QUARTERLY REPORT(The First Quarter of the 70th Term)
From April 1, 2017 to June 30, 2017

(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. Agreements with Managerial Implications, etc. ................................................................................ 2
3. Analysis of Financial Conditions, Results of Operations and Status of Cash Flows ........................ 2
III. Status of the Submitting Company ..................................................................................................... 5
1. Status of Shares, etc. ......................................................................................................................... 5(1) Total Number of Shares, etc. ......................................................................................................... 5(2) Status of Stock Acquisition Rights, etc. ........................................................................................ 5(3) Status of Exercise of Moving Strike Convertible Bonds, etc. ....................................................... 5(4) Details of Rights Plan .................................................................................................................... 5(5) Changes in the Number of Shares Issued and Outstanding, Capital Stock, etc. ............................ 5(6) Status of Major Shareholders......................................................................................................... 5(7) Status of Voting Rights.................................................................................................................. 6
2. Status of Directors and Officers ........................................................................................................ 6
IV. Status of Accounting .......................................................................................................................... 7
1. Quarterly Consolidated Financial Statements ................................................................................... 8(1) Quarterly Consolidated Balance Sheets ......................................................................................... 8(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income............................................................................................................... 10[Quarterly Consolidated Statements of Income] ......................................................................... 10[Quarterly Consolidated Statements of Comprehensive Income] ............................................... 11
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, 2017

Quarterly accounting period:

The First Quarter of the 70th Term (From April 1, 2017 to June 30, 2017)

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, General Manager, Accounting Department

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

Telephone number:(025) 524-5126

Contact person:

Shuichi Kubota, General Manager, Accounting 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, Nihombashi 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

69th term
consolidated cumulative
first quarter
From April 1, 2016
to June 30, 2016

70th term
consolidated cumulative
first quarter
From April 1, 2017
to June 30, 2017

From April 1, 2016
to March 31, 2017

8,607

9,140

34,451

191

810

2,690

79

624

2,072

△1,424649

1,856

46,06949,27449,28259,56264,48863,808(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)69th term

2.24
17.49
58.20
Fully diluted net income per
2.24
17.38
58.06
share
(Yen)
Equity ratio
(%)
73.3
72.5
73.3
Note: 1. 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. Consumption tax, etc. are not included in the amount of net sales.

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. 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. Analysis of Financial Conditions, Results of Operations and Status of Cash Flows
Matters stated concerning the future in the text are based on judgments made by our Group (the Company andits consolidated subsidiaries) as of the end of the current consolidated first quarter.

(1) Status of Business Results
The Japanese economy in the current consolidated cumulative first quarter, against the backdrop of thegovernment’s economic stimulus measures on the monetary and fiscal fronts, etc., remained on an overall
recovery track. Meanwhile, a sense of uncertainty regarding the economic outlook persisted due largely to
the general misgivings about the apparent deceleration of growth in most major emerging economies.
Under such circumstances, our group (the Company, its consolidated subsidiaries and the companies
accounted for under the equity method) saw a year-on-year upturn in both net sales and operating income asa result of the stagnant demand for electronic materials for use primarily in multifunctional mobile terminals
and efforts to improve the profitability of industrial application structural materials.
Consequently, our group’s results of operations for the current consolidated cumulative first quarter
showed net sales of 9,140 million yen (representing a 6.2% increase as compared with the year-earlier
quarter), an operating income of 625 million yen (representing a 183.1% increase as compared with the yearearlier quarter), an ordinary income of 810 million yen (representing a 323.9% increase as compared withthe year-earlier quarter) and a profit attributable to owners of the parent of 624 million yen (representing a683.2% increase as compared with the year-earlier quarter).
Business results with respect to each segment are as follows.
In this regard, the order of statement of our Group’s business segments was revised effective from thecurrent consolidated first quarter.
1) Electronic materials segment
In the electronic materials segment, net sales were 5,903 million yen, representing a 20.1% increase ascompared with the year-earlier quarter and consisting mainly of the sales of our mainstay product, i.e.
materials for flexible printed circuit boards (the amount of orders received increased by 17.6%, and the
production output increased by 35.3%, as compared with the year-earlier quarter on a non-consolidated basisof the Submitting Company), while the segment income or loss recorded a segment income of 592 million
yen (a 93.3% increase as compared with the year-earlier quarter).
2) Industrial application structural materials segment
In the industrial application structural materials segment, net sales (consisting mainly of the sales offilament winding molded products as well as honeycomb panels and prepregs for aircraft) were 1,651 million
yen, representing an 18.8% decrease as compared with the year-earlier quarter, while the segment income orloss recorded a segment income of 252 million yen (a 179.4% increase as compared with the year-earlier
quarter).
3) Electrical insulating materials segment
In the electrical insulating materials segment, net sales (consisting mainly of the sales of prepregs and glass
cloth for electrical insulation) were 787 million yen, representing a 4.1% increase as compared with the yearearlier quarter, while the segment income or loss recorded a segment income of 136 million yen (a 18.1%
increase as compared with the year-earlier quarter).
4) Display materials segment
In the display materials segment, net sales (consisting mainly of the sales of 3D imaging-related materials)-2-were 585 million yen, representing a 9.9% decrease as compared with the year-earlier quarter, while thesegment income or loss recorded a segment loss of 95 million yen (a segment loss of 16 million yen for the
year-earlier quarter).
5) Other (other businesses)
In other businesses, net sales were 211 million yen, representing a 15.7% decrease as compared with theyear-earlier quarter, while the segment income or loss recorded a segment income of 64 million yen (a 19.4%
increase as compared with the year-earlier quarter).
It should also be noted that the amounts of net sales, orders received, etc. stated in this section do notinclude consumption tax, etc.

(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) Business and Financial Tasks to be Addressed
There was no significant change in the tasks to be addressed by our Group in the current consolidated
cumulative first quarter.
In this regard, the Company has a basic policy in place as to how the persons controlling the Company’s
financial and business policymaking shall act, and the contents, etc. of such basic policy (the matters set forthin Article 118, item 3 of the Ordinance for Enforcement of the Companies Act) are as follows.
1) Contents of the basic policy and the efforts toward the realization of the basic policy (including, but
not limited to, effective utilization of the assets of the Company and formation of an appropriate
corporate group)
The Company, ever since its initiation in 1909, has been working on technological innovations andproduct development to build up unique technologies that integrate the “weaving, coating and molding”
elements of its expertise while consistently fulfilling users’ needs, thereby increasing its corporate
value under favorable labor-management climate. The Company’s Board of Directors believes that theCompany is obligated to adhere to such time-honored principle of nurturing technologicalaccumulation and also to understand, foster and enhance the said corporate value in the long run.
In light of the above, our Group stands on a management policy centering on the motto “Creation,
Innovation and Challenge” as we aim to enhance profitability through creation of new business bases
and new markets with the utmost emphasis on the pursuit of safety and quality.
2) Efforts to prevent inappropriate persons from controlling the Company’s financial and business
policymaking
Stock markets in late years witnessed such takeover methods that, for instance, force through largescale purchases of shares without providing sufficient explanation to, or consultation with, theshareholders and the management of the target company. Many of the takeovers using such methods
apparently entail erosion of corporate value and forced sales of shares, etc. to the detriment ofshareholders’ interests.
Such being the case, we acknowledged the need to ensure proper disclosure of necessary andsufficient information and also secure the time required for examination and consideration of an offer
to purchase by presenting a set of rules and procedures for large-block purchasers and purchaseofferors (hereinafter individually referred to as a “Purchaser”) to comply with. Thus the Company,
pursuant to the provisions of its Articles of Incorporation, established the measures to address largescale acquisitions of the Company’s shares (hereinafter referred to as the “Rules”) and obtained theshareholders’ approval of the Rules at the 69th Ordinary General Meeting of Shareholders held on
June 28, 2017.
In the event that: (i) invocation of a countermeasure is approved under the Rules at a general
meeting of shareholders, etc. held to confirm the shareholders’ intentions; (ii) the Purchaser does notcomply with the Rules; or (iii) it is evident that a large-scale acquisition of the Company’s shares or
any similar act or an offer of any of such acts (hereinafter individually referred to as a “Purchase”)
will impair the Company’s corporate value, the countermeasure(s) shall be invoked in accordancewith the Rules.
(For the details of the Rules, please refer to the Company’s website at: http://www.arisawa.co.jp/)-3-3) The fact that the aforesaid efforts, in accordance with the basic policy, do not erode the Company’s
corporate value and the common interests of the shareholders and that such efforts do not aim to
maintain the status of the Company’s directors and officers
The Company’s Board of Directors believes that, with the Company’s shares listed on the stock
exchange for unfettered trading by the investors, a large-scale purchase of the Company’s sharesconducted against the will of the Company’s Board of Directors or an offer to purchase entailing achange of control of the Company should not be ruled out by the Company’s Board of Directors if
and to the extent that such acts contribute to the common interests of the shareholders throughenhancement of the Company’s corporate value, and so the final judgment as to the said acts should
be made collectively by the shareholders of the Company.
If and when such Purchase is conducted, we deem it best to collect detailed information from thePurchaser and provide the shareholders with sufficient levels of disclosure (in order for theshareholders to make a proper judgment) and also to have the Company’s Board of Directors express
its opinions, inviting the shareholders to directly express their intentions at a general meeting ofshareholders, etc. as to which of the cases is more conducive to securing and enhancing theCompany’s corporate value and the common interests of the shareholders. The Rules set forth asfollows:a.

Judgment by direct resolution of the shareholders
The Rules provide that the shareholders shall directly pass judgment on whether an offer topurchase made by a Purchaser should be approved, except where the Purchaser does not comply
with the Rules, etc. It is virtually impossible, in the process and procedures of confirming theshareholders’ intentions, for a director of the Company to make individual solicitations, etc. inpursuit of his or her own interests, and no room is left for an arbitrary intent of any of theCompany’s directors to impinge on the shareholders’ intentions.
b. Restrictions on invocation of countermeasures by the judgment of the Board of Directors
Invocation by the Company’s Board of Directors of a countermeasure without confirming theshareholders’ intentions is possible only when any breach of the Rules or erosion of theCompany’s corporate value and the common interests of the shareholders is evident, and also theso-called “sunset clause” is attached to limit the valid term of the Rules to approximately two (2)years.
Therefore, the Company’s Board of Directors believes that this “Basic Policy for the Control of
Kabushiki-Kaisha” represents the Company’s efforts to secure and maintain the Company’s
corporate value and the common interests of the shareholders and that such basic policy does not
impair the interests of the Company’s shareholders.

(4) Research and Development Activities
The Group’s total expenses for research and development activities incurred in the current consolidated
cumulative first quarter amounted to 471 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.

-4-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, 2017)

Class

Number of shares issued
and outstanding as of thefiling date of this Quarterly
Report(As of August 10, 2017)

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

Remarks

Common stock

35,776,224

35,792,224

Tokyo Stock Exchange(First Section)

Number of sharesconstituting one
full unit: 100

Total

35,776,224

35,792,224

---

---

Note: The number of shares issued through the exercise of stock acquisition rights in the period from August 1, 2017 to thefiling date of this Quarterly Report is not included in the column “Number of shares issued and outstanding as of the filingdate of this Quarterly Report”.

(2) Status of Stock Acquisition Rights, etc.
No applicable matter.

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

(4) Details of Rights Plan
No applicable matter.

(5) Changes in the Number of Shares Issued and Outstanding, Capital Stock, etc.
PeriodFrom April 1, 2017 toJune 30, 2017
(See Note 1)
Note:

1.
2.

Capital stock(Thousands of yen)

Number of shares issued andoutstanding

Legal capital surplus(Thousands of yen)

ChangeBalance

ChangeBalance

ChangeBalance

96,60035,776,224

31,914

7,348,934

31,9146,460,952

The increases are due to the exercise of stock acquisition rights.
In the period from July 1, 2017 to July 31, 2017, the number of shares issued and outstanding increased by 16,000
shares, and the amount of capital stock and that of legal capital surplus increased by 6,457 thousand yen respectively,
all through the exercise of stock acquisition rights.

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

-5-(7) 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, 2017).
1) Shares issued and outstanding
As of June 30, 2017
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)

Common stock 35,581,700

Shares constituting less than one full unit
(See Note 2)

Common stock

Number of shares issued and outstanding

6,500

355,817---

91,424------35,679,624

---

---

Total number of voting rights held by--355,817--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. 36 shares of treasury stock are included in the row "Shares constituting less than one full unit".

2) Treasury Stock, etc.
As of June 30, 2017
Name and address of shareholder

Number of shares held

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

Full name or corporate
nameAddress

Under own
name

Under thenames ofothers

Total

Arisawa Mfg. Co., Ltd.

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

6,500

---

6,500

0.01

---

6,500

---

6,500

0.01

Total

2. Status of Directors and Officers
No applicable matter.

-6-

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, 2017 to June 30, 2017) and the current consolidated cumulative firstquarter (From April 1, 2017 to June 30, 2017) conducted by Ernst & Young ShinNihon LLC under the provisionsof Article 193-2, paragraph 1 of the Financial Instruments and Exchange Act.

-7-

1. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Thousands of yen)Previous consolidated
fiscal year
(As of March 31, 2017)

Current consolidated
first quarter(As of June 30, 2017)

AssetsCurrent assets
Cash and deposits

7,667,985

7,064,389

Notes and accounts receivable-trade12,618,700

13,257,309

797,550

1,032,759

Merchandise and finished goods

2,602,353

2,741,193

Work in process

1,301,381

1,354,875

Raw materials and supplies

2,095,419

2,623,206

Other

1,331,705

1,310,271

Allowance for doubtful accounts△127,077△130,756

Total current assets

28,288,018

29,253,249

11,065,403

10,812,767

Other

65,48664,236

Total intangible assets

65,48664,23623,864,265

23,703,106

Securities

Non-current assets
Property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Other

707,162

844,912

Allowance for doubtful accounts△181,927△189,719

Total investments and other assets

24,389,500

24,358,298

Total non-current assets

35,520,391

35,235,302

Total assets

63,808,409

64,488,551-8-

(Thousands of yen)
Current consolidated
first quarter(As of June 30, 2017)

Previous consolidated
fiscal year
(As of March 31, 2017)
Liabilities
Current liabilities
Notes and accounts payable-trade

5,168,250

5,811,315

Short-term loans payable

2,908,630

3,188,538

Current portion of long-term loans payable

446,754448,424

Income taxes payable

362,974

203,459

Provision for bonuses

447,415712,214

Provision for directors' bonuses

3,573

1,376

Provision for product warranties

169

168

Other

2,341,381

1,937,878

Total current liabilities

11,679,149

12,303,374

Long-term loans payable

1,836,093

1,829,763

Net defined benefit liability

558,112563,825

Asset retirement obligations

57,44856,413

Other395,551

460,180

2,847,205

2,910,183

14,526,354

15,213,557

Capital stock

7,317,019

7,348,934

Capital surplus

6,429,038

6,460,952

Retained earnings

31,471,074

31,377,774

Treasury stock△3,891△3,96645,213,240

45,183,695

942,763

1,099,743

5,153

546

Non-current liabilities

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

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

808,002668,508

Remeasurements of defined benefit plans△187,018△183,171

Total accumulated other comprehensive income

1,568,901

1,585,626

Subscription rights to shares

143,292

140,319

Non-controlling interests

2,356,620

2,365,352

Total net assets

49,282,055

49,274,994

63,808,409

64,488,551

Total liabilities and net assets-9-(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, 2017
to June 30, 2017)

Previous consolidated
cumulative first quarter(From April 1, 2016
to June 30, 2016)
Net sales

8,607,601

9,140,478

Cost of sales

7,353,170

7,449,200

Gross profit

1,254,431

1,691,277

Selling, general and administrative expenses

1,033,439

1,065,640

220,991

625,637

Interest income

78,074

91,866

Dividends income
Share of profit of entities accounted for using equity
methodOther

40,82443,872

11,937

97,103

157,906

99,014

Total non-operating income

288,743

331,856

Operating income
Non-operating income

Non-operating expenses
Interest expenses

13,451

14,792Foreign exchange losses

273,054

103,055

Other

31,90328,702

Total non-operating expenses

318,409

146,550

191,325

810,9433

49,876

Other

413

9,462

Total extraordinary income

416

59,338－63,595

Ordinary income
Extraordinary income
Gain on sales of investment securities

Extraordinary losses
Loss on valuation of investment securities
Other

4,990

2,264

Total extraordinary losses

4,990

65,859

Income before income taxes

186,752

804,422

Income taxes

101,811

152,317

Profit84,941

652,105

Profit attributable to non-controlling interests

5,207

27,622

Profit attributable to owners of the parent

79,733

624,482- 10 -

[Quarterly Consolidated Statements of Comprehensive Income][Consolidated cumulative first quarter](Thousands of yen)
Current consolidated
cumulative first quarter(From April 1, 2017
to June 30, 2017)

Previous consolidated
cumulative first quarter(From April 1, 2016
to June 30, 2016)
Profit84,941

652,105△867,014

157,080

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
Comprehensive income(Breakdown)Comprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests- 11 -－△4,607△457,710△73,387

2,321

2,412

△187,377△83,664△1,509,780△2,165△1,424,839

649,939△1,181,257

641,208△243,582

8,731

[Notes](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.
(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 except for
goodwill), amortization of goodwill and amortization of negative goodwill for the previous and current
consolidated cumulative first quarters are as follows.
Previous consolidated
cumulative first quarter(From April 1, 2016
to June 30, 2016)
Depreciation
Amortization of goodwill(Thousands of yen)
Current consolidated
cumulative first quarter(From April 1, 2017
to June 30, 2017)

407,595
29414,273－(Notes Related to Shareholders’ Equity, etc.)
I Previous consolidated cumulative first quarter (From April 1, 2016 to June 30, 2016)
Dividends paid
(Resolution)

Class ofsharesOrdinary General
Meeting of
Shareholders ofJune 24, 2016

Common stock

Total amount ofdividends(Thousands ofyen)

Dividend
per share(Yen)

818,91223.00

Record date

Effective
date

Source ofdividends

March 31, 2016

June 27, 2016

Retained earnings

II Current consolidated cumulative first quarter (From April 1, 2017 to June 30, 2017)
Dividends paid
(Resolution)

Class ofsharesOrdinary General
Meeting of
Shareholders ofJune 28, 2017

Common stock

Total amount ofdividends(Thousands ofyen)

Dividend
per share(Yen)

713,461

20.00- 12 -

Record date

Effective
date

Source ofdividends

March 31, 2017

June 29, 2017

Retained earnings

(Segment Information, etc.)[Segment Information]
I Previous consolidated cumulative first quarter (From April 1, 2016 to June 30, 2016)
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

4,916,077

2,034,161

756,526

649,966

8,356,732

250,869

8,607,601

－

－

－

－

－

183,897

183,897

4,916,077
2,034,161
756,526
649,966
8,356,732
434,767
8,791,499
Segment income△16,267
306,635
90,241
115,335
495,946
54,052549,999
or loss ()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

495,946

Income in the category “Other”

54,052△16,990

Elimination of inter-segment transactions△29

Amortization of goodwill△293,972

Unallocated corporate expenses (See Note)△18,014
Operating income shown on the quarterly
220,991
consolidated statements of income
Note: Unallocated corporate expenses are mostly general and administrative expenses
that are not attributable to any of the reportable segments.
Adjustment of inventories

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 first quarter (From April 1, 2017 to June 30, 2017)
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

5,903,691

1,651,770

787,716585,721

8,928,899

211,578

9,140,478

－

－

－

－

－

192,343

192,3435,903,691
1,651,770
787,716585,721
8,928,899
403,921
9,332,821
Segment income△95,764592,645
252,095
136,183
885,160
64,543
949,703or loss ()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

885,160

Income in the category “Other”

64,543Elimination of inter-segment transactions△18,489

Unallocated corporate expenses (See Note)△284,024△21,553
Operating income shown on the quarterly
625,637
consolidated statements of income
Note: Unallocated corporate expenses are mostly general and administrative expenses
that are not attributable to any of the reportable segments.
Adjustment of inventories

3.

Matters concerning changes in reportable segments, etc.
The categorization, introduced in the current consolidated cumulative first quarter, of reportablesegments was changed due to the liquidation of a subsidiary so that the “Related goods sales”, which
was categorized as a reportable segment, is incorporated into the “Other”.
In this regard, the segment information for the previous consolidated cumulative first quarter is reported
on the basis of the reportable segments reflecting the said change in categorization.

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

- 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, 2016
to June 30, 2016)(1) Net income per share

Current consolidated
cumulative first quarter(From April 1, 2017
to June 30, 2017)2.24 yen

17.49 yen

79,733

624,482－－

79,733

624,482

35,605,651

35,711,753

2.24 yen

17.38 yen

---

---

65,719211,515(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---

(Significant Subsequent Events)
No applicable matter.

2. Other
No applicable matter.

- 15 ----

PART II. INFORMATION ON GUARANTY COMPANIES, ETC. OF THE SUBMITTING
COMPANYNo applicable matter.

- 16 -

Independent Auditors’ Quarterly Review ReportAugust 10, 2017
To the Board of Directors of Arisawa Mfg. Co., Ltd.

Ernst & Young ShinNihon LLC
Satoshi Ejima[Seal]

Designated Limited Liability Partner and Engagement Partner,

Certified Public Accountant
Makoto Iguchi[Seal]

Designated Limited Liability Partner and Engagement Partner,

Certified Public Accountant
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, 2017 to June 30, 2017) and the consolidated cumulative
first quarter (From April 1, 2017 to June 30, 2017) of the consolidated fiscal year from April 1, 2017 to March 31,
2018, consisting of the quarterly consolidated balance sheets, quarterly consolidated statements of income, quarterly
consolidated statements of comprehensive income and notes.
Responsibility of Management 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.
Responsibility of Auditors
Our responsibility is to express a conclusion on the quarterly consolidated financial statements from an independent
standpoint based on our quarterly review. We conducted our quarterly review in accordance with the quarterly review
standards generally accepted in Japan.
A quarterly review consists principally of making inquiries to the management and the persons responsible forfinancial 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.
We believe that the evidence we have obtained provides a basis for our conclusion.
Conclusion of Auditors
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, 2017 and the results of their operations in the
consolidated cumulative first quarter ended June 30, 2017 in accordance with the standards for preparation of quarterly
consolidated financial statements generally accepted in Japan.
Interest
There exists no special interest between the Company and this audit corporation or its engagement partners whichis required to be stated pursuant to the provisions of the Certified Public Accountants Act.
Note:

1. All the matters stated above have been electronically copied from the matters stated in the original quarterly review report. The
original 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.