ANEST IWATA : FY2022 First Quarter Consolidated Financial Results

FY2022 First Quarter Consolidated Financial Results [Japan GAAP]

(April 1, 2022 through June 30, 2022)

	August 9, 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.anestiwata-corp.com/
Representative	: Shinichi Fukase, President, Representative Director Chief Executive
	Officer
Contact Person	: Takayoshi Iribe, General Manager of Corporate Planning Dept.
	Tel. [phone]
Scheduled Filing Date of Quarterly Securities Report	: August 10, 2022
Scheduled Payment Date of Cash Dividends	: -
Supplemental Materials Prepared for Quarterly Financial Results	: Yes
Holding of Quarterly Financial Results Meeting	: None
	(Amounts are rounded to the nearest million yen)

1. Consolidated Results for FY2022 1st Quarter (April 1, 2022 through June 30, 2022)

(1) Consolidated Financial Results			(% figures represent year-on-year increase or decrease )
									Net Income Attributable
	Net Sales		Operating Income	Ordinary Income		to Parent Company
									Shareholders
	Million Yen		%	Million Yen	%	Million Yen		%	Million Yen		%
FY2022 1st Quarter	9,999		9.9	820	(8.1)	1,291		15.9	808		15.5
FY2021 1st Quarter	9,100		31.6	893	117.8	1,114		98.5	700		61.0

(Note) Comprehensive Income: FY2022 1st Quarter 2,149 million yen (up 24.0%), FY2021 1st Quarter 1,733 million yen (―%)

	Net Income per Share - Basic	Net Income per Share - Diluted
	Yen	Yen
FY2022 1st Quarter	19.96	―
FY2021 1st Quarter	17.05	―

1. Consolidated Financial Position

	Total Assets	Net Assets	Equity Ratio
	Million Yen	Million Yen	%
As of June 30, 2022	56,456	41,223	64.6
As of March 31, 2022	55,818	40,210	63.8

(Reference) Equity Capital: As of June 30, 2022 36,447 million yen, As of March 31, 2022 35,623 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
FY2021	―	13.00	―			17.00	30.00
FY2022	―
FY2022 (forecast)		15.00	―			16.00	31.00

(Note) Revisions to the forecast of cash dividends since latest announcement: None

3. Forecast of Consolidated Results for FY2022 (April 1, 2022 through March 31, 2023)

(% figures represent year-on-year increase or decrease )

	Net Sales		Operating Income	Ordinary Income		Net Income Attributable	Net Income per
			to Parent Company	Share - Basic
									Shareholders
	Million Yen		%	Million Yen	%	Million Yen		%	Million Yen		%	Yen
FY2022 Half Year (total)	21,500		5.6	2,430	2.1	2,750		3.0	1,700		0.7	41.63
FY2022	44,000		3.9	4,900	2.5	5,650		1.4	3,580		1.1	87.67

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

* Notes

1. Changes in significant subsidiaries during the current consolidated cumulative first quarter: None

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 in accounting estimates and restatements
3. 1. Change in accounting policy due to the revision of accounting standards, etc. : None

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

1. Number of shares issued (common share)

1. Number of shares issued (including treasury shares) at the period-end
2. Number of treasury shares at the period-end
3. Average number of shares outstanding in the period (quarterly total)

As of June 30, 2022	41,745,505 shares	As of March 31, 2022	41,745,505 shares
As of June 30, 2022	1,284,292 shares	As of March 31, 2022	1,089,092 shares
FY2022 1st Quarter	40,514,963 shares	FY2021 1st Quarter	41,078,157 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 - basic, 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 period-end 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 ...............................................	2
(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
(Additional information) ....................................................................................................	8
(Segment information, etc.) ..............................................................................................	9

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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 first quarter.

(i) Overview and results of operations

During the current consolidated cumulative first quarter, while economic activities are normalizing in the global economy, the sense of uncertainty about the future has increased due to increased shortage of components such as semiconductors, a sharp rise in raw material cost and resource cost, and disrupted logistics.

In the Japanese economy, although business sentiment is showing an improving trend due to the recovery of consumption and capital investment, the situation continues to lack power due to factors of decline such as growing uncertainty about the future of global economy.

Under these circumstances, our business performance for the current consolidated cumulative first quarter is as follows: sales standing at 9,999 million yen (up 9.9% from the same consolidated cumulative quarter of the previous fiscal year), operating income at 820 million yen (down 8.1%), ordinary income at 1,291 million yen (up 15.9%) and net income attributable to parent company shareholders at 808 million yen (up 15.5%).

(Reference values) Results of each division

				(Amount: Million Yen)
		Current consolidated cumulative first quarter
Division	(Product category)		April 1, 2022 - June 30, 2022
Consolidated	Change from the	Consolidated	Change from the
		corresponding period of	corresponding period of
		net sales	operating income
		the previous fiscal year	the previous fiscal year
Air Energy Division		6,101	11.5%
	Air Compressors	5,583	10.3%	505	12.9%
	Vacuum Equipment	518	25.8%
Coating Division		3,897	7.4%
	Coating Equipment	3,726	12.5%	315	(29.3%)
	Coating Systems	171	(45.9%)
Total		9,999	9.9%	820	(8.1%)

(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. The classification of report segments has changed from the current consolidated cumulative first quarter. For details, 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 5,051 million yen (down 3.1% from the same consolidated cumulative quarter of the previous fiscal year), and segment income stood at 490 million yen (down 28.4%). The decrease in income was mainly due to the rise in purchase prices resulting from a steep rise in raw material cost.

In the air compressor field, sales have declined due to the impact of supply shortages in electric motors and electrical equipment. Further, in the latter half of the current consolidated first quarter, the procurement status of some materials is showing an improving trend.

In the vacuum equipment field, boosted by the boom in the semiconductor market, the demand for vacuum pumps for semiconductor manufacturing-related equipment is declining, but sales are progressing favorably.

In the coating equipment field, the sales of spray guns progressed steadily. On the other hand, although there were signs indicating gradual recovery in the order status of coating booths from the latter half of the current consolidated first quarter, the resultant sales declined. This caused a decline in overall sales.

In the coating system field, sales increased due to steady delivery of items ordered in the previous consolidated fiscal year, centered around coating systems for painting automobile parts.

Europe

Sales stood at 1,790 million yen (up 21.7% from the same consolidated cumulative quarter of the previous fiscal year) and segment income stood at 136 million yen (down 25.4%). The decrease in income was mainly due to increased labor costs and increased costs related to sales promotion activities for coating equipment.

In the air compressor field, the sales of oil-free air compressors progressed favorably in European countries.

In the vacuum equipment field, sales progressed steadily, and we are planning for further sales expansion by undertaking the development of new clients.

In the coating equipment field, sales increased as the demand for spray guns for the automobile repair market

2

progressed stably.

Americas

Sales stood at 1,332 million yen (up 13.6% from the same consolidated cumulative quarter of the previous fiscal year), and segment income stood at 153 million yen (up 12.8%).

In the air compressor field, sales increased centered around medical air compressors in Brazil.

In the vacuum equipment field, sales of vacuum pumps increased, mainly for equipment manufacturers.

In the coating equipment field, the sales of spray guns for the automobile repair market progressed steadily due to the cultivation of market through the partial transfer of the business conducted in the previous fiscal year. Also, the sales of spray units for the woodworking and furniture market increased, resulting in an increase in overall sales. Further, there was a sense of pause in special demand for airbrushes that started with stay-at-home demand.

China

Sales stood at 2,320 million yen (up 24.3% from the same consolidated cumulative quarter of the previous fiscal year), and segment income stood at 105 million yen (up 535.2%). The increase in income was mainly due to decreased selling, general & administrative expenses ratio at local subsidiaries.

In the air compressor field, domestic sales in China progressed favorably.

In the vacuum equipment field, demand of vacuum pumps for semiconductor manufacture-related equipment increased, resulting in increased sales.

In the coating equipment field, the sales of spray guns increased for the general industrial coating market, which is said to be the 3C market of computers, mobile phones, consumer electronics, etc.

In the coating system field, sales decreased due to the reaction to whether there were large-scale projects in the previous consolidated fiscal year.

Other

Sales stood at 2,109 million yen (up 21.2% from the same consolidated cumulative quarter of the previous fiscal year), and segment income stood at 311 million yen (up 41.3%).

In the air compressor field, the sales of air compressors for medical use and in-vehicle use increased in India.

In the vacuum equipment field, the sales of vacuum pumps for semiconductor manufacture-related equipment progressed favorably in South Korea and Taiwan.

In the coating equipment field, sales increased in Southeast Asia due to the normalization of economic activities.

In the coating system field, sales decreased due to the reaction to whether there were large-scale projects in the previous consolidated fiscal year.

(iii) Analysis of financial condition

For assets, our current assets stood at 34,676 million yen (up 1.0% from the previous consolidated fiscal year). This was mainly due to an increase of 663 million yen in "raw materials and supplies." Our non-current assets stood at 21,779 million yen (up 1.3%). This was mainly due to an increase of 87 million yen in "buildings and structures, net." As a result, our total assets stood at 56,456 million yen (up 1.1%).

For liabilities, our current liabilities stood at 11,096 million yen (down 4.5%). This was mainly due to a decrease of 445 million yen in "income tax payable." Our non-current liabilities stood at 4,136 million yen (up 3.6%). This was mainly due to an increase of 92 million yen in lease obligations included in "other" due to the introduction of production equipment. As a result, our total liabilities stood at 15,232 million yen (down 2.4%).

Our net assets stood at 41,223 million yen (up 2.5%). This was mainly due to an increase of 894 million yen in "foreign currency translation adjustments" owing to the depreciation of yen. Our equity capital, which is calculated by subtracting the non-controlling shareholders' equity from the net assets, stood at 36,447 million yen, increasing our equity ratio by 0.8 percentage points to 64.6%, from 63.8% at the end of the previous consolidated fiscal year.

1. 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 May 10, 2022 remain unchanged.

3