Construction Revolution

FY2023 (September 2022 to August 2023)

GIKEN LTD.
Financial Results
Overview
October 11, 2023
<stock code: 6289>

Forward-looking Statements Disclaimer

Except for historical facts, certain information provided in this document, such as
our and our group’s current policies and management strategies, contains
forward-looking statements based on currently available information, including
statements about the future. These statements, which are based on estimates,
projections, or assumptions with potential risks, involve uncertainties that could
cause results to differ materially from those anticipated in the statements.
Such risks and uncertainties include general domestic and international
economic conditions, such as national economic conditions, industrial and market
conditions, interest rates, commodity prices, and exchange rate fluctuations.
We are not obligated to update or revise “forward-looking statements” provided
in this document, even in the event of new information or future developments.

1

Content
I. Financial Results◼ Financial Results Overview FY2023

P 3◼ FY2024 Forecast

P 9◼ Revision of Medium-term Management Plan

P 17

◼ Shareholder Return

P 19

II. Long-term Vision◼ GIKEN GOALS 2031
III. References

P 22
P 37
2

Financial Results Overview
FY20233

Financial Results Trend
Unit: Millions of JPY

FY2021
ActualFY2022
ActualFY2023
YoY

ActualYoY

Net Sales

27,61830,378+10.0%

29,272-3.6%

Operating Profit

3,997

4,613

+15.4%

2,983-35.3%

Ordinary Profit

4,161

4,832

+16.1%

3,060-36.7%

Profit*

3,073

3,234

+5.2%

846

-73.8%

Profit per Share(JPY)

112.22117.65

+4.8%

30.82

-73.8%*1 An extraordinary losses of 1,367 million yen for loss on liquidation of subsidiaries and associates
was recorded for the fiscal year ended August 31, 2023.
*2 Profit attributable to owners of GIKEN LTD.

4

Financial Results Trend－Net Sales and Operating Profit
Unit: Millions of JPY

30,37827,61829,272

5,965

4,092

(19.6%)

5,460(14.0%)(19.8%)

25,18024,41322,1582,983

FY2021

FY2022

Domestic Sales

Overseas Sales• Large-scale projects overseas undertaken
mainly in the previous fiscal year have been
completed.
• Steady progress in construction work, withrobust adoption increase of our method, mainlyfor projects related to disaster recovery andreconstruction, disaster prevention andmitigation measures, and strengthening national
resilience measures.

[Factors in operating profit changes]

4,613

3,997

[Factors in sales changes]

FY2023Operating Profit

Figures in brackets show the overseas ratio• Amid soaring steel and other construction
material prices, material costs represent alarger proportion of construction works
expenditures, and the resulting downward
trend in construction volume has affectedsales of machinery products and parts with ahigh gross margin used in permanent
structures.
• Selling, general and administrative expenses,
including research and development
expenses, increased.
5

Financial Results Trend－Net Sales by Segment
Press-in Work Segment

Construction Machinery Segment
Unit: Millions of JPY

25,00020,00013.2%

19,1349.5%

9.9%

20,851

20,752

1,986

2,053

2,526
15,00010,00016,60818,865

18,6995,000

0FY2021
Domestic Sales

FY2022
Overseas Sales

FY2023

19.0%
18.0%
17.0%
16.0%
15.0%
14.0%
13.0%
12.0%
11.0%
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
-1.0%
-2.0%
-3.0%
-4.0%
-5.0%
-6.0%
-7.0%
-8.0%
-9.0%
-10.0%-11.0%-12.0%-13.0%-14.0%-15.0%-16.0%-17.0%-18.0%-19.0%-20.0%-21.0%-22.0%-23.0%-24.0%-25.0%-26.0%-27.0%-28.0%-29.0%-30.0%-31.0%-32.0%-33.0%-34.0%-35.0%-36.0%-37.0%-38.0%-39.0%-40.0%-41.0%-42.0%-43.0%-44.0%-45.0%-46.0%-47.0%-48.0%-49.0%-50.0%-51.0%-52.0%-53.0%-54.0%-55.0%-56.0%-57.0%-58.0%-59.0%-60.0%-61.0%-62.0%-63.0%-64.0%-65.0%-66.0%-67.0%-68.0%-69.0%-70.0%-71.0%-72.0%-73.0%-74.0%-75.0%-76.0%-77.0%-78.0%-79.0%-80.0%-81.0%-82.0%-83.0%-84.0%-85.0%-86.0%-87.0%-88.0%-89.0%-90.0%

Overseas ratio[Factors in sales changes]
Overseas: Steady sales growth of finished goods in Asia
Domestic: The sales of large machinery used in the construction of
permanent structures decreased. In contrast, robust salesof general machinery used in the construction of
temporary structures were recorded.

Unit: Millions of JPY

12,000

41.8%
34.6%
9,526

10,000
8,484

8,000

2,934

23.9%
8,519

3,978

2,038

6,000

4,000

2,000

0

5,550

5,547

FY2021

FY2022

Domestic Sales

Overseas Sales

6,480

FY2023

48.0%
47.0%
46.0%
45.0%
44.0%
43.0%
42.0%
41.0%
40.0%
39.0%
38.0%
37.0%
36.0%
35.0%
34.0%
33.0%
32.0%
31.0%
30.0%
29.0%
28.0%
27.0%
26.0%
25.0%
24.0%
23.0%
22.0%
21.0%
20.0%
19.0%
18.0%
17.0%
16.0%
15.0%
14.0%
13.0%
12.0%
11.0%
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
-1.0%
-2.0%
-3.0%
-4.0%
-5.0%
-6.0%
-7.0%
-8.0%
-9.0%
-10.0%-11.0%-12.0%-13.0%-14.0%-15.0%-16.0%-17.0%-18.0%-19.0%-20.0%-21.0%-22.0%-23.0%-24.0%-25.0%-26.0%-27.0%-28.0%-29.0%-30.0%-31.0%-32.0%-33.0%-34.0%-35.0%-36.0%-37.0%-38.0%-39.0%-40.0%-41.0%-42.0%-43.0%-44.0%-45.0%-46.0%-47.0%-48.0%-49.0%-50.0%-51.0%-52.0%-53.0%-54.0%-55.0%-56.0%-57.0%-58.0%-59.0%-60.0%-61.0%-62.0%-63.0%-64.0%-65.0%-66.0%-67.0%-68.0%-69.0%-70.0%

Overseas ratio[Factors in sales changes]
Overseas: Large-scale projects overseas undertaken mainly in theprevious fiscal year have been completed.
Domestic: Adoption of our method has strongly increased for disasterrecovery and reconstruction projects and other fields.
6

Financial Results Trend－Operating Profit by Segment
Press-in Work Segment

Construction Machinery Segment
Unit: Millions of JPY

25,00020,00020,097

21,694523

10,000

0

8,000

129

Unit: Millions of JPY

8,796

276

179

6,000

15,000

5,000

9,656
8,663

21,276842

963

10,0004,775(23.8%)

6,068(28.0%)

4,000

4,668
(21.9%)

19,13420,851

20,752

FY2021

FY2022

FY2023External Customer Sales
Operating Profit

Internal Sales
Figures in brackets show theoperating profit margin[Factors in profit margin changes]• The sales of high gross margin finished goods and parts
decreased.
• Selling, general and administrative expenses, including
research and development expenses, increased.

2,000

0

1,243
(14.4%)

948(9.8%)

875(10.0%)

8,484

9,526

8,519

FY2021

FY2022

FY2023External Customer Sales
Operating Profit

Internal Sales

Figures in brackets show
the operating profit margin[Factors in profit margin changes]• Completion of large-scale overseas projects with low grossmargin undertaken mainly in the previous fiscal year increased
operating profit margin. Domestic operating profit remains at thelevel seen in the first half of the year due to the decrease of
7high gross margin projects.

Extraordinary Losses on Dissolution of Joint Venture with J Steel
Background◼ December 2017

• Acquisition of 50.1% of outstanding shares of J Steel Group Pty Limited to drive our global
expansion.

◼ May 2023

• Agreement on dissolution of the joint venture relationship due to differences in management
policies.
• Recording an extraordinary losses of 1,367 million yen as a loss on liquidation of subsidiaries andassociates for the consolidated financial results of the third quarter of the fiscal year ended August
31, 2023.

◼ June 2023

• Completion of transfer of J Steel shares. Dissolution of the joint venture relationship.

Going Forward• J Steel continues operations as a user of the press-in method in the Oceania market.
• J Steel has an ongoing dispute with one of its customers regarding construction work for which
J Steel received orders. The Company had a parent company guarantee covering the disputed
transactions and will continue to cooperate with J steel in resolving the issue even after the
dissolution of the joint venture agreement.
8

FY2024 Forecast

9Forecast
Unit: Millions of JPY

FY2023
ActualFY2024 Forecast
1st Half

2nd Half

Full YearYoY

Net Sales

29,272

15,30014,70030,000+2.5%

Operating Profit

2,983

2,200

1,100

3,300

+10.6%

Ordinary Profit

3,060

2,250

1,150

3,400

+11.1%

Profit*

846

1,600

800

2,400

+183.4%

Profit Per Share
(JPY)

30.82

59.79

29.89

89.68

+191.0%*1 An extraordinary losses of 1,367 million yen for loss on liquidation of subsidiaries and associates
was recorded for the fiscal year ended August 31, 2023.
*2 Profit attributable to owners of GIKEN LTD.

10

Forecast－Key Points(1) Construction Machinery Segment◎Strong increase of customers’ capital investment• Domestic infrastructure development, including measures to strengthen
national resilience and projects related to national-defense, expressways,
and ports, is expected to remain strong.
◎The impact of rising prices of steel and other materials, as well as
geopolitical risks, are required to be closely monitored.
◎While staying focused on the regions where we are steadily forming amarket, accelerate overseas expansion.

(2) Press-in Work Segment◎Increased adoption of ImplantTM Method• Increase in adoption of the ImplantTM Method in projects including
infrastructure remodeling of piers and river dikes, expressway renewal, and(BCP related) disaster prevention initiatives undertaken independently by
private companies.
11Forecast－Sales and Operating Profit
Unit: Millions of JPY

30,00029,2723,500(11.7%)

4,092(14.0%)

Up 2.5%[Factors in sales changes]• Domestic demand for replacement ofgeneral machinery and increase in sales
volume of our new F112 model with aflywheel-type pile auger as standard
equipment and other products.
• Increase in sales volume of machinery inEurope and Asia.

26,50025,180[Factors in operating profit changes]
3,300

2,983

Up 10.6%
Domestic Sales

FY2023

Overseas Sales

Operating Profit

FY2024
Forecast• Increase in sales in the highly profitable
construction machinery segment.

Figures in brackets
show the overseas ratio

12Forecast－Sales by Segment
Press-in Work Segment

Construction Machinery Segment
Unit: Millions of JPY

25,00020,0009.5%

9.9%

20,851

20,752

1,986

14.0%
22,500

3,157

2,053

15,00010,00018,865

19,342

18,6995,000

0FY2022

Domestic Sales

FY2023

FY2024 Forecast

Overseas Sales

Unit: Millions of JPY

16.0%
15.0%
12,000
14.0%
13.0%
12.0%
11.0%
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
-1.0%
-2.0%
-3.0%
-4.0%
10,000
-5.0%
-6.0%
-7.0%
-8.0%
-9.0%
-10.0%-11.0%-12.0%-13.0%-14.0%-15.0%-16.0%-17.0%-18.0%-19.0%-20.0%-21.0%-22.0%-23.0%-24.0%
8,000-25.0%-26.0%-27.0%-28.0%-29.0%-30.0%-31.0%-32.0%-33.0%-34.0%-35.0%-36.0%-37.0%-38.0%-39.0%-40.0%-41.0%-42.0%-43.0%
6,000-44.0%-45.0%-46.0%-47.0%-48.0%-49.0%-50.0%-51.0%-52.0%-53.0%-54.0%-55.0%-56.0%-57.0%-58.0%-59.0%-60.0%-61.0%-62.0%
4,000-63.0%-64.0%-65.0%-66.0%-67.0%-68.0%-69.0%-70.0%-71.0%-72.0%-73.0%-74.0%-75.0%-76.0%-77.0%-78.0%-79.0%-80.0%-81.0%-82.0%
2,000-83.0%-84.0%-85.0%-86.0%-87.0%-88.0%-89.0%-90.0%-91.0%-92.0%-93.0%-94.0%-95.0%-96.0%-97.0%-98.0%-99.0%-100.0%0Overseas Ratio[Factors in sales changes]
Overseas: Increase in sales volume of machinery in Europe and Asia
where the press-in construction market is expanding.
Domestic: Increase in sales volume of the new F112 model.

41.8%

40.0%

23.9%
9,526
8,519
3,978

2,038

4.6%
7,500
342

20.0%
0.0%

-20.0%-40.0%

5,547

6,480

7,157

-60.0%-80.0%FY2022

Domestic Sales

FY2023

Overseas Sales

FY2024 Forecast-100.0Overseas Ratio[Factors in sales changes]
Overseas: Dissolution of the joint venture relationship with J Steel
Domestic: Increase in adoption of the ImplantTM Method in projects
including infrastructure remodeling of piers and river dikes,
expressway renewal, and (BCP related) disaster prevention
initiatives undertaken independently by private companies.

13

Forecast－Operating Profit by Segment
Press-in Work Segment

Construction Machinery Segment
Unit: Millions of JPY

25,00021,69420,000842

21,27622,960

Unit: Millions of JPY

12,000460

10,000

523

9,656
129

8,796
276

8,000
15,000

7,620
120

6,000
10,000

6,068(28.0%)

5,000

0

4,668
(21.9%)

5,021(21.9%)

4,000
2,000

20,851

20,75222,500

FY2022

FY2023

FY2024
Forecast

Internal Sales

Operating Profit

External Customer Sales

Figures in brackets show the operating profit margin[Factors in profit margin changes]• Increase in personnel expenses and expenses foroverseas strategic restructuring.

0948(9.8%)

875(10.0%)

9,526

8,519

7,500

FY2022

FY2023

FY2024
Forecast

External Customer Sales

Internal Sales

707(9.3%)

Operating Profit

Figures in brackets show the operating profit margin[Factors in profit margin changes]• Increase in fixed costs including personnel expenses.
14Forecast－Factors in Operating Profit Decrease and Actions
Unit: Millions of JPY
35,00030,00021.0%30,37829,27230,00015.2%

25,00020,000

18.0%

15.0%

10.2%

11.0% 12.0%

15,0009.0%

10,000

6.0%

4,613

5,000

0

FY2022Net Sales

2,983

FY2023Operating Profit◼ Rising purchasing costs
Increase in production costs◼ Soaring steel prices
Impact on sales of finished goods and parts
with high gross margin used in permanent
Factors
structures◼ Proactive investments in R&D, humanresources, and other areas for future growth
Increase in fixed costs (Selling, general andadministrative expenses)

3,300

FY20243.0%

0.0%

Operating Profit Margin◼ Increasing finished goods price
Increased in June 2022 and May 2023
◼ Expanding the press-in construction market
Expand the applicable range of ImplantTM
Method(e.g. projects related to national-defense,
expressways, and infrastructure remodeling)
Actions◼ Restructuring overseas strategy
While staying focused on the regions where
we are steadily forming a market, accelerate
overseas expansion◼ Improving productivity
Increase operational efficiency throughdriving DX

15

Forecast－Capital Investment, Research and Development
Expenses◎Research and development expenses◎Capital investment, Depreciation
2,000

1,930

Unit: Millions of JPY

1,961

1,706

1,748

1000

1,601

1,600

800

1,400
1,200

3.3%

3.1%

1,829

1,800

Unit: Millions of JPY

1200

FY2022

FY2023

Capital Investment Amount

Capital investment breakdown
FY2022600

FY2024
Forecast
Depreciation

899

400

1,000

604
Unit: Millions of JPY

FY2023

FY2024
Forecast

1,047

656

748

Offices and plant facilities

508

456

317

Other

375

489

641

Total

1,930

1,601

1,706

Products for rental/
demonstration

2.0%

200

0

FY2022

FY2023

FY2024
Forecast

Research and Development Expenses
Percentage of Net Sales

16

Revision of Medium-termManagement Plan

17

Medium-term Management Plan－Initial Plan, Comparison
Before and After Revision
Unit: Millions of JPY

35,000
5,965

10,000(28.6%)(19.6%)[Factors in sales changes]• Decrease in overseas sales mainly due
to the dissolution of joint venture
relationship with J Steel, a former
consolidated subsidiary.

30,0003,500(11.7%)

Restructured overseas strategy
24,413[Factors in operating profit changes]

26,50025,000• Decrease in operating profit due to thetemporary drop in sales caused by theabove factors.

5,500
3,300
Initial Plan
Domestic Sales

Revised Plan
Overseas Sales

Figures in brackets
show the overseas ratio

Operating Profit

18

Shareholder Return

19

Dividends and Purchase of Treasury Shares◼ Dividends[Overview]• Annual dividend was revised down to 40 yen from 70 yen, the initial plan at the beginningof the term.

[Reason]• Intensive investment in R&D was necessary to enable the electrification of core products,
carbon neutrality, and automated driving, as well as business expansion, to achieve thetarget of “100 billion sales in FY2031.” Therefore, the Company decided to retain internal
reserves in the previous fiscal year. Appropriate actions will be taken in the future basedon performance according to various measures.

◼ Purchase of Treasury Shares[Overview]• In accordance with a resolution of the Board of Directors’ meeting held on July 21, 2023,
the Company will purchase up to 800,000 treasury shares for a maximum of 1.5 billion
yen by November 22, 2023.

[Reason]• This is to increase capital efficiency and shareholder returns.
20

Shareholder Return
FY2023
Interim dividend: 20 yen (result)Year-end dividend: 20 yen (forecast)
80
70

Interim Dividend
70
68

60
50

34

35

FY2024
Interim dividend:
20 yenYear-end dividend: 20 yen
Unit: yen

Year-end Dividend
70

70

35

35

40
30

20

40

40

20

20

20

20
FY2024
Forecast

34

35

35

35

FY2019FY2020

FY2021

FY2022

FY2023

Profit (Millions of JPY)

4,571

1,400

3,073

3,234

846

Profit per share (JPY)168.8051.28

112.22117.65

30.82

89.68

Payout Ratio (%)

40.3

136.5

62.4

59.5

129.8

44.6

Dividend on Equity Ratio (%)

4.8

5.1

5.0

4.8

2.7

2.7

Total Return Ratio (%)

40.5

136.7

62.4

59.5

197.2

83.1

10
0

2,400

21

GIKEN GOALS 2031

22◼ GIKEN GOALS 2031 Numeric Target
Achieve 100 billion sales through Expanding the Sizeof Business and Advancing Productivity
New Business

Sales per Capita
100 million yen

Press-in Work Segment

1,000

Construction Machinery Segment

Medium-termManagement Plan
target revision

Sales per Capita
42 million yen(100 million yen)

300

276

85
191

Number of
Employees

350

Net Sales

Numberof
Employees

670

75

720

Overseas
Ratio

225

50%

Overseas
Ratio

Overseas
Ratio

12%

19.8%

2021

1,000

Number of
Employees

Building Up

2024(Under overseas strategic restructuring)

Taking Off

2027

Boosting

2031

Next

23

GIKEN GOALS 2031 Business Expansion

Overseas

Development-based business expansion into domestic and overseas markets
Forming projects to meetregional needs
Select potential leading hub
sites in North and SouthAmerica and other area.

Europe/Asia/North andSouth America
Increase cases adopted andenhance the content

Net Sales
100 billion yen
Business expansion in eacharea

Domestic

Transfer domestically successful
expertise to other areas
Expand business to infrastructuredevelopment with a wider range
of applications such as
expressways and ports.

Further expand the range ofapplications, including sheltersand similar national-defense
facilities, and disaster prevention
measures for private facilities.

Establish technology for
infrastructure remodeling
Expansion into thebuilding sector

Development

Take advantage of GIKEN’s
expertise with new businesses
Electric and automateddriving

2021

Building Up

Autonomous construction
with self-learning machines2024

Taking Off

Implement unmanned
construction

2027

Boosting

2031

24

Overseas－Current Status and Future Plans
Establish GIKEN’s business model overseas

Stimulation of press-in markets: Develop potential market in response to the needs where we can serve through offeringpress-in technology based on GIKEN’s expertise.
Growth of press-in industry:
Expand the industry leading the press-in work through developing the press-in market andoffering high value-added technology to address social issues.

Regions where we are steadily forminga market

Other regions◼ Europe✓ Press-in market development in the Netherlands has been
making steady progress through our project of repairing thebanks of the World Heritage canal and other projects.
✓ Promotion of our method has been undertaken with ourbusiness partner Seika Sangyo GmbH (Head office: Germany).

◼ Asia✓ The projects are increasing mainly in Singapore.
✓ Market development in Thailand has also been making steadyprogress mainly through river bank construction projects.
✓ In India, we are proactively making proposals to potential
customers stemming from a new user we acquired in FY2022.
✓ ODA market is expanding.

◼ South America✓ Aiming to establish business in Brazil, we formulated abusiness plan and made a technology proposal for
infrastructure needed jointly with Mitsui & Co., supported by
JICA.

◼ North America, Oceania, and Others✓ Press-in market has not yet been fully developed. Restructure
market development strategy to reflect regional strengths
based on analysis of issues and outcomes.

We will establish a steadily growing market centered on Europe and Asia through spreading GIKEN’s business model.
Applying this policy, we implemented our own actions in each country based on GIKEN’s business model,
accelerating overseas expansion.

Target countries: the Netherlands, Germany, Singapore, Thailand, China,
North America, Brazil, etc.

25

Domestic－Expansion of Press-in Work Market
Boost adoption in projects with potential investments in the future.
Coast

Road

Erosion control

Major renovation of
expressways

River

BridgeConstruction of nationaldefense facilities

Port

Disaster prevention
measures in theprivate sectors

Urban Infrastructure
remodeling26

Domestic－Key Points for Expansion of Press-in Market
Majorrenovation of
expressways

Law revised to extend toll collection period for up
to 50 years to cover major renovations and repairs.
Aiming to boost adoption in “expressway renewal”

Expand track record through foundation
works for the Metropolitan Expressway andexpressway Daishi Bridge.

Footage: Metropolitan Expressway Co., Ltd, Image: Kyoei

27

Domestic－Key Points for Expansion of Press-in Market
Construction of Policy of large-scale increases in national defense
national-defense expenditures
Aiming for more adoptions in projects for reinforcing the functions offacilities
shelters and port facilities and other national defense facilities projects
Image of large-scale underground shelter

28

Domestic－Key Points for Expansion of Press-in Market
Infrastructure
remodeling

Infrastructure upgrading in overcrowded urban
areas
Expand market for “remodeling” existing infrastructure• Gyropress MethodTM restores and enhances the functionality of existing infrastructure by driving piles through it.
• No need to demolish or remove existing infrastructure, reducing construction period and cost as well as CO2
emissions.
• This space-saving and temporary installation-free method enables construction without interrupting urban
functions.

Installation of jetty support piles as part ofthe construction of a new palisade deck

Yokohama City, Kanagawa Prefecture

Repairing deteriorated retaining
walls for roads

Kamakura City, Kanagawa Prefecture 29

Development－Development Policy
Growing Social Issues
Decarbonization, extreme disasters due to climate change, declining workforce, anddeteriorating infrastructure.

Development policy toaddress social issues
Machinery
and Methods

Structures

Reduced environmental
impacts
Higher productivity

Disaster-resistantand Sustainable

Creating new sustainable social
infrastructure30

Development－Decarbonization Technology
Development for reducing greenhouse gas emissions

Electrified GYRO PILERTM
was already introduced in
the Netherlands in 2022

Battery

External power supply

Fuel cells
All solid-state battery

Wider selections
Diesel

Bio fuel, Synthetic fuel, Hydrogen

Image of the power source
trend in shipped machinery

Electric
Bio fuel other

Diesel
2021

Diesel 0%

Diesel 50%

2024

2027

2030

2031

2050

31

Development－Technology Development of Implanting
Structures

Development of technology for implanting structures which
are disaster-resistant and allow quick construction
Work to address more severe and more
frequent floods

ImplantTM Lock Levee

Quick construction of replacements fordamaged bridges

Implant hat bridge

32

Development－Automated Operation/Remote Control
Development of technology for automated operation/remote control toaddress worksite labor shortage issue
Challenges forconstruction in 2024
Fully automated press-in
operation

PPTSTM autonomous
operation
Automated selfdriving

Remote control(domestic)

Remote control(overseas)

Automated operation/remote control technology
increases the efficiency of on-site support and also
gives a competitive advantage in market
development overseas.

2021

2024

2027

Autonomous
construction

Automated piletransport andpitching

SupportproviderSupportrecipient

Fully automatedtemporary
installation-freeconstruction

Supportrecipient

Supportrecipient

2030

2031

Construction in space
could be possible

33

Development－DX
From products to services. Development of new businesses throughdigital transformation

Technology proposal tools using 3D
measurement, 3D modelling, and BIM/CIM
solutions

Data providing services using digitalplatform

Point Group Measurement
Technology(3D surveying)

Press-in machine and geo data are available, via
the cloud, advancing user accessibility.
Press-in management
data nationwide• For efficient machine
management• For construction methodmarketing

Machine information
Construction data
Location information+

Making a database

Accumulation

3D editing andplanning tool

Create 3D images and provide estimates right on-site

Optional download

Expected use for AI
learning to develop
autonomous
construction.

• Enhancing the quality of our
proposal for customers,
consultants, etc.

Internal operation started in August 2023

Pilot operation is scheduled to launch in May 2024

34

Development－Expansion into the Construction Sector
Apply ImplantTM Method to the construction sector

The method enables earthquake-resistant and sustainable structures witha simple process.
Construction of foundation piles by
Gyropress MethodTM

Create large-scale underground spaces
which also serve as building foundations

Underground shelter
Continuous wall madeof steel sheet piles

Upper building: Forcedispersing (Uchiwa paper fan)structure

Underground shelter
Confined ground seismic
damperMitigate impact of earthquake tremors

Prevent ground subsidence by restraining flow in thesurrounding and internal soils.

35

GIKEN GOALS 2031 Human capital enhancement

Talents who create
the press-in market

Talents whogrow the press-in
industry

Talents who support
management anddevelopment
Enhance investment in people to deliver our business strategy

36

References

37

Content◼ Financial Results Overview FY2023

P 39◼ Progress in FY2023

P 43

38

Financial Results Overview FY2023－Operating Profit Changes
Unit: Millions of JPY

Operating Profit

4,613

Sales decreasein Construction
Machinery Sales decreasein Press-insegment
Work segment-99-1,007

Cost of Sales
Decrease+89

Research andDevelopment
Expenses
Increase-295

Travel,Transportation
andRent Expenses
Consulting Communicationon Land andExpenses
Expenses
Buildings
Increase
Increase
Increase

-113

-132

-46

FY2022

Other
Increase-26

Operating
Profit2,983

FY2023
Decrease in gross profit (loss)-1,016

Increase in selling, general andadministrative expenses -613

Decrease in operating profit (loss) -1,630

39

Financial Results Overview FY2023－Construction Machinery
Segment Net Sales by Category
Unit: Millions of JPY
25,00020,00019,134678

15,0005,374

20,851

20,752

753

803

5,709

5,648

10,0005,000

012,481

FY2021Finished goods sales
Rental Sales

13,867

13,809FY2022

FY2023• Decrease in sales volume ofmachinery products used in
the construction of permanent
structures. In contrast, steady
growth in sales of generalmachinery used in theconstruction of temporary
structures.

• Robust growth in sales ofmaintenance and parts as thenumber of operatingmachines in the market
increases.
(Except parts used in theconstruction of permanent
structures of which the sales
volume decreased due tosoaring steel prices)

Maintenance and Parts Sales
Other Sales

40

Financial Results Overview FY2023－Construction Machinery
Segment Net Sales by Category
Shipment Value Trend by Product Category
Unit: Millions of JPY
16,00012,0008,000

12,481
1,246
1,384
5,556

13,867

13,809Press-in machine for ultra-low-headroom
Press-in machine for zero-sheet piles
GRBTM system and others

1,629
1,068

2,801

Large-scale Specialized Machinery

6,872

1,078
3,266

Press-in machine for 900 mm-width hat
sheet piles
Rotary cutting press-in machines (Gyro)
Steel pipe piler and others

General Machinery

4,000

0

Specialized Machinery

4,294

4,296

FY2021

FY2022

General Machinery
Specialized Machinery

6,662

Press-in machine for 400 mm-width Ushape sheet piles and others

FY2023Large-scale Specialized Machinery
Other

41

Financial Results Overview FY2023－Capital Investment Trend
Unit: Millions of JPY

10,0008,000
6,000

New Kochi Head Officebuilding
138
Kochi Third Factory
384
Press-in Training Center 38
Factory and office buildingin the Netherlands
40

0

RED HILL
309
Factory and office buildingin the Netherlands421

RED HILL
EVEco Park508
72
RED HILL

4,000
2,000

Kochi Third Factory
263
Kansai Factorycompany dormitory
153
Factory and office buildingin the Netherlands
345

2,317

3,060

FY2019

2,294

1,901

1,708

FY20201,930 1,961

1,952

FY2021

Capital Investment Amount

1,601

FY2022364

1,829

FY2023

Depreciation

Capital investment breakdown

FY2019FY2020

FY2021

FY2022

FY2023

Machines for rental/
demonstration

996

1,501

1,220

1,047

656

Offices and plant facilities

602

1,004

739

508

456

Other

719

555

335

375

489

Total

2,317

3,060

2,294

1,930

1,601
42

Progress in FY2023－Overseas Business
Pilot project to repair the banks of the World Heritage canal in the
Netherlands has been completed.

Electrified GYRO PILERTM and GRBTM System demonstrated the advantages of press-in technology.

E l e c t r i f i e d C l a m p C r a n e TM i n
operation under trees.
Space-saving construction avoid
cutting trees.

271 tubular piles were pressedin a 208 m section.
・Completion of press-in work in March
・Completion of pilot project in July

Discussion with the city of Amsterdam, the project
owner, is in progress to shift to thecommercialization phase.

43

Progress in FY2023－Overseas Business
Project to repair the banks of the World Heritage canal in
the Netherlands was well recognized nationally.
Received “the Japan Construction
International Award”
Awarded by the Minister of the Ministry of Land,
Infrastructure, Transport and Tourism, Pioneering
Activity Category
For contribution to delivering quality infrastructure
overseas

Selected for “the Action Plan for the Overseas
Development of Infrastructure System as a major
project by a Japanese company targeting orders
from overseas”

Our work was recognized under “the Ministry ofLand, Infrastructure, Transport and Tourism’s
Action Plan for the Overseas Development ofInfrastructure Systems (2023)”
Listed as top sale business by MLIT senior officials

44

Progress in FY2023－Overseas Business
ImplantTM Method was adopted for the Pa Sak river bank protection projectin Thailand
Sales of F301-900 to a local company. We expect this will lead to its continued adoption with
Seed
them, further promoting our business among countries around the world for theirflood ofcontrol measures.
Success
Work for the first 2 km out of an approximately 52 km
construction section was completed in July 2023.

Pressed in 2,782 hat sheet piles with 900 mm width.
Based on the performance, a technical proposal iscurrently being presented for the next section.

• Vibration-free and noise-free construction minimizes
the impact on the living environment of local residents.
• The high accuracy of construction mitigates corrective
work, allowing speedy construction.

46
45

Progress in FY2023－Overseas Business
Major project in India is on track

Appeal to market with great potential. ImplantTM Method will be a clue to full entry into theuntapped market.
Seed of SuccessTwo “SILENT PILERTM F301-700″ delivered in 2022.

GRB system has also been in operation since July 2023.
With good evaluation of the vibration-free and noise-freepress-in technology, construction is rapidly progressing
in two shifts (day/night).

A water drainage facility
development project inCuttack City, Odisha State
Approximately 7,000 U-sheet piles witha width of 600 and 750 mm werepressed into the ground over a distanceof about 5.8 km on both banks.
Earth retaining walls required forconstruction were built.

New Delhi

MumbaiMumbaiCuttack City,
Odisha State

Chennai46

Progress in FY2023－Overseas Business
GIKEN, along with Mitsui & Co., will formulate a Joint Plan todevelop business in Brazil with JICA support
Joint Plan with partners with strong networks and know-how in global bushiness.

Aim to jointly develop a sustainable market and create businessstructures based in the local market.
(News release: https://www.giken.com/en/release/28_jun_2023/)

47

Progress in FY2023－Overseas Business
Launch of promotion in Europe with the cooperation of Seika
Sangyo GmbH (Head office: Germany), a group company of thegeneral machinery trading company Seika Corporation
Seika Sangyo GmbH has a strong track record andis highly competitive in the European market in thesale of submersible pumps and other products forconstruction, with solid connections to construction
companies. Their sales channels closely match ourtarget.

Cooperation

Seika Sangyo GmbHBusiness partnershipagreement was concluded inJune 2022.

• Machinery sales and rental
business• Construction method promotion
and project formation

Staff involved in promotion activities of construction
methods were assigned.
They work together to promote construction methods
starting in Germany, the biggest construction market
in Europe, aiming for forming potential projects andobtaining new users.

48

Progress in FY2023－Development
Launch of SILENT PILERTM F112, a machine specialized for hard groundconstruction with a flywheel pile auger as standard equipment
The weight increases torque through useof the rotational moment of inertia.
This model delivers torque that isthreeroughly
times greater than theearlier models
Increased construction efficiency on
hard ground

Expansion of applicable hardground range
Shorter construction period
on hard ground• More applications for projects inrivers (boulder beds) and mountainareas (bedrock layer).
• Solution to labor shortages• Reduced CO2 emissions

49

Progress in FY2023－Development
GIKEN develops Ultra-Low-headroom GYRO PILER™ – enabling
Hard Ground Press-in Piling of 1-m-Diameter Tubular Piles with
only 2.5 m overhead clearance
Feeding piles from the side enables
pitching longer piles, reducing thenumber of joints.

Reduced construction period
even under limited overhead
clearance and hard ground.
Solution for infrastructure remodelingprojects stymied due to severe
construction site conditions, such as
seismic strengthening of bridges andreinforcement of river revetments
around bridges.
50

Progress in FY2023－Customer Development
Customer development undertaken with external partners
AKTIO:Partnership agreement for rental business wasconcluded in February 2022
ITOCHU TC Construction Machinery Co.: Partnershipagreement for sales was concluded in March 2021

Leveraging the two companies’ extended sales network and our own channels

Results• Renting our machines to potential new customers⇒ Chance to know the advantages of press in machine.
Potentially lead to purchase of new machines.
• Delivering new machine to inactive customers• Renting press-in machine specialized for hard-groundconstruction to users who own standard press-in machines51Progress in FY2023－Promotion of Construction Methods“RED HILL 1967,” an information center for Press-in Technologies, opens
The facility showcases actual ImplantTM Method, promoting press-in technology worldwide
through the opportunity to see and experience it.

Akaoka cho, Konan City,
Kochi Prefecture

Sozokan(The Museum of Global
Piling Machines)

Research Building• Theater• Technology Exhibition Hall

The facility also showcases actual
ImplantTM Lock Levee.
Demonstration Area

More than 3,000 visitors since opening in May

52
53

Progress in FY2023－Investing in People
Enhanced “Parental Leave Assistance Grant”
Eligibility: Those who took paternal leave for three months or more

*Grant is provided regardless of gender *Eligible also for a second andsubsequent children

Amount: Maximum 50,000 yen monthly for maximum 12 months◼ Actual results of parental leave taken by male employees

0 parental leaves taken by male employees up until FY2018*Data as of August 31st, 2023
(Usage rate: 0%)
FY2019FY2020
FY2021
FY2022
Number ofpeople who
took leave

13 out of 13

14 out of 14

6 out of 20

8 out of 13*8 took over 3 months*13 took over 3 months

Usage rate

30%

61.5%

100%

100%

Averagenumber ofdays taken

110.2 days

60.6 days

89.2 days

100.1 days

(Number of people who took leave out of number of those eligible)* Including thosecurrently on leave◎Contributing to addressing social issues including declining birthrate, active women’s participation, diversity, etc.

53Construction Revolution

Implant method change the Worldwide Construction