ANEST IWATA : Supplementary Presentation Material of FY2021 Full-Year Financial Results and New Mid-term Business Plan

Supplementary Presentation

Material of FY2021 Full-Year

Financial Results and New

Mid-term Business Plan

ANEST IWATA Corporation

May 26, 2022

Prime Market of the Tokyo Stock

Exchange - Machinery

Securities Code 6381

Table of contents

FY2021 financial highlights

Highlights of FY2021 financial results

Analysis of causes of operating income increase/decrease

Sales by area and by product Cash flow statement Prospects for FY2022

Capital investment plan and R&D cost

Measures to increase shareholder returns Topics

Reference information

2

FY2021 financial highlights

Overseas markets contributed to increase in sales due to recovery from the Covid-19 pandemic and our measures. November's revised values were exceeded.

Sales: 42,337 million yen (up 6,748 million yen, or 19.0％, from last year)

Operating income: 4,780 million yen (up 1,335 million yen, or 38.8％, from last year)

Air energy

business

• Contribution from SCR, a subsidiary acquired in 2018, accelerated. Sales of general-purpose air compressors remained brisk, mainly in China, throughout the year.
• Sales of vacuum pumps for semiconductor-related equipment grew.

Sales: 25,015 million yen (up 4,149 million yen, or 19.9%, from last year)

Operating income: 2,513 million yen (up 692 million yen, or 38.0%, from last year)

Operating income ratio: 10.0％ (up 1.3 points from last year)

		 Sales of products, mainly spray guns, grew mainly in the United States
		and Europe.
	Coating	 Sales of coating systems were down as sales activities were restricted
	business	by Covid-19 last year.
		Sales: 17,321 million yen (up 2,599 million yen, or 17.7%, from last year)
		Operating income: 2,267 million yen (up 634 million yen, or 39.7%, from last year)
		Operating income ratio: 13.1％ (up 2.1 points from last year)
(Notes) The operating income by business was calculated using our unique standards.	3

Highlights of FY2021 financial results

Sales and all income indicators have reached record highs since the company's foundation in 1926.

• Overseas markets (particularly the market in China, where the results of operations of SCR, an acquired subsidiary, are steady) contributed to increase in sales. The impact of fluctuations in foreign exchange rates was 1.69 billion yen.
• The increase in the operating income ratio was due to the improved product mix and the streamlining associated with the work reform.

FY2020

FY2021

Year-on-year

FY2021 result forecasts

Initial forecast

Revised Nov. 5

Actual

Profit ratio

Actual

Profit ratio

Increase/

Increase/

Profit ratio

Forecast

Forecast

decrease amount

decrease rate

(million yen)

(％)

(million yen)

(％)

change (P)

(million yen)

(million yen)

(million yen)

(％)

Sales

35,588

―

42,337

―

+6,748

+19.0

―

38,500

40,500

Operating

3,444

9.7

4,780

11.3

+1,335

+38.8

+1.6

3,600

4,250

income

Ordinary income

4,253

12.0

5,572

13.2

+1,318

+31.0

+1.2

4,100

4,770

Net income attributable

2,623

7.4

3,541

8.4

+918

+35.0

+1.0

2,515

2,960

to owners of parent

Average exchange rate

106.82 yen

109.80

yen

Depreciated by 2.98 yen

103.00 yen

109.00 yen

of yen to the US dollar

Average exchange rate

121.81 yen

129.89

yen

Depreciated by 8.08 yen

118.00 yen

130.00 yen

of yen to the euro

Average exchange rate

15.48 yen

17.03

yen

Depreciated by 1.55 yen

15.00 yen

16.80 yen

of yen to RMB

Dividend

Interim

13 yen (12 yen)

Year-end

17 yen (12 yen)

Annual

30 yen (24 yen)

(Forecast)

(Forecast)

* Dividends: Shown within ( ) are the initially forecast dividends. The FY2021 year-end dividend will be formally decided at the 76th ordinary	4
general shareholders' meeting, to be held on June 24.

information management, etc.

[-]Increase in goodwill amortization: 254 million yen (up 49 million yen from last year), depreciation (up 85 million yen from last year)

Analysis of causes of operating income increase/decrease

As in the 3rd quarter, the growth in sales compensated for the cost increase resulting from increased activities, contributing to the rise in income.

	Increase in gross profit				(million yen)
	(Sales - costs)		Reduction in
	+3,301
		retirement
			benefit expenses
			+48		4,780
		Increase in	Increase in
		payment of	sales-related	Increase in	Increase in
		salaries and	goodwill
3,444		expenses	other expenses
	employee	amortization
	-386	-414
		benefits		and other
		-1,077		depreciation
				costs
				-135

FY2020	+1,335	FY2021

[+] Increase in sales: 42,337 million yen (up 6,748 million yen from last year)

[+] Improvement in cost-to-salesratio: 56.9％ (down 1.1 points from last year)

• Changes in the product mix (up for coating equipment and down for coating systems), increase in income of the U.S. subsidiary that acquired a business, etc.

[+] Improvement in selling, general & administrative expenses ratio : 31.8％ (down 0.5 points from last year)

• Establishment of cost control through the use of the Web and optimization of face -to-face sales activities, etc.

cost

• Acquisition of a business (sale of coating equipment) in the U.S., etc.

[-] Increase in commission fees included in other expenses (up 308 million yen from last year)

・The commission fees*1 related to IT investments are approx. 148 million yen. *1 Related to the order-receivingsystem including product 5