Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Nine Months Ended December 31, 2022
(Based on Japanese GAAP)
February 10, 2023
Company name:IWATSU ELECTRIC CO., LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

6704
President

URL

https://www.iwatsu.co.jp

Inquiries:

Director & Executive Officer, General
Manager of Management DevisionShogo Kimura
Hidenori Tokida

TEL

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

February 13, 2023–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:Yes
No03-5370-5111(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toRevenue
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Nine months ended December 31, 2022
16,275
1.5(928)–(858)–(854)–
Nine months ended December 31, 2021
16,03013.3(326)–(230)–(135)–
Earnings per share

Diluted earnings per share

Yen(85.83)(13.68)Nine months ended December 31, 2022
Nine months ended December 31, 2021

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
35,16736,441As of December 31, 2022
As of March 31, 2022

Equity ratio

Millions of yen
24,40925,359

%
69.4
69.6

2. Cash dividends
Annual dividends per share

Year ended March 31, 2022
Year ending March 31, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen––

Yen
25.00

Yen
25.00

0.00

0.00

Year ending March 31, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Revenue
Full year

Millions of yen
23,000Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
(0.8)
(990)
–(880)–(880)–(88.27)1

4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2022

10,080,344 shares As of March 31, 2022

10,080,344 shares

Number of treasury shares at the end of the period
As of December 31, 2022

111,474 shares As of March 31, 2022

141,711 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2022

9,955,012 shares Nine months ended December 31, 2021

2

9,932,733 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of December 31, 2022

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

5,927
514

5,208558

Electronically recorded monetary claims - operating
Accounts receivable - trade

578
4,555

607
2,967

Merchandise and finished goods
Work in process

1,732
725

1,967
1,253

Raw materials and supplies
Other

3,044
154

3,584
329

(0)

(0)

17,232

16,474

5,377

5,198

Land
Other, net

10,032
1,193

10,042
1,128

Total property, plant and equipment

16,603

16,369911

611

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

Intangible assets
Software
Other4545

Total intangible assets

956657

1,149
533

1,323
376

(34)

(34)

Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

1,648

1,666

19,20818,69236,44135,167

(Millions of yen)
As of March 31, 2022

As of December 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

1,764

1,655

75
520

120
271

Provision for product warranties
Other

65
1,849

77
1,628

Total current liabilities

4,275

3,753

Non-current liabilities
Deferred tax liabilities

3,226

3,257

56
2,966

39
3,106557

599

Short-term borrowings
Provision for bonuses

Provision for share awards
Retirement benefit liability
Other
Total non-current liabilities

6,805

7,004

11,081

10,757

Share capital
Capital surplus

6,025
6,948

6,025
6,948

Retained earnings
Treasury shares

11,977(135)

10,874(112)

Total shareholders' equity

24,81523,735

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

304

427

Foreign currency translation adjustment
Remeasurements of defined benefit plans

0239

113
133

Total accumulated other comprehensive income

544

674

25,35924,40936,44135,167

Total net assets
Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)
Nine months ended

Nine months ended

December 31, 2021

December 31, 2022

Revenue
Cost of sales

16,03010,751

16,275
11,505Gross profit

5,278

4,769

Selling, general and administrative expenses

5,605

5,697

Operating loss

(326)

(928)

Interest income
Dividend income

341

16
48

Rental income from land and buildings
Other274227
37

Total non-operating income

115

130

Non-operating income

Non-operating expenses
Interest expenses

22

Foreign exchange losses
Other

51242
16

Total non-operating expenses

1960(230)

(858)

–86

314

Ordinary loss
Extraordinary income
Gain on sale of investment securities
Subsidy income

86

17

Loss before income taxes

Total extraordinary income

(143)

(840)

Income taxes - current
Income taxes - deferred30(38)

27(13)

Total income taxes(7)

14Loss(135)(854)

Loss attributable to owners of parent(135)

(854)

5

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

Loss
Other comprehensive income

Nine months ended

Nine months ended

December 31, 2021

December 31, 2022
(135)

(854)

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

1847

122
113

Remeasurements of defined benefit plans, net of tax

46(106)

Total other comprehensive income

112

129

Comprehensive income(23)(724)

Comprehensive income attributable toComprehensive income attributable to owners of parent

(23)

(724)

6