February 9, 2018

Summary of Consolidated Financial Results
for the Third Quarter of Fiscal Year Ending March 31, 2018
(Nine Months Ended December 31, 2017)[Japanese GAAP]
Company name: IWAKI CO.,LTD.
Listing: Tokyo Stock Exchange, Second Section
Stock code:
6237
URL: http://www.iwakipumps.jp/
Representative:
Shigeru Fujinaka, President
Contact:
Kenji Matsuda, Senior Executive Director
Tel: (81)3-3254-2931
Scheduled date of filing of Quarterly Report:
February 14, 2018
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results:
NoneHolding of quarterly financial results meeting:None(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Third Quarter Ended December 31, 2017
(April 1, 2017 – December 31, 2017)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Million yen% Million yen% Million yen% Million yen%
Nine months ended Dec. 31, 2017
20,684
10.5
1,751
49.2
2,253
46.3
1,742
44.3
Nine months ended Dec. 31, 2016
18,7201.5
1,173(5.4)
1,540(6.0)
1,207(2.2)
Note: Comprehensive income (million yen) Nine months ended Dec. 31, 2017:1,908 (up 279.2 %)Nine months ended Dec. 31, 2016: 503 (down 49.6%)
Net income per share

Diluted net income per share

Yen

Yen

232.87161.38-Nine months ended Dec. 31, 2017
Nine months ended Dec. 31, 2016
(2) Consolidated financial position

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

Total assets
Net assets
Capital adequacy ratio
Million yen
Million yen%
28,351
18,26963.7
26,253
16,906
63.7
As of Dec. 31, 2017: 18,067
As of Mar. 31, 2017: 16,718

2. Dividends
1Q-endDividend per share
2Q-end3Q-endYear-end

Yen

Fiscal year ended Mar. 31, 2017
Fiscal year ending Mar. 31, 2018
Fiscal year ending Mar. 31, 2018 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None

Total

Yen

Yen

Yen

Yen

30.00
34.00

-38.00

68.00

36.00

70.00

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2018 (April 1, 2017 – March 31, 2018)(Percentages represent year-on-year changes)
Profit attributable toNet income perNet sales
Operating profit
Ordinary profit
owners of parentshare
Million yen%
Million yen%
Million yen%
Million yen%
Yen
Full year
26,838
6.7
1,786
22.0
2,290
7.2
1,735
2.6
231.90Note: Revisions to the most recently announced consolidated earnings forecasts: None

* Notes(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
(2) Application of special accounting methods for presenting quarterly consolidated financial statements: Yes
Note: Please refer to page 8 “2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly Consolidated
Financial Statements, Application of Special Accounting Methods for Presenting Quarterly Consolidated FinancialStatements” for details.

(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: None
2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:

None4) Restatements:

None(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Dec. 31, 2017:

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 Dec. 31, 2017:

110 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2017:

7,484,329 shares

Nine months ended Dec. 31, 2016: 7,484,359 shares* The current financial report is not subject to quarterly review procedures.
* 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 the Company regarding futureperformance. Actual results may differ materially from the forecasts.

IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/18

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

2(2) Explanation of Financial Position

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

32. Quarterly Consolidated Financial Statements and Notes

4(1) Quarterly Consolidated Balance Sheet

4(2) Quarterly Consolidated Statements of Income and Comprehensive Income

6

Quarterly Consolidated Statement of Income
For the Nine-month Period

6

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

7(3) Notes to Quarterly Consolidated Financial Statements

8Going Concern Assumption

8Significant Changes in Shareholders’ Equity

8

Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

8Segment and Other Information

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IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/18

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first nine months of the fiscal year ending March 31, 2018, the Japanese economy continued torecover slowly as corporate earnings recovered and the environment for jobs and personal income improved.
However, there is still a risk of an economic downturn in Japan due to slowing economic growth in China andrising geopolitical risk involving North Korea and other regions. Overseas, labor markets and personal income
are improving, especially in the United States. In addition, capital expenditures are rebounding along with arecovery in corporate earnings. As a result, the global economy is recovering at a moderate pace.
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, the sales network in Eastern Europe was strengthened andactivities in the United States were focused mainly on the aquatic business. Overall, Iwaki worked with its 21
affiliated companies in 15 countries to increase sales.
Due to these activities, sales in all six major markets of Iwaki were higher than one year earlier. Significant
sources of growth are the increasing use of electrical parts in automobiles, the rising demand for semiconductors
due to the growth of the Internet of things, and the increasing volume of production equipment for organic
electroluminescence displays. The semiconductor/liquid crystal market and surface treatment equipment market
were strong in Japan, South Korea and Taiwan. Performance was also good in the water treatment market, in part
because of synergies with TechnoECHO Co., Ltd., which was acquired at the end of 2016. Sales in the chemicalmarket increased due to higher sales of all types of chemicals used for semiconductor/liquid crystal applications
and of materials used to make lithium-ion rechargeable batteries. Performance was strong in the new energy
market because of capital expenditures for wind power generation and other equipment in Europe and capital
expenditures in China involving rechargeable batteries used in electric automobiles. In the medical equipment
market, biochemical analysis equipment in China was a major source of sale s growth.
Sales in Japan increased 8.2% from one year earlier to 12,811 million yen. Sales were driven by firm demand in
the semiconductor/liquid crystal and surface treatment equipment markets. In addition, the water treatment
market and chemicals market remained steady. In Europe, sales were up 8.8% to 1,880 million yen. This wascaused by strength in the new energy market and a steady performance in the water treatment and chemical smarkets. In the United States, sales increased 7.0% to 2,565 million yen as sales in Iwaki’s six major markets,
chiefly water treatment, were higher than one year earlier. In Asia, high levels of activity in thesemiconductor/liquid crystal and surface treatment equipment markets resulted in sales growth of 28.3% to 2,004
million yen. Sales in China were up 33.1% to 785 million yen because of higher sales in the new energy andmedical equipment markets.
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 10.5% to 20,684 million yen.
Earnings benefited from the growth in sales. Operating profit increased 49.2% to 1,751 million yen, ordinary
profit increased 46.3% to 2,253 million yen and profit attributable to owners of parent increased 44.3% to 1,742
million yen.
No business segment information is provided because chemical pumps are the only business of the Iwaki Group.

2IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/18(2) Explanation of Financial Position
AssetsThe balance of current assets at the end of the third quarter of the current fiscal year was 20,927 million yen, up
1,095 million yen from the end of the previous fiscal year. This was mainly due to increases of 741 million yen innotes and accounts receivable-trade, 538 million yen in electronically recorded monetary claims-operating and
520 million yen in raw materials and supplies, while there was a decrease of 863 million yen in cash and deposits.
The balance of non-current assets was 7,423 million yen at the end of the third quarter, up 1,001 million yen fromthe end of the previous fiscal year. This was mainly because of increases of 874 million yen in construction inprogress and 213 million yen in investment securities.
As a result, total assets increased 2,097 million yen from the end of the previous fiscal year to 28,351 million yen.
Liabilities
The balance of current liabilities at the end of the third quarter of the current fiscal year was 7,752 million yen, up
721 million yen from the end of the previous fiscal year. This was mainly due to an increase of 678 million yen innotes and accounts payable-trade. The balance of non-current liabilities was 2,329 million yen at the end of thethird quarter, up 13 million yen from the end of the previous fiscal year. This was mainly due to a 2 million yen
increase in net defined benefit liability and a 1 million yen increase in asset retiremen t obligations.
As a result, total liabilities increased 734 million yen from the end of the previous fiscal year to 10,081 million
yen.
Net assets
The balance of net assets was 18,269 million yen at the end of the third quarter of the current fiscal year, up 1,363
million yen from the end of the previous fiscal year. The main factors include a 1,203 million yen increase inretained earnings.
Consequently, the capital adequacy ratio was 63.7% (63.7% at the end of the previous fiscal year).
(3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements
We maintain the full-year consolidated earnings forecast that was disclosed in the “Summary of Consolidated
Financial Results for the Second Quarter of Fiscal Year Ending March 31, 201 8” dated November 10, 2017
(Japanese version only).

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IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/18

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/17(As of Mar. 31, 2017)(Thousands of yen)
Third quarter of FY3/18(As of Dec. 31, 2017)

AssetsCurrent assets
Cash and deposits

6,191,508

5,327,976

Notes and accounts receivable-trade

6,434,549

7,175,613

Electronically recorded monetary claims-operating

1,988,682

2,527,652

112,738-

1,901,218

1,944,753

30,155

104,9712,437,457

2,958,434

502,614529,095

Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other253,912

382,816

Allowance for doubtful accounts(20,816)(23,348)

19,832,021

20,927,964

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, netTools, furniture and fixtures
Accumulated depreciation and impairment loss
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation

4,636,9784,668,942(3,514,143)(3,588,042)

1,122,834

1,080,899

2,231,416

2,320,052(1,985,609)(2,105,067)

245,807

214,985

1,601,918

1,664,795(1,375,807)(1,415,275)

226,111249,519

1,036,769

1,041,841

485,543

403,207(317,020)(246,421)

Leased assets, net

168,523

156,785

Construction in progress

918,646

1,793,436

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

17,494

21,834(11,924)(14,963)

5,569

6,871

3,724,263

4,544,339

Intangible assets
Goodwill

19,7184,033

Trademark right

86,21974,612Other117,682

119,963

Total intangible assets

223,619

198,609

Investment securities

2,064,168

2,277,395

Deferred tax assets

142,215

128,920

Investments and other assets

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

4

267,571

274,272

2,473,955

2,680,588

6,421,838

7,423,537

26,253,859

28,351,502

IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/18

FY3/17(As of Mar. 31, 2017)(Thousands of yen)
Third quarter of FY3/18(As of Dec. 31, 2017)

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

4,345,679

5,023,862

576,160

687,475

Lease obligations

75,517

67,125

Income taxes payable

300,437

287,290

Provision for bonuses

716,527

395,352

Provision for directors’ bonuses

100,12045,965

Provision for product warranties

98,485106,096

Other

818,564

1,139,545

7,031,491

7,752,713

Long-term loans payable

300,000

300,000

Lease obligations

106,584

103,974

Total current liabilities
Non-current liabilities

Deferred tax liabilities

72,22669,883

Provision for directors’ retirement benefits

151,043

151,043

Net defined benefit liability

885,513887,855

Asset retirement obligations

205,500

207,023

Other

594,892

609,383

2,315,762

2,329,164

9,347,253

10,081,877

Capital stock

1,018,250

1,018,250

Capital surplus

638,250

638,250

Retained earnings

14,637,110

15,841,101

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

Treasury shares

(30)

(309)

16,293,580

17,497,291

Valuation difference on available-for-sale securities

250,907

325,143

Foreign currency translation adjustment

309,458

350,188

Remeasurements of defined benefit plans(135,090)(105,179)

425,274

570,152

187,750

202,180

16,906,605

18,269,624

26,253,859

28,351,502

Total shareholders’ equity
Accumulated other comprehensive income

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

5

IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/18(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Nine-month Period)First nine months of FY3/17(Apr. 1, 2016 – Dec. 31, 2016)(Thousands of yen)First nine months of FY3/18(Apr. 1, 2017 – Dec. 31, 2017)

Net sales

18,720,967

20,684,089

Cost of sales

12,652,476

13,655,932

Gross profit

6,068,491

7,028,157

Selling, general and administrative expenses

4,894,539

5,276,897

Operating profit

1,173,951

1,751,259

Interest income

22,71920,611Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains

24,95526,870237,461

387,017

69,112

79,920Non-operating income

Other

44,042

34,896

Total non-operating income

398,290549,317

Interest expenses

18,284

21,403

Commission fee

3,768

17,917

Non-operating expenses

Other

9,576

7,744

Total non-operating expenses

31,62947,065

1,540,613

2,253,511

Gain on sales of non-current assets

19,510

1,543

Total extraordinary income

19,510

1,543

726

2,740

8,494

-

9,220

2,740

1,550,903

2,252,313

339,240

489,178

1,211,662

1,763,134

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets
Provision for loss on liquidation of subsidiaries andassociates
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

63,807

20,271

1,207,855

1,742,862

IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/18

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)(Thousands of yen)First nine months of FY3/17
First nine months of FY3/18(Apr. 1, 2016 – Dec. 31, 2016) (Apr. 1, 2017 – Dec. 31, 2017)
Profit1,211,662

1,763,134

Valuation difference on available-for-sale securities(116,323)

74,236

Foreign currency translation adjustment(488,585)

21,70831,337

29,910(134,781)

19,713

Other 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(708,351)

145,568

503,310

1,908,702

503,131

1,887,739

179

20,963Comprehensive income attributable to:Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7

IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/18(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements
Calculation of tax expense
At Iwaki and certain consolidated subsidiaries, the tax expenses were calculated by first estimating the effective
tax rate after the application of tax effect accounting with respect to profit before income taxes during the fiscal
year, and multiplying that rate by the quarterly profit before income taxes.
Segment and Other Information
Segment information
I. First nine months of FY3/17 (Apr. 1, 2016 – Dec. 31, 2016)
Omitted because chemical pumps are the only business of the Iwaki Group.
II. First nine months of FY3/18 (Apr. 1, 2017 – Dec. 31, 2017)
Omitted because chemical pumps are the only business of the Iwaki Gr oup.

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.

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