November 12, 2020

Summary of Consolidated Financial Results
for the Second Quarter of Fiscal Year Ending March 31, 2021
(Six Months Ended September 30, 2020)[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, Director,
Senior General Manager of Business Management Head OfficeTel: (81)3-3254-2931
Scheduled date of filing of Quarterly Report:
November 13, 2020
Scheduled date of payment of dividend:
December 1, 2020
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:Yes (Iwaki plans to provide a video
presentation of financial results on November
27, 2020 on our website instead of theconventional financial results meeting.)(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter Ended September 30, 2020
(April 1, 2020 – September 30, 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%
Six months ended Sep. 30, 2020
13,159 (6.6)
711 (31.7)
935 (24.8)
1,068
4.3
Six months ended Sep. 30, 201914,086 (4.2)
1,041 (13.9)
1,243 (18.9)
1,024
(4.1)
Note: Comprehensive income (million yen) Six months ended Sep. 30, 2020:
1,002 (up 40.5%)
Six months ended Sep. 30, 2019:
713 (down 27.1%)
Diluted net income per
Net income per share
share
Six months ended Sep. 30, 2020
Six months ended Sep. 30, 2019

Yen

Yen

48.50
46.22

-

(2) Consolidated financial position
Total assets
Net assets
Capital adequacy ratio
Million yen
Million yen%
As of Sep. 30, 2020
31,557
21,18467.0
As of Mar. 31, 2020
30,126
20,52368.0
Reference: Owner’s equity (million yen)
As of Sep. 30, 2020: 21,130
As of Mar. 31, 2020: 20,492

2. Dividends
1Q-end2Q-endYen

Fiscal year ended Mar. 31, 2020
Fiscal year ending Mar. 31, 2021
Fiscal year ending Mar. 31, 2021 (forecasts)
Note: Revisions to the most recently announced dividend forecasts: None

Dividend per share
3Q-endYear-end

Total

Yen

Yen

Yen

Yen

13.00
8.00

-

17.50

30.50

-

13.00

21.00

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2021 (April 1, 2020 – March 31, 2021)(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
28,280 (1.2)
1,332(37.0)
1,739(32.6)
1,537 (27.6)
69.79
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:None2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:

None4) Restatements:

None(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, 2020:

22,490,910 shares

As of Mar. 31, 2020:

22,490,910 shares

As of Mar. 31, 2020:

465,389 shares

2) Number of treasury shares at the end of the period
As of Sep. 30, 2020:

451,856 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2020:

22,031,327 shares

Six months ended Sep. 30, 2019:22,167,878 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 theCompany’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
To prevent the spread of the COVID-19 pandemic, Iwaki plans to provide a video presentation of quarterly financial results on
November 27, 2020 (Friday) on our website instead of the conventional financial results meeting for institutional investors andanalysts. The video will be available on demand. Materials to be distributed at this event will be available on the website i nadvance.
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IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/21

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

Segment Information

8

1

IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/21

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, 2021, although the business climate in Japan remained
challenging because of COVID-19, there are currently signs of an economic recovery. However, companies arelikely to remain cautious about capital expenditures for the time being because of falling earnings and theincreasingly uncertain outlook.
In Japan, Iwaki took many actions based on the core policy of “winning by improving customer satisfaction.”
Overseas, there were activities encompassing 21 affiliated companies in 15 countries to increase sales.
To maintain a reliable supply of products for customers, the Iwaki Group continued to manufacture products
while taking various steps to prevent COVID -19 infections. In addition, group companies started using a newwarehouse for distribution operations, which is operated by an external party, in the current fiscal year in orderto further improve customer satisfaction by making deliveries faster and improving productivity.
Sales activities have been limited by restrictions in Japan and other countries on the ability to visit customers.
Selling pumps often requires thorough discussions with customers about selecting the proper models,installation procedures and many other items. Orders that require these activities were therefore affected by the
restriction on customer visits. Furthermore, results of operations at overseas consolidated subsidiaries fullyreflect the effects of the COVID-19 pandemic because this fiscal year’s first half includes the first six monthsof calendar 2020 at these subsidiaries.
As a result, continuing from the first quarter, sales were higher than one year earlier in thesemiconductor/liquid crystal market, but lower in all other markets.
Sales in Japan decreased 8.5% from one year earlier to 7,858 million yen as a result of sluggish sales in the
medical equipment and new energy markets. COVID-19 had a big impact on sales in other countries. All
markets were sluggish in Europe and the United States. Sales were down 19.4% to 1,146 million yen in Europe
and down 16.7% to 1,708 million yen in the United States. In Asia, sales increased 2.9% to 1,033 million yen
as the semiconductor/liquid crystal market remained strong in South Korea. Sales in China were up 66.8% to972 million yen because demand in the medical equipment market increased sharply.
By product category, sales of mainline metering pumps remained steady. Sales of magnetic drive pumps, which
are used in a broad range of markets, decreased mainl y because of restrictions on the ability to visit customers
for sales activities. Sales of pneumatic drive pumps for the semiconductor/liquid crystal market remained
strong.
Consequently, consolidated net sales decreased 6.6% to 13,159 million yen.
Earnings were affected by lower sales. As a result, operating profit decreased 31.7% to 711 million yen andordinary profit decreased 24.8% to 935 million yen. Due to extraordinary income for a gain resulting from thestep acquisition of IWAKI Nordic A/S in the first quarter of the current fiscal year, profit attributable toowners of parent increased 4.3% to 1,068 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 22,278 million yen,up 742 million yen from the end of the previous fiscal year. This was mainly due to increases of 902 million
yen in cash and deposits and 436 million yen in merchandise and finished goods, while there was a decrease of
802 million yen in notes and accounts receivable-trade. The balance of non-current assets was 9,279 million
yen at the end of the second quarter of the current fiscal year, up 688 million yen from the end of the previous
fiscal year. This was mainly because of an increase of 689 million yen in goodwill.
As a result, total assets increased 1,431 million yen from the end of the previous fiscal year to 31,557 million
yen.
2IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/21

Liabilities
The balance of current liabilities at the end of the second quarter of the current fiscal year was 7,759 million
yen, up 98 million yen from the end of the previous fiscal year. This was mainly due to an increase of 170
million yen in short-term borrowings. The balance of non-current liabilities was 2,613 million yen at the end of
the second quarter of the current fiscal year, up 672 million yen from the end of the previous fiscal year. Thiswas mainly due to an increase of 675 million yen in long-term borrowings.
As a result, total liabilities increased 770 million yen from the end of the previous fiscal year to 10,373 million
yen.
Net assets
The balance of net assets at the end of the second quarter of the current fiscal year was 21,184 million yen, up
660 million yen from the end of the previous fiscal year. The main factors include an increase of 683 million
yen in retained earnings.
Consequently, the capital adequacy ratio was 67.0% (68.0% 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 June 15, 2020.

3

IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/21

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/20(As of Mar. 31, 2020)(Thousands of yen)
Second quarter of FY3/21(As of Sep. 30, 2020)

AssetsCurrent assets
Cash and deposits

6,037,142

6,939,877

Notes and accounts receivable-trade

6,567,089

5,764,664

Electronically recorded monetary claims-operating

3,006,973

2,754,952

Merchandise and finished goods

2,274,529

2,711,212

41,86660,915

3,334,700

3,653,408

297,927

417,349

Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets(24,120)(23,519)

21,536,109

22,278,862

7,350,481

7,593,323

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment loss

(3,814,876)(3,953,684)

Buildings and structures, net

3,535,605

3,639,639

Machinery, equipment and vehicles

2,821,272

2,905,780(2,409,334)(2,485,604)

411,937

420,175

1,882,702

1,925,217(1,557,037)(1,622,798)

325,664

302,419

1,039,680

1,038,945

282,368

264,960(138,730)(130,794)

Leased assets, net

143,637

134,165

Construction in progress

129,925

70,903

Accumulated depreciation and impairment loss
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation and impairment loss
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation

Other
Accumulated depreciation
Other, net
Total property, plant and equipment

30,117

34,051(22,400)(23,540)

7,716

10,5105,594,168

5,616,759

1,764

691,599

Intangible assets
Goodwill
Trademark right

46,116

39,613Other258,369

365,859

Total intangible assets

306,250

1,097,072

Investment securities

1,743,860

1,617,416

Deferred tax assets

669,176

656,633

Other

277,068

291,194

2,690,105

2,565,244

8,590,524

9,279,076

30,126,634

31,557,938

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 FY3/21(Thousands of yen)
Second quarter of FY3/21(As of Sep. 30, 2020)

FY3/20(As of Mar. 31, 2020)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of long-term borrowings

4,681,495

4,722,452

768,050

938,659-

75,000

Lease obligations

55,90354,201

Income taxes payable

103,628

203,536

Provision for bonuses

725,113698,987

Provision for bonuses for directors (and other officers)

43,08017,814

Provision for product warranties

71,156

68,858Provision for loss on building demolition cost

11,40011,400Other

1,201,622

968,745

Total current liabilities

7,661,449

7,759,655

Non-current liabilities
Long-term borrowings-

675,000

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

105,20398,706

51,687

51,687912,345902,965

Asset retirement obligations

185,555

195,236

Other

686,570690,087

1,941,361

2,613,683

9,602,811

10,373,338

Share capital

1,044,691

1,044,691

Capital surplus

675,803675,384

Retained earnings

19,143,574

19,826,694

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

Treasury shares(475,730)(456,247)

Total shareholders’ equity

20,388,338

21,090,522

Valuation difference on available-for-sale securities

88,669107,650

Foreign currency translation adjustment

150,937

64,008Remeasurements of defined benefit plans(135,633)(131,572)

103,974

40,086

31,51053,991

20,523,823

21,184,600

30,126,634

31,557,938

Accumulated other comprehensive income

Total 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 FY3/21(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 FY3/20
First six months of FY3/21(Apr. 1, 2019 – Sep. 30, 2019) (Apr. 1, 2020 – Sep. 30, 2020)
Net sales

14,086,741

13,159,749

Cost of sales

9,240,702

8,688,758

Gross profit

4,846,039

4,470,991

Selling, general and administrative expenses

3,804,522

3,759,253

Operating profit

1,041,516

711,737

Interest income

5,846

1,760

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

16,49916,194

221,404

262,978

19,011

18,272

Total non-operating income

262,762299,206

Interest expenses

16,067

11,725

Foreign exchange losses

28,574

48,385

Loss on amortization of restricted stock remuneration

6,800

6,944

Other

9,256

8,608

Non-operating income

Non-operating expenses

Total non-operating expenses

60,69875,664

1,243,580

935,279

Gain on sales of non-current assets

9,111

-

Gain on sales of investment securities

153,234-

Ordinary profit
Extraordinary income

Gain on step acquisitions-

347,712

162,345

347,712

Loss on retirement of non-current assets

301

205

Loss on sales of investment securities

8,756

-

Total extraordinary income
Extraordinary losses

Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

6

9,058

205

1,396,868

1,282,786

362,784

214,666

1,034,083

1,068,120

9,542

(447)

1,024,541

1,068,567

IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/21

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)(Thousands of yen)First six months of FY3/20
First six months of FY3/21(Apr. 1, 2019 – Sep. 30, 2019) (Apr. 1, 2020 – Sep. 30, 2020)
Profit

1,034,083

1,068,120

Valuation difference on available-for-sale securities(134,795)

19,082Foreign currency translation adjustment(109,750)(65,206)

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method(18,365)

4,060(57,445)(23,309)

Total other comprehensive income(320,356)(65,372)

713,726

1,002,747

704,515

1,004,679

9,211(1,932)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 FY3/21(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Changes in Consolidated Subsidiaries During the Period
Not applicable.
During the first quarter of the current fiscal year, consolidated subsidiary Iwaki Europe GmbH acquired 60%of the stock of Iwaki Nordic A/S, which was an equity -method affiliate. As a result, beginning with the firstquarter, Iwaki Nordic A/S and its subsidiaries Iwaki Suomi Oy, Iwaki Norge AS and Iwaki Sverige AB wereadded to the scope of consolidation. This transaction did not involve a change in a specified subsidiary.
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.
Segment Information
Omitted because chemical pumps are the only business of the Iwaki Group.

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