Business plan

RIKEN TECHNOS: Three-year medium-term business plan

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. RIKEN TECHNOS CORPORATION assumes no liability for this translation or for direct, indirect or any other form of damage resulting from the translation.

RIKEN TECHNOS CORPORATION

Medium-term three-year business plan

May 20, 2022

Previous medium-term three-year business plan

Generate more value together!

Aiming to become the premier comfort provider for all living spaces

1

Overview of the previous three-year medium-term business plan

Management policy

MORE VALUE TO ALL 2021: Generate more value together!

Digital goals

Consolidated

Year ended March 2022

base

(last year of the plan)

Net sales

115 billion yen

Operating result

8.5 billion yen

Ordinary profit

8.5 billion yen

Net revenue

5 billion yen

SAR

7.0

DEER

8.0

Five key challenges

  • Intensify global management and generate synergies
  • Improve ability to generate revenue and profit through strategic thinking
  • Achieve a production structure that reflects the in-depth search for efficiency
  • Contribute to a sustainable society
  • Strengthen the foundations of the business through management emphasizing human resource development and governance

Aiming to become the premier comfort provider for all living spaces

2

Summary of the results of the previous three-year medium-term business plan

(digital performances)

Net sales

Operating result

SAR

Ordinary profit

Net revenue

DEER

Summary

billion yen

Year ended March

Year ended March

Related to

2022 (map)

2022 (actual)

to plan

115.0

109.9

-5.1

-4.4%

8.5

6.3

-2.2

-26.0%

7.0%

5.7%

-1.3%

8.5

6.9

-1.6

-19.0%

5.0

3.9

-1.1

-21.2%

8.0%

7.1%

-0.9%

Consolidated financial results

SAR

DEER 109.9

97.8 98.8

88.2 7.1%

6.4% 6.2% 6.3%

5.7%

5.9%6.0%

5.6%

5.8 5.6 5.3 6.3

3.1 3.1 3.2 3.9

15.0

12.5

yen)

10.0

(billion

7.5

net revenue/

5.0

profit

2.5

Operating

0.0

  • Net sales and each measure of profit over the last year of medium-term business plan were the highest ever recorded.

Year ended

Year ended

Year ended

Year ended

March 2019

March 2020

March 2021

March 2022

  • However, the plan was not realized due to the impact of COVID-19 and soaring commodity prices.

Net sales

Operating

Net revenue

profit

Aiming to become the premier comfort provider for all living spaces

3

Five challenges and key results (1)

  • Intensify global management and generate synergies

Improvement of the level of management of sites abroad

Global synergies demonstrated

– Overall administration progressed in each division

– Acquisition of a company composed of an Asian third party.

relying on an organization aware of global issues

– Complete optimization of the production structure in ASEAN

management issues.

(began to expand its compound production facilities in

– Deployment of the Riken standard for manufacturing

Thailand and Vietnam).

globally.

– Acquisition of an activity related to the thermal barrier film ICE-µ

– Improvement of the sophistication of the governance of

for car windows.

subsidiaries abroad.

  • Improve ability to generate revenue and profit through strategic thinking

Strengthening sales of high value-added products

Effective profit increase

  • Expanded range and sales of RIKEGUARD infection control products.
  • Acquisition of the assets of ACS and expansion into the field of electrical materials.
  • Worked with a design subsidiary to improve marketing in new markets.
  • Promotion of shared administrative operations to reduce costs and continued integration of the subsidiaries’ information systems.
  • Increased group management efficiency and enhanced development/sales capabilities through the absorption of Riken Fabro Co., Ltd.

Aiming to become the premier comfort provider for all living spaces

4

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