F i n a n c i a l Re s u l t s B r i e f i n g fo r t h e
F i s c a l Ye a r E n d e d M a r c h 2 0 2 4May, 2024

RIKEN KEIKI Co., Ltd.

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.

Medium-Term Management Vision

In response to sustainable social and customer needs such as for theIoT and decarbonization, the RIKEN KEIKI Group will develop newtechnologies and expand overseas markets to aim for a global
company that achieves sustainable growth by utilizing the power of‘people’ and ‘technology’2History
1939

2017

2009

Established to commercialize
optical interferometriccombustible gas detectors
designed by the Institute ofPhysical and Chemical Research(RIKEN)RKI INSTRUMENTS, INC.
USA becomes a subsidiary.

RIKEN KEIKI COMMERCIAL(SHANGHAI) CO.,LTD. China
established1961

2018

2015

R K INSTRUMENTS (S)PTE LTD, Singapore
becomes a subsidiary

New development center opened

2019(Kasukabe-shi, Saitama, Japan)

FY2023 Sales

45.5 billionyen

Launch of portable gas detector
GX-3R/GX-3R Pro series

Listed on the Tokyo Stock
Exchange's 2nd Section

2020

1972

New production center
completed

RIKEN KEIKI NARA MFG. Co.,
Ltd. established(Kasukabe-shi, Saitama, Japan)

1995
Listed on the First Section of theTokyo Stock Exchange■ Net Sales

1934

2008
Launch of flagship portable gasdetector GX-2009
Launch of fixed-type gas detector
GD-70D for semiconductor plants(Millions of yen)

1950

1960

1970

1980

1990

2000

2010

2020

3Our Products■Industrial gas detection and alarm
equipment
Other measurement

More than 100 different products

2.6%

devices

Surface analysis ofelectronic materials andgas calorimeters

Portable-type

Fixed-type

For personal safety
management andgas leakage point detection,etc.

Continuous monitoring ofgas leaks in equipment
and facilities

31.5%■Percentage of sales bycustomer industry●Others(including machinery,steel, and automobiles)

29%

43%

● Ship6%
65.9%

● Gas

9%
■Use of our products● Electrical &Semiconductor●Petrochemical

11%* 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● Prevention of gas explosions

Semiconductor, liquid crystal,petroleum refining, petrochemical
and chemical plants

Petrochemical plants, LNG/LPG receiving
terminals, tankers, printing plants, etc.

● Prevention of oxygen
deficiency● Environmental
measurement

Sewage treatment plants, manholework, paper and pulp mills, steelmills, etc.

Control of dioxin
generation, measurementof atmosphericenvironment, etc.

● Others
Surface analysis ofelectronic materials,
surface analysis by Xray, etc.

4

FINANCIAL RESULTS
Fiscal ended March 31, 2024

Summary of Operating Results (FY2023)◼ Sales increased slightly and profits were flat year on year due tosoft sales to the semiconductor industry and lithium-ion battery
factories.
(Millions of yen)

FY2022

FY2023Full-year
results

Full-year
results

Net sales

45,00445,581101.3%

46,40098.2%

Operating profit

11,551

11,47699.4%

11,60098.9%

Operating profit
sales

25.7%

25.2%

98.1%

25.0%

―Ordinary profit

11,944

12,272102.7%

12,000102.3%Net profit

8,670

8,378

96.6%

8,700

96.3%

Earnings per share– BasicAnnual dividends
per share*

Full-year
forecast

Y on Y*

Achievement
rate*

186.21179.91

96.6%

186.83

96.3%

80

80

-80

-

*On April 1, 2024, the Company conducted a 2-for-1 stock split of its common stock. Net profit per share is calculated on
the assumption that the stock split was conducted at the beginning of the previous fiscal year.

6Net Sales and Profit/Loss (Full Year)◼ Sales increased slightly and operating profit remained flat in FY2023.
◼ Sales were weak due to delayed market recovery in semiconductor industry capex
investment, sluggish market conditions in China, etc.
Net sales

Net sales

Operating profit

Operating profit(Millions of yen)

(Millions of yen)

50,00011,551

11,47645,000

8,402

40,00035,00030,000

4,415

5,103

6,197

45,00445,58237,36320,00015,00010,0006,598

25,00028,08930,65032,18912,000

8,000

6,000

32,2094,000

10,0002,000
5,000
00FY2017

FY2018FY2019FY2020

FY2021

FY2022

FY2023

7

Sales by Device Type (Full Year)◼ Sales of fixed detectors were sluggish due to delays in the recovery of capital
investment in the semiconductor industry.
◼ Sales of portable detectors increased due to healthy sales in North America, etc.
Net sales

Others(Millions of yen)
50,000Portable-type

Fixed-type

37,36245,00040,00035,00030,00025,00020,00045,00430,6501,268(4.1%)(4.8%)

8,307

32,2091,202(3.2%)

28,0891,356

32,1898,851(28.9%)

1,123941(3.5%)(2.9%)

9,551

8,800

(29.7%)(27.3%)

21,514

22,466

9,903

45,581

1,166

1,179

(2.6%)(2.6%)

12,882

14,344(28.6%)(31.5%)(26.5%)(29.6%)

15,00010,0005,000

18,425(65.6%)

20,530(67.0%)(66.8%)

26,257(70.3%)

30,955(68.8%)

30,056(65.9%)(69.8%)

0
FY2017FY2018FY2019FY2020*FY2021

FY2022

FY2023

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

8Orders by Device Type (Full Year)◼ Orders for fixed-type detectors fell due to delays in the recovery of capital
investment in the semiconductor industry.
◼ Orders for portable-type detectors increased steady due to strong sales in North
America, etc.
Net sales
Others(Millions of yen)
50,000Portable-type

Fixed-type42,11445,00029,1701,567

30,000(5.4%)

25,0008,297

20,0001,249(2.7%)

1,323

40,00035,00047,047(28.4%)

30,9891,117(3.6%)

9,353(30.2%)

32,3451,090(3.4%)

9,797(30.3%)

33,437(3.1%)

10,824927(2.8%)(25.7%)

45,563
1,279(2.8%)

13,455(28.6%)

16,707(36.7%)

8,804(26.3%)

15,00010,000
5,000

19,304

20,51821,457(66.2%)(66.2%)(66.3%)FY2017FY2018FY201923,70529,96632,342(71.2%)(68.7%)(70.9%)

27,576(60.5%)

0
FY2020*FY2021

FY2022

FY2023

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

9Overseas Sales by Region (Full Year)◼ Asian markets were weak, particularly for semiconductor industry and lithium-ion
battery factories.
◼ Overseas sales ratio increased due to growth in overseas markets, particularlyNorth America.
Net sales by regionOthersEuropeNorth America

Asia

Ratio on sales41.8%(Millions of yen)

18,83420,000

30.9%

29.6%

10,000243 (0.9%)724 (2.6%)
3,777
5,000(13.4%)

3,926(14.0%)

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

3,930

367 (0.8%)
1,306 (2.9%)

12,527

5,725

31.0%

28.9%

15,000

8,672

33.5%

9,975
302(0.9%)627 (2.0%)288(0.8%)9,306

837 (2.2%)

236 (0.7%)4,265654 (2.0%)

3,866

3,203

(12.0%)(9.9%)

5,211(16.1%)(16.2%)

19,860330 (0.7%)
1,348 (3.0%)

40%

35%

6,613

30%(14.5%)
25%

20%

15%

11,434(25.4%)

5,177

45%(11.4%)(12.8%)

4,125(13.5%)(12.7%)

43.6% Ratio on sales

11,568(25.4%)

10%

7,138(19.1%)

5%

00%

FY2017FY2018FY2019FY2020*FY2021

FY2022

FY2023The sum of the ratios to net sales may not match due to rounding

10

Sales by Customer Industry (Non-consolidated)◼ 43% for the electrical and semiconductor industries, 11% for the petrochemical industry, 9%
for the gas industry, and 6% for the shipping industry.
◼ Sales ratio to the semiconductor industry declined due to slow market recovery in capital
investment in the industry.
Sales by Customer Industry(Millions of yen)
40,000

Others (government, steel, automobiles, electric power, construction, etc.)
ShipGasPetrochemical
Electrical & Semiconductor(29.5%)
30,000(28.8%)(30.5%)(31.9%)
20,000(31.4%)(32.1%)(34.4%)(7.5%)
10,000(32.6%)(8.3%)(5.9%)(8.2%)(12.2%)(10.9%)(6.0%)(7.0%)(6.1%)(6.9%)(8.5%)(10.3%)(11.4%)(6.7%)(7.5%)(11.4%)(6.4%)(6.5%)(8.4%)(9.7%)(10.4%)(11.3%)(46.0%)(43.0%)FY2022

FY2023(7.5%)(11.7%)(37.6%)(42.9%)(43.9%)(41.4%)(43.0%)(44.3%)FY2016FY2017FY2018FY2019FY2020

FY2021011

Sales Ratio of Products and Maintenance(Non-Consolidated)◼ Product sales were weak due to delays in the recovery of capital investment in thesemiconductor industry.
◼ Post-sales maintenance sales rose due to recent increase in product sales and renewal
projects.

Sales of Products and MaintenanceNet sales

Products (including construction)(Millions of yen)

45,00043.9%

40,000

MaintenanceRatio of Maintenance

Products andMaintenance ratio
50%

41.4%

41.0%

40.6%
38.0%

35,000

38.7%
40%

35.9%
14,741

30,00013,75220,00030%

12,33525,00010,854

11,194

11,466

11,69320%

15,00010,0005,000

13,853

15,846

16,467

17,072

20,11524,57623,33410%00%

FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

12Cash Flows◼ Operating CF decreased due to a decline in accounts payable and other factors.
◼ Topics in investing CF included acquisition of land and buildings by our U.S.
subsidiary.
Operating, investing andfinancing CF(Millions of yen)

6,000

12,239Operating CF

Investing CFFinancing CF

CF Ending balance(Millions of yen)

17,98914,34615,016
13,9324,000

CF Ending balance

17,167
18,91318,0009,034
15,000

4,220

2,000

5,232

4,572

4,085

2,219

3,373
0

△ 855
△ 495

△ 2,000△ 1,0129,000△ 1,193△ 2,472△ 1,045

12,000△ 2,464△ 2,953△ 4,255

6,000△ 3,327△ 2,756△ 4,000△ 2,565△ 2,464△ 648△ 6,000

3,000

0FY2017FY2018FY2019FY2020

FY2021

FY2022

FY202313

Changes in ROE◼ ROE held steady at 12.3% and we will aim to maintain thelevel above double digits going forward.
(Unit: %)

16

14.5

1412.3
11.1

1210

9.6

9.5

9.5

FY2018FY2019FY2020

8.0

86
4
20
FY2017

FY2021

FY2022

FY2023
14

Total Assets and Net Assets◼ Increase in current assets due to securing necessary inventories in response todifficulties in procuring semiconductor components and a delayed semiconductor
market recovery.
◼ Maintaining high equity ratio with high degree of safety.
Total assets & net assets

Total assets

Net assets

Equity ratio
Equity ratio(Millions of yen)
90,00080,000

81.8%
78.3%

77.6%

78.8%

79.3%

79.4%

79.5%

80%

70,00060,00070%

50,00088,59140,00079,746
71,60630,00020,00052,91042,52756,851
46,21260,21949,63564,326
52,61556,85872,45360%

63,38350%

10,000040%

FY2017FY2018FY2019FY2020

FY2021

FY2022

FY202315

CAPEX◼ Increased due to integration costs of sales and maintenance bases
and acquisition of land and buildings of U.S. subsidiary.
Including construction costsof production center (e.g.
construction starts) andacquisition of land for
Amagasaki construction

Capex(Millions of yen)

Including construction cost of
production center (completion)

4,500
Including construction costfor the Amagasaki branch
and acquisition costs forthe land and buildings of
the U.S. subsidiary

4,000
3,500

3,000
2,500

Including construction
costs for the new head
office

4,182

2,000

4,279

Including costs for
integration of
Amagasaki branch

3,161

1,500
1,000

2,009
1,384

1,057

500

678

0

FY2017FY2018FY2019FY2020

FY2021

FY2022

FY202316

Depreciation◼ Depreciation cost was at the similar level as last year.

1HDepreciation

2H(Millions of yen)

1,855

2000

1,917

1,971

1800

1,529

1600

1,274

1400
1200

994

974

1,014

918

943

957

FY2021

FY2022

FY2023

937
827

1000

722
800

1,339

676

531

600
400
200

463

552

663

702

FY2019FY2020

0FY2017

FY201817

R&D Expenditure◼ Continuous investment in new product development and enhancement offunctions of existing model of products.

◼ The ratio of R&D expenditure to net sales is expected to remain around 6%
in the future.
R&D Expenditure

R&D ExpenditureRatio of R&D Expenditure to net sales

expenditure to net sales(Millions of yen)

6.4%
2,500

Ratio of R&D
7%

6.1%

5.9%
5.5%

5.4%
5.7%

5.0%

2,000

5%

4%

1,500

2,408
1,000

6%

1,808

1,883

1,784

1,908

2,135

2,288

3%

2%

500

1%

0%

0

FY2017FY2018FY2019FY2020

FY2021

FY2022

FY202318

Shareholder Returns◼ Dividends for FY2023 were the same as the previous year.
(¥40 for the full year, factoring in a stock split)◼ Basic dividend policy is stable dividends.
Cash dividends paid

Cash dividends paid(Yen)Dividend payout ratio

Dividend payout ratio
30%

23.4%

60

22.0%

20.1%

21.4%

21.5%

20.8%

22.2%

25%

20%
4015%

10%

402015

1820

2140

305%

0%

0

FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023* On April 1, 2024, the Company conducted a 2-for-1 stock split of its common stock. The dividend per share for each fiscal year isadjusted as if the stock split had been conducted at the beginning of the previous fiscal year.

19FORECAST FOR THE FISCALYEAR ENDING MARCH 2025Earnings Forecasts(Year Ending March 31, 2025)◼ We expect the semiconductor market to recover from the second half of 2025.
◼ We will focus on expanding sales of fixed-type products in overseas markets,
especially in Asia and North America, and securing domestic capital investment
projects.
◼ We expect to increase headcount and to improve operation in response to sales(Millions of yen)
expansion and new market development.
FY2023Q2(cumulative)
results

FY2024Q2(cumulative)
forecast

Full-year
results

Full-year
forecast

Net sales

22,67545,581

23,60048,000Operating profit

5,847

11,476

5,900

11,800Operating profit sales

25.8%

25.2%

25.0%

24.6%

Ordinary profit

6,456

12,272

6,150

12,300Net profit

4,548

8,378

4,600

9,000

Earnings per share-BasicAnnual dividends
per share

97.67
-

*

179.91
40

*
*

98.77

*

193.24-*On April 1, 2024, the Company conducted a 2-for-1 stock split of its common stock. Dividends per share areadjusted as if the stock split had been conducted at the beginning of the previous fiscal year.

40

*
*21

PROGRESS OF THE MEDIUMTERM MANAGEMENT PLAN
FY2023 to FY2025

Medium-term Management Plan Numerical Targets◼ In the first year of the Medium-term Management Plan (FY2023), we worked to improve ouroperation. The result fell slightly below the plan due to continued cutbacks in capital
investment in memory semiconductors, etc.

◼ In the second year, fiscal 2024, we will step up the challenge of developing new markets,including those overseas. Anticipating a recovery in capital investment in the semiconductor
industry, we will continue to increase headcount and to improve operation in response tosales expansion.
◼ We will maintain a high profit margin of 20% or more, and ensure achievement of second
and third year targets by developing new products, strengthening overseas strategies, etc.
(Millions of yen)

Medium-Term Management Plan Period
FY2023

ActualPlan

FY2024FY2025

ForecastPlan

Net sales

45,581

46,40048,00050,000 or
more

Operating profit

11,476

11,60011,80012,000 or
more

Net profit

8,378

8,700

9,000-

ROE

12.3%---23