ANEST IWATA : Supplementary Presentation Material of FY2022 First Quarter Financial Results

Supplementary Presentation

Material of FY2022 First Quarter

Financial Results

ANEST IWATA Corporation

August 9, 2022

Tokyo Stock Exchange Prime Market - Machinery

Securities Code 6381

FY2022 1Q financial highlights

The sharp rise in raw material costs was higher than expected, but it recovered in the second half due to price rise. Selling, general & administrative expenses increased due to active face-to-face sales promotion, thus overseas sales were strong.

Sales: 9,999 million yen (up 898 million yen, or 9.9％, year-on-year)

Operating income: 820 million yen (down 72 million yen, or 8.1％, year-on-year)

Air energy

business

• SCR, which was acquired and made a subsidiary in FY2018, continues to make favorable contributions. Sales of general-purpose air compressors mainly in China and oil-free air compressors for specific markets* in India increased.
• Sales of vacuum pumps for semiconductor-related equipment increased, mainly in China.
  Sales: 6,101 million yen (up 628 million yen, or 11.5%, year-on-year)
  Operating income: 505 million yen (up 57 million yen, or 12.9%, year-on-year)
  Operating income ratio: 8.3％ (up 0.1 points year-on-year)
  *Specific market: Specific applications such as medical care, in-vehicle use, and analysis

Coating business

• Sales of coating equipment, mainly spray guns, grew except in Japan.
• In the coating system field, sales decreased due to delays in delivery of large-scale projects owing to delays in construction plans of customers.

Sales: 3,897 million yen (up 270 million yen, or 7.4%, year-on-year)

Operating income: 315 million yen (down 130 million yen, or 29.3%, year-on-year)

Operating income ratio: 8.1％ (down 4.2 points year-on-year)

(Notes) 1.	The operating income by business was calculated using our unique standards.
2.	In Japan and India, the year ends in March while in other areas, it ends in December, so the period of the consolidated financial
	settlement in other areas is three months behind.	1

Highlights of FY2022 1Q financial results

Although sales, ordinary/net income increased, operating income decreased slightly due to soaring raw material costs, increased sales promotion costs, and delays in delivery of coating systems due to factors attributable to customers. The full-year plan remains unchanged due to price increases from October 1, increase in domestic and overseas sales, and steady delivery of coating systems.

• Sales are driven by overseas markets (especially Europe and China). The impact of foreign exchange is 497 million yen.
• Operating income decreased due to increased cost of sales owing to further sharp rise in raw material prices and increased transportation and sales activity costs.

	FY2021 1Q	FY2022 1Q		Year-on-year
	Actual	Profit ratio	Actual	Profit ratio	Increase/	Increase/		Profit ratio
	decrease amount	decrease rate		change
	million yen	％	million yen	％	million yen	％		Point
Sales	9,100	―	9,999	―	+898	+9.9		―
Operating	893	9.8	820	8.2	-72	-8.1		-1.6
income
Ordinary income	1,114	12.2	1,291	12.9	+177	+15.9		+0.7
Net income
attributable to	700	7.7	808	8.1	+108	+15.5		+0.4
parent company
shareholders
Average exchange	105.90	yen	116.20	yen	Depreciated	by 10.30 yen
rate of yen to U.S.
dollar
Average exchange	127.69	yen	130.39	yen	Depreciated	by 2.70 yen
rate of yen to euro
Average exchange	16.36	yen	18.29	yen	Depreciated	by 1.93 yen
rate of yen to
RMB

FY2022 result forecasts

(Announced on May 10, 2022)

Forecast	Progress rate
million yen	％
44,000	22.7
4,900	16.7
5,650	22.8
3,580	22.6
118.00	yen
137.00	yen
18.50	yen

[Foreign exchange sensitivity] Trend value based on operating income
Due to the depreciation of 1 yen, the respective increase was U.S. dollar: 10 million yen/year, Euro: 10 million yen/year, RMB: 30 million yen.	2

Analysis of causes of operating income increase/decrease

Income declined due to further sharp rise in raw material costs, active face-to-face sales promotion, delays in

delivery of coating systems in Japan, etc.

	Increase in
893	payment of
salaries and
employee benefits
Increase in gross profit	-81
(Sales - costs)
+302

Increase in
retirement
benefit	Increase in
expenses	Increase in
sales-related
-2	goodwill
expenses	Increase in other
	amortization and
	-149	expenses
	other depreciation
		-93
		costs
		-47

(million yen)

820

FY2021 1Q	-72	FY2022 1Q

[＋] Increase in sales: 9,999 million yen (up 898 million yen year-on-year)

[－] Rise in cost-to-salesratio: 56.1％ (up 1.0 point year-on-year)

• Purchase prices rose due to a further sharp increase in raw material cost after the price increase (Japan: September 2021 onwards, overseas: January 2022 onwards).

[－] Increase in selling, general & administrative expenses ratio: 35.6％ (up 0.6 points year-on-year)

• Travel expenses continue to be controlled, but increased as an activity that meet actual demand.
• Advertising costs increased due to participation in large-scale real exhibitions overseas.
• Overseas labor and transportation costs increased.

・ Depreciation costs pertaining to software related to sales reform increased.

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Sales by area and by product

• Overseas market progressed favorably, and overseas sales ratio improved (66.8%).
• With the formulation of the current mid-term business plan, the method of classifying segments by location has changed from the current consolidated fiscal year.

Japan

Europe

Americas

China

Other

• Sales decreased. Impact of delayed supply of components for air compressors (approx. 100 million yen), decrease in sales of Spray Booth
• Sales increased. Sales of spray guns for the mainstream automobile repair market and that of oil-free air compressors increased.
• Sales increased. Sales of spray guns for the automobile repair market in the U.S. and that of medial air compressors in Brazil increased.
• Sales increased. Sales of general-purpose air compressors for domestic use in China and coating equipment for the 3C market of computers, mobile phones, and consumer electronics, etc. increased.
• Sales increased. Sales of air compressors for medical use and in-vehicle use in India and that of coating equipment in Southeast Asia increased.

[Segment category] Europe: Added Russia to the existent Europe category, Americas: US, Mexico, Brazil, Other: Asia excluding China, Australia, South Africa

			Increase/	Increase/	Air energy business	Coating business
(million yen)	FY2021 1Q	FY2022 1Q	decrease	decrease					■Composition Ratio
Air	Vacuum	Coating	Coating
			amount	rate (%)	compressor	equipment	equipment	systems	FY2022 1Q
									（FY2021 1Q）
Japan	3,537	3,315	-221	-6.3	●	○	×	○
Other
Europe	1,400	1,737	+336	+24.0	◎	◎	◎	-	（15.0％）16.4%	Japan
（38.9％）
									(15.0%)	33.2%
										(38.9%)
Americas	1,073	1,236	+163	+15.3	○	○	◎	×	China
									20.7%
China	1,728	2,067	+339	+19.7	◎	◎	◎	×	19.0％） (19.0%)

Other	1,361	1,641	+279	+20.6	◎	◎	◎	×	Americas Europe
									12.4%	17.4%
									(15.4%)
Total	9,100	9,999	+898	+9.9	◎	◎	◎	×	(11.8%)

◎ ≥ 10％, 3％ ≤ 〇< 10 ％, 0％< △< 3 ％,

0％ >▼ > -3％,-3％ ≥ ● > -10％,× ≤ -10％

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