February 14, 2020

Summary of Consolidated Financial Results
for the Third Quarter of Fiscal Year Ending March 31, 2020
(Nine Months Ended December 31, 2019)[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:
February 14, 2020
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: None
Holding of quarterly financial results meeting:None(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Third Quarter Ended December 31, 2019
(April 1, 2019 – December 31, 2019)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Million yen% Million yen% Million yen% Million yen%
Nine months ended Dec. 31, 2019
21,304 (3.0)
1,592 (14.8)
1,950 (15.0)
1,524(8.4)
Nine months ended Dec. 31, 2018
21,955
6.1
1,870
6.8
2,293
1.8
1,663(4.5)
Note: Comprehensive income (million yen) Nine months ended Dec. 31, 2019: 1,188 (down 26.8%)
Nine months ended Dec. 31, 2018: 1,624 (down 14.9%)
Diluted net income per
Net income per share
shareYen

Yen

Nine months ended Dec. 31, 2019
68.93
Nine months ended Dec. 31, 201874.03
Note: Iwaki conducted a 3-for-1 common stock split on July 1, 2018. Net income per share has been calculated as if this stocksplit 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 Dec. 31, 201929,42920,018
67.9
As of Mar. 31, 201930,463
20,14865.5
Reference: Owner’s equity (million yen)
As of Dec. 31, 2019: 19,988
As of Mar. 31, 2019: 19,952

2. Dividends
1Q-end2Q-endYen

Fiscal year ended Mar. 31, 2019
Fiscal year ending Mar. 31, 2020
Fiscal year ending Mar. 31, 2020 (forecasts)
Note: Revisions to the most recently announced dividend forecasts: None

Dividend per share
3Q-endYear-endTotal

YenYen

Yen

Yen

12.00
13.00

-16.90

28.90

17.50

30.50

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2020 (April 1, 2019 – March 31, 2020)(Percentages represent year-on-year changes)
Profit attributable to Net income perNet sales
Operating profit
Ordinary profit
owners of parent
shareMillion yen%Million yen% Million yen% Million yen%Yen
Full year
29,067 (0.4)
2,116(9.5)
2,551(10.4)
1,977(8.6)
89.49
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 FinancialStatements” 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 Dec. 31, 2019:22,490,910 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 Dec. 31, 2019:465,389 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2019: 22,120,426 shares

Nine months ended Dec. 31, 2018:

22,473,928 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 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 th eCompany’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.

IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/20

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Perfor mance2(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 Nine-month Period

6

Quarterly Consolidated Statement of Comprehensive Income
For the Nine-month Period

7(3) Notes to Quarterly Consolidated Financial Statements

8Going Concern Assumption

8Significant Changes in Shareholders’ Equity

8

Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

8Segment Information

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IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/20

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first nine months of the fiscal year ending March 31, 2020, the Japanese economy continued torecover at a moderate pace as corporate capital investment increased against the backdrop of high levels ofcorporate profits. On the other hand, as exports remain weak, the outlook remains unclear due to uncertainties
in overseas economies, such as trends in trade issues, the pros pects for the Chinese economy, and the UK’s
withdrawal from the EU.
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 “w inning 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 medical equipment, water
treatment and chemicals markets. In the semiconductor/liquid crystal market, demand is recovering, but theupturn was not enough to make up for the decline in the first half and as a result sales were sluggish. The
related surface treatment equipment market is recovering along with the semiconductor/liquid crystal market,
but the recovery has generally been weak.
Sales in Japan decreased 5.2% from one year earlier to 12,861 million yen as a result of sluggish sales in thesemiconductor/liquid crystal market and weak sales in the surface treatment equipment market. In Europe,sales increased 2.0% to 2,088 million yen as a result of significant growth in the new energy market and strong
sales in the chemicals market. In the United States, sales increased 9.1% to 3,063 million yen as a result ofhigher sales in the medical equipment and chemicals markets, and strong sales in the water treatment market.
In Asia, sales decreased 13.3% to 1,669 million yen because of a lower demand in the semiconductor/liquid
crystal market in South Korea. Sales in China were down 1.2% to 926 million yen because of a lower sales inthe semiconductor/liquid crystal market while sales were strong in the medical equipment market.
By product category, sales of mainline metering pumps were steady. Sales of magnetic drive pumps declined
slightly but generally about the same as one year earlier. Air pumps for the medical equipment market
remained steady. Sales of pneumatic drive pumps for the semiconductor/liquid crystal market were weak as
demand for semiconductor-related equipment did not recover fully.
Consequently, consolidated net sales decreased 3.0% to 21,304 million yen.
Our efforts to reduce costs did not completely offset the impact of reduced sales. As a result, operating profit
decreased 14.8% to 1,592 million yen, ordinary profit decreased 15.0% to 1,950 million yen and profit
attributable to owners of parent decreased 8.4% to 1,524 million yen.
No business segment information is provided because chemical pumps are the only business o f the Iwaki
Group.
(2) Explanation of Financial Position
AssetsThe balance of current assets at the end of the third quarter of the current fiscal year was 20,999 million yen,down 440 million yen from the end of the previous fiscal year. This was mainly due to an increase of 513
million yen in electronically recorded monetary claims-operating, while there were decreases of 618 million
yen in notes and accounts receivable-trade and 159 million yen in raw materials and supplies. The balance of
non-current assets was 8,429 million yen at the end of the third quarter of the current fiscal year, down 593
million yen from the end of the previous fiscal year. This was mainly because of a decrease of 623 million yen
in investment securities.
As a result, total assets decreased 1,033 million yen from the end of the previous fiscal year to 29,429 millionyen.

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IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/20

Liabilities
The balance of current liabilities at the end of the third quarter of the current fiscal year was 7,737 million yen,down 939 million yen from the end of the previous fiscal year. This was mainly due to decreases of 682 million
yen in notes and accounts payable-trade and 471 million yen in provision for bonuses. The balance of
non-current liabilities was 1,673 million yen at the end of the third quarter of the current fiscal year, up 36
million yen from the end of the previous fiscal year.
As a result, total liabilities decreased 903 million yen from the end of the previous fiscal year to 9,411 millionyen.
Net assets
The balance of net assets at the end of the third quarter of the current fiscal year was 20,018 million yen, down
130 million yen from the end of the previous fiscal year. The main factors include the purchase of treasury
shares of 475 million yen, decreases of 107 million yen in valuation difference on available-for-sale securities,
223 million yen in foreign currency translation adjustment and 166 million yen in non-controlling interests,
while there was an increase of 858 million yen in retained earnings.
Consequently, the capital adequacy ratio was 67.9% (65.5% 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 “ Revisions to the Fiscal
Year Forecast” dated November 8, 2019 (Japanese version only).

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IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/20

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/19(As of Mar. 31, 2019)(Thousands of yen)Third quarter of FY3/20(As of Dec. 31, 2019)

AssetsCurrent assets
Cash and deposits

5,580,286

5,453,095

Notes and accounts receivable-trade

6,873,408

6,255,014

Electronically recorded monetary claims-operating

2,738,020

3,251,592

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

55,846

81,2882,214,986

2,111,096

29,785

155,1523,522,791

3,363,659

Other446,732

352,526

Allowance for doubtful accounts(21,831)(23,441)

21,440,024

20,999,983

Total current assets
Non-current assetsProperty, 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

7,332,908(3,646,791)(3,756,039)

3,657,232

3,576,868

2,676,850

2,766,556(2,247,889)(2,350,496)

428,960

416,060

1,795,534

1,855,505(1,465,444)(1,533,588)

330,089

321,916

1,041,879

1,037,431

338,538

356,576(185,666)(220,144)

152,872

136,432

Construction in progress

11,07142,050Other

27,17828,113(19,444)(20,567)

Land
Leased assets
Accumulated depreciation
Leased assets, net

Accumulated depreciation
Other, net
Total property, plant and equipment

7,733

7,545

5,629,839

5,538,306

Intangible assets
Goodwill

2,772

2,016

Trademark right

58,57348,354Other

132,297

236,662

Total intangible assets

193,643

287,033

Investment securities

2,275,208

1,651,660Deferred tax assets

634,431

671,364

Investments and other assets

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

4290,448

281,260

3,200,088

2,604,286

9,023,571

8,429,626

30,463,596

29,429,609

IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/20

FY3/19(As of Mar. 31, 2019)(Thousands of yen)
Third quarter of FY3/20(As of Dec. 31, 2019)

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

5,184,397

4,501,679

951,205

1,149,672

Lease obligations

64,97855,117

Income taxes payable

250,186

212,524

Provision for bonuses

881,140

409,952

Provision for bonuses for directors (and other officers)

140,000

49,310

Provision for product warranties

97,261

71,008

Other

1,108,559

1,288,570

Total current liabilities

8,677,727

7,737,835

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

106,058

99,47351,687

51,687659,105

650,870

Asset retirement obligations

184,387

185,658

Other

636,283

686,065

Non-current liabilities

Total non-current liabilities
Total liabilities

1,637,521

1,673,754

10,315,249

9,411,590

1,044,691

1,044,691

Net assets
Shareholders’ equity
Share capital
Capital surplus

664,691

675,803

Retained earnings

17,687,437

18,545,779(559)(475,730)

19,396,260

19,790,544

Valuation difference on available-for-sale securities

232,113

124,461

Foreign currency translation adjustment

241,969

18,856

Remeasurements of defined benefit plans

81,87754,329Total accumulated other comprehensive income

555,960

197,647

196,12729,828

20,148,347

20,018,019

30,463,596

29,429,609

Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income

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

5IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/20(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Nine-month Period)(Thousands of yen)First nine months of FY3/19
First nine months of FY3/20(Apr. 1, 2018 – Dec. 31, 2018) (Apr. 1, 2019 – Dec. 31, 2019)
Net sales

21,955,656

21,304,907

Cost of sales

14,212,665

13,965,034

Gross profit

7,742,991

7,339,873

Selling, general and administrative expenses

5,872,765

5,747,203

Operating profit

1,870,225

1,592,669

Interest income

19,327

7,471

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

20,34420,874428,221326,446

46,34077,602

Total non-operating income

514,233

432,395

Interest expenses

23,11923,710Foreign exchange losses

27,54632,050Business establishment transfer expenses

30,900-Other9,090

18,732Non-operating income

Non-operating expenses

Total non-operating expenses

90,65774,4932,293,800

1,950,571

Gain on sales of non-current assets-9,111Gain on sales of investment securities-153,234

Total extraordinary income-162,345

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Loss on sales of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

6172-

1,736

1,336-

8,756

1,908

10,092

2,291,892

2,102,824

613,379555,718

1,678,512

1,547,105

14,72522,343

1,663,786

1,524,761

IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/20

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)(Thousands of yen)First nine months of FY3/19
First nine months of FY3/20(Apr. 1, 2018 – Dec. 31, 2018) (Apr. 1, 2019 – Dec. 31, 2019)
Profit

1,678,512

1,547,105

Valuation difference on available-for-sale securities(46,798)(107,530)

Foreign currency translation adjustment(11,410)(145,868)

7,329(27,547)(3,615)(78,120)(54,494)(359,066)

1,624,017

1,188,038

1,609,793

1,166,448

14,223

21,589Other 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 ofparent
Comprehensive income attributable tonon-controlling interests

7

IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/20(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Iwaki purchased 484,500 treasury shares pursuant to resolution of the Board of Directors meeting on May 14,
2019. In addition, following the resolution of the Board of Directors meeting on July 19, 2019, Iwaki so ld
24,376 shares for directors (excluding outside directors) and senior officers of the Company as restricted stockcompensation.
As a result, treasury shares increased 475 million yen during the first nine months of the current fiscal year to475 million yen at the end of the third quarter.
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 acc epted in Japan, for the convenience ofreaders who prefer an English translation.

8