Construction Revolution

Third Quarter of FY2024 (September 2023 to May 2024)

GIKEN LTD.
Financial Results
Overview
July 10 , 2024
<stock code: 6289>

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our and our group’s current policies and management strategies, contains“forward-looking statements” based on currently available information, including
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This document has been translated into English. In case of any difference inmeaning between the original Japanese text and the English translation, theJapanese text shall prevail.
1Financial Results Overview
for the Third Quarter of FY2024

2

Financial Results Trend
FY2022

FY2023First NineMonths
ActualFirst Nine Months
ActualUnit: Millions of JPY

FY2024YoY

First Nine Months
ActualYoY

Net sales

20,76821,196+2.1%

22,133+4.4%

Gross profit

8,195(39.5%)

7,951(37.5%)-3.0%

8,363(37.8%)+5.2%

Operating profit

3,174(15.3%)

2,176(10.3%)-31.4%

2,837(12.8%)+30.4%

Ordinary profit

3,315

2,253

-32.0%

3,132+39.0%

Profit※1

2,200223※2-89.9%

2,218 +894.5%

JPY 80.05

JPY 8.11-89.9%

JPY 82.78 +920.7%(Gross Margin)(Operating Profit Margin)

Profit Per Share※1 Profit: Net income attributable to GIKEN LTD.
※2 An extraordinary losses of JPY1,367M for loss on a liquidation of subsidiaries and associates was recorded for the 3Q
of FY 2023.

3

Domestic and Overseas Sales Comparison
Unit: Millions of JPY

FY2022

FY2023

FY2024First Nine
MonthsActualFirst Nine
MonthsActualFirst Nine
MonthsActual

20,76821,196+2.1%

22,133+4.4%

Domestic
Sales

16,83418,044+7.2%

19,351+7.2%

OverseasSales

3,934

3,151

-19.9%

2,782-11.7%

Overseas
Ratio

18.9%

14.9%

-4.0%pt

12.6%-2.3%pt

Net sales

YoY

YoY(Note) The number of overseas consolidated subsidiaries decreased by one in June 2023.

4

Net Sales and Operating Profit ー Comparison with Previous Year
Results for first
従来予想
nine months ofFY2023

Results for first
実績
nine months ofFY2024

22,133

21,196

Unit: Millionsof JPY

6,980

6,548

15,153

14,6482,176
Construction Machinery
Segment Net Sales
Press-in Work Segment NetSales

2,837

Operating profit[Factors in sales changes]■Construction Machinery Segment
・Overseas product sales increased
significantly.
・Spikes in construction material prices, etc.
affected sales of large-scale specializedmachinery.
■Press-in Work Segment
・Project orders steadily received for projects
related to post-disaster reconstruction,national resilience strengthening, etc.
・The number of overseas consolidated
subsidiaries decreased by one in June 2023.
[Factors in operating profit changes]
・Gross profit increased in the Construction
Machinery Segment, driven by sales
increases and first-half sale of products withhigh gross margins.
・Selling, general and administrative
expenses decreased thanks to downsized
U.S. operations.
5Trend of Net Sales by Segment
Construction Machinery
16,00014,00012,00013,699

1,179

1,181

12,52013,466

2,577

12,575
17.0%

6,000
4,000

15,153

50%
45%
40%
35%

10,0008,000

14,648

8.6%

Press-in Work

Unit: Millions of JPY

30%
25%
20%
15%

8.1%

10%

2,000

5%
0%

0

Unit: Millions of JPY

16,00050%
45%

14,00039.0%

12,000

6,000

7,069

2,755

6,548

1,970

4,000
2,000

35%

30.1%

10,000
8,000

40%

4,313

4,578

30%

6,980

204

6,775
2.9%

FY2023

FY2024FY2022

FY2023

FY2024First Nine Months

First Nine Months

First Nine Months

First Nine Months

First Nine Months

First Nine Months

Overseas Sales

Overseas Ratio[Factors in sales changes: 3Q (During the applicable 3 months)]
Domestic: ・ Solid sales for general machinery such as F112, a new hardground press-in machine.
・ Spikes in construction material prices, etc. affected sales oflarge-scale specialized machinery.
Overseas: ・ Delivered general machinery products to Macao’s largest
foundation work company, thanks to increased demand forpollution-free construction methods associated withurbanization, etc.
・ Delivered general machinery products to a user in Taiwan.
・ Delivered a hard-ground press-in machine for an ODA projectin Indonesia.
・ Posted product sales in Brazil.

20%
15%
10%
5%0%0

FY2022

Domestic Sales

25%

Domestic Sales

Overseas Sales

Overseas Ratio[Factors in sales changes: 3Q (During the applicable 3 months)]
Domestic: ・ Project orders steadily received for projects related to postdisaster reconstruction, national resilience strengthening,etc.
Overseas: ・ Sales decreased in Oceania due to a decrease of one
consolidated subsidiary in June 2023.

6

Trend of Operating Profit by Segment
Construction Machinery
16,00014,00014,426726

15,245
597

Press-in Work

Unit: Millions of JPY

15,482329

16,00014,00012,00012,00010,00010,000

8,000
6,000

13,69914,64815,153

2,000

8,000
6,000

4,000

7,185
116

7,069

4,000

3,917
(27.2%)

0

Unit: Millions of JPY

3,317

3,537

(21.8%)(22.8%)

2,000

6,784
235

6,548

946

831

(13.2%)(12.3%)

7,105
124

6,980
1,126(15.9%)

0FY2022

FY2023

FY2024FY2022

FY2023

FY2024First Nine Months

First Nine Months

First Nine Months

First Nine Months

First Nine Months

First Nine Months

External Customer Sales

Internal Sales

Operating profit

Figures in brackets show operating profit margins.

External Customer Sales

Internal Sales
Operating profit
Figures in brackets show operating profit margins.

[Factors in profit margin changes: 3Q (the applicable 3 months)] [Factors in profit margin changes: 3Q (the applicable 3 months)]
・Orders steadily received for high-gross margin projects.
・ Product price revisions introduced in the previous fiscal year
contributed to earnings.
・ Sales decreased for large-scale specialized machinery withhigh gross margins.
・ Decreasing in R&D expenses due to changes in development
plan.
7Full-Year Forecast for FY2024

FY20248Forecast

Unit: Millions of JPY

FY2024
1Q (Sep-

2Q (Dec-

3Q (Mar-4Q (Jun-Nov)

Feb)

May)

Aug)

ActualActualActualForecast

Full Year
Forecast

Net sales

7,418

8,117

6,598

7,866

30,000Operating profit

1,198

1,219

420

462

3,300

Ordinary profit

1,265

1,324

542

267

3,400Profit*872

977

368

181

2,400

JPY 32.49

JPY 36.52

JPY 13.76

JPY 6.91

JPY 89.68

Profit Per Share* Profit: Net income attributable to GIKEN LTD.

9

Progress in Domestic andOverseas Operations

10

Progress of Overseas Projects
Adopted in reconstruction work for the Noto Satoyama Kaido expressway, which
was damaged in the 2024 Noto Peninsula Earthquake.
Giken Seko built earth-retaining walls quickly, without closing the traffic.
The sheet piling work was conductedwithout traffic closure, thanks to theGRBTM system.

Giken customers also won the contracts in some phases of this projects.
We could contributed for the early recovery.

11Overseas － Current Status and Future Plans
Establish Giken’s business model in overseas

Building up press-in markets: Develop potential markets in response to the needs where we can serve through offering press-intechnology based on Giken’s expertise.
Growth of press-in industry: Expand the industry leading the press-in work through developing the press-in market and offering highadded-value technology to address social issues.

Regions where market development isgetting on track■Europe✓Market formation has been progressing in the Netherlands
through a project of quay wall renovation for the World
Heritage-listed canal in Amsterdam (shifted tocommercialization phase), as well as a river embankment
reinforcement work conducted as part of the Delta
Program, among other projects.
✓“GTOSS Europe,” the European version of GTOSS, launched
to strengthen our business foundation and improvecustomer loyalty in existing markets.
✓Promotion of our method has been undertaken with ourbusiness partner Seika Sangyo GmbH (Head office:Germany).
■Asia✓Market development in Thailand has been making steadyprogress mainly through river bank construction projects.
✓In India, a new user we acquired in FY2022 is carrying out
a construction project. Market research begun for the goalof expanding markets.
✓Efforts in collaboration with partner company for market
expansion in China progressing steadily.
✓Market formation progressing in Taiwan, supported byincreasing awareness about pollution from constructionwork.
✓ ODA market is expanding.

Other regions■North America✓Implementing market research and analysis for restructuring business strategy in each region withconsideration of regional characteristics.
✓“GTOSS North America,” the North American version ofGTOSS, launched■South America✓Aiming to develop business in Brazil, we are building thebusiness plan (by the end of 2024) jointly with MITSUI &CO., LTD. supported by JICA, and are making technicalproposals for infrastructure needed.

Building up markets which have steady growth in Europe and Asia through spreading the Giken's businessmodel.
Applying this policy, we implemented our own actions overseas based on GIKEN’s business model for
accelerating overseas market expansion.

12Progress of Overseas Projects
In April Taiwan, we gave a demonstration of the Hard Ground Press-in Methodwith “Flywheel Pile Auger”, in collaboration with AKTIO Corporation, aconstruction machinery rental giant company.

Expecting further adoptions in Northern Taiwan, where many areas have hard
13ground. Over 100 construction industry insiders participated.

Construction Revolution

Implant method change the Worldwide Construction