QUARTERLY REPORT(The First Quarter of the 76th Term)
From April 1, 2023 to June 30, 2023

(TRANSLATION)

ARISAWA MFG. CO., LTD.

TABLE OF CONTENTS
Page Number
Cover Page
PART I.

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

I. General Conditions of Business ............................................................................................................ 1
1. Changes in Principal Management Indicators, etc. ........................................................................... 1
2. Description of Business..................................................................................................................... 1
II. Status of Business ................................................................................................................................ 2
1. Business Risks, etc. ........................................................................................................................... 2
2. Analyses of Consolidated Financial Position, Business Results and Cash Flows by the
Corporate Managers ...................................................................................................................... 2
3. Agreements with Managerial Implications, etc................................................................................. 3
III. Status of the Submitting Company ..................................................................................................... 4
1. Status of Shares, etc. ......................................................................................................................... 4(1) Total Number of Shares, etc. ......................................................................................................... 4(2) Status of Stock Acquisition Rights, etc. ........................................................................................ 4(3) Status of Exercise of Moving Strike Convertible Bonds, etc. ....................................................... 4(4) Changes in the Number of Shares Issued and Outstanding, Share Capital, etc. ............................ 4(5) Status of Major Shareholders......................................................................................................... 4(6) Status of Voting Rights.................................................................................................................. 5
2. Status of Directors and Officers ........................................................................................................ 5
IV. Status of Accounting .......................................................................................................................... 6
1. Quarterly Consolidated Financial Statements ................................................................................... 7(1) Quarterly Consolidated Balance Sheets......................................................................................... 7(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income................................................................................................................. 9[Quarterly Consolidated Statements of Income] ........................................................................... 9[Quarterly Consolidated Statements of Comprehensive Income] ............................................... 10
2. Other................................................................................................................................................ 15
PART II. INFORMATION ON GUARANTY COMPANIES, ETC. OF THE
SUBMITTING COMPANY ................................................................................................ 16[Independent Auditors’ Quarterly Review Report]

Cover Page
Document to be filed:

Quarterly Report

Statutory basis:

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

Filing to:

Director-General of the Kanto Local Finance Bureau

Date of filing:

August 10, 2023

Quarterly accounting period:

The First Quarter of the 76th Term (From April 1, 2023 to June 30, 2023)

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

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

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

76th term
consolidated cumulative
first quarter
From April 1, 2023
to June 30, 2023

From April 1, 2022
to March 31, 2023

11,321

9,494

42,722

1,177

△172

2,717

1,167

△201

2,856

1,479

205

2,578

46,17344,336

47,107(Millions of yen)

Ordinary profit (loss (△))
(Millions of yen)
Profit (loss (△)) attributableto owners of parent(Millions of yen)Comprehensive income(Millions of yen)
Net assets (Millions of yen)75th term

Total assets

68,88264,99567,659(Millions of yen)
Basic earnings (loss (△)) per
35.11
△6.10
86.46
share
(Yen)
Diluted earnings per share
－
35.08
86.24
(Yen)
Equity ratio
(%)
66.8
68.1
69.5
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. Diluted earnings per share in the 76th consolidated cumulative first quarter is not stated above due to net loss per share,though potential share exists.

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

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

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

(1) Financial Position and Operating Results1) Operating Results
As for the Japanese economy in the current consolidated cumulative first quarter, the economic activity
has been normalized due to COVID-19 infections under the Infectious Diseases Act being changed to beclassified in the Class 5. On the other hand, the future prospects remained uncertain due to the persistent highenergy and raw material prices caused by the prolonged situation in Ukraine, the rise in prices caused by
global inflation in addition to economic downturn in China.
Under such circumstances, the results of operations of our Group (the Company, its consolidated
subsidiaries and the companies accounted for under the equity method) for the current consolidated
cumulative first quarter showed net sales of 9,494 million yen (representing a 16.1% decrease as comparedwith the year-earlier quarter) due to a decrease in sales of electronic materials, which is the main businessfield of our group, caused by the significant impact from the decrease in demand in the Chinese market,
despite an increase in sales of industrial application structural materials. Due to soaring energy costs and raw
material prices in addition to the impact of decrease in sales, the results in terms of profit and loss are as
follows: an operating loss was 247 million yen (an operating profit of 705 million yen in the year-earlier
quarter); an ordinary loss was 172 million yen (an ordinary profit of 1,177 million yen in the year-earlier
quarter); and a loss attributable to owners of parent was 201 million yen (a profit attributable to owners ofparent of 1,167 million yen in the year-earlier quarter).
Business results with respect to each segment are as follows.
a. Electronic materials segment
In the electronic materials segment, net sales were 5,408 million yen, representing a 30.4% decrease ascompared with the year-earlier quarter, due to a decrease in sales of flexible printed circuit board materials(the amount of orders received decreased by 27.9%, and the production output decrease by 34.3%, ascompared with the year-earlier quarter on a non-consolidated basis of the Submitting Company) and glass
cloth for printed circuit board, while the segment profit or loss recorded a segment loss of 259 million yen(a segment profit of 715 million yen in the year-earlier quarter) caused by the impact from soaring energy
costs and raw material prices in addition to decrease in sales.
b. Industrial application structural materials segment
In the industrial application structural materials segment, net sales were 2,653 million yen, representing a
51.8% increase as compared with the year-earlier quarter, due to an increase in sales of water treatment FRP
pressure vessels and honey-comb panel for aircraft, while the segment profit or loss recorded a segment
profit of 239 million yen (a 193.9% increase as compared with the year-earlier quarter).
c. Electrical insulating materials segment
In the electrical insulating materials segment, net sales were 583 million yen, representing a 6.8% decrease
as compared with the year-earlier quarter, due to a decrease in infrastructure-related sales, while the segment
profit or loss recorded a segment profit of 15 million yen (a 61.5% decrease as compared with the yearearlier quarter).
d. Display materials segment
In the display materials segment, net sales were 765 million yen, representing a 30.0% decrease ascompared with the year-earlier quarter, due to a decrease in sales of 3D-related materials and polarization
control optical components, while the segment profit or loss recorded a segment profit of 125 million yen (a-2-52.2% decrease as compared with the year-earlier quarter).
e. Other (other businesses)
In other businesses, net sales were 83 million yen, representing a 5.5 % decrease as compared with theyear-earlier quarter, while the segment profit or loss recorded a segment profit of 49 million yen (a 4.1%
increase as compared with the year-earlier quarter).
2) Financial Position
Total assets as of the end of the current consolidated cumulative first quarter were 64,995 million yen, adecrease of 2,663 million yen compared with the end of the previous year. This was largely due to anincrease of 515 million yen in raw material and supplies, a decrease of 2,700 million yen in cash and deposits
and a decrease of 496 million yen in merchandise and finished goods, respectively.
Total liabilities as of the end of the current consolidated cumulative first quarter were 20,659 million yen,
an increase of 107 million yen compared with the end of the previous year. This was largely due to anincrease of 378 million yen in notes and accounts payable - trade, an increase of 252 million yen in provision
for bonuses, and a decrease of 384 million yen in income taxes payable, respectively.
Total net assets as of the end of the current consolidated cumulative first quarter were 44,336 million yen,a decrease of 2,770 million yen compared with the end of the previous year. This was largely due to adecrease of 3,187 million yen in retained earnings.

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

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

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

(5) Research and Development Activities
The Group’s total expenses for research and development activities incurred in the current consolidated
cumulative first quarter amounted to 464 million yen.
In this regard, there was no significant change in the status of research and development activities of ourGroup in the current consolidated cumulative first quarter.

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

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

Total number of shares authorized to be issued

Common stock

130,000,000

Total

130,000,000

2) Shares issued and outstanding
Number of shares issued
and outstanding as of theend of the first quarter(As of June 30, 2023)

Class

Number of shares issued
and outstanding as of thefiling date of this Quarterly
Report(As of August 10, 2023)

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

Remarks

Common stock

33,547,924

33,547,924

Tokyo Stock Exchange(Prime Market)

Number of sharesconstituting one
full unit: 100

Total

33,547,924

33,547,924

---

---

Note: 1. The number of shares issued through the exercise of stock acquisition rights in the period from August 1, 2023 to thefiling date of this Quarterly Report is not included in the column “Number of shares issued and outstanding as of thefiling date of this Quarterly Report”.
2. The Company disposed of 41,477 shares of treasury shares for restricted stock compensation as of July 28, 2023 upona resolution by the Board of Directors on June 29, 2023.
3. 105,967 shares out of shares issued and outstanding as of the filing date of this Quarterly Report are by contribution
in kind (108,995 thousand yen of monetary compensation claims) when treasury shares were disposed of for restricted
stock compensation.

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

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

(4) Changes in the Number of Shares Issued and Outstanding, Share Capital, etc.
PeriodFrom April 1, 2023 toJune 30, 2023
(See Note)

Share capital(Thousands of yen)

Number of shares issued andoutstanding

Legal capital surplus(Thousands of yen)

ChangeBalance

ChangeBalance

ChangeBalance

6,800

33,547,924

3,952

7,851,826

3,952

6,963,817

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

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

-4-(6) Status of Voting Rights
Since the “Status of Voting Rights” as of the end of the current first quarter cannot be stated herein as therelevant entries in the shareholder registry have yet to be confirmed, it is stated based on the shareholder
registry as of the most recent record date (March 31, 2023).
1) Shares issued and outstanding
As of June 30, 2023
Number of shares

Number of voting rights(Units)Remarks

Shares without voting rights

---

---

---

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

---

---

---

Shares with restricted voting rights (Other)

---

---

---

---

---

Category

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

Common stock

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

Common stock 33,079,900

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

Common stock

Number of shares issued and outstanding

372,100

330,799---

89,124------33,541,124

---

---

Total number of voting rights held by--330,799--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. 87,100 shares of the Company which a trust account for employee stock ownership plan holds (the number of voting
rights: 871 units) are included in the row “Shares with full voting rights (Other)”. 886 units of voting rights for shareswith full voting rights of such trust account are included in the column “Number of voting rights”.
3. 79 shares of treasury shares are included in the row “Shares constituting less than one full unit”.

2) Treasury Shares, etc.
As of June 30, 2023
Name and address of shareholder
Full name or corporate
nameAddress

Arisawa Mfg. Co., Ltd.

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

Number of shares held
Under own
name372,100

Under thenames ofothers---Total

372,100

Ratio of the number ofshares held to thenumber of sharesissued and outstanding
(%)
1.10

Total
--372,100--372,100
1.10
Note: 87,100 shares of the Company which a trust account for employee stock ownership plan holds are not included in thecolumn “Under own name”.

2. Status of Directors and Officers
No applicable matter.

-5-

IV. Status of Accounting
1.

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

2.

Certification of Audit
The Company received a quarterly review of its quarterly consolidated financial statements for the current
consolidated first quarter (from April 1, 2023 to June 30, 2023) and the current consolidated cumulative firstquarter (from April 1, 2023 to June 30, 2023) conducted by Ernst & Young ShinNihon LLC under the provisionsof Article 193-2, paragraph 1 of the Financial Instruments and Exchange Act.

-6-

1. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Thousands of yen)Previous consolidated
fiscal year
(As of March 31, 2023)

Current consolidated
first quarter(As of June 30, 2023)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsMerchandise and finished goods

20,545,580

17,844,727

13,182,106

13,266,855

5,525,035

5,029,018

Work in process

2,373,079

2,492,437

Raw materials and supplies

4,263,762

4,779,129

Other

1,541,170

906,541

Allowance for doubtful accounts△10,786△11,897

47,419,946

44,306,811

16,446,181

16,815,102

244,197

238,630

Investment securities

2,545,474

2,637,864

Other

1,049,896

1,043,189

Allowance for doubtful accounts△45,969△45,718

Total investments and other assets

3,549,401

3,635,335

20,239,780

20,689,069

67,659,726

64,995,880

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

Total non-current assets
Total assets-7-

(Thousands of yen)Previous consolidated
fiscal year
(As of March 31, 2023)

Current consolidated
first quarter(As of June 30, 2023)

Liabilities
Current liabilities
Notes and accounts payable-trade

5,213,263

5,591,394

Current portion of bonds payable

16,80019,200

Short-term borrowings

5,056,253

5,031,148

Current portion of long-term borrowings

1,843,441

1,653,223

Income taxes payable

658,615

274,463

Provision for product warranties

42,18439,337

Provision for bonuses

526,795

778,927

2,162

665

Other

2,917,188

3,278,077

Total current liabilities

16,276,705

16,666,438

2,723,471

2,539,545

Retirement benefit liability

700,883

663,551

Asset retirement obligations

97,11997,372

Provision for share awards

50,44953,513

Other703,383

638,679

4,275,306

3,992,662

20,552,012

20,659,100

Share capital

7,847,873

7,851,826

Capital surplus

3,198,618

3,202,571

Retained earnings

34,293,471

31,106,458

Treasury shares△512,975△510,821

Total shareholders’ equity

44,826,987

41,650,035

Provision for bonuses for directors (and other officers)

Non-current liabilities
Long-term borrowings

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

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

466,417556,610Deferred gains or losses on hedges△13,657△11,212

Foreign currency translation adjustment

1,904,093

2,211,297

Remeasurements of defined benefit plans△127,370△120,047

Total accumulated other comprehensive income

2,229,483

2,636,648

51,24350,095

47,107,714

44,336,779

67,659,726

64,995,880

Share acquisition rights
Total net assets
Total liabilities and net assets-8-(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income[Quarterly Consolidated Statements of Income][Consolidated cumulative first quarter](Thousands of yen)
Current consolidated
cumulative first quarter(From April 1, 2023
to June 30, 2023)

Previous consolidated
cumulative first quarter(From April 1, 2022
to June 30, 2022)
Net sales

11,321,623

9,494,400

Cost of sales

9,215,011

8,333,617

Gross profit

2,106,611

1,160,782

Selling, general and administrative expenses

1,400,776

1,408,554

705,835△247,772

41,93020,420

Dividend income

40,106

19,597

Foreign exchange gains

378,779

88,068Other

62,89430,801

Total non-operating income

523,710

158,888

30,554

43,387－28,55821,647

11,87752,202

83,823

1,177,344△172,707

461

685

506,977

28,101

1,479－

508,91728,786

Loss on retirement of non-current assets

781

24,695

Impairment losses

－

3,181

Operating profit (loss (△))
Non-operating income
Interest income

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary profit (loss (△))
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Other
Total extraordinary income
Extraordinary losses

Other

51,223－

Total extraordinary losses

52,00427,877

1,634,257△171,798

Income taxes

464,423

30,009Profit (loss (△))

1,169,834△201,807

2,465－

1,167,368△201,807

Profit (loss (△)) before income taxes

Profit attributable to non-controlling interests
Profit (loss (△)) attributable to owners of parent-9-[Quarterly Consolidated Statements of Comprehensive Income][Consolidated cumulative first quarter]
Previous consolidated
cumulative first quarter(From April 1, 2022
to June 30, 2022)
Profit (loss (△))

(Thousands of yen)
Current consolidated
cumulative first quarter(From April 1, 2023
to June 30, 2023)

1,169,834△201,807△92,785

90,192Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income

2,633

2,445

391,234

308,806

1,442

7,323

6,762

△1,602309,287

407,164

1,479,121

205,357

1,498,263

205,357△19,142－Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 10 -

[Notes](Particular accounting treatments applied in preparation of quarterly consolidated financial statements)<Calculation of tax expenses>
Tax expenses are calculated by multiplying the quarterly profit before income taxes by an estimated effective
tax rate. Such effective tax rate is reasonably estimated after applying tax effect accounting to the profit before
income taxes for the consolidated fiscal year including the current consolidated 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) for the previous
and current consolidated cumulative first quarters are as follows.
Previous consolidated
cumulative first quarter(From April 1, 2022
to June 30, 2022)
Depreciation(Thousands of yen)
Current consolidated
cumulative first quarter(From April 1, 2023
to June 30, 2023)

526,802539,545(Notes Related to Shareholders’ Equity, etc.)
I Previous consolidated cumulative first quarter (From April 1, 2022 to June 30, 2022)
1. Dividends paid
(Resolution)

Class ofsharesOrdinary General
Meeting of
Shareholders ofJune 28, 2022

Common stock

Total amount ofdividends(Thousands ofyen)

Dividend
per share(Yen)

3,006,166

90.00

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

II Current consolidated cumulative first quarter (From April 1, 2023 to June 30, 2023)
1. Dividends paid
(Resolution)

Class ofsharesOrdinary General
Meeting of
Shareholders ofJune 29, 2023

Common stock

Total amount ofdividends(Thousands ofyen)

Dividend
per share(Yen)

2,985,205

90.00

Record date

Effective
date

Source ofdividends

March 31, 2023

June 30, 2023

Retained earnings

Note: “Total amount of dividends” includes dividends of 7,839 thousand yen on the Company’s shares which atrust account for employee stock ownership plan holds.

- 11 -

(Segment Information, etc.)[Segment Information]
I Previous consolidated cumulative first quarter (From April 1, 2022 to June 30, 2022)
1. Information on the amount of net sales and profit or loss with respect to each reportable segment(Thousands of yen)
Other
Total
(See Note)

Reportable segment

Net sales
Sales to externalcustomers
Inter-segment
sales or transfers
Net sales

Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

7,765,809

1,748,413

625,759

1,093,658

11,233,642

87,981

11,321,623

－

－

－

－

－

219,208219,208

7,765,809

1,748,413

625,759

1,093,658

11,233,642

307,189

11,540,831

Segment profit
Note:715,289
81,65540,254
262,934
1,100,132
47,304
1,147,437
The column “Other” represents business operations that do not fall under any of the reportable segments and includes
the related goods sales, the logistics-related operations and other businesses, etc.

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

1,100,132

Profit in the category “Other”

47,304

Elimination of inter-segment transactions

2,411

Unallocated corporate expenses (See Note)△382,296

Adjustment of inventories△61,716

Operating profit shown on the quarterly
705,835
consolidated statements of income
Note: Unallocated corporate expenses are mostly general and administrative expenses
that are not attributable to any of the reportable segments.

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

- 12 -

II Current consolidated cumulative first quarter (From April 1, 2023 to June 30, 2023)
1. Information on the amount of net sales and profit or loss with respect to each reportable segment(Thousands of yen)
Other
Total
(See Note)

Reportable segment

Sales
Sales toexternalcustomers
Inter-segment
sales ortransfers
Net sales

Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

5,408,544

2,653,900

583,178765,632

9,411,257

83,1439,494,400

－

－

－

－

－

209,705

209,705

5,408,544
2,653,900
583,178765,632
9,411,257
292,848
9,704,105
Segment profit△259,867
239,947
15,494
125,596
121,171
49,224
170,395(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 profit or loss of reportable segments and the pertinent
amount shown on the quarterly consolidated statements of income as well as the key components of suchdifference (Matters concerning difference adjustment)(Thousands of yen)
ProfitAmountTotal of reportable segments

121,171

Profit in the category “Other”

49,224

Elimination of inter-segment transactions

3,544

Unallocated corporate expenses (See Note)△412,487

Adjustment of inventories△9,225
Operating loss (△) shown on the quarterly△247,772
consolidated statements of income
Note: Unallocated corporate expenses are mostly general and administrative expenses
that are not attributable to any of the reportable segments.

3. Information on impairment loss on non-current assets or goodwill, etc. with respect to each reportablesegment(Significant impairment losses on non-current assets)
In the industrial application structural materials segment, with respect to the assets in which investments
could not be expected to recover due to a downturn in profitability, the Company devalued their carrying
amount to memorandum value and showed the relevant amount of loss to extraordinary losses as
impairment losses.
In this regard, the amount of the relevant impairment losses shown in the current consolidated
cumulative first quarter is 3,181 thousand yen.

- 13 -

(For Revenue Recognition)
Information on the breakdown of revenue from contracts with customers
Previous consolidated cumulative first quarter (From April 1, 2022 to June 30, 2022)(Thousands of yen)
Other
Total
(See Note)

Reportable segment

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

Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

7,765,809

700,961

625,759

694,816

9,787,347

87,981

9,875,328－

1,047,452－

398,841

1,446,294－

1,446,294

7,765,809

1,748,413

625,759

1,093,658

11,233,642

87,981

11,321,623

－
－
－
－
－
－
－
Net sales toexternal
7,765,809
1,748,413
625,759
1,093,658
11,233,642
87,981
11,321,623
customers
Note: The column “Other” represents business operations that do not fall under any of the reportable segments and includes therelated goods sales, the logistics-related operations and other businesses, etc.

Current consolidated cumulative first quarter (From April 1, 2023 to June 30, 2023)(Thousands of yen)
Other
Total
(See Note)

Reportable segment

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

Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

5,408,544

1,320,892

583,178649,777

7,962,393

83,143

8,045,536－

1,333,008－

115,855

1,448,863－

1,448,863

5,408,544

2,653,900

583,178765,632

9,411,257

83,1439,494,400

－
－
－
－
－
－
－
Net sales toexternal
5,408,544
2,653,900
583,178765,632
9,411,257
83,1439,494,400
customers
Note: The column “Other” represents business operations that do not fall under any of the reportable segments and includes therelated goods sales, the logistics-related operations and other businesses, etc.

- 14 -

(Per Share Information)
The amounts of basic earnings (loss) per share and diluted earnings per share with their respective bases ofcalculation are as follows.
Previous consolidated
cumulative first quarter(From April 1, 2022
to June 30, 2022)(1) Basic earnings (loss (△)) per share

Current consolidated
cumulative first quarter(From April 1, 2023
to June 30, 2023)

35.11 yen

△6.10 yen

1,167,368△201,807－－

1,167,368△201,807

33,245,408

33,087,297

35.08 yen－－－

33,415－(Basis of calculation)
Profit (loss (△)) attributable to owners ofparent (Thousands of yen)Amount not attributable to common
stockholders (Thousands of yen)
Profit (loss (△)) attributable to owners ofparent pertaining to common stock(Thousands of yen)
Average number of shares of common stockduring the period(2) Diluted earnings per share(Basis of calculation)
Adjustment of profit attributable to ownersof parent (Thousands of yen)
Increase in the number of shares of common
stockOutline of dilutive shares that were not includedin the calculation of diluted earnings per share
due to a lack of dilutive effect and also
underwent a significant change after the end of
the previous consolidated fiscal year－－

Note: 1. The Company’s shares which are shown as treasury shares in shareholders’ equity and which a trust account for employee
stock ownership plan holds are included in the number of treasury shares excluded in the calculation of the average numberof shares of common stock during the period when basic earnings (or loss) per share is calculated (88,575 shares for theprevious consolidated cumulative first quarter and 85,430 shares for the current consolidated cumulative first quarter).
2. Diluted net income per share in the current term consolidated cumulative first quarter is not stated above due to net loss
per share, though potential share exists.

(Significant Subsequent Events)
No applicable matter.

2. Other
The Company passed a resolution as below on the current interim dividends at the Board of Directors’ Meeting held on August
3, 2023.
(1) Total amount of interim dividends (planned)

664 million yen(2) Interim dividends per share

20.00 yen(3) Effective date and payment commencement date

December 4, 2023

Note: 1. Payment will be made to the shareholders listed or recorded on the shareholder registry as of September 30, 2023.
2. Total amount of the interim dividends are an estimated amount calculated based on the number of shares issued andoutstanding (excluding treasury stock) as of July 31, 2023.
3. Total amount of the interim dividends includes dividends of 1 million yen (planned) on the Company’s shares which
a trust account for employee stock ownership plan holds.

- 15 -

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

- 16 -

Independent Auditors’ Quarterly Review ReportAugust 10, 2023
To the Board of Directors of Arisawa Mfg. Co., Ltd.

Ernst & Young ShinNihon LLC
Niigata office

Yoshiyuki Sakuma[Seal]

Designated Limited Liability Partner and Engagement Partner,

Certified Public Accountant
Ken Takahashi[Seal]

Designated Limited Liability Partner and Engagement Partner,

Certified Public Accountant
Conclusion of Auditors
We have conducted, under the provisions of Article 193-2, paragraph 1 of the Financial Instruments and ExchangeAct, a quarterly review of the quarterly consolidated financial statements of Arisawa Mfg. Co., Ltd. listed in the “Statusof Accounting” for the consolidated first quarter (from April 1, 2023 to June 30, 2023) and the consolidated cumulative
first quarter (from April 1, 2023 to June 30, 2023) of the consolidated fiscal year from April 1, 2023 to March 31, 2024,
consisting of the quarterly consolidated balance sheets, quarterly consolidated statements of income, quarterly
consolidated statements of comprehensive income and notes.
In our quarterly review, no matter has come to our attention that causes us to believe that the above quarterly
consolidated financial statements do not fairly present, in any material respect, the financial conditions of Arisawa
Mfg. Co., Ltd. and its consolidated subsidiaries as of June 30, 2023 and the results of their operations in the
consolidated cumulative first quarter ended June 30, 2023 in accordance with the standards for preparation of quarterly
consolidated financial statements generally accepted in Japan.
Basis for the Conclusion of Auditors
We conducted our quarterly review in accordance with the quarterly review standards generally accepted in Japan.
Our responsibility in the quarterly review standards is stated in “The Responsibility of Auditors in the Quarterly
Review Report of the Quarterly Consolidated Financial Statements.” We are independent of the Company and its
consolidated subsidiaries and fulfill other ethical responsibilities as an auditor in accordance with the code ofprofessional ethics in Japan. We believe that the evidence we have obtained provides a basis for our conclusion.
Responsibility of Management and Corporate Auditors and Board of Corporate Auditors for the Quarterly
Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the quarterly consolidated financial
statements in accordance with the standards for preparation of quarterly consolidated financial statements generally
accepted in Japan. This includes improvement and operation of such internal control as the management deems
necessary for the preparation and fair presentation of quarterly consolidated financial statements free from material
misstatement, whether due to fraud or error.
In preparing the quarterly consolidated financial statements, management is responsible for assessing whether it isappropriate to prepare the quarterly consolidated financial statements based on the going concern assumption anddisclosing the items regarding the going concern assumption in accordance with the standards for preparation ofquarterly consolidated financial statements generally accepted in Japan if such items are required to be disclosed.
Responsibility of Corporate Auditors and Board of Corporate Auditors is to monitor the execution of Directors’
duties in the improvement and operation of the financial reporting process.
The Responsibility of Auditors in the Quarterly Review Report of the Quarterly Consolidated Financial Statements.
Responsibility of auditors is to express a conclusion on the quarterly consolidated financial statements from an
independent standpoint in the quarterly review report based on our quarterly review.
Auditors make professional judgements and conduct the followings with an attitude of professional skepticism
through a quarterly review process in accordance with the quarterly review standards generally accepted in Japan.

・We principally make inquiries to the management, the persons responsible for financial and accounting matters, etc. applying
analytical procedures and conducting other quarterly review procedures. The quarterly review procedures are less exhaustive
than the procedures for annual financial statement audits conducted in accordance with the audit standards generally acceptedin Japan.
・If we deem that there is a material uncertainty regarding events or conditions that may cast significant doubt matters on thegoing concern assumption, we conclude whether the quarterly consolidated financial statements are found to contain any
matters that would lead one to believe that those are not fairly presented in accordance with the standards for preparation ofquarterly consolidated financial statements generally accepted in Japan based on the evidence we obtain. Moreover, if amaterial uncertainty regarding the going concern assumption exists, it is required to promote awareness to the notes in thequarterly consolidated financial statements in the quarterly review report, or if the notes regarding a material uncertainty in thequarterly consolidated financial statements are inappropriate, it is required to express a qualified conclusion or a negative
conclusion to the quarterly consolidated financial statements. Conclusion by the auditors is based on the audit evidence
obtained by the day of the quarterly review report, but a company may not be able to exist as the going concern depending on
future events or conditions.
・We evaluate not only whether the presentation and notes of the quarterly consolidated financial statements are found to containany matters that would lead one to believe that those are not in accordance with the standards for preparation of quarterly
consolidated financial statements generally accepted in Japan but also whether the presentation, structure, and contents of thequarterly consolidated financial statements including related notes as well as the quarterly consolidated financial statements
are found to contain any matters that would lead one to believe that those do not fairly present underlying transactions andaccounting events.
・We obtain evidence regarding the financial information of the Company and its consolidated subsidiaries to express an opinion
about the quarterly consolidated financial statements. The auditors are responsible for instruction, supervision, and executionof quarterly review regarding the quarterly consolidated financial statements. The auditors assume responsibility for an audit
opinion all by themselves.

The auditors make reports to Corporate Auditors and Board of Corporate Auditors on the scope of a planned
quarterly review and its timing of conduct, and material quarterly review findings.
The auditors make reports to Corporate Auditors and Board of Corporate Auditors on that they complied with thecode of professional ethics on independence in Japan, and matters that are reasonably believed to have an impact on
the auditors’ independence and the details of countermeasures if those are applied to eliminate obstacles or ofsafeguards if those are applied to reduce obstacles to an acceptable level.
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.