Riken Keiki Co., Ltd. · TSE:7734
Riken Keiki — FY2024 Earnings Presentation
23 slides from Riken Keiki's earnings presentation, May 2025
Slide 1: Financial Results Briefing for the Fiscal Year Ended March 31, 2025
Financial Results Briefing for the Fiscal Year Ended March 31, 2025 May, 2025 RIKEN KEIKI Co., Ltd. Securities Code:7734 Disclaimer The forecasts and estimates shown in this document are dependent on a variety of assumptions and economic conditions. Plans and figures depicting the future do not impl
Slide 2: Management Philosophy and Medium-Term Management Vision
Management Philosophy and Medium-Term Management Vision Management Philosophy We are a pioneer in creating safe working environments for workers. Medium-Term Management Vision In response to sustainable social and customer needs such as for the IoT and decarbonization, the RIKEN KEIKI Group will dev
Slide 3: History
History 1939 2008 2017 Established to commercialize optical Launches flagship portable-type gas Makes RKI INSTRUMENTS, INC. FY2024 Sales interferometric combustible gas detectors designed by the Institute of detector GX-2009 Launches fixed-type gas detector (USA) a subsidiary 2018 49.0 Physical and
Slide 4: Our Products (FY2024)
Our Products (FY2024) ■Industrial gas detection alarm devices ■Percentage of sales by customer Providing more than 100 different products Other measurement industry to cater to customer needs ●Others devices Surface analysis of electronic (including machinery, steel, ● Electrical & 2.7% materials an
Slide 5: Financial Results
FINANCIAL RESULTS Fiscal year ended March 31, 2025
Slide 6: Summary of Operating Results (FY2024)
Summary of Operating Results (FY2024) ◼ Sales to the semiconductor industry and lithium-ion battery factories remain weak, but sales to other industries increased, resulting in an increase in net sales ◼ Net sales increased, but operating profit decreased due to higher personnel and other fixed cost
Slide 7: Net Sales and Operating Profit (Full Year)
Net Sales and Operating Profit (Full Year) ◼ Net sales increased and operating profit decreased in FY2024 ◼ Despite the slow recovery of capital investment in the semiconductor industry and the ongoing slump in the Chinese market, net sales increased resulting from expanding sales to other industrie
Slide 8: Sales by Device Type (Full Year)
Sales by Device Type (Full Year) ◼ Despite the slow recovery of capital investment in the semiconductor industry, sales of fixed gas detectors increased as a result of expanding sales activities in other industries, including the shipping industry ◼ Sales of portable gas detectors remained favorable
Slide 9: Orders by Device Type (Full Year)
Orders by Device Type (Full Year) ◼ Orders for fixed gas detectors increased, mainly in the semiconductor industry ◼ Orders for portable gas detectors were weak, but demand is expected to continue Orders Others Portable-type Fixed-type (Millions of yen) 49,610 47,047 45,563 1,354 50,000 (2.7%) 1,249
Slide 10: Overseas Sales by Region (Full Year)
Overseas Sales by Region (Full Year) ◼ Sales in Asian markets had been weak due to the economic slowdown in China ◼ Overseas sales ratio increased due to sales growth, particularly in North America Sales Others Europe North America Asia Ratio on sales Ratio to net sales (Millions of yen) 25,000 50%
Slide 11: Sales by Customer Industry
Sales by Customer Industry (Non-consolidated, Full Year) ◼ 39.8% for the electrical & semiconductor industry, 10.6% for the petrochemical industry, 11.7% for the gas industry, and 6.9% for the shipping industry ◼ Sales ratio declined due to slow recovery of capital investment in the semiconductor in
Slide 12: Sales Ratio of Products and Maintenance
Sales Ratio of Products and Maintenance (Non-Consolidated, Full Year) ◼ While sales in the semiconductor industry remained weak, product sales to other industries increased ◼ Although maintenance sales increased, the ratio of maintenance declined slightly due to strong product sales Ratio of Sales m
Slide 13: Cash Flows
Cash Flows ◼ Operating CF increased YoY as a result of inventory adjustments ◼ Regarding investing CF, investments were made for the introduction of a new core system Operating, investing and CF Ending balance Operating CF Investing CF Financing CF CF Ending balance financing CF (Millions of yen) (M
Slide 14: Changes in ROE
Changes in ROE ◼ ROE declined to 10.7%, but we aim to maintain it in the double digits or higher (Unit: %) 16 14.5 14 12.3 12 11.1 10.7 9.6 9.5 9.5 10 8 6 4 2 0 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 14
Slide 15: Total Assets and Net Assets
Total Assets and Net Assets ◼ Intangible fixed assets increased due to preparation for the introduction of a new core system ◼ Continued to maintain financial soundness with high equity ratio Total assets & net assets Total assets Net assets Equity ratio Equity ratio (Millions of yen) 83.6% 100,000
Slide 16: CAPEX
CAPEX ◼ Invested in production center renovation and preparation for the introduction of a new core system Including construction costs of production center (e.g. construction starts) and (Millions of yen) acquisition of land for Including construction cost Amagasaki construction of production cente
Slide 17: Depreciation
Depreciation ◼ Depreciation was at the similar level as last year. 1H 2H (Millions of yen) 2200 2,061 1,971 1,917 2000 1,855 1800 1,529 1600 1,009 1,339 974 1,014 1400 1,274 937 1200 827 1000 676 722 800 600 1,052 918 943 957 400 663 702 552 200 0 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 17
Slide 18: R&D Expenditure
R&D Expenditure ◼ Invested in development of new products and enhancement of functions of existing model of products, as well as in acquisition of certifications ◼ The ratio of R&D expenditure to net sales is expected to remain around 6% R&D Expenditure R&D Expenditure Ratio of R&D Expenditure to ne
Slide 19: Shareholder Returns
Shareholder Returns ◼ Dividend of 45 yen per share, an increase of 5 yen from the previous fiscal year ◼ With the increase of 5 yen per share, dividend payout ratio increased to 26.1% Cash dividends paid Cash dividends paid Dividend payout ratio Dividend payout ratio (Yen) 30% 26.1% 23.4% 60 22.2% 2
Slide 20: Forecast for the Fiscal Year Ending March 2026
FORECAST FOR THE FISCAL YEAR ENDING MARCH 2026
Slide 21: Earnings Forecasts (Year Ending March 31, 2026)
Earnings Forecasts (Year Ending March 31, 2026) ◼ The semiconductor market is expected to recover from the second half of FY2025 ◼ In addition to expanding sales of fixed gas detectors in overseas markets, particularly in Asia and North America, we will focus on technological development and commerc
Slide 22: Progress of the Medium-Term Management Plan FY2023 to FY2025
PROGRESS OF THE MEDIUM- TERM MANAGEMENT PLAN FY2023 to FY2025
Slide 23: Medium-term Management Plan Numerical Targets
Medium-term Management Plan Numerical Targets ◼ FY2023 results fell slightly below the plan due to continued cutbacks in capital investment in memory semiconductors, etc. ◼ In FY2024, the second year of the plan, structure development was implemented to respond to expansion into new markets, includi