イワキポンプ（6237） – [Delayed]Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 Company name: Stock code: Representative: Contact: IWAKI CO.,LTD. 6237 Shigeru Fujinaka, President Makoto Inoue, Executive Officer, Senior General Manager of Business Management Head Office Listing: Tokyo Stock Exchange URL: https://www.iwakipumps.co.jp/ Tel: (81)3-3254-2931 May 13, 2022 [Japanese GAAP] Scheduled date of Annual General Meeting of Shareholders: Scheduled date of payment of dividend: Scheduled date of filing of Annual Securities Report: Preparation of supplementary materials for financial results: Yes Holding of financial results meeting: June 29, 2022 June 30, 2022 June 30, 2022 Yes (for institutional investors and analysts) (All amounts are rounded down to the nearest million yen) 1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 – March 31, 2022) (1) Consolidated results of operations (Percentages represent year-on-year changes) Net sales Operating profit Ordinary profit Fiscal year ended Mar. 31, 2022 Fiscal year ended Mar. 31, 2021 Note: Comprehensive income (million yen) Fiscal year ended Mar. 31, 2022: Fiscal year ended Mar. 31, 2021: 15.2 (1.7) Million yen 32,439 28,162 % Million yen 2,139 1,706 % Million yen 2,992 2,222 25.4 (19.3) 3,602 (up 43.3%) 2,514 (up 48.5%) Profit attributable to owners of parent % 14.6 (1.5) % Million yen 2,396 2,091 34.7 (13.8) Fiscal year ended Mar. 31, 2022 Fiscal year ended Mar. 31, 2021 Reference: Equity in earnings of affiliates (million yen) (2) Consolidated financial position Total assets As of Mar. 31, 2022 As of Mar. 31, 2021 Reference: Owner’s equity (million yen) (3) Consolidated cash flows Net income per share Diluted net income per share Yen – – Yen 109.37 94.90 Return on equity Ordinary profit on total assets % 8.5 7.1 % 10.1 9.7 Operating profit to net sales % 6.6 6.1 Fiscal year ended Mar. 31, 2022: 801 Fiscal year ended Mar. 31, 2021: 509 Net assets Million yen 37,963 32,211 Million yen 25,251 22,520 As of Mar. 31, 2022: 25,177 As of Mar. 31, 2021: 22,456 Capital adequacy ratio Net assets per share Yen 1,149.41 1,018.96 % 66.3 69.7 Cash flows from operating activities Million yen 2,710 2,089 Cash flows from investing activities Million yen (429) (920) Cash flows from financing activities Million yen (579) 149 Cash and cash equivalents at end of period Million yen 8,573 6,936 Fiscal year ended Mar. 31, 2022 Fiscal year ended Mar. 31, 2021 2. Dividends Dividend per share 1Q-end 2Q-end 3Q-end Year-end Total Total dividends Dividend payout ratio (consolidated) Fiscal year ended Mar. 31, 2021 Fiscal year ended Mar. 31, 2022 Fiscal year ending Mar. 31, 2023 (forecast) 3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2023 (April 1, 2022 – March 31, 2023) Yen Million yen 639 733 Yen 8.00 12.00 Yen 21.00 21.50 % 30.6 30.6 Yen – – Yen – – 29.00 33.50 13.00 22.00 35.00 30.1 – – Net sales Operating profit Ordinary profit (Percentages represent year-on-year changes) Net income per share Profit attributable to owners of parent First half Full year Million yen 17,082 34,830 % Million yen 1,196 9.6 2,748 7.4 % Million yen 1,533 3,411 13.0 28.5 % Million yen 1,091 0.5 2,547 14.0 % (8.4) 6.3 Yen 49.83 116.31 Dividend on equity (consolidated) % 3.0 3.1 * Notes (1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None (2) 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: 3) Changes in accounting-based estimates: 4) Restatements: None None None Note: Please refer to page 13 “3. Consolidated Financial Statements and Notes, (5) Notes to Consolidated Financial Statements, Changes in Accounting Policies” for details. (3) Number of outstanding shares (common shares) 1) Number of shares outstanding at the end of the period (including treasury shares) As of Mar. 31, 2022: 22,490,910 shares As of Mar. 31, 2021: 22,490,910 shares 2) Number of treasury shares at the end of the period 3) Average number of shares outstanding during the period As of Mar. 31, 2022: 585,863 shares As of Mar. 31, 2021: 451,856 shares 21,913,149 shares Fiscal year ended Mar. 31, 2022: Reference: Summary of Non-consolidated Financial Results Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 – March 31, 2022) (1) Non-consolidated results of operations (Percentages represent year-on-year changes) Fiscal year ended Mar. 31, 2021: 22,035,190 shares Operating profit Ordinary profit Net sales Million yen 25,622 22,293 % Million yen 2,002 1,237 14.9 (1.7) % Million yen 2,649 1,870 61.7 (14.0) Profit % Million yen 2,227 1,500 41.6 (8.1) % 48.5 (15.7) Fiscal year ended Mar. 31, 2022 Fiscal year ended Mar. 31, 2021 Fiscal year ended Mar. 31, 2022 Fiscal year ended Mar. 31, 2021 (2) Non-consolidated financial position Net income per share Diluted net income per share Yen – – Yen 101.66 68.09 Total assets Net assets Equity ratio As of Mar. 31, 2022 As of Mar. 31, 2021 Reference: Shareholders’ equity (million yen): Million yen 31,350 27,529 Million yen 19,464 18,197 As of Mar. 31, 2022: 19,464 * The current financial report is not subject to audit by certified public accountants or auditing firms. * Cautionary statement with respect to forward-looking statements Note concerning forward-looking statements Net assets per share Yen 888.58 825.68 As of Mar. 31, 2021: 18,197 % 62.1 66.1 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. Please refer to “1. Overview of Results of Operations, (1) Results of Operations, 2) Outlook” on page 2 for forecast assumptions and notes of caution for usage. How to view supplementary materials for the financial results Iwaki plans to hold a financial results meeting for institutional investors and analysts on May 27, 2022. Materials to be distributed at this event will be available on the Company’s website in advance. IWAKI CO.,LTD. (6237) Financial Results for FY3/22 Contents of Attachments 1. Overview of Results of Operations (1) Results of Operations (2) Financial Position 2. Basic Approach to the Selection of Accounting Standards 3. Consolidated Financial Statements and Notes (1) Consolidated Balance Sheet (2) Consolidated Statements of Income and Comprehensive Income Consolidated Statement of Income Consolidated Statement of Comprehensive Income (3) Consolidated Statement of Changes in Equity (4) Consolidated Statement of Cash Flows (5) Notes to Consolidated Financial Statements Going Concern Assumption Changes in Accounting Policies Reclassifications Segment and Other Information Per Share Information Subsequent Events 2 2 3 4 5 5 7 7 8 9 11 13 13 13 13 14 15 15 1 1. Overview of Results of Operations (1) Results of Operations 1) Operating results for the current fiscal year IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/22 During the fiscal year that ended on March 31, 2022, the Japanese economy moved toward normalcy as capital investment showed signs of recovery and the state of emergency and other restrictive measures were lifted. Nevertheless, the outlook remains uncertain because of global shortages of semiconductors and electronic components, soaring raw material prices, and the spread of new mutant strains of the COVID-19 virus. Overseas economies are also headed toward recovery as restrictions due to the COVID -19 pandemic are being eased. However, concerns about risks of economic downturn remain due to rising tensions in Ukraine which has led to sharply higher energy prices and supply chains disruptions. Iwaki has been taking many actions in Japan to improve its corporate value based on the core policy of “winning by improving customer satisfaction.” Overseas, there were activities encompassing 21 affiliated 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 Gr oup 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 based on the policy of “supplying the world’s best products as All Iwaki.” The semiconductor/liquid crystal market remained strong, increasing 51.2% from one year earlier and driving up sales against the backdrop of strong production of semiconductor manufacturing equipment. In addition, sales were also higher than one year earlier in all other markets. As a result, overall sales were favorable. Sales in Japan increased 7.9% from one year earlier to 17,997 million yen as a result of higher sales particularly in the semiconductor/liquid crystal, medical equipment and surface treatment equipment markets. Overseas, sales in Europe increased 34.0% to 3,972 million yen. This was because the four Iwaki Nordic Group companies (Denmark, Sweden, Finland, and Norway) were included in the consolidation for the full year (only from the third quarter in the previous fiscal year). In addition, overall sales, excluding the Iwaki Nordic Group, were also strong. Sales in the United States rose 21.4% to 4,301 million yen because sales largely the semiconductor/liquid crystal and surface treatment equipment markets for South Korea and Taiwan. As a result, sales were 2,865 million yen (up 31.1% year-on-year). Sales in China were up 15.6% to 2,044 million yen because sales to the semiconductor/liquid crystal and new energy markets increased, although the recovery in the medical equipment market was lackluster throughout the fiscal year. Sales were higher in all regional markets. treatment market. In Asia, sales rose mainly increased particularly the water in in By product category, sales of pneumatic drive pumps for the semiconductor/liquid crystal market have also made a significant contribution to the increase in sales. Sales of core versatile magnetic drive pumps were strong, and sales of metering pumps remained steady. As a result, consolidated net sales increased 15.2% to 32,439 million yen. Higher sales offset the rise in the cost of sales ratio and increase in selling, general and administrative expenses. As a result, operating profit increased 25.4% from one year earlier to 2,139 million yen. Ordinary profit was up 34.7% to 2,992 million yen as the share of profit of entities accounted for using equity method rose sharply. Profit attributable to owners of parent increased 14.6% to 2,396 million yen as there was no extraordinary income as in the previous fiscal year, increase in income taxes and other factors. There is no business segment information because chemical pumps are the only bus iness of the Iwaki Group. 2) Outlook Although the impact of the difficulties in parts procurement, soaring raw material prices and prolonged geopolitical risks resulting from the invasion of Ukraine on the economy is unclear, we forecast higher sales in the fiscal year ending March 31, 2023 because of the expected recovery in capital expenditures and the steady growth in orders for the products of the Iwaki Group . 2 IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/22 While continuing to focus on the theme of “winning by improving customer satisfaction,” we w ill use many activities in Japan for meeting the demand for product replacement and maintenance services. Overseas, we will create even closer ties with affiliated co mpanies with the goal of more growth in overseas markets. Based on this outlook, we forecast a 7.4% increase in consolidated net sales to 34,830 million yen, a 28.5% increase in operating profit to 2,748 million yen, a 14.0% increase in ordinary profit to 3,411 million yen, and a 6.3% increase in profit attributable to owners of parent to 2,547 million yen in the fiscal year ending on March 31, 2023. These projections are based on information available at the time this report was released. Actual results may differ from projections due to a variety of factors. (2) Financial Position 1) Assets, liabilities and net assets Assets The balance of current assets at the end of the current fiscal year was 27,370 million yen, up 4,646 million yen from the end of the previous fiscal year. This was mainly due to increases of 1,654 million yen in cash and deposits, 727 million yen in electronically recorded monetary claims-operating, and 1,153 million yen in raw materials and supplies. The balance of non-current assets was 10,592 million yen at the end of the current fiscal year, up 1,105 million yen from the end of the previous fiscal year. This was mainly because of increases of 216 million yen in investment securities and 887 million yen in retirement benefit asset. As a result, total assets increased 5,751 million yen from the end of the previous fiscal year to 37,963 million yen. Liabilities The balance of current liabilities at the end of the current fiscal year was 11,034 million yen, up 3,301 million yen from the end of the previous fiscal year. This was mainly due to an increase of 3,209 million yen in electronically recorded obligations-operating. The balance of non-current liabilities was 1,677 million yen at the end of the current fiscal year, down 280 million yen from the end of the previous fiscal year. This was mainly due to a decrease of 264 million yen in retirement benefit liability. As a result, total liabilities increased 3,020 million yen from the end of the previous fiscal year to 12,711 million yen. Net assets The balance of net assets at the end of the current fiscal year was 25,251 million yen, up 2,731 million yen from the end of the previous fiscal year. The main factors include increases of 1,668 million yen in retained earnings and 739 million yen in remeasurements of defined benefit plans. Consequently, the capital adequacy ratio was 66.3% (69.7% at the end of the previous fiscal year). 2) Cash flows Cash and cash equivalents (hereinafter, “net cash”) at the end of the current fiscal year was 8,573 million yen, up 1,637 million yen over the end of the previous fiscal year (a n increase of 1,229 million yen in the previous fiscal year). The cash flow components during the current fiscal year and the main reasons for changes are as described below. Cash flows from operating activities Net cash provided by operating activities was 2,710 million yen (2,089 million yen provided in the previous fiscal year). Positive factors include profit before income taxes of 3,107 million yen, which offset negative 3 factors including income taxes paid of 598 million yen. Cash flows from investing activities IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/22 Net cash used in investing activities was 429 million yen (920 million yen used in the previous fiscal year). Negative factors include purchase of property, plant and equipment and intangible assets of 628 million yen, which offset positive factors including proceeds from sale of investment securities of 198 million yen. Cash flows from financing activities Net cash used in financing activities was 579 million yen (149 million yen provided in the previous fiscal year). Negative factors include dividends paid of 723 million yen, which offset positive factors including a net increase in short-term borrowings of 489 million yen. 2. Basic Approach to the Selection of Accounting Standards The Iwaki Group will continue to prepare consolidated financial statements using Japanese accounting standards for the time being to permit comparisons with prior years and with the financial data of other companies. We will take suitable actions with regard to the application of International Financia l Reporting Standards (IFRS) by taking into account associated factors in Japan and other countries. 4 3. Consolidated Financial Statements and Notes (1) Consolidated Balance Sheet Assets Current assets Cash and deposits Notes and accounts receivable-trade Notes receivable-trade Accounts receivable-trade Electronically recorded monetary claims-operating Merchandise and finished goods Work in process Raw materials and supplies Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures Accumulated depreciation and impairment Buildings and structures, net Machinery, equipment and vehicles Accumulated depreciation and impairment Machinery, equipment and vehicles, net Tools, furniture and fixtures Accumulated depreciation and impairment Tools, furniture and fixtures, net Land Leased assets Accumulated depreciation Leased assets, net Construction in progress Other Accumulated depreciation Other, net Total property, plant and equipment Intangible assets Goodwill Trademark right Other Total intangible assets Investments and other assets Investment securities Deferred tax assets Retirement benefit asset Other Total investments and other assets Total non-current assets Total assets 5 IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/22 FY3/21 (As of Mar. 31, 2021) FY3/22 (As of Mar. 31, 2022) (Thousands of yen) 22,724,788 27,370,790 7,127,637 6,396,840 3,168,898 2,587,283 57,518 3,131,450 282,115 (26,955) – – 7,571,174 (3,988,958) 3,582,216 3,005,576 (2,563,625) 441,951 2,013,058 (1,675,948) 337,110 1,041,934 343,294 (140,243) 203,051 84,481 37,184 (28,490) 8,694 5,699,439 769,340 33,044 333,210 1,135,596 1,893,584 460,137 – 298,217 2,651,939 9,486,975 32,211,764 – 8,781,886 793,843 5,781,820 3,896,433 3,274,488 119,888 4,285,302 489,283 (52,156) 7,866,212 (4,184,745) 3,681,467 3,246,918 (2,775,483) 471,435 2,071,207 (1,770,695) 300,511 1,043,711 350,172 (176,849) 173,323 16,369 44,400 (34,044) 10,356 5,697,174 706,796 26,788 529,048 1,262,634 2,110,109 323,464 887,160 312,168 3,632,902 10,592,711 37,963,502 IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/22 FY3/21 (As of Mar. 31, 2021) FY3/22 (As of Mar. 31, 2022) (Thousands of yen) 3,804,556 675,571 820,592 75,000 76,259 280,804 – 752,791 90,332 73,235 1,084,479 7,733,624 637,500 154,294 264,352 196,119 705,395 1,957,661 9,691,286 1,044,691 675,384 20,673,009 (456,247) 21,936,836 102,329 123,917 293,781 520,029 63,611 22,520,477 32,211,764 2,492,928 3,884,760 1,244,747 75,000 74,399 587,120 44,987 1,022,448 131,504 90,778 1,385,959 11,034,634 562,500 124,271 – 223,382 767,173 1,677,327 12,711,961 1,044,691 674,127 22,341,167 (586,764) 23,473,221 1,460 669,870 1,033,434 1,704,765 73,554 25,251,541 37,963,502 Liabilities Current liabilities Notes and accounts payable-trade Electronically recorded obligations-operating Short-term borrowings Current portion of long-term borrowings Lease liabilities Income taxes payable Contract liabilities Provision for bonuses Provision for bonuses for directors (and other officers) Provision for product warranties Other Total current liabilities Non-current liabilities Long-term borrowings Lease liabilities Retirement benefit liability Asset retirement obligations Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets Total liabilities and net assets 6 (2) Consolidated Statements of Income and Comprehensive Income Consolidated Statement of Income IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/22 FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) (Thousands of yen) Selling, general and administrative expenses Net sales Cost of sales Gross profit Operating profit Non-operating income Interest income Dividend income Share of profit of entities accounted for using equity method Foreign exchange gains Other Total non-operating income Non-operating expenses Interest expenses Commission expenses Foreign exchange losses Loss on amortization of restricted stock remuneration Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of non-current assets Gain on sale of investment securities Gain on step acquisitions Insurance claim income Other Total extraordinary income Extraordinary losses Loss on retirement of non-current assets Loss on sale of non-current assets Settlement payments Total extraordinary losses Profit before income taxes Income taxes-current Income taxes-deferred Total income taxes Profit attributable to non-controlling interests Profit attributable to owners of parent Profit 28,162,392 18,459,042 9,703,349 7,996,815 1,706,534 – – – – – – 7,438 21,902 509,391 50,321 589,054 24,553 5,749 23,965 6,944 12,312 73,525 2,222,063 243 381,161 381,405 7,164 7,164 2,596,303 494,677 1,576 496,253 2,100,049 8,855 2,091,193 7 32,439,738 21,410,373 11,029,364 8,889,922 2,139,442 3,059 16,224 801,694 38,450 37,190 896,619 17,936 9,424 – – – 16,199 43,560 2,992,500 172 140,267 39,668 1,005 181,113 10,555 862 55,000 66,418 3,107,195 841,884 (150,515) 691,369 2,415,826 19,079 2,396,747 Consolidated Statement of Comprehensive Income Profit 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 owners of parent Comprehensive income attributable to non-controlling interests IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/22 FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) (Thousands of yen) FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) 2,100,049 13,862 (52,157) 429,414 23,766 414,887 2,514,937 2,507,249 7,687 2,415,826 (100,962) 376,587 739,653 171,730 1,187,008 3,602,835 3,581,482 21,352 8 IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/22 (3) Consolidated Statement of Changes in Equity FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity 1,044,691 675,803 19,143,574 (475,730) 20,388,338 (Thousands of yen) Total shareholders’ equity (561,759) 2,091,193 (561,759) 2,091,193 (419) 19,482 19,063 (419) 1,529,434 19,482 1,548,498 1,044,691 675,384 20,673,009 (456,247) 21,936,836 Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income (Thousands of yen) Non-controlling interests Total net assets 88,669 150,937 (135,633) 103,974 31,510 20,523,823 (561,759) 2,091,193 19,063 13,660 (27,019) 429,414 416,055 32,100 448,156 13,660 (27,019) 429,414 416,055 32,100 1,996,654 102,329 123,917 293,781 520,029 63,611 22,520,477 – 9 FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/22 Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity (Thousands of yen) Total shareholders’ equity 1,044,691 675,384 20,673,009 (456,247) 21,936,836 Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period (725,680) 2,396,747 (725,680) 2,396,747 (181,687) (181,687) (1,257) (2,908) 51,171 47,005 – (1,257) 1,668,157 (130,516) 1,536,384 1,044,691 674,127 22,341,167 (586,764) 23,473,221 Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income (Thousands of yen) Non-controlling interests Total net assets 102,329 123,917 293,781 520,029 63,611 22,520,477 (725,680) 2,396,747 (181,687) 47,005 (100,869) 545,952 739,653 1,184,735 9,943 1,194,678 (100,869) 545,952 739,653 1,184,735 9,943 2,731,063 1,460 669,870 1,033,434 1,704,765 73,554 25,251,541 10 IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/22 FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) (Thousands of yen) 2,596,303 725,795 39,832 (955) 26,713 47,037 (27,924) (51,687) (29,340) 24,553 – – 32,170 (509,391) (381,161) 49,062 7,477 (244,575) (85,764) 42,893 (267,890) 33,539 2,026,686 358,225 (17,739) (277,642) 2,089,531 (213,621) 342,008 (594,693) – – – 770 – (442,071) (12,506) (920,113) 3,107,195 759,607 83,520 22,280 269,179 41,014 (88,664) (19,283) (39,668) 17,936 (140,267) 74,171 (801,694) – – (786,800) (1,707,470) 1,819,770 61,376 88,104 (14,130) 55,000 (6,403) 2,794,773 542,956 39,668 (12,664) (55,000) (598,827) 2,710,905 (201,063) 199,563 (628,194) 2,233 198,967 – (697) (429,191) (4) Consolidated Statement of Cash Flows Cash flows from operating activities Profit before income taxes Depreciation Amortization of goodwill Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for bonuses Increase (decrease) in provision for bonuses for directors (and other officers) Increase (decrease) in retirement benefit liability Increase (decrease) in provision for retirement benefits for directors (and other officers) Interest and dividend income Insurance claim income Interest expenses Loss (gain) on sales of investment securities Foreign exchange losses (gains) Share of loss (profit) of entities accounted for using equity method Loss (gain) on step acquisitions Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Increase (decrease) in accounts payable-other Increase (decrease) in accrued expenses Increase (decrease) in accrued consumption taxes Settlement payments Other, net Subtotal Interest and dividends received Proceeds from insurance income Interest paid Settlement paid Income taxes paid Net cash provided by (used in) operating activities Cash flows from investing activities Payments into time deposits Proceeds from withdrawal of time deposits Purchase of property, plant and equipment and intangible assets Proceeds from sale of property, plant and equipment and intangible assets Proceeds from sale of investment securities Purchase of shares of subsidiaries resulting in change in scope of consolidation Other, net Net cash provided by (used in) investing activities 11 IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/22 FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) (Thousands of yen) FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) Cash flows from financing activities Net increase (decrease) in short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Repayments of lease liabilities Purchase of treasury shares Dividends paid Dividends paid to previous shareholders of new subsidiaries Dividends paid to non-controlling interests Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 107,249 750,000 (37,500) (53,913) – (560,932) (50,172) (5,653) 149,076 (89,087) 1,229,406 5,706,726 6,936,133 489,092 (75,000) (76,957) (181,687) (723,377) – – (11,409) (579,340) (64,610) 1,637,764 6,936,133 8,573,897 12 IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/22 (5) Notes to Consolidated Financial Statements Going Concern Assumption Not applicable. Changes in Accounting Policies Application of the Accounting Standard for Revenue Recognition Iwaki started to apply the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020) and the Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30, March 26, 2021) at the beginning of the current fiscal year. Based on this standard, revenue expected to be received in exchange for the provision of goods and services is recognized when the control of the goods and services is transferred to customers. In prior years, revenue for some export sales was recognized by using the shipping date standard. Due to the use of this new standard, revenue for these sales is now recognized when risk concerning the products is transferred to the customer in accordance with trade terms stipulated by International Commercial Terms (Incoterms) and other guidelines. For sales of products in Japan, the alternate treatment specified in Paragraph 98 of the Implementation Guidance on Accounting Standard for Revenue Recognition is also applied. Revenue is recognized when a product is shipped in cases where the time between the shipment of a product and the transfer of control to a customer is the normal length of time. The new revenue recognition standard is applied in accordance with the transitional treatment prescribed in the proviso to Paragraph 84 of this standard. There was no effect on retained earnings at the beginning of the current fiscal year. In addition, the application of this standard had no effect on earnings in the current fiscal year. Due to the application of the new revenue recognition standard, the “notes and accounts receivable-trade” item in the current assets section of the consolidated balance sheet in the previous fiscal year is, beginning with the current fiscal year, presented as “notes receivable-trade” and “accounts receivable-trade.” In addition, the “other” item in the current liabilities section is, beginning with the current fiscal year, presented as “contract liabilities” and “other.” In accordance with the transitional treatment prescribed in Paragraph 89-2 of this new standard, no reclassification has been made to the prior year ’s consolidated financial statements to conform to the new presentation. Application of the Accounting Standard for Measurement of Fair Value Iwaki started to apply the Accounting Standard for Measurement of Fair Value, etc. (ASBJ Statement No. 30, July 4, 2019) at the beginning of the current fiscal year, and has applied the new accounting policies set forth by the Accounting Standard for Measurement of Fair Value, etc. prospectively in accordance with the transitional measures in Paragraph 19 of the Accounting Standard for Measurement of Fair Value and Paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019). There is no effect of the application of these standards on the consolidated financial statements. Reclassifications Consolidated Statement of Income “Commission expenses,” included in “Other” under non-operating expenses in the previous fiscal year, is presented separately from the current fiscal year due to an increase in its monetary materiality. To conform to this change, the consolidated financial statements for the previous fiscal year are reclassified. As a result, “Other” (18,062 thousand yen) under non-operating expenses presented in the previous fiscal year’s consolidated statement of income has been reclassified and divided into “Commission expenses” (5,749 thousand yen) and “Other” (12,312 thousand yen). 13 IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/22 Segment and Other Information a. Segment information Omitted because chemical pumps are the only business of the Iwaki Group. b. Related information FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) 1. Information by product or service External sales 9,044,181 Magnetic drive pumps Metering pumps Pneumatic drive pumps Air pumps 1,589,987 5,211,942 2,687,164 System products Purchased products 2,575,477 1,419,265 (Thousands of yen) Rotary displacement pumps 2,134,797 Other Total 3,499,577 28,162,392 2. Information by region (1) Net sales (2) Property, plant and equipment 3. Information by major client Japan 16,686,089 Europe 2,963,399 Americas 3,543,310 Asia 2,186,612 China 1,768,836 Other 1,014,145 Note: Classification of net sales is based on the location of the client and categorized by country or region. (Thousands of yen) Total 28,162,392 Japan Europe Americas Asia 4,819,080 661,234 170,342 48,782 5,699,439 (Thousands of yen) Total Omitted because no specific external client accounts for 10% or more of net sales in the consolid ated statement of income. FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) 1. Information by product or service Magnetic drive pumps 10,828,106 Air pumps 1,566,008 Metering pumps Pneumatic drive pumps 5,483,689 4,243,157 System products Purchased products 2,750,359 1,625,220 (Thousands of yen) Rotary displacement pumps 2,118,435 Other Total 3,824,760 32,439,738 External sales 2. Information by region (1) Net sales Japan 17,997,597 Europe 3,972,181 Americas 4,301,038 Asia 2,865,598 China 2,044,069 Other 1,259,253 Note: Classification of net sales is based on the location of the client and categorized by country or region. (Thousands of yen) Total 32,439,738 (2) Property, plant and equipment 3. Information by major client Japan Europe Americas Asia 4,770,657 686,983 188,834 50,698 5,697,174 (Thousands of yen) Total Omitted because no specific external client accounts for 10% or more of net sales in the consolidated statement of income. 14 IWAKI CO.,LTD. (6237) Financial Results for the Third Quarter of FY3/22 c. Information related to impairment losses on non-current assets for each reportable segment Not applicable. d. Information related to goodwill amortization and the unamortized balance for each reportable segment Omitted because chemical pumps are the only business of the Iwaki Group. e. Information related to gain on bargain purchase for each reportable segment Not applicable. Per Share Information FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) Notes: 1. Diluted net income per share is not presented because there are no latent shares. 2. The basis of calculating the net income per share is as follows: FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) 2,091,193 2,396,747 Net assets per share Net income per share Profit attributable to owners of parent (Thousands of yen) Amount not attributable to common shareholders (Thousands of yen) Profit attributable to owners of parent applicable to common shares (Thousands of yen) Average number of shares outstanding (Shares) Subsequent Events Not applicable. (Yen) 1,149.41 109.37 – 2,396,747 21,913,149 1,018.96 94.90 – 2,091,193 22,035,190 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 of readers who prefer an English translation. 15