Riken Keiki (7734) Investor presentation summary

Review of previous medium-term management plan

• Achieved net sales of 55.2 billion yen and operating profit of 12.4 billion yen, both exceeding targets.

• Maintained double-digit ROE and increased annual dividends throughout the period.

• Operating profit margin declined due to rising raw material costs despite price increases.

• Dividend payout ratio and ROE remained strong, with dividends per share rising each year.

Business environment and market trends

• Stricter global safety and environmental regulations are generating new demand for gas detection and monitoring.

• Semiconductor and shipping markets identified as priority growth sectors due to strong demand and government support.

• Geopolitical risks, supply chain vulnerabilities, and rising competition are key challenges.

• Opportunities exist in IoT/AI-driven services, smart city integration, and overseas expansion.

New medium-term management plan (FY2026–FY2028)

• Targets consolidated net sales of 70.0 billion yen and operating profit of 14.0 billion yen or more by FY2028.

• Focuses on global market expansion, value chain strengthening, and strategic product launches.

• Operating profit margin expected to temporarily decline due to investments in human capital and DX.

• Long-term profitability to recover, driven by after-sales maintenance services overseas.