November 14, 2022

Summary of Consolidated Financial Results
for the Second Quarter of Fiscal Year Ending March 31, 2023
(Six Months Ended September 30, 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:
November 14, 2022
Scheduled date of payment of dividend:
December 1, 2022
Preparation of supplementary materials for quarterly financial results: Yes
Preparation of supplementary materials for financial results:
Yes (for institutional investors and analysts)(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter Ended September 30, 2022
(April 1, 2022 – September 30, 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%
17,810
14.3
1,185
12.0
2,205
44.6
2,987
150.7
Six months ended Sep. 30, 2022
15,580
18.4
1,058
48.7
1,525
63.1
1,191
11.5
Six months ended Sep. 30, 2021
Note: Comprehensive income (million yen) Six months ended Sep. 30, 2022:
3,890 (up 166.9%)
Six months ended Sep. 30, 2021:
1,457 (up 45.4%)
Diluted net income per
Net income per share
share
Six months ended Sep. 30, 2022
Six months ended Sep. 30, 2021

Yen

Yen

136.1954.36-(2) Consolidated financial position
Total assets
Net assets
Capital adequacy ratio
Million yen
Million yen%
As of Sep. 30, 2022
43,52628,761
65.8
As of Mar. 31, 2022
37,96325,251
66.3
Reference: Owner’s equity (million yen)
As of Sep. 30, 2022: 28,643
As of Mar. 31, 2022: 25,177

2. Dividends
1Q-endYen

2Q-endDividend per share
3Q-endYear-end

Yen

Yen

Yen

Total
Yen

12.00
21.50
33.50
Fiscal year ended Mar. 31, 2022
27.00
Fiscal year ending Mar. 31, 2023
33.00
60.00
Fiscal year ending Mar. 31, 2023 (forecasts)
Note: Revisions to the most recently announced dividend forecasts: Yes
Regarding revisions to the dividend forecast, please see the press release dated today (November 14, 2022) concerning therevisions to the earnings forecast and dividend forecast (Japanese version only).

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: Yes
Regarding revisions to the earnings forecast, please see the press release dated today (November 14, 2022) concerning therevisions to the earnings forecast and dividend forecast (Japanese version only).

* 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 Sep. 30, 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 Sep. 30, 2022:

519,363 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2022:

21,938,026 shares

Six months ended Sep. 30, 2021:

21,921,251 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 28, 2022.
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 FY3/23

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 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

Changes in Consolidated Subsidiaries during the Period

8

Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

8

Changes in Accounting Policies

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IWAKI CO.,LTD. (6237) Financial Results for the Second 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 half of the current
fiscal year. The outlook for the economy remains uncertain because of numerous events that may affect theearnings of companies, such as worldwide monetary tightening that may cause a global economic downturn,inflation, restrictions on the supply of many items and other issues.
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 25.3% from one year earlier to 4,154 million yen because ofstrong sales in the United States. The semiconductor/liquid crystal market remained strong, increasing 16.4%
to 3,552 million yen in sales. Sales in the medical equipment market were also strong, increasing 14.0% to
2,641 million yen. These three sectors were responsible for most of the growth of first half sales and earnings.
Sales in Japan increased 6.4% from one year earlier to 9,263 million yen as sales remained strong in thesemiconductor/liquid crystal market. Overseas, sales in the United States rose 49.5% to 2,787 million yen
because of higher sales in the water treatment market. In Europe, sales increased 18.1% to 2,162 million yen as
sales were strong particularly in the chemicals and new energy markets. In Asia, sales rose mainly in thesurface treatment equipment market in Taiwan. As a result, sales were up 0.5% to 1,552 million yen. Sales in
China increased 31.9% to 1,272 million yen because of strong demand in the semiconductor/liquid crystal andmedical equipment markets.
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 14.3% to 17,810 million yen.
Operating profit increased 12.0% from one year earlier to 1,185 million yen. Earnings benefited from sales
growth but there were higher advertising and marketing expenses due to participation in overseas trade shows
and higher personnel expenses, including an addition to the provision for bonuses. In non-operating income,there was an increase in the share of profit of entities accounted for using the equity method and foreignexchange gains due to the yen’s depreciation. As a result, ordinary profit was up 44.6% to 2,205 million yen.
Due to extraordinary income of 1,297 million yen for a gain on step acquisitions, profit attributable to ownersof parent increased 150.7% to 2,987 million yen.
There is no business segment information because chemical pumps ar e 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 30,371 million yen, up 3,000
million yen from the end of the previous fiscal year. This was mainly due to increases of 374 million yen in
cash and deposits, 511 million yen in notes and accounts receivable -trade, and contract assets, 1,121 million
yen in merchandise and finished goods and 734 million yen in raw materials and supplies. Non-current assets
were 13,155 million yen at the end of the second quarter, up 2,562 million yen from the end of the previous
fiscal year. This was mainly because of an increase of 2,493 million yen in goodwill.
As a result, total assets increased 5,563 million yen from the end of the previous fiscal year to 43,526 million
yen.
Liabilities
Current liabilities at the end of the second quarter were 12,017 million yen, up 982 million yen from the end of
the previous fiscal year. This was mainly due to increases of 616 million yen in contract liabilities and 203
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IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/23

million yen in provision for bonuses. Non-current liabilities were 2,748 million yen at the end of the second
quarter, up 1,070 million yen from the end of the previous fiscal year. This was mainly due to increases of 682
million yen in long-term borrowings and 327 million yen in other non-current liabilities due to the applicationof ASC Topic 842 “Leases.”
As a result, total liabilities increased 2,053 million yen from the end of the previous fiscal year to 14,765
million yen.
Net assets
Net assets at the end of the second quarter were 28,761 million yen, up 3,509 million yen from the end of theprevious fiscal year. There were increases of 2,512 million yen in retained earnings and 942 million yen inforeign currency translation adjustment.
Consequently, the capital adequacy ratio was 65.8% (66.3% at the end of the previous fiscal year).
(3) Explanation of Consolidated Earnings Forecasts and Other Forward -looking Statements
The forecast for the fiscal year ending on March 31, 2023 has been revised to reflect the results of operationsin the first half. For more information, please see the press release dated today (November 14, 2022)
concerning the revisions to the earnings forecast and dividend forecast (Japanese version only).

3

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

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Thousands of yen)
Second quarter of FY3/23(As of Sep. 30, 2022)

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

8,781,886

9,156,708

Notes and accounts receivable-trade, and contract assets

6,575,664

7,087,641

Electronically recorded monetary claims-operating

3,896,433

3,787,676-

253,0273,274,488

4,395,717

119,888

185,424

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

4,285,302

5,019,424

Other489,283

551,404

Allowance for doubtful accounts(52,156)(65,562)

27,370,790

30,371,464

7,866,212

7,994,692

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment(4,184,745)(4,325,470)

Buildings and structures, net

3,681,467

3,669,222

Machinery, equipment and vehicles

3,246,918

3,424,610(2,775,483)(2,956,808)

471,435

467,801

2,071,207

2,258,492(1,770,695)(1,896,004)

300,511362,488

1,043,711

1,049,814

350,172

322,592(176,849)(173,506)

Leased assets, net

173,323

149,085

Construction in progress

16,36924,665

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

44,400742,779(34,044)(268,958)

10,356473,820

5,697,174

6,196,898

Goodwill

706,796

3,200,340

Trademark right

26,78826,049Other529,048587,127

1,262,634

3,813,517

Investment securities

2,110,109

1,373,502

Deferred tax assets

323,464

465,206

Retirement benefit asset

887,160

935,147

Other

312,168

370,991

3,632,902

3,144,847

10,592,711

13,155,262

37,963,502

43,526,727

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 Second Quarter of FY3/23(Thousands of yen)
Second quarter of FY3/23(As of Sep. 30, 2022)

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

2,492,928

2,313,336

Electronically recorded obligations-operating

3,884,760

3,926,078

Short-term borrowings

1,244,747

1,144,536

75,000155,187

Current portion of long-term borrowings
Lease liabilities

74,39969,401

Income taxes payable

587,120

615,063

Contract liabilities

44,987

661,017

Provision for bonuses

1,022,448

1,226,103

131,504

47,500

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

90,77895,830Other

1,385,959

1,763,469

Total current liabilities

11,034,634

12,017,524

Long-term borrowings

562,500

1,245,000

Lease liabilities

Non-current liabilities
124,271

103,261Retirement benefit liability-

81,266

Asset retirement obligations

223,382

223,933

Other

767,173

1,094,599

1,677,327

2,748,061

12,711,961

14,765,585

Share capital

1,044,691

1,044,691

Capital surplus

674,127

674,127

Retained earnings

22,341,167

24,854,117

Treasury shares(586,764)(519,722)

Total shareholders’ equity

23,473,221

26,053,212

1,460

(95)

Foreign currency translation adjustment

669,870

1,612,170

Remeasurements of defined benefit plans

1,033,434

978,385

Total accumulated other comprehensive income

1,704,765

2,590,460

73,554

117,468

25,251,541

28,761,141

37,963,502

43,526,727

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 Second Quarter of FY3/23(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Six-month Period)(Thousands of yen)First six months of FY3/22(Apr. 1, 2021 – Sep. 30, 2021)

First six months of FY3/23(Apr. 1, 2022 – Sep. 30, 2022)

Net sales

15,580,255

17,810,912

Cost of sales

10,312,561

11,838,102

Gross profit

5,267,693

5,972,809

Selling, general and administrative expenses

4,209,125

4,787,070

Operating profit

1,058,567

1,185,738

Interest income

1,073

661

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

16,224

16,903411,125

730,573

41,153

249,411

Non-operating income

Other

22,41843,195

Total non-operating income

491,995

1,040,746

Interest expenses

12,751

13,377

Commission expenses
Loss on amortization of restricted stock
remuneration
Other

5,442

4,006

-

406

6,615

2,893

Total non-operating expenses

24,81020,684

1,525,752

2,205,801

95-

Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on step acquisitions
Other
Total extraordinary income

134,938

3,869-

1,297,060

1,037

229

136,071

1,301,158

3,162

707

862

-

55,000-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

659,024707

1,602,799

3,506,251

400,666

505,133

1,202,133

3,001,118

10,566

13,341

1,191,566

2,987,776

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

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)(Thousands of yen)First six months of FY3/22
First six months of FY3/23(Apr. 1, 2021 – Sep. 30, 2021) (Apr. 1, 2022 – Sep. 30, 2022)
Profit1,202,133

3,001,118(101,313)(1,796)

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

277,166

655,221

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method(17,308)(55,049)

96,949291,309

Total other comprehensive income

255,494

889,685

1,457,627

3,890,804

1,445,770

3,873,472

11,856

17,332Comprehensive 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 FY3/23(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. Due 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 Finan cial 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 842, the cumulative monetary effects of
the application of this topic were recognized on the first day of the application of this topic.
As a result, at the beginning of the first quarter, right -of-use assets, which are included in other, net of property,
plant and equipment, increased 431 million yen, lease obligations included in other current liabilities increased
113 million yen, and lease obligations included in other non-current liabilities increased 344 million yen.
The effect of this change on earnings in the first half 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