November 10, 2017

Summary of Consolidated Financial Results
for the Second Quarter of Fiscal Year Ending March 31, 2018
(Six Months Ended September 30, 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:
November 14, 2017
Scheduled date of payment of dividend:
December 1, 2017
Preparation of supplementary materials for quarterly financial results:
Yes
Holding of quarterly 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 Second Quarter Ended September 30, 2017
(April 1, 2017 – September 30, 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%Six months ended Sep. 30, 201713,435
8.41,015
31.6
1,354
24.7
1,016
30.4
Six months ended Sep. 30, 2016
12,394
771
1,086
779
Note: Comprehensive income (million yen) Six months ended Sep. 30, 2017: 1,069 (- %)Six months ended Sep. 30, 2016:14 (- %)Net income per share

Diluted net income per share

YenYenSix months ended Sep. 30, 2017135.78Six months ended Sep. 30, 2016
104.12
Note: The year-on-year changes for the six months ended September 30, 2016 are not presented because the quarterly
consolidated financial statements were not prepared in the six months ended September 30, 2015.
(2) Consolidated financial position

As of Sep. 30, 2017
As of Mar. 31, 2017
Reference: Owner’s equity (million yen)

Total assets
Net assets
Capital adequacy ratio
Million yen
Million yen%
27,477
17,684
63.7
26,253
16,906
63.7
As of Sep. 30, 2017: 17,490
As of Mar. 31, 2017: 16,718

2. Dividends
1Q-endYen

Dividend per share
2Q-end3Q-endYear-end
Yen

Yen

Yen

TotalYen

30.00
38.00
68.00
Fiscal year ended Mar. 31, 2017
34.00
Fiscal year ending Mar. 31, 2018
36.00
70.00
Fiscal year ending Mar. 31, 2018 (forecasts)
Note: Revisions to the most recently announced dividend forecast: Yes
Regarding revisions to the dividend forecast, please see the press release dated today (November 10, 2017) concerning thedifference between the first half forecast and actual performance, the revisions to the fiscal year forecast and year-end
dividend forecast, and the interim dividend (Japanese version only).

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 per
Net sales
Operating profit
Ordinary profit
owners of parent
shareMillion 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: Yes
Regarding revisions to the consolidated earnings forecast, please see the press release dated today (November 10, 2017)
concerning the difference between the first half forecast and actual performance, the revisions to the fiscal year forecast
and year-end dividend forecast, and the interim dividend (Japanese version only).

* 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 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: None
2) Changes in accounting policies other than 1) above:None

3) 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, 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 Sep. 30, 2017:65 shares3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2017:

7,484,346 shares

Six months ended Sep. 30, 2016:

7,484,362 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 th eCompany’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.
How to view supplementary information at the quarterly financial results meeting
The Company plans to hold a quarterly financial results meeting for institutional investors and analysts on November 29, 2017.
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 FY3/18

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

8Significant Changes in Shareholders’ Equity

8Application 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 Second Quarter of FY3/18

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, 2018 , earnings at Japanese companies continued torecover slowly and the environment for jobs and personal income improved. One reason is the yen’s decline andstock market rally after the 2016 U.S. presidential election. However, the economic outlook remains uncertain
because of many reasons for concern about the global economy, including the policies of the U.S. administrationand tension involving North Korea. Overseas, there are expectations for an upturn because of strength in financial
markets and recoveries in manufacturing and international trade. But trade protectionism is growing, especially inindustrialized countries and structural problems like income inequality are growing. Worries about these trends
are slowing down the economic recovery.
In Japan, IWAKI CO.,LTD (Iwaki) had programs aimed at building stronger relationships with customers anddeveloping products that meet customers’ demands. All activities are based on the core policy of “competing andwinning.” Overseas, Iwaki had activities encompassing 21 affiliated companies in 15 countries to increase sales.
Due to these activities, sales in Iwaki’s six major markets were higher than one year earlier. Large investments
involving memory devices used in smartphones and servers were behind sales growth in the semiconductor/liquid
crystal market and surface treatment equipment market. Sales increased in the water treatment market andchemical market, too. In Europe, the new energy market is recovering due to strong sales fueled b y capital
expenditures for wind power generation and other equipment.
Domestic sales increased 6.8% from one year earlier to 8,304 million yen. Sales were driven by favorable demand
from the semiconductor/liquid crystal and surface treatment equipment mark ets. In addition, water treatment
market remained steady and the chemical market was strong. In Europe, sales were up 2.8% to 1,222 million yen.
Sluggish sales in the semiconductor/liquid crystal and surface treatment markets were offset by strength in thenew energy market and a steady performance in the water treatment and chemical markets. In the United States,sales increased 0.9% to 1,668 million yen as weakness in the medical equipment market was outweighed bygrowth in other markets, chiefly water treatment. In Asia, high levels of activity in the semiconductor/liquid
crystal market in South Korea and the surface treatment equipment market in Taiwan resulted in sales growth of
27.6% to 1,269 million yen. Sales in China were up 42.5% to 517 million yen because of higher sales in themedical equipment market, partly the result of the Chinese government’s campaign to develop medical equipmentthat is made in China.
By product, sales of pneumatic drive pumps for the semiconductor/liquid crystal markets con tinued 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 8.4% to 13,435 million yen.
Earnings benefited primarily from the growth in sales and a reexamination of expenses. Operating profit
increased 31.6% to 1,015 million yen, ordinary profit increased 24.7% to 1,354 million yen and profit attributableto owners of parent increased 30.4% to 1,016 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 20,978 million yen, up
1,146 million yen from the end of the previous fiscal year. This was mainly due to increases of 349 million yen incash and deposits, 525 million yen in notes and accounts receivable-trade and 168 million yen in raw materials
and supplies. The balance of non-current assets was 6,499 million yen at the end of the second quarter, up 77

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

million yen from the end of the previous fiscal year. This was mainly because of a 52 million yen increase inconstruction in progress.
As a result, total assets increased 1,223 million yen from the end of the previous fiscal year to 27,477 million yen.
Liabilities
The balance of current liabilities at the end of the second quarter of the current fiscal year was 7,460 million yen,up 429 million yen from the end of the previous fiscal year. This was mainly due to an increase of 379 million
yen in notes and accounts payable-trade. The balance of non-current liabilities was 2,331 million yen at the end of
the second quarter, up 16 million yen from the end of the previous fiscal year. This was mainly due to a 7 million
yen increase in lease obligations.
As a result, total liabilities increased 445 million yen from the end of the previous fiscal year to 9,792 million
yen.
Net assets
The balance of net assets was 17,684 million yen at the end of the second quarter of the current fiscal year, up 778
million yen from the end of the previous fiscal year. The main factors include a 731 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
The forecast for the fiscal year ending on March 31, 2018 has been revised t o reflect first half results ofoperations. For more information, please see the press release dated today (November 10, 2017) concerning thedifference between the first half forecast and actual performance, the revisions to the fiscal year forecast andyear-end dividend forecast, and the interim dividend (Japanese version only).

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IWAKI CO.,LTD. (6237) Financial Results for the Second 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)
Second quarter of FY3/18(As of Sep. 30, 2017)

AssetsCurrent assets
Cash and deposits

6,191,508

6,541,325

Notes and accounts receivable-trade

6,434,549

6,960,331

Electronically recorded monetary claims-operating

1,988,682

2,068,707

112,738-

1,901,218

1,938,109

30,15532,4182,437,457

2,605,795

502,614521,069

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

253,912

330,671

Allowance for doubtful accounts(20,816)(20,307)

19,832,021

20,978,120

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, netLand
Leased assets
Accumulated depreciation

4,636,9784,649,639(3,514,143)(3,558,985)

1,122,834

1,090,653

2,231,416

2,302,235(1,985,609)(2,058,044)

245,807244,191

1,601,918

1,650,994(1,375,807)(1,412,993)

226,111238,001

1,036,769

1,039,396

485,543

419,058(317,020)(248,500)

Leased assets, net

168,523

170,558

Construction in progress

918,646

971,613

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

17,494

20,038(11,924)(13,896)

5,569

6,141

3,724,263

3,760,555

Intangible assets
Goodwill

19,7189,283

Trademark right

86,21977,117

Other

117,682

123,691

Total intangible assets

223,619

210,093

Investment securities

2,064,168

2,123,210

Deferred tax assets

142,215

130,622

Investments and other assets

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

4

267,571

274,686

2,473,955

2,528,519

6,421,838

6,499,168

26,253,859

27,477,288

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

FY3/17(As of Mar. 31, 2017)(Thousands of yen)
Second quarter of FY3/18(As of Sep. 30, 2017)

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

4,345,679

4,725,169

576,160

670,245

Lease obligations

75,51770,601

Income taxes payable

300,437

315,639

Provision for bonuses

716,527735,902

Provision for directors’ bonuses

100,120

29,809Provision for product warranties

98,485

108,343

Other

818,564

804,869

7,031,491

7,460,580

Long-term loans payable

300,000

300,000

Lease obligations

106,584

114,478

Total current liabilities
Non-current liabilities

Deferred tax liabilities

72,22669,423

Provision for directors’ retirement benefits

151,043

151,043

Net defined benefit liability

885,513885,438

Asset retirement obligations

205,500

206,515

Other594,892

604,9212,315,762

2,331,821

9,347,253

9,792,401

Capital stock

1,018,250

1,018,250

Capital surplus

638,250

638,250

Retained earnings

14,637,110

15,368,935

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

Treasury shares

(30)

(164)

16,293,580

17,025,271

Valuation difference on available-for-sale securities

250,907

310,746

Foreign currency translation adjustment

309,458

269,427

Remeasurements of defined benefit plans(135,090)(115,150)

425,274

465,023

187,750

194,592

16,906,605

17,684,887

26,253,859

27,477,288

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 Second Quarter of FY3/18(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Six-month Period)First six months of FY3/17(Apr. 1, 2016 – Sep. 30, 2016)(Thousands of yen)First six months of FY3/18(Apr. 1, 2017 – Sep. 30, 2017)

Net sales

12,394,681

13,435,975

Cost of sales

8,368,940

8,919,204

Gross profit

4,025,740

4,516,771

Selling, general and administrative expenses

3,254,433

3,501,434

771,307

1,015,336

Interest income

13,635

13,709Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains

20,367

20,345

148,383

238,755

112,886

63,392

Operating profit
Non-operating income

Other

37,721

25,268

Total non-operating income

332,994

361,471

Interest expenses

8,981

13,996

Other

8,800

7,956

Non-operating expenses

Total non-operating expenses

17,781

21,953

1,086,519

1,354,854

Gain on sales of non-current assets

92699

Total extraordinary income

92699

Loss on retirement of non-current assets

726

1,925

Total extraordinary losses

726

1,925

1,085,886

1,353,628

Ordinary profitExtraordinary income

Extraordinary losses

Profit before income taxes
Income taxes

303,883

324,120

Profit782,003

1,029,507

2,761

13,277779,242

1,016,230

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

6

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

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)(Thousands of yen)First six months of FY3/17
First six months of FY3/18(Apr. 1, 2016 – Sep. 30, 2016) (Apr. 1, 2017 – Sep. 30, 2017)
Profit782,003

1,029,507

Valuation difference on available-for-sale securities(187,205)

59,839Foreign currency translation adjustment(438,532)(41,062)

20,891

19,940(162,331)

1,128

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(767,177)

39,846

14,826

1,069,353

14,9201,055,978(93)

13,375Comprehensive 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 Second 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 fisc al
year, and multiplying that rate by the quarterly profit before income taxes.
Segment and Other Information
Segment information
I. First six months of FY3/17 (Apr. 1, 2016 – Sep. 30, 2016)
Omitted because chemical pumps are the only business of the Iwaki Group.
II. First six months of FY3/18 (Apr. 1, 2017 – Sep. 30, 2017)
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), whic h has beenprepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience ofreaders who prefer an English translation.

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