August 9, 2019

Summary of Consolidated Financial Results
for the First Quarter of Fiscal Year Ending March 31, 2020(Three Months Ended June 30, 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 filing of Quarterly Report:
August 9, 2019
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 First Quarter Ended June 30, 2019 (April 1, 2019 – June 30, 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%Three months ended Jun. 30, 2019
6,782 (6.5)
338 (45.2)
454 (38.9)
410 (16.5)
Three months ended Jun. 30, 2018
7,256
12.2
617
37.0
742
19.2
490
8.6
Note: Comprehensive income (million yen) Three months ended Jun. 30, 2019: 252 (down 13.3%)
Three months ended Jun. 30, 2018: 290 (down 25.2%)
Diluted net income per
Net income per share
shareYen

Yen

Three months ended Jun. 30, 201918.37
Three months ended Jun. 30, 201821.86
Note: Iwaki conducted a 3-for-1 common stock split on July 1, 2018. Net income per share has been calculated as if this stock
split had taken place at the beginning of the previous fiscal year.
(2) Consolidated financial position
Total assets
Net assets
Capital adequacy ratio
Million yen
Million yen%
As of Jun. 30, 201930,223
19,61564.3
As of Mar. 31, 201930,463
20,14865.5
Reference: Owner’s equity (million yen)
As of Jun. 30, 2019: 19,429
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 share3Q-end
Year-end

Total

Yen

Yen

Yen

Yen

12.00

-16.90

28.90

13.00

-17.5030.50

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
First half
15,411
4.8
1,313
8.6
1,564
2.0
1,240
16.1
55.59
Full year
30,561
4.8
2,384
2.0
2,869
0.8
2,243
3.7
101.06Note: 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 stat ements: Yes
Note: Please refer to page 8 “2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly Consolidated
Financial Statements, Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial
Statements” for details.

(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others:None2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:

None4) Restatements:

None(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Jun. 30, 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 Jun. 30, 2019:394,224 shares

3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2019: 22,318,362 shares

Three months ended Jun. 30, 2018:

22,452,648 shares

Note: Iwaki conducted a 3-for-1 common stock split on July 1, 2018. The average number of shares outstanding during theperiod has been 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 First Quarter of FY3/20

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

2(3) Explanation of Consolidated Earnings Forecasts and Other Forward -looking Statements

3

2. Quarterly Consolidated Financial Statements and Notes

4(1) Quarterly Consolidated Balance Sheet

4(2) Quarterly Consolidated Statements of Income and Comprehensi ve Income

6

Quarterly Consolidated Statement of Income
For the Three-month Period

6

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

7(3) Notes to Quarterly Consolidated Financial Statements

8Going Concern Assumption8Significant Changes in Shareholders’ Equity

8

Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

8Segment Information

81

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

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first quarter of the fiscal year ending March 31, 2020, the Japanese economy continued to recover at amoderate pace as improvements in jobs and personal income continued. However, the outlook for Japan’s
economy is becoming increasingly uncertain. This is because of concerns about the effects of trends in theU.S.-China trade friction on the global economy, uncertainties about overseas economies, including the prospects
for the Chinese economy, and the impact of the upcoming consumption tax hike.
In Japan, Iwaki took many actions based on the core policy of “winning 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 water treatment and chemicals
markets. However, continuing from the second half of the previous fiscal year, the semiconductor/liquid crystal
market remained weak because there was a slowdown in semiconductor-related capital investment. The surface
treatment equipment market was also bearish as the same factors affected this market. The medical equipment
market was hovered at the high level reached in the previous fiscal year.
Sales in Japan decreased 10.7% from one year earlier to 4,012 million yen as a result of soft sales in thesemiconductor/liquid crystal and medical equipment markets. In Europe, sales were up 5.3% to 738 million yen
because of strength in the new energy market. In the United States, sales increased 24.4% to 1,018 million yen asa result of higher sales in all markets, chiefly in the water treatment market. In Asia, sales decreased 30.4% to 516
million yen because of a lower demand in the semiconductor/liquid crystal market. Sales in China were up 3.4%
to 280 million yen because of strong sales in the medical equipment market.
By product category, sales of mainline metering pumps were strong. Sales of magnetic drive pumps weregenerally about the same as one year earlier. Air pumps for the medical equipment market also remained strong.
Sales of pneumatic drive pumps for the semiconductor/liquid crystal market were weak due to a slowdown insemiconductor-related capital investment.
Consequently, consolidated net sales decreased 6.5% to 6,782 million yen.
Earnings were largely affected by lower sales and higher cost due to up-front investments. As a result, operating
profit decreased 45.2% to 338 million yen, ordinary profit decreased 38.9% to 454 million yen and profit
attributable to owners of parent decreased 16.5% to 410 million yen.
No business segment information is provided because chemical pumps are the only business of the Iwaki Group.
(2) Explanation of Financial Position
AssetsThe balance of current assets at the end of the first quarter of the current fiscal year was 21,770 million yen, up
330 million yen from the end of the previous fiscal year. This was mainly due to an increase of 320 million yen in
cash and deposits. The balance of non-current assets was 8,453 million yen at the end of the first quarter of thecurrent fiscal year, down 570 million yen from the end of the previous fiscal year. This was mainly because of adecrease of 596 million yen in investment securities.
As a result, total assets decreased 240 million yen from the end of the previous fiscal year to 30,223 million yen.
Liabilities
The balance of current liabilities at the end of the first quarter of the current fiscal year was 8,932 million yen, up
254 million yen from the end of the previous fiscal year. This was mainly due to an increase of 206 million yen in
short-term borrowings. The balance of non-current liabilities was 1,674 million yen at the end of the first quarterof the current fiscal year, up 37 million yen from the end of the previous fiscal year.
As a result, total liabilities increased 292 million yen from the end of the previous fiscal year to 10,607 millionyen.

2

IWAKI CO.,LTD. (6237) Financial Results for the First Quarter of FY3/20Net assets
The balance of net assets at the end of the first quarter of the current fiscal year was 19,615 million yen, down
532 million yen from the end of the previous fiscal year. The main factors include the purchase of treasury sharesof 393 million yen and a 140 million yen decrease in valuation difference on available-for-sale securities.
Consequently, the capital adequacy ratio was 64.3% (65.5% at the end of the previous fiscal year).
(3) Explanation of Consolidated Earnings Forecasts and Other Forward -looking Statements
We maintain the first-half and full-year consolidated earnings forecasts that were disclosed in the “Summary ofConsolidated Financial Results for the Fiscal Year Ended March 31, 2019” dated May 14, 2019.

3

IWAKI CO.,LTD. (6237) Financial Results for the First 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)First quarter of FY3/20(As of Jun. 30, 2019)

AssetsCurrent assets
Cash and deposits

5,580,286

5,901,083

Notes and accounts receivable-trade

6,873,408

6,511,067

Electronically recorded monetary claims-operating

2,738,020

2,874,080

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

55,84656,3372,214,986

2,292,876

29,785140,120

3,522,791

3,612,429

Other446,732

406,808

Allowance for doubtful accounts(21,831)(24,474)

21,440,024

21,770,329

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

7,304,024

7,325,294(3,646,791)(3,693,115)

3,657,232

3,632,178

2,676,850

2,705,923(2,247,889)(2,279,853)

428,960

426,069

1,795,534

1,808,746(1,465,444)(1,480,117)

330,089

328,629

1,041,879

1,040,712

338,538

343,959(185,666)(201,868)

152,872

142,091

Construction in progress

11,071

10,795

Other27,17828,392(19,444)(19,890)

LandLeased assets
Accumulated depreciation
Leased assets, net

Accumulated depreciation
Other, net
Total property, plant and equipment

7,733

8,502

5,629,839

5,588,978Intangible assets
Goodwill

2,772

2,520

Trademark right

58,57355,657

Other

132,297

174,447

Total intangible assets

193,643

232,626

Investment securities

2,275,208

1,678,938

Deferred tax assets

634,431

671,878

Investments and other assets

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

4290,448

280,644

3,200,088

2,631,461

9,023,5718,453,066

30,463,596

30,223,396

IWAKI CO.,LTD. (6237) Financial Results for the First Quarter of FY3/20(Thousands of yen)First quarter of FY3/20(As of Jun. 30, 2019)

FY3/19(As of Mar. 31, 2019)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings

5,184,397

4,887,378

951,205

1,157,406

Lease obligations

64,97861,477

Income taxes payable

250,186

184,657

Provision for bonuses

881,140

406,293

Provision for bonuses for directors (and other officers)

140,000

17,966

Provision for product warranties

97,26187,781Other

1,108,559

2,129,626

Total current liabilities

8,677,727

8,932,588-4,543

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

106,058

98,326

51,687

51,687659,105

656,976

Asset retirement obligations

184,387

184,811

Non-current liabilities
Long-term borrowings

Other636,283

678,485

1,637,521

1,674,829

10,315,249

10,607,418

Share capital

1,044,691

1,044,691

Capital surplus

664,691

664,691

Retained earnings

17,687,437

17,717,354(559)(394,418)

19,396,260

19,032,317

Valuation difference on available-for-sale securities

232,113

91,372Foreign currency translation adjustment

241,969

233,436

Remeasurements of defined benefit plans

81,877

72,694

Total accumulated other comprehensive income

555,960

397,503

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

Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income

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

5196,127

186,157

20,148,347

19,615,97830,463,596

30,223,396

IWAKI CO.,LTD. (6237) Financial Results for the First Quarter of FY3/20(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Three-month Period)First three months of FY3/19(Apr. 1, 2018 – Jun. 30, 2018)(Thousands of yen)First three months of FY3/20(Apr. 1, 2019 – Jun. 30, 2019)

Net sales

7,256,769

6,782,927

Cost of sales

4,704,189

4,498,678

Gross profit

2,552,580

2,284,249

Selling, general and administrative expenses

1,934,783

1,945,396

617,796

338,853

Interest income

5,511

4,290

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

13,093

16,499147,315

113,932

11,56910,499Total non-operating income

177,490145,222

Interest expenses

7,674

8,008

Foreign exchange losses

10,487

8,588

Business establishment transfer expenses

30,900-Operating profit
Non-operating income

Non-operating expenses

Loss on amortization of restricted stock remuneration-6,800

Other

3,349

6,502

Total non-operating expenses

52,412

29,900742,875

454,175

20

9,111

Gain on sales of investment securities-153,234

Total extraordinary income

20162,345

Loss on retirement of non-current assets

564

247

Total extraordinary losses

564

247

Profit before income taxes

742,330

616,272

Income taxes

244,547

206,032

Profit497,783

410,240

6,930

236

490,853

410,004

Ordinary profit
Extraordinary income
Gain on sales of non-current assets

Extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

6

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

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)First three months of FY3/19(Apr. 1, 2018 – Jun. 30, 2018)(Thousands of yen)First three months of FY3/20(Apr. 1, 2019 – Jun. 30, 2019)497,783

410,240(9,486)(140,741)(167,321)(7,429)2,443(9,182)(32,432)(744)(206,796)(158,098)

290,987

252,142285,261

251,547

5,726

595

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
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 to non-controllinginterests

7

IWAKI CO.,LTD. (6237) Financial Results for the First Quarter of FY3/20(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Iwaki purchased 389,000 treasury shares pursuant to resolution of the Board of Directors meeting on May 14,
2019. As a result, treasury shares increased 393 million yen during the first quarter of the current fiscal year to394 million yen at the end of the first 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 calcu lated by first estimating the effective
tax rate after the application of tax effect accounting with respect to profit before income taxes during the fiscalyear, and multiplying that rate by the quarterly profit before income taxes.
Segment Information
Omitted because chemical pumps are the only business of the Iwaki Group.

This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience ofreaders who prefer an English translation.

8