ANEST IWATA : FY2021 Third Quarter Consolidated Financial Results

FY2021 Third Quarter Consolidated Financial Results [Japan GAAP]

(April 1, 2021 through December 31, 2021)

	February 10, 2022
Company Name	: ANEST IWATA Corporation
Stock Exchanges on which the shares are listed	: Tokyo Stock Exchange in Japan
Code Number	: 6381
URL	: https://www.anest-iwata.co.jp/english
Representative	: Takahiro Tsubota, President
Contact Person	: Kouichi Takano, Managing Executive Officer, General Manager of Corporate Planning
	Dept.
	: Tel. [phone]
Filing Date of Quarterly Securities Report	: February 14, 2022
Payment Date of Cash Dividends	: To be decided
Supplemental Materials Prepared for Quarterly Results	: Yes
Earnings Announcement for Quarterly Financial Results	: None
	(Amounts are rounded to the nearest million yen)

1. Consolidated Results for FY2021 (April 1, 2021 through December 31, 2021)

(1) Consolidated Financial Results						(% of change from previous 3rd Quarter)
	Net Sales		Operating Income		Ordinary Income	Quarterly Net Income Attributable
									to Parent Company Shareholders
FY2021 3rd Quarter	Million Yen		%	Million Yen		%	Million Yen	%	Million Yen	%
30,229		18.5	3,527		42.7	4,015	33.4	2,533	30.5
FY2020 3rd Quarter
25,512		(9.5)	2,471		(13.2)	3,010	(4.0)	1,941	(3.2)

(Note) Quarterly Comprehensive Income: FY2021 3rd Quarter 4,195 million yen (up 112.8%), FY2020 3rd Quarter 1,971 million yen (down 23.3%)

		Net Income per share - Basic		Net Income per share - Diluted
	FY2021 3rd Quarter	Yen		Yen
	61.69		⎯
	FY2020 3rd Quarter
	46.75		⎯
(2) Consolidated Financial Position
		Total Assets		Net Assets		Equity Ratio
	FY2021 3rd Quarter	Million Yen		Million Yen		%
	53,178		38,879		65.0
	FY2020
	49,458		36,133		65.2
	(Note) Equity capital: FY2021 3rd Quarter 34,575 million yen,	FY2020 32,242 million yen

2. Cash Dividends

		Annual Cash Dividends per share
	End of 1st Quarter	End of 2nd Quarter	End of 3rd Quarter	Year-end	Total
	Yen	Yen	Yen	Yen	Yen
FY2020	⎯	12.00	⎯	⎯	⎯
⎯		⎯
FY2021	13.00
FY2021 (forecast)				13.00	26.00
(Note) Revisions to the forecast of cash dividends since latest announcement: None

3. Forecast of Consolidated Results for FY2021 (April 1, 2021 through March 31, 2022)		(% of change from FY2020)
		Net Sales		Operating Income	Ordinary Income			Current Net Income Attributable to	Net Income
					Parent Company Shareholders	per share
		Million Yen		%	Million Yen	%	Million Yen		%		Million Yen	%	Yen
	FY2021	40,500		13.8	4,250	23.4	4,770		12.1		2,960	12.8	72.06

(Note) Revisions to the forecast of consolidated results since latest announcement: None

* Note

(1) Changes in significant subsidiaries during FY2021 3rd quarter: None

(Changes in specified subsidiaries that caused a change in scope of consolidation)

New: (company name)

Excluded: (company name)

1. Application of account processing specific to the creation of quarterly consolidated financial statements: None
2. Change in accounting policy, change and restatement of accounting estimates

1. Change in accounting policy due to the revision of accounting standards, etc.: Yes

(ii) Change in accounting policy for other reasons:	None
(iii) Change in accounting estimates:	None
(iv) Restatement:	None

(4) Number of shares issued (common share)

(i) Number of shares issued at the end of each fiscal year (including treasury shares) (ii) Number of treasury shares at the end of each fiscal year

(iii) Average number of shares outstanding in the period (quarterly total)

FY2021 3rd Quarter	41,745,505 shares	FY2020	41,745,505 shares
FY2021 3rd Quarter	667,357 shares	FY2020	667,323 shares
FY2021 3rd Quarter	41,078,151 shares	FY2020 3rd Quarter	41,517,300 shares

(Note) We have introduced the performance-based stock compensation plan, "Board Benefit Trust (BBT)", since FY2019. Accordingly, in the calculation of the net income per share, the company shares owned by the Trust are included in the treasury shares, which are deducted in the calculation of the number of treasury shares at the end of each fiscal year and the average number of shares outstanding in the period.

• These quarterly financial results are not subject to quarterly reviews by certified public accountants or audit corporations.
• Explanation of the appropriate use of the expected results of operations, other special notes

Forecasts for operations and other descriptions about the future that are contained in this document are based on the information acquired at the time of publication, as well as certain premises that we judge reasonable. The actual results of operations and so on may change greatly as a result of various factors. For information about the conditions acting as the premise for the expected results of operations and notes on the use of the expected results of operations, see "(2) Explanation for the information on future prospects including the expected consolidated results of operations" on page 3 of Attachment.

Contents of Attachment
1. Qualitative information for financial results of the current quarter .........................................	2
(1) Explanation for results of operations and financial condition ...........................................	3
(2) Explanation for the information on future prospects including
the expected consolidated results of operations ............................................................	3
2. Quarterly consolidated financial statements and main notes ..............................................	4
(1) Quarterly consolidated balance sheets .........................................................................	4
(2) Quarterly consolidated profit and loss statements and quarterly
consolidated statements of comprehensive income ......................................................	6
(3) Notes on quarterly consolidated financial statements .....................................................	8
(Notes on the premise of a going concern) ....................................................................	8
(Notes relating to cases in which there are significant changes in the amount
of shareholders' equity)...............................................................................................	8
(Change of accounting policy) .....................................................................................	8
(Additional information) ...............................................................................................	8
(Segment information, etc.) . ........................................................................................	9
(Important subsequent events) .................................................................................	10

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1. Qualitative information for financial results of the current quarter

(1) Explanation for results of operations and financial condition

Matters related to the future appearing in this text have been judged by our group as of the last day of the current consolidated fiscal third quarter.

(i) Overview and results of operations

During the current consolidated cumulative third quarter, the recovery of the world economy has progressed due to the easing of the measures against coronavirus disease 2019 (COVID-19) in various countries, but at the same time, the spread of infection by variants, tight demand and supply of semiconductor devices, and soaring raw material prices have a widespread influence, among others, causing uncertainty to continue. In the Japanese economy, there has been a gradual improvement in business sentiment due to the pickup in consumption activities associated with the lifting of the state of emergency, among others.

Under such circumstances, our business performance for the current consolidated cumulative third quarter is as follows: sales stood at 30,229 million yen (up 18.5% from the same consolidated cumulative quarter of the previous fiscal year), operating income at 3,527 million yen (up 42.7%), ordinary income at 4,015 million yen (up 33.4%), and quarterly net income attributable to the parent company shareholders at 2,533 million yen (up 30.5%). Note that because of the application of the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc., sales are down 252 million yen and operating income and ordinary income are down 53 million yen each.

(Reference values) Result of each division			(Amount: million yen)
						Consolidated cumulative third quarter of this fiscal year
	Division	(Product category)			April 1, 2021 - December 31, 2021
					Consolidated net sales	Change from the corresponding	Consolidated operating income	Change from the corresponding
						period of the previous fiscal year		period of the previous fiscal year
	Air Energy Division		18,326	22.3%
			Air compressors		16,889	21.3%	2,028	53.2%
			Vacuum equipment		1,437	36.1%
	Coating Division			11,903	13.0%
			Coating equipment		10,446	28.9%	1,499	30.7%
			Coating systems		1,456	(40.0%)
	Total				30,229	18.5%	3,527	42.7%

(Note) The consolidated operating income of each division is calculated with our group's unique standard.

(ii) Results of operations by segment

Results of operations by regional segment, which our group adopts, are as described below. For details of the results of our operations by segment, refer to (Segment information, etc.) in "2. Quarterly consolidated financial statements and main notes - (3) Notes on quarterly consolidated financial statements".

Japan

Sales stood at 16,359 million yen (up 6.9% from the same consolidated cumulative quarter of the previous fiscal year) and segment income stood at 2,426 million yen (up 27.8%).

In the air compressor field, the supply of some parts from Southeast Asia, where lockdown measures were taken, was stagnant, but the influence has been held to a minimum because of the recovery associated with the stabilization of procurement.

In the vacuum equipment field, expansion of semiconductor demand still continues, and the sales of vacuum pumps for semiconductor manufacture-related equipment have grown greatly.

In the coating equipment field, promotion of spray guns for the car repair market has been intensified, among others, and the sales have recovered to a level before COVID-19.

In the coating system field, sales have dropped because of restriction on operating activities due to COVID-19, but the backlog

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of orders is on the increase because of the progress of activities for inviting inquiries and winning orders for articles for not only the current term but also the next term, combined with the easing of epidemic prevention measures.

Europe

Sales stood at 4,207 million yen (up 32.6% from the same consolidated cumulative quarter of the previous fiscal year) and segment income stood at 356 million yen (up 41.6%).

In the air compressor field, sales have grown strongly because of improvement in sales in EU countries boosted by the normalization of economy, in addition to success in developing new market for cow milking equipment.

In the vacuum equipment field, sales have grown because finding potential customers has begun to bear fruit.

In the coating equipment field, active operating activities, such as promotions by the use of digital tools, have borne fruit, so that the sales of spray guns for the car repair market have mainly grown. In addition, demand for airbrushes continues to grow strongly.

Asia

Sales stood at 11,954 million yen (up 33.0% from the same consolidated cumulative quarter of the previous fiscal year) and segment income stood at 1,142 million yen (up 57.7%).

In the air compressor field, sales have grown because of expansion of exports and sales by the subsidiary in China and expansion of demand for the medical and vehicle-mounted compressors of the subsidiary in India.

In the vacuum equipment field, sales have grown due to expansion of demand in the semiconductor manufacture-related markets in China and East Asia and the winning of orders because of the high recognition for quick delivery, among others.

In the coating equipment field, sales have grown in East Asia, mainly China, and India.

In the coating system field, sales have grown because the project for which the construction plan had been postponed in China has been delivered steadily. In India and Southeast Asia, operating activities have become stagnant due to the behavior restrictions owing to COVID-19 and a cautious stance toward capital investment.

Other

Sales stood at 4,685 million yen (up 27.0% from the same consolidated cumulative quarter of the previous fiscal year) and segment income stood at 551 million yen (up 62.2%).

In the air compressor field, the sales of medical compressors have grown strongly in the United States and Brazil.

In the vacuum equipment field, the sales of vacuum pumps for equipment manufacturers and research institutes have grown in response to a boom in the R&D field.

In the coating equipment field, the sales of hand spray guns for the car repair market have grown due to, for example, the use of the sales channels acquired due to the transfer of part of a business in the consolidated fiscal first quarter. In addition, orders for airbrushes continue to be received steadily.

(iii) Analysis of financial condition

For assets, our current assets stood at 32,311 million yen (up 11.8% from the previous consolidated fiscal year), mainly due to, for example, an increase of 1,266 million yen in the "merchandise and finished goods" and an increase of 1,169 million yen in the "raw materials and supplies". Our noncurrent assets stood at 20,867 million yen (up 1.5%), mainly due to an increase of 37 million yen in the "goodwill" and an increase in the "software" in the "other" due to the intensification of IT investment. As a result, our total assets stood at 53,178 million yen (up 7.5%).

For liabilities, our current liabilities stood at 10,509 million yen (up 9.4%), mainly due to, for example, an increase of 981 million yen in the "notes and accounts payable-trade". Our noncurrent liabilities stood at 3,790 million yen (up 2.0%), mainly due to, for example, an increase of 68 million yen in the "net defined benefit liability". As a result, our total liabilities stood at 14,299 million yen (up 7.3%).

Our net assets stood at 38,879 million yen (up 7.6%). Our equity capital, which is calculated by subtracting the non-controlling shareholders' equity from the net assets, stood at 34,575 million yen, decreasing our equity ratio by 0.2 percentage points to 65.0%, from 65.2% at the end of the previous consolidated fiscal year.

(2) Explanation for the information on future prospects including the expected consolidated results of operations

At present, the expected consolidated results of operations and the expected dividend for the full year announced on November 5, 2021 remain unchanged.

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