February 14, 2023

Summary of Consolidated Financial Results
for the Third Quarter of Fiscal Year Ending March 31, 2023
(Nine Months Ended December 31, 2022)[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 filing of Quarterly Report:
February 14, 2023
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:None(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Third Quarter Ended December 31, 2022
(April 1, 2022 – December 31, 2022)(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%
27,126
13.4
1,889
(2.9)
3,444
32.1
4,024
96.1
Nine months ended Dec. 31, 2022
23,927
18.5
1,946
89.4
2,608
88.6
2,052
46.5
Nine months ended Dec. 31, 2021
Note: Comprehensive income (million yen) Nine months ended Dec. 31, 2022: 5,173 (up 120.8%)
Nine months ended Dec. 31, 2021: 2,342 (up 72.9%)
Diluted net income per
Net income per share
share
Nine months ended Dec. 31, 2022
Nine months ended Dec. 31, 2021

Yen

Yen

183.3593.65-(2) Consolidated financial position
Total assets
Net assets
Capital adequacy ratio
Million yen
Million yen%
As of Dec. 31, 2022
44,37829,45966.1
As of Mar. 31, 2022
37,96325,251
66.3
Reference: Owner’s equity (million yen)
As of Dec. 31, 2022: 29,320
As of Mar. 31, 2022: 25,177

2. Dividends
1Q-end2Q-endYen

Fiscal year ended Mar. 31, 2022
Fiscal year ending Mar. 31, 2023
Fiscal year ending Mar. 31, 2023 (forecasts)
Note: Revisions to the most recently announced dividend forecasts: None

Dividend per share
3Q-endYear-end

Total

Yen

Yen

Yen

Yen

12.00
27.00

-

21.50

33.50

33.00

60.00

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2023 (April 1, 2022 – March 31, 2023)(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
37,331
15.1
2,343
9.5
4,025
34.5
4,383
82.9
199.66
Note: Revisions to the most recently announced consolidated earnings forecasts: None

* 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 8 “2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly Consolidated
Financial Statements, Changes in Consolidated Subsidiaries during the Period” for details.

(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:

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

None4) Restatements:

None

Note: Please refer to page 8 “2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly Consolidated
Financial Statements, Changes in Accounting Policies” for details.

(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Dec. 31, 2022:

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 Dec. 31, 2022:

519,393 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2022: 21,949,193 shares

Nine months ended Dec. 31, 2021:

21,915,850 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(February 14, 2023).

IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/23

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 Nine-month Period

6

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

7(3) Notes to Quarterly Consolidated Financial Statements

8

Going Concern Assumption

8

Significant Changes in Shareholders’ Equity

8

Changes in Consolidated Subsidiaries during the Period

8

Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

8

Changes in Accounting Policies

81

IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/23

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
The Japanese economy recovered slowly, and capital expenditures increased during the first nine months of thecurrent fiscal year. The order backlog has been consistently high despite the risk of an econ omic downturn inother countries as interest rates increase worldwide. However, the outlook for the economy remains uncertain
because of concerns about the impact on the earnings of companies of the rising cost of raw materials,
restrictions on the supply of many items and another upturn of the pandemic in China.
Iwaki has been taking many actions in Japan to improve its corporate value based on the core policy of“winning by improving customer satisfaction.” Overseas, there were activities encompassing 21 affiliatedcompanies in 15 countries to increase sales. The Iwaki Group continued to accelerate the implementation ofvarious 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.”In the water treatment category, sales increased 29.6% from one year earlier to 6,632 million yen as sales
remained high in the United States. The semiconductor/liquid crystal category remained strong and sales
increased 15.7% to 5,381 million yen. These two categories accounted for most of the growth of sales andearnings in the first nine months.
Sales in Japan increased 7.5% to 14,325 million yen as sales remained strong in the semiconductor/liquid
crystal category. Overseas, sales in the United States rose 48.7% to 4,586 million yen because of higher sales
in all categories including a big increase in the water treatment category. In Europe, sales increased 15.0% to
3,347 million yen as sales were strong in the chemicals and new energy categories. In Asia, sales were up 5.3%
to 2,344 million yen in part because of higher sales in the chemicals category in South Korea. Sales in China
decreased 14.5% to 1,295 million yen because of the elimination of internal transactions for consolidation
resulting from the different fiscal year ends of Iwaki (March) and a newly consolidated subsidiary in China(December). Demand in the semiconductor/liquid crystal and medical equipment categories remained strong.
In product categories, strong sales of mainline magnetic pumps, metering pumps, and pneumatic-drive pumps
in the semiconductor/liquid crystal category were the primary source of growth.
As a result, consolidated net sales increased 13.4% to 27,126 million yen.
Operating profit decreased 2.9% from one year earlier to 1,889 million yen. Earnings benefited from sales
growth but were held down by an increase in the cost of sales due to higher prices of many items, advertisingand marketing expenses for participation at overseas trade shows, higher transportation and entertainment
expenses as pandemic restrictions on outings ended, higher personnel expenses due to an addition to theprovision for bonuses and other reasons, and higher yen translations of SG&A expenses at overseas
subsidiaries because of the yen’s depreciation. In non-operating income, there was an increase in the share of
profit of entities accounted for using the equity method and foreign exchange gains due to the yen’s
depreciation. As a result, ordinary profit was up 32.1% to 3,444 million yen. Due to extraordinary income of
1,227 million yen for a gain on step acquisitions, profit attributable to owners of parent increased 96.1% to4,024 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 third quarter of the current fiscal year were 31,026 million yen, up 3,655
million yen from the end of the previous fiscal year. This was mainly due to increases of 938 million yen innotes and accounts receivable-trade, and contract assets, 1,554 million yen in merchandise and finished goods
and 824 million yen in raw materials and supplies. Non-current assets were 13,352 million yen at the end of
the third quarter, up 2,759 million yen from the end of the previous fiscal yea r. This was mainly because of anincrease of 2,361 million yen in goodwill.

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IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/23

As a result, total assets increased 6,415 million yen from the end of the previous fiscal year to 44,378 million
yen.
Liabilities
Current liabilities at the end of the third quarter were 12,245 million yen, up 1,211 million yen from the end of
the previous fiscal year. This was mainly due to increases of 202 million yen in notes and accounts
payable-trade, 357 million yen in electronically recorded obligations-operating and 554 million yen in contract
liabilities. Non-current liabilities were 2,672 million yen at the end of the third quarter, up 995 million yen
from the end of the previous fiscal year. This was mainly due to increases of 605 million yen in long-termborrowings and 322 million yen in other non-current liabilities due to the application of ASC Topic 842“Leases.”
As a result, total liabilities increased 2,206 million yen from the end of the previous fiscal year to 14,918
million yen.
Net assets
Net assets at the end of the third quarter were 29,459 million yen, up 4,208 million yen from the end of theprevious fiscal year. There were increases of 2,956 million yen in retained earnings and 1,203 million yen inforeign currency translation adjustment.
Consequently, the capital adequacy ratio was 66.1% (66.3% at the end of the previous fiscal year).
(3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements
We maintain the full-year consolidated earnings forecasts that were disclosed in the press release concerning
the consolidated earnings forecast and dividend forecast (Japanese version only) dated November 14, 2022.

3

IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/23

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Thousands of yen)
Third quarter of FY3/23(As of Dec. 31, 2022)

FY3/22(As of Mar. 31, 2022)
AssetsCurrent assets
Cash and deposits

8,781,886

7,757,639

Notes and accounts receivable-trade, and contract assets

6,575,664

7,514,577

Electronically recorded monetary claims-operating

3,896,433

4,513,097-

122,629

3,274,488

4,829,071

119,888286,674

Securities
Merchandise and finished goods
Work in process
Raw materials and supplies

4,285,302

5,109,426

Other489,283

963,149

Allowance for doubtful accounts(52,156)(69,951)

27,370,790

31,026,314

7,866,212

8,287,575

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment(4,184,745)(4,382,911)

Buildings and structures, net

3,681,467

3,904,664

Machinery, equipment and vehicles

3,246,918

3,497,593(2,775,483)(3,035,818)

471,435

461,774

2,071,207

2,266,920(1,770,695)(1,906,413)

300,511

360,507

1,043,711

1,049,648

350,172

340,922(176,849)(186,139)

Leased assets, net

173,323

154,783

Construction in progress

16,36928,662

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

44,400812,383(34,044)(352,059)

10,356460,324

5,697,174

6,420,366

Goodwill

706,796

3,067,987

Trademark right

26,78824,532

Other529,048

629,957

1,262,634

3,722,477

Investment securities

2,110,109

1,368,896

Deferred tax assets

323,464

516,980Retirement benefit asset

887,160

938,529

Other

312,168

385,009

3,632,902

3,209,415

10,592,711

13,352,259

37,963,502

44,378,573

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

4

IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/23(Thousands of yen)
Third quarter of FY3/23(As of Dec. 31, 2022)

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

2,492,928

2,695,875

Electronically recorded obligations-operating

3,884,760

4,242,031

Short-term borrowings

1,244,747

1,068,112

75,000155,000

Current portion of long-term borrowings
Lease liabilities

74,39970,964

Income taxes payable

587,120

373,023

Contract liabilities

44,987

599,827

Provision for bonuses

1,022,448

726,086

131,504

73,704

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

90,77899,600Other

1,385,959

2,141,445

Total current liabilities

11,034,634

12,245,671

Long-term borrowings

562,500

1,167,500

Lease liabilities

Non-current liabilities
124,271

108,408

Retirement benefit liability-

83,310Asset retirement obligations

223,382

224,209

Other

767,173

1,089,495

1,677,327

2,672,923

12,711,961

14,918,594

Share capital

1,044,691

1,044,691

Capital surplus

674,127

674,127

Retained earnings

22,341,167

25,297,538

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

Total shareholders’ equity

23,473,221

26,496,590

1,460

(687)

Foreign currency translation adjustment

669,870

1,873,804

Remeasurements of defined benefit plans

1,033,434

950,861

Total accumulated other comprehensive income

1,704,765

2,823,97873,554

139,40925,251,541

29,459,978

37,963,502

44,378,573

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

5

IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/23(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Nine-month Period)(Thousands of yen)First nine months of FY3/22(Apr. 1, 2021 – Dec. 31, 2021)

First nine months of FY3/23(Apr. 1, 2022 – Dec. 31, 2022)

Net sales

23,927,495

27,126,489

Cost of sales

15,647,339

17,947,004

Gross profit

8,280,156

9,179,484

Selling, general and administrative expenses

6,333,345

7,290,005

Operating profit

1,946,810

1,889,479

Interest income

1,524

1,538

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

16,224

16,903

637,418

951,807

14,344

235,614

Non-operating income

Income from refund-

325,638

Other

26,82557,029Total non-operating income

696,337

1,588,532

Interest expenses

19,42323,532

Commission expenses
Loss on amortization of restricted stock
remuneration
Other

7,397

5,973

-

406

8,034

3,837

Total non-operating expenses

34,85633,7502,608,291

3,444,261

Non-operating expenses

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

95-

137,347

5,621

Gain on step acquisitions-

1,227,206

Insurance claim income

39,668

-

Other

1,005

231

178,116

1,233,058

10,546

1,092

862

-

55,000-Gain on sale of investment securities

Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sale of non-current assets
Settlement payments
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

666,4081,092

2,719,999

4,676,226

651,028

627,557

2,068,971

4,048,669

16,512

24,2392,052,459

4,024,429

IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/23

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)(Thousands of yen)First nine months of FY3/22
First nine months of FY3/23(Apr. 1, 2021 – Dec. 31, 2021) (Apr. 1, 2022 – Dec. 31, 2022)
Profit2,068,971

4,048,669(101,301)(2,454)Foreign currency translation adjustment

289,058

1,165,016

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method(25,962)(82,573)

112,182

44,347

Total other comprehensive income

273,977

1,124,335

2,342,948

5,173,004

2,325,122

5,143,642

17,82529,361Other comprehensive income
Valuation difference on available-for-sale securities

Comprehensive 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 Third Quarter of FY3/23(3) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Changes in Consolidated Subsidiaries during the Period
In the second quarter of the fiscal year ending 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 of additional stock of IPH and an additional ownership interest in IPS. D ue to the purchaseof IPH stock, GFTZ IWAKI Engineering & Trading Co., Ltd. (IPG) and IWAKI Pumps (Guangdong) Co., Ltd.
(IGD), which are wholly owned subsidiaries of IPH, and IWAKI Pumps (Sh enzhen) Co., Ltd., which is awholly owned subsidiary of IPG, are also included in the scope of consolidation.
IPH and its subsidiary IGD are classified as specified subsidiaries.
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.
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 firstquarter 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 the consolidated financial statements.
Application of Accounting Standards Certification (ASC) Topic 842 “Leases” of the U.S. Financial AccountingStandards Board
Beginning with the first quarter of the current fiscal year, some consolidated subsidiaries outside Japan thatuse U.S. accounting standards are using ASC Topic 842 “Leases.” As a result, for all leases where thesesubsidiaries 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 8 42, 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 first quarter, right -of-use assets, which are included in other, net of property,
plant and equipment, increased 457 million yen, lease obligations included in other current liabilities increased
120 million yen, and lease obligations included in other non -current liabilities increased 364 million yen.
The effect of this change on earnings in the first nine months of the current fiscal year is insignificant.

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