May 14, 2018

Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2018
[Japanese GAAP]
Company name: IWAKI CO.,LTD.
Stock code:
6237
Representative:
Shigeru Fujinaka, President
Contact:
Kenji Matsuda, Senior Executive Director
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:

Listing: Tokyo Stock Exchange, Second Section
URL: http://www.iwakipumps.jp/
Tel: (81)3-3254-2931
June 28, 2018
June 29, 2018
June 29, 2018
Yes
Yes (for institutional investors and analysts)(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2018 (April 1, 2017 – March 31, 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%
Fiscal year ended Mar. 31, 2018
28,067
11.6
2,106
43.8
2,733
27.9
2,059
21.8
Fiscal year ended Mar. 31, 201725,146
1.3
1,465
(4.4)
2,136
7.3
1,690
10.7
Note: Comprehensive income (million yen) Fiscal year ended Mar. 31, 2018: 2,299 (up 54.5 %)Fiscal year ended Mar. 31, 2017: 1,488 (up 161.8%)
Net income per
share

Diluted net
Return on equity
income per share

Yen

Yen

Fiscal year ended Mar. 31, 2018
275.16
Fiscal year ended Mar. 31, 2017
225.93
Reference: Equity in earnings of affiliates (million yen):

Ordinary profit
on total assets

%

11.7
10.3
Fiscal year ended Mar. 31, 2018: 507
Fiscal year ended Mar. 31, 2017: 488

Operating profit
to net sales

%

%

9.8
8.3

7.5
5.8

(2) Consolidated financial position
Capital adequacy
Net assets per shareratio
Million yen
Million yen%
Yen29,365
18,66062.8
2,465.59
26,253
16,90663.7
2,233.84
As of Mar. 31, 2018: 18,453
As of Mar. 31, 2017: 16,718

Total assets

Net assets

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Million yen
1,830
2,001

Million yen(1,459)(150)

Million yen(544)(1,151)

As of Mar. 31, 2018
As of Mar. 31, 2017
Reference: Owner’s equity (million yen)

(3) Consolidated cash flows

Fiscal year ended Mar. 31, 2018
Fiscal year ended Mar. 31, 2017

Cash and cash
equivalents at end of
periodMillion yen
5,964
6,111

2. Dividends
Dividend per share
1Q-endFiscal year ended Mar. 31, 2017
Fiscal year ended Mar. 31, 2018
Fiscal year ending Mar. 31, 2019
(forecast)Year-end

Total

Total
dividends

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

2Q-end3Q-end

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

-

30.00
34.00

-

38.00
48.60

68.00
82.60

508
618

30.1
30.0

3.1
3.5

-

27.60

-

53.20

80.80

30.0

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2019 (April 1, 2018 – March 31, 2019)
Net salesFirst half
Full year

Million yen
14,23529,427

Operating profit
%
6.0
4.8

Million yen
879
2,366

%
(13.4)
12.3(Percentages represent year-on-year changes)
Profit attributable to
Net income per
Ordinary profit
owners of parent
shareMillion yen%
Million yen%
Yen
1,081 (20.2)
688 (32.3)
91.95
2,804
2.6
2,015
(2.1)
269.27

* 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: None
2) 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, 2018:

7,484,370 shares

As of Mar. 31, 2017:

7,484,370 shares

As of Mar. 31, 2017:18 shares

2) Number of treasury shares at the end of the period
As of Mar. 31, 2018:

154 shares

3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2018:

7,484,306 sharesFiscal year ended Mar. 31, 2017:

7,484,357 shares

Reference: Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2018 (April 1, 2017– March 31, 2018)(1) Non-consolidated results of operations(Percentages represent year-on-year changes)

Fiscal year ended Mar. 31, 2018
Fiscal year ended Mar. 31, 2017

Net sales
Million yen%
23,203 11.7
20,768
0.8

Fiscal year ended Mar. 31, 2018
Fiscal year ended Mar. 31, 2017

Net income per shareYen
203.11
172.35

Operating profit
Million yen
%
1,566
79.4
873 (17.3)

Ordinary profit
Million yen
%
2,023
26.7
1,597
4.9

ProfitMillion yen
1,520
1,289

%
17.8
14.1

Diluted net income per share
Yen-(2) Non-consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
Million yen
Million yen%
Yen
As of Mar. 31, 201825,48815,54861.0
2,077.56
As of Mar. 31, 2017
22,918
14,544
63.5
1,943.34
Reference: Shareholders’ equity (million yen):
As of Mar. 31, 2018: 15,548
As of Mar. 31, 2017: 14,544
Reason for the difference between non-consolidated financial results for the fiscal years ended March 31, 2017 and 2018
The main reason for differences between financial results in the past two fiscal years is higher sales and profits at all lev els
backed mainly by strong sales in the semiconductor/liquid crystal market.
* 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 val id and information available to
the Company’s management at the time the materials were prepared, but are not promises by the Company regarding future
performance. Actual results may differ materially from the forecasts. Please refer to “1. Overview of Res ults of Operations,(1) Results of Operations, 2) Outlook” on page 2 for forecast assumptions and notes of caution for usage.
How to view supplementary materials for financial results
The Company plans to hold a financial results meeting for institutional investors and analysts on May 31, 2018. Materials to
be distributed at this event will be available on the Company’s website in advance.

IWAKI CO.,LTD. (6237) Financial Results for FY3/18

Contents of Attachments
1. Overview of Results of Operations

2(1) Results of Operations

2(2) Financial Position

3

2. Management Policies

4(1) Basic Management Policy

4(2) Performance Targets

4(3) Medium- and Long-term Business Strategy

4(4) Challenges

5

3. Basic Approach to the Selection of Accounting Standards

6

4. Consolidated Financial Statements and Notes

7(1) Consolidated Balance Sheet

7(2) Consolidated Statements of Income and Comprehensive Income

9

Consolidated Statement of Income

9

Consolidated Statement of Comprehensive Income

10(3) Consolidated Statement of Changes in Equity

11(4) Consolidated Statement of Cash Flows

13(5) Notes to Consolidated Financial Statements

14

Going Concern Assumption

14

Reclassifications

14

Segment and Other Information

14

Per Share Information

15

Subsequent Events

16

5. Others

16

Changes in Directors

16

1

IWAKI CO.,LTD. (6237) Financial Results for FY3/18

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, 2018, the gradual recovery of the Japanese economy continued ascapital expenditures, jobs and personal income were all strong. The direction of the global economy remained
unclear amid volatility of stock prices and exchange rates in response to U.S. trade protectionism and geopoliticalrisk involving North Korea and other regions.
Markets where the Iwaki Group operates were strong, particularly in the semiconductor and liquid crystal sectors.
The result was record-high fiscal year sales.
In Japan, there were workplace sales activities to build stronger relationships with customers. There were alsomeasures aimed at better meeting the needs of customers, such as by delivering products faster, based on the corepolicy of “competing and winning.” Overseas, Iwaki strengthened marketing activities in Europe and worked
with its 21 affiliated companies in 15 countries to increase sales. Activities in the United States were focused
mainly on the aquatic business.
Due to these activities, sales in all six major markets of Iwaki were higher than one year earlier. Sales wereparticularly strong in the semiconductor/liquid crystal and surface treatment equipment markets. The main
reasons are the increasing demand for semiconductors in electronic equipment of all types and growing demandfor displays used in smartphones and automotive products. Sales in the water treatment market in creased in part
because of synergies with TechnoECHO Co., Ltd. In the medical equipment market, biochemi cal analysis
equipment sold in China was a major source of sales growth. Sales in the chemicals market increased along withhigher demand for chemicals used for semiconductor/liquid crystal applications. Capital expenditures for wind
power generation in Europe were the primary source of sales growth in the new energy market.
Sales in Japan increased 9.5% from one year earlier to 17,452 million yen. Sales were driven by firm demand in
the semiconductor/liquid crystal, surface treatment equipment and chemicals markets. In Europe, sales were up
11.9% to 2,541 million yen because of strength in the new energy market. In the United States, sales increased
5.2% to 3,444 million yen, chiefly in the water treatment market. In Asia, mainly South Korea and Taiwan, highlevels of activity in the semiconductor/liquid crystal and surface treatment equipment markets resulted in sales
growth of 29.2% to 2,708 million yen. Sales in China were up 33.6% to 1,021 million yen because of strong
demand in the medical equipment market.
By product, sales of pneumatic drive pumps for the semiconductor/liquid crystal market continued to grow. Salesof metering pumps for the water treatment market and rotary displacement pumps for the medical equipment
market were also higher. Mainline magnetic drive pumps sales were strong.
Consequently, consolidated sales increased 11.6% to 28,067 million yen.
Earnings benefited from the growth in sales. Operating profit increased 43.8% to 2,106 million yen, ordinary
profit increased 27.9% to 2,733 million yen and profit attributable to owners of parent increased 21.8% to 2,059
million yen.
No business segment information is provided because chemical pumps are the only business of the Iwaki Group.
2) Outlook
In the fiscal year ending on March 31, 2019, the outlook is for a continuation of the gradual recovery of theJapanese economy as consumer spending recovers and capital expenditures climb slowly. The outlook for the
global economy is likely to remain uncertain. Major sources of concern are U.S. trade protectionism, Britain’s
negotiations to leave the EU and structural reforms of the Chinese economy.
In the semiconductor/liquid crystal and surface treatment equipment markets, we foresee a continuation of thevery high level of investments in Asia for the time being. In the medical equipment market, we expect that2

IWAKI CO.,LTD. (6237) Financial Results for FY3/18

demand for biochemical analysis equipment in China will increase. In the water treatment market, demand forwater treatment chemical input units at cooling towers is expected to increase due to the high level of building
construction activity in Japan leading up to the 2020 Tokyo Olympics. We also anticipate benefits from increasing
demand associated with synergies with the residual chlorine meter business of TechnoECHO. In the new energy
market, capital expenditures will probably remain high for lithium-ion and other types of batteries, mainly for
automobiles made in China. In the chemicals market, demand for all types of chemicals used insemiconductor/liquid crystal applications is continuing to climb. Also, as in the new energy market, we expect
strong demand for electrolytes and other materials used during the production of lithium -ion rechargeable
batteries.
While focusing on the theme of “winning by improving customer satisfaction,” we will promote many activities
in Japan for meeting the demand for replacement parts and achieving growth of maintenance service operations.
Overseas, we will create even closer ties with affiliated companies with goal of increasing sales and earnings bysending people in Japan to key overseas markets and reinforcing marketing and sales activities.
Based on this outlook, we forecast a 4.8% increase in consolidated sales to 29,427 million yen, a 12.3% increasein operating profit to 2,366 million yen, a 2.6% increase in ordinary profit to 2,804 million yen, and a 2.1%
decrease in profit attributable to owners of parent to 2,015 million yen in the fiscal year ending on March 31,
2019.
These projections are based on information available at the time of release of this report. Actual results may differ
from projections due to a variety of factors.
(2) Financial Position
1) Assets, liabilities and net assets
AssetsThe balance of current assets at the end of the current fiscal year was 21,749 million yen, up 1,917 million yen
from the end of the previous fiscal year. This was mainly due to increases of 675 million yen in notes andaccounts receivable-trade, 580 million yen in electronically recorded monetary claims-operating and 572 million
yen in raw materials and supplies. The balance of non-current assets was 7,615 million yen at the end of thecurrent fiscal year, up 1,193 million yen from the end of the previous fiscal year. This was mainly because of anincrease of 1,022 million yen in construction in progress.
As a result, total assets increased 3,111 million yen from the end of the previous fiscal year to 29,365 million yen.
Liabilities
The balance of current liabilities at the end of the current fiscal year was 8,513 million yen, up 1,481 million yen
from the end of the previous fiscal year. This was mainly due to increases of 771 million yen in notes andaccounts payable-trade, 81 million yen in short-term loans payable, 197 million yen in income taxes payable and
176 million yen in provision for bonuses. The balance of non-current liabilities was 2,191 million yen at the endof the current fiscal year, down 124 million yen from the end of the previous fiscal year. This was mainly due to a
27 million yen decrease in deferred tax liabilities and a 79 million yen decrease in net defined benefit liability.
As a result, total liabilities increased 1,357 million yen from the end of the previous fiscal year to 10,704 million
yen.
Net assets
The balance of net assets was 18,660 million yen at the end of the current fiscal year, up 1,754 million yen fromthe end of the previous fiscal year. The main factors include a 1,520 million yen increase in retained earnings.
Consequently, the capital adequacy ratio was 62.8% (63.7% at the end of the previous fiscal year).

3

IWAKI CO.,LTD. (6237) Financial Results for FY3/18

2) Cash flows
Cash and cash equivalents (hereinafter, “net cash”) at the end of the current fiscal year was 5,964 million yen,down 146 million yen over the end of the previous fiscal year (an increase of 685 million yen at the end of theprevious 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 1,830 million yen (2,001 million yen provided in the previous fiscal
year). Positive factors include profit before income taxes of 2,716 million yen, which offset negative factors
including an increase in notes and accounts receivable-trade of 1,247 million yen.
Cash flows from investing activities
Net cash used in investing activities was 1,459 million yen (150 million yen used in the previous fiscal year).
Negative factors include purchase of property, plant and equipment of 1,314 million yen, which offset positive
factors including proceeds from redemption of securities of 110 million yen.
Cash flows from financing activities
Net cash used in financing activities was 544 million yen (1,151 million yen used in the previous fiscal year). The
main factors include cash dividends paid of 538 million yen.
2. Management Policies(1) Basic Management Policy
The Iwaki Group is guided by its Pledge of “always being at the forefront of efforts to advance development in
the global markets, industries and communities where we operate while building trust with, and contributing to
the happiness of everyone we interact with.” Growth in sales and earnings is not our only objective. We want tobe an organization that uses chemical pumps and associated technologies to earn the trust of companies in manyindustries. We do much more than supply chemical pumps. We are also dedicated to using these pumps to provide
functions involving the movement of liquid chemicals. Based on the b elief that all employees are points ofcontact with customers, we have programs to upgrade the skills and commitment of everyone at the Group. Our
goal is sustained growth in sales and earnings backed by four basic policies: improving the quality of ourorganization, enhancing skills needed to serve customers, building a stable profit structure and maintaining asound compliance system.
(2) Performance Targets
The Iwaki Group places priority on sales, the operating margin and the return on equity based on net income. The
goal is to grow consistently while maintaining a well-balanced financial position.
(3) Medium- and Long-term Business Strategy
Chemical pumps, which are the main product of the Iwaki Group, are a mature product category. This makes it
difficult to develop innovative products that incorporate revolutionary technologies. As a global manufacturer ofthese pumps, the Iwaki Group is constantly concentrating on developing new advanced products ahead ofcompetitors. While new products are important, we believe that the most important reason customers worldwide
choose our products is our ability to use our experience, new technologies and other knowledge to meet a broad
spectrum of customers’ demands with speed and accuracy.
Customers can rely on us for hardware support extending from ideas for new systems to the creation of unitized
products and the fabrication of customized pumps of all types. We also have strengths involving aspects of4

IWAKI CO.,LTD. (6237) Financial Results for FY3/18

operations other than hardware, such as delivery times, cost, and services. These skills enable us to meet all therequirements of our customers. In addition, we are aware of the importance of constantly upgrading our ability toserve our customers. This is why we have many activities for keeping the entire group foc used on the theme ofoperating as a “solution company” that can earn the trust of customers in all our markets around the world.
We are positioning the medical equipment market, water treatment market and new energy market as strategic
growth markets. All three markets are growing and have a relatively low vulnerability to changes in economic
conditions. We are targeting these markets by combining our group’s expertise in precisely meeting customers’
needs, using advanced technologies, performing effective sales activities and other fields. We believe thatmeeting the diverse needs of customers in Japan as well as in Europe, the United States, Asia and other key
regions will enable us to achieve sustained growth.
(4) Challenges
The Iwaki Group currently has the following major challenges.
1) Reinforce ability to develop products and technologies
To succeed in Japan and overseas as competition becomes increasingly heated, we must develop products withgreater speed and even more advanced technologies. As one step to accomplish this goal, we completed theconstruction of a new technology center in Iruma-gun in Saitama prefecture in April 2018. This gives us powerfulinfrastructure for basic research and the development of core technologies. We plan on creating an even moreadvanced R&D infrastructure, conducting joint research projects with companies and public -sector andacademic-sector partners, and taking other actions. The goal is to develop distinctive products that no competitor
can match. In addition, we are using project teams for the development of high-priority products and we are
speeding up the development process while maintaining the current high level of quality. These actions are aimed
at the timely development of products that accurately reflect market conditions and our customers’ requirements.
2) Strengthen and enlarge the solution business
The Iwaki Group needs to reinforce product development skills and centralize the management of customer
information held separately by our sales and maintenance organizations. Integrating this information will better
enable us to accurately identify the changing needs of customers and quickly respond to those needs. To
accomplish these goals, we will deepen ties between sales and maintenance operations and g ive our people moreskills concerning a variety of know-how about these operations. Meeting customers’ demands for advanced fluid
control is another theme. We will actively create proposals for systems covering many applications by using
simulation assessment tests with actual fluids. Furthermore, we will make more improvements to our before andafter maintenance services so that customers can use our products with confidence for many years. The aim isincreasing the Iwaki brand’s reputation for reliability. By further strengthening and enlarging the solutions
business, we plan to differentiate ourselves from competitors and earn the trust of customers worldwide as the“solution company.”3) Expand overseas operations
Manufacturers in Japan continue to move operations to other countries. That means we must work even harder ontargeting overseas demand in order to capture more orders outside Japan. Building a business framework capableof accurately meeting customers’ needs will be vital to overseas growth. T his is why we plan to increase overseas
procurement and manufacturing activities. In another move to expand our overseas operations, we will assemble
an even stronger IT infrastructure that can facilitate more cooperation among group companies.
Marketing activities that match the distinctive nature of each region will also be essential for growth overseas.
For some time now, we have been deepening ties between Japan and our overseas affiliated companies. In Europe,
United States and Asia, we will send people from Japan to strengthen the ability to conduct marketing activities in
5

IWAKI CO.,LTD. (6237) Financial Results for FY3/18

key regions that fully utilize specialized knowledge. We are also taking steps to strengthen departments
associated with these marketing activities.
4) Build an effective training system
We believe that the Iwaki Group must have an organizational structure and employee training program that canadapt to changes in our operating environment. We will return to the basic stance that “a company is only as goodas its people.” We are committed to developing the skills of our people based on our human resource policies andvision for the types of people we require in order to become a truly global organization capable of supplying theworld’s best products as All Iwaki.
5) Concentrate resources on strategic growth markets
Channeling resources to strategic growth markets will be essential for the sustained growth of the Iwaki Group.
We will continue to direct substantial resources to three strategic markets: water treatment, medical equipme nt
and new energy.
6) Build a business model for new activities
More growth in the scale of our operations will require the addition of business models for new activities. For
example, to continue growing in the United States, we plan to sell tanks for ra ising small fish that are used forgenetic research and toxicity tests. In Europe, we will strengthen activities for the sale of systems and units thatmatch the needs of users.
3. 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.

6

IWAKI CO.,LTD. (6237) Financial Results for FY3/18

4. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet
FY3/17(As of Mar. 31, 2017)(Thousands of yen)
FY3/18(As of Mar. 31, 2018)

AssetsCurrent assets
Cash and deposits

6,191,508

Notes and accounts receivable-trade

6,434,549

7,110,089

Electronically recorded monetary claims-operating

1,988,682

2,569,198

Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets

6,251,621

112,738-

1,901,218

1,999,571

30,155

14,8252,437,457

3,009,883

502,614591,576

Other

253,912228,159

Allowance for doubtful accounts(20,816)(25,195)

19,832,021

21,749,730

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
Land
Leased assets

4,636,9784,682,032(3,514,143)(3,619,413)

1,122,834

1,062,618

2,231,416

2,354,152(1,985,609)(2,134,874)

245,807219,277

1,601,918

1,652,282(1,375,807)(1,416,019)

226,111236,263

1,036,769

1,042,918

485,543

385,923(317,020)(242,638)

Leased assets, net

168,523

143,284

Construction in progress

918,646

1,940,973

Other

17,49423,569(11,924)(16,282)

Accumulated depreciation

Accumulated depreciation
Other, net

5,569

7,286

3,724,263

4,652,622

Goodwill

19,7183,781

Trademark right

Total property, plant and equipment
Intangible assets

86,21971,795

Other

117,682

129,433

Total intangible assets

223,619

205,009

Investment securities

2,064,168

2,347,028

Deferred tax assets

142,215

135,518

Investments and other assets

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

7

267,571

275,396

2,473,955

2,757,943

6,421,838

7,615,575

26,253,859

29,365,306

IWAKI CO.,LTD. (6237) Financial Results for FY3/18

FY3/17(As of Mar. 31, 2017)(Thousands of yen)
FY3/18(As of Mar. 31, 2018)

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

4,345,679

5,117,443

576,160

657,415

Lease obligations

75,51762,889

Income taxes payable

300,437

497,919

Provision for bonuses

716,527

893,141

Provision for directors’ bonuses

100,120

98,681

Provision for product warranties

98,485

109,686

Other

818,564

1,076,268

7,031,491

8,513,444

Long-term loans payable

300,000

300,000

Lease obligations

106,584

94,892

Total current liabilities
Non-current liabilities

Deferred tax liabilities

72,22644,550

Provision for directors’ retirement benefits

151,043

151,043

Net defined benefit liability

885,513806,457

Asset retirement obligations

205,500

180,356

Other

594,892

613,9022,315,762

2,191,201

9,347,253

10,704,646

Capital stock

1,018,250

1,018,250

Capital surplus

638,250

638,250

Retained earnings

14,637,110

16,157,603

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

Treasury shares

(30)

(480)

16,293,580

17,813,622

Valuation difference on available-for-sale securities

250,907274,384

Foreign currency translation adjustment

309,458

403,156

Remeasurements of defined benefit plans(135,090)(38,131)425,274

639,409

187,750

207,627

16,906,605

18,660,659

26,253,859

29,365,306

Total shareholders’ equity
Accumulated other comprehensive income

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

8

IWAKI CO.,LTD. (6237) Financial Results for FY3/18(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income
FY3/17(Apr. 1, 2016 – Mar. 31, 2017)(Thousands of yen)
FY3/18(Apr. 1, 2017 – Mar. 31, 2018)

Net sales

25,146,605

28,067,720

Cost of sales

16,971,391

18,658,610

Gross profit

8,175,213

9,409,110

Selling, general and administrative expenses

6,710,002

7,302,640

Operating profit

1,465,210

2,106,469

Interest income

30,57330,012

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

26,25528,670488,458

507,677

118,01470,107

Non-operating income

Other

66,07552,422

Total non-operating income

729,377

688,891

Non-operating expenses
Interest expenses

25,69931,118Commission fee

5,003

19,426

Rent expenses

20,563

6,557

Other

6,615

4,452

Total non-operating expenses

57,882

61,5552,136,705

2,733,806

Gain on sales of non-current assets

19,996

1,547

Total extraordinary income

19,996

1,547

Loss on retirement of non-current assets
Provision for loss on liquidation of subsidiaries andassociates
Provision for loss on building demolition cost

1,703

4,203

8,439

-

-

14,682

Total extraordinary losses

10,142

18,885

Ordinary profit
Extraordinary income

Extraordinary losses

Profit before income taxes

2,146,559

2,716,468

Income taxes-current

534,490792,021

Income taxes-deferred(84,219)(160,152)

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

9450,271

631,868

1,696,288

2,084,599

5,383

25,234

1,690,904

2,059,364

IWAKI CO.,LTD. (6237) Financial Results for FY3/18

Consolidated Statement of Comprehensive Income
FY3/17(Apr. 1, 2016 – Mar. 31, 2017)(Thousands of yen)
FY3/18(Apr. 1, 2017 – Mar. 31, 2018)

1,696,288

2,084,599

Valuation difference on available-for-sale securities(120,131)

23,476

Foreign currency translation adjustment(133,569)

49,134

105,809

96,959(59,856)

45,739(207,748)

215,310

1,488,539

2,299,909

1,484,620

2,273,498

3,919

26,410

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

10

IWAKI CO.,LTD. (6237) Financial Results for FY3/18(3) Consolidated Statement of Changes in Equity
FY3/17 (Apr. 1, 2016 – Mar. 31, 2017)(Thousands of yen)
Shareholders’ equity
Capital stock
Balance at beginningof current period
Changes of items
during period

Capital surplus

1,018,250

Retained earnings

638,250Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

Total shareholders’equityTreasury shares

13,760,504-

15,417,004(814,298)(814,298)

1,690,904

1,690,904
(30)

(30)

-

-

876,605(30)

876,575

1,018,250

638,250

14,637,110(30)

16,293,580(Thousands of yen)
Accumulated other comprehensive income

Balance at beginningof current period
Changes of items
during period

Valuationdifference on
available-for-salesecurities

Foreigncurrencytranslation
adjustment

371,039

501,419

Total
Remeasurements accumulated Non-controllinginterestsof defined benefit
other
plans
comprehensive
income(240,899)

631,559

27,191Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

Total net
assets

16,075,755(814,298)
1,690,904(30)(120,131)(191,961)

105,809(206,284)

160,559(45,724)(120,131)(191,961)

105,809(206,284)

160,559

830,850

250,907309,458(135,090)

425,274

187,750

16,906,605

11

IWAKI CO.,LTD. (6237) Financial Results for FY3/18

FY3/18 (Apr. 1, 2017 – Mar. 31, 2018)(Thousands of yen)
Shareholders’ equity
Capital stock
Balance at beginningof current period
Changes of items
during period

Capital surplus

1,018,250

638,250Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

Retained earnings

Treasury shares

Total shareholders’equity14,637,110(30)

16,293,580(538,871)(538,871)

2,059,364

2,059,364
(450)

(450)

-

-

1,520,492(450)

1,520,042

1,018,250

638,250

16,157,603(480)

17,813,622(Thousands of yen)
Accumulated other comprehensive income

Balance at beginningof current period
Changes of items
during period

Valuationdifference on
available-for-salesecurities

Foreigncurrencytranslation
adjustment

250,907309,458

Total
Remeasurements accumulated Non-controllinginterestsof definedotherbenefit planscomprehensive
income(135,090)

425,274

187,750

16,906,605(538,871)

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

Total net
assets2,059,364(450)
23,476

93,69896,959214,134

19,876

234,01123,476

93,69896,959214,134

19,876

1,754,053

274,384

403,156(38,131)

639,409

207,627

18,660,659

12

IWAKI CO.,LTD. (6237) Financial Results for FY3/18(4) Consolidated Statement of Cash Flows(Thousands of yen)
FY3/17
FY3/18(Apr. 1, 2016 – Mar. 31, 2017) (Apr. 1, 2017 – Mar. 31, 2018)
Cash flows from operating activities
Profit before income taxes

2,146,559

2,716,468

498,753

510,125

Amortization of goodwill

20,207

16,018

Increase (decrease) in allowance for doubtful accounts(5,227)

3,763

Increase (decrease) in provision for bonuses(4,126)

176,247

Increase (decrease) in provision for directors’ bonuses

100,120(1,453)

Depreciation

Increase (decrease) in net defined benefit liability

63,18459,871(56,829)(58,683)

25,69931,118Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using equity
methodDecrease (increase) in notes and accounts receivable-trade(179,061)(31,209)(488,458)(507,677)(3,846)(1,247,991)

Decrease (increase) in inventories(157,993)(644,403)

569,718

764,096

3,806

73,559(9,893)94,439Interest and dividend income
Interest expenses

Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accounts payable-other
Increase (decrease) in accrued expenses
Other, net(257,398)

79,891

Subtotal

2,265,217

2,034,180

418,908

410,404

Interest and dividend income received
Interest expenses paid

(22,046)(27,434)

Income taxes paid

(666,113)(590,918)

Income taxes refund
Net cash provided by (used in) operating activities

5,553

4,005

2,001,518

1,830,237-(206,197)

300,000-

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from redemption of securities

555,271

110,460(1,219,446)(1,314,676)

Proceeds from sales of property, plant and equipment

35,714

1,551

Proceeds from redemption of investment securities
Proceeds from purchase of shares of subsidiaries resulting
in change in scope of consolidation
Purchase of shares of subsidiaries and associates

264,205-

68,430-(103,830)-

Other, net(50,466)(50,141)

Net cash provided by (used in) investing activities(150,121)(1,459,004)(232,760)

75,150Purchase of property, plant and equipment

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of lease obligations(85,541)(74,398)

Cash dividends paid

(813,470)(538,172)

Dividends paid to non-controlling interests(2,886)(6,533)

Other, net(17,115)(450)(1,151,773)(544,404)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents(14,578)

26,836

Net increase (decrease) in cash and cash equivalents

685,045(146,334)

Cash and cash equivalents at beginning of period

5,426,118

6,111,164

Cash and cash equivalents at end of period

6,111,164

5,964,829

13

IWAKI CO.,LTD. (6237) Financial Results for FY3/18(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Reclassifications
Consolidated Statement of Income“Commission fee,” included in “Other” under non-operating expenses 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” (11,618 thousand yen) under non-operating expenses presented in the previous fiscal year’s
consolidated statement of income is reclassified and divided into “Commission fee” (5,003 thousand yen) and“Other” (6,615 thousand yen).
Segment and Other Informationa. Segment information
Omitted because chemical pumps are the only business of the Iwaki Group.
b. Related information
FY3/17 (Apr. 1, 2016 – Mar. 31, 2017)
1. Information by product or service(Thousands of yen)
Rotary displacement
pumps

Magnetic drive
pumps

Metering pumps

8,769,139

4,537,462

1,984,611

System products

Purchased products

1,092,167

2,192,079

External sales

Air pumps
1,436,812

Pneumatic drive
pumps

2,342,628
Other

Total

2,791,703

25,146,605

2. Information by region(1) Net salesJapan
15,935,669

EuropeAmericas2,271,659

Asia

3,273,439

China

2,095,442

Other764,135(Thousands of yen)Total

806,259

25,146,605

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

(2) Property, plant and equipment
Japan

Europe3,184,958

348,059

Americas(Thousands of yen)
Total

Asia

131,70259,542

3,724,263

3. Information by major client
Omitted because no specific external client accounts for 10% or more of net sales in the consolidated statement ofincome.

14

IWAKI CO.,LTD. (6237) Financial Results for FY3/18

FY3/18 (Apr. 1, 2017 – Mar. 31, 2018)
1. Information by product or service
Magnetic drive
pumps

Metering pumps

9,408,433

External sales

Air pumps

4,989,942

2,885,285

System products

Purchased products

1,286,631

2,598,884

1,458,312(Thousands of yen)
Rotary displacement
pumps

Pneumatic drivepumps

2,623,554
Other

Total

2,816,676

28,067,720

2. Information by region(1) Net sales
Japan

EuropeAmericas17,452,953

2,541,222

3,444,275

Asia

China

Other

2,708,297

1,021,003(Thousands of yen)Total

899,967

28,067,720

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

(2) Property, plant and equipment
Japan

Europe4,044,867

427,807

Americas(Thousands of yen)
Total

Asia

118,975

60,972

4,652,622

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
FY3/17(Apr. 1, 2016 – Mar. 31, 2017)(Yen)
FY3/18(Apr. 1, 2017 – Mar. 31, 2018)

Net assets per share

2,233.84

2,465.59

Net income per share

225.93275.16

Notes: 1. Diluted net income per share is not presented because there are no latent shares.
2. The basis of calculating the net income per share is as follows:
FY3/17(Apr. 1, 2016 – Mar. 31, 2017)
Profit attributable to owners of parent
1,690,904(Thousands of yen)Amount not attributable to common shareholders(Thousands of yen)
Profit attributable to owners of parent applicable to1,690,904
common shares (Thousands of yen)
Average number of shares outstanding (Shares)

7,484,357

15

FY3/18(Apr. 1, 2017 – Mar. 31, 2018)
2,059,364
2,059,364
7,484,306

IWAKI CO.,LTD. (6237) Financial Results for FY3/18

Subsequent Events
Not applicable.
5. Others
Change in Director
1) Change in representative
Not applicable.
2) Changes in other directors
Candidate for director
Director: Hirokazu Kai (currently Senior General Manager of Production Head Office)3) Effective dateJune 28, 2018

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.

16