Consolidated Financial Results
for the Fiscal Year Ended August 31, 2023 [JGAAP]
October 11, 2023

Company Name: GIKEN LTD.
Stock Code: 6289 (URL: https://www.giken.com)
Stock Exchange Listing: Tokyo
Representative: Shinnosuke Moribe, Representative Director and President
Contact: Yusei Morino, Director
Phone: +81-88-846-2933
Scheduled date of Ordinary General Meeting of Shareholders: November 28, 2023
Scheduled date to commence dividend payments: November 29, 2023
Scheduled date to submit the Annual Securities Report: November 29, 2023
Availability of supplementary briefing material on annual results: Yes
Holding of Annual Results Briefing Session: Yes
1.
(1)(Figures are rounded down to the nearest million yen)
Consolidated Financial Results for the Fiscal Year Ended August 31, 2023 (from September 1, 2022 to August 31, 2023)
Consolidated Results of Operations(% indicates changes from the previous corresponding term)
Profit attributable toOperating profit
Ordinary profit
owners of parent

Net salesYear ended August 31, 2023
Year ended August 31, 2022
(Note) Comprehensive income:Millions of yen%

Millions of yen

Profit per share
Yen

Year ended August 31, 2023
30.82
Year ended August 31, 2022
117.65(Reference) Equity in earnings of affiliated companies:(2) Consolidated Financial Position

Fully diluted profit
per share

Total assets

Net cash provided by (usedin) operating activities

Millions of yen

3.

Net cash provided by (usedin) investing activities

–
–
–

Yen

End of 2Q
Yen

35.00
20.00

–
–

20.00

–

Yen

Yen

%

%

%

(73.8)
5.2

Operating profit to
net sales

%

10.2
15.2

Net assets per share

Yen

1,452.90
1,481.41

Net cash provided by (usedin) financing activities

Cash and cash equivalents at
end of period

Millions of yen

Millions of yen(156)(4,216)Year-end

846
3,234

77.0
74.5

Millions of yen

End of 3Q

Millions of yen

5.8
9.1

Equity ratio(1,975)(1,940)

Annual cash dividends per share
End of 1Q

Year ended August 31, 2022
Year ended August 31, 2023
Year ending August 31, 2024
(Forecast)%%(36.7)
16.1

Ordinary profit tototal assets

39,544
41,256
As of August 31, 2022: ¥40,741 million

2,039
5,923

Dividends

3,060
4,832

Rate of return on
equityNet assets

Millions of yen

Year ended August 31, 2023
Year ended August 31, 2022

Millions of yen

2.1
117.62
8.1
Year ended August 31, 2023: ¥ – million
Year ended August 31, 2022: ¥ – million

Year ended August 31, 2023
51,388Year ended August 31, 2022
54,694(Reference) Equity:
As of August 31, 2023: ¥39,544 million

2.

Yen

–

Millions of yen(3) Consolidated Cash Flows%

29,272(3.6)
2,983 (35.3)
30,378
10.0
4,613
15.4
Year ended August 31, 2023: ¥883 million [(74.8)%]
Year ended August 31, 2022: ¥3,503 million [1.4%]

Annual
70.00
40.00

20.00

40.00

Dividends to
net assets(consolidated)%%

Total dividends Payout ratio
paid (annual) (consolidated)

Yen Millions of yen

35.00
20.00

5,147
5,598

1,925
1,094

59.5
129.8

4.8
2.7

44.6

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% Millions of yen% Millions of yen%
Yen
First half
15,300
2.5
2,200
2.5
2,250
2.5
1,600
16.4
59.79
Full year
30,0002.5
3,300 10.6
3,400
11.1
2,400 183.4
89.68(Note) 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 fiscal year ended August 31, 2023 (changes in specific subsidiaries involving changes in the scopeof consolidation): Yes
Newly added: - (Name) -,Excluded: One company (Name) J Steel Group Pty Limited(2) Changes in accounting policies, changes in accounting estimates and restatements
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1): Not applicable
3) Changes in accounting estimates: Not applicable4) Restatements: Not applicable(3) Total number of issued shares (common stock)1) Total number of issued shares at the end of As of August 31,
the period (including treasury shares):2023
2) Total number of treasury shares at the end As of August 31,of the period:
2023
3) Average number of shares during theYear ended August
period:31, 2023

28,194,728 shares As of August 31,
2022
977,118 shares As of August 31,
2022
27,474,392 shares Year ended August
31, 2022

28,194,728 shares
693,034 shares
27,492,033 shares(Reference) Summary of the Non-consolidated Financial Results
Overview of the Non-consolidated Financial Results for the Fiscal Year Ended August 31, 2023 (from September 1, 2022 to August 31, 2023)(1) Non-consolidated Results of Operations
Year ended August 31, 2023
Year ended August 31, 2022

Net sales

Ordinary profit

Millions of yen

20,982
21,417

(2.0)
4.6

2,978
4,593

ProfitMillions of yen％(35.2)
23.5

856
3,350

％

(74.4)
9.6

Fully diluted profit per
share

Profit per share
Yen

Year ended August 31, 2023
Year ended August 31, 2022

Millions of yen％(% indicates changes from the previous corresponding term)

31.16
121.87(2) Non-consolidated Financial Position
Total assets

Millions of yen

As of August 31, 2023
45,821
As of August 31, 2022
47,906(Reference) Equity:
As of August 31, 2023: ¥36,685 million

Yen–

121.83

Net assets

Millions of yen

Equity ratio

36,68537,873As of August 31, 2022: ¥37,873 million

Net assets per share
％

80.1
79.1

* Financial results reports are exempt from audit 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.
Please refer to page 4 of the attached material for the above forecasts.

Yen

1,347.86
1,377.14

GIKEN LTD. (6289) Consolidated Financial Results for the Fiscal Year Ended August 31, 2023

Table of Contents of Appendix
1. Overview of Business Results, etc. ................................................................................................................................................2(1) Overview of Business Results for the Current Fiscal Year ...................................................................................................2(2)

Overview of Financial Position for the Current Fiscal Year .................................................................................................3(3)

Outlook on the Next Fiscal Year...........................................................................................................................................4(4)

Basic Policy on Profit Distribution, and Dividends for the Current and Next Fiscal Years ..................................................5

2. Basic Policy regarding Selection of Accounting Standards ...........................................................................................................5
3. Consolidated financial statements and Principal Notes .................................................................................................................6(1) Consolidated Balance Sheets ................................................................................................................................................6(2)

Consolidated Statements of Income and Comprehensive Income ........................................................................................8(Consolidated Statements of Income) ...................................................................................................................................8(3)(Consolidated Statements of Comprehensive Income) .........................................................................................................9
Consolidated Statements of Changes in Net Assets ............................................................................................................ 10(4)Consolidated Statements of Cash Flows ............................................................................................................................. 12(5)

Notes to Consolidated Financial Statements ....................................................................................................................... 13(Notes on Going Concern Assumption) .............................................................................................................................. 13(Notes to Consolidated Balance Sheets) ............................................................................................................................. 13(Changes in Accounting Policies) ....................................................................................................................................... 13(Segment Information, etc.) ................................................................................................................................................ 14(Per Share Information) ...................................................................................................................................................... 19(Material Subsequent Events) ............................................................................................................................................. 19-1-

GIKEN LTD. (6289) Consolidated Financial Results for the Fiscal Year Ended August 31, 2023

1.

Overview of Business Results, etc.
(1)

Overview of Business Results for the Current Fiscal Year
Aiming for a dramatic growth, the Giken Group has set in the Medium-Term Management Plan (for the period from September

2022 to August 2024) a long-term target sales of 100 billion yen for the fiscal year ending August 2031. In the consolidated fiscal
year under review, the middle year of the Medium-Term Management Plan, we announced the Long-Term Roadmap Giken Goals
2031, which includes numerical targets and strategies to achieve the 2031 goal, and specific initiatives were carried out all acrossthe company.
In terms of the business environment during the fiscal year under review, domestic construction investment remained solid in
both public and private sectors, and so did capital investment by customers. However, amid soaring steel and other construction
material prices, material costs have come to represent a larger proportion of public works budgets, which resulted in a downward
trend in construction volume. This has affected sales of high-gross margin products and parts used in permanent structures.
Furthermore, manufacture of machinery, etc. was affected by a cheaper yen and other factors as material prices for components
have remained elevated. In order to cushion the rises in costs of purchasing components, etc. amid such a difficult businessenvironment, we raised prices of finished goods by 10%, as we did in the previous fiscal year, beginning with orders received in
May to pass on the cost rises.
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 mitigationof future disasters. As a result, the number of projects in which the method was adopted increased steadily. These included repair
work on national roads and training jetties damaged by torrential rain, seawall construction work, anti-seismic reinforcement onriver revetments, improvements on port revetments, road widening work, and anti-erosion measures for bridges.
*1

A construction method to build Implant Structures, which are resistant to earthquakes, tsunamis, floods, and other external
forces, by pressing deeply into the ground structural members with high rigidity and quality

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 market structure that can achieve stable growth, 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 Europe, in a project to develop new technologies to improve revetment of the world heritage-listed canal in Amsterdam, theNetherlands, G-Kracht B. V., a joint venture in which Giken Europe B.V., our Netherlands-headquartered Group company, hasa stake, completed the press-in process of the pilot construction works in March and then the entire process, including the postprocess, in July. The city of Amsterdam has expressed satisfaction in our work. Discussions are underway on the next,
commercialization phase*2. In Germany, instances of adoption of our methods have increased mainly in counterflooding andrailway projects, which led to increases in machinery rentals. We are thus steadily developing the German market.
In Asia, machinery sales remained solid in Singapore, Thailand, Taiwan, etc. as the press-in construction market expanded. In
India, our new market, we delivered a full set of GRB system to a user we won in the previous fiscal year in January. At the site,
construction work steadily proceeded under the technological guidance by Group company Giken Seko Co., Ltd., on course toleave a successful track record, which we need to develop the market for press-in construction.
In Brazil, where we aim to build business, we launched an initiative that takes advantage of the Japan International Cooperation
Agency (JICA)’s support program to conduct anything from market research to business plan designing in a joint endeavor with
MITSUI & CO., LTD. We began by conducting research on local needs related to the press-in technology.
In Oceania, we terminated in June the joint venture relationship with Australia-headquartered J Steel Group Pty Limited(hereinafter “J Steel”), which was our consolidated subsidiary, due to differences in management policy. After the termination of
the joint venture relationship, J Steel has continued business as a user in the Oceania market.
*2

In the commercialization phase, ordering of construction work on segments totaling 3.3 kilometers over eight years isguaranteed.

In rolling out products for underground development, Giken Seko completed the installation work of two units of automatedbicycle parking facility ECO Cycle, which provide an underground parking space for 400 bicycles in total, in the Ichinohashi
Park (Minato-ku, Tokyo). In July, the Minato Ward office opened the parking space under the name of Ichinobashi Park Bicycle-2-

GIKEN LTD. (6289) Consolidated Financial Results for the Fiscal Year Ended August 31, 2023

Parking Lot. This marks the 25th locations of delivery of ECO Cycle, which now totals 61 facilities nationwide. In addition,
Giken Seko is working on the installation of two units of ECO Cycle in an underground parking space with a capacity of 504
bicycles near Shin-Tsunashima Station of Tokyu Shin-Yokohama Line (Kohoku-ku, Yokohama), which opened in March.
In terms of efforts to advertise the press-in technology to the world, we opened in May RED HILL 1967, a facility promoting
the press-in technology we had been building in Akaoka in the Kochi prefectural city of Konan. Since the opening, the facility has
been visited by more than 3,000 people, including customers, general contractors and consultants to general visitors. We expect it
to have a significant impact as a facility to promote a construction method revolution on a global scale.
Under such circumstances, for the current consolidated fiscal year, net sales were 29,272 million yen (a decrease of 3.6% fromthe previous fiscal year), operating profit was 2,983 million yen (a decrease of 35.3%), ordinary profit was 3,060 million yen (adecrease of 36.7%), and profit attributable to owners of parent was 846 million yen (a decrease of 73.8%). We note that, due to thetermination of the joint venture relationship with a consolidated subsidiary, 1,367 million yen in loss on liquidation of subsidiaries
and associates was booked under extraordinary losses.
The performance by segment are as follows.
(i)

Construction Machinery Segment
Sales were solid for our new SILENT PILER F112, which comes equipped with a flywheel-type pile auger that have improved

excavating capability and construction efficiency to enable sheet piles to be pressed into hard grounds in mountainous areas,
grounds that have obstacles, etc. Sales were also brisk for general-purpose machines, as well as attachments for them. On the other
hand, reflecting small sales of large-scale models with high gross margins, including GYRO PILER, and increased selling, generaland administrative expenses, net sales dropped 0.5% from a year earlier to 20,752 million yen and segment profit decreased 23.1%
from a year earlier to 4,668 million yen.
(ii)

Press-in Work Segment
While our methods were adopted steadily, construction projects proceeded at a steady pace. These included improvement workon sea embankments as a countermeasure against Nankai megathrust earthquakes (Kochi Prefecture), improvement work on
revetments as a measure against quakes and storm surges (Tokyo), 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), reinforcement
work on revetments at a fishing port (Hokkaido), construction work of protective walls for an expressway extension project (Kyoto
Prefecture), and support piles of landing piers in a U.S. military warehouse district (Kanagawa Prefecture). However, as a large
overseas project, for which work was done mainly in the previous fiscal year, was completed and the number of construction
projects with high gross margins decreased, net sales for the Press-in Work segment decreased 10.6% from a year earlier to 8,519
million yen, while segment profit dropped 7.7% to 875 million yen.
(2)

Overview of Financial Position for the Current Fiscal Year(i)

Assets, Liabilities and Net Assets
Total assets as of the end of the current consolidated fiscal year decreased by 3,305 million yen compared to the end of theprevious consolidated fiscal year to 51,388 million yen. Current assets decreased by 4,698 million yen to 25,419 million yen andnon-current assets increased by 1,392 million yen to 25,969 million yen from the end of the previous consolidated fiscal year.
The decrease in current assets was mainly due to decreases of 2,901 million yen in cash and deposits and combined 2,220
million yen in notes and accounts receivable-trade, and contract assets, although there was an increase of 861 million yen infinished goods.
The increase in non-current assets was mainly due to a 1,915 million yen increase in investments and other assets, while there
was a 470 million yen decrease in property, plant and equipment, including machinery, equipment and vehicles.
Total liabilities at the end of the current consolidated fiscal year decreased by 1,594 million yen compared to the end of theprevious consolidated fiscal year to 11,844 million yen. Current liabilities decreased by 707 million yen to 11,396 million yen andnon-current liabilities decreased by 886 million yen to 447 million yen from the end of the previous consolidated fiscal year.
The decrease in current liabilities was mainly due to a decrease of 908 million yen in income taxes payable.
The decrease in non-current liabilities was mainly due to a decrease of 722 million yen in other.
Net assets as of the end of the current consolidated fiscal year decreased by 1,711 million yen compared to the end of the-3-

GIKEN LTD. (6289) Consolidated Financial Results for the Fiscal Year Ended August 31, 2023

previous consolidated fiscal year to 39,544 million yen. This was mainly due to a decrease of 1,256 million yen in shareholders’equity. The equity ratio increased to 77.0% from 74.5% at the end of the previous consolidated fiscal year due to the decrease intotal assets. Net assets per share decreased from 1,481.41 yen at the end of the previous consolidated fiscal year to 1,452.90 yen
at the end of the current fiscal year.
(ii)

Cash Flow
Cash and cash equivalents (hereinafter “cash”) at the end of the current consolidated fiscal year decreased by 451 million yen

compared to the end of the previous consolidated fiscal year to 5,147 million yen. The status of each cash flow is as follows.
(Cash Flow from Operating Activities)
Net cash provided by operating activities decreased by 3,883 million yen compared to the previous consolidated fiscal year to2,039 million yen. This was mainly due to profit before income taxes of 1,577 million yen.
(Cash Flow from Investing Activities)
Net cash used in investing activities decreased by 4,060 million yen compared to the previous consolidated fiscal year to 156
million yen. This was mainly due to proceeds from withdrawal of time deposits of 11,070 million yen and payments into time
deposits of 8,620 million yen.
(Cash Flow from Financing Activities)
Net cash used in financing activities increased by 35 million yen compared to the previous consolidated fiscal year to 1,975
million yen. This was mainly due to dividends paid of 1,512 million yen.
Year ended August 31, 2021

Year ended August 31, 2022

Year ended August 31, 2023

Shareholders’ equity ratio (%)

75.7

74.5

77.0

Market value-based
shareholders’ equity ratio (%)

251.3

163.7

107.5

Interest-bearing debt to cash
flow ratio (%)

18.5

24.3

40.8

Interest coverage ratio (times)

720.8

407.2

39.0

(Note) Equity ratio: Equity divided by total assets
Market value-based shareholders’ equity ratio : market capitalization divided by total assets
Interest-bearing debt to cash flow ratio : interest-bearing debt divided by operating cash flows
Interest coverage ratio : operating cash flow divided by interest payment
1.

All indicators are calculated using consolidated financial data.

2.

Market capitalization is calculated by multiplying the closing share price at the end of the fiscal year by the number of shares
outstanding (after deducting treasury shares) at the end of the period.

3.

Operating cash flows represent the cash flows from operating activities indicated in the consolidated statements of cash flows.
Interest-bearing debt includes all liabilities reported in the consolidated balance sheet, on which interest is paid. The interest
payment represents the amount of interest payment indicated in the consolidated statement of cash flows.

(3)

Outlook on the Next Fiscal YearFor the Construction Machinery Segment, we expect solid infrastructure investments in Japan in areas including measures tostrengthen national resilience and measures related to national security, expressways, and ports. On the other hand, we will needto remain alert on the impacts of spikes in prices of steel materials, production materials, etc. and geopolitical risk. In overseas
business, we will step up efforts for expansion, while focusing resources on regions where markets are beginning to take shape.
In the Press-in Work Segment, we expect adoption of the Implant Method to increase in projects including infrastructure
remodeling of piers and river dikes, expressway renewal, and (BCP related) disaster prevention initiatives private companies
independently undertake.
In such a business environment, for the next consolidated fiscal year (ending August 2024), we expect consolidated net salesof 30,000 million yen (an increase of 2.5% from the previous consolidated fiscal year), operating profit of 3,300 million yen (an-4-GIKEN LTD. (6289) Consolidated Financial Results for the Fiscal Year Ended August 31, 2023

increase of 10.6%), ordinary profit of 3,400 million yen (an increase of 11.1%), and profit attributable to owners of parent of
2,400 million yen (an increase of 183.4%).
(4)

Basic Policy on Profit Distribution, and Dividends for the Current and Next Fiscal Years
The Company has regarded the stable distribution of profits to its shareholders as a top priority. Its basic policy is toappropriately distribute profits in line with its earnings as well as to enhance internal reserves for long-term business development.
For the fiscal year under review, the Company plans to pay a year-end dividend of 20 yen per share. As a result, combined with
the interim dividend of 20 yen per share already paid, the annual dividend will be 40 yen per share.
For the next fiscal year, we forecast a full-year dividend of 40 yen per share, consisting of an interim dividend of 20 yen and a
year-end dividend of 20 yen.
We will use our internal reserves to strengthen our financial position, as well as for capital investment and development
investment to achieve sustainable growth as a development-based company.

2.

Basic Policy regarding Selection of Accounting Standards
The Group's policy is to adopt the Japanese standards for a while in order to secure the comparability of consolidated financial
statements with domestic companies. Carefully watching future developments concerning IFRS adoption, we will work toestablish a system to properly handle this matter.

-5-

GIKEN LTD. (6289) Consolidated Financial Results for the Fiscal Year Ended August 31, 2023

3.

Consolidated financial statements and Principal Notes(1)

Consolidated Balance Sheets

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
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
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

-6-

As of
August 31, 2022

(Millions of yen)
As ofAugust 31, 2023

12,818
8,365
1,009
2,793
1,890
48
2,757
438
(3)
30,117

9,917
6,144
1,335
3,654
1,416
52
2,488
414
(5)
25,4197,604(3,369)4,235
12,956(8,789)
4,166
9,722
1,119
1,678
(1,266)412
19,656233

8,256(3,684)
4,571
12,553(9,035)
3,518
9,699
1,047
1,548
(1,200)348
19,185
182

1,211
1,767
1,724
(17)
4,686
24,57654,694

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

GIKEN LTD. (6289) Consolidated Financial Results for the Fiscal Year Ended August 31, 2023

As ofAugust 31, 2022

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
Provisions for maintenance of product’s function
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
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-7-(Millions of yen)
As ofAugust 31, 2023

1,877
1,261
875
1,053
4,375
746
19
1,894
12,103

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

393
4
84
852
1,334
13,438

314
–
4
129
447
11,844

8,958
10,135
21,908(305)
40,696

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

18
8
14
3
44
514
41,25654,694

62
–
(29)
70
103
–
39,544
51,388

GIKEN LTD. (6289) Consolidated Financial Results for the Fiscal Year Ended August 31, 2023

(2)

Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)Net sales
Cost of sales
Gross profit (loss)
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Gain on sales of scraps
Rental income from real estate
Insurance claim income
Foreign exchange gains
Outsourcing service income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rental expenses on real estate
Share issuance costs
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Impairment loss
Loss on liquidation of subsidiaries and associates
Total extraordinary losses
Profit (loss) before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent(Millions of yen)
Fiscal year ended
August 31, 2022

-8-30,37818,653
11,725
7,111
4,613

Fiscal year ended
August 31, 2023

29,272
18,563
10,709
7,725
2,983

8
23
15
57
14
95
5
29
250

2
24
5
69
10
–
25
33
170

14
8
1
–
7
31
4,832

55
17
–
8
11
93
3,060

–
–
–
4,832
1,679
(88)
1,591
3,241
6
3,234

115
1,367
1,483
1,577
938
(223)
715
861
14
846

GIKEN LTD. (6289) Consolidated Financial Results for the Fiscal Year Ended August 31, 2023

(Consolidated Statements of Comprehensive Income)(Millions of yen)

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
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests-9-

Fiscal year ended
August 31, 2022
3,241

Fiscal year ended
August 31, 2023

861

17
(18)
233
29
261
3,503

43
(25)
(63)
67
22
883

3,424
78

902
(18)

GIKEN LTD. (6289) Consolidated Financial Results for the Fiscal Year Ended August 31, 2023

(3)

Consolidated Statements of Changes in Net Assets
Fiscal year ended August 31, 2022 (from September 1, 2021 to August 31, 2022)(Millions of yen)
Shareholders' equity
Deposits forsubscriptions ofsharesShare capital
Balance at beginning of
periodCapital surplus

8,892

0

10,069

65

(0)

65

Retained earnings

Treasury shares

20,596

(304)

Total
Shareholders'equity39,253

Changes during period
Issuance of new shares

131

Dividends of surplus(1,922)(1,922)

Profit (loss) attributableto owners of parent

3,234

3,234

Purchase of treasury
shares(0)(0)

Net changes in items
other than shareholders'equityTotal changes during
period

65

(0)

65

1,312

(0)

1,443

Balance at end of period

8,958

–

10,135

21,908(305)

40,696

Accumulated other comprehensive income
Valuationdifference on
availablefor-salesecurities
Balance at beginning of
period0

Deferred
gains orlosses onhedges18

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensi
ve income

(138)

(26)

(145)

Share
acquisitionrights

Noncontrollinginterests

0435

Total net
assets39,544

Changes during period
Issuance of new shares

131

Dividends of surplus(1,922)

Profit (loss) attributableto owners of parent

3,234

Purchase of treasury
shares(0)

Net changes in items
other than shareholders'equity

17

(10)

152

29

189

(0)

78

267

Total changes during
period

17

(10)

152

29

189

(0)

78

1,711

Balance at end of period

18

8

14

3

44

–

514

41,256-10-

GIKEN LTD. (6289) Consolidated Financial Results for the Fiscal Year Ended August 31, 2023

Fiscal year ended August 31,2023 (from September 1, 2022 to August 31, 2023)(Millions of yen)
Shareholders' equity
Deposits forsubscriptions ofsharesShare capital
Balance at beginning of
period8,958

Capital surplus–

Total
Shareholders'equityRetained earnings

Treasury shares

21,908(305)

10,13540,696

Changes during period
Issuance of new shares
Dividends of surplus(1,512)(1,512)

Profit (loss) attributableto owners of parent

846

846

Purchase of treasury
shares(575)

Change in scope of
consolidation

(16)

1

(575)
(15)

Net changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period

–

–

(16)

(664)

(575)

(1,256)

8,958–

10,11821,244(880)

39,440

Accumulated other comprehensive income
Valuationdifference on
availablefor-salesecurities
Balance at beginning of
period18

Deferred
gains orlosses onhedges8Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensi
ve income

14

3

44

Share
acquisitionrights

Noncontrollinginterests–

Total net
assets514

41,256

Changes during period
Issuance of new shares
Dividends of surplus(1,512)

Profit (loss) attributableto owners of parent

846

Purchase of treasury
shares(575)

Change in scope of
consolidation

6

(2)

43

(14)

(41)

67

55

–

Total changes during
period

43

(8)

(43)

67

59

–

(514)

(1,711)

Balance at end of period

62

–

(29)

70

103

–

–

39,544

Net changes in items
other than shareholders'equity

3

-11-

(514)

(526)

55

GIKEN LTD. (6289) Consolidated Financial Results for the Fiscal Year Ended August 31, 2023

(4)

Consolidated Statements of Cash Flows

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Loss on liquidation of subsidiaries and associates
Impairment loss
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Increase (decrease) in Provisions for maintenance of
product’s function
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Decrease (increase) in trade receivables and contract
assetsDecrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in contract liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Payments for performance of guarantee obligation
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of investment securities
Other, net
Net cash provided by (used in) investing activ
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares
Purchase of treasury shares
Dividends paid
Other, net
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
Decrease in cash and cash equivalents resulting fromexclusion of subsidiaries from consolidation
Cash and cash equivalents at end of period(Millions of yen)
Fiscal year ended
August 31, 2023

Fiscal year ended
August 31, 2022

-12-

4,832
1,961
–
–
66
24

1,577
1,829
1,367
115
(93)
17

(48)

(4)

(30)
14
(30)

(26)
55
(144)

(1,354)

1,288

1,128
623
531
(332)
7,386
32
(14)
(1,480)
–
5,923

(703)
841
(260)
(142)
5,716
34
(52)
(1,848)(1,810)2,039(14,020)
11,722(1,876)–(43)(4,216)(8,620)11,070(1,781)
(800)
(25)
(156)

115
(180)
129
(0)
(1,918)(85)(1,940)

297
(167)
–
(575)
(1,512)(17)(1,975)

164

31

(68)
5,666

(60)
5,598

–

(390)

5,598

5,147

GIKEN LTD. (6289) Consolidated Financial Results for the Fiscal Year Ended August 31, 2023

(5)

Notes to Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.
(Notes to Consolidated Balance Sheets)・ Contingent Liabilities
J Steel Group Pty Limited (hereinafter “J Steel”), a former consolidated subsidiary of the Company, set bank guaranteeon the construction work which they received an order in Australia. After the customer that placed the order (hereinafter the“Customer”) exercised the right on the bank guarantee in the consolidated fiscal year under review, an contractual obligation
arose for J Steel to pay 1,059 million yen to the Bank. As the Company had set a parent-company guarantee for the bankguarantee, it made the repayment in subrogation and booked the amount in “Other” under “Investments and the Other assets”
on the consolidated balance sheets. As J Steel is in court trying to recover the claimed amount from the Customer at present
and it is thus difficult to reasonably estimate the amount of impact on our earnings at this point, we have not reflected it in
the consolidated financial statements for the consolidated fiscal year under review. However, if any event occurs that causes
impact on the Company during the court proceedings, we will reflect the amount of its impact on our consolidated financial
statements depending on the situation.
(Changes in Accounting Policies)
・ Application of the Implementation Guidance on Accounting Standard for Fair Value Measurement
The Company has applied the “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ
Guidance No. 31, June 17, 2021; hereinafter “Fair Value Measurement Guidance”) since the beginning of the consolidated
fiscal year under review, and has decided to prospectively apply the new accounting policies stipulated by the Fair Value
Measurement Guidance in accordance with the transitional treatment provided in Paragraph 27-2 of the Fair Value
Measurement Guidance. This does not affect the consolidated financial statements.

-13-

GIKEN LTD. (6289) Consolidated Financial Results for the Fiscal Year Ended August 31, 2023

(Segment Information, etc.)[Segment Information]
1. Overview of reportable segments
The Company’s reportable segments are the units of the Company for which discrete financial information is available
and for which the Board of Directors regularly conducts a review to determine allocation of management resources andassess performance.
The Company engages in business activities as a company coping with social problems caused by construction works
home and abroad, by developing machines and new methodologies which make maximum use of the superiority of thePress-in Method.
Therefore, the Company consists of two reportable segments: “Construction Machinery Segment” and “Press-in Work
Segment.” The main products and services of each reportable segment are as follows:
Construction Machinery Segment ･ ･ ･ Development, manufacture, sale, rental and maintenance services ofhydraulic press-in and extraction machines and auxiliary equipment
Press-in Work Segment･････Press-in works and foundation works, and underground development
2. Method of calculating net sales, profit or loss, assets, liabilities and other items by reportable segment
The accounting methods applied for reportable segments are generally the same as those for consolidated financial
statements preparation.
Segment income of reportable segments represents figures based on operating profit.
Internal sales and transfers between segments are based on prevailing market prices.

-14-

GIKEN LTD. (6289) Consolidated Financial Results for the Fiscal Year Ended August 31, 2023

3. Information on the amounts of net sales, profit or loss, assets, liabilities and other items by reportable segment anddisaggregation of revenues
Fiscal year ended August 31, 2022 (from September 1, 2021 to August 31, 2022)
Reportable segments
Total(Millions of yen)
Posted amountto theAdjusted
consolidated
amountfinancial(Notes 1, 3)
statements(Notes 2)

Construction
Machinery

Press-in WorkJapan

18,865

5,547

24,413–

24,413

Other regions

1,986

3,978

5,965

–

5,965

Revenue from contracts withcustomers

20,851

9,526

30,378–30,378Net sales to external customers

20,851

9,526

30,378–30,378Intersegment net sales andtransfer

842

129

972

(972)

–

Total

21,694

9,656

31,351(972)

30,378Segment profit

6,068

948

7,017

(2,403)

4,613

Segment assets

45,5197,811

53,3301,364

54,694

Depreciation

1,573

109

1,683

278

1,961

Increased amount in property,
plant and equipment

1,827

99

1,927

3

1,930

Net sales

Other items(Notes) 1. The segment income adjustment of negative 2,403 million yen includes inter-segment transaction
eliminations of negative 64 million yen and corporate expenses not allocated to any reportable segment ofnegative 2,468 million yen. The corporate expenses are mainly general administrative expenses notbelonging to any reportable segment.
2. Segment income is adjusted with operating profit presented in the consolidated statement of income.
3. The segment assets adjustment of 1,364 million yen includes inter-segment credit elimination of negative
732 million yen and corporate assets not allocated to any reportable segment of 2,096 million yen.

-15-

GIKEN LTD. (6289) Consolidated Financial Results for the Fiscal Year Ended August 31, 2023

Fiscal year ended August 31,2023 (from September 1, 2022 to August 31, 2023)
Reportable segments
Total(Millions of yen)
Posted amountto theAdjusted
consolidated
amountfinancial(Notes 1, 3)
statements(Notes 2)

Construction
Machinery

Press-in WorkJapan

18,6996,480

25,180–25,180

Other regions

2,053

2,038

4,092

–

4,092

Revenue from contracts withcustomers

20,752

8,519

29,272–

29,272

Net sales to external customers

20,752

8,519

29,272–

29,272

Intersegment net sales andtransfer

523

276

800

(800)

–

Total

21,276

8,796

30,072(800)

29,272

Segment profit

4,668

875

5,544

(2,560)2,983

Segment assets

42,486

7,696

50,182

1,206

51,388Depreciation

1,475

91

1,566

263

1,829

Increased amount in property,
plant and equipment

1,467

118

1,585

16

1,601

Net sales

Other items(Notes) 1. The segment income adjustment of negative 2,560 million yen includes inter-segment transaction
eliminations of negative 27 million yen and corporate expenses not allocated to any reportable segment ofnegative 2,588 million yen. The corporate expenses are mainly general administrative expenses notbelonging to any reportable segment.
2. Segment income is adjusted with operating profit presented in the consolidated statement of income.
3. The segment assets adjustment of 1,206 million yen includes inter-segment credit elimination of negative
1,472 million yen and corporate assets not allocated to any reportable segment of 2,678 million yen.

-16-

GIKEN LTD. (6289) Consolidated Financial Results for the Fiscal Year Ended August 31, 2023

[Relevant Information]
Fiscal year ended August 31, 2022 (from September 1, 2021 to August 31, 2022)
1. Information by product and service
Information by product and service is omitted here since the same information is described as segment information.
2.

Information by region(1) Net sales(Millions of yen)Japan

Australia
24,413(Note)

Other

Total

3,561

2,404

30,378Major regions that belong to “Other regions” are as follows:
Europe, Asia, North America, and South America(2) Property, plant and equipment
Information on property, plant and equipment is omitted since the amount of property, plant and equipment
located in Japan excesses 90% of the amount of property, plant and equipment stated in the consolidated balance
sheet.
3.

Information by major customer
Information by major customer is omitted because there is no external customer accounting for 10% or more of net
sales stated in the consolidated statement of income.

Fiscal year ended August 31,2023 (from September 1, 2022 to August 31, 2023)
1. Information by product and service
Information by product and service is omitted here since the same information is described as segment information.
2.

Information by region(1) Net sales(Millions of yen)

Japan

Other
25,180(Note)

Total
4,092

29,272Major regions that belong to “Other regions” are as follows:
Europe, Asia, North America, South America, and Oceania(2) Property, plant and equipment
Information on property, plant and equipment is omitted since the amount of property, plant and equipment
located in Japan excesses 90% of the amount of property, plant and equipment stated in the consolidated balance
sheet.
3.

Information by major customer(Millions of yen)

Customer name

Net sales

ITOCHU TC CONSTRUCTION
MACHINERY CO., LTD.

Name of related segment
3,146 Construction Machinery Segment-17-

GIKEN LTD. (6289) Consolidated Financial Results for the Fiscal Year Ended August 31, 2023

[Information on Impairment Loss for Fixed Assets by Reportable Segment]
Fiscal year ended August 31, 2022 (from September 1, 2021 to August 31, 2022)
There is no relevant information.
Fiscal year ended August 31,2023 (from September 1, 2022 to August 31, 2023)

Construction
Machinery
Impairment losses(Note)

Corporate andelimination

Press-in Work
–

–

115

(Millions of yen)
Total
115

The amount of "Corporate and elimination" represents an impairment loss on corporate assets, which do notbelong to any reportable segment.

[Information on Amortization and Unamortized Balance of Goodwill by Reportable Segment]
There is no relevant information.
[Information on Gain on Negative Goodwill by Reportable Segment]
There is no relevant information.

-18-

GIKEN LTD. (6289) Consolidated Financial Results for the Fiscal Year Ended August 31, 2023

(Per Share Information)
Fiscal year ended August 31, 2022
(from September 1, 2021
to August 31, 2022)

Fiscal year ended August 31, 2023
(from September 1, 2022
to August 31, 2023)

1,481.41 Yen

1,452.90 Yen

Profit per share

117.65 Yen

30.82 Yen

Fully diluted profit per share

117.62 Yen–

Net assets per share(Notes)The basis of calculation of profit per share and fully diluted profit per share is as follows:
Fiscal year ended August 31, 2022
(from September 1, 2021
to August 31, 2022)

Fiscal year ended August 31, 2023
(from September 1, 2022
to August 31, 2023)

3,234

846

–

–

3,234

846

27,492,033

27,474,392

–

–

8,028

–

Profit per share
Profit attributable to owners of parent (millions ofyen)Amount not attributable to common shareholders(millions of yen)
Profit attributable to owners of parent concerningcommon shares (millions of yen)
Average number of common shares during the
fiscal year (shares)
Fully diluted profit per share
Profit attributable to owners of parent - deferred(millions of yen)
Increase in common stock (shares)
Overview of potential shares not included incomputation of diluted profit per share because of
their anti-dilutive effect–(Material Subsequent Events)
There is no relevant information.

-19-–