Giken : Financial Results Overview FY2024 3rd Quater has been posted.

Construction Revolution

Third Quarter of FY2024 (September 2023 to May 2024)

GIKEN LTD.

Financial Results

Overview

July 10 , 2024

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This document has been translated into English. In case of any difference in meaning between the original Japanese text and the English translation, the Japanese text shall prevail.

1

Financial Results Overview

for the Third Quarter of FY2024

2

Financial Results Trend

				Unit: Millions of JPY
	FY2022	FY2023		FY2024
	First Nine	First Nine Months		First Nine Months
	Months	YoY	YoY
	Actual	Actual
	Actual
Net sales	20,768	21,196	+2.1%	22,133	+4.4%
Gross profit	8,195	7,951	-3.0%	8,363	+5.2%
(Gross Margin)	(39.5%)	(37.5%)	(37.8%)
Operating profit	3,174	2,176	-31.4%	2,837	+30.4%
(Operating Profit Margin)	(15.3%)	(10.3%)	(12.8%)
Ordinary profit	3,315	2,253	-32.0%	3,132	+39.0%
Profit※1	2,200	223※2	-89.9%	2,218	+894.5%
Profit Per Share	JPY 80.05	JPY 8.11	-89.9%	JPY 82.78 +920.7%

※1 Profit: Net income attributable to GIKEN LTD.

※2 An extraordinary losses of JPY1,367M for loss on a liquidation of subsidiaries and associates was recorded for the 3Q 3 of FY 2023.

Domestic and Overseas Sales Comparison

Unit: Millions of JPY

	FY2022	FY2023	FY2024
	First Nine	First Nine		First Nine
	Months	Months	YoY	Months	YoY
	Actual	Actual		Actual
Net sales	20,768	21,196	+2.1%	22,133	+4.4%
Domestic	16,834	18,044	+7.2%	19,351	+7.2%
Sales
Overseas	3,934	3,151	-19.9%	2,782	-11.7%
Sales
Overseas	18.9%	14.9%	-4.0%pt	12.6%	-2.3%pt
Ratio

(Note) The number of overseas consolidated subsidiaries decreased by one in June 2023.

4

Net Sales and Operating Profit ー Comparison with Previous Year

Results for first	Results for first		[Factors in sales changes]
nine months of	nine months of
FY2023		FY2024	Unit: Millions	■Construction Machinery Segment
		22,133	・Overseas product sales increased
21,196		of JPY
			significantly.
				・Spikes in construction material prices, etc.
		6,980		affected sales of large-scale specialized
6,548			machinery.
				■Press-in Work Segment
				・Project orders steadily received for projects
				related to post-disaster reconstruction,
				national resilience strengthening, etc.
				・The number of overseas consolidated
		15,153		subsidiaries decreased by one in June 2023.
14,648			[Factors in operating profit changes]
				・Gross profit increased in the Construction
				Machinery Segment, driven by sales
		2,837	increases and first-half sale of products with
2,176		high gross margins.
				・Selling, general and administrative
				expenses decreased thanks to downsized
Construction Machinery	Operating profit	U.S. operations.
Segment Net Sales

Press-in Work Segment Net	5
Sales

Trend of Net Sales by Segment

			Construction Machinery	Unit: Millions of JPY
16,000															50%
						14,648				15,153
		13,699								45%
14,000				1,181				2,577
	1,179							40%
12,000
														35%
10,000		12,520			13,466				12,575		30%
8,000										25%
											17.0%
6,000														20%
	8.6%										15%
4,000				8.1%
								10%
2,000															5%
0																0%
				FY2022		FY2023	FY2024
			First Nine Months	First Nine Months	First Nine Months
					Domestic Sales		Overseas Sales		Overseas Ratio

[Factors in sales changes: 3Q (During the applicable 3 months)]

Domestic: ・ Solid sales for general machinery such as F112, a new hard- ground press-in machine.

• Spikes in construction material prices, etc. affected sales of

large-scale specialized machinery.

Overseas: ・ Delivered general machinery products to Macao's largest foundation work company, thanks to increased demand for pollution-free construction methods associated with urbanization, etc.

• Delivered general machinery products to a user in Taiwan.
• Delivered a hard-groundpress-in machine for an ODA project in Indonesia.
• Posted product sales in Brazil.

					Press-in Work			Unit: Millions of JPY
16,000															50%
14,000															45%
	39.0%								40%
12,000
														35%
						30.1%
10,000												30%
8,000															25%
7,069			6,548		6,980
									204		20%
6,000
	2,755			1,970						15%
4,000
						4,578		6,775		10%
2,000		4,313				2.9%		5%
0																0%
				FY2022		FY2023			FY2024
			First Nine Months	First Nine Months			First Nine Months
					Domestic Sales		Overseas Sales				Overseas Ratio

[Factors in sales changes: 3Q (During the applicable 3 months)]

Domestic: ・ Project orders steadily received for projects related to post- disaster reconstruction, national resilience strengthening, etc.

Overseas: ・ Sales decreased in Oceania due to a decrease of one consolidated subsidiary in June 2023.

6

Trend of Operating Profit by Segment

			Construction Machinery		Unit: Millions of JPY
16,000										15,245		15,482
	14,426				597		329
14,000					726
12,000
10,000
											15,153
8,000		13,699				14,648
6,000
4,000
3,917				3,317		3,537
2,000
(27.2%)				(21.8%)		(22.8%)
0
						FY2022		FY2023			FY2024
				First Nine Months	First Nine Months			First Nine Months
						External Customer Sales		Internal Sales				Operating profit

Figures in brackets show operating profit margins.

[Factors in profit margin changes: 3Q (the applicable 3 months)]

• Product price revisions introduced in the previous fiscal year contributed to earnings.
• Sales decreased for large-scale specialized machinery with high gross margins.
• Decreasing in R&D expenses due to changes in development plan.

Press-inWork Unit: Millions of JPY

16,000

14,000

12,000

10,000

8,000
7,185	6,784	7,105
	116	124
6,000	235

		7,069			6,548		6,980
4,000
946			831		1,126
2,000					(15.9%)
	(13.2%)			(12.3%)
0
					FY2022		FY2023			FY2024
				First Nine Months	First Nine Months			First Nine Months
					External Customer Sales		Internal Sales				Operating profit

Figures in brackets show operating profit margins.

[Factors in profit margin changes: 3Q (the applicable 3 months)] ・Orders steadily received for high-gross margin projects.

7

Full-Year Forecast for FY2024

FY2024

8

Forecast

Unit: Millions of JPY

				FY2024
		1Q (Sep-	2Q (Dec-	3Q (Mar-	4Q (Jun-
		Full Year
		Nov)	Feb)	May)	Aug)
		Forecast
		Actual	Actual	Actual	Forecast
	Net sales	7,418	8,117	6,598	7,866	30,000
	Operating profit	1,198	1,219	420	462	3,300
	Ordinary profit	1,265	1,324	542	267	3,400
	Profit*	872	977	368	181	2,400
	Profit Per Share	JPY 32.49	JPY 36.52	JPY 13.76	JPY 6.91	JPY 89.68

* Profit: Net income attributable to GIKEN LTD.

9