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.

May 12, 2022

Consolidated Financial Results for the Fiscal Year Ended March 31, 2022
[Under Japanese GAAP]
Company name:
RIKEN KEIKI Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
7734
URL:
http://www.rikenkeiki.co.jp/
Representative:
Junichi Koyano, President
Inquiries:
Takuro Maeda, General Manager, Accounting Department, Corporate Administration Division
Telephone:+81-3-3966-1128
Scheduled date of the annual general meeting of shareholders: June 28, 2022
Scheduled date to commence dividend payments:
June 8, 2022
Scheduled date to file annual securities report:
June 28, 2022
Preparation of supplementary materials on financial results:
None
Holding of financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated Financial Results for the Fiscal year Ended March 31, 2022 (from April 1, 2021 to March 31,
2022)(1) Consolidated Operating Results(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Net profit attributable toowners of parent

Ordinary profit

Fiscal year ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

March 31, 2022

37,363

16.0

8,402

27.4

8,819

27.4

5,963

27.1

March 31, 2021

32,209

0.1

6,598

6.5

6,923

7.1

4,691

8.0

Note: Comprehensive income

For the fiscal year ended March 31, 2022: ¥6,734 million [32.0 %]For the fiscal year ended March 31, 2021: ¥5,102 million [16.1 %]Earnings per share- Basic

Earnings per share- Diluted

Fiscal year ended

Yen

March 31, 2022

256.26-

March 31, 2021

201.71-

Reference:

Net profit
attributable toowners ofparent/equity

Yen

Investment profit (loss) under the equity method

Ordinary profit/total Operating profit/net
assets
sales
%

%

11.1

13.0

9.5

11.1

For the fiscal year ended March 31, 2022:
For the fiscal year ended March 31, 2021:

%

22.5
20.5
¥ - million¥ - million(2) Consolidated Financial Position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

March 31, 2022

71,60656,85878.4

2,412.75

March 31, 2021

64,326

52,61579.3

2,193.61

Reference: Equity
As of March 31, 2022: ¥56,160 million
As of March 31, 2021: ¥51,033 million

(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodFiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2022

9,034

(2,565)(2,953)

17,989March 31, 2021

4,085

(2,756)(2,472)

13,932

2. Cash Dividends
Annual dividends per share
First
SecondThird
quarter-end quarter-end quarter-end
Yen

Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2022

Yen

Fiscalyear-end

Yen

Yen

Total

Total amount
Ratio of
Dividendof cashdividends topayout ratio
dividends
net assets(Consolidated)(Annual)(Consolidated)

Yen Millions of yen

%

%

-

20.00

-

22.00

42.00

977

20.8

2.0

-

21.00

-

39.00

60.00

1,396

23.4

2.6

Fiscal year ending
March 31, 2023
22.0
(Forecast)
30.00
30.00
60.00
Note: The year-end dividends for the fiscal year ended March 31, 2022 were revised to ¥39 from ¥21.
For more details, please refer to the notice concerning dividend of surplus (increase in dividends) announced today on May 12,2022.

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (from April 1, 2022 toMarch 31, 2023)(Percentages indicate year-on-year changes.)
Net sales
Millions of yen

Operating profit% Millions of yen

Net profit
attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen

Six months ending
September 30, 2022

19,800

8.3

4,500

3.5

4,800

6.6

Full year

38,900

4.1

8,550

1.7

9,100

3.2

Earnings per
share
%

Yen

3,450

8.9

148.226,350

6.5

272.81

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
Newly included: - companies (Company name)
Excluded:- companies (Company name)(2) 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
Note: For more details, please refer to “(5) Notes to Consolidated Financial Statements (Changes in Accounting Policies)” in “3.
Consolidated Financial Statements and Significant Notes Thereto.”(3) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022

23,661,000 shares

As of March 31, 2021

23,661,000 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2022

384,642 shares

As of March 31, 2021

396,265 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2022

23,272,807 sharesFiscal year ended March 31, 2021

23,261,271 shares[Reference] Overview of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal year Ended March 31, 2022 (from April 1, 2021 to March
31, 2022)(1) Non-consolidated Operating Results(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Net profit

Fiscal year ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

March 31, 2022

32,449

12.8

6,373

19.8

7,635

27.6

5,725

35.4

March 31, 2021

28,765

3.0

5,320

9.9

5,984

12.2

4,229

10.9

Earnings per share- Basic

Earnings per share- Diluted

Fiscal year ended

Yen

March 31, 2022

246.00-March 31, 2021

181.83-Yen(2) Non-consolidated Financial Position
Total assets
As ofMarch 31, 2022
March 31, 2021
Reference: Equity

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

62,11049,19879.2

2,113.68

55,42644,51180.3

1,913.27

As of March 31, 2022:
As of March 31, 2021:¥49,198 million¥44,511 million%

Yen2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (from April 1, 2022
to March 31, 2023)(Percentages indicate year-on-year changes.)
Net sales
Millions of yen

Operating profit% Millions of yen

Ordinary profit% Millions of yen

Earnings per
share

Net profit% Millions of yen

Six months ending
September 30, 2022

17,100

5.7

3,700

9.8

3,900

10.3

Full year

33,500

3.2

6,900

8.3

8,200

7.4

%

Yen

2,900

14.7

124.596,150

7.4

264.22* Financial results reports are exempt from audit 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 “(4) Prospects for the Future” in “1. Outline of Operating Results” onpage 4 of the attachment.

○

Table of Contents of Attachment
1.

Outline of Operating Results .................................................................................................................. 2(1) Outline of Operating Results for the Fiscal Year under Review.................................................. 2(2) Outline of Financial Position for the Fiscal Year under Review .................................................. 3(3) Outline of Cash Flows for the Fiscal Year under Review ............................................................. 3(4) Prospects for the Future .................................................................................................................. 4

2.

Basic Stance on Adopting Accounting Standards ................................................................................. 4

3.

Consolidated Financial Statements and Significant Notes Thereto .................................................... 5(1) Consolidated Balance Sheet ............................................................................................................ 5(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income .. 7
Consolidated Statement of Income .................................................................................................... 7
Consolidated Statement of Comprehensive Income .......................................................................... 8(3) Consolidated Statement of Changes in Equity .............................................................................. 9(4) Consolidated Statement of Cash Flows ........................................................................................11(5) Notes to Consolidated Financial Statements ............................................................................... 13(Notes on Going Concern Assumptions) ......................................................................................... 13(Significant Matters that Serve as the Basis for Preparation of Consolidated Financial
Statements) ................................................................................................................................... 13(Changes in Accounting Policies).................................................................................................... 16(Notes on Substantial Changes in the Amount of Shareholders' Equity) ........................................ 16(Segment Information, Etc.) ............................................................................................................ 17(Per Share Information) ................................................................................................................... 19(Significant Subsequent Events)...................................................................................................... 19

4.

Other ....................................................................................................................................................... 20(1) Production, orders received, and sales......................................................................................... 20

-1-

1.

Outline of Operating Results(1) Outline of Operating Results for the Fiscal Year under Review(Outline of overall business)
In the fiscal year under review, restrictions on people’s activities were lifted gradually as economic measures
were implemented and the COVID-19 vaccination ratio improved globally, resulting in the resumption of
economic activities and progress in economic recovery. On the other hand, there was a periodic spread of theinfection which caused supply chain confusion and a shortage of semiconductors and other materials, andconstrained supply due mainly to geopolitical risks. This meant the economy stagnated and the outlook for theJapanese economy remained uncertain. The economy, prices, and financial circumstances need continued andcareful observation.
The business environment surrounding the Group benefited from active capital investment in thesemiconductor industry, the Group’s major customer, since 5G-related factors and DX advancement boosted
demand for semiconductors. Automobile-related and secondary battery-related industries also performed
steadily on the back of the accelerating move toward a decarbonized society.
Under these circumstances, the periodic waves of COVID-19 caused regional economic closures and a shortageof semiconductors, etc. intensified concern about the outlook for our production and sales activities. However,the Group continued development, production, and sales activities in pursuit of building safe workplaces andturning the danger caused by the invisibility of gases into a visible and measurable security.
The Production Center (Kasukabe City, Saitama Pref.) was completed in July 2020 and went into full-scale
operation in April 2021. Facilities of the Hakodate Plant were partially transferred to this quake-resistant
Production Center to establish a stable sensor supply system and stable product supply. In addition, in an effort
to increase its corporate value from a medium- to long-term perspective, the Group actively worked onsustainability-related issues, including SDGs, as well as development, production, sales and after-salemaintenance activities where we are conscious of the need for decarbonization.
As a result of these measures, net sales for the fiscal year under review were 37,363 million yen (up 16.0%
year-on-year), operating profit was 8,402 million yen (up 27.4% year-on-year), ordinary profit was 8,819
million yen (up 27.4% year-on-year), and net profit attributable to owners of parent was 5,963 million yen (up27.1% year-on-year).
(Summary of sales by device type)A summary of sales by device type is as follows:
Fixed gas detection alarm devices
Sales of Smart-type Gas Detector GD-70D increased for semiconductor plants in Japan and eastern Asia, andfor semiconductor manufacturing equipment makers in Japan.
Sales of Furnace Safety Monitor SD-2500 grew for lithium battery manufacturing equipment makers in Japanand lithium battery production plants in China, on the back of the growing capital investment in lithium battery
manufacturing in China. Sales of Smart-type Gas Detector SD-1 were up for the ship-building, petrochemical,
and semiconductor industries, and also for lithium battery production plants.
Since the after-sale maintenance service also grew steadily, net sales were 26,257 million yen (up 16.9% yearon-year).
Portable gas detection alarm devices
Sales of GX-3R Series, the mainstay portable gas monitor, increased mainly for the domestic and overseas
petroleum and petrochemical industries, and also for governmental agencies, boosted by improved economic
activities in Europe and the United States and seasonal domestic demand for renewal.
As a decrease in sales due to COVID-19 in the Southeast Asian market was offset by the favorable performanceof the after-sale maintenance service, net sales were 9,903 million yen (up 12.5% year-on-year).
Other measurement devices
Sales of Explosion-proof Calorimeter OHC-800 jumped in the fiscal year under review as they benefited froma well-received solution that combines OHC-800 and other gas detectors.

-2-

The latest AC-2S of Atmospheric Photoelectron Spectrometer AC Series had yet to penetrate the market, but
the series of products are in demand in universities and laboratories. Their sales stayed at the previous year’slevel despite the global impact of COVID-19.
As a result, net sales were 1,202 million yen (up 27.6% year-on-year).
(2) Outline of Financial Position for the Fiscal Year under Review
At the end of the fiscal year under review, assets totaled 71,606 million yen, an increase of 7,280 million yen(up 11.3%) compared with the end of the previous fiscal year.
Current assets increased 7,776 million yen from the end of the previous fiscal year to 43,252 million yen. Thiswas mainly due to a 3,657 million yen increase in securities, a 1,919 million yen increase in cash and deposits,
a 1,438 million yen increase in work in process, and a 1,393 million yen increase in raw materials and supplies
despite a 695 million yen decrease in notes and accounts receivable - trade and a 931 million yen decrease inaccounts receivable – other included in other under current assets.
Non-current assets decreased 495 million yen from the end of the previous fiscal year to 28,354 million yen.
This was mainly due to a 336 million yen decrease in buildings and structures and a 230 million yen decreasein leased assets despite a 366 million yen increase in investment securities.
At the end of the fiscal year under review, liabilities totaled 14,747 million yen, an increase of 3,037 million
yen (up 25.9%) compared with the end of the previous fiscal year.
Current liabilities grew 3,554 million yen from the end of the previous fiscal year to 12,131 million yen. Thiswas mainly due to a 1,419 million yen increase in notes and accounts payable – trade, a 908 million yen
increase in income taxes payable and a 498 million yen increase in accrued consumption taxes included inother under current liabilities. Non-current liabilities fell 517 million yen from the end of the previous fiscal
year to 2,616 million yen. This was mainly due to a 300 million yen decrease in bonds payable and a 263
million yen decrease in lease liabilities.
At the end of the fiscal year under review, net assets totaled 56,858 million yen, an increase of 4,243 million
yen (up 8.1%) compared with the end of the previous fiscal year. This was mainly due to a 4,963 million yen
increase in retained earnings as a result of the recording of a net profit attributable to owners of parent of 5,963
million yen and dividends of surplus of 1,000 million yen despite a 408 million yen decrease in capital surplus
and an 883 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) Outline of Cash Flows for the Fiscal Year under Review
At the end of the fiscal year under review, cash and cash equivalents increased 4,056 million yen from the endof the previous fiscal year to 17,989 million yen (up 29.1%).
(Cash flows from operating activities)
Profit before income taxes was 8,827 million yen, depreciation was 1,702 million yen, and increase in trade
payables was 1,301 million yen, while the increase in inventories was 2,962 million yen and income tax paid
was 1,877 million yen. As a result of the above, among other factors, net cash provided by operating activities
increased 4,948 million yen (up 121.1%) year-on-year to 9,034 million yen.
(Cash flows from investing activities)
Proceeds from withdrawal of time deposits was 863 million yen, while purchase of securities was 1,697 million
yen, and payments into time deposits were 936 million yen, purchase of property, plant and equipment was
773 million yen. As a result of the above, among other factors, net cash used in investing activities decreased
190 million yen (down 6.9%) year-on-year to 2,565 million yen.
(Cash flows from financing activities)
Purchase of shares of subsidiaries not resulting in change in scope of consolidation was 1,481 million yen, andpayment of dividends paid was 1,000 million yen. As a result of the above, among other factors, net cash usedin financing activities increased 480 million yen (up 19.4%) to 2,953 million yen.

-3-

(Reference) History of cash flow-related indicators
FY2017FY2018FY2019FY2020

FY2021Equity-to-asset ratio (%)

78.3

77.6

78.8

79.3

78.4

Market value equity-to-asset ratio
(%)

101.9

87.3

78.8

99.6

159.3

Cash flows to interest-bearing debt
(years)

0.8

0.6

0.5

0.9

0.4

147.7
187.6
120.5
Equity to total assets
Market value of shares to total assets
Interest-bearing debt to operating cash flows
Operating cash flows to interest payment

190.6

Interest coverage ratio (times)
Equity-to-asset ratio
Market value equity-to-asset ratio
Cash flows to interest-bearing debt
Interest coverage ratio(Note 1)
(Note 2)
(Note 3)

115.0
:
:
:
:

The figures above are calculated using consolidated financial data.
The market value of shares is calculated by multiplying the closing share price at year-end by the number ofoutstanding shares at year-end (excluding treasury shares).
Operating cash flows refer to cash flows from operating activities in the Consolidated Statement of Cash Flows.
Interest-bearing debt includes any liabilities recorded on the Consolidated Balance Sheet that incur interest
expenses. Payment of interest refers to the amount of interest payment stated in the Consolidated Statement of
Cash Flows.

(4) Prospects for the Future
Despite the spread of new variants of COVID-19, the influence on economic activities is expected to be limited
compared with the past cases because vaccinations have progressed. On the other hand, a delay in the supplyof semiconductors and other materials, supply chain confusion, and geopolitical issues, etc. may continue tobe unpredictable.
Looking at the Group’s business environment, the semiconductor industry, the Group’s major customer, can
expect continued strong demand due to the widespread adoption of remote work and demand for at-homeconsumption. The energy-related, automobile-related, and steel-related industries are also expected to increase
their capital investment amid the accelerating trend of decarbonization.
The consolidated earnings forecasts for fiscal 2022 are as follows:
Net sales

38,900 million yen (4.1% increase year-on-year)

Operating profit

8,550 million yen (1.7% increase year-on-year)

Ordinary profit

9,100 million yen (3.2% increase year-on-year)

Net profit attributable to owners of parent
6,350 million yen (6.5% increase year-on-year)
Financial results forecasts are the Company’s forecasts based on information currently available to theCompany. Actual financial results may differ significantly from the forecasts due to various factors.

2.

Basic Stance on Adopting Accounting Standards
The Group will continue to disclose consolidated financial statements under J-GAAP, taking into consideration
the historical comparability of terms and comparability of companies.
The Group will also adopt IFRS standards depending on domestic and overseas developments accordingly.

-4-

3.

Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated Balance Sheet

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
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Software
Software in progress
Goodwill
Customer-related assets
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-5-

As of the end of the previous
fiscal year
(March 31, 2021)(Unit: Thousand yen)
As of the end of the fiscal
year under review(March 31, 2022)

9,631,315
9,894,686
2,803,268
6,294,967
2,538,714
1,869,207
998,259
1,450,726(4,853)35,476,292

11,551,206
9,198,690
3,519,418
9,952,268
2,744,435
3,307,349
2,391,516
591,190(3,697)43,252,378

15,943,213(4,289,841)
11,653,372
1,087,740(761,082)
326,658
4,075,901
3,170,660(1,710,533)
1,460,126
155,430
3,184,884(2,709,855)
475,029
18,146,517

15,997,275(4,680,088)
11,317,187
1,175,827(817,351)
358,475
4,079,123
3,103,053(1,873,436)
1,229,616
46,435
3,347,976(2,938,431)
409,545
17,440,385

565,692
13,220676,468
876,699
17,392
2,149,473

409,065
10,108595,387
830,848
17,392
1,862,803

5,514,420
1,672,351
126,296
1,244,681(4,000)8,553,749
28,849,741
64,326,034

5,881,220
1,813,344
112,866
1,246,984(3,500)9,050,916
28,354,106
71,606,484

As of the end of the previous
fiscal year
(March 31, 2021)
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Lease liabilities
Accrued expenses
Income taxes payable
Provision for bonuses
Provision for product warranties
Provision for loss on orders received
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Long-term accounts payable - other
Lease liabilities
Deferred tax liabilities
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
Non-controlling interests
Total net assets
Total liabilities and net assets-6-

As of the end of the fiscal
year under review(March 31, 2022)

3,206,800
995,000
417,013584,539
877,653
873,596
130,855
609
22,291
1,468,178
8,576,538

4,625,929
995,000
300,000
434,303
676,608
1,786,207
920,836
98,23932,0082,262,057
12,131,190

300,000
850,580
15,2501,240,422
709,833
11,0947,000
3,134,179
11,710,718

850,580
15,250976,555
720,603
11,13342,4522,616,574
14,747,765

2,565,500
2,294,089
44,641,217(232,906)
49,267,900

2,565,500
1,885,187
49,604,449(226,384)
53,828,752

1,921,384(155,642)
1,765,742
1,581,673
52,615,315
64,326,034

1,853,706
477,683
2,331,389
698,577
56,858,719
71,606,484

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Commission expenses
Advertising expenses
Salaries and allowances
Provision for bonuses
Retirement benefit expenses
Research and development expenses
Depreciation
Other
Total 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
Subsidy income
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
Compensation expenses
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 golf club membership
Loss on sale of golf club membership
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net profit
Net profit attributable to non-controlling interests
Net profit attributable to owners of parent-7-

Previous fiscal year
(From April 1, 2020 to March
31, 2021)
32,209,297
16,827,621
15,381,675(Unit: Thousand yen)
Fiscal year under review(From April 1, 2021 to March
31, 2022)
37,363,952
18,931,464
18,432,488

658,926
190,117
2,631,452
255,742(59,609)
1,908,104
509,392
2,689,350
8,783,477
6,598,198

832,212
270,961
2,837,090
274,164
92,0072,135,561
582,440
3,005,083
10,029,522
8,402,966

60,586
107,894
193,1995,446
7,965
88,189463,281

48,129129,633
110,51147,33818,703100,000
68,781
523,097

33,90222,096
69,254
12,954
138,208
6,923,271

47,407
4,953
8,142
40,591
5,069
106,1658,819,898

350
350

7,491
7,491

174
259,578
2,590
1,400
263,742
6,659,879
1,750,240
134,851
1,885,091
4,774,788
82,862
4,691,926

270
270
8,827,119
2,734,757
38,8552,773,613
6,053,505
89,644
5,963,861

Consolidated Statement of Comprehensive Income

Net profit
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests-8-

Previous fiscal year
(From April 1, 2020 to March
31, 2021)
4,774,788(Unit: Thousand yen)
Fiscal year under review(From April 1, 2021 to March
31, 2022)
6,053,505

554,505(226,878)
327,626
5,102,415(69,408)
749,985
680,577
6,734,083

5,101,178
1,236

6,529,509
204,574

(3) Consolidated Statement of Changes in Equity
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)(Unit: Thousand yen)
Shareholders' equity
Share capital
Balance at beginning of
periodChanges during period
Dividends of surplus
Net profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes in items
other than shareholders'equityTotal changes during period
Balance at end of period

2,565,500

CapitalsurplusRetainedearnings

2,826,219

40,926,160(239,152)(976,869)

4,691,926

4,691,926

20,749

(599)

(599)

6,845

27,594(552,878)

2,565,500

1,363,947

46,078,726(976,869)(552,878)(532,129)
2,294,089

3,715,057
44,641,217

6,245(232,906)

Accumulated other comprehensive income
Valuation
Total accumulated
Foreign currency
difference onothertranslation
available-for-salecomprehensive
adjustment
securities
incomeBalance at beginning of
periodChanges during period
Dividends of surplus
Net profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes in items
other than shareholders'equityTotal changes during period
Balance at end of period

Totalshareholders'equityTreasuryshares(7,457)

1,356,489

3,189,173
49,267,900

Non-controllinginterests

Total net assets

2,200,593

49,635,810(976,869)
4,691,926(599)
27,594(552,878)

557,437(148,185)

409,252(618,919)(209,667)

557,437
1,921,384(148,185)(155,642)

409,252
1,765,742(618,919)
1,581,673

2,979,505
52,615,315-9-

Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)(Unit: Thousand yen)
Shareholders' equity
Share capital
Balance at beginning of
periodChanges during period
Dividends of surplus
Net profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes in items
other than shareholders'equityTotal changes during period
Balance at end of period

2,565,500

CapitalsurplusRetainedearnings

2,294,089

44,641,217(232,906)(1,000,628)

5,963,861

5,963,861

17,405

(361)

(361)

6,883

24,288(426,307)

2,565,500

1,921,384

49,267,900(1,000,628)(426,307)(408,902)
1,885,187

4,963,232
49,604,449

6,521(226,384)

Accumulated other comprehensive income
Valuation
Total accumulated
Foreign currency
difference onothertranslation
available-for-salecomprehensive
adjustment
securities
incomeBalance at beginning of
periodChanges during period
Dividends of surplus
Net profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes in items
other than shareholders'equityTotal changes during period
Balance at end of period

Totalshareholders'equityTreasuryshares(155,642)

1,765,742

4,560,851
53,828,752

Non-controllinginterests

Total net assets

1,581,673

52,615,315(1,000,628)
5,963,861(361)
24,288(426,307)(67,678)

633,326565,647(883,096)(317,448)(67,678)
1,853,706

633,326
477,683

565,647
2,331,389(883,096)
698,577

4,243,403
56,858,719- 10 -

(4) Consolidated Statement of Cash Flows

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
Increase (decrease) in provision for loss on order received
Decrease (increase) in retirement benefit asset
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 on valuation of golf club membership
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 golf club membership
Loss (gain) on sale of securities
Other
SubtotalInterest and dividends received
Interest paid
Income tax paid
Proceeds from insurance income
Net cash provided by (used in) operating activities- 11 -

Previous fiscal year
(From April 1, 2020 to March
31, 2021)(Unit: Thousand yen)
Fiscal year under review(From April 1, 2021 to March
31, 2022)

6,659,879
1,391,179
138,632
259,578(3,071)
23,860(32,659)609(673,065)(168,480)(5,446)33,902(87,338)(176)
22,0962,590(802,891)
64,428435,318(504,116)
1,400
69,254(785,600)
6,039,884
169,414(33,902)(2,101,086)
11,473
4,085,782

8,827,119
1,702,074
153,402(2,187)47,240(32,616)
31,398(140,992)(177,762)(47,338)
47,407(321,678)(7,220)
4,953
163,370(2,962,385)
1,301,657
861,536(18,703)
1,294,334
10,723,608
178,662(47,407)(1,877,999)
57,756
9,034,619

Cash flows from investing activities
Purchase of securities
Proceeds from redemption of securities
Proceeds from sale 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 and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from redemption of investment securities
Proceeds from sale of golf club membership
Payments for asset retirement obligations
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term borrowings
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 in change inscope 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
Cash and cash equivalents at end of period- 12 -

Previous fiscal year
(From April 1, 2020 to March
31, 2021)(Unit: Thousand yen)
Fiscal year under review(From April 1, 2021 to March
31, 2022)(1,189,611)
578,010998,126(811,069)
728,943(2,623,226)
1,222(161,045)(487,433)
201,395
8,283(2,756,404)(1,697,102)
135,150
392,257(936,398)
863,216(773,933)
11,143(33,553)(51,883)(510,983)
42,575(6,282)(2,565,794)

400,000(400,000)(323,398)(599)(975,911)(57,967)

400,000(400,000)(437,937)(361)(1,000,113)(33,479)(1,114,995)(1,481,340)(2,472,872)
59,804(1,083,689)
15,016,366
13,932,676(2,953,232)
541,234
4,056,826
13,932,676
17,989,503

(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Significant Matters that Serve as the Basis for Preparation of Consolidated Financial Statements)
1. Matters regarding the scope of consolidation(1) Number of consolidated subsidiary companies: Five
Names of consolidated subsidiaries
RIKEN KEIKI NARA MFG. Co., Ltd.
RIKEN KEIKI TAIWAN CO., LTD.
RIKEN KEIKI COMMERCIAL (SHANGHAI) CO., LTD.
RKI INSTRUMENTS, INC.
R K INSTRUMENTS (S) PTE LTD(2) Number of unconsolidated subsidiary companies: Three
Names of unconsolidated subsidiaries
RIKEN KEIKI Technocrats Co., Ltd.
RIKEN KEIKI GmbHRIKEN KEIKI (M) SDN.BHD.
Reason for the exclusion from the scope of consolidation
All three unconsolidated subsidiary companies are small in scale, and the total of total assets, net
sales, profit and retained earnings (an amount corresponding to the equity interests of the Company),
etc. of the three companies does not exert a material influence on consolidated financial statements.
2.

Matters regarding adoption of equity method(1) Number of affiliated companies to which the equity method is applied
Not applicable.
(2) Names of major unconsolidated subsidiary companies or affiliated companies to which the equity
method is not applied
RIKEN KEIKI Technocrats Co., Ltd.
RIKEN KEIKI GmbHRIKEN KEIKI KOREA CO.,LTD.
Reason for not applying the equity method
In terms of profit and retained earnings (an amount corresponding to the equity interests of theCompany), etc., the companies to which the equity method is not applied may only exert an
immaterial influence on the Company’s consolidated financial statements even if the companies are
excluded from the scope of the application of the equity method, and also on the overall financial
results.

3.

Matters regarding the fiscal year, etc. of consolidated subsidiary companies
The last day of consolidated subsidiary companies’ business year is December 31, which differs from theconsolidated closing date. Any significant transaction between the last day of their business year and theconsolidated closing date are subject to adjustment required for consolidated reporting.

- 13 -

4.

Matters regarding accounting policies(1) Valuation standards and accounting treatment for important assets(i)Securities(a) Held-to-maturity debt securities
Held-to-maturity debt securities are stated at amortized cost (the straight-line method).
(b) Other securities
Securities other than stocks without quoted market prices
These are stated at fair market value. The difference between acquisition cost and market
value is accounted for as net unrealized holding gains or losses on securities in net assets,with the cost of sales determined by the moving average method.
Stocks without quoted market prices
They are carried at cost, which is determined by the moving average method.

(ii) Derivatives
Derivatives are stated at fair market value.
(However, the market value method shall not be applied to interest rate swap transactions thatsatisfy the requirements for exceptional accounting treatment. The net amount to be paid or
received under the interest rate swap transaction shall be added to or subtracted from the amountof interest on debt subject to the interest rate swap agreement.
(iii) Inventories(a) Merchandise and finished goods
Stated at cost, with cost being determined by the gross-average method. (The method ofbook value devaluation based on a decline in profitability is used.)
However, the identified-cost method shall be applied for certain finished goods.
(b) Work in process
Stated at cost, with cost being determined by the gross-average method. (The method ofbook value devaluation based on a decline in profitability is used.)
However, the identified-cost method shall be applied for certain work in process.
(c) Raw materials and supplies
Stated at cost, with cost being determined by the gross-average method. (The method ofbook value devaluation based on a decline in profitability is used.)(2) Depreciation method for material depreciable assets(i)

Property, plant and equipment (excluding leased assets)
Straight-line method
The principal useful lives are as follows.
Buildings and structures: 31 to 50 years(ii) Intangible assets
Computer software purchased for internal use is amortized by the straight-line method basedon the estimated internal useful life (five years).
Customer-related assets are amortized by the straight-line method based on estimated profitable
period (nine to fifteen years), the basis of calculating the proceeds.
(iii) Leased assets
Leased assets related to finance lease transactions other than those where ownership of the leaseassets is deemed to be transferred to the lessee are amortized by the straight-line method,
assuming the lease period is the useful life and no residual value.
(3) Accounting standards for allowance and provisions(i)

Allowance for doubtful accounts- 14 -

The allowance for doubtful accounts is provided in an amount sufficient to cover possible losses
estimated as a historical write-off ratio of bad debts for general receivables, with the additionof required amounts for doubtful accounts and bankrupt receivables based on a case-by-caseassessment of the possibility of collection.
(ii) Provision for bonuses
Accrued employees’ bonuses are provided based on the estimated amount to be paid.
(iii) Provision for product warranties
Provision for product warranties is provided for product after-sale service expenses based on
the historical performance.
(iv) Provision for loss on orders received
As a reserve against future losses on sales of ordered products, the estimated loss on sale ofordered products is calculated for those undelivered at the end of the current consolidated fiscal
year.
(4) Accounting treatment of retirement benefit payments(i)

Attribution method for projected retirement benefits
In calculating retirement benefit obligations, the benefit formula basis is applied as the method
for attributing projected retirement benefits to the period up to end of the current consolidated
fiscal year.

(ii) Treatment method of actuarial losses
The actuarial loss (28,139 thousand yen) is expensed as incurred.
(5) Accounting policies for significant revenue and expenses
The Company shall adopt the “Accounting Standard for Revenue Recognition” (ASBJ Statement
No. 29, issued on March 31, 2020; hereinafter “Revenue Recognition Accounting Standard”), etc.
from the beginning of the fiscal year under review. Revenue is recognized when control of promised
goods or services is transferred to customers, at the amounts expected to be received in exchange forthose goods or services.
(6) Standards of translation of significant foreign-currency-denominated assets or liabilities into
Japanese yen
Foreign-currency-denominated money claims and liabilities are translated into Japanese yen at the
spot exchange rates in effect on the consolidated balance sheet date, and the difference arising fromsuch translation is stated as a gain or loss. Assets, liabilities, revenue and expenses of consolidated
subsidiaries outside of Japan are translated into Japanese yen at the spot exchange rates in effect atthe balance sheet date of these companies and the exchange differences are included in foreign
currency translation adjustment and non-controlling interests under net assets.
(7) Accounting for significant hedges(i)Hedge accounting
The exceptional accounting treatment is applied for interest rate swap transactions that satisfy
the requirements for the treatment.

(ii) Hedging instrument and hedged items
Hedging instrument: Interest rate swaps
Hedged item: Interest on debts(iii) Hedge policy
To reduce interest rate risks and improve financial balance, hedging shall be conducted within
the extent of the liabilities involved.
(iv) Evaluation of hedge effectivenessFor interest rate swaps with the exceptional accounting treatment, hedge effectiveness is notevaluated.
(8) Amortization of goodwill and amortization period
Amortization has been based on the seven-to-nine year-period straight line method.

- 15 -

(9) Scope of cash in the Consolidated Statement of Cash Flows
Cash and cash equivalents in the Consolidated Statement of Cash Flows comprise cash on hand,readily available deposits, and short-term liquid investments expiring within six (6) months of thedate they were acquired and incurring minimal risk from fluctuations in value.
(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,
issued on March 31, 2020; hereinafter referred to as the “Revenue Recognition Accounting Standard”), etc.
from the beginning of the fiscal year under review, according to which revenue is recognized when control
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 fiscal year under review and the retained
earnings at the beginning of the period.
(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, issued on July 4, 2019; hereinafter referred to as the “Fair Value Measurement Accounting Standard”),
etc. from the beginning 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, issued on July 4, 2019). This
has no impact on the consolidated financial statements.
(Notes on Substantial Changes in the Amount of Shareholders' Equity)
During the second quarter of the fiscal year under review, capital surplus decreased by 408,902 thousand yen
mainly due to the additional acquisition of shares of R K INSTRUMENTS(S)PTE LTD, a consolidated
subsidiary of the Company, from a non-controlling shareholder.
As a result, capital surplus at the end of the fiscal year under review was 1,885,187 thousand yen.

- 16 -

(Segment Information, Etc.)[Segment information]
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
As the Group engages in a single segment of the manufacture and sale of various types of industrial measurement
devices and their related businesses, the disclosure of business segment information has been omitted.
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
As the Group engages in a single segment of the manufacture and sale of various types of industrial measurement
devices and their related businesses, the disclosure of business segment information has been omitted.
[Related information]
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
1. Information by product and service(1) Net sales(Unit: Thousand yen)Fixed gas detection alarm
devices

Portable gas detection alarm
devices

Other measurement devices

8,800,531

941,961

22,466,803

Total
32,209,297

2. Information by region(1) Net sales
Overseas sales
Japan

Asia

North
America

EuropeOthers

Total

Consolidated
net sales

I Net sales (Thousand yen)

22,902,924

5,211,712

3,203,373

654,744236,541

9,306,372

32,209,297

II Percentage of consolidated
net sales

71.1

16.2

10.0

2.0

0.7

28.9

100.0

(Note)Net sales are classified by country or region based on the customer’s location.

(2) Property, plant and equipment
Description is omitted as the amount of property, plant and equipment located in Japan exceeds 90% of
the property, plant and equipment on the consolidated balance sheet.
3. Information on major customers(Unit: Thousand yen)
Name of customer

Net salesKIOXIA Corporation(Note)

3,624,062

As the Group engages in a single segment of the manufacture and sale of various types of industrial measurement
devices and their related businesses, the disclosure of relevant segment information has been omitted.

Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
1. Information by product and service(1) Net sales(Unit: Thousand yen)Fixed gas detection alarm
devices
26,257,981

Portable gas detection alarm
devices

Other measurement devices

9,903,865

1,202,105

2. Information by region- 17 -

Total
37,363,952

(1) Net sales
Overseas sales
Japan
I Net sales (Thousand yen)

24,836,424

Asia

North
America

EuropeOthers7,138,742

4,265,296

834,922

288,566 12,527,528

II Percentage of consolidated
66.5
19.1
11.4
2.2
net sales(Note) Net sales are classified by country or region based on the customer’s location.

0.8

Total

33.5

Consolidated
net sales
37,363,952
100.0(2) Property, plant and equipment
Description is omitted as the amount of property, plant, and equipment located in Japan exceeds 90% of
the property, plant, and equipment on the balance sheets.
3. Information on major customers(Unit: Thousand yen)
Name of customer

Net salesKIOXIA Corporation(Note)

3,878,721

As the Group engages in a single segment of the manufacture and sale of various types of industrial measurement
devices and their related businesses, the disclosure of relevant segment information has been omitted.

[Information on impairment losses of fixed assets by reportable segment]
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
As the Group engages in a single segment of the manufacture and sale of various types of industrial measurement
devices and their related businesses, the disclosure of business segment information has been omitted.
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
As the Group engages in a single segment of the manufacture and sale of various types of industrial measurement
devices and their related businesses, the disclosure of business segment information has been omitted.
[Information concerning amortization of goodwill and unamortized balances by reportable segment]
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
As the Group engages in a single segment of the manufacture and sale of various types of industrial measurement
devices and their related businesses, the disclosure of business segment information has been omitted.
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
As the Group engages in a single segment of the manufacture and sale of various types of industrial measurement
devices and their related businesses, the disclosure of business segment information has been omitted.
[Information concerning gain on bargain purchase by reportable segment]
Not applicable.

- 18 -

(Per Share Information)
Previous fiscal year
(From April 1, 2020 to March
31, 2021)

Fiscal year under review(From April 1, 2021 to March
31, 2022)

2,193.61 yen

2,412.75 yen

Earnings per share
201.71 yen(Notes) 1. Diluted earnings per share is not presented because there are no dilutive shares.
2. The basis for calculating earnings per share is shown below.

256.26 yen

Previous fiscal year
(From April 1, 2020 to March
31, 2021)

Fiscal year under review(From April 1, 2021 to March
31, 2022)

Net assets per share

Net profit attributable to owners of parent(Thousand yen)

4,691,926

5,963,861

Amount not attributable to shareholders ofcommon stock(Thousand yen)--

Net profit attributable to owners of parent
associated with common stock(Thousand yen)

4,691,926

5,963,861

Average number of shares of common stock
outstanding during the period(Thousand shares)

23,261

23,272(Significant Subsequent Events)
Not applicable.

- 19 -4.

Other(1) Production, orders received, and sales(Unit: Yen amounts are rounded down to millions, unless otherwise noted.)
Previous fiscal year
Fiscal year under review(From April 1, 2020 to March (From April 1, 2021 to March
Rise or (fall)
31, 2021)
31, 2022)
AmountComposition
ratio

Amount%Production*

13,75965.4

16,216

68.8

2,457

Portable gas detection alarm devices

6,418

30.5

6,317

26.8

(101)

871

4.1

1,035

4.4

164

21,049100.0

23,569

100.0

2,519

Total
Fixed gas detection alarm devices

23,70570.9

29,966

71.2

6,260

Portable gas detection alarm devices

8,804

26.3

10,824

25.7

2,019

927

2.8

1,323

3.1

395

Other measurement devices
Total

Net sales

Order backlog*%

Fixed gas detection alarm devices
Other measurement devices

Orders received

Composition
ratio

33,437100.0

42,114

100.0

8,676

Fixed gas detection alarm devices

22,466

69.8

26,257

70.3

3,791

Portable gas detection alarm devices

8,800

27.3

9,903

26.5

1,103

Other measurement devices

941

2.9

1,202

3.2

260

Total

32,209100.0

37,363

100.0

5,154

Overseas sales (included in total sales)

9,306

28.9

12,527

33.5

3,221

Fixed gas detection alarm devices

4,163

71.4

7,872

74.4

3,708

Portable gas detection alarm devices

1,429

24.5

2,350

22.2

920

235

4.1

356

3.4

121

5,829

100.0

10,579

100.0

4,750

Other measurement devices

Total
The amount is converted into sales price.

- 20 -