November 12, 2021

Summary of Consolidated Financial Results
for the Second Quarter of Fiscal Year Ending March 31, 2022
(Six Months Ended September 30, 2021)[Japanese GAAP]
Company name:
Stock code:
Representative:
Contact:IWAKI CO.,LTD.
Listing: Tokyo Stock Exchange, First Section
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 12, 2021
Scheduled date of payment of dividend:
December 1, 2021
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting: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, 2021
(April 1, 2021 – September 30, 2021)(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, 2021
15,580
18.4
1,058
48.7
1,525
63.1
1,191
11.5
Six months ended Sep. 30, 2020
13,159 (6.6)
711 (31.7)
935 (24.8)
1,068
4.3
Note: Comprehensive income (million yen) Six months ended Sep. 30, 2021:
1,457 (up 45.4%)
Six months ended Sep. 30, 2020:
1,002 (up 40.5%)
Diluted net income per
Net income per share
share
Six months ended Sep. 30, 2021
Six months ended Sep. 30, 2020

Yen

Yen

54.36
48.50

-

(2) Consolidated financial position
Total assets
Net assets
Capital adequacy ratio
Million yen
Million yen%
As of Sep. 30, 2021
34,971
23,376
66.7
As of Mar. 31, 2021
32,211
22,52069.7
Reference: Owner’s equity (million yen)
As of Sep. 30, 2021: 23,312
As of Mar. 31, 2021: 22,456

2. Dividends
1Q-end2Q-endYen

Fiscal year ended Mar. 31, 2021
Fiscal year ending Mar. 31, 2022
Fiscal year ending Mar. 31, 2022 (forecasts)
Note: Revisions to the most recently announced dividend forecasts: None

Dividend per share
3Q-endYear-end

Total

Yen

Yen

Yen

Yen

8.00
12.00

-

21.00

29.00

-

16.50

28.50

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2022 (April 1, 2021 – March 31, 2022)(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
31,459
11.7
1,836
7.6
2,634
18.6
2,072
(0.9)
94.60
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): 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:

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, 2021:

22,490,910 shares

As of Mar. 31, 2021:

22,490,910 shares

As of Mar. 31, 2021:

451,856 shares

2) Number of treasury shares at the end of the period
As of Sep. 30, 2021:

585,863 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2021:

21,921,251 shares

Six months ended Sep. 30, 2020:

22,031,327 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 information at the quarterly financial results meeting
Iwaki plans to hold a quarterly financial results meeting for institutional investors and analysts on Wednesday,
November 24, 2021. 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 FY3/22

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial P erformance2(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

Changes in Accounting Policies

81

IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/22

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first half of the fiscal year ending March 31, 2022, although the outlook for the Japanese economy
remained uncertain because the government issued a fourth state of emergency to combat the resurgence of
COVID-19 infections, investment in machinery and equipment started to look particularly in growth sectors. A
similar trend was also noticed overseas, although uncertainties remain. On the other hand, demand forsemiconductors and electronic components is increasing sharply. But we need to keep an on eye on the effectsof supply shortages of semiconductors, electronic components, and other parts as well as effec ts on supply
chains due to any resurgence of COVID-19 infections.
In Japan, Iwaki took many actions to improve its corporate value based on the core policy of “winning byimproving customer satisfaction.” Overseas, there were activities encompassing 21 af filiated companies in 15
countries to increase sales. The Iwaki Group continued to accelerate the implementation of various measures
for achieving numerical targets of the Iwaki Group 10 -year vision of net sales of 40 billion yen and an
operating margin of 10% in the fiscal year ending on March 31, 2025.
As a result, sales to the semiconductor/liquid crystal market where investment is still strong, increased by
58.3% year-on-year, driving up overall sales.
Sales in Japan increased 10.7% from one year earlier to 8,703 million yen as a result of higher sales in thesemiconductor/liquid crystal, medical equipment, surface treatment equipment and new energy markets.
Overseas, sales in Europe increased 59.7% to 1,831 million yen because of the inclusion of the four companiesof the Iwaki Nordic Group (Denmark, Sweden, Finland and Norway). Sales in the United States rose 9.1% to1,864 million yen because sales were higher than one year earlier in all markets, including the water treatment
market. In Asia, sales rose in the semiconductor/liquid crystal and surface treatment equipment markets ,mainly for South Korea and Taiwan. As a result, sales were 1,545 million yen (up 49.4% year-on-year). Sales
in China were down 0.8% to 964 million yen. Sales to the semiconductor/liquid crystal and new energy
markets increased, but sales to the medical equipment market were affected by a decrease in customers’
production of medical equipment due to semiconductor shortages.
By product category, sales in the core magnetic drive pu mp category were strong. Sales of pneumatic drive
pumps for the semiconductor/liquid crystal market have also made a significant contribution to the increase insales.
As a result, consolidated net sales increased 18.4% to 15,580 million yen.
Higher sales contributed to an increase in earnings. Operating profit increased 48.7% to 1,058 million yen andordinary profit increased 63.1% to 1,525 million yen. Although the year-on-year increase was slower thanordinary profit mainly because there was an extraordinary income due to a step acquisition gain involving
Iwaki Nordic A/S in the same period a year earlier, profit attributable to owners of parent in the current fiscal
year’s first half increased 11.5% to 1,191 million yen.
There is no business segment information because chemical pumps are the only business of the Iwaki Group.
(2) Explanation of Financial Position
AssetsThe balance of current assets at the end of the second quarter of the current fiscal year was 25,508 million yen,
up 2,783 million yen from the end of the previous fiscal year. This was mainly due to increases of 1,420
million yen in cash and deposits and 462 million yen in merchandise and finished goods. The balance of
non-current assets was 9,462 million yen at the end of the second quarter, down 24 million yen from the end of
the previous fiscal year. This was mainly because of a decrease of 120 million yen in investment securities,
while there was an increase of 61 million yen in construction in progress .
As a result, total assets increased 2,759 million yen from the end of the previous fiscal year to 34,971 million
yen.

2IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/22

Liabilities
The balance of current liabilities at the end of the second quarter was 9,636 million yen, up 1,902 million yen
from the end of the previous fiscal year. This was mainly due to increases of 2,970 million yen inelectronically recorded obligations-operating and 294 million yen in short-term borrowings, while there was adecrease of 1,376 million yen in notes and accounts payable-trade. The balance of non-current liabilities was
1,958 million yen at the end of the second quarter, up 0 million yen from the end of the previous fiscal year.
As a result, total liabilities increased 1,903 million yen from the end of the previous fiscal year to 11,594
million yen.
Net assets
The balance of net assets at the end of the second quarter was 23,376 million yen, up 856 million yen from theend of the previous fiscal year. The main factors include increase s of 742 million yen in retained earnings and372 million yen in foreign currency translation adjustment.
Consequently, the capital adequacy ratio was 66.7% (69.7% 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 “ Notice of Extraordinary
Losses and Revisions to the Consolidated Earnings Forecast and Dividend Forecast” (Japanese version only)
dated October 15, 2021.

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IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/22

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Thousands of yen)
Second quarter of FY3/22(As of Sep. 30, 2021)

FY3/21(As of Mar. 31, 2021)
AssetsCurrent assets
Cash and deposits

7,127,637

8,548,109

Notes and accounts receivable-trade

6,396,840--

6,218,486

Electronically recorded monetary claims-operating

3,168,898

3,510,059

Merchandise and finished goods

2,587,283

3,050,110

Notes and accounts receivable-trade, and contract assets

Work in process
Raw materials and supplies

57,518105,981

3,131,450

3,590,209

Other282,115

513,700

Allowance for doubtful accounts(26,955)(28,268)

22,724,788

25,508,389

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

7,571,174

7,671,896(3,988,958)(4,094,315)

3,582,216

3,577,580

3,005,576

3,096,998(2,563,625)(2,620,379)

441,951476,619

2,013,058

2,034,714(1,675,948)(1,725,210)

337,110309,504

1,041,934

1,044,269

343,294

348,560(140,243)(158,747)

Leased assets, net

203,051

189,813

Construction in progress

84,481

146,136

Other

37,18440,498(28,490)(31,700)

Accumulated depreciation
Other, net

8,694

8,798

5,699,439

5,752,722

Goodwill

769,340

754,899

Trademark right

33,04430,499Total property, plant and equipment
Intangible assets

Other

333,210359,303

1,135,596

1,144,703

Investment securities

1,893,584

1,773,142

Deferred tax assets

460,137

506,141

Total intangible assets
Investments and other assets

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

4298,217

286,105

2,651,939

2,565,389

9,486,975

9,462,815

32,211,764

34,971,205

IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/22

FY3/21(As of Mar. 31, 2021)(Thousands of yen)
Second quarter of FY3/22(As of Sep. 30, 2021)

Liabilities
Current liabilities
Notes and accounts payable-trade

3,804,556

2,428,166

Electronically recorded obligations-operating

675,571

3,645,917

Short-term borrowings

820,592

1,115,250

Current portion of long-term borrowings

75,00075,000

Lease obligations

76,25975,966

Income taxes payable

280,804

353,910

Provision for bonuses

752,791

770,891

Provision for bonuses for directors (and other officers)

90,33238,650

Provision for product warranties

73,23578,704

Other

1,084,479

1,053,956

Total current liabilities

7,733,624

9,636,413

Long-term borrowings

637,500

600,000

Lease obligations

154,294

140,637

Retirement benefit liability

264,352

250,759

Asset retirement obligations

196,119

222,842

Non-current liabilities

Other

705,395

744,017

1,957,661

1,958,257

9,691,286

11,594,670

Share capital

1,044,691

1,044,691

Capital surplus

675,384

664,691

Retained earnings

20,673,009

21,415,600

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Treasury shares(456,247)(586,764)

Total shareholders’ equity

21,936,836

22,538,218

Valuation difference on available-for-sale securities

102,329

1,096

Foreign currency translation adjustment

123,917496,663

Remeasurements of defined benefit plans

293,781

276,473

Total accumulated other comprehensive income

520,029774,233

63,61164,082

22,520,477

23,376,534

32,211,764

34,971,205

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

5

IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/22(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Six-month Period)First six months of FY3/21(Apr. 1, 2020 – Sep. 30, 2020)(Thousands of yen)First six months of FY3/22(Apr. 1, 2021 – Sep. 30, 2021)

Net sales

13,159,749

15,580,255

Cost of sales

8,688,758

10,312,561

Gross profit

4,470,991

5,267,693

Selling, general and administrative expenses

3,759,253

4,209,125

711,737

1,058,567

Interest income

1,760

1,073

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

16,194

16,224

262,978

411,125-

41,153

Other

18,272

22,418

Total non-operating income

299,206

491,995

Interest expenses

11,72512,751

Commission expenses

2,518

5,442

Foreign exchange losses
Loss on amortization of restricted stock
remuneration
Other

48,385

-

6,944

-

6,090

6,615

Total non-operating expenses

75,664

24,810935,279

1,525,752

-

95

-

134,938

347,712-

Operating profit
Non-operating income

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

-

1,037

347,712

136,071

205

3,162

-

862

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

6-55,000205

59,024

1,282,786

1,602,799

214,666

400,666

1,068,120

1,202,133(447)

10,566

1,068,567

1,191,566

IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/22

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)(Thousands of yen)First six months of FY3/21
First six months of FY3/22(Apr. 1, 2020 – Sep. 30, 2020) (Apr. 1, 2021 – Sep. 30, 2021)
Profit

1,068,120

1,202,133

19,082(101,313)(65,206)

277,166

4,060(17,308)(23,309)

96,949(65,372)

255,494

1,002,747

1,457,627

1,004,679

1,445,770(1,932)

11,856

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
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 Second Quarter of FY3/22(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.
Changes in Accounting Policies
Application of the Accounting Standard for Revenue Recognition
Iwaki started to apply the Accounting Standard for Revenue Recognition ( Accounting Standards Board ofJapan (ASBJ) Statement No. 29, March 31, 2020) and the Implementation Guidance on Accounting Standard
for Revenue Recognition (ASBJ Guidance No. 30, March 26, 2021) at the beginning of the first quarter of the
fiscal year ending in March 2022. Based on thi s standard, revenue expected to be received in exchange for theprovision of goods and services is recognized when the control of the goods and services is transferred tocustomers.
In prior years, revenue for some export sales was recognized by using the shipping date standard. Due to theuse of this new standard, revenue for these sales is now recognized when risk concerning the products istransferred to the customer in accordance with trade terms stipulated by International Commercial Terms(Incoterms) and other guidelines.
For sales of products in Japan, the alternate treatment specified in Paragraph 98 of the Implementation
Guidance on Accounting Standard for Revenue Recognition is also applied. Revenue is recognized when aproduct is shipped in cases where the time between the shipment of a product and the transfer of control to acustomer is the normal length of time.
The new revenue recognition standard is applied in accordance with the transitional treatment prescribed in theproviso to Paragraph 84 of this standard. There was no effect on retained earnings at the beginning of thecurrent fiscal year.
In addition, the application of this standard had no effect on first half earnings.
Due to the application of the new revenue recognition standard, the “notes and accounts receivable-trade” itemin the current assets section of the consolidated balance sheet in the previous fiscal year is, beginning with thefirst quarter of the current fiscal year, presented as “notes and accounts receivable-trade, and contract assets.”
In accordance with the transitional treatment prescribed in Paragraph 89 -2 of this new standard, no
reclassification has been made to the prior year ’s consolidated financial statements to conform to the newpresentation.

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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