May 14, 2019

Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2019
[Japanese GAAP]
Company name:
Stock code:
Representative:
Contact:IWAKI CO.,LTD.
Listing: Tokyo Stock Exchange, First 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 Annual General Meeting of Shareholders:June 27, 2019
Scheduled date of payment of dividend:
June 28, 2019
Scheduled date of filing of Annual Securities Report:
June 28, 2019
Preparation of supplementary materials for financial results:
Yes
Holding of financial results meeting: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, 2019 (April 1, 2018 – March 31, 2019)(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, 201929,171
3.9
2,337
11.0
2,847
4.2
2,163
5.1
Fiscal year ended Mar. 31, 2018
28,067
11.6
2,106
43.8
2,733
27.9
2,059
21.8
Note: Comprehensive income (million yen) Fiscal year ended Mar. 31, 2019:
2,096 (down 8.8%)
Fiscal year ended Mar. 31, 2018:
2,299 (up 54.5%)
Net income per
Diluted net
Ordinary profit Operating profit
Return on equity
share
income per shareon total assets
to net sales
Yen

Yen

%

%

%

Fiscal year ended Mar. 31, 2019
96.25
Fiscal year ended Mar. 31, 2018
91.72
Reference: Equity in earnings of affiliates (million yen)

11.3
9.5
8.0
11.7
9.8
7.5
Fiscal year ended Mar. 31, 2019: 515
Fiscal year ended Mar. 31, 2018: 507
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 Net assets per share
Million yen
Million yen%
Yen
As of Mar. 31, 201930,463
20,14865.5
887.14As of Mar. 31, 2018
29,321
18,66062.9
821.86
Reference: Owner’s equity (million yen)
As of Mar. 31, 2019: 19,952
As of Mar. 31, 2018: 18,453
Note: Iwaki conducted a 3-for-1 common stock split on July 1, 2018. Net assets per share have been calculated as if this stock
split had taken place at the beginning of the previous fiscal year.
(3) Consolidated cash flows
Cash flows from
Cash flows from
Cash flows from Cash and cash equivalents
operating activities investing activities financing activities
at end of period
Million yen
Million yen
Million yen
Million yen
Fiscal year ended Mar. 31, 2019
1,827
(1,793)(724)
5,252
Fiscal year ended Mar. 31, 2018
1,830
(1,459)
5,964
(544)

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

Yen

3Q-end Year-end
Yen

Yen

Total

Total
dividends

Yen

Million yen

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

Fiscal year ended Mar. 31, 2018
34.00
48.60
82.60
618
30.0
3.5
Fiscal year ended Mar. 31, 2019
12.00
16.90
28.90
649
30.0
3.4
Fiscal year ending Mar. 31, 2020
13.00
17.50
30.50
30.0
(forecast)
Note: 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, 2020 (April 1, 2019 – March 31, 2020)
Net salesFirst half
Full year

Million yen
15,411
30,561

Operating profit
%
4.8
4.8

Million yen
1,313
2,384

%
8.6
2.0

(Percentages represent year-on-year changes)
Profit attributable to Net income per
Ordinary profit
owners of parent
shareMillion yen% Million yen
%
Yen
1,564
2.0
1,240
16.1
55.59
2,869
0.8
2,243
3.7
101.06

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

None4) Restatements:

None(3) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Mar. 31, 2019:22,490,910 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 Mar. 31, 2019:510 shares

3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2019:22,477,989 sharesFiscal year ended Mar. 31, 2018:

22,452,914 shares

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

Reference: Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2019 (April 1, 2018 – March 31, 2019)(1) Non-consolidated results of operations(Percentages represent year-on-year changes)

Fiscal year ended Mar. 31, 2019
Fiscal year ended Mar. 31, 2018

Net sales
Million yen%
23,926
3.1
23,203 11.7

Operating profit
Million yen
%
1,743
11.3
1,566
79.4

Ordinary profit
Million yen
%
2,324
14.9
2,023
26.7

ProfitMillion yen
1,806
1,520

%
18.8
17.8

Net income per share Diluted net income per share
Yen
Yen
Fiscal year ended Mar. 31, 2019
80.37
Fiscal year ended Mar. 31, 201867.70
Note: Iwaki conducted a 3-for-1 common stock split on July 1, 2018. Net income per share has been calculated as if this stock
split had taken place at the beginning of the previous fiscal year.

(2) Non-consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
Million yen
Million yen%
Yen
As of Mar. 31, 201926,24816,731
63.7
743.95
As of Mar. 31, 201825,48815,54861.0
692.52
Reference: Shareholders’ equity (million yen):
As of Mar. 31, 2019: 16,731
As of Mar. 31, 2018: 15,548
Note: Iwaki conducted a 3-for-1 common stock split on July 1, 2018. Net assets per share have been calculated as if this stock
split had taken place at the beginning of the previous fiscal year.
* The current financial report is not subject to audit by certified public accountants or auditing firms.
* Cautionary statement with respect to forward-looking statements
Note concerning forward-looking statements
Forecasts of future performance in these materials are based on assumption judged to be valid and information available to 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. Please refer to “1. Overview of Results of Operations, (1) Results ofOperations, 2) Outlook” on page 2 for forecast assumptions and notes of caution for usage.
How to view supplementary materials for financial results
The Company plans to hold a financial results meeting for institutional investors and analysts on May 31, 20 19. Materials to be
distributed at this event will be available on the Company’s website in advance.

IWAKI CO.,LTD. (6237) Financial Results for FY3/19

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

16

Subsequent Events

16

1

IWAKI CO.,LTD. (6237) Financial Results for FY3/19

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, 2019, the Japanese economy was firm, as corporate earnings andemployment environment improved in response to the government ’s economic measures. On the other hand, theoutlook for the global economy is unclear as the pace of growth appears to be overshadowed by the effects of
U.S.-China trade friction and other factors. In Europe, exports have weakened as Britain’s withdrawal from the
EU is creating a source of concern.
Amidst these economic conditions, the trend in the markets in which the Iwaki Group operates, despite a sharp
slowdown in the semiconductor and liquid crystal markets from the middle of the term onwards, was towards astrong performance, particularly in the medical equipment market. The result was record-high fiscal year sales.
In Japan, Iwaki took many actions for building stronger relationships with customers and developing productsthat meet customers’ demands. All activities are based on the core policy of “winning by impr oving customer
satisfaction.” Overseas, Iwaki had activities encompassing 21 affiliated companies in 15 countries to increase
sales.
Due to these activities, sales in the medical equipment, chemicals and semiconductor/liquid crystal markets werehigher than one year earlier. Particularly, the medical equipment market performed well, driven by growth indemand for dialysis equipment in Japan and biochemical analysis equipment in China. In the chemicals market,
demand for parts for rechargeable batteries remained steady. The semiconductor/liquid crystal market was steady,although there was a sharp deceleration in semiconductor-related capital investment demand from the middle ofthe term.
Sales in Japan increased 4.1% from one year earlier to 18,163 million yen. Sales were driven by solid demand in
the medical equipment market. In Europe, sales were up 4.6% to 2,657 million yen because of strength in thechemicals market. In the United States, sales increased 10.5% to 3,806 million yen, chiefly in the water t reatment
market. In Asia, mainly South Korea and Taiwan, sales decreased 13.3% to 2,348 million yen because of a lower
demand in the semiconductor/liquid crystal market. Sales in China were up 20.1% to 1,226 million yen becauseof strong demand in the medical equipment market.
By product category, sales of rotary displacement pumps and air pumps for the medical equipment market
continued to grow. Sales of metering pumps for the water treatment market were also higher. Sales of mainline
magnetic drive pumps were strong.
Consequently, consolidated sales increased 3.9% to 29,171 million yen.
Earnings benefited from the growth in sales. Operating profit increased 11.0% to 2,337 million yen, ordinary
profit increased 4.2% to 2,847 million yen and profit attributable to owners of parent increased 5.1% to 2,163
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, 2020, 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 the prolonged U.S.-China trade issue,
Britain leaving the EU, and the slowing growth of the Chinese economy.
In the semiconductor/liquid crystal and surface treatment equipment markets, we foresee a recovery ininvestments in Asia in the second half. In the medical equipment market, we expect that demand for dialysis
equipment in Japan and biochemical analysis equipment in China will continue to increase. In the water treatment
market, demand for chemical dispense units at cooling towers is expected to increase due to a boom in building
construction in Japan leading up to the 2020 Tokyo Olympics. In the new energy market, capital expenditures willprobably remain high for lithium-ion and other types of batteries, mainly for automobiles made in China. In the2

IWAKI CO.,LTD. (6237) Financial Results for FY3/19

chemicals market, we expect strong demand as in the new energy market for electrolytes and other parts usedduring the production of lithium-ion rechargeable batteries.
While continuing to focus 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 reinforcing marketing
activities. We are also taking steps to strengthen departments associated with these marketing activities.
Based on this outlook, we forecast a 4.8% increase in consolidated sales to 30,561 million yen, a 2.0% increase inoperating profit to 2,384 million yen, a 0.8% increase in ordinary profit to 2,869 million yen, and a 3.7% increasein profit attributable to owners of parent to 2,243 million yen in the fiscal year ending on March 31, 2020.
These projections are based on information available at the time of release of this report. Actual results may di fferfrom 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 21,440 million yen, up 281 million yen fromthe end of the previous fiscal year. This was mainly due to increases of 215 million yen in merchandise andfinished goods and 512 million yen in raw materials and supplies, while there was a decrease of 671 million yen
in cash and deposits. The balance of non-current assets was 9,023 million yen at the end of the current fiscal year,
up 860 million yen from the end of the previous fiscal year. This was mainly because of an increase of 977
million yen in property, plant and equipment.
As a result, total assets increased 1,142 million yen from the end of the previous fiscal year to 30,463 million yen.
Liabilities
The balance of current liabilities at the end of the current fiscal year was 8,677 million yen, up 164 million yen
from the end of the previous fiscal year. This was mainly due to increases of 293 million yen in short-term loans
payable and 41 million yen in provision for bonuses for directors (and other officers), while there was a decreaseof 247 million yen in income taxes payable. The balance of non-current liabilities was 1,637 million yen at theend of the current fiscal year, down 509 million yen from the end of the previous fiscal year. This was mainly due
to decreases of 300 million yen in long-term loans payable, 99 million yen in provision for retirement benefits for
directors (and other officers) and 147 million yen in retirement benefit liability.
As a result, total liabilities decreased 345 million yen from the end of the previous fiscal year to 10,315 million
yen.
Net assets
The balance of net assets at the end of the current fiscal year was 20,148 million yen, up 1,487 million yen fromthe end of the previous fiscal year. The main factors include a 1,529 million yen increase in retained earnings.
Consequently, the capital adequacy ratio was 65.5% (62.9% at the end of the previous fiscal year).
2) Cash flows
Cash and cash equivalents (hereinafter, “net cash”) at the end of the current fiscal year was 5, 252 million yen,down 712 million yen over the end of the previous fiscal year (a decrease of 146 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 1,827 million yen (1,830 million yen provided in the previous fiscal
3

IWAKI CO.,LTD. (6237) Financial Results for FY3/19

year). Positive factors include profit before income taxes of 2, 845 million yen, which offset negative factors
including an increase in inventories of 801 million yen.
Cash flows from investing activities
Net cash used in investing activities was 1,793 million yen (1,459 million yen used in the previous fiscal year).
Negative factors include purchase of property, plant and equipment of 1, 628 million yen, which offset positive
factors including proceeds from withdrawal of time deposits of 271 million yen.
Cash flows from financing activities
Net cash used in financing activities was 724 million yen (544 million yen used in the previous fiscal year). The
main factors include cash dividends paid of 632 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 tru st 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 belief 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 s tructure 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 unit ized
products and the fabrication of customized pumps of all types. We also have strengths involving aspects ofoperations 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 focused 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 ec onomic
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

IWAKI CO.,LTD. (6237) Financial Results for FY3/19(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 started operation at
the new technology center. As a result, the environment for basic research and for the development of coretechnologies has been established, and we have built a framework capable of undertaking advanced research anddevelopment. We shall continue to conduct joint research projects in collaboration with companies andpublic-sector and academic-sector partners, and take other actions to promote the development of 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 thedevelopment 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 businessIn addition to strengthening our product development capabilities to be able to respond promptly to the
dynamically changing needs of our customers, we are also promoting centralized management of the customer
information currently held separately by our sales and maintenance organizations. Furthermore, we will deepenties between sales and maintenance operations and give our people more skills concerning a variety of know -howabout 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.
Moreover, we will make more improvements to our before and after maintenance services so that customers canuse our products with confidence for many years. The aim is increasing the Iwaki brand ’s reputation for reliability.
By further strengthening and enlarging the solutions business, we plan to differentiate ourselves from competitorsand 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. To address this issue, we plan to expand
our entire overseas businesses by exploiting our overseas sales network to strengthen our business framework to
be able to respond accurately and appropriately to our customers’ needs. We also plan to promoting overseas
procurement and manufacturing activities to facilitate the smooth supply of products to our customers overseas.
In another move to expand our overseas operations, we will assemble an even stronger IT infras tructure that canfacilitate 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 over seas affiliated companies. We arealso taking steps to reinforce marketing activities and to strengthen departments associated with these 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.

5

IWAKI CO.,LTD. (6237) Financial Results for FY3/19

We will continue to direct substantial resources to three strategic markets: water treatment, medical equipment
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 will promote to sell water tanks for raising small fish thatare used for genetic research and toxicity tests.
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 f inancial 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 FY3/19

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

FY3/18(As of Mar. 31, 2018)
AssetsCurrent assets
Cash and deposits

6,251,621

5,580,286

Notes and accounts receivable-trade7,110,089

6,873,408

Electronically recorded monetary claims-operating

2,569,198

2,738,020

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

55,846

1,999,571

2,214,986

14,82529,7853,009,883

3,522,791

Other

228,159446,732

Allowance for doubtful accounts(25,195)(21,831)

21,158,154

21,440,024

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
Accumulated depreciation

4,682,032

7,304,024(3,619,413)(3,646,791)

1,062,618

3,657,232

2,354,152

2,676,850(2,134,874)(2,247,889)

219,277

428,960

1,652,282

1,795,534(1,416,019)(1,465,444)

236,263

330,089

1,042,918

1,041,879

385,923

338,538(242,638)(185,666)

Leased assets, net

143,284

152,872

Construction in progress

1,940,973

11,071

23,56927,178(16,282)(19,444)

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

7,286

7,733

4,652,622

5,629,839

Intangible assets
Goodwill

3,781

2,772

Trademark right

71,79558,573

Other

129,433

132,297

Total intangible assets

205,009

193,643

Investment securities

2,347,028

2,275,208

Deferred tax assets

682,934

634,431

Investments and other assets

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

7275,396

290,448

3,305,359

3,200,088

8,162,991

9,023,571

29,321,146

30,463,596

IWAKI CO.,LTD. (6237) Financial Results for FY3/19

FY3/18(As of Mar. 31, 2018)(Thousands of yen)
FY3/19(As of Mar. 31, 2019)

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

5,117,443

5,184,397

657,415

951,205

Lease obligations

62,88964,978

Income taxes payable

497,919

250,186

Provision for bonuses

893,141

881,140

Provision for bonuses for directors (and other officers)

98,681140,000

Provision for product warranties

109,686

97,261Other

1,076,268

1,108,559

Total current liabilities

8,513,444

8,677,727

Long-term loans payable

300,000-

Lease obligations

94,892106,058

Non-current liabilities

Deferred tax liabilities
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability

390-

151,043

51,687

806,457

659,105

Asset retirement obligations

180,356

184,387

Other

613,902636,283

2,147,041

1,637,521

10,660,486

10,315,249

1,018,250

1,044,691

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus

638,250

664,691

Retained earnings

16,157,603

17,687,437

(480)

(559)

17,813,622

19,396,260

Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities

274,384

232,113

Foreign currency translation adjustment

403,156

241,969

Remeasurements of defined benefit plans(38,131)

81,877

Total accumulated other comprehensive income

639,409555,960

207,627

196,127

18,660,659

20,148,347

29,321,146

30,463,596

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

8

IWAKI CO.,LTD. (6237) Financial Results for FY3/19(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income
FY3/18(Apr. 1, 2017 – Mar. 31, 2018)(Thousands of yen)
FY3/19(Apr. 1, 2018 – Mar. 31, 2019)

Net sales

28,067,720

29,171,774

Cost of sales

18,658,610

18,797,679

Gross profit

9,409,110

10,374,094

Selling, general and administrative expenses

7,302,640

8,036,338

Operating profit

2,106,469

2,337,755

Interest income

30,012

27,927

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

28,67020,844

507,677

515,794

70,107-

Other

52,422

59,407

Total non-operating income

688,891

623,973

31,11830,800Foreign exchange losses-

41,994

Business establishment transfer expenses-

30,900Non-operating income

Non-operating expenses
Interest expenses

Other

30,436

10,186

Total non-operating expenses

61,555

113,882

2,733,806

2,847,846

1,547

346

-

31

1,547

377

Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets-

173

Loss on retirement of non-current assets

4,203

2,051

Provision for loss on building demolition cost

14,682-

Total extraordinary losses

18,8852,225

2,716,468

2,845,998

Income taxes-current

792,021652,855

Income taxes-deferred(160,152)

11,956

631,868

664,8122,084,599

2,181,186

Profit before income taxes

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

925,234

17,734

2,059,364

2,163,452

IWAKI CO.,LTD. (6237) Financial Results for FY3/19

Consolidated Statement of Comprehensive Income
FY3/18(Apr. 1, 2017 – Mar. 31, 2018)(Thousands of yen)
FY3/19(Apr. 1, 2018 – Mar. 31, 2019)2,084,599

2,181,186

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

23,476(42,270)

Foreign currency translation adjustment

49,134(120,245)

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

96,959120,008

45,739(42,196)

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

10

215,310(84,704)

2,299,909

2,096,482

2,273,498

2,080,002

26,41016,479

IWAKI CO.,LTD. (6237) Financial Results for FY3/19(3) Consolidated Statement of Changes in Equity
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
Issuance of newsharesCapital 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
Issuance of newsharesValuationdifference 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

11

IWAKI CO.,LTD. (6237) Financial Results for FY3/19

FY3/19 (Apr. 1, 2018 – Mar. 31, 2019)(Thousands of yen)
Shareholders’ equity
Capital stock
Balance at beginningof current period
Changes of items
during period
Issuance of newsharesCapital surplus

1,018,250

638,250

26,441

26,441Dividends 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’equity16,157,603(480)

17,813,622

52,882(633,617)(633,617)

2,163,452

2,163,452
(78)

(78)

26,441

26,441

1,529,834(78)

1,582,637

1,044,691

664,691

17,687,437(559)

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

Balance at beginningof current period
Changes of items
during period
Issuance of newsharesValuationdifference on
available-for-salesecurities

Foreigncurrencytranslation
adjustment

274,384

403,156

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

639,409

207,627

18,660,659

52,882

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
assets(633,617)
2,163,452(78)(42,270)(161,187)

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

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

1,487,687

232,113

241,969

81,877555,960

196,127

20,148,347

12

IWAKI CO.,LTD. (6237) Financial Results for FY3/19(4) Consolidated Statement of Cash Flows(Thousands of yen)
FY3/18
FY3/19(Apr. 1, 2017 – Mar. 31, 2018) (Apr. 1, 2018 – Mar. 31, 2019)
Cash flows from operating activities
Profit before income taxes

2,716,468

2,845,998

Depreciation

510,125

609,965

Amortization of goodwill

16,018

1,008

Increase (decrease) in allowance for doubtful accounts

3,763(2,523)

176,247(11,797)(1,453)41,32659,871

26,622-(99,356)(58,683)(48,771)

31,11830,800(31,209)(2,721)(507,677)(515,794)

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors(and other officers)
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using equity
methodDecrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories(1,247,991)

27,203(644,403)(801,098)

Increase (decrease) in notes and accounts payable-trade

764,096

98,765

Increase (decrease) in accounts payable-other73,559(59,053)

Increase (decrease) in accrued expenses

94,439111,736

Other, net

79,89135,409Subtotal

2,034,180

2,287,721

Interest and dividend income received

410,404

513,512Interest expenses paid

(27,434)(26,993)

Income taxes paid

(590,918)(947,892)

4,005

1,401

1,830,237

1,827,749(206,197)(322,902)

Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits-

271,632

Purchase of securities-(55,614)

Proceeds from redemption of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Other, net
Net cash provided by (used in) investing activities

110,460-(1,314,676)(1,628,005)

1,551

860

(50,141)(59,602)(1,459,004)(1,793,632)

75,150-Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of lease obligations(74,398)(64,194)

Cash dividends paid

(538,172)(632,408)(6,533)(27,980)

(450)

(78)

(544,404)(724,661)

Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

26,836(21,708)

Net increase (decrease) in cash and cash equivalents(146,334)(712,253)

Cash and cash equivalents at beginning of period

6,111,164

5,964,829

Cash and cash equivalents at end of period

5,964,829

5,252,576

13

IWAKI CO.,LTD. (6237) Financial Results for FY3/19(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Reclassifications
Consolidated Balance Sheet
Starting with the beginning of the current fiscal year, Iwaki is applying “Partial Amendments to AccountingStandard for Tax Effect Accounting” (Accounting Standards Board of Japan (ASBJ) Statement No. 28, February
16, 2018) and other related pronouncements. Accordingly, deferred tax assets and deferred tax liabilities havebeen presented in the investments and other assets section and the non -current liabilities section of the balance
sheet, respectively.
As a result, “deferred tax assets” under “current assets” in the consolidated balance sheet for the previous fiscal
year decreased 591,576 thousand yen and “deferred tax assets” under “investments and other assets” increased
591,576 thousand yen.
Net figures are used for deferred tax assets and deferred tax liabilities for the same taxing authority. This change
reduced total assets by 44,160 thousand yen.
Consolidated Statement of Income“Commission expenses” and “Rent expenses,” presented separately under non-operating expenses in the previous
fiscal year, are included in “Other” from the current fiscal year due to a decrease in its monetary materiality. To
conform to this change, the financial statements for the previous fiscal year are reclassifi ed.
As a result, “Commission expenses” (19,426 thousand yen) and “Rent expenses” (6,557 thousand yen) presented
under non-operating expenses in the previous fiscal year ’s consolidated statement of income are reclassified andincluded in “Other” (30,436 thousand yen).
Segment and Other Informationa. Segment information
Omitted because chemical pumps are the only business of the Iwaki Group.
b. Related information
FY3/18 (Apr. 1, 2017 – Mar. 31, 2018)
1. Information by product or service
Magnetic drive
pumps

Metering pumps

9,408,433

4,989,942

2,885,285

System products

Purchased products

1,286,631

2,598,884

External sales

Air pumps
1,458,312

Pneumatic drive
pumps(Thousands of yen)
Rotary displacementpumps
2,623,554
Other

Total

2,816,676

28,067,720

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

Europe17,452,953

2,541,222

Americas3,444,275

Asia

China

2,708,297

1,021,003

Other899,967

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

(2) Property, plant and equipment
Japan4,044,867

Europe427,807

Americas118,975

14(Thousands of yen)
Asia
Total
60,972
4,652,622

Total
28,067,720

IWAKI CO.,LTD. (6237) Financial Results for FY3/19

3. Information by major client
Omitted because no specific external client accounts for 10% o r more of net sales in the consolidated statement ofincome.
FY3/19 (Apr. 1, 2018 – Mar. 31, 2019)
1. Information by product or service
Magnetic drive
pumps

Metering pumps

10,177,913

External sales

Pneumatic drivepumps

Air pumps
1,528,234

5,066,624

2,775,387

System products

Purchased products

1,306,458

2,383,576(Thousands of yen)
Rotary displacementpumps
2,868,952
Other

Total

3,064,627

29,171,774

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

Europe18,163,038

2,657,753

Americas3,806,193

Asia

China

2,348,364

1,226,511

Other969,912

Total
29,171,774

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

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

Europe450,201

Americas140,922

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

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

15

IWAKI CO.,LTD. (6237) Financial Results for FY3/19

Per Share Information
FY3/18(Apr. 1, 2017 – Mar. 31, 2018)(Yen)
FY3/19(Apr. 1, 2018 – Mar. 31, 2019)

Net assets per share

821.86887.14

Net income per share

91.72

96.25

Notes: 1. Iwaki conducted a 3-for-1 common stock split on July 1, 2018. Net assets per share and net income per share havebeen calculated as if this stock split had taken place at the beginning of the previous fiscal year.
2. Diluted net income per share is not presented because there are no latent shares.
3. The basis of calculating the net income per share is as follows:
FY3/18
FY3/19(Apr. 1, 2017 – Mar. 31, 2018)(Apr. 1, 2018 – Mar. 31, 2019)
Profit attributable to owners of parent
2,059,364
2,163,452(Thousands of yen)Amount not attributable to common shareholders(Thousands of yen)
Profit attributable to owners of parent applicable to2,059,364
2,163,452
common shares (Thousands of yen)
Average number of shares outstanding (Shares)

22,452,914

22,477,989

Subsequent Events
Repurchase of treasury shares
The Iwaki Board of Directors approved a resolution on May 14, 2019 to repurchase its own shares pursuant to
Article 156 of the Companies Act, which is applicable in lieu of Artic le 165, Paragraph 3 of this act.
1. Reason for stock repurchaseIn addition to improving capital efficiency and to make it possible to carry out a flexible capital management
policy in response to changes in the business environment, Iwaki repurchased its own shares to increase
shareholder value per share and to enhance shareholder returns.
2. Details of stock repurchase(1) Type of shares to be repurchased:

Common shares of Iwaki(2) Total number of shares to be repurchased: Up to 600,000 shares(2.67% of total shares outstanding, excluding treasury shares)(3) Total value of shares to be repurchased:

Up to 500 million yen(4) Repurchase schedule:

From May 17, 2019 to July 12, 2019(5) Method of repurchase:

Purchase on the Tokyo Stock Exchange(Discretionary method used by securities firm)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 th e convenience ofreaders who prefer an English translation.

16