QUARTERLY REPORT(The Second Quarter of the 75th Term)
From July 1, 2022 to September 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. ................................................................................ 4
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) Changes in the Number of Shares Issued and Outstanding, Capital Stock, etc. ............................ 5(5) Status of Major Shareholders......................................................................................................... 6(6) Status of Voting Rights.................................................................................................................. 8
2. Status of Directors and Officers ........................................................................................................ 8
IV. Status of Accounting .......................................................................................................................... 9
1. Quarterly Consolidated Financial Statements ................................................................................. 10(1) Quarterly Consolidated Balance Sheets ....................................................................................... 10(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income............................................................................................................... 12[Quarterly Consolidated Statements of Income] ......................................................................... 12[Quarterly Consolidated Statements of Comprehensive Income] ............................................... 13(3) Quarterly Consolidated Statements of Cash Flows ..................................................................... 14
2. Other................................................................................................................................................ 22
PART II. INFORMATION ON GUARANTY COMPANIES, ETC. OF THE
SUBMITTING COMPANY ................................................................................................ 23[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:

November 14, 2022

Quarterly accounting period:

The Second Quarter of the 75th Term (From July 1, 2022 to September 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

74th term
consolidated cumulative
second quarter

Accounting period

From April 1, 2021
to September 30, 2021

75thnd term
consolidated cumulative
second quarter
From April 1, 2022
to September 30, 2022

21,74422,99443,089

2,287

2,408

4,204

1,745

2,563

3,911

Net sales(Millions of yen)

Ordinary income(Millions of yen)
Profit attributable to ownersof the parent(Millions of yen)

74th term
From April 1, 2021
to March 31, 2022

Comprehensive income(Millions of yen)
Net assets (Millions of yen)

1,798

3,003

4,530

47,40747,30847,965

Total assets (Millions of yen)

68,82870,866

68,689Net income per share(Yen)

52.38

77.37

117.40

52.34

77.23

117.32

67.6

66.6

69.6

2,867

1,559

5,901

1,889

4,214

2,869

△2,132△3,379△4,042

14,352

20,11016,893

Fully diluted net income per
share
(Yen)
Equity ratio(%)
Cash flows from operating
activities (Millions of yen)
Cash flows from investing
activities (Millions of yen)
Cash flows from financing
activities (Millions of yen)
Cash and cash equivalents at
the end of period(Millions of yen)

Term
Accounting period

74th term
consolidated
second quarter
From July 1, 2021
to September 30, 2021

75th term
consolidated
second quarter
From July 1, 2022
to September 30, 2022

Net income per share
29.07
42.28
(Yen)
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 second 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 second 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 second quarter.

(1) Financial Position and Operating Results1) Operating Results
The Japanese economy in the current consolidated cumulative second quarter remained uncertain due toChina's economic slowdown resulted from zero-Covid policy, soaring energy costs and raw material prices
resulted from a prolonged conflict in Ukraine and a rapid weakening of the Japanese yen, etc., although it
showed a gradual trend of recovery due to an easing of movement restrictions responding to the new corona
virus infection (COVID-19), etc.
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 second quarter showed, due to a steady increase in sales of electronic materials and an increasein sales of industrial application structural materials and display materials, net sales of 22,994 million yen(representing a 5.7% increase as compared with the year-earlier quarter), an operating income of 1,861
million yen (representing a 9.1% decrease as compared with the year-earlier quarter) due to a soaring energy
costs and raw material prices, an ordinary income of 2,408 million yen (representing a 5.3% increase ascompared with the year-earlier quarter) due to foreign exchange gains and a profit attributable to owners of
the parent of 2,563 million yen (representing a 46.8% increase as compared with the year-earlier quarter)
due to gain on sale of investment securities.
Business results with respect to each segment are as follows.
a. Electronic materials segment
In the electronic materials segment, net sales were 15,384 million yen (a 0.3% increase as compared withthe year-earlier quarter) due to a steady increase in sales of materials for flexible printed circuit boards (theamount of orders received increased by 12.2% and the production output decreased by 2.0% as comparedwith the year-earlier quarter on a non-consolidated basis of the Submitting Company), while the segment
income or loss recorded an income of 1,360 million yen (a 26.0% decrease as compared with the year-earlier
quarter) due to a soaring energy costs and raw material prices.
b. Industrial application structural materials segment
In the industrial application structural materials segment, net sales were 4,010 million yen (a 19.1%
increase as compared with the year-earlier quarter) due to an increase in sales of FRP pressure vessels forwater treatment, while the segment income or loss recorded an income of 595 million yen (a 64.3% increase
as compared with the year-earlier quarter).
c. Electrical insulating materials segment
In the electrical insulating materials segment, net sales were 1,254 million yen (a 0.8% increase ascompared with the year-earlier quarter) due to a steady increase in infrastructure-related sales, while thesegment income or loss recorded an income of 52 million yen (a 62.0% decrease as compared with the yearearlier quarter).
d. Display materials segment
In the display materials segment, net sales were 2,181 million yen (a 38.8% increase as compared with theyear-earlier quarter) due to an increase in sales of 3D-related materials and ColorLink Japan, Ltd.’spolarization control optical components, while the segment income or loss recorded an income of 574 million
yen (a 56.9% increase as compared with the year-earlier quarter).
-2-

e. Other (other businesses)
In other businesses, net sales were 162 million yen (a 25.5% decrease as compared with the year-earlier
quarter), while the segment income was 90 million yen (a 5.5% decrease as compared with the year-earlier
quarter).
2) Financial Position
Total assets as of the end of the current consolidated cumulative second quarter were 70,866 million yen,
an increase of 2,177 million yen compared with the end of the previous year. This was due largely to anincrease of 3,477 million yen in cash and deposits, an increase of 993 million yen in notes, accounts
receivable-trade and contract assets and an increase of 1,200 million yen in raw materials and supplies, adecrease of 896 million yen in securities and a decrease of 5,380 million yen in investment securities.
Total liabilities as of the end of the current consolidated cumulative second quarter were 23,557 million
yen, an increase of 2,834 million yen compared with the end of the previous year. This was due largely to
an increase of 1,715 million yen in notes and accounts payable - trade and an increase of 1,164 million yen
in long-term borrowings, a decrease of 724 million yen in short-term borrowings.
Total net assets as of the end of the current consolidated cumulative second quarter were 47,308 million
yen, a decrease of 656 million yen compared with the end of the previous year. This was due largely to anincrease of 1,285 million yen in foreign currency translation adjustment and an increase of 706 million yen
in treasury shares, a decrease of 443 million yen in retained earnings, a decrease of 819 million yen invaluation difference on available-for-sale securities.

(2) Status of Cash Flows
Cash and cash equivalents (hereinafter referred to as the “Funds”) as of the end of the current consolidated
second quarter amounted to 20,110 million yen, increasing 5,758 million yen, or 40.1%, as compared withthe end of the previous consolidated second quarter.
The following is the status of each cash flow category during the current consolidated cumulative second
quarter and the key factors of such status.
(Cash flows from operating activities)
Funds earned from operating activities were 1,559 million yen (a 45.6% decrease as compared with theyear-earlier quarter). This was due largely to an increase in the Funds comprising the postings of 3,682
million yen in income before income taxes, 1,465 million yen in increase in trade payables as well as adecrease in the Funds comprising 1,813 million yen in increase in inventories and a decrease in the Funds
comprising 1,249 million yen in gain on sales of short-term and long-term investment securities.
(Cash flows from investing activities)
Funds earned from investing activities were 4,214 million yen (a 123.1% increase as compared with theyear-earlier quarter). This was due largely to an increase in the Funds comprising proceeds from sales ofinvestment securities of 6,780 million yen.
(Cash flows from financing activities)
Funds disbursed for financing activities were 3,379 million yen (a 58.5% increase as compared with theyear-earlier quarter). This was due largely to a decrease in the Funds comprising the payment of 2,998 million
yen in cash dividends.

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

(4) 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.

(5) 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 second quarter.
-3-

(6) Research and Development Activities
The Group’s total expenses for research and development activities incurred in the current consolidated
cumulative second quarter amounted to 907 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 second quarter.

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

-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 second quarter(As of September 30, 2022)

Class

Number of shares issued andoutstanding as of the filingdate of this Quarterly Report(As of November 14, 2022)

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

Remarks

Common stock

33,742,524

33,755,524

Tokyo Stock Exchange(Prime Market)

Number of sharesconstituting one
full unit: 100

Total

33,742,524

33,755,524

---

---

Note:

1. The number of shares issued through the exercise of stock acquisition rights in the period from November 1, 2022 to
the filing date of this Quarterly Report is not included in the column “Number of shares issued and outstanding as of
the filing 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
in kind (62,997 thousand yen of monetary compensation claims) when treasury stock 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, Capital Stock, etc.
PeriodFrom July 1, 2022 toSeptember 30, 2022 (See
Note)

Capital stock(Thousands of yen)

Number of shares issued andoutstanding

Legal capital surplus(Thousands of yen)

ChangeBalance

ChangeBalance

ChangeBalance

93,60033,742,524

53,762

7,717,787

53,762

6,829,779

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

-5-(5) Status of Major Shareholders

Full name or
corporate name

Address

As of September 30, 2022
Ratio of the numberof shares held to thenumber of shares
Number ofissued andshares held
outstanding(excluding treasury
stock) (%)

The Master Trust Bank of Japan,
Ltd. (Trust account)11-3, Hamamatsu-cho 2-chome,
Minato-ku, Tokyo

4,827,000

14.65

INTERTRUST TRUSTEES（CAYMAN）LIMITED SOLELY IN ITS CAPACITY AS
TRUSTEE OF JAPAN-UP（Standing Proxy: Mizuho Bank
Ltd. Settlement & Clearing Services
Department）

ONE NEXUS WAY, CAMANA BAY GRANDCAYMAN KY1-9005, CAYMAN ISLANDS(Shinagawa Intercity Tower A, 15-1, Konan 2chome, Minato-ku, Tokyo)

3,259,200

9.89

Custody Bank of Japan, Ltd. (Trustaccount)

8-12, Harumi 1-chome,
Chuo-ku, Tokyo

2,074,200

6.29

1,472,166

4.46

Mitsubishi Gas Chemical Company, 5-2, Marunouchi 2-chome,
Inc.
Chiyoda-ku, Tokyo
Arisawa Kenko Ltd.

11-44, Nishishiro-cho 3-chome,
Joetsu-shi, Niigata

834,338

2.53

Daishi Hokuetsu Bank, Ltd.
(Standing Proxy: The Master Trust
Bank of Japan, Ltd.)1071-1, Higashiborimae-dori 7-bancho,
Chuo-ku, Niigata-shi, Niigata(11-3, Hamamatsu-cho 2-chome,
Minato-ku, Tokyo)

743,903

2.25

DFA INTL SMALL CAP VALUE
PORTFOLIO(Standing Proxy: Citibank Japan
Ltd.)

Palisades West 6300, Bee Cave Road Building
One, Austin, TX 78746 US(27-30, Shinjuku 6-chome,
Shinjuku-ku, Tokyo)

595,582

1.80

The Master Trust Bank of Japan,
Ltd. (Retirement benefit trust
account and Mitsubishi Electric
Corporation account)11-3, Hamamatsu-cho 2-chome,
Minato-ku, Tokyo

530,536

1.61

Sanji Arisawa

Shinjuku-ku, Tokyo

463,769

1.40

389,300

1.18

15,189,994

46.10

STATE STREET LONDON CARE
OF STATE STREET BANK AND
TRUST, BOSTON SSBTC A⁄C UK ONE LINCOLN STREET, BOSTON MA USALONDON BRANCH CLIENTS02111
UNITED KINGDOM(11-1 Nihonbashi 3-chome,(Standing Proxy: The Hongkong and Chuo-ku, Tokyo)
Shanghai Banking Corporation Ltd.,Tokyo Branch)
Total

---

Note: 1. The Company holds 796,458 shares of treasury stock, but it is excluded from the above major shareholders.
2. The ratio of the number of shares held to the total number of shares issued (except for treasury stock) is displayed with thenumbers truncating the numbers beyond the third decimal point. Treasury stock excluded from the total number of sharesissued and outstanding does not include 88,100 shares of the Company which a trust account for employee stock ownershipplan holds.
3. The number of shares held by Mitsubishi Gas Chemical Company, Inc. includes 966,306 shares that have been contributed
by Mitsubishi Gas Chemical Company, Inc. as the trust property of retirement benefit trust. The pertinent name in the
Company’s register of shareholders is “The Master Trust Bank of Japan, Ltd. (Retirement benefit trust account and
Mitsubishi Gas Chemical Company, Inc. account).”-6-

4. Though it is described in the Amendment Report on Bulk Holding available for public inspection as of September 6, 2018that Sumitomo Mitsui Trust Bank, Limited and a joint holder thereof hold the shares described below as of August 31, 2018,
the Company has confirmed no beneficial ownerships of the number of shares as of September 30, 2022. Therefore, such
number of shares is not included in above-mentioned Status of Major Shareholders. Details of the Amendment Report on
Bulk Holding are as follows:
Bulk Holders: Sumitomo Mitsui Trust Bank, Limited and two joint holders thereof

Address: 4-1, Marunouchi 1 chome, Chiyoda-ku, Tokyo
Number of shareholdings etc.
: 1,488,200
Holding ratio of share certificates etc. : 4.12%
5.Though it is described in the Amendment Report on Bulk Holding available for public inspection as of December 20, 2018that BlackRock Japan Co., Ltd. and a joint holder thereof hold the shares described below as of December 14, 2018, theCompany has confirmed no beneficial ownerships of the number of shares as of September 30, 2022. Therefore, such
number of shares is not included in above-mentioned Status of Major Shareholders. Details of the Report on Bulk Holding
are as follows:
Bulk Holders: BlackRock Japan Co., Ltd. and one joint holder thereof
Address: 8-3, Marunouchi 1 chome, Chiyoda-ku, Tokyo
Number of shareholdings etc.
: 1,259,700
Holding ratio of share certificates etc. : 3.48%
6. Though it is described in the Amendment Report on Bulk Holding available for public inspection as of December 21,
2018 that Sumitomo Mitsui Asset Management Company, Limited hold the shares described below as of December 14,
2018, the Company has confirmed no beneficial ownerships of the number of shares as of September 30, 2022. Therefore,such number of shares is not included in above-mentioned Status of Major Shareholders. Details of the Report on Bulk
Holding are as follows:
Bulk Holders: Sumitomo Mitsui Asset Management Company, Limited
Address: 5-1, Atago 2 chome, Minato-ku, Tokyo
Number of shareholdings etc.
: 1,090,300
Holding ratio of share certificates etc. : 3.01%
7. Though it is described in the Amendment Report on Bulk Holding available for public inspection as of October 2, 2020
that Nippon Value Investors KK hold the shares described below as of September 30, 2020, the Company has confirmed
no beneficial ownerships of the number of shares as of September 30, 2022. Therefore, such number of shares is notincluded in above-mentioned Status of Major Shareholders. Details of the Report on Bulk Holding are as follows:
Bulk Holders: Nippon Value Investors KK
Address: 8-1 Marunouchi 1 chome, Chiyoda-ku, Tokyo
Number of shareholdings etc.
: 1,421,500
Holding ratio of share certificates etc. : 3.91%
8. Though it is described in the Amendment Report on Bulk Holding available for public inspection as of March 22, 2022
that Strategic Capital, Inc. hold the shares described below as of March 14, 2022, the Company has confirmed nobeneficial ownerships of the number of shares as of September 30, 2022. Therefore, such number of shares is not includedin above-mentioned Status of Major Shareholders. Details of the Report on Bulk Holding are as follows:
Bulk Holders: Strategic Capital, Inc.
Address: 14-15, Higashi 3 chome, Shibuya-ku, Tokyo
Number of shareholdings etc.
: 2,982,700
Holding ratio of share certificates etc. : 8.88%-7-

(6) Status of Voting Rights
1) Shares issued and outstanding
As of September 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 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 stock are included in the row “Shares constituting less than one full unit”.

2) Treasury Stock, etc.
As of September 30, 2022
Name and address of shareholder

Number of shares held
Under thenames ofothersFull name or corporate
nameAddress

Arisawa Mfg. Co., Ltd.

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

796,400---

796,400

2.36---

796,400---

796,400

2.36

Total

Under own
name

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

Total

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.

-8-

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 second quarter (From July 1, 2022 to September 30, 2022) and the current consolidated cumulative
second quarter (From April 1, 2022 to September 30, 2022) conducted by Ernst & Young ShinNihon LLC under
the provisions of Article 193-2, paragraph 1 of the Financial Instruments and Exchange Act.

-9-

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

Current consolidated
second quarter(As of September 30, 2022)

AssetsCurrent assets
Cash and deposits

17,341,765

20,819,010

Notes, accounts receivable-trade and contract assets

16,073,835

17,067,446

Securities

1,040,342

144,083

Merchandise and finished goods

4,401,727

5,257,499

Work in process

2,112,503

2,282,890

Raw materials and supplies

4,123,818

5,323,850

Other

797,960

1,161,851

Allowance for doubtful accounts△15,947△24,337

45,876,007

52,032,294

13,775,074

14,516,299

279,191

265,872

7,875,645

2,495,520

Other933,7091,606,562

Allowance for doubtful accounts△50,428△49,619

Total investments and other assets

8,758,926

4,052,463

Total non-current assets

22,813,192

18,834,636

Total assets

68,689,199

70,866,930

Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Investment securities- 10 -

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

Current consolidated
second quarter(As of September 30, 2022)

Liabilities
Current liabilities
Notes and accounts payable-trade

5,637,609

7,352,793

Current portion of bonds

26,80016,800

Short-term loans payable

3,562,272

2,837,583

Current portion of long-term loans payable

957,962

1,557,416

1,087,828

1,207,077

Provision for product warranties

73,52532,743

Provision for bonuses

507,532

739,536

4,503

1,407

Other

3,332,705

3,292,977

Total current liabilities

15,190,739

17,038,335

27,60019,2003,845,199

5,009,835

Provision for share-based remuneration

29,80240,374

Net defined benefit liability

583,365

553,532

Asset retirement obligations

92,521

98,025

Other954,267

798,637

5,532,757

6,519,606

20,723,496

23,557,941

7,643,777

7,717,787

Income taxes payable

Provision for directors' bonuses

Non-current liabilities
Bonds payable
Long-term loans payable

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

3,017,461

3,068,532

Retained earnings

34,936,822

34,493,073

Treasury stock△299,704△1,006,307

Total shareholders’ equity

45,298,357

44,273,086

Valuation difference on available-for-sale securities

1,229,118

409,838

Deferred gains or losses on hedges△50,146△60,852

Foreign currency translation adjustment

1,317,9782,603,807

Remeasurements of defined benefit plans△8,734△5,8492,488,215

2,946,944

Subscription rights to shares

149,13188,957

Non-controlling interests

29,998－47,965,702

47,308,988

68,689,199

70,866,930

Accumulated other comprehensive income

Total accumulated other comprehensive income

Total net assets
Total liabilities and net assets- 11 -

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income[Quarterly Consolidated Statements of Income][Consolidated cumulative second quarter](Thousands of yen)
Current consolidated
cumulative second quarter(From April 1, 2022
to September 30, 2022)

Previous consolidated
cumulative second quarter(From April 1, 2021
to September 30, 2021)
Net sales

21,744,712

22,994,013

Cost of sales

17,055,141

18,292,178

Gross profit

4,689,570

4,701,835

Selling, general and administrative expenses*

2,640,857*

2,840,016

2,048,713

1,861,818

Interest income

94,14576,093

Dividends income

39,52040,147－425,868

Other

250,281

164,122

Total non-operating income

383,946

706,232

Interest expenses

56,44865,189Rent expenses

41,64826,194

Operating income
Non-operating income

Foreign exchange gains

Non-operating expenses－

51,386

Other

47,461

16,436

Total non-operating expenses

145,558

159,205

2,287,101

2,408,845

Gain on sales of non-current assets

1,298

461

Gain on sales of investment securities

226,398

1,305,241

Other

43,09440,870Total extraordinary income

270,791

1,346,572

4,053

55,867Compensation expenses

Ordinary income
Extraordinary income

Extraordinary losses
Loss on sales of investment securities－

11,813

Other

26,344

5,407

Total extraordinary losses

30,39873,087

Income before income taxes

2,527,494

3,682,330

Impairment loss

Income taxes
ProfitProfit attributable to non-controlling interests
Profitattributable to owners of the parent- 12 -

713,386

1,116,339

1,814,108

2,565,990

68,273

2,465

1,745,834

2,563,524

[Quarterly Consolidated Statements of Comprehensive Income][Consolidated cumulative second quarter]
Previous consolidated
cumulative second quarter(From April 1, 2021
to September 30, 2021)
Profit(Thousands of yen)
Current consolidated
cumulative second quarter(From April 1, 2022
to September 30, 2022)

1,814,108

2,565,990△231,595△819,279

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

3,982△10,706

191,193

1,240,050

7,515

2,885

13,21024,170△15,693

437,120

Comprehensive income

1,798,415

3,003,110(Breakdown)Comprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests

1,999,675

3,022,253△201,260△19,142- 13 -

(3) Quarterly Consolidated Statements of Cash Flows(Thousands of yen)
Current consolidated
cumulative second quarter(From April 1, 2022
to September 30, 2022)

Previous consolidated
cumulative second quarter(From April 1, 2021
to September 30, 2021)
Cash flows from operating activities
Income before income taxes

2,527,494

3,682,330

Depreciation

1,052,170

1,097,498

25,092

18,577

Gain on reversal of subscription rights to shares△43,094△40,870

Increase ( decrease) in allowance for doubtful accounts△21,682

5,523

Increase ( decrease) in provision for bonuses

Share-based compensation expenses

120,153

232,003

Increase ( decrease) in provision for product warranties△39△44,999

Increase ( decrease) in provision for directors' bonuses
Increase ( decrease) in provision for share-based
remuneration
Increase ( decrease) in net defined benefit liability△1,692△3,095

19,452△41,035△14,975△25,681

Loss ( gain) on redemption of investment securities△99,764△40,063Interest and dividends income△133,665△116,241

Subsidy income△28,226△9,652

Interest expenses

56,44865,189△61,162△251,516△238△29,194△222,344△1,249,374△1,298

△461

6,645

213

－

11,813333,086△197,010△2,233,961△1,813,237

496,080

1,465,803△17,513△276,064

Decrease ( increase) in other assets

70,968△155,290

Increase ( decrease) in other liabilities△204,433

106,252

Subtotal

1,623,501

2,391,417

Interest and dividends income received

148,501

176,560

Interest expenses paid

△70,130△61,841

28,226

9,652

Income taxes (paid) refund

1,137,813△955,899

Net cash provided by (used in) operating activities

2,867,912

1,559,889

Foreign exchange losses ( gains)Share of ( profit) loss of entities accounted for using
equity method
Loss ( gain) on sales of short-term and long-term
investment securities
Loss ( gain) on sales of non-current assets
Loss on retirement of property, plant and equipment
Impairment loss
Decrease ( increase) in notes and accounts receivabletrade
Decrease ( increase) in inventories
Increase ( decrease) in notes and accounts payabletrade
Increase ( decrease) in accrued consumption taxes

Proceeds from subsidy income- 14 -

(Thousands of yen)
Current consolidated
cumulative second quarter(From April 1, 2022
to September 30, 2022)

Previous consolidated
cumulative second quarter(From April 1, 2021
to September 30, 2021)
Cash flows from investing activities－△362,025

1,460,600

132,390△882,873△1,954,579

1,298

461

Purchase of intangible assets△36,602△21,236

Purchase of investment securities△102,918△332,491

Proceeds from sales of investment securities

Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

1,455,717

6,780,340

Payments of loans receivable－△20,097

Collection of loans receivable

4,510

4,305

Decrease (increase) in other investments△10,324△12,629

Net cash provided by (used in) investing activities

1,889,408

4,214,436

Net increase ( decrease) in short-term loans payable

126,916△903,394

Proceeds from long-term loans payable

519,377

2,587,765

Repayments of long-term loans payable△476,362△1,305,248

Repayments of lease obligations△39,858△57,691

Redemption of bonds△18,400△18,400

Payments for long-term accounts payable - other△31,094△4,70910,612

125,888△82,836△749,709△779,045△45,813△1,293,664△2,998,210

Cash dividends paid to non-controlling interests△68,154△9,589Net cash provided by (used in) financing activities△2,132,510△3,379,111

238,997822,104

2,863,808

3,217,319

Cash flows from financing activities

Proceeds from issuance of common stock
Purchase of treasury stock
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Cash dividends paid

Effect of exchange rate change on cash and cash equivalents
Net increase ( decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period

11,488,288

Cash and cash equivalents at end of period*- 15 -

14,352,096

16,893,109*

20,110,428

[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 the “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 forthin 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 estimated effective
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 second 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.

- 16 -

(Notes Related to Quarterly Consolidated Statements of Income)
Major items under selling, general and administrative expenses and their respective amounts are as follows.

*

Previous consolidated
cumulative second quarter(From April 1, 2021
to September 30, 2021)(Thousands of yen)
Current consolidated
cumulative second quarter(From April 1, 2022
to September 30, 2022)

Salaries, benefits and bonuses

851,979

855,435

Provision for bonuses

151,066

175,655

Provision for directors' bonuses

2,178

1,407

Retirement benefit expenses
Provision of allowance for doubtful
accounts

35,80332,908

3,835

6,332

(Notes Related to Quarterly Consolidated Statements of Cash Flows)* The correlation between the balance of cash and cash equivalents at the end of the current consolidated second
quarter and the amounts shown for the corresponding items on the quarterly consolidated balance sheets is asfollows.
Previous consolidated
cumulative second quarter(From April 1, 2021
to September 30, 2021)
Cash and deposits
Time deposits with a deposit term of
more than three months
Securities (Money management fund)Cash and cash equivalents

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

13,161,073

20,819,010△735,760△752,025

1,926,782
14,352,096

43,443
20,110,428(Notes Related to Shareholders’ Equity, etc.)
Previous consolidated cumulative second quarter (From April 1, 2021 to September 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. Dividends whose record date belongs to the current consolidated cumulative second quarterbut whose effective date is subsequent to the end of the current consolidated cumulative
second quarter(Resolution)

Class ofsharesBoard of Directors’Meeting of
October 28, 2021

Common stock

Total amount ofdividends(Thousands ofyen)

Dividend
per share(Yen)

Record date

Effective
date

Source ofdividends

166,887

5.00

September 30,
2021

December 2,
2021

Retained earnings

Note: “Total amount of dividends” includes dividends of 444 thousand yen on the Company’s shares which atrust account for employee stock ownership plan holds.
3. 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 held on July 29, 2021. As a result, the retained earnings and the treasury stock decreased by
918,310 thousand yen respectively in the current consolidated cumulative second quarter, and the retained- 17 -

earnings amounted to 32,938,543 thousand yen and the treasury stock to 299,919 thousand yen as of the endof the current consolidated second quarter.
II Current consolidated cumulative second quarter (From April 1, 2022 to September 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

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 aresult, the treasury stock increased 749,999 thousand yen in the current consolidated cumulative second quarter andamounted to 1,006,307 thousand yen as of the end of the current consolidated second quarter.

(Segment Information, etc.)[Segment Information]
I Previous consolidated cumulative second quarter (From April 1, 2021 to September 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
Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

Net sales
Net sales toexternal
15,342,174
3,368,208
1,244,599
1,571,438
21,526,420
218,291
21,744,712
customers
Inter-segment
－
－
－
－
－
415,842
415,842
sales or transfers
Total
15,342,174
3,368,208
1,244,599
1,571,438
21,526,420
634,134
22,160,555
Segment income or
1,839,473
362,226
138,434
366,016
2,706,150
95,6132,801,763
loss ()Note:
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.

- 18 -

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

2,706,150

Income in the category “Other”

95,613Elimination of inter-segment transactions

8,095

Unallocated corporate expenses (See Note)△736,930

Adjustment of inventories△24,214

Operating income shown on the quarterly
2,048,713
consolidated statements of income
Note: Unallocated corporate expenses are mostly general and administrative expenses that are not attributable toany of the reportable segments.

3. Information on impairment loss on non-current assets or goodwill, etc. with respect to each reportablesegment
No applicable matter.
II Current consolidated cumulative second quarter (From April 1, 2022 to September 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

15,384,440

4,010,805

1,254,676

2,181,406

22,831,329

162,684

22,994,013

－

－

－

－

－

434,860

434,860

15,384,440
4,010,805
1,254,676
2,181,406
22,831,329
597,544
23,428,874
Segment income
1,360,339
595,00752,547574,404
2,582,299
90,346
2,672,646
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

2,582,299

Income in the category “Other”

90,346

Elimination of inter-segment transactions

4,319

Unallocated corporate expenses (See Note)△748,729

Adjustment of inventories△66,417

Operating income shown on the quarterly
1,861,818
consolidated statements of income
Note: Unallocated corporate expenses are mostly general and administrative expenses
that are not attributable to any of the reportable segments.

- 19 -

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 its memorandum value and showed the relevant amount of its loss to extraordinary losses as
impairment losses.
In this regard, the amount of the relevant impairment losses shown in the current consolidated
cumulative second quarter is 11,813 thousand yen.

- 20 -

(For Revenue Recognition)
Information on the breakdown of revenue from contracts with customers
Previous consolidated cumulative second quarter (From April 1, 2021 to September 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
Net
sales
to
externalcustomers

Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

15,342,174

1,602,446

1,244,599

1,331,934

19,521,154

218,291

19,739,446－

1,765,762－

239,504

2,005,266－

2,005,266

15,342,174

3,368,208

1,244,599

1,571,438

21,526,420

218,291

21,744,712

－

－

－

－

－

－

－

15,342,174

3,368,208

1,244,599

1,571,438

21,526,420

218,291

21,744,712

Note: The column “Other” represents business operations that do not fall under any of the reportable segments andincludes the related goods sales, the logistics-related operations and other businesses, etc.
Current consolidated cumulative second quarter (From April 1, 2022 to September 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
Net
sales
to
externalcustomers

Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

15,384,440

1,858,192

1,254,676

1,259,039

19,756,348

162,684

19,919,033－

2,152,612－

922,367

3,074,980－

3,074,980

15,384,440

4,010,805

1,254,676

2,181,406

22,831,329

162,684

22,994,013

－

－

－

－

－

－

－

15,384,440

4,010,805

1,254,676

2,181,406

22,831,329

162,684

22,994,013

Note: The column “Other” represents business operations that do not fall under any of the reportable segments andincludes the related goods sales, the logistics-related operations and other businesses, etc.

- 21 -

(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 second quarter(From April 1, 2021
to September 30, 2021)(1) Net income per share

Current consolidated
cumulative second quarter(From April 1, 2022
to September 30, 2022)

52.38 yen

77.37yen

1,745,834

2,563,524

---

---

1,745,834

2,563,524

33,332,128

33,132,891

52.34yen

77.23yen------

25,25258,877(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 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 number ofshares of common stock during the period when net income (or loss) per share is calculated (24,446 shares for the previous
consolidated cumulative second quarter and 88,392 shares for the current consolidated cumulative second quarter).

(Significant subsequent events)
No applicable matter.

2. Other
No applicable matter.

- 22 -

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

- 23 -

Independent Auditors’ Quarterly Review Report
November 14, 2022
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
Ken 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 second quarter (From July 1, 2022 to September 30, 2022) and the consolidated
cumulative second quarter (From April 1, 2022 to September 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 ofincome, quarterly consolidated statements of comprehensive income, quarterly consolidated statements of cash flows
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 September 30, 2022 as well as the results of their operations andthe status of their cash flows in the consolidated cumulative second quarter ended September 30, 2022 in accordancewith 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 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.