RIKEN TECHNOS CORPORATION
Financial and Management Results
Briefing for Fiscal Year
Ended March 2023
May 19, 2023

Overview of
Financial Results
Contents

Segment Overview
Medium- and LongTerm Initiatives

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

Copyright Ⓒ 2023 RIKEN TECHNOS CORP. All Rights Reserved.

Overview of
Financial Results

1. Overview of
Financial
Results

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

Segment Overview
Medium- and LongTerm Initiatives

Copyright Ⓒ 2023 RIKEN TECHNOS CORP. All Rights Reserved.

Summary of Consolidated Financial Results
for the Year Ended March 2023

｜ 1. Overview of Financial Results(Unit: million yen)

Actual results for Actual results for Year on YearYoY
the year ended
the year ended(YoY)
percentage
March 2022
March 2023
changechangeForecasts for theyear ended
March 2023*

Net sales

109,923

123,497

13,57412.3%

125,000

Gross profit

18,915

20,351

1,436

7.6%

-

Operating profit

6,292

7,506

1,214

19.3%

7,100

Ordinary profit

6,889

7,964

1,075

15.6%

7,600

Profit attributable toowners of parent

3,941

4,557

616

15.6%

4,000

Basic earnings per share

62.47

72.11

9.6

15.4%

63.28

5.7

6.1

0.4

-

5.7

ROS(%)

Naphtha price in the year ended March 2023: 76,600 yen/KL;
average exchange rate: 130.78 yen/USD*Upwardly adjusted figures asof October 31, 2022

➢Revenue and profit increased due to measures to pass on raw material price hikes to
product prices and the effects of yen depreciation.
➢Net sales and all profit measures of the fiscal year set all-time highs.
4

Net Sales by Segment
Net sales for the year ended
March 2023
(100 million yen)

1,500

123.4

｜ 1. Overview of Financial Results

13.5 billion yen increase from the same term of previous year
billion yen(12.3% increase)

Change in sales volume with volume for the fiscal year ended March 2020 set to 100
105

100

98

93

100

1,234
1,099

1,000

988
232
(23.6%)

208(21.1%)

500

243(24.6%)

297(30.1%)

882
210(23.8%)

251

271
+20

(22.9%)

214+32(22.0%)

246

174
306

250

(27.9%)

334
+28

324
(29.5%)+5640(27.1%)(28.4%)(27.6%)

60(19.9%)

Electronics
Energy, telecommunications, ITequipment marlets, etc.

(19.6%)(19.8%)

243

80

Construction
Housing, buildings, construction
materials, etc

380

20

(30.8%)

0

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

Transportation
Automobile, railroad, ship
market, etc

0FY2019FY2020

FY2021

FY2022* Percentages in parentheses on the bar graphindicate each segment’s share of overall results➢ As called for in the strategy of the Medium-term Business Plan, the share corresponding
to the Transportation segment increased.

5

Net Sales by Region
Net sales for the year ended
March 2023

123.4

｜ 1. Overview of Financial Results

13.5 billion yen increase from the same term of previous year
billion yen(12.3% increase)(100 million yen)

1,500
1,234
1,099
1,000

988
124

(12.6%)

295(29.9%)

500

882
112

(12.8%)

260

163

+48

211
(17.1%)

North America(14.8%)

356

+62

418
(33.9%)(32.4%)

Asia
Japan

(29.6%)

563(57.1%)

505(57.3%)

600

574(52.2%)+26(48.6%)

0
Overseas
sales ratio

Other

FY2019FY2020

FY2021

FY2022

42.9%

42.7%

47.8%

51.4%

* Percentages in parentheses on
the bar graph indicate eachsegment’s share of overall results➢ Overseas sales ratio exceeded the Medium-term Business Plan target of 50%.

6

Analysis of Factors Underlying YoY Change
in Operating Profit｜ 1. Overview of Financial Results(Unit: million yen)

Increase in
selling prices

Yendepreciation
effects

Improvements
in productivity

SG&A
reductioneffects

Increase in
R&D costs

Increase inlogistics costs

Increase inelectricity rates

Decrease insales volume

10,000
9,000

504
837

8,000
7,000

235

102

246

532
768

1,287

6,000
5,000
4,000
3,000

6,292

Profit increase of 1,214 million yen

7,506

2,000
1,000
0

Year ended
March 2022

Year ended
March 2023
7

Consolidated Balance Sheet｜ 1. Overview of Financial Results(Unit: million yen)March 31,2022

March 31,2023

65,11871,667

Cash and deposits

20,702

Trade receivables
Inventories

Increase/decrease

March 31,2022

March 31,2023

6,549 Liabilities

37,192

39,837

2,645

23,481

2,779

Current liabilities

31,40933,876

2,467

26,34428,4952,151

Non-current liabilities

5,783

5,961

178

17,404

18,7341,330 Net assets

65,44872,165

6,717

668

956

288

Share capital

8,514

8,514

-

37,52240,334

2,812

Capital surplus

6,597

6,597

-

Property, plant, andequipment

25,136

27,077

1,941

Retained earnings

38,20041,463

3,263

Intangible assets

2,106

2,286

180

4,449

6,621

2,172

Investments andother assets

10,27910,970

691

7,686

8,969

1,283

Total assets

102,641

112,002

9,361

102,641

112,002

9,361

Current assets

Other
Non-current assets

Other
Non-controllinginterests
Total liabilities and net
assetsIncrease/decrease➢Increase in cash and deposits due to increase in operating CF➢Increase in trade receivables, inventories, and trade payables due to higher raw material
prices➢Interest-bearing debt: 10,578 million yen

8Consolidated Statement of
Cash Flows｜ 1. Overview of Financial Results(Unit: million yen)

Year ended
March 2022

Year ended
March 2023

Increase/
Decreasea. Cash flows from operating activities

4,572

8,524

3,952

b. Cash flows from investing activities▲2,438▲3,955▲1,517▲2,280▲3,675▲1,395

▲455

▲311

144

298

31

▲267

2,134

4,569

2,435

▲2,946▲2,335

611

407

543

136

Net increase/decrease in cash and cash
equivalents (c + d + e)

▲403

2,777

3,180

Cash and cash equivalents at end of period

20,67723,4542,777

Purchase of property, plant, and equipment
Purchase of intangible assets
Other
c. Free cash flow (a + b)
d. Cash flows from financing activities
e. Other➢Cash and deposits increased due to the generation of operating cash flow significantly
exceeding investments.

9Consolidated Earnings Forecast for theYear Ending March 2024
Actual results
for year ended
March 2023

｜ 1. Overview of Financial Results(Unit: million yen)

Earnings
forecast foryear ending
Mach 2024

Compared to previous
year
Difference

Growth rate

123,497

128,000

4,503

3.6%

Operating profit

7,506

7,600

94

1.3%

Ordinary profit

7,964

7,800

▲ 164 ▲2.1%

Profit attributable toowners of parent

4,557

4,500

▲ 57 ▲1.3%

Basic earnings per share (yen)

72.11

71.14

▲ 0.97 ▲1.3%

ROS (%)

6.1

5.9

▲ 0.2

-

ROE (%)

7.5

7.0

▲ 0.5

-

Net sales

Projected domestic naphtha price: 70,000 yen/KL; projected exchange rate: 133 yen/USD➢Net sales should set new record highs as demand grows in each segment.
➢Profits should stay largely unchanged at each stage, due in part to rising costs, including
electricity rates.

10Analysis of factors underlying change inoperating profit for year ending March 2024
(forecast)｜ 1. Overview of Financial Results(Unit: million yen)
Increase insales volumes

Time lag in passing on
raw material prices to
product prices

Yendepreciation
effects

Increase in
SG&A

118

243

Increase inlogistics
costs

Increase in R&D
costs

Increase in electricity
rates and othermanufacturing costs

10,000

646

9,000

274

280
1,062

1,189

8,000
7,000
6,000
5,000
4,000

8,662
7,506

3,000

Increase of 94 million yen (+1.3%)

7,600

7,600

2,000
1,000
0

Year ended
March 2023
(actual results)

Year ending
March 2024
(forecast)11

Overview of
Financial Results

2. Segment
Overview

Segment Overview
Medium- and LongTerm Initiatives

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

Copyright Ⓒ 2023 RIKEN TECHNOS CORP. All Rights Reserved.

Transportation

Wire Harnesses

Molded Parts for Automobiles

13

Transportation｜ 2. Segment Overview(Unit: million yen)

50,0006,000
42,50040,00038,09032,45730,00020,00039,300
4,000

3,858

3,600

3,600

Actual results forthe year ended
March 2023

5,633 million yen revenue increase (+17.4%)
1,121 million yen profit increase (+40.9%)◼ Sales increased as domestic and overseas
automobile production recovered and raw
material price hikes were passed on to productprices.

◼ Segment profits grew due to expanding salesin Japan and overseas.

2,737
2,000

Forecast for the
fiscal year ending
March 2024

10,0000

0
FY2021
actualDomestic sales

FY2022
actualFY2023
forecast

Overseas sales

FY2024planned (final
year ofMedium-term
BusinessPlan)

1,210 million yen revenue increase (+3.2%)
258 million yen profit decrease (▲6.7%)◼ Sales are forecast to increase as domestic andoverseas automobile production recovers andsales of sealing parts and functional parts grow.
◼ Segment profits are forecast to decrease due inpart to the negative impacts of rising electricity
rates and other manufacturing costs.

Segment profit

14

Transportation｜ 2. Segment Overview

Focus Area ① Wire Harnesses

Focus Area ② Molded Parts for Automobiles

Regional compound use by Japanese wire harness manufacturers and our sales of compounds
for wire harnesses

Japanese automobile production and sales of compounds for automotive molded parts(100 million yen)

300
250

87
78

150

90

Market Growth: +4%
Net Sales: +19%

100

81

195

162

26

28

18

40

38

206

24

128

3

3

3

4

FY2021
actualFY2022
actualFY2023
forecast

FY2024planned (final
year ofMedium-term
Business Plan)

North America

90
141

45

20

99

112

123

1,000

Japan

* Research by RIKENTECHNOS based on
figures published by
Japanese automakers• Sales grew due in part to efforts to pass on raw material price hikes to product prices.
• We made progress in boosting sales of thin-walled electric wires.

Full-year measures for the year ending March 2024
• Automobile production is projected to grow by about 7% YoY. We plan to capture growing
demand from Japanese automakers, centered on ASEAN.

Japanese
automobile
production

500 * Based on figures

Compound usage

0

Compound
sales

1,500

China

Full-year results for the year ended March 2023

• Efforts to further boost sales of thin-walled electric wires

2,500 *FY2021 vs. FY2022
2,000

40
126

2,325

60

51

123

Net Sales: +13%

2,574

135

ASEAN

101

Market Growth:

3,000 +3%
2,247

80

100

0

180

*FY2021 vs. FY2022

39

50(10K vehicles)
2,504

192

200

(100 million yen)

(1,000 t)

0FY2021
actualFY2022
actualFY2023
forecast

FY2024planned (final
year ofMedium-term
Business Plan)0published by Japanese
automakers

Full-year results for the year ended March 2023
• Sales increased to major Japanese makers of sealing parts in Japan, ASEAN, China,
India, and elsewhere.
• Functional parts and materials used by customers in Japan were deployed worldwide.
• We made progress on securing new deals for functional parts (parts and materials forexterior INJ and EVs).

Full-year measures for the year ending March 2024
• Boost sales of molding and sealing materials (expanding adoption by major Japanesecustomers and pursuing overseas development)• Boost sales of functional materials and pursuing overseas development; promote
15material conversion and rubber substitution

Daily Life&
Healthcare
Medical (PVC)

Rubber Substitutes

Environmentally Friendly
Materials *p. 36

16

Daily Life & Healthcare｜ 2. Segment Overview(Unit: million yen)

40,0006,000
35,10035,40033,49230,68830,0004,000

20,000
※

2,500

1,856
10,000

0

2,000

1,850
1,477

FY2021
actualFY2022
actualDomestic sales

FY2023
forecast

Overseas sales

FY2024 planned(final year of
Medium-term
Business Plan)

0

Segment profit* FY2021 figures include sales of Riken Fabro for the three-month period January-March2022 recorded by RIKEN TECHNOS after the absorption of that consolidated subsidiary.

Actual results forthe year ended
March 2023

2,804 million yen revenue increase (+9.1%)
379 million yen profit decrease (▲20.4%)◼ Domestic sales increased due to expanded sales ofcompounds in medical and lifestyle materials markets.
◼ Overseas sales increased due to growth in sales ofcompounds in ASEAN medical markets.
◼ Segment profits declined due to delays in passing on raw
material price hikes to product prices for food wrapping
materials in the first half.
Forecast for the
fiscal year ending
March 2024

1,608 million yen revenue increase (+4.8%)373 million yen profit increase (+25.3%)◼ Domestic sales are forecast to grow due to expanded
sales of compounds in medical and lifestyle materials
markets as well as expanded sales of food wrapping
materials attributable to recovery in demand forrestaurants.
◼ Overseas sales are forecast to increase due to higher
sales of compounds, centered on medical markets.
◼ Segment profits are forecast to grow due to expanding
domestic and overseas sales. This is despite the effects
of increasing electricity rates and other manufacturingcosts.
17

Daily Life & Healthcare｜ 2. Segment Overview

Focus Area ① Medical (PVC)

Focus Area ② Rubber Substitutes

Global dialysis circuit sales volumes and our sales of medical PVC compounds

Domestic medical rubber production and our sales of rubber substitute compounds(100 million yen)

433

(Million sets)

401

120

372

400

346

100
80

84

350
81

80
60

250

56

Market Growth: +8%
Net sales: +43%
*FY2021 vs. FY2022

Overseas sales
Domestic sales

200
77

40

81

78

54

150
100

20
0

300

(100 million yen)

Global dialysis
circuit volumes* Source: Medical Life Science,
Fuji Chimera Research Institute

50
2

3

3

3

FY2021
actualFY2022
actualFY2023
forecast

FY2024planned (final
year ofMedium-term
Business Plan)

0

35
30

(10K tons/year)
6.1

6.1

6.2

5.5

7
6

25

5

20

4
29

15

3

22

10

14

17

2

5

0

Market Growth:+11%
Net sales: +21%
*FY2021 vs. FY2022

Net sales

Medical rubber
production* Source: The Japan Rubber
Manufacturers Association

1
FY2021
actualFY2022
actualFY2023
forecast

FY2024planned (final
year ofMedium-term
Business Plan)0

Full-year results for the year ended March 2023

Full-year results for the year ended March 2023

• Sales grew due to increased sales of medical PVC compounds in ASEAN
and passing on of raw material price hikes to product prices.

• Sales grew due to the increase in new sales of elastomer compounds for
medical use and in sales of elastomers for food markets.

Full-year measures for the year ending March 2024

Full-year measures for the year ending March 2024

• Boost sales in ASEAN centered on Japanese customers. Sales for themain application of dialysis circuits are projected to grow by about 8%.
• Develop new non-Japanese customers; boost sales in ASEAN.

• Boost domestic sales of newly adopted elastomer compounds for
medical use and in lifestyle materials markets, centered on articles foreveryday use.
• Overseas, develop new sales of elastomer to lifestyle materials markets
in Thailand.

18

Electronics

Electric Power and Industrial
Wires

Telecommunications

Optical Films

19

Electronics｜ 2. Segment Overview(Unit: million yen)

Actual results for the 3,133 million yen revenue increase (+14.6%)
year ended March
557 million yen profit increase (+127.0%)2023

29,00030,00024,626◼ Domestic sales increased due to higher sales of PVC
compounds for electric power and industrial wires market
and telecommunications market.

25,4002,000

21,493◼ Overseas sales increased due to higher sales of PVC
compounds in North America and ASEAN.

◼ Segment profits grew due to higher sales both
domestically and overseas.

20,0001,300
996

10,000

Forecast for the
fiscal year ending
March 2024

1,050

◼ Domestic sales are forecast to increase for the year despite
unfavorable market conditions for electric power andindustrial wires.

439
0

0
FY2021
actualDomestic sales

774 million yen revenue increase (+3.1%)
54 million yen profit increase (+5.4%)

FY2022
actualFY2023
forecast

Overseas sales

FY2024planned (final
year ofMedium-term
Business Plan)

Segment profit◼ Overseas sales are forecast to increase due to expanded
sales of PVC compounds for telecommunications and for
robotic factory automation.
◼ Segment profits are forecast to grow due to higher sales,both domestically and overseas.
20

Electronics｜ 2. Segment Overview

Focus Area ① Electric Power and Industrial
Wires

Focus Area ② Telecommunications

Focus Area ③ Optical films

Domestic electric power and construction electricity market wire copper volumes
and our sales of compounds

Domestic telecommunications market wire copper volumes and our sales ofcompounds

Automotive glass substitute film demand and our sales of optical films(100 million yen)343

(1,000 t)

349

355

365

350

200
165

123
109
4

5

250

125

5

200
158

50

105

118

120

150
100

50
0

FY2021
actualFY2022
actualFY2023
forecast

FY2024planned (final
year ofMedium-term
Business Plan)* FY2021 vs.
FY2022(100 million yen)

120

230

100

235

245

247

250
87

90

200

0

Electricalmaterial-related
components

Electric power
and industrial
wiresElectric powerand construction
electricity sales

80
60

67

Market Growth: +2%
Net sales: +30%

* FY2021 vs.
FY2022

150

37

100

Robotics and factory
automation

Telecommunications
and mobility

40
52

53

52

20
* Source: The
Japanese Electric
Wire & Cable
Makers’ Association

0

FY2021
actual

216

227

238

FY2022
actualFY2023
forecast

FY2024planned (final
year ofMedium-term
Business Plan)

250

20

150

50

Electric power andconstruction
electricity market* Source: The Japanese
0 Electric Wire & Cable
Makers’ Association

30

15
10

15

16

100

19

50

5
0

* FY2021 vs.
FY2022

200

19

17

50

30

Market Growth:+5%
Net sales: +7%

250

35

25

71
35

(Million m2)(100 million yen)

(1,000 t)

300

7

150

100

400

Market Growth: +2%
Net sales: +13%

FY2021
actualFY2022
actualFY2023
forecast

FY2024planned (final
year ofMedium-term
Business Plan)

0

Optical films(total)Automotive
windows* Source: Research
by RIKENTECHNOS

Full-year results for the year ended March 2023

Full-year results for the year ended March 2023

Full-year results for the year ended March 2023

• Expanded domestic market share through shares wrested fromcompetitors and replacement of work done in-house bycustomers• Made progress on new customer research for electric power andindustrial wires in ASEAN.
• Established tin-free ACS formulation, initiated market research• Expanded sales in the domestic and overseas robotics FA cable
markets• Launched sales of FFC for EV vehicles• Launched sales of EV charging cables in the North American
market• Favorable sales in the growing segment of automotive thermal
barrier films led to 7% sales growth from last year.

Full-year measures for the year ending March 2024
Full-year measures for the year ending March 2024
• Replace competitors and in-house work by customers in Japan• Boost foreign sales based on sales strategies for non-Japanesecustomers for electric power and industrial wires• Boost sales by formulating sales strategies for EV charging
cables in European and Asian markets, in addition to North
America.
• Boost sales in overseas markets by formulating sales strategies
for robotics FA cables.

Full-year measures for the year ending March 2024
• Concentrate on strengthening support for existing dealers andestablishing new dealers for automotive thermal barrier films asbrand penetration advances thanks to growing sales.
• Target stable sales for semiconductor use over the medium tolong term by promoting evaluations by new users, which had
stagnated during COVID-19.

21

Building&Construction
Construction Films

Housing and Building
Materials

22Building & Construction｜ 2. Segment Overview(Unit: million yen)

40,0004,000

30,00027,18628,10028,000

Actual results for theyear ended March
2023◼

Domestic sales grew thanks to increased sales of PVC
compounds for resin sashes attributable to the Japanese
government’s campaign to promote energy conservation
in homes in 2023. This was despite stagnant housing
starts.

◼

Overseas sales grew due to expanding sales of PVC
compounds in North America.

2,000

◼

Segment profits declined due to lower domestic sales offilms and delays in passing on raw material prices to
product prices.

1,000

Forecast for the
fiscal year ending
March 2024

3,000

25,15420,0001,400
10,000

1,131

1,050

1,050

0

Domestic sales

FY2022
actualFY2023
forecast

Overseas sales

FY2024planned (final
year ofMedium-term
Business Plan)

Segment profit

914 million yen revenue increase (+3.3%)
0 million yen(0.0%)◼

Domestic sales are projected to grow thanks to higher
sales centered on PVC compounds for resin sashes
attributable to the Japanese government’s campaign topromote energy conservation in homes in 2023 andsuccess in meeting expanding post-COVID-19 remodelingdemand with construction exterior films.

◼

Segment profits are forecast to remain largely unchanged
due to in part to the impact of higher electricity rates andother manufacturing costs.

0
FY2021
actual

2,032 million yen revenue increase (+8.1%)
81 million yen profit decrease (▲7.1%)

23

Building & Construction｜ 2. Segment Overview

Focus Area ① Construction Film

Focus Area ② Housing and Building Materials
Construction market investment and our sales of compounds for housing
and building materials

Floor area of new domestic non-housing construction and our sales of
construction films(100 million yen)

120

44.3

44.1

100
85

80

10

45.3

89
81

10

48.0

93

(Million m2)(100 million yen)

50

180

40

10

30

10

75

71

79

83

20
10

FY2021
actualFY2022
actualFY2023
forecast

FY2024planned (final
year ofMedium-term
Business Plan)

0

Floor area of newdomestic non-housing
construction starts* Sources:
Research Institute ofConstruction andEconomyFull-year results for the year ended March 2023
• Domestic sales declined due to the weak housing market and inventory adjustments bymajor customers for construction film.
• Overseas sales remained largely unchanged. Film sales increased in North America but
declined in other regions.

Full-year measures for the year ending March 2024
• Steadily boost sales of high-end wall coverings, centered on post-COVID store-remodelingdemand in Japan.
• New sales growth for furniture applications overseas, in North America and China

59

61

60

(Trillion yen)

60

160

Market Growth: +2%
Net sales: +21%
*FY2021 vs. FY2022

140
120

100
Domestic sales

20
0*FY2021 vs. FY2022

Overeas sales

60
40

Market Growth: ▲0%Net sales: ▲5%

62

103

128

11

12

123

ASEAN

18

40

13

80
60

125

50

66

63

55

50

30

Japan

20

Construction
market investment

40
20
0

40
FY2021
actual48

53

50

FY2022
actualFY2023
forecast

FY2024planned (final
year of Mediumterm Business
Plan)

North America

10* Source:
Construction Economic
ReportNO. 73 ©RICE

0

Full-year results for the year ended March 2023
• Domestic sales grew thanks to higher sales of PVC compounds for resin sashes, driven by
the Japanese government’s campaign to promote energy conservation in homes in 2023.
• Overseas sales grew thanks to progress with selling PVC compounds in North America.

Full-year measures for the year ending March 2024
• Boost sales of PVC compounds for resin sashes based on the campaign to promoteenergy conservation in homes in 2023.
• Boost sales of PVC compounds in ASEAN and North America.

24

Overview of
Financial Results

3. Medium- andLong-Term
Initiatives

Segment Overview
Medium- and LongTerm Initiatives

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

Copyright Ⓒ 2023 RIKEN TECHNOS CORP. All Rights Reserved.

Medium- to Long-Term Vision｜ 3. Medium- and Long-Term Initiatives➢The long-term vision is based on the RIKEN TECHNOS Group mission.
➢The new Medium-term Business Plan was launched in FY2022 to achieve the long-term
vision.
RIKEN TECHNOS’ strengths
and business model◼ The capacity to meet the needsof leading global customers◼ Strong technical capabilities- Formulation design technology- Kneading technology- Calendering film forming
technology

Mission(reason forexistence)

We are a challenger that harnesses the power of science to improve thequality of life and create a safe, affluent society.
We continuously provide new value and satisfaction to people,
companies and society through our original and superior formulations
and manufacturing technologies of multiple resins.

Long-term
visionAiming to become the leading provider of comfort for all living spaces

Basic strategies of the Medium-term Business Plan
RIKEN TECHNOS’ (medium- tolong-term) business environment
Plastic reduction movement

1

2

3

4

Intensify Global
Management andGenerate Synergies

Stay ahead ofcustomers’ expectations

Take on the challenge
toward new businesses
and products

Contribute to solving
environmental andsocial issues

Growing environmental
awareness

Strategies to grow strengths of businesses

Digitalization trend

Strategies and measures to support the above strategies

Progress with EVs

Shrinking domestic market

DX Investments
Capital investments/manufacturing

Strategies for future growthIntellectual property (R&D) investments
Human resources investments

Governance

Growth in Asia
26

Three-year Medium-term
Business Plan
Management
Policy｜ 3. Medium- and Long-Term Initiatives(Unit: 100 million yen)
ROS

1,400
1,234
1,200

1,099

1,000

ROE

1,280

1,350

140
120

↓グラフの元データ確認

100
8.0%

800
600
Challenge for Innovation

Intensify Global Management and Generate
Synergies

7.1%

6.1%

5.7%

39

45

FY2022
2023年
actual3月期実績

FY2023
2024年
forecast
3月期
予想

40
50

0

20
0

FY2021
2022年
actual3月期
実績

売上高
Net sales

Contribute to solving environmental andsocial issues

60
85

45

Stay ahead of customers’ expectations
Take on the challenge toward new
businesses and products

6.3%

5.9%

76

75

62
200

80

7.0%

400

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

Four Strategies

7.5%

Operating
営業利益
profitFY2024
2025年
planned(final3月期
year of
中計最終年度Medium-term
計画値
Business
Plan)

当期純利益
Net profit

Assumptions
Plan for fiscal year ending March 2025
Naphtha price: 61,000 yen/KL
Exchange rate: 114 yen/USD
27

Three-year Medium-term Business ｜ 3. Medium- and Long-Term Initiatives
Plan (Results for FY2022, the initial year)
Strategy 1: Intensify global management and generate synergies.
◼ Pursue Groupwide optimization through global
sales/manufacturing meeting.
◼ Reinforce the global production system (Thailand,
Vietnam, North America).
◼ Build a global quality control system (mechanization,
automation).
◼ Build a global procurement system (establish andcommence operation of the Global Procurement
Department).
◼ Overseas sales ratio: 51.4%

Net sales by region
FY2021 net sales
North
America
15%
East Asia8%

109.9
billion yen

Other
North
America
15%
Japan
54%

ASEAN,
India
23%

✓

FY2022 net sales

East Asia8%

123.4
billion yen

Japan
49%

ASEAN,
India
26%

Achieve the target overseas sales ratio of 50% under the
Medium-term Business Plan in its first year.

Strategy 2: Stay ahead of customers’ expectations.
◼ Develop and train sales human resources with high capabilities with regard to strategic outlook (internal/external
training)◼ Adopt and commence operation of materials informatics in R&D sections.
◼ Establish production systems to accelerate the provision of samples for customer evaluation (adopt state-of-theart prototype machines).
◼ Carry out Companywide DX-promotion working-group activities and DX training.
◼ Reinforce the QC system through the firm establishment of design review (DR) operations.
28

Three-year Medium-term
Business Plan

｜ 3. Medium- and Long-Term Initiatives

Strategy 3: Take on the challenge toward new businesses and products.
◼ Promote the exploration of themes by establishing a Start-up Office for New Business Development.
◼ Launch open innovation through industry-academia partnerships.
◼ Enhance the R&D system (strengthen formulation technologies by integrating compound and film
development efforts).
◼ Review development processes and implement IP landscaping to generate IP.
◼ Build structures under which diverse human resources can thrive (e.g., enhancing midcareer hiring andthe hiring of non-Japanese personnel, career-track career development training for women, reviews of
payroll systems).

Strategy 4: Contribute to solving environmental and social issues.
◼ Establish a Sustainability Committee to address climate change and identify materiality topics.
◼ Develop and expand sales of environmentally-friendly products.
▷ Market launch of RIKEBIO®; development of Natural RIKEBIO®
▷ Expand adoption of rubber substitute elastomers.
▷ Develop RIKEN WRAP BOTANICAL.
◼ Launch circular economy initiatives.
◼ Implement social contribution activities.
29

Financial Strategies Under the
Medium-term Business Plan

｜ 3. Medium- and Long-Term Initiatives➢ Increase corporate value through capital, R&D, and strategic investments, centered on operating cash flows.
➢ Dramatically increase capital investment from the previous Medium-term Business Plan (particularly overseas).

Out

In

Out

Improve asset
efficiency
through
reduction of
total assets
etc.

Strategic
investment

R&D
investment
6.2 billion yen

Dividends
3.1 billion yen
R&D
investment
5.7 billion yen(2.4 billion yen
overseas)
Capitalinvestment
12.4 billion yen

Dividends

Operatingcash flow
26.0 billion
yen(6.7 billion
yenoverseas)
Capitalinvestment
19.5 billion yen(12.8 billion
yen inJapan)(10.0 billion yen
in Japan)Previous Medium-term
Business Plan
ActualThis Medium-term Business Plan
PlannedP.34◼

Make energetic efforts to study technological investments, equity
investments, and M&A activities, targeting new businesses.

◼

Increase dividend payout ratio to 35%.

◼

Enhance R&D system and reinforce IP strategies.
• Expand R&D Center, adopt state-of-the-art prototype machines,
enhance staffing, etc.
• Generate IP through in-house development; leverage IP information.

P.33

Overseas investments
Implement capital investments centered on ASEAN (up 4.3 billion
yen from previous Medium-term Business Plan).
P.31◼

Enhance equipment at facilities in ASEAN and North America, etc.

Domestic investment
Accelerate capital investments to reduce CO2 emissions from thenext year and beyond (up 2.8 billion yen from previous Mediumterm Business Plan).
◼ Invest in equipment enhancement and streamlining.
◼ Carbon neutral initiatives◼ Computer-system investment, etc.

30

Investment (results and forecasts) ｜ 3. Medium- and Long-Term Initiatives
Three-year Medium-term Business Plan:
19.5 billion yen

Capital and System investment(Unit:
100 million yen)

FY2022 results

FY2023
forecasts

FY2024
forecasts

Total

✓

Major Projects
Expansion of facilities in ASEAN countries
Reinforcement of facilities in Japan
Domestic and overseas investment in streamlining
Expansion of facilities in ASEAN and the US
Expansion and reinforcement of facilities in Japan
Domestic and overseas carbon neutral initiatives
Domestic and overseas investment in streamlining
Domestic and overseas IT systems investments
Expansion of facilities in ASEAN and the US
Expansion and reinforcement of facilities in Japan
Domestic and overseas carbon neutral initiatives
Domestic and overseas investment in streamlining
Domestic and overseas IT systems investments

TotalamountOverseas
Depreciation
ratio

Domestic

Overseas

47

33

14

30%

31

68

44

24

35%

34

80

51

29

36%

36

195

128

67

34%

Capital investments to reduce CO2 emissions in Japan and overseas has been studied from the fiscal year ended March 2023.
Initiatives are scheduled to begin next year.

31

Investments
Expanding PVC compound production
facilities at RIKEN (THAILAND) CO., LTD.

写真差替え

｜ 3. Medium- and Long-Term Initiatives
Expanding PVC compound
production facilities
at RIKEN VIETNAM CO., LTD.

・ Constructing a new plant building, setting up
a new production line, and expanding
warehouse facilities<Progress>✓ Obtained permissions from authorities withjurisdiction over city planning in April 2023, about
one year later than originally planned✓ Work currently continues toward bringing the
new line online in October 2024.
✓ Investment: Approximately 1.5 billion yen

Expanding PVC compound
production facilities at RIKEN
ELASTOMERS CORPORATION

・Constructing a new plant building, setting up a new
production line, and expanding warehouse facilities<Progress>✓ Construction completed in February 2023
New line slated to begin in June 2023
✓ Investment: Approximately 1.5 billion yen

・ Adding a new line in the existing building<Progress>✓ Scheduled to start operations in December 2024
✓ Investment: Approximately 1.5 billion yen

32Research and Development｜ 3. Medium- and Long-Term Initiatives

Enhancements of the R&D System

Formulation design technology
Kneading technology

Calendering film forming technology

Promote the fusionof technologies.

Reinforcing fundamental technologies to generate innovation◼
◼
◼
◼

Concentrate R&D functions.
Faster development
More advanced design based on enhanced research facilities
Enhance global R&D facilities.

• Expand R&D centers.
• Add R&D personnel.
• Reinforce core technologies and fundamental
research.
• Practice open innovation.

• Adopt state-of-the-art prototype machines.
• Develop global HR and DX HR.
• Utilize materials informatics.
• Carbon neutrality and circular economy
initiatives

Strengthen IP strategies.

R&D investments

IP creation and deployment

Over the period of the Medium-term
Business Plan: 6.2 billion yen

Implement analyses incorporating IP information intobusiness information.

◼ IP landscaping◼
◼

Rapid development of products that delight customers
Transform to a development approach leveraging DX.
33

Shareholder Returns｜ 3. Medium- and Long-Term Initiatives➢Paying stable dividends while seeking a balance between financial standing and business➢Consolidated dividend payout ratio increased from 30% to 35% beginning in FY2022
Dividend payout ratio and dividend trend

Dividend Policy
(Yen)

40%

40
Dividend per share

35%

Payout ratio

34.7%

33.3%

35.1% 35

30

30%

28.4%

28.8%

29.5%

31.2% 30.4%

25

Consolidated dividend payout ratio increased from
30% to 35%⚫ We will strive to pay stable dividends, duly
accounting for future business investment andcapital adequacy and strive to achieve a
consolidated dividend payout ratio of around 35%.

28.0%

25%
24.1%

20%

Projected dividend for current FY

15⚫ Dividends for FY2022 raised by six yen from 19 to
25 yen (six yen above initial forecasts)

10⚫ Initial forecasts for FY2023 call for an interim
dividend of 12 yen and a year-end dividend of 13
yen, for an annual dividend of 25 yen.

25 25

15%

9
10%

20
24.…

9

16 16
14
10 11 12

19

5

0

34

Identification ofMateriality Topics｜ 3. Medium- and Long-Term Initiatives➢Identification of important topics (materiality) for realization of the long-term vision
Important preconditions for business activities●Improve corporate governance ●Strengthen risk management ●Strengthen compliance

Importance to stakeholders

Veryimportant●● Contribute to a sustainable global
environment● Promote health management and occupational
health and safety● Develop human resources suited to a“challenger”●● Improve quality and ensuring product safety● Respect for human rights● Dialogue with stakeholders● Preserve biodiversity● Coexistence with local communities● Create new businesses and new products● Strengthen capital policies● Promote diversity and inclusivity● Improve production technologies andefficiency● Business transformation through DX● Strengthen business continuity
management (BCM)● Strengthen information security● Sustainable use of water
resources

Important● Further reinforcement of global management●● Realization of potential customer needs

Veryimportant

Importance to RIKEN TECHNOS●Contribute to society through core businesses●Environmental protection (E)●Coexistence with society (S)●Strengthen business foundations (G)We established key performance indicators (KPIs) as indicators and targets for the materiality topics identified. We will
strive to realize the long-term vision by repeating the plan-do-check-act (PDCA) cycle and by promoting efforts toachieve our targets and managing the progress of these activities.

35

Sustainability Initiatives｜ 3. Medium- and Long-Term Initiatives(developing environmentally-friendly products)➢Expand boost its sales of the RIKEBIO® series.
• The RIKEBIO® series is a lineup of environmentally-friendly products designed to conserve fossil fuels,
minimize greenhouse gases, and contribute to a circular economy.
• We will expand the lineup of RIKEBIO® PVC and elastomer compounds.
• We will bring to market Natural RIKEBIO®, which involves partial use ofnatural-resource wastes as raw materials in its manufacture.
• We will study sheet developments based on compounding technologies.

➢Develop RIKEN WRAP BOTANICAL environmentally-friendly food wrap.
• Using biomass polyethylene resin made from sugarcane, this product reduces petrochemical
raw materials use compared to conventional petroleum-based polyethylene.
• Biomass content of 90% or more (certified to carry the Biomass Plastic Mark)• Switching from commonly used film wrap to a product using biomass plastic materials offers aneffective path to reducing the environmental impact of everyday life.

36Sustainability Measures｜ 3.Medium- and Long-Term Initiatives(climate change initiatives)➢Promote Groupwide initiatives toward CO2 emissions reduction targets to address climatechange.
Indicators and targets(1,000 t)

50

FY2022
Non-consolidated(Scope 1, 2)

41,139 t

FY2030FY2050―24,139 t

44.9
Non-consolidated
basis

40

Group-wide

30

Group (Scope 1, 2)

86,220 t

Scope 3※

Now being
calculated

―

24.1

0t
(carbon neutral)* We calculated Group emissions in Category 1 (raw materials purchased) andplan to proceed steadily with disclosures in other categories.

CO2 emissions reduction targets (Scope 1, 2)

20
10
0
2019

2030

2050 (FY)

Initiatives toward carbon neutrality• Developed RIKEBIO®.

Throughnow• Began supplying electricity from solar panels
installed adjacent to the Gunma Plant.
• Upgraded to energy-conserving boilers• Switched to electric-powered forklifts and fuel-saving
Company vehicles

From thispoint on• Renovate facilities at production sites (e.g., airconditioning, production equipment).
• Switch from heavy oil boilers to natural gas boilers.
• Create energy roadmaps.
• Expand the introduction of renewable energy.
• Expand lineups and sales of RIKEBIO® series.
• Expand Scope 3 disclosure.
• Adopt solar panels in Japan and overseas.

37

Sustainability Measures｜ 3.Medium- and Long-Term Initiatives(contributing to the environment through our businesses)➢ We will help protect the environment by boosting sales of products aimed at energy conservation,
resource conservation, and recycling into our traditional PVC and elastomer businesses.

Resin

Properties◼ About 60% of PVC comes from thenatural material of salt.

PVC• Conserves resources through durability
that enables long-term use.
• Consumes less than one-half* the energy
resources of other resins consisting
mainly of hydrocarbons from petroleum(e.g., polyethylene and polypropylene).
* Polyethylene and polypropylene: 45.6-46.5 MJ/kg
PVC: 21.3 MJ/kg◼ In various ways, elastomer materials
are more eco-friendly than rubber.

Elastomers• They help reduce CO2 emissions during
manufacturing processes by shortening
mold cycle times.
• Their low specific gravity helps reduce
vehicle weights and fuel consumption.
• They are recyclable.

Examples of environmental contributions madethrough our products
PVC resin interior window sashes① Energy conservation② Recycling

Industrial wires and cables① Durable materials② Control of chemical substances

CO2 reduction
effect vs. aluminumsashes:Approx. 40%**
Under the zero-emission home (ZEH) initiative
promoted by the Ministry of Economy, Trade andIndustry and the Ministry of the Environment, use ofresin sashes is advancing as part of efforts to improve
the thermal insulation efficiency of existing home
windows. Strong demand is expected to continue.

Highly oil-resistant TPV ACTYMER®K
offers features equivalent to those ofoil-resistant rubber.

Highly durable PVC is used in industrial wires and cables andother products intended for long-term use.
We control chemical substances by designing formulations
that meet the legal standards of individual countries.

TPV ACTYMER®G is a substitutefor vulcanized rubber, and has
outstanding rubberlike features.

We expect the continuation of trends toward material changes intended toreduce vehicle weight and fuel consumption and toward use of rubber
substitutes.

* Source: Vinyl Environmental Council website ** Source: Resin Sash Industry Association

38

Human Capital｜ 3.Medium- and Long-Term Initiatives➢ To achieve the goals of the Medium-term Business Plan, we will advance efforts to secure and develop
human resources.
Medium-term
Business Plan
strategies
Human resources
needed to executestrategies

Means ofsecuring anddeveloping
human
resources

2

1

3

Intensify Global Management andGenerate Synergies.

Stay ahead of customer
expectations.

Take on the challenge ofachieving new businesses andproducts.

Human resources capable ofexecuting global businessstrategies

Human resources with analyticalcapabilities and strategic
perspectives

Human resources with diverse
perspectives

Securing human resources (hiring)

Human resource development

Reassignment and increasing theefficiency of human resources⚫ Enhancing midcareer hiring⚫ Enhancing hiring of new graduates⚫ Ensuring new hires can contribute immediately;enhancing training programs for selected
employees⚫ Adopting a program to follow up on humanresources after they take on new challenges⚫ Overseas training, language training, overseas
base manager training programs⚫ Human resource assignments for
global business development⚫ Labor saving through DX etc.

Proactive investment in hiring, development, and training of human resources
Fostering a corporate culture and building systems to enable diverse human resources to thrive
Targets for promoting diverse human resources to management positions(diverse human resources as a percentage of those in management positions)Targets
related tohuman capital(March 31, 2022)⚫ Women
2.0%⚫ Non-Japanese
0.7%⚫ Midcareer hires
30.5%(March 31, 2023)
2.0%
1.4%
31.3%

(Target as of March 31, 2025)
7.0%
3.0%
40.0%
39

Governance(key initiatives in the fiscal year ending March 2023)｜ 3.Medium- and Long-Term Initiatives➢ Key initiatives during this fiscal year included the establishment of the new Sustainability Committee,
enhanced training for Directors, enhancements in Group governance systems, and efforts to strengthen
relations with shareholders and investors.

Establishing the new
Sustainability Committee◼ Establish structures to promote Strategy 4: Contribute to solving environmental and social
issues of the three-year Medium-term Business Plan. Contribute to solving environmental andsocial issues.
• Review responses to climate change in accordance with TCFD recommendations.
• Review materiality topics.

Enhanced training for Directors◼ Provide sufficient opportunities for site tours and similar activities by Outside Directors.
• Hold Board of Directors meetings at plants and at the research institute (e.g., discussions
with employees on-site).
◼ Colloquia for Directors and executive offices (held twice)• Discuss capital policies, increasing corporate value, materiality topics, etc.

3

Enhancing Group governancesystems◼ Effectively strengthen governance of consolidated subsidiaries.
• Enhance communications via global manufacturing meeting and other activities.
◼ Clarify the management issues facing consolidated subsidiaries. Build a structure for follow-up
on these issues.
• Report and follow up on each company’s management issues under the Medium-term
Business Plan.
• Absorb consolidated subsidiaries and relocate their head offices (to the same floors
currently occupied by the Company).

4

Strengthen relationships withshareholders and investors(reviewing how we communicate
information).

◼ Enhance disclosures on sustainability and the environment.
• Disclosures based on TCFD recommendations◼ Enhance means of dialogue with shareholders and investors.
• Hold briefings on financial results and management live on the Web and in person; provide
disclosure materials in English.

1

2

40

Initiatives Related to Dialogue with ｜ 3.Medium- and Long-Term Initiatives
Shareholders and Investors➢ During this period, we will launch new initiatives including holding financial results and management
briefings online and live at venues and enhancing disclosure materials in English and disclosures basedon TCFD recommendations.
➢ We will continue to proactively provide opportunities for dialogue with investors in the future.

Individual
investors

Institutional investors

Dialogue undertaken in FY2022
Hold briefings on financial results andmanagement through webcasts and inperson.

Efforts to make exercising voting rights more convenient

Promoting dialogue through SR visits

Since April 2023

• Providing materials on summary financial results, timely
disclosure, briefings on financial results andmanagement, and briefings on the Medium-term Business
Plan in English• Disclosures based on TCFD recommendations

Issuing notices of convocation of General
Meetings of Shareholders earlier(Results for Regular General Meetings of S
hareholders held in 2022)

Issued on May 31(17 days before themeeting)

Individual meetings(including teleconferencing)

About 20
times

Early disclosure before issuing notices of convocationof General Meetings of Shareholders(Results for Regular General Meetings ofShareholders held in 2022)

Disclosed on May 26(22 days before themeeting)

Issuing shareholder bulletins

Twice
当
初
予
想

Preparing notices of convocation of General
Meetings of Shareholders in English

Since June 2018

Using the ICJ platform for digital exercise
of voting rights

Since June 2015

Updating the Quick learn RIKENTECHNOS! site

Twice

19

As needed

41

Disclaimer
Plans, projections, strategies, and other statements that are not historical facts presented in thisdocument constitute forward-looking statements based on information available at the time of
preparation and involve various risks and uncertainties. Actual results may differ significantly
from these projections due to changes in the business environment and other factors.
Furthermore, information presented in this document concerning companies other than the
Company or its group companies is based on publicly available information. The Company does
not guarantee the accuracy of such information.

For inquiries, please contact:
webmaster@rikentechnos.co.jp
Corporate Planning Department/Accounting Department

42

Corporate Profile

Company Name

RIKEN TECHNOS CORPORATION

Date of Establishment

March 30, 1951

Capital Stock

8,514 million yen

Representative

Kazuaki Tokiwa
Representative Director, President & CEO

Number of Employees

1,895 consolidated employees and780 non-consolidated employees(As of March 31, 2023)

Head Office

Waterras Tower, 2-101, Kanda-Awajicho,
Chiyoda-ku, Tokyo 101-8336 JAPANAiming to become the leading provider of comfort for all living spaces

Copyright Ⓒ 2023 RIKEN TECHNOS CORP. All Rights Reserved.

Management Philosophy: The RIKEN TECHNOS Way
The start-up spirit, which has been passed down since our founding days, represents the very strength of RIKENTECHNOS CORPORATION and its “RIKEN-ness.” The RIKEN TECHNOS Way, our company’s management
philosophy, was formulated based on this “RIKEN-ness.”
The word “challenger” used in our company’s mission statement is meant to convey two meanings－a
manufacturer that produces high-quality products and an organization that takes on challenges to create new value
and satisfaction for people, companies, and society. To make future leaps, we will keep taking on new challenges,
unconstrained by conventional wisdom.

Mission “Mission and Purpose”• We are a challenger that harnesses the power of science toimprove the quality of life and create a safe, affluent society.

MissionOur reasons for being• We continuously provide new value and satisfaction to people,
companies and society through our original and superior
formulations and manufacturing technologies of multiple resins.

Core Values “Fundamental Values”• We establish a bond of trust and work for the mutual benefit all.
• We create new value.

Core Values
Our fundamental values• We continually push ourselves to achieve more.
• We enjoy our work and love what we do.
• We work together to find solutions and produce the best resultsfor everyone.

44

Business Areas➢ Based on our three main product lines—compounds, films, and food wrapping materials, all grounded inextensive technologies related to compound resin processing—we supply products to a wide range ofindustries and engage in business in Japan and around the world essential to various applications.
Segment
Major
products

Overview

Compounds

These refer to compound materials thatrealize new properties through the mixingof various additives with base resins. They
are primarily used in extrusion molding andinjection molding. We produce PVC,
thermoplastic elastomers, fire resistant andelectroconductive functional compounds,
and other compounds.

Films

We produce high-quality resin films via
manufacturing methods tailored to the
distinctive features of the mixed resins they
contain. We also manufacture resin
products with various design and functional
capabilities through technologies that layer
multiple films and apply functional coatings
to their surfaces.

Foodwrapping
materials

As a pioneer in the development of PVC
resin wrapping materials in Japan, we
strive to improve the quality andperformance of food wrapping materials for
consumer and commercial use whiledeveloping and producing wrapping
materials suited to individual food products
and automated wrapping machinery.

Transportation⚫ Wire harness
compounds⚫ Windshield framecompounds⚫
Airbag flexible flat
●エアバック用フレキシ
cable films
ブルフラットケーブル用
フィルム

Daily Life &Healthcare

Electronics

Building &Construction⚫ Syringe gasket compounds⚫ Electric wire and cable
compounds⚫ Thermal insulated window framecompounds⚫ Blood transfusion equipment
compounds●抗ウイルス・抗菌フィルム⚫
Antivirus/antibacterial films⚫ REPTY® next-generation display
films⚫ High-end wallcovering films

RIKEGUARD⚫ Consumer
wrapping⚫ Commercial wrapping
materials
materials

45

Global Network⚫ Production Companies⚫ Sales Companies

RIKEN TECHNOS CORPORATION
Domestic subsidiaries• RIKEN CABLE TECHNOLOGY CO., LTD.
• RIKEN CHEMICAL PRODUCTS CO., LTD.
• KYOEI PLASTIC MFG CO., LTD.
• IMI Co., LTD.

RIMTECCORPORATIONRIKEN U.S.A.
CORPORATIONRIKEN TECHNOS (JIANGSU)CORPORATIONSHANGHAI RIKEN TECHNOSCORPORATIONRIKEN TECHNOSINTERNATIONAL KOREACORPORATIONRIKEN AMERICASCORPORATIONRIKEN TECHNOSINDIA PVT. LTD.

RIKEN (THAILAND)
CO., LTD.

RIKEN ELASTOMERS(THAILAND) CO., LTD.

RIKEN VIETNAM
CO., LTD.

PT. RIKEN INDONESIA

RIKEN ELASTOMERSCORPORATION

46

Value Creation History➢ Since our founding in 1951, we have continued to broaden our range of products while expanding our
network across Japan and around the world.
Net sales(million yen)Founding,
early years

Building
organizationalfoundations

120,000

Building domestic business foundations

Building overseas business foundations(1995)- Opened production facility
in Indonesia.
- Established subsidiary in
the US.

: Main facility expansion / new subsidiary: Launch of main manufacturing/sales activities
100,000(1990)
Opened production
facility in the US.

80,000(1973)- Opened Osaka
Sales Office.
- Operations begin at
Mie Plant.

60,00040,00020,000(1956)
Captured top position in PVC
compounds production in
Japan and the world’s thirdhighest position.

(1955)
Plant acquired in Kamata
Transferred and expanded
compounding equipment

0
FY1950Founded as RIKEN
VINYL INDUSTRY CO.,LTD.
(1951)FY1960Listed on Second
Division, Tokyo
Stock Exchange(1961)(2001)
Opened production
facility in China.

(1994)
Began sales of thermoplastic
elastomers.

FY1980(2012)
Made Mitsui Chemicals
Fabro, Inc. a subsidiary.
(2011)
Opened production
facility in Thailand.

(1979)
Opened Nagoya Sales
Office.

Listed on First Division,
Tokyo Stock Exchange
and Nagoya Stock
Exchange(1974)(2014)
Opened production facility in
Vietnam.
(2007)
Made Kyoei Plastic Manufacturing Co.,
Ltd., Kanekon Co., Ltd., and Shinko
Electric Wire Co., Ltd. subsidiaries.

(1966)Developed Japan’s first
PVC food wrapping
material

FY1970(2018)
Made IMI Co., Ltd. a
subsidiary.

(1989)
Opened first overseas production
facility (Thailand).

(1968)
Operations begin at Okabe
Plant (Saitama).

(1951)
Began manufacturing PVC
compounds.

Intensifying global
management

FY1990FY2000FY2010

FY2020Renamed RIKEN TECHNOSHead office Listed on the Tokyo Stock
CORPORATION
relocated
Exchange Prime Market(2001)(2015)(2022)* Sales figures for FY1999 and later represent consolidated net
sales; consolidated settlement of accounts began that year.
47Reference: Materiality topics and KPIs
Materiality topic

Standards for evaluation (KPIs)

Medium-to-long term targets

FY2024FY203035,446 t(46.2% decrease compared to
FY2019)--• Ratio of total waste to total production (non-consolidated)

3.3% or less

3.0% or less

• Occupational injuries requiring time off work (domestic)00• Percentage of employees undergoing specified health examinations(domestic)

90%

90%

• Percentage of employees provided specified health guidance(domestic)

55%

60%

117,000 yen

140,000 yen• Serious quality incidents requiring recalls (non-consolidated)

00• Serious violations of legal and regulatory compliance regarding useof chemical substances (non-consolidated)00• Numbers of patents applications (non-consolidated)

45 (cumulative)

210 (cumulative)(FY2022-2024)(FY2022-2030)• Numbers of collaborations with external parties (non-consolidated)

10 (cumulative)(FY2022-2024)

35 (cumulative)(FY2022-2030)+10% (vs. FY2021)+33% (vs. FY2021)

9 persons

20 persons• DX training for all employees (non-consolidated)

100% attendance

100% attendance• Human rights and compliance training for all employees (domestic)

100% attendance

100% attendance• Conduct ESG survey to suppliers (non-consolidated)

Once/year

Once/year• Meetings with investors and existing shareholders (nonconsolidated)

140 or morecompanies/year

200 or morecompanies/year• Conduct satisfaction survey to customers and clients (nonconsolidated)

Once/year

Once/year• Achieving CO2 emissions reduction targets for 2030
(non-consolidated)

24,139 t

Contribute to a sustainable global environment• Carbon neutral by 2050 (Group)

Promote health management and occupational
health and safety

Develop human resources suited to a
“Challenger”
Improve quality and ensuring product safety• Training cost per employee (non-consolidated)

Create new businesses and new products

Improve production technologies and efficiency
Business transformation through DX

Respect for human rights

Dialogue with stakeholders• Production capacity (non-consolidated)• Development of MI human resources (non-consolidated)48