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.

November 11, 2021

Consolidated Financial Results
for the Six Months Ended September 30, 2021
[Under Japanese GAAP]
Company name:
RIKEN KEIKI Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
7734
URL:
https://www.rikenkeiki.co.jp/
Representative:
Junichi Koyano, President
Inquiries:
Takuro Maeda, General Manager, Accounting Department, Corporate Administration Division
Telephone:+08-3-3966-1128
Scheduled date to file quarterly securities report:
November 11, 2021
Scheduled date to commence dividend payments:
December 6, 2021
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.

Consolidated Financial Results for the Six Months Ended September 30, 2021 (from April 1, 2021 to September
30, 2021)(1) Consolidated Operating Results (Cumulative)(Percentages indicate year-on-year changes.)
Net sales

Operating profit

Profit attributable toowners of parent

Ordinary profit

Six months ended
Millions of yen%
Millions of yen%
Millions of yen%
Millions of yen
September 30, 2021
18,278
19.0
4,346
53.4
4,503
55.6
3,167
September 30, 2020
15,357(4.7)
2,834(10.5)
2,893(11. 3)
2,002
Note: Comprehensive income
For the six months ended September 30, 2021: ¥4,125 million [97.7%]
For the six months ended September 30, 2021: ¥2,087 million [(16.1)%]
Basic earnings
per share
Six months ended
September 30, 2021
September 30, 2020%

58.1
(15.6)

Diluted earnings
per share
Yen

Yen

136.11
86.11-(2) Consolidated Financial Position
Total assets
As ofMillions of yen
September 30, 2021
67,448March 31, 2021
64,326
Reference: Equity
As of September 30, 2021:
As of March 31, 2021:

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen%

Yen

54,72352,61580.2
79.3

2,323.32
2,193.61¥54,078 million¥51,033 million

2.

Cash Dividends
Annual dividends per share
Second quarter-end Third quarter-end
Fiscal year-end

First quarter-end
Yen

Yen

Fiscal year ended
March 31, 2021
20.00
Fiscal year ending
March 31, 2022
21.00
Fiscal year ending
March 31, 2022
(Forecast)
Note:
Revisions to the forecast of cash dividends most recently announced: None

3.

Total

Yen

Yen

Yen

-

22.00

42.00

-

21.00

42.00

Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (from April 1, 2021 to March
31, 2022)(Percentages indicate changes from the previous fiscal year.)Net sales
Millions of yen

Operating profit%

Millions of yen

Profit attributable toProfit per shareowners of parent

Ordinary profit
Millions of yen%

Millions of yen%

Yen

Full year
35,900 11.5
7,850 19.0
8,050
Note:
Revision to the forecast of the financial results most recently announced: Yes

%

16.3

5,750

22.6

247.07*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change inscope of consolidation): None
Newly included: -- companies (company name)
Excluded:-- companies (company name)(2) Adoption of accounting treatment 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: Yes(ii) Changes in accounting policies due to other reasons: None(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 September 30, 2021
As of March 31, 2021

(ii)

23,661,000 shares
23,661,000 shares

Number of treasury shares at the end of the period
As of September 30, 2021
As of March 31, 2021

384,584 shares
396,265 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2021
Six months ended September 30, 2020

23,269,750 shares
23,258,266 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 theCompany does not guarantee the achievement of them. Actual financial results may differ significantly from theforecasts due to various factors. For the assumptions underlying the financial results forecasts and cautions
concerning the use thereof, please refer to “(3) Explanation of Consolidated Financial Results Forecast and Other
Forward-Looking Information” in “1. Qualitative Information on Financial Results for the First Six Months of theCurrent Fiscal Year” on page 3 of the attachment.

○ Table of Contents of Attachment
1.

Qualitative Information on Financial Results for the First Six 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 ........ 3

2.

Quarterly Consolidated Financial Statements and Significant Notes Thereto .................................................... 4(1) Quarterly Consolidated Balance Sheet ....................................................................................................... 4(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
Income ........................................................................................................................................................ 6
Quarterly Consolidated Statement of Income
First six months .......................................................................................................................................... 6
Quarterly Consolidated Statement of Comprehensive Income
First six months .......................................................................................................................................... 7(3) Quarterly Consolidated Statement of Cash Flows ...................................................................................... 8(4) Notes to Quarterly Consolidated Financial Statements ............................................................................ 10(Notes on Going Concern Assumptions) .................................................................................................. 10(Notes on Substantial Changes in the Amount of Shareholders' Equity) .................................................. 10(Changes in Accounting Policies) ............................................................................................................. 10(Business Combinations, Etc.)...................................................................................................................111

1.

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

(1)

Explanation of Operating Results
In the first six months of the fiscal year under review, the outlook for the Japanese economy remained
uncertain. This was mainly due to the resurgence of COVID-19, high global resource prices and a shortage ofsemiconductor supplies, despite signs of a gradual recovery.
In the industrial disaster prevention and safety device industry to which the Group belongs, capital investmentin the semiconductor industry in East Asia (mainly Japan, China and Taiwan), our main customer, as well as
the lithium-ion battery industry in China, remained steady, and orders increased due to the trend for a recovery
in economic activities in North America. However, sufficient caution is necessary regarding the impact of a
supply shortage of semiconductor components and electronic components, and the outlook will remain
uncertain.
Under these circumstances, in addition to taking measures to prevent COVID-19, the Group has continued toreduce costs by streamlining production, thoroughly cut expenses, developed sales activities online,
aggressively invested in new product development, and enhanced its quality control and service systems.
As a result of these measures, net sales for the first six months of the fiscal year under review were 18,278
million yen (up 19.0% year-on-year), operating profit was 4,346 million yen (up 53.4% year-on-year),ordinary profit was 4,503 million yen (up 55.6% year-on-year), and profit attributable to owners of parent
was 3,167 million yen (up 58.1% year-on-year).
As the Group engages in a single segment of the manufacture and sale of various types of industrial
measurement devices and their 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 six months of the fiscal year under review were
12,752 million yen (up 19.2% year-on-year).
(ii) Portable gas detection alarm devices
Net sales of portable gas detection alarm devices for the first six months of the fiscal year under review were
4,948 million yen (up 17.2% year-on-year).
(iii)Other measurement devices
Net sales of other measurement devices for the first six months of the fiscal year under review were 577
million yen (up 32.5% year-on-year).

(2) Explanation of Financial Position(i) Assets, liabilities and net assets
At the end of the second quarter of the fiscal year under review, assets totaled 67,448 million yen, an increaseof 3,122 million yen (up 4.9%) compared with the end of the previous fiscal year. Current assets increased
2,912 million yen from the end of the previous fiscal year to 38,388 million yen. This was mainly due to a
1,004 million yen increase in cash and deposits and a 1,566 million yen increase in securities. Non-current
assets grew 210 million yen from the end of the previous fiscal year to 29,060 million yen. This was mainly
due to a 599 million yen increase in investment securities despite a 138 million yen decrease in leased assets
included in property, plant and equipment and others and a 102 million yen decrease in construction inprogress.
At the end of the second quarter of the fiscal year under review, liabilities totaled 12,725 million yen, an
increase of 1,014 million yen (up 8.7%) compared with the end of the previous fiscal year. Current liabilities
grew 1,142 million yen from the end of the previous fiscal year to 9,718 million yen. This was mainly due toa 456 million yen increase in notes and accounts payable - trade, a 395 million yen increase in income taxes
payable, and a 348 million yen increase in accrued consumption taxes included in others under current
liabilities. Non-current liabilities fell 127 million yen from the end of the previous fiscal year to 3,006 million

2yen. This was mainly due to a 174 million yen decrease in long-term borrowings and a 150 million yen
decrease in long-term lease obligations included in others under non-current liabilities, despite a 197 million
yen increase in deferred tax liabilities included in others under non-current liabilities.
At the end of the second quarter of the fiscal year under review, net assets totaled 54,723 million yen, an
increase of 2,108 million yen (up 4.0%) compared with the end of the previous fiscal year. This was mainly
due to a 2,655 million yen increase in retained earnings as a result of the recording of a profit attributable toowners of parent of 3,167 million yen and dividends of surplus of 511 million yen despite a 425 million yen
decrease in capital surplus and a 936 million yen decrease in non-controlling interests caused by the additional
acquisition of shares of R K Instruments (S) Pte Ltd., a consolidated subsidiary in Singapore.
(ii) Cash flows
At the end of the second quarter of the fiscal year under review, cash and cash equivalents increased 1,221
million yen from the end of the previous fiscal year to 15,153 million yen.
Cash flows and factors affecting cash flows in the first six months of the fiscal year under review are as
follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 4,833 million yen, an increase of 3,091 million yen yearon-year, mainly due to recording a profit before income taxes of 4,503 million yen and depreciation of
844 million yen, and an increase in accrued consumption taxes of 706 million yen. This was despite anincrease in inventories of 752 million yen and income taxes paid of 936 million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 1,772 million yen, a decrease of 361 million yen year-on-year,
mainly due to purchase of securities of 1,321 million yen, purchase of property, plant and equipment of
588 million yen and payments into time deposits of 356 million yen. This was despite recording proceedsfrom sale of securities of 140 million yen and proceeds from withdrawal of time deposits of 332 million
yen.
(Cash flows from financing activities)
Net cash used in financing activities was 2,143 million yen, an increase of 153 million yen year-on-year,
mainly due to dividends paid of 512 million yen, repayments of long-term borrowings of 194 million
yen and purchase of shares of subsidiaries not resulting in a change in the scope of consolidation of 1,185
million yen.

(3)

Explanation of Consolidated Financial Results Forecasts and Other Forward-Looking
Information
The full-year financial results forecast was revised from the forecast announced on May 11, 2021.
For details, please refer to the “Notice of Difference between Forecast and Actual Financial Results for theFirst Six Months of the Fiscal Year Ending March 31, 2022 and Revision of the Full-Year Financial Results
Forecast” announced today (November 11, 2021).

3

2.

Quarterly Consolidated Financial Statements and Significant Notes Thereto(1)

Quarterly Consolidated Balance Sheet(Unit: Thousand yen)
As of the end of the previous fiscal As of the end of the second quarteryear
of the fiscal year under review(March 31, 2021)(September 30, 2021)

AssetsCurrent assets
Cash and deposits

9,631,315

10,635,372

Notes and accounts receivable - trade

9,894,686

9,785,207

2,803,268

3,323,048

Electronically recorded monetary claims operating
Securities

6,294,967

7,861,878

Merchandise and finished goods

2,538,714

2,400,978

Work in process

1,869,207

2,314,730

998,259

1,488,048

1,450,726

582,825

Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets(4,853)(3,501)35,476,292

38,388,589

11,653,372

11,565,545

Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress

326,658

327,097

4,075,901

4,077,821

155,430

52,796

Other, net

1,935,155

1,803,715

Total property, plant and equipment

18,146,517

17,826,976

Goodwill

676,468

646,687

Customer-related assets

876,699865,220

Other

596,305

515,484

2,149,473

2,027,392

Investment securities

5,514,420

6,114,028

Retirement benefit asset

1,672,351

1,739,447

Other

1,370,978

1,356,097

Intangible assets

Total intangible assets
Investments and other assets

Allowance for doubtful accounts(4,000)(3,750)Total investments and other assets

8,553,749

9,205,824

28,849,741

29,060,192

64,326,034

67,448,782

Total non-current assets
Total assets

4

(Unit: Thousand yen)
As of the end of the previous fiscal As of the end of the second quarteryear
of the fiscal year under review(March 31, 2021)(September 30, 2021)
Liabilities
Current liabilities
Notes and accounts payable - trade

3,206,800

3,662,848

Short-term borrowings

995,000

975,000

Income taxes payable

877,653

1,273,553

Provision for bonuses

873,596881,696

Provision for product warranties

130,855

94,850

Provision for loss on orders received

609

1,041

22,291-Other

2,469,731

2,829,810

Total current liabilities

8,576,538

9,718,801

Bonds payable

300,000

300,000

Long-term borrowings

850,580

676,460

Asset retirement obligations

Non-current liabilities

Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

11,094

11,094

1,972,505

2,018,994

3,134,179

3,006,548

11,710,718

12,725,350

2,565,500

2,565,500

Net assets
Shareholders' equity
Share capital
Capital surplus

2,294,089

1,868,989

Retained earnings

44,641,217

47,296,706

Treasury shares(232,906)(226,109)

Total shareholders' equity

49,267,900

51,505,086

Valuation difference on available-for-sale securities

1,921,384

2,374,466

Foreign currency translation adjustment(155,642)

199,019

Total accumulated other comprehensive income

Accumulated other comprehensive income

1,765,742

2,573,485

Non-controlling interests

1,581,673

644,859

Total net assets

52,615,315

54,723,431

64,326,034

67,448,782

Total liabilities and net assets

5

(2)

Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income
Quarterly Consolidated Statement of Income
First six months(Unit: Thousand yen)First six months of the previous
fiscal year
(From April 1, 2020
to September 30, 2020)

First six months of the fiscal year
under review(From April 1, 2021
to September 30, 2021)

Net sales

15,357,389

18,278,841

Cost of sales

8,121,518

9,127,858

Gross profit

7,235,871

9,150,982

Selling, general and administrative expenses

4,401,743

4,804,198

Operating profit

2,834,127

4,346,783

Interest income

28,614

21,657

Dividend income

45,28356,577

Foreign exchange gains

31,96047,617

Insurance claim and dividend income

3,645

9,381

Non-operating income

Gain on sale of securities-

460

Gain on valuation of securities

-

9,682

Miscellaneous income

50,95043,249Total non-operating income

160,454

188,627

Interest expenses

15,13924,547

Loss on retirement of non-current assets

13,2994,117

Loss on sale of securities

50,742-

Loss on valuation of securities

18,110-Non-operating expenses

Miscellaneous losses

3,381

3,397

100,673

32,062

2,893,908

4,503,349

Gain on sale of non-current assets

24-

Total extraordinary income

24

-

172

258

Total non-operating expenses
Ordinary profit
Extraordinary income

Extraordinary losses
Loss on sale of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current

172

258

2,893,761

4,503,090

762,840

1,277,940

Income taxes - deferred

91,268(2,749)Total income taxes

854,108

1,275,191

2,039,652

3,227,899

ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

636,89760,5862,002,754

3,167,312

Quarterly Consolidated Statement of Comprehensive Income
First six months(Unit: Thousand yen)

ProfitFirst six months of the previous
First six months of the fiscal year
fiscal year
under review(From April 1, 2020
(From April 1, 2021
to September 30, 2020)
to September 30, 2021)
2,039,652
3,227,899

Other comprehensive income
Valuation difference on available-for-sale securities

211,306(163,638)

Foreign currency translation adjustment
Total other comprehensive income

451,352446,661

47,667

898,013Comprehensive income

2,087,320

4,125,913(attributable to)Comprehensive income attributable to owners of parent

2,121,155

3,975,056(33,835)

150,856

Comprehensive income attributable to non-controllinginterests7

(3)Quarterly Consolidated Statement of Cash Flows(Unit: Thousand yen)First six months of the previous
fiscal year
(From April 1, 2020
to September 30, 2020)

First six months of the fiscal year
under review(From April 1, 2021
to September 30, 2021)

Cash flows from operating activities
Profit before income taxes

2,893,761

4,503,090

Depreciation

630,769

844,368

Amortization of goodwill

71,32273,808

Increase (decrease) in allowance for doubtful accounts(2,576)(1,920)

Increase (decrease) in provision for bonuses

12,698

8,100

Increase (decrease) in provision for product warranties(43,996)(36,005)

Decrease (increase) in retirement benefit asset(82,602)(67,096)

Increase (decrease) in provision for loss on order
received
Interest and dividend income-

432(73,898)(78,235)

Insurance claim income(3,645)(9,381)

Interest expenses

15,13924,547

Foreign exchange losses (gains)

39,840(175,142)

147

258

Loss (gain) on sale of non-current assets
Loss on retirement of non-current assets

13,2994,117

Decrease (increase) in trade receivables

423,613(302,434)

Decrease (increase) in inventories(480,384)(752,043)

Increase (decrease) in trade payables

524,448

387,653

Increase (decrease) in accrued consumption taxes(629,554)

706,186

50,742

(460)

Other

(520,018)

566,950

Subtotal

Loss (gain) on sale of securities

2,839,105

5,696,793

Interest and dividends received

74,382

78,685Interest paid

(15,139)(24,547)

9,672

19,799

Income tax paid

(1,165,654)(936,918)

Cash flows from operating activities

1,742,365

4,833,811

Proceeds from insurance income8

(Unit: Thousand yen)First six months of the previous
fiscal year
(From April 1, 2020
to September 30, 2020)

First six months of the fiscal year
under review(From April 1, 2021
to September 30, 2021)

Cash flows from investing activities
Purchase of securities(713,158)(1,321,208)

Proceeds from sale of securities

611,896

140,936

Proceeds from redemption of securities
Payments into time deposits

19,32741,090(294,840)(356,400)

Proceeds from withdrawal of time deposits

262,080

332,640

Purchase of property, plant and equipment(1,933,846)(588,232)

Proceeds from sale of property, plant and equipment

49

2,741

Payments for retirement of property, plant andequipment-(33,553)

Purchase of intangible assets(83,021)(23,154)

Purchase of investment securities(203,980)(2,441)

Proceeds from redemption of investment securities

201,395

41,090-(6,282)(2,134,098)(1,772,774)

Repayments of long-term borrowings(194,120)(194,120)

Repayments of finance lease obligations(134,323)(218,280)

Payments for asset retirement obligations
Cash flows from investing activities
Cash flows from financing activities

Net decrease (increase) in treasury shares

(290)

(85)

Dividends paid

(511,124)(512,521)

Dividends paid to non-controlling interests(34,763)(33,479)

Purchase of shares of subsidiaries not resulting inchange in scope of consolidation(1,114,995)(1,185,072)

Cash flows from financing activities(1,989,617)(2,143,560)(79,005)

303,767

Net increase (decrease) in cash and cash equivalents(2,460,356)

1,221,244

Cash and cash equivalents at beginning of period

15,016,366

13,932,676

Cash and cash equivalents at end of period

12,556,009

15,153,921

Effect of exchange rate change on cash and cash
equivalents

9

(4)

Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.

(Notes on Substantial Changes in the Amount of Shareholders' Equity)

During the second quarter of the fiscal year under review, capital surplus decreased by 425,100 thousand yen
mainly due to the additional acquisition of shares of R K Instruments (S) Pte Ltd., a consolidated subsidiaryof the Company, from a non-controlling shareholder. As a result, capital surplus at the end of the second
quarter of the fiscal year under review was 1,868,989 thousand yen.

(Changes in Accounting Policies)(Adoption of the Accounting Standard for Revenue Recognition, Etc.)
The Company has adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020; hereinafter referred to as the “Revenue Recognition Accounting Standard”), etc. from the
beginning of the first quarter of the fiscal year under review, according to which revenue is recognized whencontrol of promised goods or services is transferred to customers, at the amounts expected to be received in
exchange for those goods or services.
While the adoption of the Revenue Recognition Accounting Standard, etc. is in accordance with thetransitional treatment specified in the proviso of Paragraph 84 of the Revenue Recognition AccountingStandard, this has no impact on the profit and loss during the first six months of the fiscal year under review
and the retained earnings at the beginning of the period.
Additionally, in accordance with the transitional treatment set forth in Paragraph 28-15 of the “AccountingStandard for Quarterly Financial Reporting” (ASBJ Statement No. 12, March 31, 2020), disaggregatedinformation of revenue from contracts with customers for the first six months of the previous fiscal year is
not stated.
(Adoption of the Accounting Standard for Fair Value Measurement, Etc.)
The Company has adopted the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.
30, July 4, 2019; hereinafter referred to as the “Fair Value Measurement Accounting Standard”), etc. from the
beginning of the first quarter of the fiscal year under review, adopting new accounting policies defined in the
Fair Value Measurement Accounting Standard over the future, according to the transitional treatment specified
in Paragraph 19 of the Fair Value Measurement Accounting Standard and in Paragraph 44-2 of the“Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). This has no impact
on the quarterly consolidated financial statements.

10(Business Combinations, Etc.)

Transaction under common control, etc.
Additional acquisition of shares of a subsidiary
1. Outline of the Transaction(1) Name of the party to the business combination and its business
Name of the party to the business combination: R K INSTRUMENTS (S) PTE LTD.
Business: Sales of gas detection alarm devices and after-sales maintenance services(2) Date of the business combination
July 1, 2021
(3) Legal form of the business combination
Acquisition of shares from a non-controlling shareholder(4) Name of company after the business combination
No change(5) Other matters concerning the outline of the transaction
The Company acquired shares of R K Instruments (S) Pte Ltd., a consolidated subsidiary, which engages
in sales of gas detection alarm devices and after-sales maintenance services in Singapore, to increase its
stake in the subsidiary. After the acquisition of shares, the Company will hold 100.0% of the subsidiary’s
voting rights.
2. Outline of the Accounting Implemented
In accordance with the “Accounting Standard for Business Combinations” (ASBJ Statement No. 21, January
16, 2019) and “Implementation Guidance on Accounting Standard for Business Combinations andAccounting Standard for Business Divestitures” (ASBJ Guidance No. 10, January 16, 2019), the Company
handles this business combination as a transaction with a non-controlling shareholder as part of transactions
under common control, etc.
3. Matters Concerning the Additional Acquisition of Shares of a Subsidiary
Consideration for the acquisition and its breakdown by type
Consideration for the acquisition

Cash 1,481,848 thousand yen

Acquisition cost

1,481,848 thousand yen

4. Matters Concerning Changes in the Company’s Interest Related to the Transaction with a Non-Controlling
Shareholder(1) Main factors of changes in capital surplus
Additional acquisition of shares of a subsidiary(2) Amount of decrease in capital surplus due to the transaction with a non-controlling shareholder
426,307 thousand yen

11