Iwaki : Results of Operations for the First Half of the Fiscal Year Ending March 31, 2022 (FY3/22)

Results of Operations for the

First Half of the Fiscal Year Ending March 31, 2022 (FY3/22)

November 12, 2021

IWAKI CO.,LTD.

Stock code: 6237

Trade name: Iwaki Pump

Contents

I.	Summary of 1H FY3/22 Financial Results	・・・・P 3
II.	Outlook for FY3/22	・・・・P 15
III. Medium-term Management Plan	・・・・P 24
	Business Development and Growth
IV.	Appendix	・・・・P 30

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I. Summary of 1H FY3/22 Financial Results

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1 Financial Summary

Record-high first half sales backed by strong semiconductor/liquid crystal industry investments

			1H FY3/21		1H FY3/22
			Amount	Amount	Differences	YoY change
			(Millions of yen)	(Millions of yen)
Net sales		13,159	15,580	2,420	+18.4%
Gross profit		4,470	5,267	796	+17.8%
(Gross margin)		(34.0%)	(33.8%)
Operating profit		711	1,058	346	+48.7%
(Operating margin)		(5.4%)	(6.8%)
Ordinary profit		935	1,525	590	+63.1%
Profit attributable to owners of	1,068	1,191	122	+11.5%
parent
Net income per share (Yen)	48.50	54.36	5.85	+12.1%
Exchange rate		USD/JPY (Yen)	108.25		107.82
(average)		EUR/JPY (Yen)	119.34		129.88

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Sales and Earnings Highlights

Sales: Record-high 1H sales of ¥3,053 million in the semiconductor/liquid crystal category

• Strong sales in all categories except medical equipment, resulting in sales growth of ¥2,420 million from one year earlier.
• 2Q semiconductor/liquid crystal category sales were a record-high ¥1,566 million.
• Only medical equipment category sales were down, the result of lower customers' production of equipment due to the semiconductor shortage.
• Iwaki Nordic Group (ING) contributed ¥648 million to 1H FY3/22 sales (before eliminations for consolidation)
• Large volume of orders, mainly in the semiconductor/liquid crystal category. Concerns about negative effects of tight supplies of resin for pneumatic drive pump components and of the difficulty of purchasing some parts due to overseas supply chain problems due to the pandemic.

2	Operating profit: Higher cost of sales and SG&A expenses due to consolidation adjustments, resulting in
an increase of ¥346 million

• As in the 1Q, differences in fiscal periods of consolidated subsidiaries had an effect on consolidation adjustments. Gross profit increased 17.8% (¥796 million) to ¥5,267 million.
• SG&A expenses

・Expenses increased ¥287 million due to inclusion of ING in income statements. ・Expenses increased ¥41 million for ING goodwill amortization.

• R&D expenses increased ¥87 million.
• Expenses increased ¥30 million for exports/imports.

Total SG&A expenses increased ¥449 million due to the above factors.

3	Profit attributable to owners of parent: Equity-method profit increased but extraordinary income was
not as much as the previous fiscal year.

• Sales were higher in the semiconductor/liquid crystal market mainly in South Korea, Taiwan, Shanghai and Hong Kong.
• FY3/21 extraordinary income for a gain of ¥347 million due to the step acquisition of ING.

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