Riken Technos (4220) investor relations material

Executive summary

• Net sales reached ¥131.4 billion, up 2.5% year-over-year, with operating profit up 8.8% to ¥11.4 billion and ordinary profit up 11.3%; net income attributable to owners of parent increased 2.7% to ¥7,569 million.

• Growth was driven by strong performance in the Transportation and Electronics segments, while Daily Life & Healthcare saw a slight revenue decline but higher profits.

• The first year of the Medium-term Business Plan focused on global expansion, customer-centric strategies, and new business development.

• The company continued to optimize its global production structure and invested in capacity expansion, R&D, and sustainability initiatives.

Financial highlights

• Net sales: ¥131,377 million (+2.5% YoY); Operating profit: ¥11,408 million (+8.8% YoY); Ordinary profit: ¥11,786 million (+11.3% YoY); Net income: ¥7,569 million (+2.7% YoY).

• EBITDA rose 7.5% YoY to ¥15,676 million.

• Gross profit increased to ¥25,611 million from ¥24,321 million YoY; gross profit margin improved to 19.5%.

• Free cash flow increased to ¥11,251 million, up ¥2,856 million YoY.

• Basic earnings per share improved to ¥153.72 from ¥137.67 YoY.

Outlook and guidance

• FY2027 net sales forecast: ¥142,000 million (+8.1% YoY); Operating profit: ¥12,000 million (+5.2% YoY); EBITDA: ¥16,900 million (+7.8% YoY); net income expected to decrease to ¥6,800 million (-10.2% YoY) due to absence of one-time gains.

• The company targets ROE of 10% and ROIC of 11% for the final year of the medium-term plan.

• Focus remains on increasing earning power, sustainability, global integration, and new business initiatives.