May 12, 2023

Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2023
[Japanese GAAP]
Company name:
Stock code:
Representative:
Contact:IWAKI CO.,LTD.
Listing: Tokyo Stock Exchange
6237
URL: https://www.iwakipumps.co.jp/
Shigeru Fujinaka, President
Makoto Inoue, Executive Officer,
Senior General Manager of Business Management Head OfficeTel: (81)3-3254-2931
Scheduled date of Annual General Meeting of Shareholders: June 29, 2023
Scheduled date of payment of dividend:
June 30, 2023
Scheduled date of filing of Annual Securities Report:
June 30, 2023
Preparation of supplementary materials for financial results: Yes
Holding of financial results meeting:Yes (for institutional investors and analysts)(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 – March 31, 2023)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Profit attributable
Net sales
Operating profit
Ordinary profit
to owners of parent
Million yen% Million yen% Million yen% Million yen%
Fiscal year ended Mar. 31, 2023
37,730 16.3
2,443
14.2
3,933
31.5
4,398 83.5
Fiscal year ended Mar. 31, 2022
32,439 15.2
2,139
25.4
2,992
34.7
2,396 14.6
Note: Comprehensive income (million yen) Fiscal year ended Mar. 31, 2023:
4,701 (up 30.5%)
Fiscal year ended Mar. 31, 2022:
3,602 (up 43.3%)
Net income per
Diluted net
Ordinary profit Operating profit
Return on equity
share
income per shareon total assets
to net sales
Yen

Yen

Fiscal year ended Mar. 31, 2023
200.35
Fiscal year ended Mar. 31, 2022
109.37
Reference: Equity in earnings of affiliates (million yen)

%

16.3
10.1
Fiscal year ended Mar. 31, 2023: 1,020
Fiscal year ended Mar. 31, 2022: 801

%

%

9.4
8.5

6.5
6.6

(2) Consolidated financial position
Total assets
Net assets
Capital adequacy ratio Net assets per share
Million yen
Million yen%
Yen
As of Mar. 31, 2023
45,31028,98463.6
1,312.59
As of Mar. 31, 2022
37,96325,25166.3
1,149.41
Reference: Owner’s equity (million yen)
As of Mar. 31, 2023: 28,839
As of Mar. 31, 2022: 25,177(3) Consolidated cash flows
Cash flows from
Cash flows from
Cash flows from Cash and cash equivalents
operating activities investing activities financing activities
at end of period
Million yen
Million yen
Million yen
Million yen
Fiscal year ended Mar. 31, 2023
1,914
(1,518)(419)
8,692
Fiscal year ended Mar. 31, 2022
2,710
(429)
(579)
8,573

2. Dividends
Dividend per share
1Q-endFiscal year ended Mar. 31, 2022
Fiscal year ended Mar. 31, 2023
Fiscal year ending Mar. 31, 2024
(forecast)

2Q-end3Q-end Year-end

Total

Total
dividends

Dividend
Dividend on
payout ratio
equity(consolidated) (consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

-

12.00
27.00

-

21.50
34.00

33.50
61.00

733
1,338

30.6
30.4

3.1
5.0

-

16.00

-

27.00

43.00

30.3

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2024 (April 1, 2023 – March 31, 2024)
Net salesFirst half
Full year

Million yen
21,66744,181

Operating profit
%
21.7
17.1

Million yen
1,742
3,920

%
46.9
60.5

(Percentages represent year-on-year changes)
Profit attributable to Net income per
Ordinary profit
owners of parent
shareMillion yen% Million yen
%
Yen
1,951
(11.5)
1,363 (54.4)
62.05
4,302
9.4
3,115 (29.2)
141.79

* Notes(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): Yes
Newly added: 2 (IWAKI Pumps Co., Ltd., IWAKI Pumps (Guangdong) Co., Ltd.)
Note: Please refer to page 13 “3. Consolidated Financial Statements and Notes, (5) Notes to Consolidated Financial
Statements, Changes in Consolidated Subsidiaries during the Period” for details.

(2) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others:

Yes2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:

None4) Restatements:

None

Note: Please refer to page 13 “3. Consolidated Financial Statements and Notes, (5) Notes to Consolidated Financial
Statements, Changes in Accounting Policies” for details.

(3) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Mar. 31, 2023:

22,490,910 shares

As of Mar. 31, 2022:

22,490,910 shares

As of Mar. 31, 2022:

585,863 shares

2) Number of treasury shares at the end of the period
As of Mar. 31, 2023:

519,393 shares

3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2023:

21,954,774 sharesFiscal year ended Mar. 31, 2022:

21,913,149 shares

Reference: Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 – March 31, 2023)(1) Non-consolidated results of operations(Percentages represent year-on-year changes)

Fiscal year ended Mar. 31, 2023
Fiscal year ended Mar. 31, 2022

Net sales
Million yen%
27,902
8.9
25,622 14.9

Operating profit
Million yen%
1,664 (16.8)
2,002
61.7

Ordinary profit
Million yen
%
3,379
27.6
2,649
41.6

Fiscal year ended Mar. 31, 2023
Fiscal year ended Mar. 31, 2022

Net income per shareYen
130.35101.66

Diluted net income per share
Yen-

ProfitMillion yen
2,861
2,227

%
28.5
48.5

(2) Non-consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
Million yen
Million yen%
Yen
As of Mar. 31, 2023
33,942
21,32562.8
970.61
As of Mar. 31, 2022
31,35019,46462.1
888.58Reference: Shareholders’ equity (million yen):
As of Mar. 31, 2023: 21,325
As of Mar. 31, 2022: 19,464* The current financial report is not subject to audit by certified public accountants or auditing firms.
* Cautionary statement with respect to forward-looking statements
Note concerning forward-looking statements
Forecasts of future performance in these materials are based on assumption judged to be valid and information available to
Iwaki’s management at the time the materials were prepared, but are not promises by Iwaki regarding future performance.
Actual results may differ materially from the forecasts. Please refer to “1. Overview of Results of Operations, (1) Results ofOperations, 2) Outlook” on page 2 for forecast assumptions and notes of caution for usage.
How to view supplementary materials for the financial results
Iwaki plans to hold a financial results meeting for institutional investors and analysts on May 29, 2023. Materials to be
distributed at this event will be available on the Company’s website in advance.

IWAKI CO.,LTD. (6237) Financial Results for FY3/23

Contents of Attachments
1. Overview of Results of Operations

2(1) Results of Operations

2(2) Financial Position

3

2. Basic Approach to the Selection of Accounting Standards

4

3. Consolidated Financial Statements and Notes

5(1) Consolidated Balance Sheet

5(2) Consolidated Statements of Income and Comprehensive Income

7

Consolidated Statement of Income

7

Consolidated Statement of Comprehensive Income

8(3) Consolidated Statement of Changes in Equity

9(4) Consolidated Statement of Cash Flows

11(5) Notes to Consolidated Financial Statements

13

Going Concern Assumption

13

Changes in Consolidated Subsidiaries during the Period

13

Changes in Accounting Policies

13

Segment and Other Information

14

Per Share Information

15

Business Combinations

16

Subsequent Events

17

1

IWAKI CO.,LTD. (6237) Financial Results for FY3/23

1. Overview of Results of Operations(1) Results of Operations
1) Operating results for the current fiscal year
Orders at the Iwaki Group were strong during the fiscal year that ended on March 31, 2023as economic activity
began returning to normal in Japan following the pandemic and capital expenditures recovered. The outlook
remains uncertain because of concerns about the impact on corporate earnings of the high cost of raw materials,
restrictions on supplies of these materials, the effects on Japan’s economy of an economic downturn in othercountries, and other events.
Iwaki has been taking many actions in Japan to improve its corporate value based on the core policy of“winning by improving customer satisfaction” with priority on sales activities closely linked to front -line
operations. Overseas, there were activities encompassing 21 affiliated companies in 15 countries to increase
sales. The Iwaki Group continued to accelerate the implementation of various measures for achieving
numerical targets of the Iwaki Group 10-year vision of net sales of 40 billion yen and an operating margin of
10% in the fiscal year ending on March 31, 2025 based on the policy of “supplying the world’s best products as
All Iwaki.”
Sales and earnings increased due mainly to the strong performance of the semiconductor/liquid crystal,
medical equipment and water treatment categories. Sales in the semiconductor/liquid crystal category
increased despite a slowdown of the semiconductor market overall. This growth was the result of a smaller
decline at Iwaki than in the semiconductor industry overall and a large order backlog due to very strong
demand when the orders were received. In the medical equipment category, growth was attributable to arecovery in sales in China and the consolidation of subsidiaries in China beginning with the fourth quarter ofthe fiscal year. In the water treatment category, strong growth in sales continued in the United States.
Sales in Japan increased 7.9% to 19,419 million yen because of higher sales in the semiconductor/liquid
crystal category and all other categories. Overseas, sales in the United States rose 41.8% to 6,100 million yen
as a result of the strong performance of the water treatment category as well as higher sales in all othercategories. In Europe, sales increased 17.6% to 4,671 million yen mainly because of higher sales in thechemicals category and at the Nordic Group. In South Korea, sales increased 12.1% to 3,213 million yen
mainly because of higher sales in the semiconductor/liquid crystal and surface treatment equipment categories.
Sales in China increased 26.1% to 2,578 million yen because of higher sales in the medical equipment category
and newly consolidated subsidiaries.
In product categories, strong sales of mainline magnetic pumps, metering pumps and pneumatic-drive pumps
in the semiconductor/liquid crystal category, which are all core products of the Iwaki Group, were the primarysource of growth.
As a result, consolidated net sales increased 16.3% to 37,730 million yen.
Operating profit increased 14.2% from one year earlier to 2,443 million yen. This was the net result of thecontribution to earnings of sales growth and the negative effects of increases in logistics expenses involving
manufacturing, bonuses and other personnel expenses, advertising and marketing expenses involving
participation at overseas trade shows, higher travel expenses as pandemic restrictions on outings ended, andgoodwill amortization involving a subsidiary in China. In non-operating income, there was an increase in theshare of profit of entities accounted for using the eq uity method and an income from refund. As a result,ordinary profit was up 31.5% to 3,933 million yen. Due to extraordinary income of 1,227 million yen for a gain
on step acquisitions, profit attributable to owners of parent increased 83.5% to 4,398 million yen.
There is no business segment information because chemical pumps are the only business of the Iwaki Group.
2) Outlook
The outlook is expected to remain unclear because of the high cost of parts and raw materials, geopolitical risk
due to the prolonged Ukraine conflict, foreign exchange rate movements and other reasons. Despite thesechallenges, we forecast higher sales because of the inclusion of the sales of IWAKI Pumps Co., Ltd. and
IWAKI Pumps (Shanghai) Co., Ltd., which became consolidated subsidiaries in September 2022, and more

2

IWAKI CO.,LTD. (6237) Financial Results for FY3/23

growth in water treatment category sales in the United States.
In Japan, there will be many activities based on the theme of “winning as a provider of solutions” that target
pump replacement demand and maintenance services. In addition, we will strive to further expand sales bystrengthening solution sales. Overseas, we will create even closer ties with affiliated companies with the goalof more growth in overseas markets.
Based on this outlook, we forecast a 17.1% increase in net sales to 44,181 million yen, a 60.5% increase inoperating profit to 3,920 million yen, a 9.4% increase in ordinary profit to 4,302 million yen, and a 29.2%
decrease in profit attributable to owners of parent to 3,115 million yen in the fiscal year ending on March 31,
2024.
These projections are based on information available at the time this report was released. Actual results may
differ from projections due to a variety of factors.
(2) Financial Position
1) Assets, liabilities and net assets
AssetsCurrent assets at the end of the current fiscal year were 32,187 million yen, up 4,816 million yen from the endof the previous fiscal year. This was mainly due to increases of 639 million yen in accounts receivable-trade,
600 million yen in electronically recorded monetary claims -operating, 2,376 million yen in merchandise andfinished goods and 943 million yen in raw materials and supplies. Non-current assets were 13,122 million yen
at the end of the current fiscal year, up 2,530 million yen from the end of the previous fiscal yea r. This was
mainly because of increases of 2,105 million yen in goodwill and 331 million yen in deferred tax assets.
As a result, total assets increased 7,346 million yen from the end of the previous fiscal year to 45,310 million
yen.
Liabilities
Current liabilities at the end of the current fiscal year were 13,717 million yen, up 2,682 million yen from theend of the previous fiscal year. This was mainly due to increases of 1,194 million yen in notes and accounts
payable-trade, 422 million yen in electronically recorded obligations-operating and 607 million yen in contract
liabilities. Non-current liabilities were 2,608 million yen at the end of the current fiscal year, up 930 million
yen from the end of the previous fiscal year. This was mainly due to increases of 605 million yen in long-termborrowings and 265 million yen in other non-current liabilities due to the application of ASC Topic 842“Leases.”
As a result, total liabilities increased 3,613 million yen from the end of the previous fiscal year to 16,325
million yen.
Net assets
Net assets at the end of the current fiscal year were 28,984 million yen, up 3,733 million yen from the end of
the previous fiscal year. There were increases of 3,330 million yen in retained earnings and 480 million yen inforeign currency translation adjustment.
Consequently, the capital adequacy ratio was 63.6% (66.3% at the end of the previous fiscal year).
2) Cash flows
Cash and cash equivalents (hereinafter, “net cash”) at the end of the current fiscal year was 8, 692 million yen,up 118 million yen over the end of the previous fiscal year (an increase of 1, 637 million yen in the previous
fiscal year).
The cash flow components during the current fiscal year and the main reasons for changes are as described
below.

3

IWAKI CO.,LTD. (6237) Financial Results for FY3/23

Cash flows from operating activities
Net cash provided by operating activities was 1,914 million yen (2,710 million yen provided in the previous
fiscal year). Positive factors include profit before income taxes of 5,166 million yen, which offset negative
factors including income taxes paid of 1,355 million yen.
Cash flows from investing activities
Net cash used in investing activities was 1,518 million yen (429 million yen used in the previous fiscal year).
Negative factors include purchase of property, plant and equipment and intangible assets of 1,294 million yen,which offset positive factors including proceeds from sale of investment securities of 138 million yen.
Cash flows from financing activities
Net cash used in financing activities was 419 million yen (579 million yen used in the previous fiscal year).
Negative factors include dividends paid of 1,062 million yen, which offset positive factors including proceedsfrom long-term borrowings of 800 million yen.
2. Basic Approach to the Selection of Accounting Standards
The Iwaki Group will continue to prepare consolidated financial statements using Japanese accounting
standards for the time being to permit comparisons with prior years and with the financial data of othercompanies.
We will take suitable actions with regard to the application of International Financial Reporting Standards(IFRS) by taking into account associated factors in Japan and other countries.

4

IWAKI CO.,LTD. (6237) Financial Results for FY3/23

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet
FY3/22(As of Mar. 31, 2022)(Thousands of yen)
FY3/23(As of Mar. 31, 2023)

AssetsCurrent assets
Cash and deposits

8,781,886

8,927,985

793,843588,980

Accounts receivable-trade

5,781,820

6,421,063

Electronically recorded monetary claims-operating

3,896,433

4,497,381

Merchandise and finished goods

3,274,488

5,650,511

119,888

141,397

Notes receivable-trade

Work in process
Raw materials and supplies

4,285,302

5,228,772

Other489,283

798,971

Allowance for doubtful accounts(52,156)(67,781)

27,370,790

32,187,283

7,866,212

8,144,787

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment(4,184,745)(4,202,592)

Buildings and structures, net

3,681,467

3,942,195

Machinery, equipment and vehicles

3,246,918

3,496,770(2,775,483)(2,997,027)

471,435

499,743

2,071,207

2,276,945(1,770,695)(1,902,462)

300,511374,483

1,043,711

1,049,205

350,172

346,955(176,849)(199,803)

Leased assets, net

173,323

147,151

Construction in progress

16,36942,148

Accumulated depreciation and impairment
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation and impairment
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation

Other

44,400760,975(34,044)(379,543)

10,356

381,432

5,697,174

6,436,360

Goodwill

706,796

2,811,839

Trademark right

26,78819,672

Other529,048

636,481

1,262,634

3,467,992

Investment securities

2,110,109

1,397,352

Deferred tax assets

323,464

655,155

Retirement benefit asset

887,160

789,245

Other

312,168

376,774

3,632,902

3,218,528

10,592,711

13,122,881

37,963,502

45,310,164

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets

Total intangible assets
Investments and other assets

Total investments and other assets
Total non-current assets
Total assets

5

IWAKI CO.,LTD. (6237) Financial Results for FY3/23(Thousands of yen)
FY3/23(As of Mar. 31, 2023)

FY3/22(As of Mar. 31, 2022)
Liabilities
Current liabilities
Notes and accounts payable-trade

2,492,928

3,687,101

Electronically recorded obligations-operating

3,884,760

4,307,453

Short-term borrowings

1,244,747

1,170,500

75,000155,000

Current portion of long-term borrowings
Lease liabilities

74,39969,268

Income taxes payable

587,120

331,446

Contract liabilities

44,987

652,603

Provision for bonuses

1,022,448

1,203,618

131,504

325,307

Provision for bonuses for directors (and other officers)
Provision for product warranties

90,778100,995

Other

1,385,959

1,714,100

Total current liabilities

11,034,634

13,717,396

Long-term borrowings

562,500

1,167,500

Lease liabilities

Non-current liabilities
124,271

102,588

Retirement benefit liability-

82,552

Asset retirement obligations

223,382

222,551

Other

767,173

1,033,006

1,677,327

2,608,199

12,711,961

16,325,595

Share capital

1,044,691

1,044,691

Capital surplus

674,127

674,127

Retained earnings

22,341,167

25,671,771

Treasury shares(586,764)(519,765)

Total shareholders’ equity

23,473,221

26,870,823

1,460

530

Foreign currency translation adjustment

669,870

1,150,486

Remeasurements of defined benefit plans

1,033,434

817,833

Total accumulated other comprehensive income

1,704,765

1,968,850

73,554

144,895

25,251,541

28,984,569

37,963,502

45,310,164

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Non-controlling interests
Total net assets
Total liabilities and net assets

6

IWAKI CO.,LTD. (6237) Financial Results for FY3/23(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income(Thousands of yen)
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)

FY3/23(Apr. 1, 2022 – Mar. 31, 2023)

Net sales

32,439,738

37,730,407

Cost of sales

21,410,373

24,806,951

Gross profit

11,029,364

12,923,455

Selling, general and administrative expenses

8,889,922

10,480,232

Operating profit

2,139,442

2,443,223

Interest income

3,059

15,871Dividend income
Share of profit of entities accounted for using
equity method
Foreign exchange gains

16,22432,464

801,694

1,020,793

Non-operating income

38,45077,052-

334,115

Other

37,19062,924

Total non-operating income

896,619

1,543,223

Interest expenses

17,93638,708Commission expenses
Loss on amortization of restricted stock
remuneration
Other

9,424

8,346

-

406

16,1995,248

Income from refund

Non-operating expenses

Total non-operating expenses

43,56052,7102,992,500

3,933,736

172

1,318

140,267

7,592

Gain on step acquisitions-

1,227,206

Insurance claim income

39,668-

Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities

Other
Total extraordinary income

1,005

232

181,113

1,236,349

10,555

2,418

862

270

Extraordinary losses
Loss on retirement of non-current assets
Loss on sale of non-current assets
Settlement payments
Other
Total extraordinary losses
Profit before income taxes

55,000

-

-

1,103

66,418

3,792

3,107,195

5,166,293

Income taxes - current

841,884

922,146

Income taxes - deferred(150,515)(193,195)

691,369

728,950

2,415,826

4,437,342

19,07938,6802,396,747

4,398,662

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

7

IWAKI CO.,LTD. (6237) Financial Results for FY3/23

Consolidated Statement of Comprehensive Income(Thousands of yen)
FY3/22
FY3/23(Apr. 1, 2021 – Mar. 31, 2022) (Apr. 1, 2022 – Mar. 31, 2023)
Profit2,415,826

4,437,342

Other comprehensive income
Valuation difference on available-for-sale securities(100,962)(1,121)

Foreign currency translation adjustment

376,587

466,170

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method

739,653(215,600)

171,730

15,167

1,187,008

264,615

3,602,835

4,701,957

3,581,482

4,662,747

21,352

39,210Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests

8

IWAKI CO.,LTD. (6237) Financial Results for FY3/23(3) Consolidated Statement of Changes in Equity
FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginningof period

1,044,691

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity675,384

20,673,009(456,247)

21,936,836

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period(725,680)(725,680)

2,396,747

2,396,747(181,687)(181,687)(1,257)(2,908)51,17147,005-(1,257)

1,668,157(130,516)

1,536,384

1,044,691

674,127

22,341,167(586,764)

23,473,221(Thousands of yen)

Accumulated other comprehensive income

Balance at beginningof period

Valuationdifference on
available-for-salesecurities

Foreigncurrencytranslation
adjustment

102,329

123,917

Total
Remeasurements accumulated Non-controllinginterestsof definedotherbenefit plans comprehensive
income293,781520,029

63,611

Total net
assets

22,520,477

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period(725,680)
2,396,747(181,687)
47,005(100,869)

545,952

739,653

1,184,735

9,943

1,194,678(100,869)

545,952

739,653

1,184,735

9,943

2,731,063

1,460

669,870

1,033,434

1,704,765

73,55425,251,541

9

IWAKI CO.,LTD. (6237) Financial Results for FY3/23

FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginningof period

1,044,691

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity674,127

22,341,167(586,764)

23,473,221

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Change in scope of
consolidation
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period

(1,064,190)(1,064,190)

4,398,662

4,398,662

(90)

(90)

(3,867)67,08863,220--3,330,604

66,9983,397,602

1,044,691

674,127

25,671,771(519,765)

26,870,823(Thousands of yen)

Accumulated other comprehensive income

Balance at beginningof period

Valuationdifference on
available-for-salesecurities

Foreigncurrencytranslation
adjustment

1,460

669,870

Total
Remeasurements accumulated Non-controllinginterestsof definedotherbenefit plans comprehensive
income1,033,434

1,704,765

73,554

Total net
assets25,251,541

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Change in scope of
consolidation
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period

(1,064,190)
4,398,662(259,919)(259,919)(259,919)(90)
63,220(930)

740,535(215,600)

524,004

71,340595,345(930)

480,615(215,600)

264,084

71,3403,733,028

530

1,150,486

817,833

1,968,850

144,895

28,984,569

10

IWAKI CO.,LTD. (6237) Financial Results for FY3/23(4) Consolidated Statement of Cash Flows(Thousands of yen)
FY3/22
FY3/23(Apr. 1, 2021 – Mar. 31, 2022) (Apr. 1, 2022 – Mar. 31, 2023)
Cash flows from operating activities
Profit before income taxes

3,107,195

5,166,293

Depreciation

759,607923,216

Amortization of goodwill

83,520145,898

Increase (decrease) in allowance for doubtful accounts

22,28016,837

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors(and other officers)
Increase (decrease) in retirement benefit liability

269,179

2,769

41,014

193,230(88,664)(169,020)

Interest and dividend income(19,283)(48,336)

Insurance claim income(39,668)--(334,115)

17,93638,708

Income from refund
Interest expenses
Loss (gain) on sales of investment securities(140,267)(7,592)

74,171(212,911)(801,694)(1,020,793)-(1,227,206)(786,800)(125,730)

Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on step acquisitions
Decrease (increase) in trade receivables
Decrease (increase) in inventories(1,707,470)(2,361,103)

Increase (decrease) in trade payables

1,819,770

688,098

Increase (decrease) in accounts payable-other

61,376

210,919

Increase (decrease) in accrued expenses

88,104(243)

Increase (decrease) in accrued consumption taxes(14,130)(14,120)

Settlement payments

55,000-

Other, net(6,403)

158,350

Subtotal

2,794,773

2,023,150

Interest and dividends received

542,956

1,234,910

Proceeds from insurance income

39,668--45,904

Interest paid

(12,664)(33,853)

Settlement paid

(55,000)-

Income taxes paid

(598,827)(1,355,183)

Net cash provided by (used in) operating activities

2,710,905

1,914,928(201,063)(89,402)

199,563

86,650(628,194)(1,294,649)

2,233

1,047

198,967

138,227-(318,534)(697)(42,193)(429,191)(1,518,854)

Proceeds from refund

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment and intangible
assetsProceeds from sale of property, plant and equipment andintangible assets
Proceeds from sale of investment securities
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Other, net
Net cash provided by (used in) investing activities

11

IWAKI CO.,LTD. (6237) Financial Results for FY3/23

FY3/22(Apr. 1, 2021 – Mar. 31, 2022)(Thousands of yen)
FY3/23(Apr. 1, 2022 – Mar. 31, 2023)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

489,092

48,771

Proceeds from long-term borrowings-

800,000

Repayments of long-term borrowings(75,000)(116,215)

Repayments of lease liabilities(76,957)(70,430)

Purchase of treasury shares(181,687)(90)

Dividends paid

(723,377)(1,062,472)

Dividends paid to non-controlling interests(11,409)(18,598)

Net cash provided by (used in) financing activities(579,340)(419,036)

Effect of exchange rate change on cash and cash
equivalents(64,610)141,073

Net increase (decrease) in cash and cash equivalents

1,637,764

118,111

Cash and cash equivalents at beginning of period

6,936,133

8,573,897

Cash and cash equivalents at end of period

8,573,897

8,692,008

12

IWAKI CO.,LTD. (6237) Financial Results for FY3/23(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Changes in Consolidated Subsidiaries during the Period
In the fiscal year ended on March 31, 2023, IWAKI Pumps Co., Ltd. (IPH) and IWAKI Pumps (Shanghai) Co.,
Ltd. (IPS) were converted from equity-method affiliates to consolidated subsidiaries due to the purchase ofadditional stock of IPH and an additional ownership interest in IPS. Due to the pu rchase of IPH stock, GFTZIWAKI Engineering & Trading Co., Ltd. (IPG) and IWAKI Pumps (Guangdong) Co., Ltd. (IGD), which are
wholly owned subsidiaries of IPH, and IWAKI Pumps (Shenzhen) Co., Ltd., which is a wholly owned
subsidiary of IPG, are also included in the scope of consolidation.
IPH and its subsidiary IGD are classified as specified subsidiaries.
Changes in Accounting Policies
Application of the Guidance on Accounting Standard for Measurement of Fair Value
Iwaki started to apply the Guidance on Accounting Standard for Measurement of Fair Value (AccountingStandards Board of Japan Guidance (ASBJ) Statement No. 31, June 17, 2021) at the beginning of the current
fiscal year, and has applied the new accounting policies set forth by the Guidance on Accounting Standard for
Measurement of Fair Value prospectively in accordance with the transitional measures in Paragraph 27-2 of the
Guidance on Accounting Standard for Measurement of Fair Value.
There is no effect of the application of these standards on t he consolidated financial statements.
Application of Accounting Standards Certification (ASC) Topic 842 “Leases” of the U.S. Financial AccountingStandards Board
Beginning with the current fiscal year, some consolidated subsidiaries outside Japan that use U.S. accounting
standards are using ASC Topic 842 “Leases.” As a result, for all leases where these subsidiaries are the lessee,
as a rule, all lease assets and liabilities are included in the balance sheet.
In accordance with the transitional measures allowed by ASC Topic 842, the cumulative monetary effects of
the application of this topic were recognized on the first day of the application of this topic.
As a result, at the beginning of the current fiscal year, right-of-use assets, which are included in other, net ofproperty, plant and equipment, increased 419 million yen, lease obligations included in other current liabilities
increased 110 million yen, and lease obligations included in other non -current liabilities increased 334 million
yen.
The effect of this change on earnings in the current fiscal year is insignificant.

13

IWAKI CO.,LTD. (6237) Financial Results for FY3/23

Segment and Other Information
Segment information
Omitted because chemical pumps are the only business of the Iwaki Group.
Related information
FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)
1. Information by product or service

External sales

Magnetic drive
pumps
10,828,106
Air pumps
1,566,008

Metering pumps
5,483,689
System products
1,625,220

Pneumatic drivepumps
4,243,157
Purchased products
2,750,359(Thousands of yen)
Rotary displacement
pumps
2,118,435
Other
3,824,760

Total
32,439,738

2. Information by region(1) Net sales(Thousands of yen)Japan
EuropeAmericas
Asia
China
Other
Total
17,997,597
3,972,181
4,301,038
2,865,598
2,044,069
1,259,253
32,439,738
Note: Classification of net sales is based on the location of the client and categorized by country or region.

(2) Property, plant and equipment(Thousands of yen)Japan
EuropeGermany
Americas
Asia
China
Total
4,770,657
26,821
660,162
188,834
50,698
5,697,174
Note: Classification of property, plant and equipment is based on the location of the client and categorized by country
or region.

3. Information by major client
Omitted because no specific external client accounts for 10% or more of net sales in the consolidated statementof income.
FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)
1. Information by product or service

External sales

Magnetic drive
pumps
11,988,379
Air pumps
1,870,536

Metering pumps
6,416,349
System products
1,951,083

Pneumatic drivepumps
5,135,913
Purchased products
2,811,215(Thousands of yen)
Rotary displacementpumps
2,012,269
Other
5,544,660

Total
37,730,407

2. Information by region(1) Net sales(Thousands of yen)Japan
EuropeAmericas
Asia
China
Other
Total
19,419,737
4,671,588
6,100,975
3,213,210
2,578,515
1,746,379
37,730,407
Note: Classification of net sales is based on the location of the client and categorized by country or region.

(2) Property, plant and equipment(Thousands of yen)Japan
EuropeGermany
Americas
Asia
China
Total
5,005,187
46,019706,259
541,874
56,09780,9236,436,360
Note: Classification of property, plant and equipment is based on the location of the client and categorized by country
or region.

14

IWAKI CO.,LTD. (6237) Financial Results for FY3/23

Reclassifications
Property, plant and equipment in “Germany,” included in “Europe” in the previous fiscal year, is presented
separately from the current fiscal year because it exceeds 10% of property, plant and equipment on the
consolidated balance sheet. To conform to this change, “2. Information by region, (2) Property, plant andequipment” for the previous fiscal year has been reclassified.
As a result, “Europe” (686,983 thousand yen) presented in “2. Information by region, (2) Property, plant andequipment” for the previous fiscal year has been reclassified and divided into “Europe” (26,821 thousand yen)and “Germany” (660,162 thousand yen).
3. Information by major client
Omitted because no specific external client accounts for 10% or more of net sales in the consolidated statementof income.
Information related to impairment losses on non-current assets for each reportable segment
Not applicable.
Information related to goodwill amortization and the unamortized balance for each reportable segment
Omitted because chemical pumps are the only business of the Iwaki Group.
Information related to gain on bargain purchase for each reportable segment
Not applicable.
Per Share Information
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)(Yen)
FY3/23(Apr. 1, 2022 – Mar. 31, 2023)

Net assets per share

1,149.41

1,312.59

Net income per share

109.37200.35

Notes: 1. Diluted net income per share is not presented because there are no latent shares.
2. The basis of calculating the net income per share is as follows:
FY3/22
FY3/23(Apr. 1, 2021 – Mar. 31, 2022) (Apr. 1, 2022 – Mar. 31, 2023)
Profit attributable to owners of parent
2,396,747
4,398,662(Thousands of yen)Amount not attributable to common shareholders(Thousands of yen)
Profit attributable to owners of parent applicable to2,396,747
4,398,662
common shares (Thousands of yen)
Average number of shares outstanding (Shares)

21,913,149

15

21,954,774

IWAKI CO.,LTD. (6237) Financial Results for FY3/23

Business Combination
Business combination through acquisition
1. Summary of business combination(1) Acquired these companies and business activities
Companies: IWAKI Pumps Co., Ltd. (IPH), IWAKI Pumps (Shanghai) Co., Ltd. (IPS)Business activities: Sales and import and export of chemical pumps(2) Reasons for acquisition
IPH and IPS operate in China, where rapid economic growth is creating an increasing need for measures to
upgrade the social infrastructure and protect the environment. Iwaki believes that making these twocompanies consolidated subsidiaries will contribute to the growth of business ope rations.
(3) Acquisition date
IPH stock acquisition date:

September 20, 2022

IPS equity acquisition date:

September 16, 2022

Assumed acquisition date:

September 30, 2022

(4) Legal form of acquisition
Acquisition of shares and interests with cash(5) Names of companies after acquisition
There is no change in the names of the companies.
(6) Percentage of voting rights acquired
Percentage of voting rights immediately before the acquisition:

IPH 40%; IPS 40%

Percentage of voting rights additionally acquired on acquisition date: IPH 60%; IPS 50%
Percentage of voting rights after acquisition:

IPH 100%; IPS 90%(7) Basis for choosing the company to acquire
Iwaki acquires voting rights of equity-method affiliates IPH and IPS by acquiring their shares and interests
in exchange for consideration in cash.
2. Period of the acquired companies’ performance included in the consolidated financial statements
October 1, 2022 to December 31, 2022
Since the difference between the fiscal year ends of the two acquired companies and the fiscal year end of
the consolidated financial statements does not exceed three months, the consolidated financial statements
are prepared based on the financial data of these two companies. Consolidation adjustments are made as
needed for any significant transactions that happen between the fiscal year end of these companies and theend of the fiscal year for the consolidated financial statements. Results of operations o f these twocompanies before this business combination are included in the share of profit of entities accounted forusing the equity method.
3. Acquisition cost of acquired company and breakdown by type of consideration
Payment for the acquisition
IPH:
Fair value of stock held prior to the business combination as of
the business combination date:
Fair value of stock acquired on the business combination date :1,250,563 thousand yen
1,875,845 thousand yen
3,126,408 thousand yen

Acquisition cost:16

IWAKI CO.,LTD. (6237) Financial Results for FY3/23

IPS:
Fair value of stock held prior to the business combination as of
the business combination date:
Fair value of stock acquired on the business combination date :524,233 thousand yen
655,291 thousand yen
1,179,525 thousand yen

Acquisition cost:

4 Major acquisition-related expenses
Advisory fees, etc.: 31,805 thousand yen
5. Goodwill resulting from the acquisition(1) Goodwill
IPH: 1,667,028 thousand yen
IPS: 698,418 thousand yen
The amounts of goodwill are provisional because the allocation of the acquisition cost in the fiscal year that
ended in March 2023 has not been finalized.
(2) Source of goodwill
Goodwill is mainly the increase in profitability that is expected from the business operations of these twocompanies.
(3) Amortization method and amortization period
Goodwill is to be amortized using the straight-line method over 10 years, using a provisional accounting
treatment.
6. Allocation of acquisition cost
As of March 31, 2023, the recognition of assets and liabilities that can be identified and calculation of fairvalues as of the business combination date had not been completed. As a result, the allocation of theacquisition cost as well has not been completed and a provisional accounting treatment based on
information that was available at that time and believed to be reasonable was used.
Subsequent Events
Not applicable.

This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience ofreaders who prefer an English translation.

17