November 14, 2019

Summary of Consolidated Financial Results
for the Second Quarter of Fiscal Year Ending March 31, 2020
(Six Months Ended September 30, 2019)[Japanese GAAP]IWAKI CO.,LTD.
Listing: Tokyo Stock Exchange, First Section
6237
URL: https://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:
November 14, 2019
Scheduled date of payment of dividend:
December 2, 2019
Preparation of supplementary materials for quarterly financial results: YesYes (for institutional investors and analysts)
Holding of quarterly financial results meeting:Company name:
Stock code:
Representative:
Contact:(All amounts are rounded down to the nearest million yen )1. Consolidated Financial Results for the Second Quarter Ended September 30, 2019
(April 1, 2019 – September 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%Six months ended Sep. 30, 201914,086 (4.2)
1,041 (13.9)
1,243 (18.9)
1,024(4.1)
Six months ended Sep. 30, 2018
14,704
9.4
1,209
19.1
1,533
13.2
1,068
5.1
Note: Comprehensive income (million yen) Six months ended Sep. 30, 2019 :
713 (down 27.1%)
Six months ended Sep. 30, 2018 :
978 (down 8.5%)
Diluted net income per
Net income per share
share
Yen

Yen

46.22
Six months ended Sep. 30, 201947.55
Six months ended Sep. 30, 2018
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 Sep. 30, 201929,537
19,991
67.0
As of Mar. 31, 201930,463
20,14865.5
Reference: Owner’s equity (million yen)
As of Sep. 30, 2019: 19,803
As of Mar. 31, 2019: 19,952

2. Dividends
1Q-end2Q-endYen

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

Dividend per share
3Q-endYear-end

TotalYenYenYenYen

12.00
13.00

-16.90

28.90

-

17.50

30.50

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2020 (April 1, 2019 – March 31, 2020)(Percentages represent year-on-year changes)
Profit attributable to Net income per
Net sales
Operating profit
Ordinary profit
owners of parentshare
Million yen% Million yen% Million yen% Million yen%Yen
Full year
29,067 (0.4)
2,116(9.5)
2,551(10.4)
1,977(8.6)
89.49
Note: Revisions to the most recently announced consolidated earnings forecasts: None* Notes(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
(2) Application of special accounting methods for presenting quarterly consolidated financial statements: Yes
Note: Please refer to page 8 “2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly Consolidated
Financial Statements, Application of Special Accounting Methods for Presenting Quarterly Consolidated FinancialStatements” for details.

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

None4) Restatements:

None(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Sep. 30, 2019:22,490,910 shares

As of Mar. 31, 201 9:

22,490,910 shares

As of Mar. 31, 201 9:510 shares

2) Number of treasury shares at the end of the period
As of Sep. 30, 2019:465,389 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2019:22,167,878 shares

Six months ended Sep. 30, 2018:

22,465,647 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 p eriod, and the average number of shares outstanding during
the period were calculated as if this stock split had taken place at the beginning of the previous fiscal year.
* The current quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms.
* Cautionary statement with respect to forward-looking statements
Note concerning forward-looking statements
Forecasts of future performance in these materials are based on assumption judged to be valid and infor mation 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.
How to view supplementary information at the quarterly financial results meeting
Iwaki plans to hold a quarterly financial results meeting for institutional investors and analysts on November 29, 2019.
Materials to be distributed at this event will be available on the Company’s website immediately thereafter.

IWAKI CO.,LTD. (6237) Financial Results for the Second 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

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 Six-month Period

6

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

7(3) Notes to Quarterly Consolidated Financial Statements

8Going Concern Assumption

8

Significant 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 Second Quarter of FY3/ 20

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first half 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 trade tensions on
the global economy and uncertainties about overseas economies, including prospects for the Chinese economy.
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 improving customersatisfaction.” Overseas, Iwaki had activities encompassing 21 affiliated companies in 15 countries to increase
sales.
Due to these activities, sales were higher than one year earlier mainly in the medical equipment, water
treatment and chemicals markets. However, continuing from the first quarter, the semiconductor/liquid crystal
market remained weak because there was a slowdown in semiconductor-related ca pital investment. Although
there was some improvement from the first quarter, the surface treatment equipment market remained bearish .
Sales in Japan decreased 5.6% from one year earlier to 8,586 million yen as a result of sluggish sales in thesemiconductor/liquid crystal markets and weak sales in the surface treatment equipment market . In Europe,sales were down 0.3% to 1,423 million yen. The new energy market showed significant growth, while there
was a slowdown in other markets in this region. In the United States, sales increased 13.7% to 2,050 million
yen as a result of strong sales in the water treatment market and higher sales in the chemicals markets . In Asia,sales decreased 25.3% to 1,004 million yen because of a lower sales in the semiconductor/liquid crystal market.
Sales in China were up 2.9% to 583 million yen because of strong sales in the medical equipment market.
By product category, sales of mainline metering pumps remained strong. Sales of magnetic drive pumps
declined slightly but generally about the same as one year earlier. Air pumps for the medical equipment market
remained strong. Sales of pneumatic drive pumps for the semiconductor/liquid crystal market were weak due
to a slowdown in semiconductor-related capital investment.
Consequently, consolidated net sales decreased 4.2% to 14,086 million yen.
Our efforts to reduce costs failed to completely offset the impact of reduced sales. As a result, operating profit
decreased 13.9% to 1,041 million yen, ordinary profit decreased 18.9% to 1, 243 million yen and profit
attributable to owners of parent decreased 4.1% to 1,024 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 second quarter of the current fiscal year was 21,172 million yen,down 267 million yen from the end of the previous fiscal year. This was mainly due to an increase of 427
million yen in cash and deposits, while there was a decrease of 735 million yen in notes and accounts
receivable-trade. The balance of non-current assets was 8,364 million yen at the end of the second quarter ofthe current fiscal year, down 658 million yen from the end of the previous fiscal year. This was mainly becauseof a decrease of 716 million yen in investment securities.
As a result, total assets decreased 926 million yen from the end of the previous fiscal year to 29,537 million
yen.
Liabilities
The balance of current liabilities at the end of the second quarter of the current fiscal year was 7,868 million
yen, down 808 million yen from the end of the previous fiscal year. This was mainly due to decreases of 541
million yen in notes and accounts payable-trade, 242 million yen in provision for bonuses and 108 million yen2

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

in provision for bonuses for directors (and other officers). The balance of non-current liabilities was 1,676
million yen at the end of the second quarter of the current fiscal year, up 39 million yen from the end of theprevious fiscal year.
As a result, total liabilities decreased 769 million yen from the end of the previous fiscal year to 9,545 million
yen.
Net assets
The balance of net assets at the end of the second quarter of the current fiscal year was 19,991 million yen,down 156 million yen from the end of the previous fiscal year. The main factors include the purchase oftreasury shares of 475 million yen, decreases of 134 million yen in valuation difference on available-for-salesecurities and 166 million yen in foreign currency translation adjustment, while there was an increase of 644
million yen in retained earnings.
Consequently, the capital adequacy ratio was 67.0% (65.5% at the end of the previous fiscal year).
(3) Explanation of Consolidated Earnings Fore casts and Other Forward-looking Statements
We maintain the full-year consolidated earnings forecasts that were disclosed in the “Revisions to the Fiscal
Year Forecast” dated November 8, 2019 (Japanese version only).

3

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

AssetsCurrent assets
Cash and deposits

5,580,286

6,008,163

Notes and accounts receivable-trade

6,873,408

6,138,233

Electronically recorded monetary claims -operating

2,738,020

2,815,297

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

55,84654,4502,214,986

2,225,747

29,78536,274

3,522,791

3,535,738

Other

446,732

382,450

Allowance for doubtful accounts(21,831)(23,855)

21,440,024

21,172,501

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

7,304,024

7,347,066(3,646,791)(3,738,891)

3,657,232

3,608,175

2,676,850

2,737,105(2,247,889)(2,312,175)

428,960

424,930

1,795,534

1,841,415(1,465,444)(1,502,064)

330,089

339,351

1,041,879

1,039,655

338,538

354,668

Accumulated depreciation(185,666)(207,286)

Leased assets, net

152,872

147,382

Construction in progress

11,071

11,553

Other

27,17828,506(19,444)(20,428)

Accumulated depreciation
Other, net
Total property, plant and equipment

7,733

8,077

5,629,839

5,579,126

Intangible assets
Goodwill

2,772

2,268Trademark right

58,57351,141

Other

132,297

198,025

Total intangible assets

193,643

251,435

Investment securities

2,275,208

1,558,753

Deferred tax assets

634,431685,290

Investments and other assets

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

4

290,448

290,289

3,200,088

2,534,333

9,023,571

8,364,895

30,463,596

29,537,396

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

FY3/19(As of Mar. 31, 2019)(Thousands of yen)
Second quarter of FY3/20(As of Sep. 30, 2019)

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

5,184,397

4,642,694

951,205

1,136,492

Lease obligations

64,97860,457

Income taxes payable

250,186

313,777

Provision for bonuses

881,140

638,456

Provision for bonuses for directors (and other officers)

140,000

31,975

Provision for product warranties

97,261

83,220Other

1,108,559

961,750

Total current liabilities

8,677,727

7,868,824

Lease obligations
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability106,058

105,108

51,687

51,687659,105

653,111

Asset retirement obligations

184,387

185,235

Other

636,283

681,704

Non-current liabilities

Total non-current liabilities
Total liabilities

1,637,521

1,676,845

10,315,249

9,545,669

1,044,691

1,044,691

Net assets
Shareholders’ equity
Share capital
Capital surplus

664,691

666,367

Retained earnings

17,687,437

18,331,891(559)(475,730)

19,396,260

19,567,219

Valuation difference on available -for -sale securities

232,113

97,277

Foreign currency translation adjustment

241,969

75,144Remeasurements of defined benefit plans

81,87763,511

Total accumulated other comprehensive income

555,960

235,934

196,127

188,572

20,148,347

19,991,726

30,463,596

29,537,396

Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income

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

5

IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/ 20(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Six-month Period)

Net sales(Thousands of yen)First six months of FY3/19
First six months of FY3/20(Apr. 1, 2018 – Sep. 30, 2018) (Apr. 1, 2019 – Sep. 30, 2019)14,704,642
14,086,741

Cost of sales

9,568,868

9,240,702

Gross profit

5,135,774

4,846,039

Selling, general and administrative expenses

3,926,016

3,804,522

Operating profit

1,209,758

1,041,516

Interest income

13,3585,846

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

23,273

16,499312,769

221,404

33,826

19,011

Total non-operating income

383,227

262,762

15,516

16,067

Foreign exchange losses

6,609

28,574

Business establishment transfer expenses

30,900-

Other

6,000

16,056

Non-operating income

Non-operating expenses
Interest expenses

Total non-operating expenses

59,02760,6981,533,958

1,243,580

Gain on sales of non-current assets

-

9,111

Gain on sales of investment securities-

153,234

Total extraordinary income-

162,345

Ordinary profit
Extraordinary income

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

6

1,722

301-8,756

1,722

9,058

1,532,236

1,396,868

452,837

362,784

1,079,399

1,034,083

11,092

9,542

1,068,306

1,024,541

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

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)

Profit(Thousands of yen)First six months of FY3/19
First six months of FY3/20(Apr. 1, 2018 – Sep. 30, 2018) (Apr. 1, 2019 – Sep. 30, 2019)
1,079,399
1,034,083

Other 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 ofparentComprehensive income attributable tonon-controlling interests

727,843(134,795)(114,673)(109,750)

4,072(18,365)(18,083)(57,445)(100,842)(320,356)

978,557

713,726

968,729704,515

9,827

9,211

IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/ 20(3) Notes to Q uarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Iwaki purchased 484,500 treasury shares pursuant to resolution of the Board of Directors meeting on May 14,
2019. In addition, following the resolution of the Board of Directors meeting on July 19, 2019, Iwaki sold
24,376 shares for directors (excluding outside directors) and senior officers of the Company as restricted stockcompensation.
As a result, treasury shares increased 475 million yen during the first half of the current fiscal year to 475
million yen at the end of the second quarter.
Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements
Calculation of tax expense
At Iwaki and certain consolidated subsidiaries, the tax expenses were calculated by first estimating theeffective tax rate after the application of tax effect accounting with respect to profit before income taxes during
the fiscal year, and multiplying that rate by the quarterly profit before income taxes.
Segment Information
Omitted because chemical pumps are the only business of the Iwaki Group.

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

8