Iwaki : Summary of Consolidated Financial Results for the Second Quarter of Fiscal Year Ending March 31, 2022

		November 12, 2021
	Summary of Consolidated Financial Results
	for the Second Quarter of Fiscal Year Ending March 31, 2022
	(Six Months Ended September 30, 2021)
		[Japanese GAAP]
Company name:	IWAKI CO.,LTD.	Listing: Tokyo Stock Exchange, First Section
Stock code:	6237	URL: https://www.iwakipumps.co.jp/
Representative:	Shigeru Fujinaka, President
Contact:	Makoto Inoue, Executive Officer,

Senior General Manager of Business Management Head Office	Tel: [phone]
Scheduled date of filing of Quarterly Report:			November 12, 2021
Scheduled date of payment of dividend:			December 1, 2021
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, 2021
(April 1, 2021 - September 30, 2021)
(1) Consolidated results of operations							(Percentages represent year-on-year changes)
		Net sales		Operating profit		Ordinary profit	Profit attributable to
				owners of parent
		Million yen		%	Million yen	%		Million yen		%	Million yen	%
Six months ended Sep. 30, 2021		15,580		18.4	1,058	48.7		1,525		63.1	1,191	11.5
Six months ended Sep. 30, 2020		13,159		(6.6)	711	(31.7)		935		(24.8)	1,068	4.3

Note: Comprehensive income (million yen)	Six months ended Sep. 30, 2021:	1,457	(up 45.4%)
		Six months ended Sep. 30, 2020:	1,002	(up 40.5%)
	Net income per share	Diluted net income per
	share
		Yen		Yen
Six months ended Sep. 30, 2021		54.36			-
Six months ended Sep. 30, 2020		48.50			-
(2) Consolidated financial position
	Total assets		Net assets		Capital adequacy ratio
		Million yen		Million yen		%
As of Sep. 30, 2021		34,971		23,376		66.7
As of Mar. 31, 2021		32,211		22,520		69.7
Reference: Owner's equity (million yen)	As of Sep. 30, 2021: 23,312	As of Mar. 31, 2021: 22,456

2. Dividends

		Dividend per share
	1Q-end	2Q-end	3Q-end		Year-end	Total
	Yen	Yen	Yen		Yen	Yen
Fiscal year ended Mar. 31, 2021	-	8.00	-		21.00	29.00
Fiscal year ending Mar. 31, 2022	-	12.00
Fiscal year ending Mar. 31, 2022 (forecasts)			-		16.50	28.50

Note: Revisions to the most recently announced dividend forecasts: None

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)

(Percentages represent year-on-year changes)

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Net income per
				owners of parent	share
	Million yen		%	Million yen		%	Million yen		%	Million yen	%	Yen
Full year	31,459		11.7	1,836		7.6	2,634		18.6	2,072	(0.9)	94.60
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 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:	Yes
2)	Changes in accounting policies other than 1) above:	None
3)	Changes in accounting-based estimates:	None
4)	Restatements:	None

Note: Please refer to page 8 "2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly Consolidated Financial Statements, Changes in Accounting Policies" for details.

(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, 2021:	22,490,910 shares	As of Mar. 31, 2021:	22,490,910 shares
2) Number of treasury shares at the end of the period
As of Sep. 30, 2021:	585,863 shares	As of Mar. 31, 2021:	451,856 shares
3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2021:	21,921,251 shares	Six months ended Sep. 30, 2020:	22,031,327 shares

• 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 information available to Iwaki'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 Wednesday,
  November 24, 2021. Materials to be distributed at this event will be available on the Company's website in advance.

	IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/22
Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial P erformance	2
(1)	Explanation of Results of Operations	2
(2)	Explanation of Financial Position	2
(3)	Explanation of Consolidated Earnings Forecasts and Other Forward -looking Statements	3
2. 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	8
	Going Concern Assumption	8
	Significant Changes in Shareholders' Equity	8
	Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements	8
	Changes in Accounting Policies	8

1

IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/22

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, 2022, although the outlook for the Japanese economy remained uncertain because the government issued a fourth state of emergency to combat the resurgence of COVID-19 infections, investment in machinery and equipment started to look particularly in growth sectors. A similar trend was also noticed overseas, although uncertainties remain. On the other hand, demand for semiconductors and electronic components is increasing sharply. But we need to keep an on eye on the effects of supply shortages of semiconductors, electronic components, and other parts as well as effec ts on supply chains due to any resurgence of COVID -19 infections.

In Japan, Iwaki took many actions to improve its corporate value based on the core policy of "winning by improving customer satisfaction." Overseas, there were activities encompassing 21 af filiated companies in 15 countries to increase sales. The Iwaki Group continued to accelerate the implementation of various measures for achieving numerical targets of the Iwaki Group 10 -year vision of net sales of 40 billion yen and an operating margin of 10% in the fiscal year ending on March 31, 2025.

As a result, sales to the semiconductor/liquid crystal market where investment is still strong, increased by 58.3% year-on-year, driving up overall sales.

Sales in Japan increased 10.7% from one year earlier to 8,703 million yen as a result of higher sales in the semiconductor/liquid crystal, medical equipment, surface treatment equipment and new energy markets. Overseas, sales in Europe increased 59.7% to 1,831 million yen because of the inclusion of the four companies of the Iwaki Nordic Group (Denmark, Sweden, Finland and Norway) . Sales in the United States rose 9.1% to 1,864 million yen because sales were higher than one year earlier in all markets, including the water treatment market. In Asia, sales rose in the semiconductor/liquid crystal and surface treatment equipment markets , mainly for South Korea and Taiwan. As a result, sales were 1,545 million yen (up 49.4% year-on-year). Sales in China were down 0.8% to 964 million yen. Sales to the semiconductor/liquid crystal and new energy markets increased, but sales to the medical equipment market were affected by a decrease in customers' production of medical equipment due to semiconductor shortages.

By product category, sales in the core magnetic drive pu mp category were strong. Sales of pneumatic drive pumps for the semiconductor/liquid crystal market have also made a significant contribution to the increase in sales.

As a result, consolidated net sales increased 18.4% to 15,580 million yen.

Higher sales contributed to an increase in earnings. Operating profit increased 48.7% to 1,058 million yen and ordinary profit increased 63.1% to 1,525 million yen. Although the year-on-year increase was slower than ordinary profit mainly because there was an extraordinary income due to a step acquisition gain involving Iwaki Nordic A/S in the same period a year earlier, profit attributable to owners of parent in the current fiscal year's first half increased 11.5% to 1,191 million yen.

There is no business segment information because chemical pumps are the only business of the Iwaki Group.

(2) Explanation of Financial Position

Assets

The balance of current assets at the end of the second quarter of the current fiscal year was 25,508 million yen, up 2,783 million yen from the end of the previous fiscal year. This was mainly due to increases of 1,420 million yen in cash and deposits and 462 million yen in merchandise and finished goods. The balance of non-current assets was 9,462 million yen at the end of the second quarter, down 24 million yen from the end of the previous fiscal year. This was mainly because of a decrease of 120 million yen in investment securities, while there was an increase of 61 million yen in construction in progress .

As a result, total assets increased 2,759 million yen from the end of the previous fiscal year to 34,971 million yen.

2

IWAKI CO.,LTD. (6237) Financial Results for the Second Quarter of FY3/22

Liabilities

The balance of current liabilities at the end of the second quarter was 9,636 million yen, up 1,902 million yen from the end of the previous fiscal year. This was mainly due to increases of 2,970 million yen in electronically recorded obligations -operating and 294 million yen in short-term borrowings, while there was a decrease of 1,376 million yen in notes and accounts payable-trade. The balance of non-current liabilities was 1,958 million yen at the end of the second quarter, up 0 million yen from the end of the previous fiscal year.

As a result, total liabilities increased 1,903 million yen from the end of the previous fiscal year to 11,594 million yen.

Net assets

The balance of net assets at the end of the second quarter was 23,376 million yen, up 856 million yen from the end of the previous fiscal year. The main factors include increase s of 742 million yen in retained earnings and 372 million yen in foreign currency translation adjustment.

Consequently, the capital adequacy ratio was 66.7% (69.7% 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 forecasts that were disclosed in the " Notice of Extraordinary Losses and Revisions to the Consolidated Earnings Forecast and Dividend Forecast" (Japanese version only) dated October 15, 2021.

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