August 10, 2023

Summary of Consolidated Financial Results
for the First Quarter of Fiscal Year Ending March 31, 2024
(Three Months Ended June 30, 2023)[Japanese GAAP]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 filing of Quarterly Report:
August 10, 2023
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:
None

Company name:
Stock code:
Representative:
Contact:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter Ended June 30, 2023
(April 1, 2023 – June 30, 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%
Three months ended Jun. 30, 2023
11,107 32.4
1,451
94.9
1,782
53.9
1,222 25.5
Three months ended Jun. 30, 2022
8,390 10.4
744
98.8
1,158
103.8
974 91.0
Note: Comprehensive income (million yen) Three months ended Jun. 30, 2023: 1,383 (down 3.4%)
Three months ended Jun. 30, 2022: 1,431 (up 94.5%)
Diluted net income per
Net income per share
share
Three months ended Jun. 30, 2023
Three months ended Jun. 30, 2022

Yen

Yen

55.65
44.47

-

(2) Consolidated financial position
Total assets
Net assets
Capital adequacy ratio
Million yen
Million yen%
As of Jun. 30, 2023
47,10429,61962.5
As of Mar. 31, 2023
45,31028,984
63.6
Reference: Owner’s equity (million yen)
As of Jun. 30, 2023: 29,438
As of Mar. 31, 2023: 28,839

2. Dividends
1Q-end2Q-endYen

Fiscal year ended Mar. 31, 2023
Fiscal year ending Mar. 31, 2024
Fiscal year ending Mar. 31, 2024 (forecasts)
Note: Revisions to the most recently announced dividend forecasts: None

Dividend per share
3Q-endYear-end

Total

Yen

Yen

Yen

Yen

27.00

-

34.00

61.00

16.00

-

27.00

43.00

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2024 (April 1, 2023 – March 31, 2024)(Percentages represent year-on-year changes)
Profit attributable to Net income per
Net sales
Operating profit
Ordinary profit
owners of parent
shareMillion yen%
Million yen% Million yen% Million yen%
Yen
First half
21,667
21.7
1,742
46.9
1,951
(11.5)
1,363 (54.4)
62.05
Full year
44,181
17.1
3,920
60.5
4,302
9.4
3,115 (29.2)
141.79Note: Revisions to the most recently announced consolidated earnings forecasts: None

* Notes(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
(2) Application of special accounting methods for presenting quarterly consolidated financial statements: Yes
Note: Please refer to page 8 “2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly Consolidated
Financial Statements, Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial
Statements” for details.

(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others:None2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:

None4) Restatements:

None(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Jun. 30, 2023:

22,490,910 shares

As of Mar. 31, 2023:

22,490,910 shares

As of Mar. 31, 2023:

519,393 shares

2) Number of treasury shares at the end of the period
As of Jun. 30, 2023:

519,393 shares

3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2023: 21,971,517 shares

Three months ended Jun. 30, 2022:

21,904,505 shares* The current quarterly financial report is not subject to quarterly review 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.
How to view supplementary materials for the quarterly financial results meeting
The supplementary information materials for quarterly financial results are disclosed on the Company’s website today (August
10, 2023).

IWAKI CO.,LTD. (6237) Financial Results for the First Quarter of FY3/24

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

2(3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements

3

2. Quarterly Consolidated Financial Statements and Notes

4(1) Quarterly Consolidated Balance Sheet

4(2) Quarterly Consolidated Statements of Income and Comprehensive Income

6

Quarterly Consolidated Statement of Income
For the Three-month Period

6

Quarterly Consolidated Statement of Comprehensive Income
For the Three-month Period

7(3) Notes to Quarterly Consolidated Financial Statements

8

Going Concern Assumption

8

Significant Changes in Shareholders’ Equity

8

Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

8

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IWAKI CO.,LTD. (6237) Financial Results for the First Quarter of FY3/24

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first quarter of the current fiscal year, the outlook of the global economy remained uncertain due toapprehensions surrounding the economic repercussions of monetary tightening in several countries, soaring
energy and commodities prices, and a combination of other factors. On the flip side, despite economic fragility
in certain regions, there is also a sense of anticipation regarding potential economic revival, exemplified by the
resurgence of capital investment in Japan.
Iwaki has been taking many actions in Japan to improve its corporate value based on the core policy of“winning by creating solutions.” 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 theworld’s best products as All Iwaki.”
Sales in the water treatment category increased 37.3% to 2,607 million yen as sales remained strong mainly in
the United States. Furthermore, sales in the semiconductor/liquid crystal category increased 24.0% to 2,245
million yen and sales in the medical equipment category increased 49.7% to 1,868 million yen partially due tocontribution of subsidiaries in China which were consolidated during the fourth quarter of the previous fiscal
year. These categories accounted for most of the growth of first quarter sales and earnings.
Sales in Japan increased 14.3% to 5,033 million yen because of higher sales in all market categories. Overseas,
sales in the United States rose 38.0% to 1,729 million yen as a result of the continued strong performance of
the water treatment category. In Europe, sales increased 35.8% to 1,348 million yen mainly because of higher
sales in the chemicals category. In Taiwan, sales decreased 10.1% to 826 million yen mainly because ofsluggish sales in the semiconductor/liquid crystal and surface treatment equipment categories. Sales in China
increased 220.3% to 1,699 million yen partially due to contribution of subsidiaries in China.
Every product category, including magnetic pumps and metering pumps, which are core product lines of the
Iwaki Group, showed robust performance.
As a result, consolidated net sales increased 32.4% to 11,107 million yen.
Operating profit increased 94.9% from one year earlier to 1,451 million yen. This was the result of thecontribution of newly consolidated subsidiaries in China and sales growth at other subsidiaries. Ordinary profit
was up 53.9% to 1,782 million yen mainly due to a decrease in share of profit of entities accounted for using
the equity method in non-operating income following the consolidation of subsidiaries in China and anincrease in interest expenses in non-operating expenses. Profit attributable to owners of parent increased
25.5% to 1,222 million yen.
There is no business segment information because chemical pumps are the only business of the Iwaki Group.
(2) Explanation of Financial Position
AssetsCurrent assets at the end of the first quarter of the current fiscal year were 34,199 million yen, up 2,011 million
yen from the end of the previous fiscal year. This was mainly due to increases of 1,161 million yen in cash anddeposits and 696 million yen in notes and accounts receivable-trade, and contract assets. Non-current assets
were 12,904 million yen at the end of the first quarter, down 217 million yen from the end of the previous
fiscal year. This was mainly because of decreases of 71 million yen in property, plant and equipment and 134
million yen in investment securities.
As a result, total assets increased 1,793 million yen from the end of the previous fiscal year to 47,104 million
yen.
Liabilities
Current liabilities at the end of the first quarter were 14,939 million yen, up 1,222 million yen from the end of
the previous fiscal year. This was mainly due to increases of 404 million yen in electronically recorded2

IWAKI CO.,LTD. (6237) Financial Results for the First Quarter of FY3/24

obligations-operating and 1,182 million yen in other current liabilities primarily resulting from reclassification
to other current liabilities from provision for bonuses of which amounts to be paid were finalized, while there
was a decrease of 647 million yen in provision for bonuses. Non-current liabilities were 2,544 million yen at
the end of the first quarter, down 63 million yen from the end of the previous fiscal year. This was mainly due
to a decrease of 77 million yen in long-term borrowings.
As a result, total liabilities increased 1,159 million yen from the end of the previous fiscal year to 17,484
million yen.
Net assets
Net assets at the end of the first quarter were 29,619 million yen, up 634 million yen from the end of theprevious fiscal year. There were increases of 475 million yen in retained earnings and 147 million yen inforeign currency translation adjustment.
Consequently, the capital adequacy ratio was 62.5% (63.6% at the end of the previous fiscal year).
(3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements
We maintain the first-half and full-year consolidated earnings forecasts that were disclosed in the “Summary ofConsolidated Financial Results for the Fiscal Year Ended March 31, 2023” dated May 12, 2023.

3

IWAKI CO.,LTD. (6237) Financial Results for the First Quarter of FY3/24

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/23(As of Mar. 31, 2023)(Thousands of yen)First quarter of FY3/24(As of Jun. 30, 2023)

AssetsCurrent assets
Cash and deposits

8,927,985

10,089,060

Notes and accounts receivable-trade, and contract assets

7,010,044

7,707,038

Electronically recorded monetary claims-operating

4,497,381

4,533,191

Merchandise and finished goods

5,650,511

5,567,740

141,397291,793

Work in process
Raw materials and supplies

5,228,772

5,293,733

Other798,971795,949

Allowance for doubtful accounts(67,781)(79,352)

32,187,283

34,199,154

8,144,787

8,187,804(4,202,592)(4,275,588)

Buildings and structures, net

3,942,195

3,912,216

Machinery, equipment and vehicles

3,496,770

3,493,850(2,997,027)(3,013,616)

499,743

480,234

2,276,945

2,298,832(1,902,462)(1,929,215)

374,483

369,617

1,049,205

1,051,359

346,955

309,805(199,803)(169,981)

Leased assets, net

147,151

139,824Construction in progress

42,14858,308

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment

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
Accumulated depreciation
Other, net
Total property, plant and equipment

760,975

730,025(379,543)(376,383)

381,432

353,641

6,436,360

6,365,201

Intangible assets
Goodwill

2,811,839

2,766,431

Trademark right

19,672

16,970Other

636,481624,650

3,467,992

3,408,052

Investment securities

1,397,352

1,263,170

Deferred tax assets

655,155

645,630Retirement benefit asset

789,245794,310

Other

376,774

428,573

3,218,528

3,131,683

13,122,881

12,904,938

45,310,164

47,104,092

Total intangible assets
Investments and other assets

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

4

IWAKI CO.,LTD. (6237) Financial Results for the First Quarter of FY3/24

FY3/23(As of Mar. 31, 2023)(Thousands of yen)First quarter of FY3/24(As of Jun. 30, 2023)

Liabilities
Current liabilities
Notes and accounts payable-trade

3,687,101

3,587,573

Electronically recorded obligations-operating

4,307,453

4,711,617

Short-term borrowings

1,170,500

1,461,039

Current portion of long-term borrowings

155,000

155,000

Lease liabilities

116,468

118,475

Income taxes payable

331,446

588,010Contract liabilities

652,603776,318

Provision for bonuses

1,203,618

555,740

Provision for bonuses for directors (and other officers)

325,307

34,125

Provision for product warranties

100,995

102,178

Other

1,666,901

2,849,895

Total current liabilities

13,717,396

14,939,976

1,167,500

1,089,999

118,987

106,507

Non-current liabilities
Long-term borrowings
Lease liabilities
Retirement benefit liability

82,552

84,285

Asset retirement obligations

222,551

222,8211,016,606

1,041,246

Other
Total non-current liabilities
Total liabilities

2,608,199

2,544,860

16,325,595

17,484,836

1,044,691

1,044,691

Net assets
Shareholders’ equity
Share capital
Capital surplus

674,127

674,127

Retained earnings

25,671,771

26,147,564

Treasury shares(519,765)(519,765)

Total shareholders’ equity

26,870,823

27,346,616

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5

530

1,431

1,150,486

1,297,978817,833

792,129

1,968,850

2,091,539

144,895

181,099

28,984,569

29,619,256

45,310,164

47,104,092

IWAKI CO.,LTD. (6237) Financial Results for the First Quarter of FY3/24(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Three-month Period)First three months of FY3/23(Apr. 1, 2022 – Jun. 30, 2022)(Thousands of yen)First three months of FY3/24(Apr. 1, 2023 – Jun. 30, 2023)

Net sales

8,390,649

11,107,826

Cost of sales

5,434,470

6,836,681

Gross profit

2,956,179

4,271,145

Selling, general and administrative expenses

2,211,416

2,819,308

744,763

1,451,836

96

6,062

Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using
equity method
Foreign exchange gains

16,90319,053

299,463

208,550

92,21472,299Other

14,47253,720Total non-operating income

423,151359,686

Interest expenses

5,854

19,695

Commission expenses
Loss on amortization of restricted stock
remuneration
Expenses related to deferred compensation plan

1,996

1,871

406

-

-

6,515

Other

1,489

1,184

Total non-operating expenses

9,748

29,267

1,158,166

1,782,255

2,336

1,241

Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sale of investment securities
Other
Total extraordinary income

208

-

2,544

1,241

147

1,249

-

55

Extraordinary losses
Loss on retirement of non-current assets
Loss on sale of non-current assets
Total extraordinary losses

147

1,305

1,160,562

1,782,191

Income taxes

182,123

523,381

Profit978,438

1,258,809

4,361

35,985974,077

1,222,824

Profit before income taxes

Profit attributable to non-controlling interests
Profit attributable to owners of parent

6

IWAKI CO.,LTD. (6237) Financial Results for the First Quarter of FY3/24

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)(Thousands of yen)First three months of FY3/23 First three months of FY3/24(Apr. 1, 2022 – Jun. 30, 2022) (Apr. 1, 2023 – Jun. 30, 2023)
Profit978,438

1,258,809

(701)

927

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

369,383

142,038

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method(27,524)(25,704)

112,099

7,424

Total other comprehensive income

453,256

124,685

1,431,695

1,383,495

1,425,572

1,345,514

6,122

37,980Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests

7

IWAKI CO.,LTD. (6237) Financial Results for the First Quarter of FY3/24(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements
Calculation of tax expense
At Iwaki and certain consolidated subsidiaries, the tax expenses were calculated by first estimating theeffective tax rate after the application of tax effect accounting with respect to profit before income taxes during
the fiscal year, and multiplying that rate by the quarterly profit before income taxes.

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.

8