Riken Keiki Co., Ltd. · TSE:7734
Riken Keiki — FY2023 Earnings Presentation
23 slides from Riken Keiki's earnings presentation, May 2024
Slide 1: Financial Results Briefing for the Fiscal Year Ended March 2024
F i n a n c i a l Re s u l t s B r i e f i n g fo r t h e F i s c a l Ye a r E n d e d M a r c h 2 0 2 4 May, 2024 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 fig
Slide 2: Management Philosophy and Management Policy
Management Philosophy and Management Policy 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 develop new tec
Slide 3: History
History 2017 1939 2009 RKI INSTRUMENTS, INC. Established to commercialize FY2023 Sales RIKEN KEIKI COMMERCIAL USA becomes a subsidiary. optical interferometric (SHANGHAI) CO.,LTD. China 2018 45.5 billion combustible gas detectors established R K INSTRUMENTS (S) designed by the Institute of PTE LTD,
Slide 4: Our Products
Our Products ■Industrial gas detection and alarm ■Percentage of sales by equipment Other measurement customer industry More than 100 different products devices ●Others Surface analysis of (including machinery, ● Electrical & 2.6% electronic materials and steel, and automobiles) Semiconductor 29% gas
Slide 5: Financial Results
FINANCIAL RESULTS Fiscal ended March 31, 2024
Slide 6: Summary of Operating Results (FY2023)
Summary of Operating Results (FY2023) ◼ Sales increased slightly and profits were flat year on year due to soft sales to the semiconductor industry and lithium-ion battery factories. (Millions of yen) FY2022 FY2023 Full-year Full-year Full-year Achievement Y on Y results results forecast rate Net sa
Slide 7: Net Sales and Profit/Loss (Full Year)
Net Sales and Profit/Loss (Full Year) ◼ Sales increased slightly and operating profit remained flat in FY2023. ◼ Sales were weak due to delayed market recovery in semiconductor industry capex investment, sluggish market conditions in China, etc. Net sales Net sales Operating profit Operating profit
Slide 8: Sales by Device Type (Full Year)
Sales by Device Type (Full Year) ◼ Sales of fixed detectors were sluggish due to delays in the recovery of capital investment in the semiconductor industry. ◼ Sales of portable detectors increased due to healthy sales in North America, etc. Net sales Others Portable-type Fixed-type (Millions of yen)
Slide 9: Orders by Device Type (Full Year)
Orders by Device Type (Full Year) ◼ Orders for fixed-type detectors fell due to delays in the recovery of capital investment in the semiconductor industry. ◼ Orders for portable-type detectors increased steady due to strong sales in North America, etc. Net sales Others Portable-type Fixed-type (Mill
Slide 10: Overseas Sales by Region (Full Year)
Overseas Sales by Region (Full Year) ◼ Asian markets were weak, particularly for semiconductor industry and lithium-ion battery factories. ◼ Overseas sales ratio increased due to growth in overseas markets, particularly North America. 43.6% Ratio on sales Others Europe North America Asia Ratio on sa
Slide 11: Sales by Customer Industry (Non-consolidated)
Sales by Customer Industry (Non-consolidated) ◼ 43% for the electrical and semiconductor industries, 11% for the petrochemical industry, 9% for the gas industry, and 6% for the shipping industry. ◼ Sales ratio to the semiconductor industry declined due to slow market recovery in capital investment i
Slide 12: Sales Ratio of Products and Maintenance
Sales Ratio of Products and Maintenance (Non-Consolidated) ◼ Product sales were weak due to delays in the recovery of capital investment in the semiconductor industry. ◼ Post-sales maintenance sales rose due to recent increase in product sales and renewal projects. Sales of Products and Maintenance
Slide 13: Cash Flows
Cash Flows ◼ Operating CF decreased due to a decline in accounts payable and other factors. ◼ Topics in investing CF included acquisition of land and buildings by our U.S. subsidiary. Operating, investing and Operating CF Investing CF Financing CF CF Ending balance CF Ending balance financing CF (Mi
Slide 14: Changes in ROE
Changes in ROE ◼ ROE held steady at 12.3% and we will aim to maintain the level above double digits going forward. (Unit: %) 16 14.5 14 12.3 12 11.1 9.6 9.5 9.5 10 8.0 8 6 4 2 0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 14
Slide 15: Total Assets and Net Assets
Total Assets and Net Assets ◼ Increase in current assets due to securing necessary inventories in response to difficulties in procuring semiconductor components and a delayed semiconductor market recovery. ◼ Maintaining high equity ratio with high degree of safety. Total assets Net assets Equity rat
Slide 16: CAPEX
CAPEX ◼ Increased due to integration costs of sales and maintenance bases and acquisition of land and buildings of U.S. subsidiary. Including construction costs of production center (e.g. construction starts) and Capex acquisition of land for Amagasaki construction Including construction cost of (Mi
Slide 17: Depreciation
Depreciation ◼ Depreciation cost was at the similar level as last year. Depreciation 1H 2H (Millions of yen) 1,971 1,917 2000 1,855 1800 1,529 1600 1,339 974 1,014 1400 1,274 937 1200 994 827 1000 676 722 800 531 600 918 943 957 400 663 702 552 200 463 0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2
Slide 18: R&D Expenditure
R&D Expenditure ◼ Continuous investment in new product development and enhancement of functions of existing model of products. ◼ The ratio of R&D expenditure to net sales is expected to remain around 6% in the future. R&D Expenditure R&D Expenditure Ratio of R&D Expenditure to net sales Ratio of R&D
Slide 19: Shareholder Returns
Shareholder Returns ◼ Dividends for FY2023 were the same as the previous year. (¥40 for the full year, factoring in a stock split) ◼ Basic dividend policy is stable dividends. Cash dividends paid (Yen) Cash dividends paid Dividend payout ratio Dividend payout ratio 30% 23.4% 60 21.5% 25% 20.8% 22.2%
Slide 20: Forecast for the Fiscal Year Ending March 2025
FORECAST FOR THE FISCAL YEAR ENDING MARCH 2025
Slide 21: Earnings Forecasts (Year Ending March 31, 2025)
Earnings Forecasts (Year Ending March 31, 2025) ◼ We expect the semiconductor market to recover from the second half of 2025. ◼ We will focus on expanding sales of fixed-type products in overseas markets, especially in Asia and North America, and securing domestic capital investment projects. ◼ We e
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 ◼ In the first year of the Medium-term Management Plan (FY2023), we worked to improve our operation. The result fell slightly below the plan due to continued cutbacks in capital investment in memory semiconductors, etc. ◼ In the second year, fiscal 2024,