Financial Results OverviewFY2020

GIKEN LTD. 〈stock code : 6289 〉

Overview－Key Points

2

（１）Construction Machinery Segment

（２）Press-in Construction Segment・Demand for Press-in construction, centering on large-scale equipment

remained strong. Led by critical disaster prevention works and the needfor less labor-intensive technologies in the face of project deliveryacceleration

・ Key construction works undertaken on seawall levee earthquakecountermeasures, and landslide prevention works for the KyushuShinkansen line.

・ Rehabilitation works at the port of Dakar in Senegal have beensuspended.

・Buyer hesitation to increase capital investment commitments led to adecline in sales for key products such as Silent Piler for 400mm U-typesheet pile. Attributed to reduced bid success due to skilled constructionlabor shortages, uncertainties created by the COVID-19 pandemic, andthe expected private sector demand contraction following the TokyoOlympic and Paralympic Games.

YoY YoY

Net Sales 29,142 32,442 +11.3% 24,640 ▲24.0%

OperatingProfit

5,977 6,689 +11.9% 2,498 ▲62.6%

OrdinaryProfit

6,069 6,761 +11.4% 2,792 ▲58.7%

Profit※ 4,151 4,571 +10.1% 1,400 ▲69.4%

Earnings perShare

155.75 168.80 +8.4% 51.28 ▲69.6%

ROE 12.6% 12.7% +0.1pts 3.7% ▲9.0pts

FY2019 FY2020FY2018Unit : Millions of yen

3

Overview－3 year Trend

※Profit attributable to owners of Giken Ltd

Sheet1

FY2018FY2019FY2020

YoYYoY

Net Sales29,14232,442+11.3%24,640▲24.0%

OperatingProfit5,9776,689+11.9%2,498▲62.6%

OrdinaryProfit6,0696,761+11.4%2,792▲58.7%

Profit※4,1514,571+10.1%1,400▲69.4%

Earnings perShare155.75168.80+8.4%51.28▲69.6%

ROE12.6%12.7%+0.1pts3.7%▲9.0pts

4

◇Machinery Segment▲8,046M JPYCapital investment caution due to socio-economic uncertainties around COVID-19 pandemic.

◇Construction Segment+244M JPY

Increased adoption of Implant methodologies led by critical disaster prevention, mitigation, and recovery works

Overview－Sales Result by SegmentUnit : Millions of yen

21,016

23,638

15,592

8,125

8,803

9,048

+244

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

FY2018 FY2019 FY2020

Machinery Construction

32,442

+8.3%

+12.5%

▲34.0%

+2.8%

29,142

24,640

▲8,046

5

◇ Domestic Sales▲5,575M JPYDecline in Equipment sales.

◇ Offshore Sales▲2,226M JPY

・Drop in revenue of the Australian subsidiary; transitioning from steel sales to total package solution provider with focus on Press-inconstruction technology.

・Port rehabilitation works in Senegal suspended due to COVID-19.

Overview－Sales Result Domestic and Offshore Unit : Millions of yen

25,105

27,397

21,822

4,036

5,044

2,818

13.9%

15.5%

11.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

FY2018 FY2019 FY2020

Domestic Offshore Ratio of Offshore

to Total

32,442

+9.1%

+25.0% ▲44.1%

▲20.3%

29,142

24,640▲2,226

▲5,575

6,689

▲8,046

+244

+3,720

▲194 +177 ▲147 +55 2,498

Gross Profit ▲4,081

Cost of Sales Others

MachinerySegmentNet Sales

Operating Profit ▲4,190

FY2019 FY2020

SG&A ▲108

6

LaborCost

ConstructionSegmentNet Sales

Overview－Operating Profit

Unit : Millions of yenOperatingProfit

OperatingProfit

R&DExpenses

DepreciationExpense

7

Overview－Operating Profit to Net Sales

Unit : Millions of yen

14,874

18,824

22,017

25,965

29,142 32,442

24,640

2,159 3,233

4,111 5,124 5,977

6,689

2,498

14.5%

17.2%

18.7%19.7%

20.5% 20.6%

10.1%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

22.0%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

Net Sales Operating Profit Ratio of Operating Profit to Net Sales

8

15,085 17,590

9,279

4,914

5,078

5,261

767

707

725

21,016

23,638

15,592

0

5,000

10,000

15,000

20,000

25,000

FY2018 FY2019 FY2020

Product Maintenance and Parts Rental Others

Cautious approach to capital investment due to economic uncertainties created by the COVID-19 global pandemic led to decline in product sales

Overview－Sales by Category, Machinery Segment (1)Unit : Millions of yen

492506 508

0

400

420

440

460

480

500

520

FY2018 FY2019 FY2020

9

User numbers remain constant

GM1 members increasedas at end August 2020GM1 certified companies: 12 (+1)GM2 certified companies: 5 (±0)

Overview－Sales by Category, Machinery Segment (2)

Unit： Company

Number of Users

10

Overview－Sales by Category, Machinery Segment (3)

Unit : Millions of yen

6,961 7,299

3,211

4,786 6,622

4,198

1,108

831

841

1,112

1,159

1,026

13,969

15,912

9,279

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

FY2018 FY2019 FY2020

Standard Large-scale Special purpose Others

Others• Older Models• Auxiliary Equipment, others

Special Purpose Models• Clear Piler• Zero Piler• GRB System, others

Large-scale Models• Gyro Piler• Tubular Piler, others

Standard Models• F101, F111, F201• Smart Piler, others

Sales by Product Categories

11

Overview－Sales by Region, Construction Segment Unit : Millions of yen

1,421 977 1,476

915587

392

499

448

1,296

1,875

1,786

1,916

907

799

1,158 210

173

393731

783

8611,563 3,246

1,552 8,125

8,803 9,048

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

FY2018 FY2019 FY2020

Shikoku Kyushu Kinki KantoTohoku Hokkaido Others Offshore

Domestic Sales increasedIncreased use of Implant methodologies for critical restoration and disaster prevention & mitigation works.

Levee constructions such as remediation works for Tohoku and disaster prevention works for the potential Nankai Trough megaquake

Landslide prevention work along the Kyushu Shinkansen line

Earthquake resistant construction of bridge piers

River revetment remediation and protection works

Disaster recovery works from typhoon damage

Highway Upgrades

Offshore Sales declined• Decline in sales in Oceania.• Rehabilitation works for the port of

Dakar in Senegal suspended.

2,473 1,797

1,265

1,563 3,246

1,552

4,036

5,044

2,818

0

1,000

2,000

3,000

4,000

5,000

6,000

FY2018 FY2019 FY2020

Offshore Sales

Machinery Construction

12

Overview－Offshore Sales by Segment

Unit : Millions of yen

Asia

15.8%

Africa

10.8%North

America

15.8%Europe

21.8%

Oceania

35.8%

Ratio by Region

FY2019 FY2020 Growth Comparison

Assets

Current Assets 26,909 25,477 ▲1,432Non-current Assets 24,553 24,231 ▲322Assets 51,463 49,708 ▲1,754Liabilities

Current Liabilities 11,674 9,493 ▲2,180Non-current Liabilities 1,459 1,803 343Liabilities 13,134 11,297 ▲1,836Net Assets

Shareholder’s Equity 38,222 37,999 ▲223Valuation and Translation Adjustment ▲591 ▲447 144Share Acquisition Right 242 503 260

Non-controllingInterests 456 355 ▲100Net Assets 38,329 38,411 81Liabilitiesand Net Assets

51,463 49,708 ▲1,75413

Trade notes and accounts receivable▲4,749M JPY

Finished goods+3,429M JPY

Intangible assets(mainly goodwill)

▲315M JPY

Unit : Millions of yen

Overview－Consolidated Balance Sheet

Trade notes and accounts payable▲1,010M JPY

Income taxes payable▲690M JPY

FY2019 FY2020 Growth Comparison

CF from Operating Activities

3,090 3,263 173

CF fromInvestingActivities

▲2,554 ▲1,892 662

CF fromFinancingActivities

▲901 ▲953 ▲51

Cash and CashEquivalents at BOY

5,329 4,920 ▲409

Cash and Cash Equivalents at EOY

4,920 5,324 403

14

◇CF from Operating ActivitiesGrowth Comparison ＋173M JPY

・Increased due to the decline of trade notes and accounts receivable despite decline of profit before income tax.

◇CF from Investing ActivitiesFY2020 ▲1,892M JPY

・Payments into term deposits ▲1,240M JPY ・Proceeds from withdrawal of term deposits

2,090M JPY ・Purchase of property, plant and equipment

▲3,273M JPY

◇CF from Financing ActivitiesFY2020 ▲953M JPY ・Cash dividends paid ▲1,880M JPY ・Net increase in short-term loans payable

363M JPY ・Increase in long-term loans payable

563M JPY

Overview－Consolidated Cash Flow StatementUnit : Millions of yen

Unit : Millions of yen

15

Overview－Capital Investment Expense

4,946

3,391

1,499 2,317

3,060

1,076 1,587 1,632 1,708 1,901

0

2,000

4,000

6,000

8,000

10,000

FY2016 FY2017 FY2018 FY2019 FY2020

Capital Investment Depreciation

Kochi Factory No.3 263Dormitory in Kansai 153Almere Office and Factory 345

Kanto Factory 548

Kochi Head OfficeSouth Bldg. 78Training Center 101

Kochi Head OfficeSouth Bldg. 138Kochi Factory No.3 384Training Center 38Almere Office and Factory 40

Kochi Factory No.2 230

FY2016 FY2017 FY2018 FY2019 FY2020Machines for Rent and Demonstration 3,411 2,485 707 996 1,501Acquisition andMaintenance of Offices and Factories

537 235 229 602 1,004

Others 998 671 563 719 555Total 4,946 3,391 1,499 2,317 3,060

Breakdown

Unit : Millions of yen

16

Overview－Research and Development Expense

827 803 625

2.8%2.5% 2.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

0

200

400

600

800

1,000

FY2018 FY2019 FY2020

R&D Ratio to Net Sales

Forecast FY2021

Unit : Millions of yen

18

Forecast－Consolidated Results

1st half 2nd half Full year YoY

Net sales 24,640 12,800 14,300 27,100 +10.0%

Operating profit

2,498 1,300 1,850 3,150 +26.1%

Ordinary profit

2,792 1,300 1,900 3,200 +14.6%

Profit※ 1,400 800 1,300 2,100 +49.9%

Earnings per share

¥51.28 ¥29.23 ¥47.51 ¥76.74 +49.6%

FY2020Forecast for FY2021

※Profit attributable to owners of Giken Ltd

Sheet1

FY2020Forecast for FY2021

1st half2nd halfFull yearYoY

Net sales24,64012,80014,30027,100+10.0%

Operating profit2,4981,3001,8503,150+26.1%

Ordinary profit2,7921,3001,9003,200+14.6%

Profit※1,4008001,3002,100+49.9%

Earnings per share¥51.28¥29.23¥47.51¥76.74+49.6%

（１）Domestic Trend

19

◎ Increased adoption of Implant Method

• Increased adoption of Implant methodologies centering on disaster prevention and mitigation measures, and aging social infrastructure

• Societal expectations and needs for Implant method remain high

◎ Cautious approach to capital investment

• Uncertainty around further outbreaks and impacts of COVID-19

• Private sector construction investment contraction driven by sharp decline in inbound business demand

Forecast－Key Points (1)

（２） Offshore Trend

20

◎ Focus on ‘total package’ solutions and accelerate the take-up of Press-in methodologies globally

• Innovation Partnership Quay Wall project with the city of Amsterdam in the Netherlands

• Construction of new factory and office building completed in Almere, the Netherlands

• Press-in method proposed for construction of barrier walls for the mining industry in Brazil

• Adoption of Press-in technologies increasing in New York City

• Distribution Agreement concluded with Tianyuan in China

• Rehabilitation works for 3rd wharf at the port of Dakar, Senegal (ODA project) expected to resume

Forecast－Key Points (2)

21

◇ Machinery Segment+2,803M JPYProjected increase in machine sales led by increased adoption of the Implant Method both in Japan and offshore.

◇Construction Segment▲344M JPYDemand for Implant construction methods using large-scale machines to remain steady.

Forecast－Sales by SegmentUnit : Millions of yen

23,638

15,592 18,395

+2,803

8,803

9,048

8,704

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

FY2019 FY2020 FY2021

Machinery Construction

24,640+2.8%

▲34.0%

+18.0%

▲3.8%

32,442

27,100▲344

◎Capital Investment and Depreciation Expense

22

Forecast－Capital Investment and R&D Expense

803 625

1,016

2.5% 2.5%

3.7%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

0

200

400

600

800

1,000

1,200

FY2019 FY2020 FY2021

R&D Ratio to Net Sales

2,317

3,060 3,336

1,708 1,901 1,817

0

1,000

2,000

3,000

4,000

FY2019 FY2020 FY2021

Capital Investment Depreciation

Unit : Millions of yenUnit : Millions of yenAlmere Factory 640Demonstration Facility 1,301

◎Research and Development Expense

FY2019 FY2020 FY2021Machines for Rent and Demonstration 996 1,501 1,075Acquisition and Maintenanceof Offices and Factories 602 1,004 640Others 719 555 1,620Total 2,317 3,060 3,336

Breakdown

Unit : Millions of yen

23

Forecast－Offshore Sales Trend

5,044

2,818

5,200

15.5%

11.4%

19.2%

0.0%

5.0%

10.0%

15.0%

20.0%

0

1,000

2,000

3,000

4,000

5,000

6,000

FY2019 FY2020 FY2021

Offshore Ratio to Net Sales

4,111

5,124

5,977

6,689

2,498 3,150

0

2,000

4,000

6,000

8,000

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

22,017

25,965

29,142 32,442

24,640 27,100

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

Unit : Millions of yenUnit : Millions of yen

【Operating Profit】【Net Sales】

24

Mid-Term Management Plan

Mid-Term Management Plan

Forecast－Outcomes Mid-Term Management Plan

Shareholder Return

FY2020End of Q2 … 35 yen（Result）Year-end … 35 yen（Forecast）

17 2030 34 35 35

1720

3034 35 35

Commemorative

30

34

7060

68 70 70

0

20

40

60

80

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

YearendInterim

Profit（Millions of yen） 2,725 3,671 4,151 4,571 1,400 2,100

Earnings Per share (yen） 110.55 146.35 155.75 168.80 51.28 76.74

Payout Ratio（％） 30.8 47.8 38.5 40.3 136.5 91.2

Dividend on Equity Raito（％） 3.7 3.5 5.7 4.8 5.1 5.1

26※FY2017 End of Q2…20 yen; Commemorative Dividend…10 yen (50 year anniversary）Year-end …20 yen; Commemorative Dividend…20 yen (Listed on TSE First Section）

FY2021（Forecast）End of Q2 … 35 yenYear-end … 35 yen

Shareholder Return

Unit : Millions of yen

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