Consolidated Financial Results
for the Six Months Ended February 29, 2024 [JGAAP]
April 9, 2024
Company Name: GIKEN LTD.
Securities Code: 6289 (URL https://www.giken.com)
Stock Exchange Listing: Tokyo
Representative: Atsushi Ohira, Representative Director and President and CEO
Contact: Tsuyoshi Tanouchi, Managing Operating Officer
Phone: +81-88-846-2933
Scheduled date to submit the quarterly securities report: April 12, 2024
Scheduled date to commence dividend payments: May 8, 2024
Availability of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing session: No(Figures are rounded down to the nearest million yen)
1.

Consolidated Financial Results for the Six Months Ended February 29, 2024 (from September 1, 2023 to February 29, 2024)(1) Consolidated Results of Operations(% indicates changes from the same period of the previous financial year)
Profit attributable toOperating profit
Ordinary profit
owners of parent

Net sales
Millions of yen

Millions of yen%

Millions of yen%

15,535
4.0
2,417
12.6
2,590
Six months ended February 28, 2023
14,9335.0
2,146 (23.0)
2,194(Note) Comprehensive income: Six months ended February 29, 2024: ¥2,111 million [51.6%]
Six months ended February 28, 2023: ¥1,392 million [(25.9)%]%

Millions of yen%

18.0(23.4)

1,849
1,374

34.6
(27.4)

Six months ended February 29, 2024

Profit per share

Fully diluted profit per share
Yen

Six months ended February 29, 2024
Six months ended February 28, 2023

(2) Consolidated Financial Position

Total assets

Net assets

Millions of yen

As of February 29, 2024
As of August 31, 2023

(Reference) Equity:
2.

Dividends

Equity ratio

Millions of yen

50,88051,388
As of February 29, 2024: ¥40,227 million%

40,22739,544As of August 31, 2023: ¥39,544 million

79.1
77.0

Annual cash dividends per share
End of 1Q

End of 2Q
Yen

End of 3Q
Yen

Year-end
Yen

Fiscal year ended August 31,
20.00
–
2023
Fiscal year ending August 31,
20.00
–
2024
Fiscal year ending August 31,
2024 (Forecast)(Note) Revisions to the forecast of cash dividends most recently announced: None
3.

Yen

–
–

69.00
49.98

Annual
Yen

Yen

–

20.00

40.00

–

20.00

40.00

Earnings Forecast of Consolidated Financial Results for Fiscal Year Ending August 31, 2024 (from September 1, 2023 to August 31,
2024)(% indicates changes from the previous corresponding term)
Profit attributable to
Net sales
Operating profit
Ordinary profit
Profit per shareowners of parent
Millions of yen%

Millions of yen%

Yen

30,0002.5
3,300 10.6
3,400
11.1
(Note) Revision of the forecast of consolidated financial results most recently announced: None

2,400

183.4

89.68

Full year%

Millions of yen%

Millions of yen

* Notes(1) Changes in significant subsidiaries during the six-month period ended February 29, 2024 (changes in specific subsidiaries
involving changes in the scope of consolidation): None
(2) Application of special accounting for preparing quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates and restatements
1) Changes in accounting policies due to the revision of accounting standards: Not applicable
2) Changes in accounting policies other than 1): Not applicable
3) Changes in accounting estimates: Not applicable4) Restatements: Not applicable(4) Total number of issued shares (common stock)1) Total number of issued shares at the end As of February 29,of the period (including treasury shares): 2024
2) Total number of treasury shares at the As of February 29,
end of the period:
20243) Average number of shares during theSix months ended
period (cumulative from the beginning
February 29, 2024of the fiscal year):

28,194,728 shares As of August 31, 28,194,728 shares
2023
1,426,930 shares As of August 31,
977,118 shares
2023
26,807,514 shares Six months ended 27,501,691 shares
February 28,
2023* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit
corporation.
* Explanation on the appropriate use of earnings forecasts, and other special notes

The forecast figures stated above are the prospects based on information currently available and contain largely uncertain el ements.
Actual results may differ from the forecast figures above, depending on various factors such as changes in business conditions.

GIKEN LTD. (6289) Consolidated Financial Results for the Six Months Ended February 29, 2024

Table of Contents of Appendix
1.

Qualitative Information on the Quarterly Financial Results ............................................................................................
(1) Explanation of Operating Results ...............................................................................................................................
(2) Explanation of Financial Position ...............................................................................................................................
(3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements .........................................

2
2
3
3

2.

Quarterly Consolidated Financial Statements and Principal Notes .................................................................................
(1) Quarterly Consolidated Balance Sheet .......................................................................................................................
(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income ..
Quarterly Consolidated Statements of Income
For the six months ended February 29 ....................................................................................................................
Quarterly Consolidated Statements of Comprehensive Income
For the six months ended February 29 ....................................................................................................................
(3) Principal Notes for Quarterly Consolidated Financial Statements ..............................................................................
(Notes on Going Concern Assumption) ......................................................................................................................
(Notes on Significant Changes in the Amount of Shareholders’ Equity .....................................................................
(Application of Special Accounting for Preparing Quarterly Consolidated Financial Statements) ............................
(Revenue Recognition) ...............................................................................................................................................
(Segment Information)................................................................................................................................................

4
4
6

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6
7
8
8
8
8
8
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GIKEN LTD. (6289) Consolidated Financial Results for the Six Months Ended February 29, 2024

1. Qualitative Information on the Quarterly Financial Results(1) Explanation of Operating Results
The Giken Group set a long-term net sales target of 100 billion yen for the fiscal year ending August 31, 2031, and specificinitiatives have been carried out all across the company based on the Long-Term Roadmap GIKEN GOALS 2031, which includes
numerical targets and strategies to achieve the 2031 goal.
In terms of the business environment during the six months under review, construction investment remained strong in both the
public and private sectors, resulting in steady capital investment by customers. However, as construction material prices stayed atelevated levels, a downward trend in construction sizes of public works remained, affecting sales of high-gross-margin products
and parts used in permanent structures. In terms of manufacturing, we revised pricing as prices of materials and parts have remained
elevated. The situation calls for continued close monitoring.
In domestic activities to disseminate our method, we worked to promote the Implant Method* 1 mainly for the strengthening of
national resilience, including recovery and reconstruction from natural disasters, and prevention and mitigation of future disasters.
As a result, the number of projects in which the method was adopted increased steadily. These included repair work on nationalroads damaged by typhoons, widening work on national road bypasses, seawall construction work and bank improvement workfor fishing ports.
As part of the work related to the 2024 Noto Peninsula Earthquake, we opened a temporary office in the Ishikawa prefectural
city of Kanazawa in late January, aiming to facilitate our work to support recovery and reconstruction of affected areas. We havesince been conducting on-site research and making construction method technology proposals. We have realized that press-in
technology, which has helped realize speedy recovery and reconstruction in disaster-affected areas in Japan and overseas, is instrong demand and there is increasing expectations placed on it. We aim to contribute to the earliest possible recovery of the region
by taking advantage of our unique technologies and extensive experience.
In overseas business, which we aim to expand to represent 70% of overall net sales (50% by the fiscal year ending August 31,2031), we aim to establish a new business model that accelerates market expansion, with a focus on Europe and Asia where amarket is beginning to take shape, for the goal of achieving stable growth of the press-in construction market. We are now engaging
in specific activities for this. For other regions, aiming to expand the press-in construction market, we are conducting market
research, etc. to rethink our strategies from the market creation phase and working on initiatives aimed at business expansion.
In Asia, Singapore and Thailand markets are steadily expanding with a background of strong economy in South East Asia region.
In China, we delivered several units of the Silent Piler to Shijiazhuang Tianyuan Technology Group Co., Ltd. (“Tianyuan”), a
major construction machinery dealer in China’s Hebei Province with which we signed a sales agent contract and a designatedfactory contract in 2020. This came as a fruit of our collaboration with the company. In China, we have steadily expanded themarket through strengthened collaboration with Tianyuan and other dealers, as demand grew for the press-in method, which canresolve wide-ranging construction challenges, in disaster prevention and mitigation work and revitalization work on infrastructure
systems, such as water supply and sewerage, in old downtown areas. In South Korea, we delivered the third GYRO PILER*2 ,tubular pile rotary cutting press-in machinery, to a local user. The market for the GYRO PILER has continued to expand in the
country for uses in disaster recovery, expressway and bank construction work, supported by this user’s strong sales capabilities.
Aiming to further expand the market, the Group plans to continue stepping up efforts for technological guidance and new
construction method proposals.
Under such circumstances, for the six months under review, net sales were 15,535 million yen (an increase of 4.0% YoY),
operating profit was 2,417 million yen (an increase of 12.6% YoY), ordinary profit was 2,590 million yen (an increase of 18.0%
YoY), and profit attributable to owners of parent was 1,849 million yen (an increase of 34.6% YoY).

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GIKEN LTD. (6289) Consolidated Financial Results for the Six Months Ended February 29, 2024
The performance by segment are as follows.
(i) Construction Machinery Segment
In Japan, sales remained solid for general machinery, including the Silent Piler F112, a machine that can be used for hard groundconditions. It comes equipped with a flywheel-type auger that has improved drilling capability and construction efficiency of anauger to enable sheet piles to be pressed into hard grounds. On the other hand, a spike in construction material prices affected salesof large-scale specialized machinery. Overseas, product sales grew in Europe and Asia, both regions in which market development
has progressed. Sales also temporarily increased in regions in which strategies are being restructured, including the U.S., as a resultof past activities. As a result, in this segment, net sales were 11,086 million yen (an increase of 9.9% YoY) and operating profit
was 2,985 million yen (an increase of 15.6% YoY) due mainly to the start of contribution to earnings from product price revisions
introduced in the previous fiscal year in response to a spike in material prices, etc.
(ii) Press-in Work Segment
In Japan, as our methods were adopted steadily, construction projects proceeded at a steady pace. These included foundation
work for water gates under a Great East Japan Earthquake reconstruction project (Iwate Prefecture), reinforcement work on
revetments along the Hijikawa river system that were damaged in torrential rain (western Japan heavy rain disaster) in July 2018
(Ehime Prefecture), anti-tremor reinforcement work on revetments along rivers to provide against the Nankai Trough megathrustearthquake (Aichi Prefecture), and construction of waterproof walls at a power plant (Gifu Prefecture). However, due in part to adecrease of one consolidated subsidiary overseas, net sales totaled 4,448 million yen (a decrease of 8.2% YoY) while operating
profit came to 638 million yen (a decrease of 23.3%) for the Press-in Work Segment.
*1*2

A construction method to build Implant Structures, which are resistant to earthquakes, tsunamis, floods, and otherexternal forces, by pressing deeply into the ground structural members with high rigidity and quality.
A press-in machine used in our unique Gyropress Method. This method installs piles by attaching cutting ring bits on
their toes and rotating and pressing them through existing reinforced concrete structures and hard ground to build resilient
Implant Structures. It has been increasingly adopted in Japan as well as overseas as an effective method that allows
rebuilding and reinforcing functions without removing existing structures.

(2) Explanation of Financial Position(Assets)
Total assets as of February 29, 2024 decreased by 507 million yen from the end of the previous consolidated fiscal year to 50,880
million yen. This was the result of an increase of 529 million yen in current assets, including electronically recorded monetaryclaims-operating, and a decrease of 1,037 million yen in non-current assets, including investments and other assets.
(Liabilities)
Total liabilities as of February 29, 2024 decreased by 1,191 million yen from the end of the previous consolidated fiscal year to
10,652 million yen. This was due to decreases of, respectively, 909 million yen in current liabilities, including short-termborrowings, and 281 million yen in non-current liabilities, including long-term borrowings.
(Net assets)
Net assets as of February 29, 2024 increased by 683 million yen from the end of the previous consolidated fiscal year to 40,227
million yen. This was mainly due to an increase in retained earnings.
(3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements
There is no change to the full-year forecasts for the financial year ending August 31, 2024 announced on October 11, 2023.

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GIKEN LTD. (6289) Consolidated Financial Results for the Six Months Ended February 29, 2024

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
As ofAugust 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade, and contract assets
Electronically recorded monetary claims-operating
Finished goods
Work in process
Costs on construction contracts in progress
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Machinery, equipment and vehicles
Land
Construction in progress
Other
Accumulated depreciation
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

-4-

As of
February 29, 2024

9,917
6,144
1,335
3,654
1,416
52
2,488
414
(5)
25,419

9,755
5,060
2,663
3,865
1,620
17
2,684
286
(5)
25,948

8,256
12,553
9,699
1,047
1,548
(13,920)
19,185182

8,412
12,606
9,726
1,276
1,546
(14,479)
19,089
147

2,054
1,901
2,664
(19)
6,601
25,96951,388

1,920
1,853
1,941
(20)
5,695
24,93150,880

GIKEN LTD. (6289) Consolidated Financial Results for the Six Months Ended February 29, 2024

(Millions of yen)
As ofAugust 31, 2023
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations-operating
Short-term borrowings
Income taxes payable
Contract liabilities
Provision for bonuses
Other provisions
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
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
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

-5-

As of
February 29, 2024

1,708
2,107
453
145
4,158
652
4
2,165
11,396

2,155
1,756
41
796
3,898
547
0
1,289
10,486

314
4
129
447
11,8446
0
159
166
10,652

8,958
10,11821,244(880)
39,440

8,958
10,12822,559(1,783)39,862

62
(29)
70
103
39,544
51,388

121
175
68
365
40,22750,880

GIKEN LTD. (6289) Consolidated Financial Results for the Six Months Ended February 29, 2024
(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(For the six months ended February 29)(Millions of yen)
For the six months ended
February 28, 2023
Net sales
Cost of sales
Gross profit (loss)
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Rental income from real estate
Foreign exchange gains
Surrender value of insurance policies
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rental expenses on real estateCommission expenses
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary losses
Impairment loss
Total extraordinary losses
Profit (loss) before income taxes
Income taxes-current
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent-6-

For the six months ended
February 29, 2024

14,933
9,238
5,694
3,548
2,146

15,535
9,525
6,009
3,591
2,417

4
8
37
33
22
106

10
12
37
23
66
76
226

44
9
4
58
2,194

21
10
10
11
53
2,590

115
115
2,078
692
1,385
11
1,374

2,590
740
1,849
1,849

GIKEN LTD. (6289) Consolidated Financial Results for the Six Months Ended February 29, 2024
(Quarterly Consolidated Statements of Comprehensive Income)(For the six months ended February 29)(Millions of yen)
For the six months ended
February 28, 2023
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests-7-

For the six months ended
February 29, 2024

1,385

1,864

35
(14)
(14)
0
6
1,392

58
204
(2)
261
2,126

1,404
(12)

2,126
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GIKEN LTD. (6289) Consolidated Financial Results for the Six Months Ended February 29, 2024
(3) Principal Notes for Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.
(Notes on Significant Changes in the Amount of Shareholders’ Equity)
There is no relevant information.
(Application of Special Accounting for Preparing Quarterly Consolidated Financial Statements)
・Calculation of tax expenses
Tax expenses are calculated by reasonably estimating the effective tax rate after tax effect accounting is applied to the
profit before tax for the consolidated fiscal year which includes the six months under review and then multiplying the profit
before tax by said estimated effective tax rate.
(Revenue Recognition)
The information on the disaggregation of revenue from contracts with customers is shown in the “(Segment Information),(3) Principal Notes for Quarterly Consolidated Financial Statements, 2. Quarterly Consolidated Financial Statements andPrincipal Notes.”-8-

GIKEN LTD. (6289) Consolidated Financial Results for the Six Months Ended February 29, 2024
(Segment Information)
I
For the six months ended February 28, 2023 (September 1, 2022 to February 28, 2023)
1. Information on the Amounts of Net Sales and Profit/Loss by Reportable Segments and Information on the
Disaggregation of Revenue(Millions of yen)
Reportable segments

Posted amount to the

Adjusted
Total

quarterly consolidated
statements of income(Note 2)amount(Note 1)

Construction
Machinery

Press-in Work

9,457

3,308

12,766-

12,766

628

1,539

2,167

-

2,167

10,085

4,848

14,933-

14,933

10,085

4,848

14,933-

14,933

497

215

713

(713)

-

Total

10,583

5,063

15,646(713)

14,933

Segment profit

2,582

831

3,413

(1,267)2,146

Net sales
Japan
Other regions
Revenue from contracts
with customers
Net sales to externalcustomers
Intersegment net sales
and transfer(Notes) 1. The segment profit adjustment of negative 1,267 million yen includes inter-segment transaction
eliminations of negative 78 million yen and corporate expenses not allocated to any reportable segment ofnegative 1,188 million yen. The corporate expenses are mainly general administrative expenses notbelonging to any reportable segment.
2. Segment profit is adjusted with operating profit presented in the quarterly consolidated statement of income.
2.

Information on Impairment Loss for Non-current Assets by Reportable Segment(Millions of yen)
Construction
Machinery

Impairment loss

Corporate andelimination

Press-in Work
-

-

115

Total
115

(Note) The amount of “Corporate and elimination” represents an impairment loss on corporate assets, which do notbelong to any reportable segment.

9

GIKEN LTD. (6289) Consolidated Financial Results for the Six Months Ended February 29, 2024II

For the six months ended February 29, 2024 (September 1, 2023 to February 29, 2024)
1. Information on the Amounts of Net Sales and Profit/Loss by Reportable Segments and Information on the
Disaggregation of Revenue(Millions of yen)
Reportable segments
Construction
Machinery

Press-in Work

Posted amount to thequarterly consolidated

Adjusted
amountTotal

statements of income(Note 2)

(Note 1)

Net sales
Japan

9,206

4,308

13,515-

13,515

Other regions

1,879

140

2,019

-

2,019

Revenue from contracts
with customers

11,086

4,448

15,535-

15,535

11,086

4,448

15,535-

15,535

200

89

290

(290)

-

Total

11,287

4,537

15,825(290)

15,535

Segment profit

2,985

638

3,623

(1,205)

2,417

Net sales to externalcustomers
Intersegment net sales
and transfer(Notes) 1. The segment profit adjustment of negative 1,205 million yen includes inter-segment transaction
eliminations of 44 million yen and corporate expenses not allocated to any reportable segment of negative
1,249 million yen. The corporate expenses are mainly general administrative expenses not belonging to any
reportable segment.
2. Segment profit is adjusted with operating profit presented in the quarterly consolidated statement of income.
2.

Information on Impairment Loss for Non-current Assets by Reportable Segment
There is no relevant information.

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