Results of Operations for theFirst Half of the Fiscal Year Ending March 31,
2022 (FY3/22)
November 12, 2021

IWAKI CO.,LTD.
Stock code: 6237
Trade name: Iwaki Pump

Contents

I.

Summary of 1H FY3/22 Financial Results

II. Outlook for FY3/22
III. Medium-term Management Plan
Business Development and Growth

IV. Appendix

・・・・P 3

・・・・P 15
・・・・P 24
・・・・P 30

2

I. Summary of 1H FY3/22 Financial Results3

1

Financial Summary

Record-high first half sales backed by strong semiconductor/liquid crystal industry investments
1H FY3/21

1H FY3/22

Amount(Millions of yen)Amount(Millions of yen)

Differences

YoY change

Net sales

13,15915,5802,420+18.4%

Gross profit(Gross margin)

4,470(34.0%)

5,267(33.8%)

796+17.8%

Operating profit(Operating margin)711(5.4%)

1,058(6.8%)

346+48.7%

935

1,525

590

+63.1%

Profit attributable to owners ofparent

1,068

1,191

122

+11.5%Net income per share (Yen)

48.50

54.36

5.85

+12.1%

Ordinary profit

Exchange rate
(average)

USD/JPY (Yen)108.25107.82

EUR/JPY (Yen)

119.34129.884

Sales and Earnings Highlights

2

1

Sales: Record-high 1H sales of ¥3,053 million in the semiconductor/liquid crystal category

 Strong sales in all categories except medical equipment, resulting in sales growth of ¥2,420 million from one year earlier.
 2Q semiconductor/liquid crystal category sales were a record-high ¥1,566 million.
 Only medical equipment category sales were down, the result of lower customers’ production of equipment due to thesemiconductor shortage.
 Iwaki Nordic Group (ING) contributed ¥648 million to 1H FY3/22 sales (before eliminations for consolidation)
 Large volume of orders, mainly in the semiconductor/liquid crystal category. Concerns about negative effects of tight suppliesof resin for pneumatic drive pump components and of the difficulty of purchasing some parts due to overseas supply chain
problems due to the pandemic.

2Operating profit: Higher cost of sales and SG&A expenses due to consolidation adjustments, resulting in
an increase of ¥346 million

 As in the 1Q, differences in fiscal periods of consolidated subsidiaries had an effect on consolidation adjustments. Grossprofit increased 17.8% (¥796 million) to ¥5,267 million.
 SG&A expenses
・Expenses increased ¥287 million due to inclusion of ING in income statements.
・Expenses increased ¥41 million for ING goodwill amortization.
・ R&D expenses increased ¥87 million.
・ Expenses increased ¥30 million for exports/imports.
Total SG&A expenses increased ¥449 million due to the above factors.

3

Profit attributable to owners of parent: Equity-method profit increased but extraordinary income was
not as much as the previous fiscal year.

 Sales were higher in the semiconductor/liquid crystal market mainly in South Korea, Taiwan, Shanghai and Hong Kong.
 FY3/21 extraordinary income for a gain of ¥347 million due to the step acquisition of ING.

5

3 1H FY3/22 Major Effects of the COVID-19 Pandemic
Increasing concerns caused by logistics turmoil and about upcoming effects of supply chain problems
Sales activities(including maintenanceservices)

1Q

Japan

No effect on sales
activities
Restrictions on visiting
customers
2Q

1Q

Overseas

2Q

No effect on sales
activities
Restrictions on visiting
customers*Red indicates negative effects

Manufacturing andprocurement activities

Pandemic events

Major Iwaki actions

Visits to users for medical
equipment maintenance andother tasks restarted but
restrictions continued due to thestate of emergency• The third declaration of state of
emergency

No effect on manufacturing
activities
Concerns about purchasing
parts due to SE Asia lockdowns• Large volume of orders• Pandemic impact continued,
including restrictions on visiting
customers, delays in someprojects and other issues• The fourth declaration of state of
emergency• Started using telework• Staggered working
hours/Employee rotations
for office work
• Social distancing forbusiness activities• Rigorous healthmanagement program

No effect on manufacturing
activities
No negative effect involving
procurement activities on
manufacturing• Resumption of sales involving
projector cooling, a sector where
shipments were suspended• Continuation of global logistics
turmoil, mainly for shipments to
the U.S.
• Orders down because of the
Malaysia lockdown• Restrictions eased due to progresswith vaccinations• Lockdown continues as COVID-19
cases increase in Malaysia

No effect on manufacturing
activities
Higher cost of cargotransportation due to thecontainer shortage• Steady volume of orders, mainlyin the U.S. and Europe• Further deterioration of logistics
for overseas shipments• Slow recovery after end of the
Malaysia lockdown• Strict lockdowns continued in SE
Asia

No effect on manufacturing
activities
No negative effect involving
procurement activities on
manufacturing

Results of operations•• Started using telework• Employee rotations foroffice work
• Social distancing forbusiness activities• Rigorous healthmanagement program• COVID-19 preventive
measures based on
guidelines of countries
and regions

6

4

Net Sales and Operating Profit (Quarterly)

Sales are higher than before the pandemic and reached an all-time 2Q high.
Semiconductor/liquid crystal 2Q sales were higher than in the 1Q and total 2Q sales were higher
than in FY3/21 4Q.
(Millions of yen) FY3/20

FY3/21

7,962

8,000
7,303

7,000

7,218

(Millions of yen)

FY3/22

7,977

1,600

7,603

7,331
7,040

6,782

1,400

6,736

Net
sales
(left)
（左目盛）
売上

6,423

6,000

1,200
957

5,000
839

789

4,000

1,000

Operating profit(right)
営業利益
（右目盛）

（右目盛）
Ordinary
profit(right)
経常利益

800

706
627

702

3,000
454

678

521

551

2,000

521

338

683

600

447

413

400
295

1,000

568

416

374
315

200

0

0
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q-4Q

7

5

Gross Margin and SG&A Expense Ratio (Quarterly)

The 1Q gross margin was low due to consolidation adjustments caused by differences in consolidated
subsidiary financial periods.
The 2Q gross margin recovered as magnetic drive pump sales increased, although pneumatic drive pumpsales were down.
(Millions of yen)

2,400

FY3/20FY3/21

FY3/22

48%
46%

2,173

2,200

2,102

2,064

2,000

1,945

1,942

1,945

44%

2,106

42%

1,974

40%

1,859

1,800

1,600

33.7%

Gross margin
売上総利益率

38%
1,784

35.1%

SG&A expenses
販管費

36%
35.8%

34.6%
33.6%

33.7%

34.3%

34%

35.0%

33.8%

SG&A expenses
ratio

販管費率

32%

32.6%

30%
1,400

29.3%

28.7%
26.9%

28%

29.3%
27.8%

27.3%

26.5%

27.7%

25.5%

1,200

26%

26.4%

24%
22%

1,000

20%
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q-4Q

8

6

Market Overview for Product Categories

Sold in manymarkets

Major pump
applications

Semiconductor/
liquid crystal

Semiconductor
production
equipment, etc.

Medicalequipment

Dialysis equipment
and clinical trial
equipment, etc.

Surface treatment
equipment

Printed circuit board
manufacturing
equipment, electronic
component
manufacturing, etc.

Chemicals

Liquid chemical
manufacturing, etc.

Water treatment

Water purification
plant,
wastewater
treatment, cooling
towers, etc.

New energy

Renewable energy,
rechargeable battery
production, etc.

Others (Food,paper, others)

Food cleansing,cooling applications,etc.

Magnetic drive
pumps

Metering
pumps

Pneumatic
drive pumps* A filled circle means major pumps in each market.

Rotarydisplacementpumps

Air pumps

Systems
products

9

7

Profitability of Products
ProfitabilityHigh

Net sales (Millions of yen) Upper bar: 1H FY3/21; Lower bar: 1H FY3/22
2,482

Metering pumps

2,636

4,323

Magnetic drivepumps

Air pumps

Rotarydisplacement
pumps

Low

Pneumatic drive
pumps

5,231

785
735

1,096

Pneumatic drive pump sales increased due to higher sales in thesemiconductor/liquid crystal category. Higher sales of magnetic
drive pumps, which have a high profit margin, contributed toconsolidated earnings.

1,019

1,188
2,062

*Excluding systems products, purchased
products and other10Market Category Sales

8

In the semiconductor/liquid crystal category, strong sales to semiconductor production machinery companies in Japan and othercountries. In the medical equipment category, demand is recovering, mainly in Japan for clinical trial equipment. However, total
sales were down in this category as the overseas semiconductor shortage forced customers to reduce output of medical equipment.
Demand is expected to recover when semiconductor supplies increase.
(Millions of yen)

FY3/20FY3/21

FY3/22

8,000

1,594
1,691

6,000

1,718

1,846

1,494

1,730

1,565
1,510

5,000

4,000

857
823

932
1,012

1,357
1,259

1,294

2,000

1,000

689
549

738
670
578

212

232

1,753

1,848

1Q

2Q

638

1,751

1,775

3Q

4Q

142

1,135
1,138

1,000

681
703

715

543
103

567
143

1,523

1,460

1Q

2Q

551

675
282

201

1,889

748

761

650

671

264
2,178

YoY change
(%)

Water
水処理
treatment

3,316

240

+7.8%

Semiconductor
半導体・液晶/liquid
crystal

3,053

1,124

+58.3%

Medical
医療機器
equipment

2,317

-75

-3.1%

Chemicals
化学

1,510

91

+6.4%

Surface
表面処理装置treatment
equipment

1,321

210

+19.0%

New
energy新エネルギー451

204+82.5%

3,609

625+20.9%

1,178

700

1,108

776

555
147

1,566

984
916

1,218
1,283

3,000

1,179
1,486

1,081

YoY
change(Millionsof yen)

1,722

1,809

7,000

1H FY3/22
sales(Millions of
yen)

186

1,720

1,889

1Q

2Q

Others
その他

0

3Q

4Q

3Q-4Q

11

Product Category Sales

9

Big increase in pneumatic drive pumps in the semiconductor/liquid crystal market.
Growth in sales of core magnetic drive pumps for the semiconductor/liquid crystal market.
(Millions of yen)

FY3/20FY3/21

FY3/22

1H FY3/22 sales(Millions of
yen)

YoY
change(Millionsof yen)YoY change(%)

Magnetic drive
マグネットポンプ
pumps

5,231

908

+21.0%

Metering
定量ポンプ
pumps

2,636

153

+6.2%

Pneumatic
drive
空気駆動ポンプ
pumps

2,062

874

+73.6%

Rotary
回転容積ポンプ
displacement
pumps

1,019

-77

-7.0%

8,000

7,000
2,465
2,431

6,000

2,454

2,535

2,340
2,255
2,210

2,553

2,112

5,000

1,389
1,258

4,000

1,346

1,308

1,381
1,251

1,197
463

3,000

2,000

1,000

2,695

569
426

650

624

417

359
273

353

522

701

376
337
633

1,340
1,231

829

495
623

734

668

669

562

475

402

519

373

547

549

490

427
223

358
255

567

634

763

1,327

977

Air
pumps
エアーポンプ

735

-49

-6.4%

528

Systems
システム製品
products

735

256+53.5%

Purchased
仕入商品
products

1,334

133

+11.1%

Others
その他

1,824

222

+13.9%

1,085
491

358

401
307

632

644

729

950

879

944

4Q

1Q

2Q

825

942

849

863

839

761

946

1Q

2Q

3Q

4Q

1Q

2Q

3Q

376
322
603

413
731

0
3Q-4Q

12

10

Regional Sales

Semiconductor/liquid crystal drives sales growth with strength in Japan and other countries.
Orders recovering in the U.S., mainly in the water treatment category. In Europe too, sales (excluding thecontribution of ING) are recovering.
(Millions of yen)

FY3/20FY3/21

FY3/22

1H FY3/22 sales(Millions ofyen)

YoY change(Millions ofyen)

YoY change
(%)

Japan
日本

8,703

844

+10.7%

米国
America

1,864

155

+9.1%

欧州
Europe1,831

684+59.7%

Asia
アジア

1,545

511

+49.4%

中国
China

964

-7

-0.8%

Others
その他

671

232

+53.0%

6,877

1,576

+29.7%

8,000

7,000

6,000
4,690

5,000

4,012

4,574

4,275

4,507

4,209

4,493

4,136

3,970
3,888

4,000

3,000

2,000

940
1,018

0

1,012

1,029

906

516

684
488

802

664

582

595

551

876

665

599

590

443

497

447
226

525
212

366
268

429
307

1Q

2Q

3Q

4Q

280
216

302
221

343
256

291
320

1Q

2Q

3Q

4Q

965

893
939

738

1,000

1,032

899

654

861

969

831

713

481

483

319

351

1Q

2Q

Overseas total(Overseas
sales ratio)(44.1%)

3Q-4Q

13

11

Capital Expenditures, R&D Expenses and Depreciation (Semi-annual)(Millions of yen)

FY3/20FY3/22

FY3/213100
3050(Millions of yen)

YoYchangeCapital
設備投資
expenditures

239

-139

R&D expenses
研究開発費

431

+87

減価償却費
Depreciation

346

+45

1H FY3/22 sales
500
460

450
412

400

379
354

350

343

346

344

323
305

301

300
250

431

424

244

239
224

200
150
100
50
0
2Q

4Q

2Q

4Q

2Q

4Q
14

II. Outlook for FY3/22

15

1

FY3/22 Forecast

Forecast a big sales increase despite concerns about some procurement activities and the container shortage
FY3/21

FY3/22 (Revised forecast) *Announced on Oct. 15, 2021

Amount(Millions of yen)Amount(Millions of yen)

Net sales

28,162

31,459Gross profit(Gross margin)

9,703(34.5%)
1,706(6.1%)

10,598(33.7%)
1,836(5.8%)

Ordinary profit

2,222

Profit attributable to ownersof parent

Differences

YoY change

Reference: FY3/22(Initial forecast)Amount(Millions of yen)

3,296

+11.7%

895

+9.2%

130

+7.6%

2,634

412

+18.6%

2,243

2,091

2,072

-18

-0.9%

1,831

Net income per share (Yen)

94.90

94.60

-0.3

-0.3%

83.78

Return on equity (ROE)

9.7%

9.2%

(-0.5pt)

8.2%

Operating profit(Operating margin)

Exchange rate
(average)-

30,297
10,364(34.2%)
1,752(5.8%)

USD/JPY (Yen)106.77(2H estimates) 110.00(Estimates)

EUR/JPY (Yen)

121.88(2H estimates) 130.00(Estimates)

104.00125.0016

21Highlights of FY3/22 Forecast

Sales: Forecast slower 2H sales growth due to parts shortages and other concerns

 Concerns about effects of tight supplies of resin for pneumatic drive pump components and difficulty inpurchasing some parts caused by pandemic-related overseas supply chain problems
 Concerns about delivery delays overseas, mainly to U.S. customers, because of the container shortage
 Orders are currently very strong; expect slower 2H sales growth but FY3/22 sales to exceed the original
forecast

2

Operating profit: Forecast ¥130 million increase as production, shipping, parts and otherexpenses increase Manufacturing expenses (cost of sales) expected to increase mainly due to higher cost of procurement of
manufacturing materials, logistics and rebuilding the manufacturing system
 Forecast higher SG&A expenses because of higher R&D and cargo transport expenses
 Different length of consolidation of ING in FY3/21 and FY3/22
FY3/21: Consolidated in 3Q-4Q
FY3/22: Consolidated in all four quarters
Profit attributable to owners of parent: Forecast a decrease despite the continuation of growth inequity-method profit3 Equity-method profit expected to be high as in the 1H
 Lower extraordinary income due to the ¥381 million gain involving the step acquisition of ING in FY3/21
 Increase in income taxes due to difference in FY3/21 tax rate and estimated FY3/22 tax rate17

3

FY3/22 Forecast – Factors Affecting Profitability
Effect of ¥1 exchange rate change

USD

EUR

Net sales

51 million yen

27 million yen

Operating profit

16 million yen

11 million yen-117(Millions of yen)-647

FY3/21
Operating profit

Increase/decreasein sales, change incost of sales ratio

Gross profit
Foreignexchange impact

SG&A expenses
Foreignexchange impact

Increase/decrease in SG&A
expenses

FY3/22
Operating profit(Revised forecast)18

4

FY3/22 Market Environment Assumptions

Anticipate generally favorable market conditions, but possible negative effects of customers’difficulty procuring parts
Japan

Overseas

Priority markets
targeted for growth

Water treatment
market• Rising demand for remote control units as people work at
home• Growth of plant factories for food safety• Growth due to restart of projects delayed by COVID-19 andother reasons• Strong sales of equipment and systems using water
treatment membranes• Firm demand for disinfection applications

Medical equipment
market• Recovery in the clinical trial equipment sector (immunology
analyzers and biochemical analyzers) following last year’s
downturn is gaining momentum• Recovery in pump replacement demand for endoscopesterilization equipment from the 2Q• Recovery in maintenance/replacement demand in the dialysis
equipment sector• Slow sales in China of pumps for clinical trial equipment
sector (immunology analyzers and biochemical analyzers)
as companies continue to reduce output because ofdifficulties in procuring electronic components as in 1H

New energy market• Soft demand in the rechargeable battery market• Recovery in some demand for household fuel cell production
recovered due to start of projects• Firm demand in Asia as companies resume rechargeable
battery investments

Semiconductor/ liquid
crystal market• Strong demand for pumps used by semiconductor/liquid crystal
production equipment manufacturers• Consistently high level of capital expenditures involving
memory devices and foundries

Chemicals market• Firm demand related to development of value-added products• Rising demand resulting from resin recycling due toenvironmental restrictions and other reasons• Substantial investments in Europe and Asia by
manufacturers of rechargeable battery materials

Surface treatment
equipment market• Increasing demand for value-added electronic components for
5G, IoT and other applications• Sluggish sales for automotive devices as the semiconductor
shortage holds down automobile sales• Worldwide increase in demand for electronic
components used in automotive and ICT applications• Anticipate a large volume of capital expenditures
involving package substrates*Red indicates negative outlooks

19

5

FY3/22 Market Category Sales Revised Forecast

Big increase mainly in semiconductor/liquid crystal sales forecast because orders are well above theinitial forecast
FY3/22
Initial forecast

FY3/22
Revised forecast(Millions of yen)

(Millions of yen)

Differences

YoY change

Reference:
1H FY3/22 Results(Millions of yen)

Water treatment

6,962

7,120

157

+2.3%

3,316

Semiconductor/
liquid crystal

4,331

5,343

1,011

+23.3%

3,053

Medicalequipment

4,556

4,587

31

+0.7%

2,317

Chemicals

3,204

3,165

-38

-1.2%

1,510

Surface treatment
equipment

2,492

2,605

112

+4.5%

1,321

644

751

107

+16.6%

451

8,104

7,885

-219

-2.7%

3,609

30,29731,459

1,162

+3.8%

15,580New energy
Others
Total

20

6

FY3/22 Product Category Sales Revised Forecast

Based on market forecast revisions, revised the growth forecasts for magnetic drive and pneumatic
drive pumps associated with growing market categories
FY3/22
Initial forecast

FY3/22
Revised forecast(Millions of yen)

(Millions of yen)

Differences

YoY change

Reference:
1H FY3/22 Results(Millions of yen)

Magnetic drive pumps

9,918

10,477

558

+5.6%

5,231

Metering pumps

5,715

5,642

-72

-1.3%

2,636

Pneumatic drive
pumps

2,984

3,578

594

+19.9%

2,062

Rotary displacement
pumps

2,305

2,193

-111

-4.8%

1,019

Air pumps

1,795

1,654

-141

-7.9%

735

Systems products

1,260

1,457

197

+15.6%

735

Purchased products

2,683

2,712

28

+1.1%

1,334

Others

3,634

3,744

109

+3.0%

1,824

30,29731,459

1,162

+3.8%

15,580

Total

21

7

Return to Shareholders

Basic policy・Dividend payout ratio: more than 30%
・Steady distribution of dividends
(Yen)

40

Dividend per share

30.0%

30.0%

Dividend payout ratio (consolidated)

31.8%

35.00%

30.6%

30.1%
¥28.50*Announced on
Oct. 15, 2021

30

30.00%
25.00%

Dividend
increase, ¥3.0

20.00%
20
15.00%
27.53

28.90

30.50

29.00

25.50

Initialforecast

10

10.00%
5.00%

0

0.00%
FY3/18

FY3/19FY3/20FY3/21

Note: Dividends for FY3/18 are adjusted (with fractions after the hundredths place dropped) to reflect the
3-for-1 common stock split on July 1, 2018.

FY3/22(Revised forecast)22

8Return on Invested Capital (ROIC)

The goal is more growth of corporate value by using the ROIC as a key performance metric(Millions of yen)

30,00010.0%
9.0%

25,00020,00015,000

8.0%

6.1%
6.0%

7.0%

5.8%

6.0%

5.6%

5.0%
4.0%

10,000

3.0%
2.0%

5,000

1.0%
0

23,12525,036

FY3/21

FY3/22 (Revised forecast)Invested capital (Average for FY beginning/end)

Consolidated operating margin

0.0%
ROIC
23

III. Medium-term Management Plan
Business Development and Growth24

1Overview of the 10-Year Vision
Business development
and growth

Planting seeds
FY3/17

FY3/18

FY3/19FY3/20FY3/21

Reaping benefits
FY3/22

FY3/23

Consolidated sales

Numerical targets¥25.1 billion

9.2
15.9

¥28.0 billion¥29.1 billion¥28.6 billion¥28.1 billion(fct.)¥31.4 billion(fct.)¥33.8 billion

FY3/24(fct.)¥36.5 billion

15.4

17.4

FY3/25¥40.0 billion
20.0

Overseas
Japan

10.6

11.0

11.2

11.4

14.0

17.4

18.1

17.4

16.7

17.4

18.4

19.1

20.0

8.0%

7.4 %

6.1 %

(fct.)
5.8%(fct.)
8.4%(fct.)
10.8%

10.0%

Consolidated operating margin
5.8%

7.5%

Maintain over 10.0% level after FY3/25

Qualitative targets

To supply the world’s best products as All Iwaki– We will work together to supply the world’s best products, quality, value, and services –“Change & Challenge” is our stance for accomplishing this goal
– We will firmly establish a corporate culture of never being afraid of change and new challenges –25

2

Goals of the Medium-term Management Plan
Business Development and Growth
A growth strategy for increasing corporate value
as a company capable of sustained growth

Key themes and goals of the business development and growth phase
Themes for reaching the numerical targetsof the 10-year vision

Themes for management with the goal of
consistently increasing corporate value

1) Rebuild the manufacturing system

1) Drastic review of personnel systems2) Improve accuracy of production and sales
plans2) Renovate core IT systems3) Eliminate product defects and otherproblems

4) A commitment to CSR

3) Fully utilize the IoT4) Improve productivity in all aspects ofoperations
26

3

Goals of the Medium-term Management Plan
Progress Report (1)Specific initiatives for reaching the numerical targets of the 10-year vision
Key goals

Major activities

Rebuild the
manufacturingsystem• Identify issues involving global manufacturing operations• Use external warehouses for faster deliveries• Consider and implement shift to outsourced logistics tospecialize in manufacturing• Start a project for rebuilding the manufacturing system

Improve accuracyof production andsales plans• Establish frameworks for customer data sharing andcollaboration among different departments of Iwaki• Consider improving the accuracy of the plans for processapplications• Reduce the volume of shipments on hold by starting aforecasting system

Eliminate productdefects and otherproblems• Use theme-specific projects to eliminate defects• Completed two of three control items
Finished: Increase speed
Not yet finished: Chronic defects, joint maintenanceImproveproductivity in all
aspects ofoperations• Use external warehouses to open up space at factories andimprove factory operations• Use many types of business systems (customer management,
human resources and budget management, cost calculations
and robotic process automation)• Use assembly robots*Orange box: High priority goals

Current
progress

Upcoming actions〇• KD factory, standardization of manufacturing
quality• Further reduce time needed to deliver products• Cost reduction▲• Continue to strengthen the framework forcollaboration• More studies for improving accuracy of plans• Overseas market surveys (limited activities now
due to COVID-19)• Establish plan also incorporating a department
strategy△• Continue these projects• Eliminate chronic defects• Rigorous measures to prevent problems fromhappening again△• More IT systems for non-core business processes• Horizontal expansion of robot utilization• More efficient business operations for the entire
group• More synergies with the residual chlorine meterbusiness

Evaluation of current progress〇: Expect to accomplish goal/Progress as planned, △: Slightly behind schedule,▲: Behind schedule, ×: No progress27

4

Goals of the Medium-term Management Plan
Progress Report (2)Management that prioritizes sustained growth of corporate value
Current
progress

Upcoming actions△• Establish a detailed evaluation system• Shift from the current system to the newone

Renovate core IT
systems• Completed selections of IT systems and started a project for the
installation of these systems• Review all business process flows to prepare for the use of the
new core IT systems• Examined and developed all interfaces needed to start using the
new systems▲• One year delay; plan to start the new core
IT systems in FY3/24• Perform all tests needed to ensure areliable launch of the new systems

Fully utilize the IoT• Use the IoT for the use of water treatment controllers formonitoring and management services• Use robotic process automation to reduce man-hours needed forspecific tasks▲• Further develop the business model andmanufacturing

A commitment to
CSR• Supplying products in compliance with environmental laws andregulations(RoHS Directive, REACH and others)• Develop environmentally responsible products (highly efficient
products and others)• Employee training programs• Started using a carbon neutral electricity menu at the Saitama
Plant• Conducted many community and charitable activities (blood
donations, volunteer activities, etc.)▲• Fast actions for dealing with defensive
aspects of CSR, including risk management
for climate change, human rights and otheritems• Increase investments in human resources

Key goals
Drastic review of
personnel systems*Orange box: High priority goals

Major activities• Reviewed the system for employee performance evaluations• Reviewed the salary structure and wage curve

Evaluation of current progress〇: Expect to accomplish goal/Progress as planned, △: Slightly behind schedule,▲: Behind schedule, ×: No progress28

5

FY3/22–FY3/24 Targets
FY3/22 (plan)
Amount(Millions of yen)

FY3/23 (plan)YoY Change

Amount(Millions of yen)

FY3/24 (plan)YoY Change

Amount(Millions of yen)

YoY Change

Net sales

31,459+11.7%

33,841+7.6%

36,550+8.0%

Gross profit

10,598+9.2%

12,028+13.5%

13,315+10.7%

Operating profit

1,836

+7.6%

2,836

+54.5%

3,955+39.4%

Ordinary profit

2,634+18.6%

3,607+36.9%

4,725+31.0%

Profit attributable to owners ofparent

2,072

-0.9%

2,763

+33.3%

3,557+28.8%

1

Anticipate strong orders in FY3/22 and the following years in the semiconductor/liquid crystal category, wherecompanies are making very large investments. In Japan, forecast growth of almost 6% in FY3/23 and 4% in
FY3/24. Overseas, forecast growth of almost 10% in FY3/23 and 13% in FY3/24.

2

Expenses for large trade shows are expected in FY3/23. Forecast double-digit operating profit growth every year
after FY3/23 due to sales growth and other reasons. Expect the operating margin to improve from 5.8% to 8.4%
and 10.8%.

3Assume no change in equity-method profit. But expect higher sales and other factors to result in double-digit
growth every year of ordinary profit and profit attributable to owners of parent, just as for operating profit.
29

IV. Appendix

30

1

Change in Stock Market Listing

August 18, 2021

Company Name: IWAKI CO., LTD.
Representative: Shigeru Fujinaka, President
Stock code: 6237 (Tokyo Stock Exchange, First Section)
Contact: Makoto Inoue, Executive Officer, Senior General
Manager of Business Management Head OfficeTel: +81-3-3254-2931

Application Submitted for Prime Market Listing
On July 9, 2021, IWAKI CO., LTD. received from the Tokyo Stock Exchange the results of the preliminary
assessment concerning compliance with the listing standards of new market segments. This assessment
confirmed the compliance of IWAKI with the listing requirements of the new Prime Market.
Due to this confirmation, the IWAKI Board of Directors approved a resolution on August 18, 2021 to selectthe Prime Market Listing and submit an application to the Tokyo Stock Exchange for a Prime Market listing.

IWAKI plans to proceed with the application for election to the new market segment in accordance withthe schedule set by the Tokyo Stock Exchange.
IWAKI is committed to the strengthening of corporate governance, the sustained growth of sales andearnings and the medium- to long-term growth of corporate value. All activities for these goals are basedon the pledge of always being at the forefront of efforts to advance development in the global markets,
industries and communities where we operate while building trust with, and contributing to the happinessof everyone we interact with.

31

2Company Profile

Name

IWAKI CO., LTD.
A manufacturer of a broad line of chemical pumps

Establishment

April 10, 1956

Representative

Shigeru Fujinaka

Head office

2-6-6, Kanda Suda-cho, Chiyoda-ku, Tokyo

Capital1,044.69 million yen (as of the end of September 2021)

Number of
Employees

Consolidated: 994/Non-consolidated 766(as of the end of March 2021)

Business

Development, manufacture, purchase, sale and other activities forchemical pumps and pump controllers and other pump peripherals

Listing:First Section of the Tokyo Stock Exchange(Trade name: Iwaki Pump/Stock code: 6237)
32

3

Sales GrowthNon-consolidated Sales(Billions of yen)

300

Sales: ¥28.1 bn

4-month transitional fiscal
period (Nov. 20 to Mar. 31)

250

Sales: ¥22.2 bn

Consolidated sales

Operatingprofit: 9.8%

Pump department store strategy reaches
approximately the current level

200
150

First overseas basestarts operations

Start of pumpdepartment
store strategy

Semiconductor market products drive
growth → Total sales become
vulnerable to ups and downs of thesemiconductor market

Completion ofMiharu plant

100
Completion of
Saitama plant

50

Steady growth by
reducing reliance on thesemiconductor market

Pump department store
strategy results in growthalong with Japan’s economy

00
1970

1975

1980

1985

1990

1995

(Fiscal year)

2000

2005

2010

2015

2020 2021

33

4Chemical pumps

Chemical pumps are used for the transmission of chemicals andother substances
Unlike water pumps, chemical pumps are used for thetransmission of many types of liquids, including
sulfuric acid and other hazardous chemicals.

Chemical pumps must meet very high safety standards(No leaks)
34

5Strengths That Define Iwaki

1

A diverse lineup of products to meet ourcustomers’ requirements

2

Strong customer support backed by a global
production, sales and support infrastructure

3Able to create solutions using fluid control functions
centered on pumps
35

6

Strengths That Define Iwaki
A Large and Diverse Product Lineup

Size

More than 60 series of pump models and tens of thousands of models
A one-stop source of comprehensive solutions for a broad array of pumps

Pneumatic drive
RotaryMetering
Magnetic drive
pumps
displacement
pumps
pumps
pumps
Competitors
Company Company
Company
CompanyA
B
CD

Air pumps

Categories

36

7Strengths That Define Iwaki
Global Manufacturing Network

Annual capacity of around 800,000 units with the ability to make many models insmall quantities
Japan:
Small-lot production of many models and highly reliable quality assurance systems
Overseas: Five locations manufacture pumps using main parts (knock-down manufacturing), resulting in
efficiency for deliveries and inventories
Mainly large pumps

Saitama Plant(Sayama-shi, Saitama)

Germany

China
High-volume
productionof small pumps

TaiwanUSA

Miharu Plant

Australia(Miharu-cho, Tamura-gun,
Fukushima)
37

8Strengths That Define Iwaki
A Global Sales and Support Infrastructure

Branch office: 6
Sales office: 7
China

Japan

EuropeNorth America
Asia

South America
Australia

Total overseas
sales: 40.8%

China
6.3%

Others
3.6%

Asia
7.8%

Branch offices and sales offices in 13 major cities Japan in addition
to the head office
A worldwide sales and service network with 21 group companies in
15 countries

Europe
10.5%
USA
12.6%

Composition ofRegional Sales

Japan
59.2%

(FY3/21 consolidated results)

38

9Strengths That Define Iwaki
Solutions for Customers’ Needs

Iwaki uses pump and fluid control expertise to create solutions
that match the needs of every customer

Iwaki
Problems requiring solutions

Pumps

Needs

Users (Customers)

Fluid control expertise

Ideas for problems and other needs

Solutions39

Dedicated to remaining at the forefront of progress inorder to contribute to a broad range of progress and tothe happiness and wellbeing of people worldwide
40

Contact

For more information:
Corporate Planning Department,
Business Management Head Office,IWAKI CO.,LTD.
E-mail: ir@iwakipumps.jp
Operating hours: 9:00 to 17:30(Except Saturdays, Sundays, public holidays, and other business holidays）

41

Disclaimer and Precautions Concerning Forward-looking Statements
 This presentation was prepared by IWAKI to provide information to investors about business operations.
 Information in this presentation is based on reasonable judgments by IWAKI using generally accepted viewsof economic, social and other factors as of November 12, 2021. This information may have to be revised
without prior notice in the event of a change in the business climate or some other event.
 The information in this presentation includes forward-looking statements. These statements are current
outlooks, forecasts and assumptions that include risk and incorporate uncertainties that may cause actual
performance to differ from these statements.
 Risk factors and other uncertainties include but are not limited to items related to the Japanese and global
economies, such as changes in business and market conditions and in interest rates and exchange rates.
 IWAKI has no obligation to update or revise the forward-looking statements in this presentation even if thereis new information, a significant event or some other reason for a change.
 This document has been translated from the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail.
 IWAKI assumes no responsibility for this translation or for direct, indirect or any other forms of damages
arising from the translation.

42