Consolidated Financial Results
for the Nine Months Ended May 31, 2024 [JGAAP]
July 10, 2024
Company Name: GIKEN LTD.
Stock Exchange Listing: Tokyo
Securities Code: 6289 (URL https://www.giken.com)
Representative: Atsushi Ohira, Representative Director and President and CEO
Contact: Tsuyoshi Tanouchi, Managing Operating Officer
Phone: +81-88-846-2933
Scheduled date to submit the quarterly securities report: July 12, 2024
Scheduled date to commence dividend payments: –Availability of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing session: No(Figures are rounded down to the nearest million yen)
1.

Consolidated Financial Results for the Nine Months Ended May 31, 2024 (from September 1, 2023 to May 31, 2024)(1) Consolidated Results of Operations(% indicates changes from the same period of the previous financial year)
Profit attributable toOperating profit
Ordinary profit
owners of parent

Net sales
Millions of yen

Millions of yen%

Millions of yen%

22,133
4.4
2,837
30.4
3,132
21,1962.1
2,176 (31.4)
2,253(Note) Comprehensive income: Nine months ended May 31, 2024: ¥2,500 million [1,575.0%]
Nine months ended May 31, 2023: ¥149 million [(93.3)%]%

Millions of yen%

39.0(32.0)

2,218
223

894.5
(89.9)

Nine months ended May 31, 2024
Nine months ended May 31, 2023

Profit per share

Fully diluted profit per share
Yen

Yen

–
–

82.78
8.11

Nine months ended May 31, 2024
Nine months ended May 31, 2023
(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

As of May 31, 2024
As of August 31, 2023
(Reference) Equity:
2.

Equity ratio

Millions of yen

48,861
51,388
As of May 31, 2024: ¥40,070 million%

40,07039,544As of August 31, 2023: ¥39,544 million

82.0
77.0

Dividends
Annual cash dividends per share
End of 1Q

End of 2Q
Yen

End of 3Q
Yen

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

Year-end
Yen–

Annual
Yen

Yen

20.00

40.00

20.00

40.00

–

Earnings Forecast of Consolidated Financial 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%

Yen

30,0002.5
3,300 10.6
3,400
11.1
(Note) Revision of the forecast of consolidated financial results most recently announced: None

2,400

183.4

89.68

Full year%

Millions of yen%

Millions of yen

* Notes(1) Changes in significant subsidiaries during the nine-month period ended May 31, 2024 (changes in specific subsidiaries
involving changes in the scope of consolidation): None
(2) Application of special accounting for preparing quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates and restatements
1) Changes in accounting policies due to the revision of accounting standards: Not applicable
2) Changes in accounting policies other than 1): Not applicable
3) Changes in accounting estimates: Not applicable4) Restatements: Not applicable(4) Total number of issued shares (common stock)1) Total number of issued shares at the end As of May 31, 2024of the period (including treasury shares):2) Total number of treasury shares at the As of May 31, 2024
end of the period:3) Average number of shares during theNine months ended
period (cumulative from the beginning
May 31, 2024of the fiscal year):

28,194,728 shares As of August 31,
2023
1,426,930 shares As of August 31,
2023
26,794,276 shares Nine months
ended May 31,
2023

28,194,728 shares
977,118 shares
27,501,664 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit
corporation.
* Explanation on the appropriate use of earnings forecasts, and other special notes
The forecast figures stated above are the prospects based on information currently available and contain largely uncertain elements.
Actual results may differ from the forecast figures above, depending on various factors such as changes in business condition s.

GIKEN LTD. (6289) Consolidated Financial Results for the Nine Months Ended May 31, 2024

Table of Contents of Appendix
1.

Qualitative Information on the Quarterly Financial Results ............................................................................................
(1) Explanation of Operating Results ...............................................................................................................................
(2) Explanation of Financial Position ...............................................................................................................................
(3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements .........................................

2.

Quarterly Consolidated Financial Statements and Principal Notes ................................................................................. 5(1) Quarterly Consolidated Balance Sheet ....................................................................................................................... 5(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income .. 7
Quarterly Consolidated Statements of Income
For the nine months ended May 31 ......................................................................................................................... 7
Quarterly Consolidated Statements of Comprehensive Income
For the nine months ended May 31 ......................................................................................................................... 8(3) Principal Notes for Quarterly Consolidated Financial Statements .............................................................................. 9(Notes on Going Concern Assumption) ...................................................................................................................... 9(Notes on Significant Changes in the Amount of Shareholders’ Equity) .................................................................... 9(Application of Special Accounting for Preparing Quarterly Consolidated Financial Statements) ............................ 9(Revenue Recognition) ............................................................................................................................................... 9(Segment Information)................................................................................................................................................ 10

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2
2
4
4

GIKEN LTD. (6289) Consolidated Financial Results for the Nine Months Ended May 31, 2024

1. Qualitative Information on the Quarterly Financial Results(1) Explanation of Operating Results
The Giken Group has been carrying out specific initiatives on numerical targets and strategies based on theLong-Term Roadmap GIKEN GOALS 2031, which represent our long-term business vision, under coordinatedefforts all across the company to achieve these goals.
In terms of the domestic business environment during the nine months under review, construction investment
remained strong in both the public and private sectors in Japan, resulting in steady capital investment by firms.
However, as construction material prices stayed at elevated levels, construction sizes of public works remained atshrunken levels, affecting sales of large-scale specialized machinery and spare parts which applied for building
permanent structures and have higher gross margins. In terms of manufacturing, we revised pricing as prices ofmaterials and parts have remained elevated. The situation calls for continued close monitoring going forward.
In domestic activities to disseminate our method, we worked to promote the Implant Method*1 mainly for thestrengthening of national resilience, including recovery and reconstruction from natural disasters, and prevention
and mitigation of future disasters. As a result, the number of projects in which the press-in method was adopted
increased steadily. These included seawall construction work as a countermeasure against potential Nankai
megathrust earthquakes and earthquake-proofing work on aging revetments, as well as expressway widening andconstruction work aimed at mitigating traffic congestion and revitalizing road traffic.
As a part of our activities for the reconstruction work following the 2024 Noto Peninsula Earthquake, we opened
a temporary office in Kanazawa city, Ishikawa prefecture. In consequence, in April Group company Giken Seko
Co., Ltd. completed a sheet piling work for building earth-retaining walls supporting the Noto Satoyama Kaido.
It was a road-widening project to enable two-way traffic on the expressway and “Silent Piler F112” was used forthe project together with “GRB System”. Because there are enormous numbers of infrastructure damage in thisarea, we have been receiving increasing inquiries. We aim to contribute to the earliest possible recovery of theregion by continuing to propose our solutions through the temporary office.
In domestic sales of machinery, we have solid sales result of Silent Piler F112, which equips “Flywheel Pile
Auger” as a standard specification. It has better drilling capability and better work efficiency than previous modelof Pile Auger. Since May 2021 when Flywheel Pile Auger was launched and May 2023 when “Silent Piler F112”
was launched, the applicable range of ground conditions for hard ground press-in method has kept expanding andit has been recognized as a groundbreaking machinery among our users.
In overseas business, which we aim to expand to represent 70% of overall net sales, we aim to establish a new
business model that accelerates market expansion, with a focus on Europe and Asia where a market is beginningto take shape, for the goal of achieving stable growth of the press-in construction market. For other regions, aiming
to expand the press-in construction market, we are conducting market research, etc. to rethink our strategies fromthe market creation phase and working on initiatives aimed at business expansion.
In Europe, “G-Kracht B.V.”, a joint venture formed by Giken Europe B.V. and Dutch local firms, signed aframework agreement with the city of Amsterdam, the project owner, for the commercialization phase of the
project to develop new technologies for quay wall renovation for the World Heritage-listed Canal Ring Area of
Amsterdam. After this phase is completed, our construction method is expected to be adopted as one of thestandard methods for the project, which will repair the length of 200 kilometers, and made generally available tolocal specialized contractors, etc. The Group aims to step up efforts to expand our market by introducing the
GYRO PILER, which is expected to find greater use in construction method standardization, capturing rental-use
demand, and taking advantage of our project track record in proposing construction method technologies.
In Asia, in Taiwan, where our market is growing driven by increased awareness about pollution fromconstruction work, we delivered general machinery products to an existing user, and in April, gave a demonstrationof the Hard Ground Press-in Method using a flywheel-type pile auger in collaboration with AKTIO Corporation,
the largest construction machinery rental company with whom we are in a rental business partnership. As northern
Taiwan has hard ground, we think we can expand our market there further by accelerating promoting activities ofthis methodology. The Group aims to continue working with the AKTIO group on market-creation activities in-2-

GIKEN LTD. (6289) Consolidated Financial Results for the Nine Months Ended May 31, 2024

Asia. Besides, we delivered general machinery products to a user in Macao. This was the result of our vibrationfree and noise-free press-in method having been chosen for a construction site where there is a risk of groundsubsidence. Urbanization is in progress in Macao, and we expect the local market will grow, driven by
infrastructure development work for bridges, etc.
Under such circumstances, for the nine months under review, net sales were 22,133 million yen (an increase of
4.4% YoY), operating profit was 2,837 million yen (an increase of 30.4% YoY), ordinary profit was 3,132 million
yen (an increase of 39.0% YoY), and profit attributable to owners of parent was 2,218 million yen (an increase of
894.5% YoY). Furthermore, an extraordinary loss of 1,367 million yen for loss on a liquidation of subsidiaries
and associates had been recorded for the 3rd quarter of FY2023.

-3-

GIKEN LTD. (6289) Consolidated Financial Results for the Nine Months Ended May 31, 2024

The performance by segment are as follows.
(i) Construction Machinery Segment
In Japan, sales remained solid for general machinery, including the Silent Piler F112, a machine that can beused for hard ground conditions. On the other hand, a spike in construction material prices affected sales of largescale specialized machinery. In the overseas business, product sales in Macao, Taiwan, Indonesia and Brazil
contributed to earnings. As a result, in this segment, net sales were 15,153 million yen (an increase of 3.5% YoY)
and operating profit was 3,537 million yen (an increase of 6.6% YoY) due mainly to the start of contribution toearnings from product price revisions introduced in the previous fiscal year.
(ii) Press-in Work Segment
In Japan, as our methods were adopted steadily, construction projects proceeded at a steady pace. These
included foundation work for water gates under a Great East Japan Earthquake reconstruction project (Iwate
Prefecture), construction of waterproof walls at a power plant (Gifu Prefecture), reconstruction work on
expressways damaged in the 2024 Noto Peninsula Earthquake (Ishikawa Prefecture), and disaster recovery workon national roads damaged by typhoons (Miyazaki Prefecture). Although the impact of a decrease of one
consolidated overseas subsidiary was felt, net sales totaled 6,980 million yen (an increase of 6.6% YoY) while
operating profit came to 1,126 million yen (an increase of 35.5% YoY) for the Press-in Work segment, as orders
remained solid for development-oriented projects*2 in Japan.
*1*2

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 andquality.
Development-oriented projects are construction projects using products or methods developed by usthat we have not yet made generally available.

(2) Explanation of Financial Position(Assets)
Total assets as of May 31, 2024 decreased by 2,527 million yen from the end of the previous consolidated fiscal
year to 48,861 million yen. This was the result of a decrease of 1,259 million yen in current assets, including notes
and accounts receivable-trade, and contract assets, and a decrease of 1,267 million yen in non-current assets,
including investments and other assets.
(Liabilities)
Total liabilities as of May 31, 2024 decreased by 3,053 million yen from the end of the previous consolidated
fiscal year to 8,790 million yen. This was due to decreases of, respectively, 2,969 million yen in current liabilities,
including electronically recorded obligations-operating, and 83 million yen in non-current liabilities, including
long-term borrowings.
(Net assets)
Net assets as of May 31, 2024 increased by 526 million yen from the end of the previous consolidated fiscal
year to 40,070 million yen. This was mainly due to an increase in retained earnings.
(3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements
There is no change to the full-year forecasts for the financial year ending August 31, 2024 announced on
October 11, 2023.

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GIKEN LTD. (6289) Consolidated Financial Results for the Nine Months Ended May 31, 2024

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
As ofAugust 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade, and contract assets
Electronically recorded monetary claims-operating
Finished goods
Work in process
Costs on construction contracts in progress
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Machinery, equipment and vehicles
Land
Construction in progress
Other
Accumulated depreciation
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

-5-

As of
May 31, 2024

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

9,283
4,646
983
4,353
1,814
50
2,676
357
(6)
24,1598,256
12,553
9,699
1,047
1,548
(13,920)
19,185182

8,714
12,867
9,727
816
1,556
(14,812)18,870
124

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

1,926
1,909
1,892
(20)
5,707
24,701
48,861

GIKEN LTD. (6289) Consolidated Financial Results for the Nine Months Ended May 31, 2024

(Millions of yen)
As ofAugust 31, 2023
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations-operating
Short-term borrowings
Income taxes payable
Contract liabilities
Provision for bonuses
Other provisions
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

-6-

As of
May 31, 2024

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

1,346
437
92
519
3,597
410
2,023
8,426

314
4
129
447
11,844

219
0
145
364
8,790

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

8,958
10,12822,392(1,783)39,695

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

124
182
67
374
40,07048,861

GIKEN LTD. (6289) Consolidated Financial Results for the Nine Months Ended May 31, 2024
(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(For the nine months ended May 31)(Millions of yen)
For the nine months ended
May 31, 2023
Net sales
Cost of sales
Gross profit (loss)
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Rental income from real estate
Foreign exchange gains
Surrender value of insurance policies
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rental expenses on real estateCommission expenses
Fiduciary obligation expenses
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary losses
Impairment loss
Loss on liquidation of subsidiaries and associates
Total extraordinary losses
Profit (loss) before income taxes
Income taxes-current
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent-7-

For the nine months ended
May 31, 2024

21,196
13,244
7,951
5,775
2,176

22,133
13,770
8,363
5,526
2,837

6
11
53
26
53
151

11
14
55
97
66
91
337

56
13
4
74
2,253

1
14
10
9
5
42
3,132

115
1,367
1,483
770
532
237
14
223

3,132
914
2,218
2,218

GIKEN LTD. (6289) Consolidated Financial Results for the Nine Months Ended May 31, 2024

(Quarterly Consolidated Statements of Comprehensive Income)(For the nine months ended May 31)(Millions of yen)
For the nine months ended
May 31, 2023
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests-8-

For the nine months ended
May 31, 2024

237

2,218

(18)
(25)
(44)
0
(88)
149

62
223
(3)
282
2,500

167
(18)

2,500
-

GIKEN LTD. (6289) Consolidated Financial Results for the Nine Months Ended May 31, 2024
(3) Principal Notes for Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.
(Notes on Significant Changes in the Amount of Shareholders’ Equity)
There is no relevant information.
(Application of Special Accounting for Preparing Quarterly Consolidated Financial Statements)
・Calculation of tax expenses
Tax expenses are calculated by reasonably estimating the effective tax rate after tax effect accounting is applied to the
profit before tax for the consolidated fiscal year which includes the nine months under review and then multiplying the
profit before tax by said estimated effective tax rate.
(Revenue Recognition)
The information on the disaggregation of revenue from contracts with customers is shown in the “(Segment Information),(3) Principal Notes for Quarterly Consolidated Financial Statements, 2. Quarterly Consolidated Financial Statements andPrincipal Notes.”-9-

GIKEN LTD. (6289) Consolidated Financial Results for the Nine Months Ended May 31, 2024

(Segment Information)
I
For the nine months ended May 31, 2023 (September 1, 2022 to May 31, 2023)
1. Information on the Amounts of Net Sales and Profit/Loss by Reportable Segments and Information on the
Disaggregation of Revenue(Millions of yen)
Reportable segments

Posted amount to the

Adjusted
Total

quarterly consolidated
statements of income(Note 2)amount(Note 1)

Construction
Machinery

Press-in WorkJapan

13,466

4,578

18,044-18,044

Other regions

1,181

1,970

3,151

-

3,151

Revenue from contracts
with customers

14,648

6,548

21,196-

21,196

14,648

6,548

21,196-

21,196

597

235

832

(832)

-

Total

15,245

6,784

22,029(832)

21,196

Segment profit

3,317

831

4,149

(1,972)2,176

Net sales

Net sales to externalcustomers
Intersegment net sales
and transfer(Notes) 1. The segment profit adjustment of negative 1,972 million yen includes inter-segment transaction
eliminations of negative 57 million yen and corporate expenses not allocated to any reportable segment ofnegative 1,915 million yen. The corporate expenses are mainly general administrative expenses notbelonging to any reportable segment.
2. Segment profit is adjusted with operating profit presented in the quarterly consolidated statement of income.
2.

Information on Impairment Loss for Non-current Assets by Reportable Segment(Millions of yen)
Construction
Machinery

Impairment loss

Corporate andelimination

Press-in Work
-

-

115

Total
115

(Note) The amount of “Corporate and elimination” represents an impairment loss on corporate assets, which do notbelong to any reportable segment.

10

GIKEN LTD. (6289) Consolidated Financial Results for the Nine Months Ended May 31, 2024II

For the nine months ended May 31, 2024 (September 1, 2023 to May 31, 2024)
1. Information on the Amounts of Net Sales and Profit/Loss by Reportable Segments and Information on the
Disaggregation of Revenue(Millions of yen)
Reportable segments
Construction
Machinery

Posted amount to thequarterly consolidated

Adjusted
amountTotal
Press-in Workstatements of income(Note 2)

(Note 1)

Net salesJapan

12,575

6,775

19,351-

19,351Other regions

2,577

204

2,782

-

2,782

Revenue from contracts
with customers

15,153

6,980

22,133-

22,13315,153

6,980

22,133-

22,133

329

124

453

(453)

-

Total

15,482

7,105

22,587(453)

22,133

Segment profit

3,537

1,126

4,664

(1,826)

2,837

Net sales to externalcustomers
Intersegment net sales
and transfer(Notes) 1. The segment profit adjustment of negative 1,826 million yen includes intersegment transaction eliminationsof 67 million yen and corporate expenses not allocated to any reportable segment of negative 1,893 million
yen. The corporate expenses are mainly general administrative expenses not belonging to any reportablesegment.
2. Segment profit is adjusted with operating profit presented in the quarterly consolidated statement of income.
2.

Information on Impairment Loss for Non-current Assets by Reportable Segment
There is no relevant information.

11