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 9, 2023

Consolidated Financial Results for the Six Months Ended September 30, 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:
November 9, 2023
Scheduled date to commence dividend payments:
December 7, 2023
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 Six Months Ended September 30, 2023 (from April 1, 2023 to September 30, 2023)
Consolidated Operating Results (Cumulative)(% indicates year-on-year changes)
Net sales

Operating profit

Millions of Yen

Six months ended
September 30, 2023
Six months ended
September 30, 2022
Note: Comprehensive income

22,675%

Millions of Yen%

Millions of Yen%

Millions of Yen

%

1.2

5,847

(8.8)

6,456

(2.7)

4,548

0.0

4,546

43.5

22,404
22.6
6,408
47.4
For the six months ended September 30, 2023
For the six months ended September 30, 2022

Earnings per share-BasicSix months ended
September 30, 2023
September 30, 2022
(2)

6,633
47.3
6,403 million Yen [14.1%]
5,610 million Yen [36.0%]

Earnings per share-DilutedYen

Yen

195.33
195.29-Consolidated Financial Position
Total assets

Net assets

Millions of Yen

As of September 30,
2023
As of March 31, 2023
Reference: Equity
2.

Net profit attributable toowners of parent

Ordinary profit

Equity-to-asset ratio

Millions of Yen

Net assets per share%

Yen

85,284
68,86780.7
2,957.27
79,746
63,38379.5
2,722.26
As of September 30, 2023 68,867 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 September 30, 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 September 30, 2023
373,639 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)
Six months ended September 30, 2023
23,285,113 shares
Six months ended September 30, 2022
23,279,379 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 Six Months of the Current Fiscal Year” on page 3 of the attachment.

○ Table of Contents of Attachment

1.

2.

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

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 ............................................................................................................ 6
First six months .................................................................................................................................................. 6
Quarterly Consolidated Statement of Comprehensive Income .................................................................................. 7
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 When There is Significant Changes in Amounts of Shareholders’ Equity).................................................. 10(Changes in Accounting Policies) ............................................................................................................................ 10

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 Japanese economy recovered moderately as the impact of COVID-19
weakened further after it was reclassified into a Category 5 infectious disease.
On the other hand, the economic outlook remains uncertain due to the protracted situation in Russia and Ukraine, sharp
fluctuations in foreign exchange rates, and rising prices for raw materials and energy.
In the industrial disaster prevention and safety device industry to which the Group belongs, capital investment by our main
customers, such as the semiconductor industry, remained at a certain level. However, sufficient caution is necessary regarding
the impact of a supply shortage of components, rising inflation, and other factors, and the outlook will remain uncertain.
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 six months of the fiscal year under review were 22,675 million Yen (up1.2% year-on-year), operating profit was 5,847 million Yen (down 8.8% year-on-year), ordinary profit came to 6,456 million
Yen (down 2.7% year-on-year), and net profit attributable to owners of parent was 4,548 million Yen (up 0.0% year-on-year).
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 six months of the fiscal year under review were 15,245 million
Yen (down 0.6% 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 6,889
million Yen (up 6.4% 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 540 million Yen(down 8.2% 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 85,284 million Yen, an increase of 5,537
million Yen (up 6.9%) compared with the end of the previous fiscal year. Current assets increased 4,060 million Yen fromthe end of the previous fiscal year to 55,361 million Yen. This was mainly due to a 2,051 million Yen increase in raw
materials and supplies, and a 1,052 million Yen increase in notes and accounts receivable–trade. Non-current assets
increased 1,477 million Yen from the end of the previous fiscal year to 29,923 million Yen. This was mainly due to a
1,563 million Yen increase in investment securities, a 253 million Yen increase in software in progress included in other inintangible assets, and a 191 million Yen increase in buildings and structures, despite a 325 million Yen decrease inconstruction in progress.
At the end of the second quarter of the fiscal year under review, liabilities totaled 16,417 million Yen, an increase of 54
million Yen (up 0.3%) compared with the end of the previous fiscal year. Current liabilities fell 481 million Yen from theend of the previous fiscal year to 13,542 million Yen. This was mainly due to a 616 million Yen decrease in accounts
payable included in other in current liabilities despite a 284 million Yen increase in electronically recorded obligations operating. Non-current liabilities grew 535 million Yen from the end of the previous fiscal year to 2,875 million Yen. Thiswas mainly due to a 792 million Yen increase in deferred tax liabilities included in other in non-current liabilities despite a
174 million Yen decrease in long-term borrowings.
At the end of the second quarter of the fiscal year under review, net assets totaled 68,867 million Yen, an increase of 5,483
million Yen (up 8.7%) compared with the end of the previous fiscal year. This was mainly due to a 3,617 million Yen
increase in retained earnings as a result of recording 4,548 million Yen in net profit attributable to owners of parent anddividend payments of 931 million Yen.
(ii) Cash flows
At the end of the second quarter of the fiscal year under review, cash and cash equivalents totaled 17,901 million Yen, adecrease of 1,011 million Yen compared with the end of the previous fiscal year.
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 505 million Yen (compared with 353 million Yen used in the same period of

the previous fiscal year), mainly due to an increase in inventories of 3,299 million Yen and income taxes paid of 1,774
million Yen, while recording profit before income taxes of 6,456 million Yen and depreciation of 865 million Yen.
(Cash flows from investing activities)
Net cash used in investing activities was 878 million Yen, an increase of 797 million Yen year-on-year, mainly due to 841
million Yen in payments into time deposits, 774 million Yen in purchase of securities, 604 million Yen in purchase ofinvestment securities and 342 million Yen in purchase of property, plant and equipment. This was despite 1,047 million
Yen in proceeds from sale of securities, 500 million Yen in proceeds from redemption of securities, and 398 million Yen inproceeds from withdrawal of time deposits.
(Cash flows from financing activities)
Net cash used in financing activities was 1,378 million Yen, a decrease of 1,587 million Yen year-on-year, mainly due todividends paid of 929 million Yen.

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

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 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 assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

As of the end of the second
quarter of the fiscal year underreview(September 30, 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

13,472,647
11,491,178
3,834,462
7,996,952
4,296,658
6,731,431
6,583,998
959,147(5,131)
55,361,344

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

11,017,166
373,176
4,135,501
84,1931,500,542
17,110,580

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

460,122
791,011
664,432
1,915,566

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

7,596,554
1,857,883
1,445,674(2,900)10,897,212
29,923,359
85,284,703

(Unit: Thousand Yen)
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 adjustments
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

As of the end of the second
quarter of the fiscal year underreview(September 30, 2023)

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

5,380,899
1,131,906
975,000
1,640,424
992,688
109,791
17,7703,293,714
13,542,195

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

676,460
11,172
2,187,767
2,875,399
16,417,594

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

2,565,500
1,104,561
60,243,986(220,908)
63,693,139

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

2,972,197
2,201,771
5,173,968
68,867,108
85,284,703

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income
Quarterly Consolidated Statement of Income
First six months(Unit: Thousand Yen)

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
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 valuation of investment securities
Loss on disposal of non-current assets
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 six months of the previous
fiscal year
(From April 1, 2022 toSeptember 30, 2022)
22,404,903
10,426,788
11,978,115
5,569,695
6,408,419

First six months of the fiscal year
under review(From April 1, 2023 to
September 30, 2023)
22,675,492
10,945,930
11,729,562
5,882,151
5,847,411

32,28560,895352,391
8,237
19,13342,149515,093

50,83971,045
358,744
30,876
241,654
39,162
792,322

22,1260
17,430243,2996,990
289,847
6,633,665

20,877561
161,488319
183,247
6,456,486

2,559
2,559

5,550
5,550

1,141
26,16079,528102,000
208,830
6,427,394
1,759,373
128,647
1,888,020
4,539,373(6,840)4,546,213

5,666
5,666
6,456,370
1,584,950
323,064
1,908,015
4,548,355
4,548,355

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

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

First six months of the previous First six months of the fiscal year
fiscal year
under review(From April 1, 2022 to(From April 1, 2023 to
September 30, 2022)
September 30, 2023)
4,539,373
4,548,355(147,443)
1,218,144
1,070,700
5,610,074

990,052
865,1111,855,163
6,403,518

5,489,350

6,403,518

120,723-

(3) Quarterly Consolidated Statement of Cash Flows(Unit: Thousand Yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Impairment losses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for product warranties
Decrease (increase) in retirement benefit asset
Increase (decrease ) in provision for loss on orders
received
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
Loss (gain) on disposal of non-current assets
Decrease (increase) in trade receivables
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
SubtotalInterest and dividends received
Interest paid
Proceeds from insurance income
Income taxes paid
Net cash provided by (used in) operating activities

First six months of the previous
fiscal year
(From April 1, 2022 toSeptember 30, 2022)

First six months of the fiscal year
under review(From April 1, 2023 to
September 30, 2023)

6,427,394
852,80990,484
26,160629
375,391(13,347)(37,867)

6,456,370
865,973
90,712
419
4,629
3,531
(30,685)

7,023(93,181)(8,237)
22,126(767,688)(1,417)0
102,000(1,964,992)(2,162,407)(842,025)(470,044)(1,703)
243,299
79,528(492,011)
1,371,925
94,450(22,126)
19,135(1,816,714)(353,330)(134,432)(121,885)(30,876)
20,877(384,827)116
561(915,152)(3,299,212)
233,848
92,362
161,488(241,654)(739,737)
2,032,426
123,426(20,877)
145,418(1,774,507)
505,885

(Unit: Thousand Yen)

Cash flows from investing activities
Purchase of securities
Proceeds from sale of securities
Proceeds from redemption 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 andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from collection of loans receivable
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of long-term borrowings
Repayments of finance lease liabilities
Net decrease (increase) in treasury shares
Dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period

First six months of the previous
fiscal year
(From April 1, 2022 toSeptember 30, 2022)

First six months of the fiscal year
under review(From April 1, 2023 to
September 30, 2023)(792,292)
263,399
1,049,050(414,000)
414,000(363,014)
8,869(774,407)
1,047,744
500,000(841,700)
398,700(342,035)
24,799(102,000)(36,170)(109,531)(81,690)(323,412)(604,883)
36,313(878,881)(194,120)(229,860)(349)(906,169)(25,701)(194,120)(253,570)(694)(929,627)-(1,608,888)(2,965,090)(1,378,012)

1,174,065(2,226,046)
17,989,503

739,641(1,011,366)
18,913,037

238,914
16,002,371

17,901,670

(4) 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 profits as
the revenues and expenses of the subsidiaries had grown in importance and to more aptly reflect their revenues andexpenses occurring throughout each accounting period on our consolidated financial statements.
The impact of this change was negligible.