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 10, 2022

Consolidated Financial Results
for the Nine Months Ended December 31, 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:
February 10, 2022
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.

Consolidated Financial Results for the Nine Months Ended December 31, 2021 (from April 1, 2021 to December
31, 2021)(1) Consolidated Operating Results (Cumulative)(Percentages indicate year-on-year changes.)
Net sales

Operating profit

Profit attributable toowners of parent

Ordinary profit

Nine months ended
Millions of yen%
Millions of yen%
Millions of yen%
Millions of yen
December 31, 2021
27,909
19.4
6,710
55.6
6,876
55.9
4,827
December 31, 2020
23,381
(2.0)
4,314
(8.0)
4,410
(10.8)
3,064
Note: Comprehensive income
For the nine months ended December 31, 2021: ¥5,745 million[66.9%]For the nine months ended December 31, 2020: ¥3,442 million[(9.9)%]

Nine months ended
December 31, 2021
December 31, 2020

Basic earnings
per share%57.5(7.1)

Diluted earnings pershare
Yen

Yen

207.42131.74-(2) Consolidated Financial Position
Total assets
As ofMillions of yen
December 31, 2021
68,871March 31, 2021
64,326
Reference: Equity
As of December 31, 2021:
As of March 31, 2021:

Net assets

Equity-to-asset ratio

Millions of yen

55,861
52,615¥55,200 million¥51,033 million

Net assets per share
%

80.1
79.3

Yen

2,371.51
2,193.61

2.

Cash Dividends
First quarter-end

Yen

Annual dividends per share
Second quarter-end Third quarter-end
Fiscal year-endYenFiscal 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 March31, 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

Full year
35,900 11.5
7,850 19.0
8,050
Note: Revision to the forecast of the financial results most recently announced: None%

16.3

Millions of yen

5,750%

22.6

Yen247.07

*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 December 31, 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 December 31, 2021
As of March 31, 2021

384,642 shares
396,265 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2021
Nine months ended December 31, 2020

23,271,742 shares
23,260,230 shares*

Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or anaudit 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 the achievement of them. Actual financial results may differ significantly from the forecasts 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 Nine Months of the Current Fiscal Year”
on page 3 of the attachment.

○ Table of Contents of Attachment
1.

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 ........ 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 nine months ........................................................................................................................................ 6
Quarterly Consolidated Statement of Comprehensive Income
First nine months ........................................................................................................................................ 7(3) Notes to Quarterly Consolidated Financial Statements .............................................................................. 8(Notes on Going Concern Assumptions) .................................................................................................... 8(Notes on Substantial Changes in the Amount of Shareholders' Equity) .................................................... 8(Changes in Accounting Policies) ............................................................................................................... 81

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 outlook for the Japanese economy remained
uncertain. This was mainly due to the emergence of new variants of COVID-19, soaring crude oil prices, anda shortage of semiconductor 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 were strong in North America. However,
sufficient caution is necessary regarding the impact of a supply shortage of components, such as
semiconductors, 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 nine months of the fiscal year under review were 27,909
million yen (up 19.4% year-on-year), operating profit was 6,710 million yen (up 55.6% year-on-year),ordinary profit was 6,876 million yen (up 55.9% year-on-year), and profit attributable to owners of parent
was 4,827 million yen (up 57.5% 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 nine months of the fiscal year under review were
19,493 million yen (up 20.0% 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 were7,551 million yen (up 17.4% 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 864
million yen (up 22.8% year-on-year).

(2)

Explanation of Financial Position
At the end of the third quarter of the fiscal year under review, assets totaled 68,871 million yen, an increaseof 4,545 million yen (up 7.1%) compared with the end of the previous fiscal year. Current assets increased
4,806 million yen from the end of the previous fiscal year to 40,282 million yen. This was mainly due to a
1,041 million yen increase in electronically recorded monetary claims - operating, a 2,646 million yen increase
in securities, an 891 million yen increase in work in progress, and an 859 million yen increase in raw materials
and supplies despite a 600 million yen decrease in accounts receivable - other included in other under current
assets. Non-current assets decreased 260 million yen from the end of the previous fiscal year to 28,588 million
yen. This was mainly due to a 229 million yen decrease in buildings and structures, net despite a 434 million
yen increase in investment securities.
At the end of the third quarter of the fiscal year under review, liabilities totaled 13,009 million yen, an increaseof 1,298 million yen (up 11.1%) compared with the end of the previous fiscal year. Current liabilities grew
1,456 million yen from the end of the previous fiscal year to 10,033 million yen. This was mainly due to a
1,104 million yen increase in notes and accounts payable - trade and a 457 million yen increase in accrued
consumption taxes included in other under current liabilities despite a 503 million yen decrease in accounts
payable - other included in other under current liabilities. Non-current liabilities fell 157 million yen from theend of the previous fiscal year to 2,976 million yen.
2

At the end of the third quarter of the fiscal year under review, net assets totaled 55,861 million yen, an increaseof 3,246 million yen (up 6.2%) compared with the end of the previous fiscal year. This was mainly due to a
3,826 million yen increase in retained earnings as a result of the recording of a profit attributable to ownersof parent of 4,827 million yen and dividends of surplus of 1,000 million yen despite a 416 million yen decreasein capital surplus and a 920 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.

(3)

Explanation of Consolidated Financial Results Forecasts and Other Forward-Looking
Information
There is no change to the full-year financial results forecast announced in the consolidated financial
statements for the six months ended September 30, 2021 on 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 third quarter ofyear
the fiscal year under review(March 31, 2021)(December 31, 2021)

AssetsCurrent assets
Cash and deposits

9,631,315

9,606,118

Notes and accounts receivable - trade

9,894,686

10,337,715

2,803,268

3,844,962

Electronically recorded monetary claims operating
Securities

6,294,967

8,941,394

Merchandise and finished goods

2,538,714

2,427,186

Work in process1,869,207

2,761,002

998,259

1,858,124

1,450,726

509,457

Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets(4,853)(3,548)35,476,292

40,282,415

11,653,372

11,423,838

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

326,658

334,908

4,075,901

4,078,232

155,430

39,993

Other, net

1,935,155

1,727,451

Total property, plant and equipment

18,146,517

17,604,424

Goodwill

676,468

615,606Customer-related assets

876,699

837,674

Other

596,305

479,071

2,149,473

1,932,352

Investment securities

5,514,420

5,949,129

Retirement benefit asset

1,672,351

1,762,376

Other1,370,9781,344,194

Intangible assets

Total intangible assets
Investments and other assets

Allowance for doubtful accounts(4,000)(3,500)Total investments and other assets

8,553,749

9,052,200

28,849,741

28,588,977

64,326,034

68,871,393

Total non-current assets
Total assets

4

(Unit: Thousand yen)
As of the end of the previous fiscal As of the end of the third quarter ofyear
the fiscal year under review(March 31, 2021)(December 31, 2021)
Liabilities
Current liabilities
Notes and accounts payable - trade

3,206,800

4,310,832

Short-term borrowings

995,000

1,215,000

Income taxes payable

877,653925,837

Provision for bonuses

873,596482,847

Provision for product warranties

130,855

87,237609

1,041

22,291-Provision for loss on orders received
Asset retirement obligations
Other

2,469,731

3,010,462

Total current liabilities

8,576,538

10,033,258

Bonds payable

300,000

300,000

Long-term borrowings

850,580

594,400

Non-current liabilities

Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

11,094

11,094

1,972,505

2,070,902

3,134,179

2,976,397

11,710,718

13,009,655

2,565,500

2,565,500

Net assets
Shareholders' equity
Share capital
Capital surplus

2,294,089

1,877,091

Retained earnings

44,641,217

48,467,623

Treasury shares(232,906)(226,384)

Total shareholders' equity

49,267,900

52,683,829

Valuation difference on available-for-sale securities1,921,384

2,259,967

Foreign currency translation adjustment(155,642)

256,411

Total accumulated other comprehensive income

1,765,742

2,516,379

Accumulated other comprehensive income

Non-controlling interests

1,581,673

661,529

Total net assets

52,615,315

55,861,737

64,326,034

68,871,393

Total liabilities and net assets

5

(2)

Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income
Quarterly Consolidated Statement of Income
First nine months(Unit: Thousand yen)First nine months of the previousfiscal year
(From April 1, 2020
to December 31, 2020)

First nine months of the fiscal year
under review(From April 1, 2021
to December 31, 2021)

Net sales

23,381,404

27,909,322

Cost of sales

12,408,110

13,991,487

Gross profit

10,973,294

13,917,835

Selling, general and administrative expenses

6,659,241

7,207,063

Operating profit

4,314,053

6,710,772

Interest income

39,81333,156

Dividend income

79,98099,257

Foreign exchange gains

12,232

50,698Insurance claim and dividend income

4,285

9,381

Non-operating income

Gain on sale of securities-115Gain on valuation of securities

-

3,496

Miscellaneous income

69,76254,268

Total non-operating income

206,074

250,373

Interest expenses

23,09635,636

Loss on retirement of non-current assets

Non-operating expenses
16,8884,892

Compensation expenses-40,591

Loss on sale of securities

50,554-

Loss on valuation of securities

15,605-

Miscellaneous losses

3,817

3,554

Total non-operating expenses

109,962

84,6744,410,164

6,876,471

Gain on sale of non-current assets

301

386

Total extraordinary income

301386

Ordinary profitExtraordinary income

Extraordinary losses
Loss on sale of non-current assets

172

262

Loss on valuation of golf club membership

2,590

-

Loss on sales of golf club memberships

1,400

-

Total extraordinary losses

4,162

262

Profit before income taxes

4,406,303

6,876,595

Income taxes - current

1,040,914

1,827,101

Income taxes - deferred

244,428

152,616

Total income taxes

1,285,343

1,979,718

Profit3,120,960

4,896,877

56,676

69,842

3,064,283

4,827,034

Profit attributable to non-controlling interests
Profit attributable to owners of parent6Quarterly Consolidated Statement of Comprehensive Income
First nine months

ProfitFirst nine months of the previous
fiscal year
(From April 1, 2020
to December 31, 2020)

Other 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

7(Unit: Thousand yen)First nine months of the fiscal year
under review(From April 1, 2021
to December 31, 2021)

3,120,960

4,896,877

532,053(210,841)

336,853
511,466

321,212848,320

3,442,172

5,745,197

3,466,155

5,577,671(23,982)

167,526

(3)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 third quarter of the fiscal year under review was 1,877,091
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 nine 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 nine months of the previous fiscal year isnot 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 thebeginning of the first quarter of the fiscal year under review, adopting new accounting policies defined in theFair 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.

8