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.

August 9, 2022

Consolidated Financial Results for the Three Months Ended June 30, 2022 [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:+81-3-3966-1128
Scheduled date to file quarterly securities report:
August 9, 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 Three Months Ended June 30, 2022 (from April 1, 2022 to June 30, 2022)(1) Consolidated Operating Results (Cumulative)(Percentages indicate year-on-year changes.)
Net sales

Operating profit

Net Profit attributable toowners of parent

Ordinary profit

Three months ended
Millions of yen%
Millions of yen%
Millions of yen%
June 30, 2022
10,763
19.1
3,428
68.8
3,664
75.6
June 30, 2021
9,038
17.5
2,031
39.5
2,087
44.1
Note: Comprehensive income
For the three months ended June 30, 2022: ¥2,882 million [42.9%]
For the three months ended June 30, 2021: ¥2,017 million [106.8%]
Eearnings per share-BasicThree months ended
June 30, 2022
June 30, 2021

Millions of yen

%

2,581
1,466

76.0
47.3

Earnings per share- Diluted-

Yen

Yen

110.91
63.05-(2) Consolidated Financial Position
Total assets
As ofJune 30, 2022
June 30, 2021
Reference: Equity
As of June 30, 2022:
As of June 30, 2021:

2.

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

72,50771,60659,00856,85880.4
78.4

2,504.10
2,412.75¥58,286 million¥56,160 million

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, 2022
21.00
Fiscal year ending
March 31, 2023
Fiscal year ending
March 31, 2023
(Forecast)
30.00
Note: Revisions to the forecast of cash dividends most recently announced: None

Total

Yen

Yen

Yen

-

39.00

60.00

-

30.00

60.00

3.

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

Net profit attributableto owners of parent

Ordinary profit%

Earnings per
share

Millions of yen%

Millions of yen%

Yen

First half
19,800
8.3
4,500
3.5
4,800
Full year
38,900
4.1
8,550
1.7
9,100
Note: Revision to the forecast of the financial results most recently announced: None

6.6
3.2

3,450
6,350

8.9
6.5

148.22272.81* 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 June 30, 2022
As of March 31, 2022

(ii)

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

Number of treasury shares at the end of the period
As of June 30, 2022
As of March 31, 2022

384,720 shares
384,642 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2022
Three months ended June 30, 2021

23,276,319 shares
23,264,735 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 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 Three 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 Three 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 three months .................................................................................................................................. 6
Quarterly Consolidated Statement of Comprehensive Income
First three months .................................................................................................................................. 7(3) Notes to Quarterly Consolidated Financial Statements .............................................................................. 8(Notes on Going Concern Assumptions) .................................................................................................... 8(Change in Scope of Consolidation or Adoption of the Equity Method).................................................... 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 Three Months of the Current
Fiscal Year

(1)

Explanation of Operating Results
In the first three months of the fiscal year under review, the outlook for the Japanese economy continued toremain uncertain due to the protracted situation in Russia and Ukraine, the rapid depreciation of the yen, andchanges in the business environment caused by the sharp rise in resource prices, despite moves towardnormalization of socioeconomic activities amid the prolonged impact of COVID-19.
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 and the EU region, remained steady. However, sufficient caution isnecessary regarding the impact of a supply shortage of components, such as semiconductors, soaring resource
prices, and other factors, 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 three months of the fiscal year under review were 10,763
million yen (up 19.1% year-on-year), operating profit was 3,428 million yen (up 68.8% year-on-year),ordinary profit came to 3,664 million yen (up 75.6% year-on-year), and net profit attributable to owners ofparent was 2,581 million yen (up 76.0% 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 three months of the fiscal year under review were7,272 million yen (up 16.1% year-on-year).
(ii) Portable gas detection alarm devices
Net sales of portable gas detection alarm devices for the first three months of the fiscal year under review
were 3,227 million yen (up 27.3% year-on-year).
(iii)Other measurement devices
Net sales of other measurement devices for the first three months of the fiscal year under review were 263
million yen (up 8.9% year-on-year).

(2)

Explanation of Financial Position
At the end of the first quarter of the fiscal year under review, assets totaled 72,507 million yen, an increase of
900 million yen (up 1.3%) compared with the end of the previous fiscal year. Current assets increased 1,204
million yen from the end of the previous fiscal year to 44,457 million yen. This was mainly due to an 819
million yen increase in notes and accounts receivable–trade, a 520 million yen increase in raw materials andsupplies, and a 511 million yen increase in electronically recorded monetary claims–operating, despite a 1,049
million yen decrease in cash and deposits. Non-current assets fell 304 million yen from the end of the previous
fiscal year to 28,049 million yen. This was mainly due to a 212 million yen decrease in investment securities.
At the end of the first quarter of the fiscal year under review, liabilities totaled 13,498 million yen, a decreaseof 1,249 million yen (down 8.5%) compared with the end of the previous fiscal year. Current liabilities fell
1,155 million yen from the end of the previous fiscal year to 10,975 million yen. This was mainly due to a
602 million yen decrease in income taxes payable, a 581 million yen decrease in notes and accounts payable–
trade, a 534 million yen decrease in accounts payable–other included in other current liabilities, and a 410
million yen decrease in provision for bonuses despite an 838 million yen increase in accrued expenses
included in other under current liabilities. Non-current liabilities fell 94 million yen from the end of the2

previous fiscal year to 2,522 million yen. This was mainly due to an 87 million yen decrease in long-termborrowings.
At the end of the first quarter of the fiscal year under review, net assets totaled 59,008 million yen, an increaseof 2,150 million yen (up 3.8%) compared with the end of the previous fiscal year. This was mainly due to a
1,865 million yen increase in retained earnings as a result of net profit attributable to owners of parent of
2,581 million yen and dividends of surplus of 907 million yen.

(3)

Explanation of Consolidated Financial Results Forecasts and Other Forward-Looking
Information
There is no change to the first six-month and full-year financial results forecasts announced in the consolidated
financial statements for the fiscal year ended March 31, 2022 on May 12, 2022.

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 year
(March 31, 2022)

As of the end of the first quarter ofthe fiscal year under review(June 30, 2022)

AssetsCurrent assets
Cash and deposits

11,551,206

10,501,400

Notes and accounts receivable–trade

9,198,690

10,018,397

Electronically recorded monetary claims–operating

3,519,418

4,030,947

Securities

9,952,268

9,827,930

Merchandise and finished goods

2,744,435

2,763,438

Work in process

3,307,349

3,713,369

Raw materials and supplies

2,391,516

2,911,516

Other591,190694,053

Allowance for doubtful accounts(3,697)(3,718)43,252,378

44,457,334

11,317,187

11,217,735

358,475

364,011

4,079,123

4,077,333

46,43547,665

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

1,639,162

1,592,799

Total property, plant and equipment

17,440,385

17,299,544

Goodwill

595,387

592,568

Customer-related assets

830,848847,682

Intangible assets

Other

436,567

420,440

1,862,803

1,860,690

Investment securities

5,881,220

5,668,442

Retirement benefit assets

1,813,344

1,841,435

Other

1,359,851

1,383,288(3,500)(3,500)Total intangible assets
Investments and other assets

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

4

9,050,916

8,889,666

28,354,106

28,049,901

71,606,484

72,507,236

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

As of the end of the first quarter ofthe fiscal year under review(June 30, 2022)

Liabilities
Current liabilities
Notes and accounts payable–trade4,625,929

4,044,098

Short-term borrowings

995,000

1,235,000

Current portion of bonds payable

300,000

300,000

Income taxes payable

1,786,207

1,183,853

Provision for bonuses

920,836

510,442

Provision for product warranties

98,23994,344

Provision for loss on orders received

32,00839,442Other

3,372,969

3,568,786

Total current liabilities

12,131,190

10,975,967

Long-term borrowings

850,580

763,520

Asset retirement obligations

11,133

11,133

Other

1,754,861

1,747,757

Total non-current liabilities

2,616,574

2,522,411

14,747,765

13,498,378

Share capital

2,565,500

2,565,500

Capital surplus

1,885,187

1,893,291

Retained earnings

49,604,449

51,469,717

Treasury shares(226,384)(226,695)

Total shareholders’ equity

53,828,752

55,701,813

1,853,706

1,710,538

Non-current liabilities

Total liabilities
Net assets
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

5477,683

873,877

2,331,389

2,584,416

698,577

722,627

56,858,719

59,008,857

71,606,484

72,507,236

(2)Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income
Quarterly Consolidated Statement of Income
First three months(Unit: Thousand yen)First three months of the previous
fiscal year
(From April 1, 2021
to June 30, 2021)

First three months of the fiscal year
under review(From April 1, 2022
to June 30, 2022)

Net sales

9,038,653

10,763,292

Cost of sales

4,593,693

4,697,496

Gross profit

4,444,960

6,065,796

Selling, general and administrative expenses

2,413,640

2,637,257

Operating profit

2,031,320

3,428,538

Interest income

11,962

13,905

Dividend income

54,11058,477

Foreign exchange gains

7,523

232,105

Insurance claim and dividend income

Non-operating income

1,935

261

Gain on sale of securities

640

19,133

Miscellaneous income

20,14018,928

Total non-operating income

96,313342,811

Interest expenses

12,319

11,133

Loss on retirement of non-current assets

3,893

0

Non-operating expenses

Loss on sale of securities
Loss on valuation of securities

-

2,614

22,701

86,639Miscellaneous losses

1,205

6,272

Total non-operating expenses

40,120106,659

2,087,513

3,664,690

Gain on sale of non-current assets

-

2,554

Total extraordinary income

-

2,554

Loss on sale of non-current assets

20

1,141

Total extraordinary losses

20

1,141

Ordinary profit
Extraordinary income

Extraordinary losses

Profit before income taxes

2,087,492

3,666,103

Income taxes–current

728,313986,284

Income taxes–deferred(133,225)

93,302

Total income taxes

595,088

1,079,586

1,492,404

2,586,517

Net profit
Net profit attributable to non-controlling interests
Net profit attributable to owners of parent

625,522

4,911

1,466,881

2,581,605

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

ProfitFirst three months of the previous First three months of the fiscal year
fiscal year
under review(From April 1, 2021
(From April 1, 2022
to June 30, 2021)
to June 30, 2022)
1,492,404
2,586,517

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

110,156
415,421(143,167)
439,615

Total other comprehensive income

525,577

296,447

2,017,982

2,882,964

1,901,072
116,9092,834,631
48,333Comprehensive income(attributable to)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7

(3)Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Change in Scope of Consolidation or Adoption of the Equity Method)(Material Changes in the Scope of Consolidation)
RIKEN KEIKI GmbH is included in the scope of consolidation due to its increased importance from thefirst quarter of the fiscal year under review.
(Notes on Substantial Changes in the Amount of Shareholders’ Equity)

Not applicable.
(Changes in Accounting Policies)(Adoption of the Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Company has adopted the “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, June 17, 2021; hereinafter referred to as the “Implementation
Guidance on Fair Value Measurement Accounting Standard”) from the beginning of the first quarter of the
fiscal year under review, adopting new accounting policies defined in the Implementation Guidance on
Fair Value Measurement Accounting Standard over the future, according to the transitional treatment
specified in Paragraph 27-2 of the Implementation Guidance on Fair Value Measurement AccountingStandard. This has no impact on the quarterly consolidated financial statements.

8