November 14, 2023

Summary of Consolidated Financial Results
for the Second Quarter of Fiscal Year Ending March 31, 2024
(Six Months Ended September 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:
November 14, 2023
Scheduled date of payment of dividend:
December 1, 2023
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:Yes (for institutional investors and analysts)

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

1. Consolidated Financial Results for the Second Quarter Ended September 30, 2023
(April 1, 2023 – September 30, 2023)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Million yen% Million yen% Million yen% Million yen%
Six months ended Sep. 30, 2023
2,805
136.6
3,270
48.3
2,188 (26.7)
22,436 26.0
Six months ended Sep. 30, 2022
1,185
12.0
2,205
44.6
2,987 150.7
17,810 14.3
Note: Comprehensive income (million yen) Six months ended Sep. 30, 2023:
3,274 (down 15.8%)
Six months ended Sep. 30, 2022:
3,890 (up 166.9%)
Diluted net income per
Net income per share
share
Six months ended Sep. 30, 2023
Six months ended Sep. 30, 2022

Yen

Yen

99.46
136.19-(2) Consolidated financial position
Total assets
Net assets
Capital adequacy ratio
Million yen
Million yen%
As of Sep. 30, 2023
49,241
31,525
63.6
As of Mar. 31, 2023
45,251
28,86963.4
Reference: Owner’s equity (million yen)
As of Sep. 30, 2023: 31,307
As of Mar. 31, 2023: 28,706
Note: The provisional accounting treatment for a business combination has been finalized in the second quarter of the fiscal year
ending March 31, 2024. All figures for the fiscal year ended March 31, 2023 reflect the finalized figures.

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
21.00

-

34.00

61.00

-

27.00

48.00

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
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 Sep. 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 Sep. 30, 2023:

410,761 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2023:

22,007,733 shares

Six months ended Sep. 30, 2022:

21,938,026 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
Iwaki plans to hold a quarterly financial results meeting for institutional investors and analysts on Monday, November 27, 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 the Second 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 Six-month Period

6

Quarterly Consolidated Statement of Comprehensive Income
For the Six-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

Business Combinations

8

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

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first half of the current fiscal year, capital expenditures showed signs of rebound in Japan, earnings
at companies were strong and there are expectations for the economy to remain healthy. However, the outlook
for the Japanese economy remains uncertain because of the risk of a downturn caused by a global economic
decline due to worldwide monetary tightening, the possibility of slowing economic growth in China and otherreasons.
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 speed up various measures for achieving 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.”
Due to these activities and the contributions to sales and earnings of subsidiaries in China newly consolidated
in the fourth quarter of the previous fiscal year, results of operations in all market categories were strong. In
the medical equipment category, sales significantly increased 45.7% to 3,849 million yen with growth backed
mainly by sales to customers in China . Sales in the water treatment category increased 24.6% to 5,175 million
yen and sales in the semiconductor/liquid crystal category increased 22.0% to 4,335 million yen. These three
categories accounted for most of the growth of first half sales and earnings.
Sales were strong in all regions except Asia. Sales in Japan increased 12.0% to 10,373 million yen because ofhigher sales primarily in the medical equipment category. Sales in the United States rose 22.5% to 3,415
million yen as a result of the continued strong performance of the water treatment category. In Europe, sales
increased 29.2% to 2,794 million yen mainly because of higher sales in the chemicals category. In Taiwan,
sales decreased 1.9% to 1,523 million yen mainly because sales continue to be sluggish in thesemiconductor/liquid crystal and surface treatment equipment categories. Sales in China increased 164.5% to
3,365 million yen due to the contribution of subsidiaries in China and big increases in sales primarily in thesemiconductor/liquid crystal and medical equipment categories.
All product categories performed well. There was double-digit growth in the core magnetic pump and metering
pump categories. Furthermore, sales of rotary displacement pumps, used mainly in medical equipment, wereup 58.1% to 1,436 million yen.
As a result, consolidated net sales increased 26.0% to 22,436 million yen.
Operating profit increased 136.6% from one year earlier to 2,805 million yen. This was the result of thecontribution of subsidiaries in China newly consolidated in the fourth quarter of the previous fiscal year andsales growth at other subsidiaries. Ordinary profit was up 48.3% to 3,270 million yen mainly due to a decreasein share of profit of entities accounted for using the equity method in non-operating income following theconsolidation of subsidiaries in China and a decrease in foreign exchange gains. Profit attributable to ownersof parent decreased 26.7% to 2,188 million yen because earnings in the second quarter of the previous fiscal
year included a gain on step acquisitions, which is extraordinary income.
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 second quarter of the current fiscal year were 36,052 million yen, up 3,865
million yen from the end of the previous fiscal year. This was mainly due to increases of 1,489 million yen in
cash and deposits, 667 million yen in notes and accounts receivable-trade, and contract assets, 887 million yen
in merchandise and finished goods and 309 million yen in electronically recorded monetary claims-operating.
Non-current assets were 13,188 million yen at the end of the second quarter, up 124 million yen from the endof the previous fiscal year. This was mainly because of increases of 66 million yen in investment securities and63 million yen in goodwill.

2

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

As a result, total assets increased 3,989 million yen from the end of the previous fiscal year to 49,241 million
yen.
Liabilities
Current liabilities at the end of the second quarter were 15,107 million yen, up 1,390 million yen from the endof the previous fiscal year. This was mainly due to increases of 585 million yen in income taxes payable, 461
million yen in electronically recorded obligations-operating and 305 million yen in notes and accounts
payable-trade. Non-current liabilities were 2,608 million yen at the end of the second quarter, down 56 million
yen from the end of the previous fiscal year. This was mainly due to a decrease of 77 million yen in long-termborrowings.
As a result, total liabilities increased 1,333 million yen from the end of the previous fiscal year to 17,715
million yen.
Net assets
Net assets at the end of the second quarter were 31,525 million yen, up 2,656 million yen from the end of theprevious fiscal year. There were increases of 1,441 million yen in retained earnings and 1,060 million yen inforeign currency translation adjustment.
Consequently, the capital adequacy ratio was 63.6% (63.4% at the end of the previous fiscal year).
(3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements
We maintain the consolidated earnings forecasts announced on May 12, 2023.

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IWAKI CO.,LTD. (6237) Financial Results for the Second 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)
Second quarter of FY3/24(As of Sep. 30, 2023)

AssetsCurrent assets
Cash and deposits

8,927,985

10,417,178

Notes and accounts receivable-trade, and contract assets

7,010,044

7,678,010

Electronically recorded monetary claims-operating

4,497,381

4,806,523

Merchandise and finished goods

5,650,511

6,537,947

141,397

206,205

Work in process
Raw materials and supplies

5,228,772

5,467,586

Other

798,971

1,012,611

Allowance for doubtful accounts(67,781)(73,472)

32,187,283

36,052,590

8,144,787

8,306,414(4,202,592)(4,375,734)

Buildings and structures, net

3,942,195

3,930,679

Machinery, equipment and vehicles

3,496,770

3,599,534(2,997,027)(3,084,051)

499,743

515,483

2,276,945

2,382,180(1,902,462)(1,980,847)

374,483

401,333

1,049,205

1,057,317

346,955

311,526(199,803)(167,761)

Leased assets, net

147,151

143,765

Construction in progress

42,14881,697

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

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

Other

760,975

763,397(379,543)(401,838)

381,432

361,559

6,436,360

6,491,835

2,345,822

2,409,358

19,672

15,356

Other

1,084,045

886,729

Total intangible assets

3,449,539

3,311,444

Investment securities

1,397,352

1,464,034

Deferred tax assets

615,044649,205

Retirement benefit asset

789,245798,046

Other

376,774

474,428

3,178,417

3,385,714

13,064,318

13,188,994

45,251,601

49,241,585

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

Investments and other assets

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

4

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

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

Liabilities
Current liabilities
Notes and accounts payable-trade

3,687,101

3,992,411

Electronically recorded obligations-operating

4,307,453

4,769,196

Short-term borrowings

1,170,500

1,297,583

Current portion of long-term borrowings

155,000

155,000

Lease liabilities

116,468

124,275

Income taxes payable

331,446

916,459

Contract liabilities

652,603

731,519

Provision for bonuses

1,203,618

1,203,518

Provision for bonuses for directors (and other officers)

325,30764,116

Provision for product warranties

100,995

103,738

Other

1,666,901

1,749,648

Total current liabilities

13,717,396

15,107,467

1,167,500

1,089,999

118,987

104,744

Deferred tax liabilities

56,55924,199Retirement benefit liability

82,552

91,263

Non-current liabilities
Long-term borrowings
Lease liabilities

Asset retirement obligations

222,551

223,091

Other

1,016,606

1,074,844

Total non-current liabilities

2,664,758

2,608,143

16,382,155

17,715,611

Share capital

1,044,691

1,044,691

Capital surplus

674,127

713,604

Retained earnings

25,531,082

26,972,905

Treasury shares(519,765)(411,088)

Total shareholders’ equity

26,730,134

28,320,112

530

2,499

Foreign currency translation adjustment

1,157,911

2,218,734

Remeasurements of defined benefit plans

817,833

766,424

1,976,275

2,987,658

Total liabilities
Net assets
Shareholders’ equity

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

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5163,036

218,202

28,869,446

31,525,973

45,251,601

49,241,585

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

Net sales

17,810,912

22,436,148

Cost of sales

11,838,102

13,510,713

Gross profit

5,972,809

8,925,435

Selling, general and administrative expenses

4,787,070

6,120,374

Operating profit

1,185,738

2,805,060

661

19,114Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using
equity method
Foreign exchange gains

16,90319,053

730,573

351,892

249,41169,452

Other

43,19569,6481,040,746

529,161Interest expenses

13,377

41,470Commission expenses
Loss on amortization of restricted stock
remuneration
Expenses related to deferred compensation plan

4,006

3,756

406

-

-

15,663

Total non-operating income
Non-operating expenses

Other

2,893

2,851

Total non-operating expenses

20,684

63,7412,205,801

3,270,480

3,869

2,555

1,297,060

-

229

-

1,301,158

2,555

707

1,268

Ordinary profit
Extraordinary income
Gain on sale of investment securities
Gain on step acquisitions
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sale of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

6

-

55

707

1,323

3,506,251

3,271,712

505,133

1,016,329

3,001,118

2,255,382

13,341

66,5282,987,776

2,188,854

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

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)(Thousands of yen)First six months of FY3/23
First six months of FY3/24(Apr. 1, 2022 – Sep. 30, 2022) (Apr. 1, 2023 – Sep. 30, 2023)
Profit3,001,118

2,255,382(1,796)

1,732

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

655,221991,093

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method(55,049)(51,409)291,309

77,632

Total other comprehensive income

889,685

1,019,048

3,890,804

3,274,431

3,873,472

3,200,237

17,332

74,194Comprehensive 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 Second 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.
Business Combinations
Finalization of provisional accounting treatment of business combination
In the previous fiscal year, a provisional accounting treatment was used for the acquisition of IWAKI Pumps
Co., Ltd. and IWAKI Pumps (Shanghai) Co., Ltd. on September 30, 2022. This treatment was finalized in thesecond quarter of the current fiscal year.
Due to the finalization of the provisional accounting treatment, comparative information included in the firsthalf consolidated financial statements reflects a significant revision of the initial acquisition cost allocation.
As a result, provisional goodwill of 2,365,446 thousand yen decreased 515,141 thousand yen to 1,850,305
thousand yen due to the finalized accounting treatment. This decrease in goodwill was due to increases of
687,421 thousand yen in other under intangible assets, 146,460 thousand yen in deferred tax liabilities and25,818 thousand yen in non-controlling interests.
The result was decreases of 466,017 thousand yen in goodwill, 40,110 thousand yen in deferred tax assets and140,689 thousand yen in retained earnings, and increases of 447,563 thousand yen in other under intangible
assets, 56,559 thousand yen in deferred tax liabilities, 7,425 thousand yen in foreign currency translation
adjustment and 18,140 thousand yen in non-controlling interests at the end of the previous fiscal year.

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.

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