November 12, 2018

Summary of Consolidated Financial Results
for the Second Quarter of Fiscal Year Ending March 31, 2019
(Six Months Ended September 30, 2018)[Japanese GAAP]
Company name:
Stock code:
Representative:
Contact:IWAKI CO.,LTD.
Listing: Tokyo Stock Exchange, Second Section
6237
URL: http://www.iwakipumps.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 14 , 2018
December 3, 2018
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
Yes (for institutional investors and analysts)
Holding of quarterly financial results meeting:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter Ended September 30, 2018
(April 1, 2018 – September 30, 2018)(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, 2018
14,704
9.4
1,209
19.1
1,533
13.2
1,068
5.1
Six months ended Sep. 30, 201713,435
8.4
1,015
31.6
1,354
24.7
1,016
30.4
Note: Comprehensive income (million yen) Six months ended Sep. 30, 2018:
978 (down 8.5%)
Six months ended Sep. 30, 2017: 1,069 (-%)
Net income per share Diluted net income per share
Yen

Yen

47.55
Six months ended Sep. 30, 201845.26
Six months ended Sep. 30, 2017
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) Consolidated financial position
Total assets
Net assets
Capital adequacy ratio
Million yen
Million yen%
As of Sep. 30, 2018
29,40019,300
65.0
As of Mar. 31, 2018
29,321
18,66062.9
Reference: Owner’s equity (million yen)
As of Sep. 30, 2018: 19,110
As of Mar. 31, 2018: 18,453
Note: Starting with the beginning of the first quarter of the current fiscal year, Iwaki is applying “Partial Amendments to
Accounting Standard for Tax Effect Accounting” (Accounting Standards Board of Japan (ASBJ) Statement No. 28,
February 16, 2018). Prior-year figures have been adjusted retroactively.

2. Dividends
1Q-endYen

Dividend per share
2Q-end3Q-endYear-end
Yen

Yen

Yen

Total
Yen

34.00
48.60
82.60
Fiscal year ended Mar. 31, 2018
12.00
Fiscal year ending Mar. 31, 2019
16.30
28.30
Fiscal year ending Mar. 31, 2019 (forecasts)
Note: Revisions to the most recently announced dividend forecasts: None
Iwaki conducted a 3-for-1 common stock split on July 1, 2018. The dividends for the fiscal year ended March 31, 2018
are the actual amounts before the stock split.

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2019
(April 1, 2018 – March 31, 2019)(Percentages represent year-on-year changes)
Profit attributable to
Net income
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Million yen% Million yen% Million yen% Million yen%
Yen
Full year
29,907
6.6
2,369
12.5
2,938
7.5
2,113
2.7
94.05
Note: Revisions to the most recently announced consolidated earnings forec asts: 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: None
2) 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, 2018:

22,490,910 shares

As of Mar. 31, 2018:

22,453,110 shares

As of Mar. 31, 2018:462 shares

2) Number of treasury shares at the end of the period
As of Sep. 30, 2018:

510 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2018:

22,465,647 shares

Six months ended Sep. 30, 2017:

22,453,037 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.
* 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
the Company’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 November 28, 201 8.
Materials to be distributed at this event will be available on the Company’s website immediately thereafter.

IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/19

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

Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

8Additional Information

8

Segment Information

8

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IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/19

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, 2019, the Japanese economy continued to recover at amoderate pace as corporate earnings and the employment environment improved. But the outlook is unclear due
to the rising cost of raw materials, the higher cost of labor caused by Japan’s labor shortage, U.S. -China trade
friction and other reasons.
In Japan, there were many activities at Iwaki for building stronger relationships with customers and developing
products that 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 toincrease sales.
Due to these activities, sales in the semiconductor/liquid crystal, medical equipment and surface treatment
equipment markets were higher than one year earlier. Sales remained strong in the semiconductor/liquid crystal
market. Moreover, the medical equipment market also performed well, driven by growth in demand for dialysis
equipment and biochemical analysis equipment for major customers. The surface treatment equipment market
also performed well, driven by demand for printed circuit board manufacturing equipment. In the chemicals
market, performance was firm because of a large number of orders in Japan but sales were down from one year
earlier in the water treatment and new energy markets.
Sales in Japan increased 9.5% from one year earlier to 9,096 million yen. Sales were driven by solid demand in
the semiconductor/liquid crystal and medical equipment markets. In addition, the chemicals market was strong. In
Europe, sales were up 16.8% to 1,427 million yen. Sluggish sales in the new energy market were offset bystrength in water treatment and chemicals markets. In the United States, sales increased 8.1% to 1,803 million yen
as sales were slow in the surface treatment equipment market but generally about the same as one year earlier,mainly in the water treatment market. In Asia, sales increased 6.0% to 1,345 million yen because of the strength
in the fiscal year’s first half of the semiconductor/liquid crystal market in South Korea and the high level ofactivity in the surface treatment equipment market in Taiwan. Sales in China were up 9.5% to 566 million yen
because of higher sales of biochemical analysis equipment and other product s in the medical equipment market.
By product category, sales of pneumatic drive pumps for the semiconductor/liquid crystal market continued to
grow. Sales of rotary displacement pumps for the medical equipment market and mainline magnetic drive pumps
were also higher.
Consequently, consolidated sales increased 9.4% to 14,704 million yen.
Earnings benefited from the growth in sales and other factors. Operating profit increased 19.1% to 1,209 million
yen, ordinary profit increased 13.2% to 1,533 million yen and profit attributable to owners of parent increased
5.1% to 1,068 million yen.
No business segment information is provided because chemical pumps are the only business of the Iwaki Group.
(2) Explanation of Financial Position
Starting with the beginning of the first quarter of the current fiscal year, Iwaki is applying “Partial Amendments
to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February 16, 2018). Prior -year
figures have been adjusted retroactively in order to facilitate comparisons.
AssetsThe balance of current assets at the end of the second quarter of the current fiscal year was 20,280 million yen,down 877 million yen from the end of the previous fiscal year. This was mainly due to a decrease of 1,321 million
yen in cash and deposits, while there were increases of 104 million yen in electronically recorded monetaryclaims-operating, 119 million yen in raw materials and supplies. The balance of non-current assets was 9,120
million yen at the end of the second quarter, up 957 million yen from the end of the previous fiscal year. This was
2

IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/19

mainly because of an increase of 1,031 million yen in property, plant and equipment.
As a result, total assets increased 79 million yen from the end of the previous fiscal year to 29,400 million yen.
Liabilities
The balance of current liabilities at the end of the second quarter of the current fiscal year was 7,898 million yen,down 614 million yen from the end of the previous fiscal year. This was mainly due to decreases of 156 million
yen in notes and accounts payable-trade and 134 million yen in income taxes payable. The balance of non-current
liabilities was 2,202 million yen at the end of the second quarter, up 55 million yen from the end of the previous
fiscal year. This was mainly due to a 37 million yen increase in lease obligations.
As a result, total liabilities decreased 559 million yen from the end of the previous fiscal year to 10,100 million
yen.
Net assets
The balance of net assets at the end of the second quarter of the current fiscal year was 19,300 million yen, up 639
million yen from the end of the previous fiscal year. The main factors include a 704 million yen increase inretained earnings.
Consequently, the capital adequacy ratio was 65.0% (62.9% at the end of the previous fiscal year).
(3) Explanation of Consolidated Earnings Forecasts and Other Forward -looking Statements
We maintain the consolidated forecasts that was disclosed in the press release concerning the revisions to theconsolidated earnings forecast and dividend forecast (dividend increase) (Japanese version only) dated November
6, 2018.

3

IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/19

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/18(As of Mar. 31, 2018)(Thousands of yen)
Second quarter of FY3/19(As of Sep. 30, 2018)

AssetsCurrent assets
Cash and deposits

6,251,621

4,929,960

Notes and accounts receivable-trade7,110,089

7,100,330

Electronically recorded monetary claims-operating

2,569,198

2,674,029

Merchandise and finished goods

1,999,571

1,948,098

14,82527,362Work in process
Raw materials and supplies

3,009,883

3,129,030

Other

228,159495,503

Allowance for doubtful accounts(25,195)(24,055)

21,158,154

20,280,260

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

4,682,032

7,227,271

Accumulated depreciation and impairment loss

(3,619,413)(3,547,484)

Buildings and structures, net

1,062,618

3,679,786

Machinery, equipment and vehicles

2,354,152

2,400,015(2,134,874)(2,171,074)

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

219,277

228,941

1,652,282

1,774,421(1,416,019)(1,401,669)

236,263372,751

1,042,918

1,042,382

385,923

374,825

Accumulated depreciation(242,638)(190,924)

Leased assets, net

143,284

183,900

Construction in progress

1,940,973

168,034

23,56925,200(16,282)(17,124)

7,286

8,075

4,652,622

5,683,872

3,781

3,276

Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Trademark right

71,79566,749Other

129,433

129,451

Total intangible assets

205,009

199,477

Investment securities

2,347,028

2,303,419

Deferred tax assets

682,934

639,792

Other

275,396

294,146

3,305,359

3,237,358

8,162,991

9,120,708

29,321,146

29,400,969

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 FY3/19

FY3/18(As of Mar. 31, 2018)(Thousands of yen)
Second quarter of FY3/19(As of Sep. 30, 2018)

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable

5,117,443

4,960,522

657,415

680,400

Lease obligations

62,88971,652

Income taxes payable

497,919

363,738

Provision for bonuses

893,141

792,410

Provision for directors’ bonuses

98,681

31,330

Provision for product warranties

109,686

113,251

Other

1,076,268

885,186

Total current liabilities

8,513,444

7,898,491

Long-term loans payable

300,000

300,000

Lease obligations

94,892132,080

Non-current liabilities

Deferred tax liabilities

390

382

Provision for directors’ retirement benefits

151,043

151,043

Net defined benefit liability

806,457

809,217

Asset retirement obligations

180,356

181,186

Other

613,902628,260

2,147,041

2,202,171

10,660,486

10,100,662

Capital stock

1,018,250

1,044,691

Capital surplus

638,250

664,691

Retained earnings

16,157,603

16,862,177

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

Treasury shares

(480)

(559)

17,813,622

18,570,999

Valuation difference on available-for-sale securities

274,384

302,227

Foreign currency translation adjustment

403,156

271,663

Total shareholders’ equity
Accumulated other comprehensive income

Remeasurements of defined benefit plans(38,131)(34,059)

Total accumulated other comprehensive income

639,409539,832

207,627

189,474

18,660,659

19,300,306

29,321,146

29,400,969

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

5

IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/19(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Six-month Period)First six months of FY3/18(Apr. 1, 2017 – Sep. 30, 2017)(Thousands of yen)First six months of FY3/19(Apr. 1, 2018 – Sep. 30, 2018)

Net sales

13,435,975

14,704,642

Cost of sales

8,919,204

9,568,868

Gross profit

4,516,771

5,135,774

Selling, general and administrative expenses

3,501,434

3,926,016

Operating profit

1,015,336

1,209,758

Interest income

13,70913,358Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains

20,34523,273

238,755

312,769

63,392-Other

25,26833,826

Total non-operating income

361,471383,227

13,996

15,516

Non-operating income

Non-operating expenses
Interest expenses
Foreign exchange losses

-

6,609

Business establishment transfer expenses-

30,900

7,956

6,000

Other
Total non-operating expenses

21,95359,027

1,354,854

1,533,958

Gain on sales of non-current assets

699-

Total extraordinary income

699-

Loss on retirement of non-current assets

1,925

1,722

Total extraordinary losses

1,925

1,722

1,353,628

1,532,236

324,120452,837

1,029,507

1,079,399

13,277

11,092

1,016,230

1,068,306

Ordinary profit
Extraordinary income

Extraordinary losses

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

6

IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/19

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)First six months of FY3/18(Apr. 1, 2017 – Sep. 30, 2017)
Profit

1,029,507(Thousands of yen)First six months of FY3/19(Apr. 1, 2018 – Sep. 30, 2018)
1,079,399

Other comprehensive income
Valuation difference on available-for-sale securities

59,83927,843Foreign currency translation adjustment(41,062)(114,673)

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

19,940

4,072

1,128

(18,083)

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

7

39,846(100,842)

1,069,353

978,557

1,055,978968,729

13,375

9,827

IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/19(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 the effective
tax rate after the application of tax effect accounting with respect to profit b efore income taxes during the fiscal
year, and multiplying that rate by the quarterly profit before income taxes.
Additional Information
Application of Partial Amendments to Accounting Standard for Tax Effect Accounting, etc.
Starting with the beginning of the first quarter of the current fiscal year, Iwaki is applying “Partial Amendments
to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February 16, 2018) and otherrelated pronouncements. Accordingly, deferred tax assets and deferr ed tax liabilities have been presented in theinvestments and other assets section and the non-current liabilities section of the balance sheet, respectively.
Segment Information
Segment information
I. First six months of FY3/18 (Apr. 1, 2017 – Sep. 30, 2017)
Omitted because chemical pumps are the only business of the Iwaki Group.
II. First six months of FY3/19 (Apr. 1, 2018 – Sep. 30, 2018)
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