Construction Revolution

First Half of FY2024 (September 2023 to February 2024)

GIKEN LTD.
Financial Results
Overview
April 9 , 2024
<Securities code: 6289>

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1Financial Results Overview
for the 1st Half of FY 2024

2

Financial Results Trend
Unit: Millions of JPY

FY2022
1st Half
ActualFY2023
1st Half
YoY
ActualFY2024
1st Half
YoY
ActualNet Sales

14,21814,933＋5.0％

15,535+4.0％

Gross Profit

5,942(41.8%)

5,694(38.1%)

-4.2%

6,009
(38.7%)+5.5%

OperatingProfit

2,786(19.6%)

2,146(14.4%)-23.0%

2,417(15.6%)+12.6％

OrdinaryProfit

2,864

2,194

-23.4％

2,590+18.0％

Profit*

1,893

1,374

-27.4％

1,849+34.6％

JPY 68.91

JPY 49.98-27.5％

JPY 69.00+38.1％（Gross Margin）（Operating Profit Margin）

Profit Per Share(Unit: JPY)

＊ Profit: Net income attributable to GIKEN LTD.

3

Domestic and Overseas Sales Comparison
Unit: Millions of JPY

FY2022
1st Half
ActualFY2023
1st Half
ActualFY2024YoY

1st Half
ActualYoY

Net Sales

14,21814,933＋5.0％

15,535＋4.0％

Domestic
Sales

12,08912,766＋5.6％

13,515+5.9％

Overseas
Sales

2,128

2,167

＋1.8％

2,019

-6.8％

Overseas
Ratio

15.0％

14.5％

-0.5％pt

13.0％-1.5％pt(Note) The number of overseas consolidated subsidiaries decreased by one in June 2023.

4

Comparison Between Initial Forecast and Results
Unit: Millions of JPY

FY2024
1st Half
InitialForecast

1st HalfActual

Net Sales

15,30015,535Gross Profit

5,660

6,009

（Gross Margin）(37.0%)(38.7%)

Operating Profit

2,200

2,417

Difference vs.
initial forecast

+1.5%
+6.2%
+9.9%

(14.4%)(15.6%)

OrdinaryProfit

2,250

2,590

+15.1%

Profit*

1,600

1,849

+15.6%

JPY 59.79

JPY 69.00+15.4%（Operating Profit Margin）

Profit Per Share(Unit: JPY)

＊ Profit: Net income attributable to GIKEN LTD.

5

Net Sales and Operating Profit ー Comparison with Previous YearFY2023
従来予想
1st Half Actual

FY2024 Unit: Millions of JPY
実績
1st Half Actual
15,535

14,933【Factors in sales changes】■Construction Machinery Segment

・Overseas product sales increased significantly.

4,448

4,848

■Press-in Work Segment

・The number of overseas consolidated
subsidiaries decreased by one in June 2023.

【Factors in operating profit changes】
10,085

11,0862,146

Construction Machinery Segment
Press-in Work Segment

2,417

・Gross profit increased in the Construction
Machinery Segment, driven by sales
increases and cost rate improvement.
・The number of consolidated subsidiaries
decreased by one in the Press-in WorkSegment.
・Selling, general and administrative expenses
increased (including personnel expenses andtesting &research expenses).

Operating Profit
6

Net Sales by Segment
Construction Machinery Segment
Unit: Millions of JPY

12,00010,00010,010742

10,085628

11,086
1,879

2,000
0

90.0%

4,000

60.0%
50.0%

6,000
4,000

4,500

80.0%

9,268

9,457

9,206
17.0%

7.4%

FY2022
1st Half
Domestic Sales

6.2%

FY2023
1st Half
Overseas sales

FY2024
1st Half

40.0%

3,500
3,000
2,000
1,500

20.0%

1,000

10.0%

500

0.0%

0

[Factors in sales changes]
Domestic ： ・ Solid sales for regular models and F112, a new hard-groundpress-in machine.
・ Sales of large-scale specialized machinery decreased due toprice increases of construction material, etc.
Overseas ： ・ Product sales grew in Europe and Asia, both regions inwhich market development has progressed.
・ Sales temporarily increased with ordinary operations in regions
such as USA where business strategies are being restructured.

4,208

Unit: Millions of JPY

1,539

1,386

2,500

30.0%

Overseas Ratio

4,848

5,000

100.0%

70.0%

8,000

Press-in Work Segment

2,821

4,448

140

4,308

80.0%
70.0%
60.0%
50.0%

31.8%

40.0%
30.0%
20.0%
3.1％

Domestic Sales

90.0%

3,308

32.9%

FY2022
1st Half

100.0%FY2023
1st Half
Overseas Sales

FY2024
1st Half

10.0%
0.0%

Overseas Ratio[Factors in sales changes]
Domestic ： ・ Orders for construction work received steadily for disasterrecovery projects, those for building national resilience, etc.
Overseas ： ・ Sales decreased in Oceania due to a decrease of one

consolidated subsidiary in June 2023.

7

Operating Profit by Segment
Press-in Work Segment

Construction Machinery Segment
Unit: Millions of JPY

12,00010,00010,464

10,583454

497

11,287200

Unit: Millions of JPY

6,000
5,500
5,000

8,000

4,500

4,270

4,000

62

5,063
215

4,537
89

3,500
6,000
4,000

3,243
(31.0%)

2,985
2,582

(26.4%)(24.4%)

2,500
2,000
1,500

2,000
0

3,000

1,000
10,01010,085

11,086FY2022
1st Half

FY2023
1st Half

FY2024
1st Half

Extermal Customer Sales

Intermal Sales

Operating Profit
Figures in brackets show the operating profit margin[Factors in profit margin changes]
・Sales of used products to customers in China and South Korea contributed
to gross profit increases.
・Product price revisions introduced in the previous fiscal year contributed toearnings.
・Selling, general and administrative expenses increased (including personnelexpenses and testing & research expenses).

500
0624

831

(14.6%)(16.4%)

4,208

4,848

4,448

FY2022
1st Half

FY2023
1st Half

FY2024
1st HalfExtermal Customer Sales

638（14.1％）

Intermal Sales

Operating Profit
Figures in brackets show the operating profit margin[Factors in profit margin changes]
・Domestic construction projects remained solid, but project cases, which
requires new development with high profit margins, decreased.

8

Net Sales and Operating Profit ー Comparison with Initial Forecast
FY2024
従来予想
1st Half Forecast

FY2024実績
1st Half Actual
15,53515,300

Unit: Millions of JPY■Construction Machinery Segment

・Customer capital investment remainedsolid but product demand was overestimated.
・Sales of large-scale specialize machinery in theU.S. and South Korea which was not in the 1st
half of fiscal year plan.

4,448

4,201

【Factors in net sales changes】■Press-in Work Segment

・Steady orders received for projects which
require new development.

【Factors in operating profit changes】
11,09811,0862,200

Construction Machinery Segment
Press-in Work Segment

2,417

Operating Profit

・Sales of used products to customers in China
and South Korea contributed to gross profit
increases
・Gross profit increased for the Press-in WorkSegment supported by increases in projects
which requires development with high profit
margins.
・Selling, general and administrative expenses
increased (including personnel expenses andtesting & research expenses).
9Full-Year Forecast for FY2024

10Forecast
There is no change to the full-year forecast figures for the fiscal year ending August 31, 2024
announced on October 11, 2023
Unit: Millions of JPY

FY2023Full Year
ActualNet Sales
Operating
ProfitOrdinary
ProfitProfit*Profit Per Share(Unit: JPY)

FY2024
1st Half
Actual

2nd Half
Forecast

Full Year
Forecast

29,272

15,535

14,46430,000

2,983

2,417

882

3,300

3,060

2,5908093,400846

1,849

550

2,400

JPY 30.82

JPY 69.00

JPY 20.68

JPY 89.68* 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.
* Profit: Net income attributable to GIKEN LTD.
11

Progress inthe 2nd Quarter of FY 202412

Progress in Domestic Business
Following the 2024 Noto Peninsula Earthquake, we opened a temporary office in Kanazawa
City in late January. We have since been conducting on-site investigations and promoting
engineering proposals.

We realize strong demands and rising expectations to our press-in technology. We shall contribute tothe earliest possible recovery of this region with our unique technologies and extensive experience.
13

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

Stimulation of press-in markets: Develop potential markets in response to the needs where we can serve through offering press-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 and offering high addedvalue technology to address social issues.

Regions where market formation isgetting on track

Other regions

 Europe Press-in market development in the Netherlands has been making
steady progress through our project of renovating quay walls of theWorld Heritage canal in Amsterdam and other projects.
 Promotion of our method has been undertaken with our business
partner Seika Sangyo GmbH (Head office: Germany).

■South America Asia The project inquiries are increasing in Singapore and other area.
 Market development in Thailand has also been making steady progress
mainly through river bank improvement projects.
 In India, a project is underway by our customer from 2022. Market
research work began for the market expansion.
 In China, collaborative promotion with partner companies is steadily
progressing for market expansion.
 In South Korea, market formation for GYRO PILER is making
steady progress.
 ODA market is expanding.

Aiming to develop business model in Brazil, we are building
the business plan (by the end of 2024) jointly with Mitsui &Co., supported by JICA, and are making technical proposals
for infrastructure needed.

■North America, Oceania, and OthersPress-in market has not yet been fully developed. We areinvestigating issues and past performance for rebuilding
business strategies for press-in market expansion with thebest suitable to the regional characteristics.

Building up markets which have steady growth in Europe and Asia through spreading the GIKEN's business model.
Implementing this policy to other regions for accelerating overseas market expansion.

Target countries：The Netherlands, Germany, Singapore, Thailand, China, South Korea,
North America, Brazil, etc.
14

Progress of Overseas Projects
Sold a GYRO PILER

to a South Korean customer as their 3 rd unit.

(Applied in projects for expressways, banks, railroad track perimeter, disaster recovery work, etc.)

The GYRO PILER is installing piles in a emergency disaster recovery work
(Retaining wall is being constructed along the railroad track for slope failure measure.)15

Construction Revolution

Implant method changes the Worldwide Construction