QUARTERLY REPORT(The Third Quarter of the 75th Term)
From October 1, 2022 to December 31, 2022

(TRANSLATION)

ARISAWA MFG. CO., LTD.

TABLE OF CONTENTS
Page Number
Cover Page
PART I.

INFORMATION ON THE BUSINESS ................................................................................ 1

I. General Conditions of Business ............................................................................................................ 1
1. Changes in Principal Management Indicators, etc. ........................................................................... 1
2. Description of Business..................................................................................................................... 1
II. Status of Business ................................................................................................................................ 2
1. Business Risks, etc. ........................................................................................................................... 2
2. Analyses of Consolidated Financial Position, Business Results and Cash Flowsby the Corporate Managers ........................................................................................................... 2
3. Agreements with Managerial Implications, etc................................................................................. 3
III. Status of the Submitting Company ..................................................................................................... 4
1. Status of Shares, etc. ......................................................................................................................... 4(1) Total Number of Shares, etc. ........................................................................................................... 4(2) Status of Stock Acquisition Rights, etc. .......................................................................................... 4(3) Status of Exercise of Moving Strike Convertible Bonds, etc. ......................................................... 4(4) Changes in the Number of Shares Issued and Outstanding, Share Capital, etc. ............................. 4(5) Status of Major Shareholders .......................................................................................................... 4(6) Status of Voting Rights ................................................................................................................... 5
2. Status of Directors and Officers ........................................................................................................ 5
IV. Status of Accounting .......................................................................................................................... 6
1. Quarterly Consolidated Financial Statements ................................................................................... 7(1) Quarterly Consolidated Balance Sheets .......................................................................................... 7(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated
Statements of Comprehensive Income .......................................................................................... 9[Quarterly Consolidated Statements of Income] ........................................................................... 9[Quarterly Consolidated Statements of Comprehensive Income] ............................................... 10
2. Other................................................................................................................................................ 16
PART II. INFORMATION ON GUARANTY COMPANIES, ETC. OF THE
SUBMITTING COMPANY ................................................................................................ 17[Independent Auditors’ Quarterly Review Report]

Cover Page
Document to be filed:

Quarterly Report

Statutory basis:

Article 24-4-7, paragraph 1 of the Financial Instruments and Exchange Act

Filing to:

Director-General of the Kanto Local Finance Bureau

Date of filing:

February 14, 2023

Quarterly accounting period:

The Third Quarter of the 75th Term (From October 1, 2022 to December 31,
2022)

Company name (Japanese):

Kabushiki-Kaisha Arisawa Seisakusho

Company name (English):Arisawa Mfg. Co., Ltd.

Name and title of representative:

Yuta Arisawa, President and Representative Director

Location of head office:5-5, Minami-honcho 1-chome, Joetsu-shi, Niigata

Telephone number:(025) 524-5126

Contact person:

Shuichi Kubota, Operating Officer supervising, Corporate Strategy
Department

Place of contact:5-5, Minami-honcho 1-chome, Joetsu-shi, Niigata

Telephone number:(025) 524-5126

Contact person:

Shuichi Kubota, Operating Officer supervising, Corporate Strategy
Department

Places where copies of this Quarterly Report are

Arisawa Mfg. Co., Ltd., Tokyo Branch Officemade available for public inspection:(12-5, Yanagibashi 2-chome, Taito-ku, Tokyo)
Tokyo Stock Exchange, Inc.
(2-1, Nihonbashi Kabutocho, Chuo-ku, Tokyo)

PART I. INFORMATION ON THE BUSINESS
I. General Conditions of Business1. Changes in Principal Management Indicators, etc.
Term
Accounting period
Net sales

74th term
consolidated cumulative
third quarter
From April 1, 2021
to December 31, 2021

75th term
consolidated cumulative
third quarter
From April 1, 2022
to December 31, 2022

From April 1, 2021
to March 31, 2022

32,66333,54343,089

3,155

2,705

4,204

2,971

2,661

3,911

2,359

3,133

4,530

46,84347,51447,96568,66870,087

68,689

89.18

80.52

117.40

89.13

80.33

117.32

67.9

67.7

69.6

74th term
consolidated
third quarter
From October 1, 2021
to December 31, 2021

75th term
consolidated
third quarter
From October 1, 2022
to December 31, 2022

(Millions of yen)

Ordinary profit(Millions of yen)
Profit attributable to ownersof parent(Millions of yen)Comprehensive income(Millions of yen)
Net assets (Millions of yen)
Total assets(Millions of yen)
Basic earnings per share(Yen)
Diluted earnings per share(Yen)
Equity ratio
(%)

Term
Accounting period

74th term

Basic earnings per share
36.81
2.97
(Yen)
Note: As Arisawa Mfg. Co., Ltd. (hereinafter referred to as either the “Company” or the “Submitting Company”, as the case maybe) prepares the quarterly consolidated financial statements, the changes in principal management indicators, etc. of theSubmitting Company are not stated above.

2. Description of Business
There was no material change in information regarding the business lines of our corporate group (the Company
and its associated companies; hereinafter referred to as either the “Group” or “our Group”, as the case may be) in
the current consolidated cumulative third quarter.
No change of organization was made to any of the Company’s principal associated companies.

-1-II. Status of Business
1. Business Risks, etc.
The current consolidated cumulative third quarter saw neither any new business risks, etc. emerging nor any
significant change in the business risks, etc. stated in the Financial Report for the previous business year.

2. Analyses of Consolidated Financial Position, Business Results and Cash Flows by the Corporate
Managers
Matters stated concerning the future in the text are based on judgments made as of the end of the current
consolidated third quarter.

(1) Financial Position and Operating Results1) Operating Results
As for the Japanese economy in the current consolidated cumulative third quarter, the economic activity
is heading toward normal due to the relaxation of restrictions on activities from COVID-19 infections, etc.
On the other hand, the future prospects still remain uncertain due to the persistent high energy and raw
material prices caused by the prolonged situation in Ukraine, the rise in prices caused by global inflation in
addition to a decrease in demand in the Chinese market.
Under such circumstances, the results of operations of our group (the Company, its consolidated
subsidiaries and the companies accounted for under the equity method) for the current consolidated
cumulative third quarter showed net sales of 33,543 million yen (an increase of 2.7% year-on-year) due toan increase in sales of industrial application structural materials and display materials despite a decrease insales of electronic materials. On the other hand, an operating profit remained 2,137 million yen (a decreaseof 23.8% year-on-year) due to soaring energy costs and raw material prices. Ordinary profit was 2,705
million yen (a decrease of 14.3% year-on-year) due to the recording of foreign exchange gains, etc. Profit
attributable to owners of parent of 2,661 million yen (a decrease of 10.4% year-on-year) due to the recordingof gain on sale of investment securities, etc.
Business results with respect to each segment are as follows.
a. Electronic materials segment
In the electronic materials segment, net sales were 21,550 million yen (a decrease of 5.6% year-on-year)
due to a decrease in sales of flexible printed circuit board materials and glass cloth for printed circuit board(the amount of orders received increased by 2.6%, and the production output decreased by 4.2%, year-onyear on a non-consolidated basis of the Submitting Company), while the segment profit was 1,267 million
yen (a decrease of 46.6% year-on-year) caused by the impact from soaring energy costs and raw material
prices in addition to decrease in sales.
b. Industrial application structural materials segment
In the industrial application structural materials segment, net sales were 6,607 million yen (an increase of
26.8% year-on-year) due to an increase in sales of water treatment FRP pressure vessels, while the segment
profit was 1,031 million yen (an increase of 56.4% year-on-year).
c. Electrical insulating materials segment
In the electrical insulating materials segment, net sales were 1,935 million yen (a decrease of 0.7% yearon-year) due to a decrease in infrastructure-related sales, while the segment profit was 123 million yen (adecrease of 48.8% year-on-year).
d. Display materials segment
In the display materials segment, net sales were 3,214 million yen (an increase of 36.3% year-on-year)
due to an increase in sales of 3D-related materials and ColorLink Japan, Ltd.’s polarization control opticalcomponents, while the segment profit was 766 million yen (an increase of 21.7% year-on-year).
e. Other (other businesses)
In other businesses, net sales were 235 million yen (a decrease of 25.1% year-on-year), while the segment
profit or loss recorded a segment profit of 119 million yen (a decrease of 9.4% year-on-year).
It should also be noted that the amounts of net sales, orders received, etc. stated in this section do notinclude consumption tax, etc.

-2-2) Financial Position
Total assets as of the end of the current consolidated cumulative third quarter were 70,087 million yen,
an increase of 1,398 million yen compared with the end of the previous year. This was largely due to anincrease of 1,856 million yen in cash and deposits, an increase of 1,093 million yen in merchandise andfinished goods and an increase of 2,594 million yen in property, plant and equipment, a decrease of 940
million yen in securities and a decrease of 5,401 million yen in investment securities respectively.
Total liabilities as of the end of the current consolidated cumulative third quarter were 22,573 million
yen, an increase of 1,850 million yen compared with the end of the previous year. This was largely due toan increase of 942 million yen in notes and accounts payable-trade and an increase of 468 million yen in
long-term borrowings respectively.
Total net assets as of the end of the current consolidated cumulative third quarter were 47,514 million yen,a decrease of 451 million yen compared with the end of the previous year. This was largely due to an increaseof 1,266 million yen in foreign currency translation adjustment, a decrease of 345 million yen in retained
earnings, a decrease of 823 million yen in valuation difference on available-for-sale securities respectively,
and furthermore, the acquisition of treasury shares of 706 million yen, and more.

(2) Management Policy, Management Strategy, etc.
There was no significant change, during the current consolidated cumulative third quarter, in the
management policy, management strategy, etc. set by our Group.

(3) Accounting Estimates and Assumptions Used in Making Such Estimates
There was no material change in a statement of the accounting estimates and assumptions used in making
such estimates in ”Analyses of Consolidated Financial Position, Business Results and Cash Flows by the
Corporate Managers” stated in the Financial Report for the previous business year.

(4) Business and Financial Tasks to be Preferentially Addressed
There was no material change in business and financial tasks to be preferentially addressed by our Groupin the current consolidated cumulative third quarter.

(5) Research and Development Activities
The Group’s total expenses for research and development activities incurred in the current consolidated
cumulative third quarter amounted to 1,451 million yen.
In this regard, there was no significant change in the status of research and development activities of ourGroup in the current consolidated cumulative third quarter.

3. Agreements with Managerial Implications, etc.
In the current consolidated third quarter, there was no decision made on, or execution of, agreements withmanagerial implications, etc.

-3-III. Status of the Submitting Company
1. Status of Shares, etc.
(1) Total Number of Shares, etc.
1) Total number of shares
Class

Total number of shares authorized to be issued

Common stock

130,000,000

Total

130,000,000

2) Shares issued and outstanding
Number of shares issued
and outstanding as of theend of the third quarter(As of December 31, 2022

Class

Number of shares issued
and outstanding as of thefiling date of this Quarterly
Report(As of February 14, 2023)

Name of financial
instruments exchange
where the shares are listed
or authorized financial
instruments firms
association where theshares are registered

Remarks

Common stock

33,818,924

33,398,024

Tokyo Stock Exchange(Prime Market)

Number of sharesconstituting one
full unit: 100

Total

33,818,924

33,398,024

---

---

Note:

1.

The number of shares issued through the exercise of stock acquisition rights in the period from February 1,
2023 to the filing date of this Quarterly Report is not included in the column “Number of shares issued andoutstanding as of the filing date of this Quarterly Report”.
2. The Company disposed of 41,055 shares of treasury shares for restricted stock compensation as of July 27, 2022
upon a resolution by the Board of Directors on June 28, 2022.
3. 64,490 shares out of shares issued and outstanding as of the filing date of this Quarterly Report are by contribution
in kind (62,997 thousand yen of monetary compensation claims) when treasury shares was disposed of for restricted
stock compensation.

(2) Status of Stock Acquisition Rights, etc.
1) Details of Stock Option Scheme
No applicable matter.
2) Status of Other stock acquisition right
No applicable matter.

(3) Status of Exercise of Moving Strike Convertible Bonds, etc.
No applicable matter.

(4) Changes in the Number of Shares Issued and Outstanding, Share Capital, etc.
PeriodShare capital(Thousands of yen)

Number of shares issued andoutstanding
ChangeBalance

ChangeBalance

Legal capital surplus(Thousands of yen)
ChangeBalance

From October 1, 2022 to
December 31, 2022
76,40033,818,924
43,888
7,761,676
43,888
6,873,668(See Note 1)
Note: 1. The increases are due to the exercise of stock acquisition rights.
2. In the period from January 1, 2023 to January 31, 2023, the number of shares issued and outstanding increased by
3,500 shares, and the amount of share capital and that of legal capital surplus increased by 2,226 thousand yen
respectively, all through the exercise of stock acquisition rights.
3. The number of shares issued and outstanding decreased by 424,400 shares due to the retirement of treasury shares
implemented on January 31, 2023.

(5) Status of Major Shareholders
As the current quarterly accounting period is the third quarter, there is no matter to be stated.

-4-(6) Status of Voting Rights
Since the “Status of Voting Rights” as of the end of the current third quarter cannot be stated herein as therelevant entries in the shareholder registry have yet to be confirmed, it is stated based on the shareholder
registry as of the most recent record date (September 30, 2022).
1) Shares issued and outstanding
As of December 31, 2022
Number of shares

Number of voting rights(Units)Remarks

Shares without voting rights

---

---

---

Shares with restricted voting rights(Treasury shares, etc.)

---

---

---

Shares with restricted voting rights (Other)

---

---

---

---

---

Category

Shares with full voting rights (Treasury
shares, etc.)

Common stock

Shares with full voting rights (Other)(See Note 1 and Note 2)

Common stock 32,867,600

Shares constituting less than one full unit
(See Note 3)

Common stock

Number of shares issued and outstanding

796,400

328,676---

78,524------33,742,524

---

---

Total number of voting rights held by--328,676--shareholders
Note: 1. 500 shares held in the name of Japan Securities Depository Center, Inc. are included in the row “Shares with full voting
rights (Other)”. 5 units of voting rights pertaining to shares with full voting rights held in the name of Japan Securities
Depository Center, Inc. are included in the column “Number of voting rights”.
2. 88,100 shares of the Company which a trust account for employee stock ownership plan holds (the number of voting
rights: 889 units) are included in the row “Shares with full voting rights (Other)”. 881 units of voting rights for shareswith full voting rights of such trust account are included in the column “Number of voting rights”.
3. 58 shares of treasury shares are included in the row “Shares constituting less than one full unit”.

2) Treasury Shares, etc.
As of December 31, 2022
Name and address of shareholder
Full name or corporate
nameAddress

Arisawa Mfg. Co., Ltd.

5-5, Minami-honcho 1chome, Joetsu-shi,
Niigata

Number of shares held
Under own
name796,400

Under thenames ofothers---Total

796,400

Ratio of the number ofshares held to thenumber of sharesissued and outstanding
(%)
2.36

Total
--796,400--796,400
2.36
Note: 88,100 shares of the Company which a trust account for employee stock ownership plan holds are not included in thecolumn “Under own name”.

2. Status of Directors and Officers
No applicable matter.

-5-

IV. Status of Accounting
1.

Method of Preparation of Quarterly Consolidated Financial Statements
The quarterly consolidated financial statements of the Company are prepared in compliance with the“Regulations for Terminology, Forms and Preparation Methods of Quarterly Consolidated Financial Statements”(Cabinet Office Ordinance No. 64 of 2007).

2.

Certification of Audit
The Company received a quarterly review of its quarterly consolidated financial statements for the current
consolidated third quarter (From October 1, 2022 to December 31, 2022) and the current consolidated cumulative
third quarter (From April 1, 2022 to December 31, 2022) conducted by Ernst & Young ShinNihon LLC under theprovisions of Article 193-2, paragraph 1 of the Financial Instruments and Exchange Act.

-6-

1. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Thousands of yen)Previous consolidated
fiscal year
(As of March 31, 2022)

Current consolidated
third quarter(As of December 31, 2022)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade, and contract
assetsSecurities

17,341,765

1,040,342

100,330

Merchandise and finished goods

4,401,727

5,495,111

Work in process

2,112,503

2,335,731

Raw materials and supplies

4,123,818

4,736,358

Other

797,960

1,107,480

Allowance for doubtful accounts△15,947△34,242

45,876,007

50,005,326

13,775,074

16,369,428

279,191

255,874

16,073,835

Total current assets

19,198,120*

17,066,436

Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Investment securities

7,875,645

2,474,350

Other

933,709

1,028,903

Allowance for doubtful accounts△50,428△46,034

Total investments and other assets

8,758,926

3,457,219

Total non-current assets

22,813,192

20,082,522

Total assets

68,689,199

70,087,849-7-(Thousands of yen)Previous consolidated
fiscal year
(As of March 31, 2022)

Current consolidated
third quarter(As of December 31, 2022)

Liabilities
Current liabilities
Notes and accounts payable-trade

5,637,609

Current portion of bonds payable

26,80016,8003,562,272

3,280,169

957,962

1,284,006

1,087,828

835,853

Provision for product warranties

73,52543,045

Provision for bonuses

507,532

273,913

4,503

1,811

Short-term borrowings
Current portion of long-term borrowings
Income taxes payable

Provision for bonuses for directors (and other officers)
Other

3,332,705

Total current liabilities

15,190,739**

6,580,596

4,498,573
16,814,770

Non-current liabilities
27,60010,8003,845,199

4,314,021

Provision for share awards

29,80245,432Retirement benefit liability

583,365

537,096

Asset retirement obligations

92,521

100,102

Other

954,267

751,5445,532,757

5,758,997

20,723,496

22,573,768

Share capital

7,643,777

7,761,676

Capital surplus

3,017,461

3,112,421

Retained earnings

34,936,822

34,590,856

Treasury shares△299,704△1,006,038

Total shareholders’ equity

45,298,357

44,458,915

Valuation difference on available-for-sale securities

1,229,118

405,183

Deferred gains or losses on hedges△50,146△5,713Foreign currency translation adjustment

1,317,9782,584,049

Remeasurements of defined benefit plans△8,734△4,4072,488,215

2,979,112

Share acquisition rights

149,13176,053

Non-controlling interests

29,998－47,965,702

47,514,081

68,689,199

70,087,849

Bonds payable
Long-term borrowings

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

Total accumulated other comprehensive income

Total net assets
Total liabilities and net assets-8-(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income[Quarterly Consolidated Statements of Income][Consolidated cumulative third quarter](Thousands of yen)
Current consolidated
cumulative third quarter(From April 1, 2022
to December 31, 2022)

Previous consolidated
cumulative third quarter(From April 1, 2021
to December 31, 2021)
Net sales

32,663,855

33,543,349

Cost of sales

25,842,854

27,086,418

Gross profit

6,821,001

6,456,931

Selling, general and administrative expenses

4,017,995

4,319,837

Operating profit

2,803,005

2,137,093

Interest income

142,089

102,948

Dividend income

73,901

58,555

Foreign exchange gains

91,549347,203

Other285,207

227,710

Total non-operating income

592,748

736,417

Interest expenses

88,509106,692

Rent expenses

62,424

39,116

Non-operating income

Non-operating expenses

Other

89,161

22,246

Total non-operating expenses

240,094

168,055

3,155,659

2,705,456

Gain on sale of non-current assets

7,471

3,978

Gain on sale of investment securities

737,947

1,305,241

Other

45,91940,870Total extraordinary income

791,337

1,350,090

Loss on retirement of non-current assets

28,50079,206

Loss on sale of investment securities

4,053

55,868－12,93814,098－

Ordinary profit
Extraordinary income

Extraordinary losses

Impairment losses
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-9-46,653148,0133,900,344

3,907,533

839,254

1,243,760

3,061,089

2,663,772

89,9202,465

2,971,168

2,661,307

[Quarterly Consolidated Statements of Comprehensive Income][Consolidated cumulative third quarter]
Previous consolidated
cumulative third quarter(From April 1, 2021
to December 31, 2021)
Profit(Thousands of yen)
Current consolidated
cumulative third quarter(From April 1, 2022
to December 31, 2022)

3,061,089

2,663,772△302,971△823,934

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
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

4,334

44,432△430,880

1,223,241

11,273

4,327

16,643

21,221△701,600

469,2882,359,489

3,133,061

3,221,518

3,152,203△862,029△19,142(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 10 -

[Notes](Changes in Accounting Policies)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement.)“Implementation Guidance on Accounting Standard for Fair Value Measurement” (Accounting Standards
Board of Japan Guidance No. 31, June 17, 2021; hereinafter referred to as “Implementation Guidance”), etc.
have been applied from the beginning of the current consolidated fiscal first quarter. In accordance with thetransitional treatment set forth in paragraph 27-2 of Implementation Guidance, the new accounting policy set
forth in Implementation Guidance was applied prospectively. There is no impact due to this application.
(Particular accounting treatments applied in preparation of quarterly consolidated financial statements)<Calculation of tax expenses>
Tax expenses are calculated by multiplying the quarterly profit before income taxes by an estimatedeffective tax rate. Such effective tax rate is reasonably estimated after applying tax effect accounting to the
profit before income taxes for the consolidated fiscal year including the current consolidated third quarter.
(Additional information)< Accounting estimates >There was no material change in assumptions and accounting estimates including the timing of thecontainment of the new corona virus infection, etc. stated in the Financial Report for the previous business year.
(Notes Related to Quarterly Consolidated Balance Sheets)* Notes, etc. maturing at the end of the consolidated third quarter
For accounting treatment of notes, electronically recorded monetary claims and electronically recorded
obligations maturing at the end of the consolidated third quarter, settlement is made as of the clearing date ofeach note or as of the settlement date of each electronically recorded monetary claim and electronically recorded
obligation, as the case may be. As the end of the current consolidated third quarter falls on a bank holiday, thefollowing notes, electronically recorded monetary claims and electronically recorded obligations maturing at
the end of the consolidated third quarter are included in their respective balances as of the end of theconsolidated third quarter.
Previous consolidated fiscal year
(As of March 31, 2022)
Notes and accounts receivable - trade, and contract
assets
Notes and accounts payable-trade
Current liabilities and others (Notes payable - nonoperating, Electronically recorded obligations-nonoperating)(Thousands of yen)
Current consolidated third quarter(As of December 31, 2022)－

25,754－

147,397－

23,044(Notes Related to Quarterly Consolidated Statements of Cash Flows)
Quarterly consolidated statements of cash flows for the current consolidated cumulative third quarter were notprepared. In this regard, the amounts of depreciation (including amortization of intangible assets) for the previous
and current consolidated cumulative third quarters are as follows.
Previous consolidated
cumulative third quarter(From April 1, 2021
to December 31, 2021)
Depreciation

1,599,527- 11 -(Thousands of yen)
Current consolidated
cumulative third quarter(From April 1, 2022
to December 31, 2022)
1,690,949

(Notes Related to Shareholders’ Equity, etc.)
I Previous consolidated cumulative third quarter (From April 1, 2021 to December 31, 2021)
1. Dividends paid
Total amount ofdividends(Thousands ofyen)

Dividend
per share(Yen)(Resolution)

Class ofsharesOrdinary General
Meeting of
Shareholders ofJune 25, 2021

Common stock

1,300,039

Board of Directors’Meeting of
October 28, 2021

Common stock

166,887

Record date

Effective
date

Source ofdividends

39.00

March 31, 2021

June 28, 2021

Retained earnings

5.00

September 30,
2021

December 2,
2021

Retained earnings

Note: “Total amount of dividends” under a resolution at the Board of Directors’ Meeting of October 28, 2021
includes dividends of 444 thousand yen on the Company’s shares which a trust account for employee stock
ownership plan holds.
2. Significant changes in the amount of shareholders’ equity
The Company terminated 900,000 shares as of August 31, 2021 upon a resolution by the Board of Directors heldon July 29, 2021. As a result, the retained earnings and the treasury shares decreased by 918,310 thousand yen
respectively in the current consolidated cumulative third quarter, and the retained earnings amounted to 33,996,990
thousand yen and the treasury shares to 299,684 thousand yen as of the end of the current consolidated third
quarter.
II Current consolidated cumulative third quarter (From April 1, 2021 to December 31, 2021)
1. Dividends paid
(Resolution)

Class ofsharesOrdinary General
Meeting of
Shareholders ofJune 28, 2022

Common stock

Total amount ofdividends(Thousands ofyen)

Dividend
per share(Yen)

3,006,166

90.00

Record date

Effective
date

Source ofdividends

March 31, 2022

June 29, 2022

Retained earnings

Note: “Total amount of dividends” includes dividends of 7,974 thousand yen on the Company’s shares which atrust account for employee stock ownership plan holds.
2. Significant changes in the amount of shareholders’ equity
The Company bought back 624,400 shares upon a resolution by the Board of Directors held on May 12, 2022.
As a result, the treasury shares increased 749,999 thousand yen in the current consolidated cumulative third quarterand amounted to 1,006,038 thousand yen as of the end of the current consolidated third quarter.

- 12 -

(Segment Information, etc.)[Segment Information]
I Previous consolidated cumulative third quarter (From April 1, 2021 to December 31, 2021)
1. Information on the amount of net sales and profit or loss with respect to each reportable segment(Thousands of yen)
Reportable segment
Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

Other(See Note)

Total

Sales
Sales toexternal
22,831,479
5,210,840
1,949,002
2,358,326
32,349,648
314,207
32,663,855
customers
Inter-segment
sales or628,951
628,951－－－－－transfers
Net sales
22,831,479
5,210,840
1,949,002
2,358,326
32,349,648
943,158
33,292,807
Segment profit
2,373,950
659,374
242,033
629,568
3,904,926
132,062
4,036,988
Note: The column “Other” represents business operations that do not fall under any of the reportable segments and includes therelated goods sales, the logistics-related operations and other businesses, etc.

2. Difference between the aggregate amount of profit or loss of reportable segments and the pertinent
amount shown on the quarterly consolidated statements of income as well as the key components of suchdifference (Matters concerning difference adjustment)(Thousands of yen)
ProfitAmountTotal of reportable segments

3,904,926

Profit in the category “Other”

132,062

Elimination of inter-segment transactions

11,305

Unallocated corporate expenses (See Note)△1,214,126

Adjustment of inventories△31,162
Operating profit shown on the quarterly
2,803,005
consolidated statements of income
Note: Unallocated corporate expenses are mostly general and administrative
expenses that are not attributable to any of the reportable segments.

3. Information on impairment loss on non-current assets or goodwill, etc. with respect to each reportablesegment
No applicable matter.

- 13 -

II Current consolidated cumulative third quarter (From April 1, 2022 to December 31, 2022)
1. Information on the amount of net sales and profit or loss with respect to each reportable segment(Thousands of yen)
Reportable segment
Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

Other(See Note)

Total

Sales
Sales toexternal
21,550,698
6,607,601
1,935,647
3,214,040
33,307,988
235,361
33,543,349
customers
Inter-segment
sales or642,875
642,875－－－－－transfers
Net sales
21,550,698
6,607,601
1,935,647
3,214,040
33,307,988
878,236
34,186,224
Segment profit
1,267,728
1,031,163
123,946
766,136
3,188,975
119,6963,308,671
Note: The column “Other” represents business operations that do not fall under any of the reportable segments and includes therelated goods sales, the logistics-related operations and other businesses, etc.

2. Difference between the aggregate amount of profit or loss of reportable segments and the pertinent
amount shown on the quarterly consolidated statements of income as well as the key components of suchdifference (Matters concerning difference adjustment)(Thousands of yen)
ProfitAmountTotal of reportable segments

3,188,975

Profit in the category “Other”

119,696

Elimination of inter-segment transactions

1,055

Unallocated corporate expenses (See Note)△1,124,615

Adjustment of inventories△48,017
Operating profit shown on the quarterly
2,137,093
consolidated statements of income
Note: Unallocated corporate expenses are mostly general and administrative
expenses that are not attributable to any of the reportable segments.

3. Information on impairment loss on non-current assets or goodwill, etc. with respect to each reportablesegment(Significant impairment losses on non-current assets)
In the industrial application structural materials segment, with respect to the assets in which investments
could not be expected to recover due to a downturn in profitability, the Company devalued their carrying
amount to memorandum value and showed the relevant amount of loss to extraordinary losses as
impairment losses.
In this regard, the amount of the relevant impairment losses shown in the current consolidated
cumulative third quarter is 12,938 thousand yen.

- 14 -

(For Revenue Recognition)
Information on the breakdown of revenue from contracts with customers
Previous consolidated cumulative third quarter (From April 1, 2021 to December 31, 2021)(Thousands of yen)
Other
Total
(See Note)

Reportable segment

Goods transferred
at a point in time
Goods transferredover time
Revenue fromcontracts withcustomers
Other revenue

Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

22,831,479

2,351,906

1,949,002

1,473,843

28,606,230

314,207

28,920,438－

2,858,934－

884,482

3,743,417－

3,743,417

22,831,479

5,210,840

1,949,002

2,358,326

32,349,648

314,207

32,663,855

－
－
－
－
－
－
－
Sales to external
22,831,479
5,210,840
1,949,002
2,358,326
32,349,648
314,207
32,663,855
customers
Note: The column “Other” represents business operations that do not fall under any of the reportable segments and includes therelated goods sales, the logistics-related operations and other businesses, etc.

Current consolidated cumulative third quarter (From April 1, 2022 to December 31, 2022)(Thousands of yen)
Other
Total
(See Note)

Reportable segment

Goods transferred
at a point in time
Goods transferredover time
Revenue fromcontracts withcustomers
Other revenue

Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

21,550,698

2,883,038

1,935,647

2,006,356

28,375,741

235,361

28,611,102－

3,724,563－

1,207,683

4,932,246－

4,932,246

21,550,698

6,607,601

1,935,647

3,214,040

33,307,988

235,361

33,543,349

－
－
－
－
－
－
－
Sales to external
21,550,698
6,607,601
1,935,647
3,214,040
33,307,988
235,361
33,543,349
customers
Note: The column “Other” represents business operations that do not fall under any of the reportable segments and includes therelated goods sales, the logistics-related operations and other businesses, etc.

- 15 -

(Per Share Information)
The amounts of basic earnings per share and diluted earnings per share with their respective bases of calculation
are as follows.
Previous consolidated
cumulative third quarter(From April 1, 2021
to December 31, 2021)(1) Basic earnings per share

Current consolidated
cumulative third quarter(From April 1, 2022
to December 31, 2022)

89.18 yen

80.52 yen

2,971,168

2,661,307－－

2,971,168

2,661,307

33,317,569

33,051,977

89.13 yen80.33 yen

(Basis of calculation)
Profit attributable to owners of parent(Thousands of yen)Amount not attributable to common
stockholders (Thousands of yen)
Profit attributable to owners of parent
pertaining to common stock(Thousandsof yen)Average number of shares of common stockduring the period(2) Diluted earnings per share(Basis of calculation)
Adjustment of profit attributable to owners----of parent (Thousands of yen)
Increase in the number of shares of common
17,843
76,631stock
Outline of dilutive shares that were not included----in the calculation of diluted earnings per share
due to a lack of dilutive effect and also
underwent a significant change after the end of
the previous consolidated fiscal year
Note: The Company’s shares which are shown as treasury share in shareholders’ equity and which a trust account for employee
stock ownership plan holds are included in the number of treasury share excluded in the calculation of the average numberof shares of common stock during the period when basic earnings per share is calculated (45,972 shares for the previous
consolidated cumulative third quarter and 88,216 shares for the current consolidated cumulative third quarter).

(Significant Subsequent Events)(Retirement of treasury shares)
The Company resolved to retire treasury shares at the Board of Directors’ Meeting of May 12, 2022 under theprovisions of Article 178 of the Companies Act, and carried out the retirement on January 31, 2023.
1. Class of shares retired: the Company’s common stock
2. Number of shares retired: 424,400 shares (1.25% out of the total number of shares issued and outstanding before
the retirement)
3. Date of the retirement: January 31, 2023
(Note)The total number of shares issued and outstanding after the retirement is 33,398,024 shares (including treasury
shares)2. Other
No applicable matter- 16 -

PART II. INFORMATION ON GUARANTY COMPANIES, ETC. OF THE
SUBMITTING COMPANY
No applicable matter.

- 17 -

Independent Auditors’ Quarterly Review ReportFebruary 14, 2023
To the Board of Directors of Arisawa Mfg. Co., Ltd.

Ernst & Young ShinNihon LLC
Niigata office
Akira Igarashi
Designated Limited Liability Partner and Engagement Partner,

Certified Public Accountant
Akira Takahashi
Designated Limited Liability Partner and Engagement Partner,

Certified Public Accountant
Conclusion of Auditors
We have conducted, under the provisions of Article 193-2, paragraph 1 of the Financial Instruments and ExchangeAct, a quarterly review of the quarterly consolidated financial statements of Arisawa Mfg. Co., Ltd. listed in the “Statusof Accounting” for the consolidated third quarter (From October 1, 2022 to December 31, 2022) and the consolidated
cumulative third quarter (From April 1, 2022 to December 31, 2022) of the consolidated fiscal year from April 1, 2022
to March 31, 2023, consisting of the quarterly consolidated balance sheets, quarterly consolidated statements of income,quarterly consolidated statements of comprehensive income and notes.
In our quarterly review, no matter has come to our attention that causes us to believe that the above quarterly
consolidated financial statements do not fairly present, in any material respect, the financial conditions of Arisawa
Mfg. Co., Ltd. and its consolidated subsidiaries as of December 31, 2022 and the results of their operations in the
consolidated cumulative third quarter ended December 31, 2022 in accordance with the standards for preparation ofquarterly consolidated financial statements generally accepted in Japan.
Basis for the Conclusion of Auditors
We conducted our quarterly review in accordance with the quarterly review standards generally accepted in Japan.
Our responsibility in the quarterly review standards is stated in “The Responsibility of Auditors in the Quarterly
Review Report of the Quarterly Consolidated Financial Statements.” We are independent of the Company and its
consolidated subsidiaries and fulfill other ethical responsibilities as an auditor in accordance with the code ofprofessional ethics in Japan. We believe that the evidence we have obtained provides a basis for our conclusion.
Responsibility of Management and Corporate Auditors and Board of Corporate Auditors for the Quarterly
Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the quarterly consolidated financial
statements in accordance with the standards for preparation of quarterly consolidated financial statements generally
accepted in Japan. This includes improvement and operation of such internal control as the management deems
necessary for the preparation and fair presentation of quarterly consolidated financial statements free from material
misstatement, whether due to fraud or error.
In preparing the quarterly consolidated financial statements, management is responsible for assessing whether it isappropriate to prepare the quarterly consolidated financial statements based on the going concern assumption anddisclosing the items regarding the going concern assumption in accordance with the standards for preparation ofquarterly consolidated financial statements generally accepted in Japan if such items are required to be disclosed.
Responsibility of Corporate Auditors and Board of Corporate Auditors is to monitor the execution of Directors’
duties in the improvement and operation of the financial reporting process.
The Responsibility of Auditors in the Quarterly Review Report of the Quarterly Consolidated Financial Statements.
Responsibility of auditors is to express a conclusion on the quarterly consolidated financial statements from an
independent standpoint in the quarterly review report based on our quarterly review.
Auditors make professional judgements and conduct the followings with an attitude of professional skepticism
through a quarterly review process in accordance with the quarterly review standards generally accepted in Japan.
・We principally make inquiries to the management, the persons responsible for financial and accounting matters,
etc. applying analytical procedures and conducting other quarterly review procedures. The quarterly review procedures
are less exhaustive than the procedures for annual financial statement audits conducted in accordance with the audit

standards generally accepted in Japan.
・ If we deem that there is a material uncertainty regarding events or conditions that may cast significant doubt
matters on the going concern assumption, we conclude whether the quarterly consolidated financial statements arefound to contain any matters that would lead one to believe that those are not fairly presented in accordance with thestandards for preparation of quarterly consolidated financial statements generally accepted in Japan based on theevidence we obtain. Moreover, if a material uncertainty regarding the going concern assumption exists, it is required
to promote awareness to the notes in the quarterly consolidated financial statements in the quarterly review report, or
if the notes regarding a material uncertainty in the quarterly consolidated financial statements are inappropriate, it isrequired to express a qualified conclusion or a negative conclusion to the quarterly consolidated financial statements.
Conclusion by the auditors is based on the audit evidence obtained by the day of the quarterly review report, but acompany may not be able to exist as the going concern depending on future events or conditions.
・We evaluate not only whether the presentation and notes of the quarterly consolidated financial statements arefound to contain any matters that would lead one to believe that those are not in accordance with the standards for
preparation of quarterly consolidated financial statements generally accepted in Japan but also whether the presentation,
structure, and contents of the quarterly consolidated financial statements including related notes as well as the quarterly
consolidated financial statements are found to contain any matters that would lead one to believe that those do not
fairly present underlying transactions and accounting events.
・We obtain evidence regarding the financial information of the Company and its consolidated subsidiaries toexpress an opinion about the quarterly consolidated financial statements. The auditors are responsible for instruction,
supervision, and execution of quarterly review regarding the quarterly consolidated financial statements. The auditors
assume responsibility for an audit opinion all by themselves.
The auditors make reports to Corporate Auditors and Board of Corporate Auditors on the scope of a planned
quarterly review and its timing of conduct, and material quarterly review findings.
The auditors make reports to Corporate Auditors and Board of Corporate Auditors on that they complied with thecode of professional ethics on independence in Japan, matters that are reasonably believed to have an impact on theauditors’ independence, and the details of safeguards if those are implemented to remove or mitigate inhibitors.
Interest
There exists no special interest between the Company as well as its consolidated subsidiaries and this audit corporation
or its engagement partners which is required to be stated pursuant to the provisions of the Certified Public Accountants
Act.
Note:

1. An original of the above quarterly review report is separately archived by the Company (the company submitting the Quarterly
Report).
2. XBRL data are not included in the subject of the quarterly review.