Consolidated Financial Results
for the Three Months Ended November 30, 2023 [JGAAP]
January 10, 2024
Company Name: GIKEN LTD.
Stock Code: 6289 (URL https://www.giken.com)
Stock Exchange Listing: Tokyo
Representative: Atsushi Ohira, President and CEO
Contact: Tsuyoshi Tanouchi, Managing Operating Officer
Phone: +81-88-846-2933
Scheduled date to submit the quarterly securities report: January 12, 2024
Scheduled date to commence dividend payments: –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 Three Months Ended November 30, 2023 (from September 1, 2023 to November 30, 2023)(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
Three months ended November 30,
2023
Three months ended November 30,
2022

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

7,418

(0.9)

1,198

6.7

1,265

7.2

872

21.5

7,482

4.5

1,123

(18.8)

1,180(16.8)

717(22.1)(Note) Comprehensive income: Three months ended November 30, 2023: ¥1,086 million [57.0%]
Three months ended November 30, 2022: ¥692 million [(20.5)%]
Profit per share

Fully diluted profit per share
Yen

Three months ended November 30,
2023
Three months ended November 30,
2022

Yen

32.49

–

26.10

–

(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

As of November 30, 2023
As of August 31, 2023

(Reference) Equity:
2.

Equity ratio
Millions of yen

49,904
51,388
As of November 30, 2023: ¥39,171 million%

39,171
39,544As of August 31, 2023: ¥39,544 million

78.5
77.0

Dividends
Annual cash dividends per share
End of 1Q

End of 2Q
Yen

End of 3Q
Yen

Fiscal year ended August
20.00–
31, 2023
Fiscal year ending August–
31, 2024
Fiscal year ending August
20.00
31, 2024 (Forecast)(Note) Revisions to the forecast of cash dividends most recently announced: None3.

Year-end
Yen

Annual
Yen

Yen

–

20.00

40.00

–

20.00

40.00

Earnings Forecast of Consolidated Financial Resultsfor 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%

Millions of yen%

Millions of yen%

Yen

15,300
2.5
2,200
2.5
2,250
2.5
1,600
16.4
59.79
First half
30,0002.5
3,300 10.6
3,400
11.1
2,400 183.4
89.68
Full year(Notes) 1. Revision of the forecast of consolidated financial results most recently announced: None
2. The Company’s Board of Directors resolved on the acquisition of treasury shares at a meeting on July 21, 2023. The profit per share
figure in the earnings forecast of consolidated financial results reflects the impact of the treasury share acquisition.

* Notes(1) Changes in significant subsidiaries during the three-month period ended November 30, 2023 (changes in specificsubsidiaries 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 November 30,of the period (including treasury shares): 2023
2) Total number of treasury shares at the As of November 30,
end of the period:
2023
3) Average number of shares during theThree months ended
period (cumulative from the beginning
November 30, 2023of the fiscal year):

28,194,728 shares As of August 31,
2023
1,444,388 shares As of August 31,
2023
26,847,220 shares Three months
ended November
30, 2022

28,194,728 shares
977,118 shares
27,501,692 shares* 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 elements.
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 Three Months Ended November 30, 2023

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. 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 three months ended November 30 ...............................................................................................................
Quarterly Consolidated Statements of Comprehensive Income
For the three months ended November 30 ...............................................................................................................
(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)................................................................................................................................................

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2
2
3
3
4
4
6
6
7
8
8
8
8
8
9

GIKEN LTD. (6289) Consolidated Financial Results for the Three Months Ended November 30, 2023

1. Qualitative Information on the Quarterly Financial Results(1) Explanation of Operating Results
Aiming for dramatic growth, the Giken Group set in the Medium-Term Management Plan (for the period from September 2021
to August 2024) a long-term net sales target of 100 billion yen for the fiscal year ending August 31, 2031, and specific initiatives
have been carried out all across the company based on the Long-Term Roadmap Giken Goals 2031, which includes numericaltargets and strategies to achieve the 2031 goal.
In terms of the business environment during the three months under review, construction investment remained strong in both the
public and private sectors, resulting in steady capital investment by customers. However, as steel and other construction material
prices stayed at elevated levels, a downward trend in public works construction volume remained, affecting sales of high-grossmargin products and parts used in permanent structures. In terms of manufacturing, prices of materials and parts have remained
elevated, and the situation calls for continued close monitoring.
In our domestic activities to disseminate the Press-in Method, we worked to promote the Implant Method*1 mainly for thestrengthening 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 prefectural roads damaged by torrential rain, work on protective walls for newly built high-specification roads,
improvements on river revetments, and for bridge foundations.
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 business model that accelerates market expansion, with a focus on Europe and Asia where a market is
beginning to take shape, for the goal of achieving stable growth of the press-in construction market. For other regions, we plan torethink our strategies and are conducting market research, etc. to work out measures that can realize new development.
In Asia, we delivered the GYRO PILER*2 tubular pile rotary cutting press-in machinery to a major user and partner intechnological tie-up in Singapore. This was the first-ever delivery in Southeast Asia. Going forward, we will work with Giken
Seisakusho Asia Pte., Ltd., a group company headquartered in Singapore, to develop the market for the Gyropress Method.
In South America, a local company that completed pilot construction work under the Giken Group’s technological guidance foranti-bursting work on tailings dams recognized the advantages of the press-in technology and decided to use it in continuing
projects. We plan to continue to assist in the projects as part of our effort to contribute to solving social issues.
Under such circumstances, for the three months under review, net sales were 7,418 million yen (a decrease of 0.9% YoY),
operating profit was 1,198 million yen (an increase of 6.7% YoY), ordinary profit was 1,265 million yen (an increase of 7.2%
YoY), and profit attributable to owners of parent was 872 million yen (an increase of 21.5% YoY).
The performance by segment are as follows.
(i) Construction Machinery Segment
In Japan, sales remained solid for the Silent Piler F112, the successor of the Silent Piler F111 (with specifications for hardground) for 400 mm-width U-shape sheet piles that features improved excavating capability and construction efficiency in hardground. In the overseas business, product sales in Brazil and sales of GYRO PILER in Singapore contributed to earnings. As aresult, in this segment, net sales were 5,280 million yen (an increase of 5.1% YoY) and operating profit was 1,518 million yen (anincrease of 13.7% YoY).
(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), landslide control piles, construction of protective walls for roads at sites of collapse (Hokkaido), and repair
work on reservoir embankments (Kyoto Prefecture). However, due in part to a decrease of one consolidated subsidiary overseas,
net sales for the Press-in Work segment came to 2,137 million yen (a decrease of 13.0% YoY). Operating profit came to 299 million
yen (a decrease of 28.5% YoY) as there were few high-margin projects and personnel expenses increased.
*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.

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GIKEN LTD. (6289) Consolidated Financial Results for the Three Months Ended November 30, 2023
(2) Explanation of Financial Position(Assets)
Total assets as of November 30, 2023 decreased by 1,484 million yen from the end of the previous consolidated fiscal year to49,904 million yen. This was due to decreases of, respectively, 413 million yen in current assets, including cash and deposits, and1,070 million yen in non-current assets, including investments and other assets.
(Liabilities)
Total liabilities as of November 30, 2023 decreased by 1,111 million yen from the end of the previous consolidated fiscal year
to 10,732 million yen. This was due to decreases of, respectively, 820 million yen in current liabilities, including provision forbonuses, and 291 million yen in non-current liabilities, including long-term borrowings.
(Net assets)
Net assets as of November 30, 2023 decreased by 372 million yen from the end of the previous consolidated fiscal year to 39,171
million yen. This was mainly due to an increase in treasury shares.
(3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements
There is no change in the full-year earnings forecast announced on October 11, 2023.

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GIKEN LTD. (6289) Consolidated Financial Results for the Three Months Ended November 30, 2023

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
November 30, 2023

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

8,772
5,185
2,241
3,897
1,680
49
2,915
268
(5)
25,005

8,256
12,553
9,699
1,047
1,548
(13,920)
19,185
182

8,383
12,633
9,704
1,203
1,538
(14,290)
19,173
169

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

1,856
1,851
1,867
(20)
5,554
24,89849,904

GIKEN LTD. (6289) Consolidated Financial Results for the Three Months Ended November 30, 2023

(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
November 30, 2023

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

2,244
1,786
59
390
3,795
226
–
2,073
10,575

314
4
129
447
11,844

16
2
138
156
10,732

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

8,958
10,11821,581(1,805)38,853

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

76
172
69
318
39,171
49,904

GIKEN LTD. (6289) Consolidated Financial Results for the Three Months Ended November 30, 2023
(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(For the three months ended November 30)(Millions of yen)
For the three months ended
November 30, 2022
Net sales
Cost of sales
Gross profit (loss)
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest 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
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit (loss)
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 three months ended
November 30, 2023

7,482
4,668
2,813
1,690
1,123

7,418
4,417
3,000
1,801
1,198

3
21
39
–
15
80

9
18
–
66
17
112

13
5
–
–
3
22
1,180
1,180
451
728
11
717

1
5
10
27
0
44
1,265
1,265
393
872
–
872

GIKEN LTD. (6289) Consolidated Financial Results for the Three Months Ended November 30, 2023
(Quarterly Consolidated Statements of Comprehensive Income)(For the three months ended November 30)(Millions of yen)
For the three months ended For the three months ended
November 30, 2022
November 30, 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-

728

872

12
15
(64)
0
(36)
692

14
201
(1)
214
1,086

686
5

1,086
–

GIKEN LTD. (6289) Consolidated Financial Results for the Three Months Ended November 30, 2023
(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 three 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 Three Months Ended November 30, 2023
(Segment Information)
I
For the three months ended November 30, 2022 (September 1, 2022 to November 30, 2022)
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 thequarterly consolidated
statements of income(Note 2)Adjusted
amount(Note 1)

Total

Construction
Machinery

Press-in Work

4,829

1,833

6,662

–

6,662

196

622

819

–

819

5,026

2,455

7,482

–

7,482

5,026

2,455

7,482

–

7,482

350

132

483

(483)

–

Total

5,376

2,588

7,965

(483)

7,482

Segment profit

1,335

419

1,754

(631)

1,123

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 631 million yen includes inter-segment transaction eliminationsof negative 97 million yen and corporate expenses not allocated to any reportable segment of negative 533
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.
II

For the three months ended November 30, 2023 (September 1, 2023 to November 30, 2023)
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 thequarterly consolidated
statements of income(Note 2)Adjusted
amount(Note 1)

Total

Construction
Machinery

Press-in Work

4,413

2,061

6,475

–

6,475

866

76

943

–

943

5,280

2,137

7,418

–

7,418

5,280

2,137

7,418

–

7,418

108

47

155

(155)

–

Total

5,388

2,185

7,573

(155)

7,418

Segment profit

1,518

299

1,817

(619)

1,198

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 619 million yen includes inter-segment transaction eliminationsof 22 million yen and corporate expenses not allocated to any reportable segment of negative 641 million
yen. The corporate expenses are mainly general administrative expenses not belonging to any reportablesegment.

9

GIKEN LTD. (6289) Consolidated Financial Results for the Three Months Ended November 30, 2023

2. Segment profit is adjusted with operating profit presented in the quarterly consolidated statement of income.

10