QUARTERLY REPORT(The First Quarter of the 75th Term)
From April 1, 2022 to June 30, 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 Flows by 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, Capital Stock, 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 ofComprehensive Income................................................................................................................. 9[Quarterly Consolidated Statements of Income] ........................................................................... 9[Quarterly Consolidated Statements of Comprehensive Income] ............................................... 10
2. Other................................................................................................................................................ 15
PART II. INFORMATION ON GUARANTY COMPANIES, ETC. OF THE
SUBMITTING COMPANY ................................................................................................ 16[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:

August 10, 2022

Quarterly accounting period:

The First Quarter of the 75th Term (From April 1, 2022 to June 30, 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
first quarter
From April 1, 2021
to June 30, 2021

75th term
consolidated cumulative
first quarter
From April 1, 2022
to June 30, 2022

From April 1, 2021
to March 31, 2022

10,785

11,321

43,089

1,060

1,177

4,204

777

1,167

3,911

807

1,479

4,530

46,474

46,17347,96567,764

68,882

68,689(Millions of yen)

Ordinary income(Millions of yen)
Profit attributable to ownersof the parent(Millions of yen)Comprehensive income(Millions of yen)
Net assets (Millions of yen)
Total assets(Millions of yen)
Net income per share (Yen)74th term

23.31
35.11
117.40Fully diluted net income per
23.28
35.08
117.32share(Yen)
Equity ratio
(%)
67.3
66.8
69.6
Note:
As Arisawa Mfg. Co., Ltd. (hereinafter referred to as either the “Company” or the “Submitting Company”, as the casemay be) prepares the quarterly consolidated financial statements, the changes in principal management indicators, etc. of
the Submitting 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 first 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 first 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 first quarter.

(1) Financial Position and Operating Results1) Operating Results
The Japanese economy in the current consolidated cumulative first quarter remained uncertain due toconcerns about the re-spread of infections by new variants, China's zero-Covid policy, a prolonged conflictin Ukraine, soaring energy costs and raw material prices resulted from a rapid weakening of the Japaneseyen, etc., although an easing of movement restrictions has advanced in relation to the novel coronavirus.
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 first quarter showed, due to a steady increase in sales of electronic materials, net sales of 11,321
million yen (representing a 5.0% increase as compared with the year-earlier quarter), an operating income of
705 million yen (representing a 31.7% decrease as compared with the year-earlier quarter), an ordinary
income of 1,177 million yen (representing a 11.0% increase as compared with the year-earlier quarter) anda profit attributable to owners of the parent of 1,167 million yen (representing a 50.2% increase as comparedwith the year-earlier quarter).
Business results with respect to each segment are as follows.
a. Electronic materials segment
In the electronic materials segment, net sales were 7,765 million yen, representing a 1.3% increase ascompared with the year-earlier quarter, due to a steady increase in sales of materials for flexible printed
circuit boards, etc. (the amount of orders received increased by 14.5%, and the production output decreaseby 5.5%, as compared with the year-earlier quarter on a non-consolidated basis of the Submitting Company),
while the segment income or loss recorded a segment income of 715 million yen (a 25.4% decrease ascompared with the year-earlier quarter).
b. Industrial application structural materials segment
In the industrial application structural materials segment, net sales were 1,748 million yen, representing
a 7.4% increase as compared with the year-earlier quarter, due to an increase in sales of FRP pressure vessels
for water treatment, while the segment income or loss recorded a segment income of 81 million yen (a 52.8%
decrease as compared with the year-earlier quarter).
c. Electrical insulating materials segment
In the electrical insulating materials segment, net sales were 625 million yen, representing a 5.7% increase
as compared with the year-earlier quarter, due to a steady increase in infrastructure-related sales, while thesegment income or loss recorded a segment income of 40 million yen (a 25.8% decrease as compared withthe year-earlier quarter).
d. Display materials segment
In the display materials segment, net sales were 1,093 million yen, representing a 42.0% increase ascompared with the year-earlier quarter, due to an increase in sales of 3D-related materials, while the segment
income or loss recorded a segment income of 262 million yen (a 27.7% increase as compared with the yearearlier quarter).
e. Other (other businesses)
In other businesses, net sales were 87 million yen, representing a 32.9 % decrease as compared with theyear-earlier quarter, while the segment income or loss recorded a segment income of 47 million yen (a 14.5%
decrease as compared with the year-earlier quarter).

-2-2) Financial Position
Total assets as of the end of the current consolidated cumulative first quarter were 68,882 million yen,
an increase of 193 million yen compared with the end of the previous year. This was due largely to anincrease of 105 million yen in notes, accounts receivable-trade and contract assets, an increase of 258
million yen in securities and an increase of 652 million yen in raw materials and supplies, a decrease of
2,756 million yen in cash and deposits and a decrease of 2,450 million yen in investment securities.
Total liabilities as of the end of the current consolidated cumulative first quarter were 22,709 million yen,
an increase of 1,985 million yen compared with the end of the previous year. This was due largely to anincrease of 1,639 million yen in notes and accounts payable - trade, an increase of 635 million yen in longterm borrowings.
Total net assets as of the end of the current consolidated cumulative first quarter were 46,173 million yen,a decrease of 1,792 million yen compared with the end of the previous year. This was due largely to adecrease of 1,838 million yen in retained earnings.

(2) Management Policy, Management Strategy, etc.
There was no significant change, during the current consolidated cumulative first 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 ourGroup in the current consolidated cumulative first quarter.

(5) Research and Development Activities
The Group’s total expenses for research and development activities incurred in the current consolidated
cumulative first quarter amounted to 448 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 first quarter.

3. Agreements with Managerial Implications, etc.
In the current consolidated first 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 first quarter(As of June 30, 2022)

Class

Number of shares issued
and outstanding as of thefiling date of this Quarterly
Report(As of August 10, 2022)

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

Remarks

Common stock

33,648,924

33,648,924

Tokyo Stock Exchange(Prime Market)

Number of sharesconstituting one
full unit: 100

Total

33,648,924

33,648,924

---

---

Note: 1. The number of shares issued through the exercise of stock acquisition rights in the period from August 1, 2022 to thefiling date of this Quarterly Report is not included in the column “Number of shares issued and outstanding as of thefiling date of this Quarterly Report”.
2. The Company disposed of 41,055 shares of treasury stock for restricted stock compensation as of July 27, 2022 upona 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 inkind (62,997 thousand yen of monetary compensation claims) when treasury stock was disposed of for restricted stockcompensation.

(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, Capital Stock, etc.
PeriodFrom April 1, 2022 toJune 30, 2022
(See Note 1)

Capital stock(Thousands of yen)

Number of shares issued andoutstanding

Legal capital surplus(Thousands of yen)

ChangeBalance

ChangeBalance

ChangeBalance

34,10033,648,924

20,2477,664,025

20,247

6,776,016

Note: 1. The increases are due to the exercise of stock acquisition rights.

(5) Status of Major Shareholders
As the current quarterly accounting period is the first 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 first 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 (March 31, 2022).
1) Shares issued and outstanding
As of June 30, 2022
Number of shares

Number of voting rights(Units)Remarks

Shares without voting rights

---

---

---

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

---

---

---

Shares with restricted voting rights (Other)

---

---

---

---

---

Category

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

Common stock

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

Common stock 33,325,800

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

Common stock

Number of shares issued and outstanding

212,900

333,258---

76,124------33,614,824

---

---

Total number of voting rights held by--333,258--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. 88,600 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)”. 886 units of voting rights for shareswith full voting rights of such trust account are included in the column “Number of voting rights”.
3. 75 shares of treasury stock are included in the row "Shares constituting less than one full unit".

2) Treasury Stock, etc.
As of June 30, 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
name212,900

Under thenames ofothers---Total

212,900

Ratio of the number ofshares held to thenumber of sharesissued and outstanding
(%)
0.63

Total
--212,900--212,900
0.63
Note: 88,600 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 first quarter (From April 1, 2022 to June 30, 2022) and the current consolidated cumulative firstquarter (From April 1, 2021 to June 30, 2021) conducted by Ernst & Young ShinNihon LLC under the provisionsof 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
first quarter(As of June 30, 2022)

AssetsCurrent assets
Cash and deposits

17,341,765

14,585,346

Notes, accounts receivable-trade and contract assets

16,073,835

17,079,619

Securities

1,040,342

3,549,267

Merchandise and finished goods

4,401,727

4,694,501

Work in process

2,112,503

2,114,969

Raw materials and supplies

4,123,818

4,775,995

Other797,960

910,088

Allowance for doubtful accounts△15,947△13,289

45,876,007

47,696,499

13,775,074

14,262,358

279,191

269,033

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

7,875,645

5,424,961

Other933,7091,279,699

Allowance for doubtful accounts△50,428△49,813

Total investments and other assets

8,758,926

6,654,846

Total non-current assets

22,813,192

21,186,238

Total assets

68,689,199

68,882,738-7-

(Thousands of yen)Previous consolidated
fiscal year
(As of March 31, 2022)

Current consolidated
first quarter(As of June 30, 2022)

Liabilities
Current liabilities
Notes and accounts payable-trade

5,637,609

7,277,116

Current portion of bonds

26,80016,800

Short-term loans payable

3,562,272

2,762,676

Current portion of long-term loans payable

957,962

1,173,460

1,087,828

560,170

Provision for product warranties

73,52583,674

Provision for bonuses

507,532

870,260

4,503

496

Other

3,332,705

3,925,318

Total current liabilities

15,190,739

16,669,973

27,60019,200Long-term loans payable

3,845,199

4,480,400

Net defined benefit liability

583,365

568,330

Asset retirement obligations

92,521

94,408Provision for share-based remuneration

29,80235,301

Other

954,267

841,6295,532,757

6,039,270

20,723,496

22,709,244

7,643,777

7,664,025

Income taxes payable

Provision for directors' bonuses

Non-current liabilities
Bonds payable

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus

3,017,461

3,014,769

Retained earnings

34,936,822

33,098,024

Treasury stock△299,704△566,534

Total shareholders’ equity

45,298,357

43,210,284

Valuation difference on available-for-sale securities

1,229,118

1,136,332

Deferred gains or losses on hedges△50,146△47,512

Foreign currency translation adjustment

1,317,9781,737,582

Remeasurements of defined benefit plans△8,734△7,292

2,488,215

2,819,110

Subscription rights to shares

149,131

144,098

Non-controlling interests

29,998－47,965,702

46,173,493

68,689,199

68,882,738

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 first quarter](Thousands of yen)
Current consolidated
cumulative first quarter(From April 1, 2022
to June 30, 2022)

Previous consolidated
cumulative first quarter(From April 1, 2021
to June 30, 2021)
Net sales

10,785,102

11,321,623

Cost of sales

8,449,150

9,215,011

Gross profit

2,335,951

2,106,611

Selling, general and administrative expenses

1,302,972

1,400,776

Operating income

1,032,979

705,835

Interest income

47,871

41,930

Dividends income

36,273

40,106－

378,779

Other

70,57262,894

Total non-operating income

154,716

523,710

Interest expenses

28,481

30,554Foreign exchange losses

45,474－

Rental expenses

20,924

13,159Non-operating income

Foreign exchange gains

Non-operating expenses

Other

32,2098,487

Total non-operating expenses

127,089

52,202

1,060,606

1,177,344

1,478

461

Ordinary income
Extraordinary income
Gain on sales of non-current assets－

506,977

Other

37,4091,479

Total extraordinary income

38,887508,917－

51,223

Other

4,166

781

Total extraordinary losses

4,166

52,004

Income before income taxes

Gain on sales of investment securities

Extraordinary losses
Loss on sales of investment securities

1,095,327

1,634,257

Income taxes

268,535

464,423

Profit826,791

1,169,834

Profit attributable to non-controlling interests

49,571

2,465

Profit attributable to owners of the parent

777,220

1,167,368-9-

[Quarterly Consolidated Statements of Comprehensive Income][Consolidated cumulative first quarter](Thousands of yen)
Current consolidated
cumulative first quarter(From April 1, 2022
to June 30, 2022)

Previous consolidated
cumulative first quarter(From April 1, 2021
to June 30, 2021)
Profit826,791

1,169,834△140,994△192,785

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
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

122

2,633

108,914391,234

3,757

1,442

9,194

6,762

△19,005309,287

Comprehensive income

807,786

1,479,121(Breakdown)Comprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests

979,812

1,498,263△172,025△119,142- 10 -

[Notes](Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)“Implementation Guidance on Accounting Standard for Fair Value Measurement” (Accounting Standards Boardof Japan Guidance No. 31, June 17, 2021; hereinafter referred to as the “Implementation Guidance”), etc. have been
applied from the beginning of the current consolidated fiscal first quarter. In accordance with the transitional
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 income before income taxes by an estimatedeffective tax rate. Such effective tax rate is reasonably estimated after applying tax effect accounting to the income
before income taxes for the consolidated fiscal year including the current consolidated first quarter.
(Additional information)< Accounting estimates >There was no material change in assumptions and accounting estimates including the timing of the containmentof the new corona virus infection, etc. stated in the Financial Report for the previous business year.
(Notes Related to Quarterly Consolidated Statements of Cash Flows)
Quarterly consolidated statements of cash flows for the current consolidated cumulative first quarter were notprepared. In this regard, the amounts of depreciation (including amortization of intangible assets) for the previous
and current consolidated cumulative first quarters are as follows.
Previous consolidated
cumulative first quarter(From April 1, 2021
to June 30, 2021)
Depreciation

I(Thousands of yen)
Current consolidated
cumulative first quarter(From April 1, 2022
to June 30, 2022)

518,219

526,802(Notes Related to Shareholders’ Equity, etc.)
Previous consolidated cumulative first quarter (From April 1, 2021 to June 30, 2021)
1. Dividends paid

(Resolution)

Class ofsharesOrdinary General
Meeting of
Shareholders ofJune 25, 2021

Common stock

Total amount ofdividends(Thousands ofyen)

Dividend
per share(Yen)

1,300,039

39.00

Record date

Effective
date

Source ofdividends

March 31, 2021

June 28, 2021

Retained earnings

2. Significant changes in the amount of shareholders’ equity
No applicable matter.

II Current consolidated cumulative first quarter (From April 1, 2022 to June 30, 2022)
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- 11 -

Record date

Effective
date

Source ofdividends

March 31, 2022

June 29, 2022

Retained earnings

2. Significant changes in the amount of shareholders’ equity
The Company passed a resolution at the Board of Directors’ Meeting held on May 12, 2022 on the acquisition of treasury
stock under the provisions of Article 156 as applied following the deemed replacement of terms pursuant to the provisions ofArticle 165, paragraph 3 of the Companies Act. We are in the process of acquiring treasury stock through market purchaseson the Tokyo Stock Exchange during the period from May 13, 2022 to December 30, 2022, up to 820,000 shares to be acquired
and an acquisition price of 750,000 thousand yen. As a result, treasury stock increased by 266,923 thousand yen during thecurrent consolidated cumulative first quarter and amounted to 566,534 thousand yen at the end of the current consolidated
first quarter.

(Segment Information, etc.)[Segment Information]
I Previous consolidated cumulative first quarter (From April 1, 2021 to June 30, 2021)
1. Information on the amount of net sales and income or loss with respect to each reportable segment(Thousands of yen)
Other
Total
(See Note)

Reportable segment

Net sales
Net sales toexternal customers
Inter-segment
sales or transfers
Total

Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

7,664,109

1,627,799

592,168

769,940

10,654,017

131,084

10,785,102

－

－

－

－

－

205,543

205,5437,664,109

1,627,799

592,168

769,940

10,654,017

336,627

10,990,645

Segment income
Note:959,309
173,085
54,241205,851
1,392,488
55,305
1,447,793
The column “Other” represents business operations that do not fall under any of the reportable segments and includes
the related goods sales, the logistics-related operations and other businesses, etc.

2. Difference between the aggregate amount of income 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)
IncomeAmountTotal of reportable segments

1,392,488

Income in the category “Other”

55,305

Elimination of inter-segment transactions

4,426

Unallocated corporate expenses (See Note)△394,719

Adjustment of inventories△24,521
Operating income shown on the quarterly
1,032,979
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.

- 12 -

II Current consolidated cumulative first quarter (From April 1, 2022 to June 30, 2022)
1. Information on the amount of net sales and income or loss with respect to each reportable segment(Thousands of yen)
Other
Total
(See Note)

Reportable segment

Net sales
Net sales toexternalcustomers
Inter-segment
sales ortransfers
Total

Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

7,765,809

1,748,413

625,759

1,093,658

11,233,642

87,981

11,321,623

－

－

－

－

－

219,208219,208

7,765,809

1,748,413

625,759

1,093,658

11,233,642

307,189

11,540,831

Segment income

715,289
81,65540,254
262,934
1,100,132
47,304
1,147,437
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 income 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)
IncomeAmountTotal of reportable segments

1,100,132

Income in the category “Other”

47,304

Elimination of inter-segment transactions

2,411

Unallocated corporate expenses (See Note)△382,296

Adjustment of inventories△61,716
Operating income shown on the quarterly
705,835
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 -

(For Revenue Recognition)
Information on the breakdown of revenue from contracts with customers
Previous consolidated cumulative first quarter (From April 1, 2021 to June 30, 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

7,664,109

1,207,824

592,168

535,495

9,999,596

131,084

10,130,681－

419,975－

234,445654,421－654,4217,664,109

1,627,799

592,168

769,940

10,654,017

131,084

10,785,102

Subtotal

－
－
－
－
－
－
－
Net
sales
to
external
7,664,109
1,627,799
592,168
769,940
10,654,017
131,084
10,785,102
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 first quarter (From April 1, 2022 to June 30, 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

7,765,809

700,961

625,759

694,816

9,787,347

87,981

9,875,328－

1,047,452－

398,841

1,446,294－

1,446,294

7,765,809

1,748,413

625,759

1,093,658

11,233,642

87,981

11,321,623

Subtotal

－
－
－
－
－
－
－
Net
sales
to
external
7,765,809
1,748,413
625,759
1,093,658
11,233,642
87,981
11,321,623
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.

- 14 -

(Per Share Information)
The amounts of net income per share and fully diluted net income per share with their respective bases ofcalculation are as follows.
Previous consolidated
cumulative first quarter(From April 1, 2020
to June 30, 2020)(1) Net income per share

Current consolidated
cumulative first quarter(From April 1, 2021
to June 30, 2021)

23.31 yen

35.11 yen

777,220

1,167,368－－

777,220

1,167,368

33,340,548

33,245,408

23.28 yen

35.08 yen

---

---

47,68933,415(Basis of calculation)
Profit attributable to owners of the parent(Thousands of yen)Amount not attributable to common
stockholders (Thousands of yen)
Profit attributable to owners of the parent
pertaining to common stock(Thousands of yen)
Average number of shares of common stockduring the period(2) Fully diluted net income per share(Basis of calculation)
Adjustment of profit attributable to ownersof the parent (Thousands of yen)
Increase in the number of shares of common
stockOutline of dilutive shares that were not includedin the calculation of fully diluted net income pershare 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 stock in shareholders’ equity and which a trust account for employee
stock ownership plan holds are included in the number of treasury stock excluded in the calculation of the average numberof shares of common stock during the period when net income (or loss) per share is calculated (- shares for the previous
consolidated cumulative first quarter and 88,575 shares for the current consolidated cumulative first quarter).

(Significant Subsequent Events)
No applicable matter.

2. Other
No applicable matter.

- 15 -

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

- 16 -

Independent Auditors’ Quarterly Review ReportAugust 10, 2022
To the Board of Directors of Arisawa Mfg. Co., Ltd.

Ernst & Young ShinNihon LLC
Niigata office

Akira Igarashi[Seal]

Designated Limited Liability Partner and Engagement Partner,

Certified Public Accountant
Ken Takahashi[Seal]

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 first quarter (From April 1, 2022 to June 30, 2022) and the consolidated cumulative
first quarter (From April 1, 2022 to June 30, 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 June 30, 2022 and the results of their operations in the
consolidated cumulative first quarter ended June 30, 2022 in accordance with the standards for preparation of quarterly
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 acceptedin Japan.
・If we deem that there is a material uncertainty regarding events or conditions that may cast significant doubt matters on thegoing concern assumption, we conclude whether the quarterly consolidated financial statements are found to contain any
matters that would lead one to believe that those are not fairly presented in accordance with the standards for preparation ofquarterly consolidated financial statements generally accepted in Japan based on the evidence we obtain. Moreover, if amaterial uncertainty regarding the going concern assumption exists, it is required to promote awareness to the notes in thequarterly consolidated financial statements in the quarterly review report, or if the notes regarding a material uncertainty in thequarterly consolidated financial statements are inappropriate, it is required 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 a company 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 are found to containany 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 thequarterly 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 andaccounting events.
・We obtain evidence regarding the financial information of the Company and its consolidated subsidiaries to express an opinion
about the quarterly consolidated financial statements. The auditors are responsible for instruction, supervision, and executionof 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.