May 14, 2020

Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2020
[Japanese GAAP]
Company name:
Stock code:
Representative:
Contact:IWAKI CO.,LTD.
6237
Shigeru Fujinaka, President

Listing: Tokyo Stock Exchange, First Section
URL: https://www.iwakipumps.co.jp/

Makoto Inoue, Director,
Senior General Manager of Business Management Head Office

Scheduled date of Annual General Meeting of Shareholders:
Scheduled date of payment of dividend:
Scheduled date of filing of Annual Securities Report:
Preparation of supplementary materials for financial results:
Holding of financial results meeting:Tel: (81)3-3254-2931
June 26, 2020
June 29, 2020
June 29, 2020
Yes
Yes (Iwaki plans to provide a video presentation offinancial results on May 29, 2020 on our website
instead of the conventional financial results meeting.)(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2020 (April 1, 2019 – March 31, 2020)(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%
Fiscal year ended Mar. 31, 2020
28,636 (1.8)
2,114 (9.6)
2,578
2,122
(9.5)
(1.9)
Fiscal year ended Mar. 31, 201929,171
3.9
2,337
11.0
2,847
4.2
2,163
5.1
Note: Comprehensive income (million yen) Fiscal year ended Mar. 31, 2020:
1,693 (down 19.2%)
Fiscal year ended Mar. 31, 2019:
2,096 (down 8.8%)
Net income per
Diluted net
Ordinary profit Operating profit
Return on equity
share
income per shareon total assets
to net sales
Yen

Yen

%

%

%

Fiscal year ended Mar. 31, 2020
96.06
Fiscal year ended Mar. 31, 2019
96.25
Reference: Equity in earnings of affiliates (million yen)

10.5
8.5
7.4
11.3
9.5
8.0
Fiscal year ended Mar. 31, 2020: 433
Fiscal year ended Mar. 31, 2019: 515
Note: Iwaki conducted a 3-for-1 common stock split on July 1, 2018. Net income per share has been calcu lated as if this stock
split had taken place at the beginning of the previous fiscal year.
(2) Consolidated financial position
Total assets
Net assets
Capital adequacy ratio Net assets per share
Million yen
Million yen%
Yen
As of Mar. 31, 2020
30,126
20,52368.0
930.39As of Mar. 31, 201930,463
20,14865.5
887.14
Reference: Owner’s equity (million yen)
As of Mar. 31, 2020: 20,492
As of Mar. 31, 2019: 19,952
Note: Iwaki conducted a 3-for-1 common stock split on July 1, 2018. Net assets per share have been calculated as if this stock
split had taken place at the beginning of the previous fiscal year.
(3) Consolidated cash flows
Cash flows from
Cash flows from
Cash flows from Cash and cash equivalents
operating activities investing activities financing activities
at end of period
Million yen
Million yen
Million yen
Million yen
Fiscal year ended Mar. 31, 2020
2,138
(77)
(1,522)
5,706
Fiscal year ended Mar. 31, 2019
1,827
(1,793)
(724)
5,252

2. Dividends
Dividend per share
1Q-end2Q-endYen

Yen

3Q-end Year-end
Yen

Yen

Total

Total
dividends

Yen

Million yen

Dividend
Dividend on
payout ratio
equity(consolidated) (consolidated)%%

Fiscal year ended Mar. 31, 2019
12.00
16.90
28.90
649
30.0
3.4
Fiscal year ended Mar. 31, 2020
13.00
17.50
30.50
671
31.8
3.4
Fiscal year ending Mar. 31, 2021
(forecast)
Note: The dividend forecast for the fiscal year ending March 31, 2021 has not been determined at this time. Iwaki will promptly
announce the forecast as soon as it is determined while closely monitoring future trends.

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2021 (April 1, 2020 – March 31, 2021)
The consolidated earnings forecasts for the fiscal year ending March 31, 2021 have not been determined at this time because it isdifficult to reasonably predict the impact of the spread of the COVID-19 pandemic on the results of operations. Iwaki willpromptly announce the forecast as soon as it is determined while closely monitoring future trends.

* Notes(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
(2) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others:None2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:

None4) Restatements:

None(3) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Mar. 31, 2020:

22,490,910 shares

As of Mar. 31, 2019:22,490,910 shares

As of Mar. 31, 2019:510 shares

2) Number of treasury shares at the end of the period
As of Mar. 31, 2020:

465,389 shares

3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2020:

22,096,699 sharesFiscal year ended Mar. 31, 2019:22,477,989 shares

Note: Iwaki conducted a 3-for-1 common stock split on July 1, 2018. The number of shares outstanding at the end of theperiod, the number of treasury shares at the end of the period, and the average number of shares outstanding during
the period were calculated as if this stock split had been taken place at the beginning of the previous fiscal year.

Reference: Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2020 (April 1, 2019 – March 31, 2020)(1) Non-consolidated results of operations(Percentages represent year-on-year changes)

Fiscal year ended Mar. 31, 2020
Fiscal year ended Mar. 31, 2019

Net sales
Million yen%
22,675 (5.2)
23,926
3.1

Operating profit
Million yen%
1,439 (17.4)
1,743
11.3

Ordinary profit
Million yen%
2,035 (12.4)
2,324
14.9

ProfitMillion yen
1,780
1,806

%

(1.4)
18.8

Net income per share Diluted net income per share
Yen
Yen
Fiscal year ended Mar. 31, 2020
80.58
Fiscal year ended Mar. 31, 2019
80.37
Note: Iwaki conducted a 3-for-1 common stock split on July 1, 2018. Net income per share has been calculated as if this stock
split had taken place at the beginning of the previous fiscal year.

(2) Non-consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
Million yen
Million yen%
Yen
As of Mar. 31, 2020
26,076
17,22766.1
782.16
As of Mar. 31, 201926,24816,731
63.7
743.95
Reference: Shareholders’ equity (million yen):
As of Mar. 31, 2020: 17,227
As of Mar. 31, 2019: 16,731
Note: Iwaki conducted a 3-for-1 common stock split on July 1, 2018. Net assets per share have been calculated as if this stock
split had taken place at the beginning of the previous fiscal year.
* The current financial report is not subject to audit 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 th e
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. Please refer to “1. Overview of Results of Operations, (1) Results ofOperations, 2) Outlook” on page 2 for forecast assumptions and notes of caution for usage.
How to view supplementary materials for financial results
To prevent the spread of the COVID-19 pandemic, Iwaki plans to provide a video presentation of financial results on May 29,2020 (Friday) on our website instead of the conventional financial results meeting for institutional investors and analysts. The
video will be available on demand. Materials to be distributed at this event will be available on the website in advance.

IWAKI CO.,LTD. (6237) Financial Results for FY3/20

Contents of Attachments
1. Overview of Results of Operations

2(1) Results of Operations

2(2) Financial Position

2

2. Basic Approach to the Selection of Accounting Standards

3

3. Consolidated Financial Statements and Notes

4(1) Consolidated Balance Sheet

4(2) Consolidated Statements of Income and Comprehensive Income

6

Consolidated Statement of Income

6

Consolidated Statement of Comprehensive Income

7(3) Consolidated Statement of Changes in Equity

8(4) Consolidated Statement of Cash Flows

10(5) Notes to Consolidated Financial Statements

11

Going Concern Assumption

11

Reclassifications

11

Segment and Other Information

12

Per Share Information

13

Subsequent Events

14

1

IWAKI CO.,LTD. (6237) Financial Results for FY3/20

1. Overview of Results of Operations(1) Results of Operations
1) Operating results for the current fiscal year
In the fiscal year that ended on March 31, 2020, exports and production were weak and corporate capital
investment remained at the same level, while public sector investment remained firm. However, the outlook
remains unclear because there is a risk of economic downturn in Japan and overse as due to the spread of
COVID-19.
In Japan, Iwaki took many actions for building stronger relationships with customers and developing productsthat meet customers’ demands. All activities are based on the core policy of “winning by improving customer
satisfaction.” Overseas, Iwaki had activities encompassing 21 affiliated companies in 15 countries to increase
sales.
Due to these activities, sales were higher than one year earlier mainly in the water treatment and chemicals
markets. In the semiconductor/liquid crystal market, demand is recovering over the second half of the fiscal year,
but the upturn was not enough to make up for the decline in the first half and as a result sales were sluggish. Sales
in the medical equipment market slightly decreased from one year earlier due to inventory reductions at
customers in Japan.
Sales in Japan decreased 4.4% from one year earlier to 17,369 million yen as a result of sluggish sales in thesemiconductor/liquid crystal market and weak sales in the medical equipment market. In Europe, sales increased
0.5% to 2,670 million yen as a result of higher sales in the new energy market despite a small sales decline in thewater treatment and other markets. In the United States, sales increased 7.5% to 4,093 million yen as a re sult ofstrong sales in the water treatment market and higher sales in the chemicals market. In Asia, sales decreased 3.4%
to 2,269 million yen because of a lower demand in the semiconductor/liquid crystal market in South Korea during
the first half of the fiscal year. Sales in China were down 0.7% to 1,218 million yen because of sluggish sales inthe semiconductor/liquid crystal market while sales were higher in the medical equipment market.
By product category, sales of mainline metering pumps remained steady but sales of magnetic drive pumps
declined slightly. Sales of pneumatic drive pumps for the semiconductor/liquid crystal market were weak due to a
decline in sales of semiconductor-related equipment in the first half of the fiscal year. Sales of system products
were higher.
Consequently, consolidated net sales decreased 1.8% to 28,636 million yen.
Our efforts to reduce costs did not completely offset the impact of reduced sales and deteriorated cost of sales
ratio. As a result, operating profit decreased 9.6% to 2,114 million yen, ordinary profit decreased 9.5% to 2,578
million yen and profit attributable to owners of parent decreased 1.9% to 2,122 million yen. The effect of the
COVID-19 pandemic on the results of operations for the current fiscal year is insignificant.
No business segment information is provided because chemical pumps are the only business of the Iwaki Group.
2) Outlook
It is difficult to determine the future outlook since the economic impact of the COVID -19 pandemic is
unfathomable at present. Furthermore, normal business operations have become nearly impossible due torestrictions, such as on going, in many countries. Announcement of the earnings forecast for the next fiscal year is
postponed because it is not possible to establish a reliable forecast at this time. Iwaki will promptly announce theforecast as soon as it is determined.
(2) Financial Position
1) Assets, liabilities and net assets
AssetsThe balance of current assets at the end of the current fiscal year was 21,536 million yen, up 96 million yen fromthe end of the previous fiscal year. This was mainly due to increase s of 456 million yen in cash and deposits and2

IWAKI CO.,LTD. (6237) Financial Results for FY3/20

268 million yen in electronically recorded monetary claims-operating, while there was a decrease of 306 million
yen in notes and accounts receivable-trade. The balance of non-current assets was 8,590 million yen at the end of
the current fiscal year, down 433 million yen from the end of the previous fiscal year. This was mainly because ofa decrease of 531 million yen in investment securities.
As a result, total assets decreased 336 million yen from the end of the previous fiscal year to 30,126 million yen.
Liabilities
The balance of current liabilities at the end of the current fiscal year was 7 ,661 million yen, down 1,016 million
yen from the end of the previous fiscal year. This was mainly due to decreases of 502 million yen in notes andaccounts payable-trade, 183 million yen in short-term borrowings and 156 million yen in provision for bonuses.
The balance of non-current liabilities was 1,941 million yen at the end of the current fiscal year, up 303 million
yen from the end of the previous fiscal year. This was mainly due to an increase of 253 million yen in retirement
benefit liability.
As a result, total liabilities decreased 712 million yen from the end of the previous fiscal year to 9,602 million
yen.
Net assets
The balance of net assets at the end of the current fiscal year was 20,523 million yen, up 375 million yen from theend of the previous fiscal year. The main factors include increases of 475 million yen in treasury shares and 1,456
million yen in retained earnings.
Consequently, the capital adequacy ratio was 68.0% (65.5% at the end of the previous fiscal year).
2) Cash flows
Cash and cash equivalents (hereinafter, “net cash”) at the end of the current fiscal year was 5,706 million yen, up
454 million yen over the end of the previous fiscal year (a decrease of 712 million yen at the end of the previous
fiscal year).
The cash flow components during the current fiscal year and the main reasons for changes are as described below.
Cash flows from operating activities
Net cash provided by operating activities was 2,138 million yen (1,827 million yen provided in the previous fiscal
year). Positive factors include profit before income taxes of 2,700 million yen, which offset negative factors
including income taxes paid of 601 million yen.
Cash flows from investing activities
Net cash used in investing activities was 77 million yen (1,793 million yen used in the previous fiscal year).
Negative factors include purchase of property, plant and equipment and intangible assets of 691 million yen,which offset positive factors including proceeds from sales of investment securities of 529 million yen.
Cash flows from financing activities
Net cash used in financing activities was 1,522 million yen (724 million yen used in the previous fiscal year).
Negative factors include cash dividends paid of 665 million yen, which offset positive factors including proceedsfrom short-term borrowings of 187 million yen.
2. Basic Approach to the Selection of Accounting Standards
The Iwaki Group will continue to prepare consolidated financial statements using Japanese accounting standards
for the time being to permit comparisons with prior years and with the financial data of other companies.
We will take suitable actions with regard to the application of International Financial Reporting Standards (IFRS)
by taking into account associated factors in Japan and other countries.
3

IWAKI CO.,LTD. (6237) Financial Results for FY3/20

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet
FY3/19(As of Mar. 31, 2019)(Thousands of yen)
FY3/20(As of Mar. 31, 2020)

AssetsCurrent assets
Cash and deposits

5,580,286

6,037,142

Notes and accounts receivable-trade

6,873,408

6,567,089

Electronically recorded monetary claims-operating

2,738,020

3,006,973

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

55,846-2,214,986

2,274,529

29,78541,866

3,522,791

3,334,700

Other446,732

297,927

Allowance for doubtful accounts(21,831)(24,120)

21,440,024

21,536,109

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

7,304,024

7,350,481(3,646,791)(3,814,876)

3,657,232

3,535,605

2,676,850

2,821,272(2,247,889)(2,409,334)

428,960

411,937

1,795,534

1,882,702(1,465,444)(1,557,037)

330,089

325,664

1,041,879

1,039,680

338,538

282,368(185,666)(138,730)

152,872

143,637

Construction in progress

11,071

129,925

Other

27,17830,117(19,444)(22,400)

Land
Leased assets
Accumulated depreciation
Leased assets, net

Accumulated depreciation
Other, net
Total property, plant and equipment

7,733

7,716

5,629,839

5,594,168

Intangible assets
Goodwill

2,772

1,764

Trademark right

58,573

46,116Other

132,297258,369

Total intangible assets

193,643306,250

Investment securities

2,275,208

1,743,860

Deferred tax assets

634,431

669,176

Investments and other assets

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

4

290,448

277,068

3,200,088

2,690,105

9,023,571

8,590,524

30,463,596

30,126,634

IWAKI CO.,LTD. (6237) Financial Results for FY3/20(Thousands of yen)
FY3/20(As of Mar. 31, 2020)

FY3/19(As of Mar. 31, 2019)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings

5,184,397

4,681,495

951,205

768,050

Lease obligations

64,97855,903

Income taxes payable

250,186

103,628

Provision for bonuses

881,140

725,113

Provision for bonuses for directors (and other officers)

140,000

43,080

Provision for product warranties

97,261

71,156

Provision for loss on building demolition cost-

11,400Other

1,108,559

1,201,622

Total current liabilities

8,677,727

7,661,449

Lease obligations
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability

106,058

105,203

51,687

51,687659,105

912,345

Asset retirement obligations

184,387

185,555

Non-current liabilities

Other

636,283

686,570

1,637,521

1,941,361

10,315,249

9,602,811

Share capital

1,044,691

1,044,691

Capital surplus

664,691

675,803

Retained earnings

17,687,437

19,143,574(559)(475,730)

19,396,260

20,388,338

Valuation difference on available-for-sale securities

232,11388,669Foreign currency translation adjustment

241,969

150,937

Remeasurements of defined benefit plans

81,877(135,633)

Total accumulated other comprehensive income

555,960

103,974

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

Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income

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

5

196,127

31,51020,148,347

20,523,823

30,463,596

30,126,634

IWAKI CO.,LTD. (6237) Financial Results for FY3/20(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income
FY3/19(Apr. 1, 2018 – Mar. 31, 2019)(Thousands of yen)
FY3/20(Apr. 1, 2019 – Mar. 31, 2020)

Net sales

29,171,774

28,636,597

Cost of sales

18,797,679

18,829,883

Gross profit

10,374,094

9,806,713

Selling, general and administrative expenses

8,036,338

7,692,467

Operating profit

2,337,755

2,114,246

Interest income

27,927

12,273

Dividend income
Share of profit of entities accounted for using equity
methodOther

20,84420,874

515,794433,208

59,407

83,565

Total non-operating income

623,973

549,922

Interest expenses

30,80030,340Foreign exchange losses

41,99433,280Business establishment transfer expenses

30,900-Other

10,18621,999Total non-operating expenses

113,882

85,621

2,847,846

2,578,547

Non-operating income

Non-operating expenses

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

346

9,111

Gain on sales of investment securities

31

153,234

Total extraordinary income

377

162,345

173-

Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets

2,051

2,021

Loss on sales of investment securities

-

8,756

Contribution for equipment investment-

18,000

Provision for loss on building demolition cost-

11,4002,225

40,1772,845,998

2,700,715

Income taxes-current

652,855

458,082

Income taxes-deferred

11,956

97,195

Total extraordinary losses
Profit before income taxes

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

6664,812555,277

2,181,186

2,145,437

17,73422,881

2,163,452

2,122,555

IWAKI CO.,LTD. (6237) Financial Results for FY3/20

Consolidated Statement of Comprehensive Income
FY3/19(Apr. 1, 2018 – Mar. 31, 2019)(Thousands of yen)
FY3/20(Apr. 1, 2019 – Mar. 31, 2020)

2,181,186

2,145,437

Valuation difference on available-for-sale securities(42,270)(143,289)

Foreign currency translation adjustment(120,245)(57,624)

120,008(217,510)(42,196)(33,170)

ProfitOther comprehensive income

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 to non-controllinginterests

7(84,704)(451,595)

2,096,482

1,693,842

2,080,002

1,670,569

16,47923,272

IWAKI CO.,LTD. (6237) Financial Results for FY3/20(3) Consolidated Statement of Changes in Equity
FY3/19 (Apr. 1, 2018 – Mar. 31, 2019)(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginningof period

Capital surplus

1,018,250

638,250

26,441

26,441Retained earnings

Treasury shares

Total shareholders’equity16,157,603(480)

17,813,622

Changes during period
Issuance of newsharesDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period52,882(633,617)(633,617)

2,163,452

2,163,452
(78)

(78)

26,441

26,441

1,529,834(78)

1,582,637

1,044,691

664,691

17,687,437(559)

19,396,260(Thousands of yen)
Accumulated other comprehensive income

Balance at beginningof period

Valuationdifference on
available-for-salesecurities

Foreigncurrencytranslation
adjustment

274,384

403,156

Total
Remeasurements accumulated Non-controllinginterestsof definedotherbenefit planscomprehensive
income(38,131)

639,409

207,627

Total net
assets

18,660,659

Changes during period
Issuance of newshares

52,882

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period(633,617)
2,163,452(78)(42,270)(161,187)

120,008(83,449)(11,500)(94,950)(42,270)(161,187)

120,008(83,449)(11,500)

1,487,687

232,113

241,969

81,877555,960

196,127

20,148,347

8IWAKI CO.,LTD. (6237) Financial Results for FY3/20

FY3/20 (Apr. 1, 2019 – Mar. 31, 2020)(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginningof period

1,044,691

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity664,691

17,687,437(559)

19,396,260

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due
to transactions with
non-controllinginterests
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period(666,419)(666,419)

2,122,555

2,122,555

1,676(500,088)(500,088)

24,917

26,594

9,435

9,435

-

11,112

1,456,136(475,170)

992,078

1,044,691

675,803

19,143,574(475,730)

20,388,338(Thousands of yen)
Accumulated other comprehensive income

Balance at beginningof period

Valuationdifference on
available-for-salesecurities

Foreigncurrencytranslation
adjustment

232,113

241,969

Total
Remeasurements accumulated Non-controllinginterestsof definedotherbenefit planscomprehensive
income81,877555,960

196,127

Total net
assets

20,148,347

Changes during period(666,419)

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due
to transactions with
non-controllinginterests
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period2,122,555(500,088)
26,594

9,435(143,443)(91,031)(217,510)(451,986)(164,616)(616,602)(143,443)(91,031)(217,510)(451,986)(164,616)

375,475

88,669150,937(135,633)

103,974

31,51020,523,823

9

IWAKI CO.,LTD. (6237) Financial Results for FY3/20(4) Consolidated Statement of Cash Flows(Thousands of yen)
FY3/19FY3/20(Apr. 1, 2018 – Mar. 31, 2019) (Apr. 1, 2019 – Mar. 31, 2020)
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors(and other officers)
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Interest and dividend income
Interest expenses
Loss (gain) on sales of investment securities
Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using equity
methodSurrender value of insurance policies
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts payable-other
Increase (decrease) in accrued expenses
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of securities
Proceeds from redemption of securities
Purchase of property, plant and equipment and intangible
assetsProceeds from sales of property, plant and equipment andintangible assets
Proceeds from sales of investment securities
Proceeds from cancellation of insurance funds
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Repayments of lease obligations
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

102,845,998
609,965
1,008(2,523)(11,797)2,700,715
649,460
1,008
2,709(156,028)

41,326(96,920)

26,622(60,222)(99,356)-(48,771)
30,800(31)(2,721)(33,148)
30,340(144,477)
13,416(515,794)(433,208)

27,203(801,098)
98,765(59,053)
111,736(57,971)
93,411
2,287,721
513,512(26,993)(946,490)
1,827,749(53,883)
15,941
79,031(481,353)
25,450(142,665)
278,800
135,1422,330,108
433,285(24,060)(601,209)
2,138,123(322,902)
271,632(55,614)-(247,749)
244,116(27,589)
82,489(1,680,012)(691,320)

860

10,077454(8,049)(1,793,632)

529,904
59,461(37,087)(77,699)(64,194)(78)(632,408)(27,980)

187,588(300,000)(65,880)(500,088)(665,365)(16,765)-(161,686)(724,661)(21,708)(712,253)
5,964,829
5,252,576(1,522,198)(84,075)
454,150
5,252,576
5,706,726

IWAKI CO.,LTD. (6237) Financial Results for FY3/20(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Reclassifications
Consolidated Statement of Cash Flows“Loss (gain) on sales of investment securities” and “Increase (decrease) in accrued consumption taxes,” included
in “Other” under cash flows from operating activities in the previous fiscal year, are presented separately from thecurrent fiscal year due to an increase in their monetary materiality. To conform to this change, the financial
statements for the previous fiscal year are reclassified.
As a result, “Other” (35,409 thousand yen) under cash flows from operating activities presented in the previous
fiscal year’s consolidated statement of cash flows has been reclassified and divided into “Loss (gain) on sales ofinvestment securities” (-31 thousand yen), “Increase (decrease) in accrued consumption taxes” ( -57,971 thousandyen) and “Other” (93,411 thousand yen).
“Income taxes refund,” presented separately under cash flows from operating activities in the previous fiscal year,
are included in “Income taxes paid” from the current fiscal year due to a decrease in its monetary materiality. To
conform to this change, the financial statements for the previous fiscal year are reclassified.
As a result, “Income taxes refund” (1,401 thousand yen) presented under cash flows from operating activities in
the previous fiscal year’s consolidated statement of cash flows is reclassified and included in “Income taxes
paid.”“Proceeds from sales of investment securities,” included in “Other” under cash flows from investing activities in
the previous fiscal year, are presented separately from the current fiscal year due to an increa se in its monetary
materiality. In addition, “Purchase of intangible assets,” included in “Other” under cash flows from investing
activities in the previous fiscal year, is presented and included in “Purchase of property, plant and equipment andintangible assets” from the current fiscal year due to an increase in its monetary materiality. To conform to thesechanges, the financial statements for the previous fiscal year are reclassified.
As a result, “Other” (-59,602 thousand yen) under cash flows from investing activities presented in the previous
fiscal year’s consolidated statement of cash flows has been reclassified and divided into “Purchase of property,
plant and equipment and intangible assets” (-52,007 thousand yen), “Proceeds from sales of investme nt
securities” (454 thousand yen) and “Other” (-8,049 thousand yen).
“Purchase of treasury shares,” included in “Other” under cash flows from financing activities in the previous
fiscal year, is presented separately from the current fiscal year due to an increase in its monetary materiality. To
conform to this change, the financial statements for the previous fiscal year are reclassified.
As a result, “Other” (-78 thousand yen) under cash flows from financing activities presented in the previous fiscal
year’s consolidated statement of cash flows has been reclassified and presented as “Purchase of treasury shares”(-78 thousand yen).

11

IWAKI CO.,LTD. (6237) Financial Results for FY3/20

Segment and Other Informationa. Segment information
Omitted because chemical pumps are the only business of the Iwaki Group .
b. Related information
FY3/19 (Apr. 1, 2018 – Mar. 31, 2019)
1. Information by product or service
Magnetic drive
pumps

Metering pumps

10,177,913

5,066,624

2,775,387

System products

Purchased products

1,306,458

2,383,576

External sales

Air pumps
1,528,234

Pneumatic drive
pumps(Thousands of yen)
Rotary displacementpumps
2,868,952
Other

Total

3,064,627

29,171,774

2. Information by region(1) Net sales(Thousands of yen)Japan

Europe18,163,038

2,657,753

Americas3,806,193

Asia

China

2,348,364

1,226,511

Other

Total

969,912

29,171,774

Note: Classification of net sales is based on the location of the client and categorized by country or region.

(2) Property, plant and equipment
Japan4,982,770

Europe450,201

Americas140,922

Asia(Thousands of yen)Total
55,9455,629,839

3. Information by major client
Omitted because no specific external client accounts for 10% or more of net sales in the consolidated statement ofincome.
FY3/20 (Apr. 1, 2019 – Mar. 31, 2020)
1. Information by product or service
Magnetic drive
pumps

Metering pumps

9,779,656

External sales

Pneumatic drivepumps

Air pumps
1,527,623

5,184,128

1,953,975

System products

Purchased products

1,454,673

2,621,428(Thousands of yen)
Rotary displacementpumps
2,632,965
Other

Total

3,482,145

28,636,597

2. Information by region(1) Net sales(Thousands of yen)Japan

Europe17,369,784

2,670,924

Americas4,093,197

Asia

China

Other

Total

2,269,341

1,218,445

1,014,904

28,636,597

Note: Classification of net sales is based on the location of the client and categorized by country or region.

(2) Property, plant and equipment
Japan4,825,465

Europe525,101

Americas190,987

12

Asia(Thousands of yen)Total
52,614
5,594,168

IWAKI CO.,LTD. (6237) Financial Results for FY3/20

3. Information by major client
Omitted because no specific external client accounts for 10% or more of net sales in the consolidated statement ofincome.
c. Information related to impairment losses on non-current assets for each reportable segment
Not applicable.
d. Information related to goodwill amortization and the unamortized balance for each reportable segment
Omitted because chemical pumps are the only business of the Iwaki Group.
e. Information related to gain on bargain purchase for each reportable segment
Not applicable.
Per Share Information
FY3/19(Apr. 1, 2018 – Mar. 31, 2019)(Yen)
FY3/20(Apr. 1, 2019 – Mar. 31, 2020)

Net assets per share

887.14930.39Net income per share

96.25

96.06

Notes: 1. Iwaki conducted a 3-for-1 common stock split on July 1, 2018. Net assets per share and net income per share havebeen calculated as if this stock split had taken place at the beginning of the previous fiscal year.
2. Diluted net income per share is not presented because there are no latent shares.
3. The basis of calculating the net income per share is as follows:
FY3/19FY3/20(Apr. 1, 2018 – Mar. 31, 2019)(Apr. 1, 2019 – Mar. 31, 2020)
Profit attributable to owners of parent
2,163,452
2,122,555(Thousands of yen)Amount not attributable to common shareholders(Thousands of yen)
Profit attributable to owners of parent applicable to2,163,452
2,122,555
common shares (Thousands of yen)
Average number of shares outstanding (Shares)

22,477,989

13

22,096,699

IWAKI CO.,LTD. (6237) Financial Results for FY3/20

Subsequent Events
Change in an equity-method affiliate (conversion to a consolidated subsidiary)
The Iwaki Board of Directors approved a resolution on May 14, 2020 to make equity-method affiliate Iwaki
Nordic A/S a consolidated subsidiary after consolidated subsidiary Iwaki Europe GmbH acquires 60% of Iwaki
Nordic A/S’s shares.
1. Summary of business combination(1) Acquired company and its business activities
Acquired company: Iwaki Nordic A/SBusiness activities:

Sales of chemical pumps(2) Reasons for acquisition
As the Nordic region is positioned as an important sales market in Europe, Iwaki Nordic A/S is being
integrated into our integrated global operations system to further strengthen our competitiveness.
(3) Acquisition date (scheduled)
June 30, 2020
(4) Legal form of acquisition
Acquisition of shares with cash(5) Company’s name after acquisition
There is no change in the company’s name.
(6) Percentage of voting rights acquired
Percentage of voting rights immediately before the acquisition:

40%

Percentage of voting rights additionally acquired on acquisition date:

60%

Percentage of voting rights after acquisition:

100% (60% indirectly held)(7) Basis for choosing the company to acquire
Iwaki acquires voting rights of equity-method affiliate Iwaki Nordic A/S by acquiring its shares in exchange
for consideration in cash.
2. Acquisition cost of acquired company and breakdown by type of consideration
Not yet determined.
3. Details of major acquisition-related costs
Not yet determined.
4. Goodwill resulting from the acquisition
Not yet determined.
5. Breakdown of assets acquired and liabilities assumed on the acquisition date
Not yet determined.

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.

14