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.

February 8, 2024

Consolidated Financial Results for the Nine Months Ended December 31, 2023
[Under Japanese GAAP]
Company name:
RIKEN KEIKI Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
7734
URL:
https://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 to file quarterly securities report:
February 8, 2024
Scheduled date to commence dividend payments:–
Preparation of supplementary materials on quarterly financial results:
None
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)1.
(1)

Consolidated Financial Results for the Nine Months Ended December 31, 2023 (from April 1, 2023 to December 31, 2023)
Consolidated Operating Results (Cumulative)(% indicates year-on-year changes)
Net sales

Operating profit

Millions of Yen

Nine months ended
December 31, 2023
December 31, 2022
Note: Comprehensive income%

Nine months ended
December 31, 2023
December 31, 2022

Millions of Yen%

Millions of Yen

9,200(10.9)
10,32450.1
8,612 million Yen [2.4%]
8,406 million Yen [46.3%]

6,567
7,119

%

(7.7)
47.5

Earnings per share-DilutedYen

Yen

282.06305.79––Consolidated Financial Position
Total assets

Net assets

Millions of Yen

As ofDecember 31, 2023
As of March 31, 2023
Reference: Equity
2.

%

34,325(1.3)
8,655(17.2)
34,76824.6
10,45755.8
For the nine months ended December 31, 2023
For the nine months ended December 31, 2022

Earnings per share-Basic-(2)Millions of Yen

Net profit attributable toowners of parent

Ordinary profit

85,982
79,746
As of December 31, 2023

Equity-to-asset ratio

Millions of Yen

Net assets per share%

Yen

70,14981.6
3,012.35
63,38379.5
2,722.26
70,149 million Yen
As of March 31, 2023 63,383 million Yen

Cash Dividends
First quarter-end
Yen

Annual dividends per share
Second quarter-end Third quarter-end
Fiscal year-end
Yen

Fiscal year ended
March 31, 2023–
40.00
Fiscal year ending
March 31, 2024–
40.00
Fiscal year ending
March 31, 2024
(Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: None

Total

Yen

Yen

Yen

–

40.00

80.00

40.00

80.00

–

3.

Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (from April 1, 2023 to March 31, 2024)(% indicates year-on-year changes)
Net sales
Millions of Yen

Operating profit%

Millions of Yen

Net profit attributableto owners of parent

Ordinary profit%

Earnings per
share

Millions of Yen%

Millions of Yen%

Yen

Full year
46,4003.1
11,6000.4
12,000Note: Revision to the forecast of the financial results most recently announced: None

0.5

8,700

0.3

373.61* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in change in scope of
consolidation): None
Newly included: – companies (Company name)
Excluded: – companies (Company name)(2)

Adoption of accounting process specific to the preparation of quarterly consolidated financial statements: None

(3)

Changes in accounting policies, changes in accounting estimates, and restatement(i)
Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: Yes(iii) Changes in accounting estimates: None(iv) Restatement: None(4)

Number of issued shares (common shares)(i)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2023
23,661,000 shares
As of March 31, 2023
23,661,000 shares(ii) Number of treasury shares at the end of the period
As of December 31, 2023
373,710 shares
As of March 31, 2023
377,565 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2023
23,285,766 shares
Nine months ended December 31, 2022
23,280,598 shares*

Quarterly financial results reports are exempt from quarterly review 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 theirachievement of them. Actual financial results may differ significantly from the forecasts due to various factors. For assumptions
underlying the financial results forecasts and cautions concerning the use thereof, please refer to “(3) Explanation ofConsolidated Financial Results Forecasts and Other Forward-Looking Information” in “1. Qualitative Information on Financial
Results for the First Nine Months of the Current Fiscal Year” on page 2 of the attachment.

○ Table of Contents of Attachment

1.

2.

Qualitative Information on Financial Results for the First Nine Months of the Current Fiscal Year ....................... 2(1)

Explanation of Operating Results .......................................................................................................................... 2(2)

Explanation of Financial Position........................................................................................................................... 2(3)

Explanation of Consolidated Financial Results Forecasts and Other Forward-Looking Information ............ 2

Quarterly Consolidated Financial Statements and Significant Notes Thereto ............................................................. 3(1)

Quarterly Consolidated Balance Sheet .................................................................................................................. 3(2)

Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
Income ...................................................................................................................................................................... 5
Quarterly Consolidated Statement of Income ............................................................................................................ 5First nine months ................................................................................................................................................ 5
Quarterly Consolidated Statement of Comprehensive Income .................................................................................. 6
First nine months ................................................................................................................................................ 6(3)

Notes to Quarterly Consolidated Financial Statements ........................................................................................ 7(Notes on Going Concern Assumptions) ................................................................................................................... 7(Notes When There is Significant Changes in Amounts of Shareholders’ Equity) .................................................... 7(Changes in Accounting Policies) .............................................................................................................................. 7(Significant Subsequent Events) ................................................................................................................................ 8

- 1 -

1.

Qualitative Information on Financial Results for the First Nine Months of the Current Fiscal Year

(1) Explanation of Operating Results
In the first nine months of the fiscal year under review, the Japanese economy recovered moderately as the impact of COVID19 weakened further after it was reclassified into a Category 5 infectious disease.
The uncertain outlook in the economic situation, however, is still continuing given the unstable state of global affairs, sharp
fluctuations in foreign exchange rates, and rising prices for raw materials and energy.
In the industrial disaster prevention and safety equipment industry in which the Group belongs, our main customers, many ofwhich are in the semiconductor industry, are taking a cautious approach to capital investment. They are also in a situation
where it is important to pay suitable attention to potential impacts from instability in the supply of components and the rising
price of goods. Accordingly, this situation of uncertainty is expected to continue in the foreseeable future.
Under these circumstances, the Group has continued to take measures to reduce costs by streamlining production, thoroughly
reduce expenses, develop aggressive sales activities, aggressively invest in new product development, and enhance its quality
control and service systems.
As a result of these measures, net sales for the first nine months of the fiscal year under review were 34,325 million Yen (down
1.3% year-on-year), operating profit was 8,655 million Yen (down 17.2% year-on-year), ordinary profit came to 9,200 million
Yen (down 10.9% year-on-year), and net profit attributable to owners of parent was 6,567 million Yen (down 7.7% year-onyear).
As the Group engages in a single segment of the manufacture and sale of various types of industrial measurement devices andtheir related businesses, in place of the operating results by segment, sales by device type are described below.
(i) Fixed gas detection alarm devices
Net sales of fixed gas detection alarm devices for the first nine months of the fiscal year under review were 22,774 million
Yen (down 4.4% year-on-year).
(ii) Portable gas detection alarm devices
Net sales of portable gas detection alarm devices for the first nine months of the fiscal year under review were 10,701
million Yen (up 6.6% year-on-year).
(iii) Other measurement devices
Net sales of other measurement devices for the first nine months of the fiscal year under review were 849 million Yen(down 6.4% year-on-year).

(2) Explanation of Financial Position
At the end of the third quarter of the fiscal year under review, assets totaled 85,982 million Yen, an increase of 6,235 million
Yen (up 7.8%) compared with the end of the previous fiscal year. Current assets increased 3,549 million Yen from the end of
the previous fiscal year to 54,850 million Yen. This was mainly due to a 3,025 million Yen increase in raw materials andsupplies, a 1,023 million Yen increase in merchandise and finished goods, a 908 million Yen increase in work in process, andan 849 million Yen increase in notes and accounts receivable–trade, despite a 2,144 million Yen decrease in securities. Noncurrent assets increased 2,686 million Yen from the end of the previous fiscal year to 31,131 million Yen. This was mainly due
to a 1,108 million Yen increase in buildings and structures, and a 1,427 million Yen increase in investment securities.
At the end of the third quarter of the fiscal year under review, liabilities totaled 15,832 million Yen, a decrease of 530 million
Yen (down 3.2%) compared with the end of the previous fiscal year. Current liabilities fell 1,380 million Yen from the end of
the previous fiscal year to 12,643 million Yen. This was mainly due to a 1,206 million Yen decrease in income taxes payable,
an 816 million Yen decrease in accounts payable included in other in current liabilities, despite a 306 million Yen increase innotes and accounts payable - trade. Non-current liabilities grew 850 million Yen from the end of the previous fiscal year to3,189 million Yen. This was mainly due to a 1,142 million Yen increase in deferred tax liabilities included in other in noncurrent liabilities.
At the end of the third quarter of the fiscal year under review, net assets totaled 70,149 million Yen, an increase of 6,765
million Yen (up 10.7%) compared with the end of the previous fiscal year. This was mainly due to a 4,705 million Yen increase
in retained earnings as a result of recording 6,567 million Yen in net profit attributable to owners of parent and dividend
payments of 1,862 million Yen.

(3) Explanation of Consolidated Financial Results Forecasts and Other Forward-Looking Information
There is no change to the consolidated financial results forecasts for the fiscal year ending March 31, 2024, that were stated in
the Consolidated Financial Results for the Fiscal Year Ended March 31, 2023, released on May 11, 2023.
- 2 -

2.

Quarterly Consolidated Financial Statements and Significant Notes Thereto(1) Quarterly Consolidated Balance Sheet
As of the end of the previous
fiscal year
(March 31, 2023)
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, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Customer-related assets
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 3 -(Unit: Thousand Yen)
As of the end of the third quarterof the fiscal year under review(December 31, 2023)

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

13,097,163
11,288,986
4,089,162
6,269,468
4,607,140
6,947,711
7,557,961
998,103(5,003)54,850,695

10,826,073
361,360
4,150,454
409,421
1,590,552
17,337,862

11,934,358
354,792
4,519,850
89,462
1,494,169
18,392,632

510,481805,777
451,525
1,767,784

424,225
768,564
712,673
1,905,463

6,033,462
1,827,197
1,482,284(2,900)9,340,044
28,445,691
79,746,745

7,460,908
1,879,497
1,496,118(2,900)10,833,623
31,131,720
85,982,415

As of the end of the previous
fiscal year
(March 31, 2023)
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
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
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets- 4 -(Unit: Thousand Yen)
As of the end of the third quarterof the fiscal year under review(December 31, 2023)

5,201,320
847,302
995,000
1,816,425
988,058
106,260
152,2033,917,125
14,023,696

5,507,772
1,101,944
1,215,000
609,830
551,299
118,10722,4723,516,883
12,643,310

850,580
11,172
1,477,661
2,339,414
16,363,110

594,400
11,1722,584,074
3,189,646
15,832,957

2,565,500
1,094,969
56,626,968(222,609)
60,064,829

2,565,500
1,109,961
61,332,030(221,327)
64,786,164

1,982,144
1,336,660
3,318,805
63,383,634
79,746,745

2,936,279
2,427,013
5,363,293
70,149,458
85,982,415

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income
Quarterly Consolidated Statement of Income
First nine months

Net sales
Cost of sales
Gross profit
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
Gain on valuation of securities
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of non-current assets
Foreign exchange losses
Loss on sale of securities
Loss on valuation of securities
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
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
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net profit
Net loss attributable to non-controlling interests
Net profit attributable to owners of parent

First nine months of the previous
fiscal year
(From April 1, 2022 to
December 31, 2022)
34,768,490
15,906,351
18,862,138
8,404,820
10,457,318(Unit: Thousand Yen)First nine months of the fiscal
year under review(From April 1, 2023 to
December 31, 2023)
34,325,272
16,755,216
17,570,055
8,914,867
8,655,188

58,692
109,574–
8,237
19,133–61,159256,797

73,697
128,754
215,161
34,551–
214,148
52,151
718,464

31,535589
8,392
18,467323,114
7,780
389,880
10,324,235

30,982
580–
141,114–912
173,590
9,200,062

2,559
2,559

107,872
107,872

1,141
26,160102,000
79,528208,830
10,117,963
2,570,993
434,800
3,005,794
7,112,169(6,840)7,119,009

5,666
–
–
–
5,666
9,302,268
2,082,787
651,5872,734,374
6,567,893–
6,567,893- 5 -Quarterly Consolidated Statement of Comprehensive Income
First nine months(Unit: Thousand Yen)

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

First nine months of the previous
fiscal year
(From April 1, 2022 to
December 31, 2022)
7,112,169

First nine months of the fiscal
year under review(From April 1, 2023 to
December 31, 2023)
6,567,893(211,719)
1,506,476
1,294,757
8,406,926

954,135
1,090,353
2,044,488
8,612,382

8,286,203

8,612,382

120,723–- 6 -(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.

(Notes When There is Significant Changes in Amounts of Shareholders’ Equity)
Not applicable.

(Changes in Accounting Policies)(Changes in the Method of Translation of Revenues and Expenses of Subsidiaries outside of Japan)
Revenues and expenses of consolidated subsidiaries outside of Japan had previously been translated into Japanese Yen at
the spot exchange rates in effect at the balance sheet date of these companies. However, the Company changed to amethod of translating them into Japanese Yen at an average exchange rate for the period, starting from the first quarter ofthe fiscal year under review.
This change was made in order to lessen the impact of temporary foreign exchange fluctuations on our period profit orloss as the revenues and expenses of the subsidiaries outside of Japan had grown in importance and to more aptly reflect
their profit or loss occurring throughout each accounting period on our consolidated financial statements.
The impact of this change was negligible.

- 7 -(Significant Subsequent Events)(Share Split and Amendment to the Articles of Incorporation in Connection with the Share Split)
The Company, at a meeting of the Board of Directors held on February 8, 2024, resolved to implement a share split andamend the Articles of Incorporation in connection with the share split.
1.

Share split(1) Purpose of share split
The purpose is to improve the liquidity of the Company’s shares and expand the investor base by implementing ashare split to lower the value per investment unit for the Company’s shares.
(2) Overview of share split(i) Method of share split
The Company will implement a 2-for-1 share split of common shares owned by shareholders listed or recordedin the register of shareholders with a record date of Sunday, March 31, 2024 (however, since this day falls on a
non-business day of the share registration agent, the practical record date shall be Friday, March 29, 2024).
(ii) Number of shares to be increased by share split
Total number of issued shares before the share split:

23,661,000 shares

Number of shares to be increased by this share split:

23,661,000 shares

Total number of issued shares after the share split:

47,322,000 shares

Total number of shares authorized to be issued after the share split:

188,000,000 shares(iii) Timetable for share split
Date of public notice of the record date:

Friday, March 15, 2024

Record date:

Sunday, March 31, 2024

Effective date:

Monday, April 1, 2024(iv) Effect on per share information
Given below are the values of per-share information for the respective periods assuming that the share split was
conducted at the beginning of the previous fiscal year.
First nine months of the previous
fiscal year
(From April 1, 2022 to
December 31, 2022)

First nine months of the fiscal year
under review(From April 1, 2023 to
December 31, 2023)

152.90 Yen

141.03 Yen

Basic earnings per share(v) Other

There will be no change in the amount of stated capital at the time of the share split.

2.

Amendment to the Articles of Incorporation in connection with the share split(1) Reasons for the amendment
As a result of this share split, pursuant to the provisions of Article 184, paragraph (2) of the Companies Act, thetotal number of shares authorized to be issued set forth in Article 6 of the Company’s Articles of Incorporation willbe amended effective April 1, 2024.

- 8 -(2) Content of the amendment
Content of the amendment is as shown below.
Current Articles of Incorporation(Total Number of Shares Authorized to be Issued)
Article 6
The total number of shares authorized to be issued of
the Company shall be 94,000,000 shares.

(Amendment is underlined.)
Articles of Incorporation after amendment(Total Number of Shares Authorized to be Issued)
Article 6
The total number of shares authorized to be issued of
the Company shall be 188,000,000 shares.

(3) Schedule of the amendment
Effective date: April 1, 2024

(Outbreak of fire at a warehouse facility subcontracted by a consolidated subsidiary of the Company)
On January 31, 2024, a fire broke out at a warehouse owned by a third-party that was consigned by the Company’s
Chinese subsidiary RIKEN KEIKI COMMERCIAL (SHANGHAI) CO., LTD. (“RKC”) and RKC’s distribution agent tostore inventories.
At the time of the fire, the warehouse was storing inventories of RKC and products that had been handed over to the
distribution agent. The values of RKC inventories and receivables at the time of sale come to a total of approximately¥589,000 thousand (approximately RMB 30,000 thousand).
The amount of loss from the destruction of inventories and estimated unrecoverable amount of receivables is currently
under review, which will include investigation of the business agreements with the warehouse company and the
distribution agent, and the relevant insurance policies. At present, however, it is difficult to provide a reasonable estimate
for the loss.

- 9 -