment profit (loss) under the equity method-

Millions of yen%

Millions of yen

11,944
35.4
8,819
27.4
¥9,778 million¥6,734 million

Net profit
attributable toowners ofparent/equity

8,670
5,963
[45.2%][32.0%]

Ordinary
profit/total assets
%

%

45.4
27.1

Operatingprofit/net sales

%

%

14.5
15.8
11.1
13.0
For the fiscal year ended March 31, 2023
For the fiscal year ended March 31, 2022

25.7
22.5

¥ - million¥ - million(2) Consolidated Financial Position
Total assets

Millions of yen

As ofMarch 31, 2023
March 31, 2022
(Reference) Equity

Net assets

Millions of yen

79,746
71,606
As of March 31, 2023
As of March 31, 2022

Equity-to-asset ratio

63,38356,858¥63,383 million¥56,160 million

%

79.5
78.4

Net assets per shareYen

2,722.26
2,412.75(3) Consolidated Cash Flows

Fiscal year ended
March 31, 2023
March 31, 2022

Net cash provided by(used in) operating
activities

Net cash provided by(used in) investing
activities

Net cash provided by(used in) financing
activities

4,572
9,034

(648)
(2,565)(4,255)(2,953)

Millions of yen

Millions of yen

Millions of yen

Cash and cash
equivalents at end of
periodMillions of yen

18,913
17,9892.

Cash Dividends
Annual dividends per share
First
SecondThird
quarter-end quarter-end quarter-end

Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
(forecast)3.

Fiscalyear-end

Total

Total amountof cashdividends(annual)Dividend
payout ratio(consolidated)

Ratio ofdividends to
net assets(consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

-

21.00

-

39.00

60.00

1,396

23.4

2.6

-

40.00

-

40.00

80.00

1,862

21.5

3.1

-

40.00

-

40.00

80.00

21.4

Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (from April 1, 2023 toMarch 31, 2024)

Net sales
Six months ending
September 30, 2023
Full year

Operating profit

Millions of yen%

22,20046,400Ordinary profit

Millions of yen

%

(0.9)

5,350

3.1

11,600(% indicate year-on-year changes.)
Net profit
Earnings per
attributable toshareowners of parent-Basic-Millions of yen%

Millions of yen%

Yen(16.5)

5,150(22.4)

3,600(20.8)

154.620.4

12,000

0.5

8,700

0.3

373.66

*

Note

(1)

Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of
consolidation): None
Newly
- companies (Company name)included:
Excluded:- companies (Company name)
Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to reasons other than (i): None(iii) Changes in accounting estimates: None(iv) Restatement: None
(Note) For more details, please refer to “(5) Notes to Consolidated Financial Statements (Changes in Accounting Policies)”in “3. Consolidated Financial Statements and Significant Notes Thereto” on page 16 of the attached document.

(2)

(3)

Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023
As of March 31, 2022(ii) Number of treasury shares at the end of the period
As of March 31, 2023
As of March 31, 2022(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2023
Fiscal year ended March 31, 2022

23,661,000 shares
23,661,000 shares
377,565 shares
384,642 shares
23,281,253 shares
23,272,807 shares

(Reference) Overview of Non-consolidated Financial Results1.

Non-consolidated Financial Results for the Fiscal year Ended March 31, 2023 (from April 1, 2022 to March 31,2023)(1) Non-consolidated Operating Results
Net sales

Fiscal year ended
March 31, 2023
March 31, 2022

(Percentages indicate year-on-year changes.)
Ordinary profit
Net profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

38,32732,449

18.1
12.8

8,692
6,373

36.4
19.8

9,790
7,635

28.2
27.6

7,356
5,725

28.5
35.4

Earnings per share-BasicFiscal year ended
March 31, 2023
March 31, 2022

Operating profit

Earnings per share-Diluted-

Yen

Yen

316.00246.00-(2) Non-consolidated Financial Position
Total assets
As ofMarch 31, 2023
March 31, 2022
(Reference) Equity

Millions of yen

Net assets

68,421
62,110
As of March 31, 2023
As of March 31, 2022

Millions of yen

Equity-to-asset ratio

54,90949,198¥54,909 million¥49,198 million%

Net assets per share

80.3
79.2

Yen

2,358.29
2,113.68*

Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.

*

Proper use of earnings forecasts, and other special matters
The forward-looking statements such as financial results forecasts contained in this document are based on information
currently available to the Company and certain assumptions deemed to be reasonable, and the Company does not guarantee
their achievement of them. Actual financial results may differ significantly from the forecasts due to various factors. For theassumptions underlying the financial results forecasts and cautions concerning the use thereof, please refer to “(4) Prospects
for the Future” in “1. Outline of Operating Results” on page 4 of the attached documents.

○

Table of Contents of Attachment

1.

Outline of Operating Results ............................................................................................................................. 2(1) Outline of Operating Results for the Fiscal Year under Review .................................................................. 2(2) Outline of Financial Position for the Fiscal Year under Review .................................................................. 3(3) Outline of Cash Flows for the Fiscal Year under Review ............................................................................ 3(4) Prospects for the Future................................................................................................................................ 4

2.

Basic Stance on Adopting Accounting Standards .............................................................................................. 4

3.

Consolidated Financial Statements and Significant Notes Thereto ................................................................... 5(1) Consolidated Balance Sheet ......................................................................................................................... 5(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ...................... 7
Consolidated Statement of Income............................................................................................................... 7
Consolidated Statement of Comprehensive Income..................................................................................... 8(3) Consolidated Statement of Changes in Equity ............................................................................................. 9(4) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income .....................11(5) Notes to Consolidated Financial Statements .............................................................................................. 13(Notes on Going Concern Assumption) ..................................................................................................... 13(Significant Matters that Serve as the Basis for Preparation of Consolidated Financial Statements) ........ 13(Changes in Accounting Policies) .............................................................................................................. 16(Notes on Substantial Changes in the Amount of Shareholders’ Equity) ................................................... 16(Changes in presentation) ........................................................................................................................... 17(Segment Information, Etc.) ....................................................................................................................... 17(Per Share Information) .............................................................................................................................. 19(Significant Subsequent Events) ................................................................................................................ 19

4.

Other ................................................................................................................................................................ 20(1) Production, orders received, and sales ....................................................................................................... 20

1.

Outline of Operating Results(1) Outline of Operating Results for the Fiscal Year under Review(Outline of overall business)
In the fiscal year under review, the economy saw the gradual resumption of economic activities mainly due to progress in COVID19 vaccinations and the easing of restrictions on movements. On the other hand, with disruptions in supply chains due tolockdowns in some cities in the wake of the continued zero-COVID policy in China, soaring prices of natural resources triggeredby the situation between Russia and Ukraine, fluctuations in the foreign exchange caused by the rapid depreciation of the yen,and others, the economic outlook remains uncertain.
The business environment surrounding the Group stayed steady partly due to the effect of the weak yen as well as the fact that
capital investment by the semiconductor industry in East Asia, centered on China and Taiwan, and by the lithium-ion battery
industry in China became brisker than expected. This was due to global demand for semiconductors and in response to the trend
for aggressive investment in electric vehicles.
Under these circumstances, the Group has engaged in maintaining and improving quality, cost and delivery to meet customer
demand for deliveries amid shortages of materials, most notably semiconductors.
Furthermore, in an attempt to expand its market share overseas, the Group proceeded with improving the quality of the systemof overseas subsidiaries through measures including turning a subsidiary in North America into a wholly-owned subsidiary andaggressively dispatching the Company’s human resources to overseas subsidiaries. In addition, in an effort to increase its
corporate value from a medium- to long-term perspective, at the Group we actively worked on sustainability-related issues,
including SDGs, as well as development, production, sales and after-sale maintenance activities where we are conscious of theneed for decarbonization.
As a result of these measures, net sales for the fiscal year under review were 45,004 million yen (up 20.4% year-on-year),
operating profit was 11,551 million yen (up 37.5% year-on-year), ordinary profit was 11,944 million yen (up 35.4% year-onyear), and net profit attributable to owners of parent was 8,670 million yen (up 45.4% year-on-year).
(Summary of sales by device type)A summary of sales by device type is as follows:
Fixed gas detection alarm devices
Net sales of fixed gas detection alarm devices remained firm, particularly for Smart-type Gas Detector GD-70D, due to continued
brisk sales to semiconductor factories in Japan and the East Asia region, which are our main customers, and semiconductor
manufacturing equipment makers in Japan.
Additionally, sales, mainly of Furnace Safety Monitor SD-2500, grew to lithium-ion battery manufacturing equipment makers inJapan and plants for manufacturing the above equipment in China as capital investment in manufacturing lithium-ion batteries
too has kept expanding in China.
Besides, sales remained firm to the ocean freight industry and government agencies. Since the after-sale maintenance service also
grew steadily, net sales were 30,955 million yen (up 17.9% year- on-year).
Portable gas detection alarm devices
Sales of GX-3R Series, the mainstay portable gas monitor, increased mainly to the petroleum and petrochemical industries aswell as the ocean freight industry in Japan and overseas in the wake of economic activities recovering globally.
Since the after-sale maintenance service also grew steadily, net sales were 12,882 million yen (up 30.1% year- on-year).
Other measurement devices
Net sales of other measuring devices were 1,166 million yen (down 2.9% year-on-year).
The Group will leverage the long track record of its products employed in a wide range of industries and academic fields toprovide solutions to bring about a decarbonized society and prevent global warming, and continue to explore markets.

(2) Outline of Financial Position for the Fiscal Year under Review
At the end of the fiscal year under review, assets totaled 79,746 million yen, an increase of 8,140 million yen (up 11.4%) comparedwith the end of the previous fiscal year.
Current assets increased 8,048 million yen from the end of the previous fiscal year to 51,301 million yen. This was mainly due
to a 2,731 million yen increase in work in process, a 2,141 million yen increase in raw materials and supplies, and a 2,054 million
yen increase in cash and deposits as well as a 1,240 million yen increase in notes and accounts receivable–trade, despite a 1,538
million yen decrease in securities.
Non-current assets increased 91 million yen from the end of the previous fiscal year to 28,445 million yen. This was mainly due
to a 362 million yen increase in construction in progress and a 152 million yen increase in investment securities despite a 491
million yen decrease in buildings and structures.
At the end of the fiscal year under review, liabilities totaled 16,363 million yen, an increase of 1,615 million yen (up 11.0%)
compared with the end of the previous fiscal year.
Current liabilities grew 1,892 million yen from the end of the previous fiscal year to 14,023 million yen. This was mainly due toa 1,107 million yen increase in notes and accounts payable–trade, and a 438 million yen increase in account payable–otherincluded in Other despite a 507 million yen decrease in accrued consumption tax included in Other, and others. Non-current
liabilities fell 277 million yen from the end of the previous fiscal year to 2,339 million yen. This was mainly due to a 183 million
yen decrease in lease liabilities.
At the end of the fiscal year under review, net assets totaled 63,383 million yen, an increase of 6,524 million yen (up 11.5%)
compared with the end of the previous fiscal year. This was mainly due to a 7,022 million yen increase in retained earnings as aresult of recording 8,670 million yen in net profit attributable to owners of parent and dividends of surplus of 1,839 million yen
despite a 790 million yen decrease in capital surplus and a 698 million yen decrease in non-controlling interests as a result of
acquiring additional shares of a subsidiary of RKI Instruments, Inc., a consolidated subsidiary in the United States.

(3) Outline of Cash Flows for the Fiscal Year under Review
At the end of the fiscal year under review, cash and cash equivalents increased 923 million yen from the end of the previous fiscal
year to 18,913 million yen (up 5.1%).
(Net cash provided by (used in) operating activities)
Profit before income taxes was 11,753 million yen, depreciation was 1,740 million yen, and an increase in trade payables was
1,086 million yen, while the increase in inventories was 5,542 million yen, income tax paid was 3,363 million yen, and theincrease in trade receivables was 1,093 million yen. As a result of the above, among other factors, net cash provided by operating
activities decreased 4,461 million yen (down 49.4%) year-on-year to 4,572 million yen.
(Cash flows from investing activities)
Proceeds from redemption of securities and withdrawal of time deposits were 1,049 million yen and 1,029 million yen
respectively, while payments into time deposits were 1,031 million yen, purchase of property, plant and equipment was 943
million yen and purchase of securities was 880 million yen. As a result of the above, among other factors, net cash used ininvesting activities decreased 1,917 million yen (down 74.7%) year-on-year to -648 million yen.
(Cash flows from financing activities)
Dividends paid was 1,836 million yen and purchase of shares of subsidiaries not resulting in a change in the scope of consolidation
was 1,608 million yen. As a result of the above, among other factors, net cash used in financing activities increased 1,302 million
yen year on year (up 44.1%) to -4,255 million yen.

(Reference) History of cash flow-related indicators
FY2018FY2019FY2020

FY2021

FY2022Equity-to-asset ratio (%)

77.6

78.8

79.3

78.4

79.5

Market value equity-to-asset ratio
(%)

87.3

78.8

99.6

159.3

165.8

Cash flows to interest-bearing debt
(years)

0.6

0.5

0.9

0.4

0.7

147.7

187.6

120.5

190.6

111.4

Interest coverage ratio (times)
Equity-to-asset ratio:

Equity to total assets

Market value equity-to-asset ratio:

Market value of shares to total assets

Cash flows to interest-bearing debt:

Interest-bearing debt to operating cash flows

Interest coverage ratio:

Operating cash flows to interest payment(Note 1)
(Note 2)
(Note 3)

The figures above are calculated using consolidated financial data.
The market value of shares is calculated by multiplying the closing share price at year-end by the number ofoutstanding shares at year-end (excluding treasury shares).
Operating cash flows refer to cash flows from operating activities in the Consolidated Statement of Cash Flows.
Interest-bearing debt includes any liabilities recorded on the Consolidated Balance Sheet that incur interest
expenses. Payment of interest refers to the amount of interest payment stated in the Consolidated Statement of
Cash Flows.

(4) Prospects for the Future
As for the prospects for the future, it is expected that the impact of the pandemic will subside, and that economic activities will
pick up gradually. On the other hand, it is also necessary to pay close attention to the impact from soaring prices of materials andresources, foreign exchange fluctuations and others, and a rise in geopolitical risks including the prolonged situation in Russia
and Ukraine. Also, the semiconductor industry, which is our major customer, is experiencing inventory adjustments due to a
slowdown in global demand for memory semiconductors, so the unpredictable situation is likely to continue.
The consolidated earnings forecasts for fiscal 2023 are as follows:
Net sales

46,400 million yen (3.1% increase year on year)

Operating profit

11,600 million yen (0.4% increase year on year)

Ordinary profit

12,000 million yen (0.5% increase year on year)

Net profit attributable to owners of parent

8,700 million yen (0.3% increase year on year)

Financial results forecasts are the Company’s forecasts based on information currently available to the Company. Actual financial
results may differ significantly from the forecasts due to various factors.

2.

Basic Stance on Adopting Accounting Standards
The Group will continue to disclose consolidated financial statements under J-GAAP, taking into consideration the historicalcomparability of terms and comparability of companies.
The Group will also adopt IFRS standards depending on domestic and overseas developments accordingly.

3.

Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated Balance Sheet
As of the end of theprevious fiscal year
(March 31, 2022)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable–trade
Electronically recorded monetary claims–operating
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Software
Software in progress
Goodwill
Customer-related assets
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets(Unit: Thousand yen)
As of the end of the fiscal
year under review(March 31, 2023)

11,551,206
9,198,690
3,519,418
9,952,268
2,744,435
3,307,349
2,391,516
591,190(3,697)43,252,378

13,605,281
10,439,153
3,713,877
8,414,092
3,584,070
6,039,294
4,532,924
976,706(4,346)51,301,053

15,997,275(4,680,088)
11,317,187
1,175,827(817,351)
358,475
4,079,123
3,103,053(1,873,436)
1,229,616
46,435
3,347,976(2,938,431)
409,545
17,440,385

15,157,911(4,331,838)
10,826,073
1,264,555(903,194)361,360
4,150,454
3,512,318(2,406,443)
1,105,875
409,4213,677,310(3,192,632)
484,677
17,337,862

409,065
10,108595,387
830,848
17,392
1,862,803

308,321125,811510,481805,777
17,392
1,767,784

5,881,220
1,813,344
112,866
1,246,984(3,500)9,050,916
28,354,106
71,606,484

6,033,462
1,827,197
162,882
1,319,402(2,900)9,340,044
28,445,691
79,746,745

(Unit: Thousand yen)
As of the end of theprevious fiscal year
(March 31, 2022)
Liabilities
Current liabilities
Notes and accounts payable–trade
Electronically recorded obligations–operating
Short-term borrowings
Current portion of bonds payable
Lease liabilities
Accrued expenses
Income taxes payable
Provision for bonuses
Provision for product warranties
Provision for loss on orders received
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Long-term accounts payable–other
Lease liabilities
Deferred tax liabilities
Asset retirement obligations
Other
Total non-current liabilities

As of the end of the fiscal
year under review(March 31, 2023)

4,093,889
532,039
995,000
300,000
434,303
676,608
1,786,207
920,836
98,23932,0082,262,057
12,131,190

5,201,320
847,302
995,000
471,600
913,9811,816,425
988,058
106,260
152,2032,531,544
14,023,696

850,580
15,250976,555
720,603
11,13342,452

850,580
15,250792,762
636,000
11,172
33,6482,616,574

2,339,414

Total liabilities

14,747,765

16,363,110

Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares

2,565,500
1,885,187
49,604,449(226,384)

2,565,500
1,094,969
56,626,968(222,609)

53,828,752

60,064,829

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

1,853,706
477,683

1,982,144
1,336,660

Total accumulated other comprehensive income

2,331,389

3,318,805

698,577-

56,858,719

63,383,634

71,606,484

79,746,745

Total shareholders’ equity

Non-controlling interests
Total net assets
Total liabilities and net assets

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Commission expenses
Advertising expenses
Salaries and allowances
Provision for bonuses
Retirement benefit expenses
Research and development expenses
Depreciation
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Insurance claim and dividend income
Gain on sale of securities
Subsidy income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of non-current assets
Loss on sale of securities
Loss on valuation of securities
Compensation expenses
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Insurance claim income
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Impairment losses
Loss on disposal of non-current assets
Loss on valuation of investment securities
Loss on disaster
Total extraordinary losses
Profit before income taxes
Income taxes–current
Income taxes–deferred
Total income taxes
Net profit
Net profit (loss) attributable to non-controlling interests
Net profit attributable to owners of parent

Previous fiscal year
(from April 1, 2021 toMarch 31, 2022)
37,363,952
18,931,464
18,432,488(Unit: Thousand yen)
Fiscal year under review(from April 1, 2022 toMarch 31, 2023)
45,004,807
21,842,195
23,162,611

832,212
270,961
2,837,090
274,164
92,0072,135,561
582,440
3,005,083
10,029,522
8,402,966

962,790
337,178
3,364,508
287,266
140,488
2,408,509
604,865
3,505,697
11,611,304
11,551,307

48,129129,633
110,51147,33818,703100,000
68,781
523,097

77,969
162,970
376,042
9,824
19,13376,082722,023

47,407
4,953
8,142
40,591
5,069
106,1658,819,898

41,041817
31,922249,273
1,000
5,221
329,274
11,944,056

7,491
7,491

17,568112,915
130,484

270
270
8,827,119
2,734,757
38,8552,773,613
6,053,505
89,644
5,963,861

13,927
26,160102,000
79,528
99,100320,716
11,753,823
3,315,613(225,144)
3,090,469
8,663,354(6,840)8,670,194

Consolidated Statement of Comprehensive Income(Unit: Thousand yen)

Net profit
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

Previous fiscal year
(from April 1, 2021 toMarch 31, 2022)

Fiscal year under review(from April 1, 2022 toMarch 31, 2023)

6,053,505

8,663,354(69,408)
749,985

128,438
986,540

680,577

1,114,979

6,734,083

9,778,333

6,529,509

9,657,610

204,574

120,723

(3) Consolidated Statement of Changes in Equity
Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(Unit: Thousand yen)
Shareholders’ equity
Share capital
Balance at beginning of
period2,565,500

Total
shareholders’equityCapitalsurplusRetainedearnings

Treasuryshares2,294,089

44,641,217(232,906)

49,267,900

Changes during period
Dividends of surplus(1,000,628)(1,000,628)

Net profit attributable toowners of parent

5,963,861

5,963,861

Purchase of treasury
shares
Disposal of treasury
shares17,405

Change in ownershipinterest of parent due totransactions with noncontrolling interests

(361)

(361)

6,883

24,288(426,307)(426,307)

Net changes in items
other than shareholders’equityTotal changes during period
Balance at end of period-(408,902)

4,963,232

6,521

4,560,851

2,565,500

1,885,187

49,604,449(226,384)

53,828,752

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

1,921,384(155,642)

1,765,742

1,581,673

52,615,315

Changes during period
Dividends of surplus(1,000,628)

Net profit attributable toowners of parent

5,963,861

Purchase of treasury
shares(361)

Disposal of treasury
shares24,288Change in ownershipinterest of parent due totransactions with noncontrolling interests(426,307)

Net changes in items
other than shareholders’equity(67,678)

633,326565,647(883,096)(317,448)

Total changes during period(67,678)

633,326565,647(883,096)

4,243,403

Balance at end of period

1,853,706

477,683

2,331,389

698,577

56,858,719

Fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(Unit: Thousand yen)
Shareholders’ equity

Balance at beginning of
periodShare capital

Capital surplus

2,565,500

1,885,187

Retainedearnings

Treasuryshares49,604,449(226,384)

Total
shareholders’equity53,828,752

Changes during period
Dividends of surplus(1,839,116)(1,839,116)

Net profit attributable toowners of parent

8,670,194

8,670,194

Purchase of treasury
shares
Disposal of treasury
shares23,652

Changes in the scope of
consolidation

(461)

(461)

4,236

27,889191,440

Change in ownershipinterest of parent due totransactions with noncontrolling interests

191,440(813,870)(813,870)

Net changes in items
other than shareholders’equityTotal changes during period
Balance at end of period-(790,217)

7,022,519

3,775

6,236,076

2,565,500

1,094,969

56,626,968(222,609)

60,064,829

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

1,853,706

477,683

2,331,389

698,577

56,858,719

Changes during period
Dividends of surplus(1,839,116)

Net profit attributable toowners of parent

8,670,194

Purchase of treasury
shares(461)

Disposal of treasury
shares27,889Changes in the scope of
consolidation

191,440

Change in ownershipinterest of parent due totransactions with noncontrolling interests(813,870)

Net changes in items
other than shareholders’equity128,438

858,976

987,415(698,577)

288,838

Total changes during period

128,438

858,976

987,415(698,577)

6,524,915

1,982,144

1,336,660

3,318,805-

63,383,634

Balance at end of period

(4) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Previous fiscal year
(from April 1, 2021 toMarch 31, 2022)
Net cash provided by (used in) operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Impairment losses
Loss on disaster
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for product warranties
Increase (decrease) in provision for loss on order received
Decrease (increase) in retirement benefit asset
Interest and dividend income
Insurance claim income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sale of non-current assets
Loss on retirement of non-current assets
Decrease (increase) in trade receivables
Loss (gain) on disposal of non-current assets
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Loss (gain) on sale of securities
Loss (gain) on valuation of securities
Loss (gain) on valuation of investment securities
Other(Unit: Thousand yen)
Fiscal year under review(from April 1, 2022 toMarch 31, 2023)

8,827,119
1,702,074
153,402(2,187)47,240(32,616)
31,398(140,992)(177,762)(47,338)
47,407(321,678)(7,220)
4,953
163,370(2,962,385)
1,301,657
861,536(18,703)
8,142
1,286,192

11,753,823
1,740,235
177,205
26,16099,100(179)
67,221
8,020
120,195(13,853)(240,939)(122,740)
41,041(721,502)(3,640)817(1,093,435)
102,000(5,542,325)
1,086,973(721,305)
12,788249,273
79,528491,052

Subtotal

10,723,608

7,595,513

Interest and dividends received
Interest paid
Income tax paid
Proceeds from insurance income

178,662(47,407)(1,877,999)
57,756

244,535(41,041)(3,363,099)
136,802

Net cash provided by (used in) operating activities

9,034,619

4,572,711

(Unit: Thousand yen)Previous fiscal year
(from April 1, 2021 toMarch 31, 2022)

Fiscal year under review(from April 1, 2022 toMarch 31, 2023)

Net cash provided by (used in) investing activities
Purchase of securities
Proceeds from redemption of securities
Proceeds from sale of securities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for retirement of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from redemption of investment securities
Payments for asset retirement obligations
Loan advances(1,697,102)
135,150
392,257(936,398)
863,216(773,933)
11,143(33,553)(51,883)(510,983)
42,575(6,282)-(880,710)
1,049,380
376,535(1,031,390)
1,029,209(943,155)
67,348(102,000)(65,552)(314,555)
200,000(33,132)

Net cash provided by (used in) investing activities(2,565,794)(648,024)

400,000(400,000)(437,937)(361)(1,000,113)(33,479)

400,000(400,000)(483,452)(300,000)(461)(1,836,787)(25,701)(1,481,340)(1,608,888)

Net cash provided by (used in) financing activities(2,953,232)(4,255,291)

Effect of exchange rate change on cash and cash equivalents

541,234

1,015,224

Net cash provided by (used in) financing activities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of finance lease liabilities
Redemption of bonds
Net decrease (increase) in treasury shares
Dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting in change inscope of consolidation

Net increase (decrease) in cash and cash equivalents

4,056,826

684,619

Cash and cash equivalents at beginning of period

13,932,676

17,989,503-

238,914

17,989,503

18,913,037

Increase in cash and cash equivalents resulting from inclusion ofsubsidiaries in consolidation
Cash and cash equivalents at end of period

(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.

(Significant Matters that Serve as the Basis for Preparation of Consolidated Financial Statements)
1. Matters regarding the scope of consolidation(1)

Number of consolidated subsidiaries: Six
Names of consolidated subsidiaries
RIKEN KEIKI NARA MFG. Co., Ltd.
RIKEN KEIKI TAIWAN CO., LTD.
RIKEN KEIKI COMMERCIAL (SHANGHAI) CO., LTD.
RKI Instruments, Inc.
R K INSTRUMENTS (S) PTE LTD
RIKEN KEIKI GmbHRIKEN KEIKI GmbH, which was a non-consolidated subsidiary in the previous fiscal year, is includedin the scope of consolidation from the fiscal year under review, due to its increased importance.

(2)

Number of unconsolidated subsidiaries: Two
Names of unconsolidated subsidiaries
RIKEN KEIKI Technocrats Co., Ltd.
RIKEN KEIKI (M) SDN.BHD.
Reason for the exclusion from the scope of consolidation
Both unconsolidated subsidiaries are small in scale, and the total of total assets, net sales, profit and retained
earnings (an amount corresponding to the equity interests of the Company), etc. of both companies does notexert a material influence on consolidated financial statements.

2. Matters regarding adoption of equity method(1)

Number of affiliated companies to which the equity method is applied
Not applicable.

(2)

Names of major unconsolidated subsidiaries or affiliated companies to which the equity method is not applied
RIKEN KEIKI Technocrats Co., Ltd.
RIKEN KEIKI KOREA CO., LTD.
Reason for not applying the equity method
In terms of profit and retained earnings (an amount corresponding to the equity interests of the Company), etc.,
the companies to which the equity method is not applied may only exert an immaterial influence on the
Company’s consolidated financial statements even if the companies are excluded from the scope of theapplication of the equity method, and also on the overall financial results.

3. Matters regarding the fiscal year, etc. of consolidated subsidiaries
The last day of consolidated subsidiaries’ business year is December 31, which differs from the consolidated closing
date. Any significant transaction between the last day of their business year and the consolidated closing date is
subject to adjustment required for consolidated reporting.

4. Matters regarding accounting policies(1)

Valuation standards and accounting treatment for important assets(i)Securities(a)Held-to-maturity debt securities
Held-to-maturity debt securities are stated at amortized cost (the straight-line method).

(b)

Other securities
Securities other than stocks without quoted market prices
These are stated at fair market value. The difference between acquisition cost and market value
is accounted for as net unrealized holding gains or losses on securities in net assets, with thecost of sales determined by the moving average method.
Stocks without quoted market prices
They are carried at cost, which is determined by the moving average method.

(ii)

Derivatives
Derivatives are stated at fair market value.
(However, the market value method shall not be applied to interest rate swap transactions that satisfy therequirements for exceptional accounting treatment. The net amount to be paid or received under theinterest rate swap transaction shall be added to or subtracted from the amount of interest on debt subject
to the interest rate swap agreement.)(iii) Inventories(a)Merchandise and finished goods
Stated at cost, with cost being determined by the gross-average method. (The method of book value
devaluation based on a decline in profitability applies to values in the balance sheet.)
However, the identified-cost method shall be applied for certain finished goods.

(b)Work in process
Stated at cost, with cost being determined by the gross-average method. (The method of book value
devaluation based on a decline in profitability applies to values in the balance sheet.)
However, the identified-cost method shall be applied for certain work in process.

(c)

Raw materials and supplies
Stated at cost, with cost being determined by the gross-average method. (The method of book value
devaluation based on a decline in profitability applies to values in the balance sheet.)(2)

Depreciation method for material depreciable assets(i)

Property, plant and equipment (excluding leased assets)
Straight-line method
The principal useful lives are as follows.
Buildings and structures: 31 to 50 years(ii)

Intangible assets
Computer software purchased for internal use is amortized by the straight-line method based on theestimated internal useful life (five years).
Customer-related assets are amortized by the straight-line method based on estimated profitable period(nine to fifteen years), the basis of calculating the proceeds.

(iii) Leased assets
Leased assets related to finance lease transactions other than those where ownership of the lease assets isdeemed to be transferred to the lessee are amortized by the straight-line method, assuming the lease period
is the useful life and no residual value.
(3)

Accounting standards for allowance and provisions(i)

Allowance for doubtful accounts
The allowance for doubtful accounts is provided in an amount sufficient to cover possible losses estimatedas a historical write-off ratio of bad debts for general receivables, with the addition of required amounts
for doubtful accounts and bankrupt receivables based on a case-by-case assessment of the possibility ofcollection.

(ii)

Provision for bonuses
Accrued employees’ bonuses are provided based on the estimated amount to be paid.

(iii) Provision for product warranties
Provision for product warranties is provided for product after-sale service expenses based on the historicalperformance.
(iv) Provision for loss on orders received
As a reserve against future losses on sales of ordered products, the estimated loss on sale of ordered
products is calculated for those undelivered at the end of the current consolidated fiscal year.
(4)

Accounting treatment of retirement benefit payments(i)

Attribution method for projected retirement benefits
In calculating retirement benefit obligations, the benefit formula basis is applied as the method for
attributing projected retirement benefits to the period up to end of the current consolidated fiscal year.

(ii)

Treatment method of actuarial losses
The actuarial loss (88,161 thousand yen) is expensed as incurred.

(5)

Accounting policies for significant revenue and expenses
For contracts with customers, we recognize revenue arising from contracts with customers based on thefollowing five-step approach.
Step 1: Identify a contract with the customer
Step 2: Identify performance obligations in the contract
Step 3: Calculate the transaction price
Step 4: Allocate the transaction price to performance obligations in the contract
Step 5: Recognize revenue when or as performance obligations are fulfilled
In recognizing revenue, we identify performance obligations for the sale of products, services and other sales
in the Group under contracts with customers, and usually recognize revenue at the following times when we
determine that we have fulfilled the Group’s performance obligations.
(i)

Revenue from the sale of products
With respect to the sale of a product, under the contract with the customer, if the Group is obligated to
execute tasks up to the installation of the product, we regard the sale and installation of the product as asingle performance obligation, and when the installation of the product is completed, we determine thatthe performance obligation will be fulfilled by the transfer of control of the asset to the customer, thenrecognize revenue.
On the other hand, under the contract with the customer, if the Group is not obligated to install the product,
we recognize the revenue at a time when the product is shipped because the period from the time of
shipment to the transfer of control of the product to the customer is a normal period.

(ii)

Revenue from services and other sales
Revenue from services and other sales primarily includes revenue from product-related operations suchas warranty, repair, maintenance and relocation, and performance obligations are fulfilled at a point intime. Therefore, we recognize the revenue at a time when the provision of services is completed.

(6)Standards of translation of significant foreign-currency-denominated assets or liabilities into Japanese yen
Foreign-currency-denominated money claims and liabilities are translated into Japanese yen at the spot
exchange rates in effect on the consolidated balance sheet date, and the difference arising from such translationis stated as a gain or loss. Assets, liabilities, revenue and expenses of consolidated subsidiaries outside of Japanare translated into Japanese yen at the spot exchange rates in effect at the balance sheet date of these companies
and the exchange differences are included in foreign currency translation adjustment and non-controllinginterests under net assets.

(7)

Accounting for significant hedges(i)Hedge accounting
The exceptional accounting treatment is applied for interest rate swap transactions that satisfy therequirements for the treatment.

(ii)

Hedging instrument and hedged items
Hedging instrument: Interest rate swaps
Hedged item: Interest on debts(iii) Hedge policy
To reduce interest rate risks and improve financial balance, hedging shall be conducted within the extent
of the liabilities involved.
(iv) Evaluation of hedge effectivenessFor interest rate swaps with the exceptional accounting treatment, hedge effectiveness is not evaluated.
(8)

Amortization of goodwill and amortization period
Amortization has been based on the seven-to-nine year-period straight line method.

(9)

Scope of cash in the Consolidated Statement of Cash Flows
Cash and cash equivalents in the Consolidated Statement of Cash Flows comprise cash on hand, readily
available deposits, and short-term liquid investments expiring within six (6) months of the date they wereacquired and incurring minimal risk from fluctuations in value.

(Changes in Accounting Policies)(Adoption of the Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Company has adopted the “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ
Guidance No. 31, June 17, 2021; hereinafter referred to as the “Implementation Guidance on Fair Value Measurement
Accounting Standard” ) from the fiscal year under review, and decided to adopt the new accounting policies defined in
the Implementation Guidance on Fair Value Measurement Accounting Standard over the future, according to thetransitional treatment specified in Paragraph 27-2 of the Implementation Guidance on Fair Value Measurement
Accounting Standard. This has no impact on the consolidated financial statements.

(Notes on Substantial Changes in the Amount of Shareholders’ Equity)
During the second quarter of the fiscal year under review, capital surplus decreased by 790,217 thousand yen due to theacquisition of additional shares of RKI Instruments, Inc., a consolidated subsidiary of the Company, from non-controllingshareholders.
As a result, capital surplus at the end of the fiscal year under review was 1,094,969 thousand yen.

(Changes in presentation)(Related to Consolidated Balance Sheet)“Electronically recorded obligations–operating” which were included in “Notes and accounts payable–trade” in theprevious fiscal year, have become more significant in terms of monetary value and, as a result, are separately presented
from the fiscal year under review. The consolidated financial statements for the previous fiscal year have been reclassified
to reflect this change in presentation.
As a result, 4,625,929 thousand yen included in “Notes and accounts payable–trade” in the consolidated balance sheet
for the previous fiscal year has been reclassified as 4,093,889 thousand yen presented in “Notes and accounts payable–
trade” and as 532,039 thousand yen presented in “Electronically recorded obligations–operating.”(Consolidated Statement of Cash Flows)“Loss (gain) on valuation of securities,” which was included in “Other” under “Cash flows from operating activities” inthe previous fiscal year, is now separately presented from the fiscal year under review due to its increased monetaryimportance. The consolidated financial statements for the previous fiscal year have been reclassified to reflect this change
in presentation.
As a result, 1,294,334 thousand yen presented in “Other” in Consolidated Statement of Cash Flows for the previous fiscal
year has been reclassified as 8,142 thousand yen presented in “Loss (gain) on valuation of securities” and as 1,286,192
thousand yen presented in “Other.”(Segment Information, Etc.)[Segment information]
Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)
As the Group engages in a single segment of the manufacture and sale of various types of industrial measurement devices
and their related businesses, the disclosure of business segment information has been omitted.
Fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)
As the Group engages in a single segment of the manufacture and sale of various types of industrial measurement
devices and their related businesses, the disclosure of business segment information has been omitted.
[Related information]
Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)
1.

Information by product and service(1)

Net sales(Unit: Thousand yen)2.

Fixed gas detection alarm
devices

Portable gas detection
alarm devices

26,257,981

9,903,865

Other measurement
devices

Total

1,202,105

37,363,952

Information by region(1)

Net sales
Overseas sales
Japan

Asia

North
America

EuropeOthers288,566 12,527,528

Ⅰ Net sales(thousand yen)

24,836,424

7,138,742

4,265,296

834,922

Ⅱ Percentage ofconsolidated net
sales

66.5

19.1

11.4

2.2

(Note)
(2)

0.8

Total

33.5

Consolidated
net sales
37,363,952
100.0

Net sales are classified by country or region based on the customer’s location.

Property, plant and equipment
Description is omitted as the amount of property, plant, and equipment located in Japan exceeds 90% of theproperty, plant, and equipment on the balance sheets.

3.

Information on major customers(Unit: Thousand yen)
Name of customer

Net salesKIOXIA Corporation(Note)

3,878,721

As the Group engages in a single segment of the manufacture and sale of various types of industrial
measurement devices and their related businesses, the disclosure of relevant segment information has
been omitted.

Fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)
1.

Information by product and service(1)

Net sales(Unit: Thousand yen)Fixed gas detection
alarm devices

Portable gas detection
alarm devices

30,955,063
2.

Other measurement
devices

12,882,820

Total

1,166,923

45,004,807

Information by region(1)

Net sales
Overseas sales
Japan

Ⅰ Net sales(thousand yen)
Ⅱ Percentage ofconsolidated net
sales(Note)(2)

Asia

26,170,747 11,434,836
58.2

25.4

North
America

EuropeOthers5,725,658

1,306,077

367,487 18,834,060

12.7

2.9

0.8

Total

41.8

Consolidated
net sales
45,004,807
100

Net sales are classified by country or region based on the customer’s location.

Property, plant and equipment
Description is omitted as the amount of property, plant, and equipment located in Japan exceeds 90% of theproperty, plant, and equipment on the balance sheets.

3.

Information on major customers
Of net sales, no specific external customer accounts for 10% or more of the net sales recorded in the consolidated
statement of income, and therefore, description is omitted.

[Information on impairment losses of fixed assets by reportable segment]
Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)
As the Group engages in a single segment of the manufacture and sale of various types of industrial measurement devices
and their related businesses, the disclosure of business segment information has been omitted.
Fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)
As the Group engages in a single segment of the manufacture and sale of various types of industrial measurement devices
and their related businesses, the disclosure of business segment information has been omitted.
[Information concerning amortization of goodwill and unamortized balances by reportable segment]
Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)
As the Group engages in a single segment of the manufacture and sale of various types of industrial measurement devices
and their related businesses, the disclosure of business segment information has been omitted.
Fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)
As the Group engages in a single segment of the manufacture and sale of various types of industrial measurement devices
and their related businesses, the disclosure of business segment information has been omitted.
[Information concerning gain on bargain purchase by reportable segment]
Not applicable.

(Per Share Information)
Previous fiscal year
(from April 1, 2021 toMarch 31, 2022)

Fiscal year under review(from April 1, 2022 toMarch 31, 2023)

Net assets per share

2,412.75 yen

2,722.26 yen

Earnings per share

256.26 yen

372.41 yen(Note)

1. Diluted earnings per share are not presented because there are no dilutive shares.
2. The basis for calculating earnings per share is shown below.
Previous fiscal year
(from April 1, 2021 toMarch 31, 2022)

Net profit attributable to owners of parent (Thousand yen)

Fiscal year under review(from April 1, 2022 toMarch 31, 2023)

5,963,861

8,670,194(Thousand yen)--

Net profit attributable to owners of parent(Thousand yen)associated with common stock

5,963,861

8,670,194

23,272

23,281

Amount not attributable to shareholdersof common stock

Average number of shares of common
stock outstanding during the period(Significant Subsequent Events)
Not applicable.

(Thousand shares)

4.

Other

(1) Production, orders received, and sales(Unit: Yen amounts are rounded down to millions, unless otherwise noted.)
Previous fiscal year
(from April 1, 2021 toMarch 31, 2022)
AmountFiscal year under review(from April 1, 2022 toMarch 31, 2023)

Composition
ratio

Amount%Production*

Order backlog

68.8

20,383

71.0

4,166

Portable gas detection alarm devices

6,317

26.8

7,314

25.5

997

Other measurement devices

1,035

4.4

1,012

3.5

(22)

23,569100.0

28,711

100.0

5,141

Fixed gas detection alarm devices

29,96671.2

32,342

68.7

2,376

Portable gas detection alarm devices

10,82425.7

13,455

28.6

2,630

Other measurement devices

1,323

3.1

1,249

2.7

(73)

42,114100.0

47,047

100.0

4,932

Fixed gas detection alarm devices

26,25770.3

30,955

68.8

4,697

Portable gas detection alarm devices

9,903

26.5

12,882

28.6

2,978

Other measurement devices

1,202

3.2

1,166

2.6

(35)

Total

37,363100.0

45,004

100.0

7,640

Overseas sales (included in total sales)

12,52733.5

18,834

41.8

6,307

Fixed gas detection alarm devices

7,872

74.4

9,259

73.3

1,387

Portable gas detection alarm devices

2,350

22.2

2,923

23.2

572

356

3.4

439

3.5

82

10,579100.0

12,621

100.0

2,042

Other measurement devices
Total

*

%

16,216Total

Net sales

Composition
ratio

Fixed gas detection alarm devices

Total

Orders received

Rise or (fall)

The amount is converted into sales price.