This document has been translated from the Japanese original for reference purposes only. In the eventof any discrepancy between this translated document and the Japanese original, the original shallprevail. RIKEN TECHNOS CORPORATION assumes no responsibility for this translation or for direct,
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RIKEN TECHNOS CORPORATION
Financial Results Briefing
for the Fiscal Year Ended March 2022
May 20, 2022

Overview of financial resultsfor FY ended March 2022

Aiming to become the leading provider of comfort for all living spaces

1Summary of consolidated financial results for FY ended March 2022
Units: Million Yen,AccountFY ended
March 2022

FY ended
March 2021

Variance(amount)

Variance(%)

Net sales

109,923

88,224+21,699+24.6%

Gross profit

18,915

16,814+2,101+12.5%

Operating profit

6,292

5,313+979+18.4%

Ordinary profit

6,889

5,652+1,237+21.9%

Profit attributable toowners of parent

3,941

3,234+707+21.9%

Earnings per share

62.47

51.22+11.25+22.0%

ROS

5.7%

6.0%

- 0.3%-ROE

7.1%

6.3%+0.8%-*Net sales and each measure of profit were all-time high marks.
Aiming to become the leading provider of comfort for all living spaces

2

Net sales by segment
Net sales for FY ended
March 2022

100

105

100
93

100

97.8

98.8

88.2
20.8

21.0
21.1

109.9
25.1(+4.1)

23.2

80

60

21.6 billion yen increase from theprevious fiscal year (24.6% increase)

Change in sales volume with volume for the fiscal year ended March 31, 2019 taken as 100(Billion yen)120

109.9 billion yen

20.8

21.4(+4.0)

17.4
30.6

40

2024.230.8

24.3

29.7

(+5.6)

Building & Construction
Housing, buildings, construction
materials, civil engineering
markets, etc.
Electronics
Energy, telecommunications, ITequipment markets, etc.

Daily Life & Healthcare
Medical, materials for daily life,
food packaging markets, etc.

25.0
32.4
24.3

Transportation
Automobile, railroad, shipmarkets, etc.

(+8.1)

0
FY ended March 2019 FY ended March 2020 FY ended March 2021 FY ended March 2022
Aiming to become the leading provider of comfort for all living spaces

3

Net sales by region
Net sales for FY endedMarch 2022

109.9 billion yen

21.6 billion yen increase from theprevious fiscal year (24.6% increase)(Billion yen)

120

109.9

100

97.8

98.8

12.4

12.4

16.3

88.2
11.2

80

31.1

29.5

53.8

56.3

FY ended March 2019

FY ended March 2020(+5.1)
North America

35.6(+9.6)

26.0

60

OtherAsia excl. JapanJapan

40

20

50.5

57.4(+6.9)

0Overseas sales ratio

45.0％

42.9％

FY ended March 2021

42.7％

Aiming to become the leading provider of comfort for all living spaces

FY ended March 2022

47.8％
4

Analysis of factors underlying difference in operating profit
compared to previous year
Unit: Miillion yen
Fixed cost reductions

8,000

Exchange rate impact

116
Domestic volume
increase
7,000

Overseas volume
increase

6,000

Logistics costs increase362

Raw material price hikes

612

531

1,099

1,180
6,292

5,000

5,313

979 million yen increase in profit

4,000

FY ended
March 2022

FY ended
March 2021
Aiming to become the leading provider of comfort for all living spaces

5Analysis of factors underlying difference in operating profit
compared to forecast
Unit: Million yen
9,000

Domestic volume
increase

8,000

SG&A reductions

Fixed cost
reductions
7,000

215

92

Exchange rate
impact83

Logistics costs
increase
Raw material price
hikes

116

324

806

6,000

6,500
5,000

Shortfall of 208 million yen

6,292

4,000

FY ended March2022 (actual)

FY ended March2022 (forecast)Aiming to become the leading provider of comfort for all living spaces

6

Consolidated balance sheet and cash flow statement

Consolidated balance sheet

Consolidated statementof cash flows
Unit: Million yen

Total assets

Total liabilities
37,192 million yen

102,641 million yenIncrease of 7,432 million
yen from the end of theprevious fiscal year

Current assets 65,118
million yen
Non-current assets
37,522 million yen

Increase of 3,060 million
yen from the end of theprevious fiscal year

FY ended
March 2022

Operating CF

4,572- 4,815

Investing CF(2,438)+564

Financing CF(2,946)- 149

Increase/decrease(403)- 3,672

Balance at endof fiscal year

20,677- 403

Total net assets
65,448 million yen
Increase of 4,371 million
yen from the end of theprevious fiscal year

Variance

Aiming to become the leading provider of comfort for all living spaces

7

Segment overview

Aiming to become the leading provider of comfort for all living spaces8I Transportation (TR)
(Unit: Million yen)

Medium-term business plan targets: Net sales 36.7 billion yen, operating profit 3.5 billion yen

40,000

Actual results for FY ended March 2022

4,000

8,146 million yen revenue increase 590 million yen profit increase

3,000

33.5% YoY increase

32,45729,75830,0005,000

24,31020,000

2,737

2,740

2,000

2,146
10,0001,000
Domestic sales

Overseas salesProfit00
FY ended March 2020

FY ended March 2021

FY ended March 2022

27.5% YoY increase○ In Japan, although the automotive market fell to 93% of theprevious year, revenue grew due to higher sales of elastomer
compounds.
○ Overseas, automotive market revenue climbed as part of arecovery from the impact of COVID-19; compound sales rose.
○ Segment profit increased due to higher domestic sales.

Sales of compounds for automotive electrical components Sales of compounds for automobile interiors and exteriors(Billion yen)

14.7

-15.0％

151.8
103.3+29.6％

12.5
1.5
3.0

Medium-term business(Billion yen)

16.2 plan target: 17.4 billion yen-18.3%

1.8103.98
Japan
ASEAN.
China
North America

10.15

9.3

7.7

00.3

0.3

0.3

FY ended
March 2020

FY ended
March 2021

FY ended
March 2022

5+17.6%

10.4

8.5

+2%

9070

FY ended
March 2020

-16.7%
1.60.61.2

1.0

FY ended
March 2020

FY ended
March 2021

30
FY ended
March 2020

FY ended
March 2021

FY ended
March 2022

Number of vehicles produced
by Japanese automakers

FY endedMarch 2022

(Million）

11050

Medium-term businessplan target: 1.4 billion yen

+60%

10.00
Compound usage by Japanesewire harness manufacturers(Billion yen)
1.8

1.2(1,000 tons)• Market recovery in global
production by Japanese
automakers• Revenue increased due to higher
sales volumes of thin-walled
electric wires in ASEAN.

Medium-term businessplan target: 12.4 billion yen

Sales of compounds for motorcycle parts

FY ended
March 2021

FY ended
March 2022

• Modest recovery in global
production by Japanese
automakers• Revenue in Japan increased due toexpanded sales of compounds forsealing parts to major customers.

+3%

20

FY ended
March 2020

Number of motorcycles
produced

1003010(Million)

FY ended
March 2021

FY ended
March 2022

Aiming to become the leading provider of comfort for all living spaces• Modest recovery in motorcycle
production

75• Revenue increased due to captureof new customers in ASEAN.

25+15%

500

FY ended
March 2020

9FY ended
March 2021

FY ended
March 2022

II Daily Life & Healthcare (DH)
(Unit: Million yen)

Medium-term business plan targets: Net sales 28.7
billion yen, operating profit 2.5 billion yen

40,0008,000

Actual results for FY ended March 2022

6,000

5,651 million yen revenue increase 884 million yen profit decrease

30,68830,00025,03724,30822.6% YoY increase
20,000

4,000

※

2,740
10,000

1,856

1,860
Domestic sales

Overseas sales

2,000Profit

00
FY ended March 2020

FY ended March 2021

FY ended March 2022

* The year ended March 31, 2022 includes sales for former consolidated subsidiary Riken Fabro
for the three months from January to March 2022, which were recorded by RIKEN TECHNOS
following Riken Fabro’s absorption.

85.9

Medium-term businessplan target: 7.1 billion yen

+8.2%

+3.4%

6.1

5.2

(Billion yen)JapanOverseas

5.6

124

0.9
FY ended March 2020

0.9
FY ended March 2021

1.0(Billion yen)

80

FY ended March 2022

• Revenue in Japan grew with expanding sales of highperformance elastomer compounds to new customers.
• Overseas, sales volume declined due to the shutdownof customer plants as a result of COVID-19; revenuerose due to the effects of price increases for certainproducts.

Dialysis circuit materials
market

+6%
60

4020
FY ended
FY ended
FY ended
March 2020 March 2021 March 2022

11.7

12.2

0.8

0.9

15.2

10.9

11.3

Medium-term businessplan target: 13 billion yen

2.7 *
0.9

83

0+25%

+4.3%

166.6

55.0

○ In Japan, business is recovering from the impact of COVID-19.
Sales rose for compounds in the materials-for-daily-life market,
films for the media and signage field, and commercial-use wrap
in the food wrapping materials market, leading to revenue growth.
○ Overseas, business is recovering from the impact of COVID-19.
Sales rose for PVC compounds for the medical and materialsfor-daily-life markets, leading to overall revenue growth.
○ Segment profit declined due to delays in passing on higher raw
material prices.
Sales of food wrapping materials (including three months of Riken Fabro sales due to its absorption)

Sales of medical compounds and film
(Billion yen)

32.3% YoY decrease

11.6

JapanOverseas* Due to Riken
Fabro absorption(Billion yen)

0FY ended March 2020

FY ended March 2021

FY ended March 2022

Commercial use wrapmarket in Japan

40+2%• Revenue from commercial-use wrap increased due tothe steady capture of demand associated with COVID19 in home dining.
• Revenue from small roll wrap increased due toexpanded sales of home use wrap to large retail storesand recovery in the food services market.

Aiming to become the leading provider of comfort for all living spaces

30

2010

FY ended
March 2020

FY ended
March 2021

10

FY ended
March 2022

III Electronics (EL)
(Unit: Million yen)

Medium-term plan targets: Net sales 25.5 billion yen,operating profit 1.7 billion yen

21,493

20,88320,00017,4301,200900

Actual results for FY ended March 2022

4,063 million yen revenue increase 59 million yen profit increase
23.3% YoY increase

600

10,000439

379282
Domestic sales

300

Overseas sales

Profit

15.8% YoY increase○ Revenue in Japan increased due to recovery from the impact ofCOVID-19 and higher sales of compounds in the energy andtelecommunications markets.
○ Overseas, revenue increased due to recovery from the impactof COVID-19 and higher sales of PVC compounds.
○ Segment profit increased due to higher sales.

00
FY ended March 2020

FY ended March 2021

FY ended March 2022

Sales of PVC compounds for electric wires(Billion yen)+48%

15-13.4%

Sales of optical film
Medium-term businessplan target: 10.7 billion yen

13.6(Billion yen)

+19%

Medium-term businessplan target: 3.2 billion yen

- 21%

2

11.0

9.2

106.0

Japan
Overseas

7.4

1

4.9

1.6

5
5.0

4.3

6.2
(1,000 tons)

FY ended March 2020

FY ended March 2021

1.5(Million)

Copper use indomestic copper wire

1,00001.9+2%

FY ended March 2022

+11%300
FY ended March 2020

FY ended March 2021

FY ended March 2022
20750

• In Japan, the energy market entered a recovery trend,and revenue grew following acceptance of ourstreamlining proposals to customers, boosting sales ofPVC compounds.
• Overseas, revenue increased due to higher sales ofPVC compounds in ASEAN and North America.

Optical film market
by application

5002500
FY ended
March 2020

FY endedMarch 2021

FY ended
March 2022

• Sales of ICE-µ thermal barrier film grew due to higher
automobile production in ASEAN, but revenue declined
due to discontinuation of the model used in an existinglarge-scale mobile project and a lull in demand for
RIKEGUARD.

Aiming to become the leading provider of comfort for all living spaces

+9%

100
FY ended
March 2020

FY ended
March 2021

Non-mobile

11FY ended
March 2022

MobileIV Building & Construction (BC)Medium-term business plan targets: Net sales 24.1
billion yen, operating profit 0.8 billion yen(Unit: Million yen)

25,15423,290

Actual results for FY ended March 2022

2,000

21,0331,500

20,0001,131

1,000561
500

10,0000(33)Domestic sales

Overseas sales

Profit0(500)FY ended March 2020

FY ended March 2021

FY ended March 2022

4,120 million yen revenue increase 1,164 million yen profit increase
19.6% YoY increase○ Revenue in Japan increased due to recovery from the impact ofCOVID-19 and higher sales of compounds and film to thehousing and non-housing markets.
○ Overseas, revenue increased due to higher sales of compounds
and films to the housing market, which was buoyed by the US
economic recovery.
○ Segment profit turned positive as a result of increased sales ofboth compounds and films.

Interior film sales

Sales of compounds for housing and construction materials(Billion yen)
15.0

11.6
10.0

0.9

Medium-term businessplan target: 9.6 billion yen

+18%

-13%

11.9
10.1

Japan

10.7

9.4

12.5

5.0
2.5

0.0

(Million m2)

FY ended March 2020

FY ended March 2021

FY ended March 2022

• Revenue in Japan increased due to the adoption of
new designs and new functional products in the nonhousing market as market conditions improved.
• Overseas, revenue increased due to a strong US
housing market and sales of newly designed products.

Floor area of new domestic
non-housing construction

1008.050
250
FY endedMarch 2020

FY endedMarch 2021

FY ended
March 2022

10.3

7.8Japan
6.3

3.7

4.1

4.3

3.7

Overseas4.0

0.0(Billion yen)

FY ended March 2020+11%

75+32%-3%

7.5

10.9

Medium-term businessplan target: 8.3 billion yen(Billion yen)

10.0

1.0

0.7

North America, other
5.0

YoY change: n/a

FY ended March 2021

FY ended March 2022

• In Japan, detached housing sales recovered from theprevious year, and sales of rigid PVC increased, leading
to increased revenue.
• Overseas, revenue increased due to expansion ofdemand in the US housing market and higher sales ofPVC compounds, especially in Thailand.

Aiming to become the leading provider of comfort for all living spaces

Domestic market for compounds
for housing and building
materials

30+7%
20

100

FY ended
March 2020

12FY ended
March 2021

FY ended
March 2022

Shareholder returns - Dividends
Dividend
policyWe will strive to achieve a consolidated dividend payout ratio ofaround 30% and will pay stable dividends, accounting for futurebusiness investment and capital adequacy.
(yen)InterimYear-end

Full-year

Annual dividend
payout ratio(consolidated)

FY ended
March 2020

8.00

8.00

16.00

33.3

2.1

FY ended
March 2021

4.00

12.00

16.00

31.2

1.9

FY ended
March 2022*

8.00

11.00

19.00

30.4

2.2

Dividend onequity (%)* The annual dividend for the fiscal year ended March 2022 was 19 yen, an increase of 3 yen from the previous year.
The dividend for the fiscal year ended March 2022 included a 70th anniversary commemorative dividend of 1 yen.
Aiming to become the leading provider of comfort for all living spaces

13

Financial Performance forecasts
for FY ending March 2023

Aiming to become the leading provider of comfort for all living spaces

14Consolidated earnings forecasts for year ending March 2023

Account
Net sales

Actual resultsfor FY ended
March 2022

109,923

Earnings
forecasts for FY
ending March2023

125,000(Unit: Million yen)
Variance

Net sales
Operating profit
12,000+13.7% 140,000
125,000

Operating profit

6,292

6,500

+3.3% 120,000

Ordinary profit

6,889

6,500

- 5.6% 100,000

Profit attributable toowners of parent

3,941

3,300

- 16.3%

Earnings per share(yen)10,000109,923
8,000

80,000

6,292

6,500

6,000

60,000

62.47

52.26

- 16.3%4,000

40,000

ROS

5.7%

5.2%

-

[Key points behind earnings forecasts]○ Assumption of higher prices for key raw materials such as PVC resin andplasticizers due to soaring domestic naphtha prices; assumption thatthese raw materials prices will remain at high levels○ Passing on raw material price increases to product prices
Assumed domestic naphtha price: 82,000 yen/kl
Assumed exchange rate: 117 yen/USD
Aiming to become the leading provider of comfort for all living spaces

2,000

20,00000
FY ended March 2022
(actual)FY ending March 2023
(forecast)15

Analysis of factors underlying difference in operating profit forecast(FY ending March 2023) compared to previous year
Unit: Million yen
8,000

Exchange rate
impactLogistics costs
increase

Improvement through product mix
7,000

Overseas volumeincrease

177

Energy costs increase

272

166

6,643

6,749

174

250

6,000

5,0006,292

6,292

6,469

6,499

6,500

208 million yen increase in profit
4,000

FY ending March2023 (forecast)

FY ended March 2022(actual)
Aiming to become the leading provider of comfort for all living spaces

16

Disclaimer

Plans, projections, strategies, and other statements that are not historical facts
presented in this document constitute forward-looking statements based on
information available at the time of preparation and involve various risks anduncertainties. Actual results may differ significantly from these projections due tochanges in the business environment and other factors. Furthermore, information
presented in this document concerning companies other than our company or ourgroup companies is based on publicly available information. We do not guarantee
the accuracy of such information.

For inquiries, please contact:
webmaster@rikentechnos.co.jp
Accounting Dept.

Aiming to become the leading provider of comfort for all living spaces

17