QUARTERLY REPORT(The Third Quarter of the 74th Term)
From October 1, 2021 to December 31, 2021

(TRANSLATION)

ARISAWA MFG. CO., LTD.

TABLE OF CONTENTS
Page Number
Cover Page
PART I.

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

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

Cover Page
Document to be filed:

Quarterly Report

Statutory basis:

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

Filing to:

Director-General of the Kanto Local Finance Bureau

Date of filing:

February 14, 2022

Quarterly accounting period:

The Third Quarter of the 74th Term (From October 1, 2021 to December 31,
2021)

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, Accounting 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, Accounting Department

Places where copies of this Quarterly Report are

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

73rd term
consolidated cumulative
third quarter
From April 1, 2020
to December 31, 2020

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

From April 1, 2020
to March 31, 2021

34,606

32,663

46,439

2,290

3,155

3,578

1,380

2,971

2,160

2,146

2,359

3,808

50,063

46,84347,44469,553

68,66867,257

41.50

89.18

64.94

41.43

89.13

64.84

67.8

67.9

68.8

73rd term
consolidated
third quarter
From October 1, 2020
to December 31, 2020

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

(Millions of yen)

Ordinary income(Millions of yen)
Profit attributable to ownersof the parent(Millions of yen)Comprehensive income(Millions of yen)
Net assets (Millions of yen)
Total assets(Millions of yen)
Net income per share (Yen)
Fully diluted net income per
share
(Yen)
Equity ratio
(%)

Term
Accounting period

73rd term

Net income per share (Yen)
15.83
36.81
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. “Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan Statement No.29, March 31,2020), etc. have been applied from the beginning of the current consolidated fiscal first quarter. Principal Management
Indicators, etc. for the current consolidated cumulative third quarter and the current consolidated third quarter are shown
after application of the said Accounting Standards, etc.

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

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

2. Analyses of Consolidated Financial Position, Business Results and Cash Flows by the Corporate
Managers
Matters stated concerning the future in the text are based on judgments made as of the end of the current
consolidated third quarter.
“Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan Statement No.29,
March 31, 2020), etc. have been applied from the current consolidated fiscal first quarter.

(1) Financial Position and Operating Results1) Operating Results
The Japanese economy in the current consolidated cumulative third quarter remained uncertain andunpredictable due to the emergence of new coronavirus variants, although it showed signs that the severe
situation may ease as a result of the progress made in the number of vaccinations in response to COVID-19
infections.
Under such circumstances, the results of operations of our group (the Company, its consolidated
subsidiaries and the companies accounted for under the equity method) for the current consolidated
cumulative third quarter showed net sales of 32,663 million yen (representing a 5.6% decrease as comparedwith the year-earlier quarter), an operating income of 2,803 million yen (representing an 26.1% increase ascompared with the year-earlier quarter), an ordinary income of 3,155 million yen (representing a 37.8%
increase as compared with the year-earlier quarter) and a profit attributable to owners of the parent of 2,971
million yen (representing a 115.3% increase as compared with the year-earlier quarter).
Along with the application of Accounting Standard for Revenue Recognition, compared to a conventional
method, sales decreased by 2,818,100 thousand yen and operating income, ordinary income and income
before income taxes decreased by 11,331 thousand yen respectively. For details, refer to “IV. Status of
Accounting - 1. Quarterly Consolidated Financial Statements - [Notes] - (Changes in Accounting Policies)”.
Business results with respect to each segment are as follows.
Note that the method for measuring the income or loss of business segments was changed in the current
consolidated cumulative third quarter. For details, refer to “IV. Status of Accounting - 1. Quarterly
Consolidated Financial Statements - [Notes] - (Segment Information, etc.)”.
a. Electronic materials segment
In the electronic materials segment, net sales were 22,831 million yen (a 3.9% decrease as compared withthe year-earlier quarter) due to a decrease in sales of our mainstay product, i.e. materials for flexible printed
circuit boards caused by a short supply of parts (the amount of orders received decreased by 6.7%, and the
production output increased by 1.9%, as compared with the year-earlier quarter on a non-consolidated basisof the Submitting Company), while the segment income was 2,373 million yen (a 8.0% increase as comparedwith the year-earlier quarter) due to an increase in sales.
b. Industrial application structural materials segment
In the industrial application structural materials segment, net sales were 5,210 million yen (a 19.2%
decrease as compared with the year-earlier quarter) due to a decrease in sales of materials for aircraft, while
the segment income was 659 million yen (a 3.1% increase as compared with the year-earlier quarter) due toa change in the composition of products.
c. Electrical insulating materials segment
In the electrical insulating materials segment, net sales were 1,949 million yen (a 12.5% increase ascompared with the year-earlier quarter) due to an increase in sales of insulating materials for heavy electricalmachinery, while the segment income was 242 million yen (a 99.5% increase as compared with the yearearlier quarter).

-2-

d. Display materials segment
In the display materials segment, net sales were 2,358 million yen (a 15.5% increase as compared withthe year-earlier quarter) due to an increase in sales of polarization control optical components by
ColorLink Japan Ltd., etc., while the segment income was 629 million yen (a 411.6% increase ascompared with the year-earlier quarter) due to an increase in sales of 3D materials and an improvement in
performance of ColorLink Japan Ltd.
e. Other (other businesses)
In other businesses, net sales were 314 million yen, representing a 49.9% decrease as compared with theyear-earlier quarter, while the segment income or loss recorded a segment income of 132 million yen (a24.4% decrease as compared with the year-earlier quarter).
It should also be noted that the amounts of net sales, orders received, etc. stated in this section do notinclude consumption tax, etc.
2) Financial Position
Total assets as of the end of the current consolidated cumulative third quarter were 68,668 million yen,
an increase of 1,411 million yen compared with the end of the previous year. This was largely due to anincrease of 1,305 million yen in raw materials and supplies.
Total liabilities as of the end of the current consolidated cumulative third quarter were 21,825 million
yen, an increase of 2,012 million yen compared with the end of the previous year. This was due largely to
an increase of 1,838 million yen in short-term loans payable (including current portion of long-term loans
payable).
Total net assets as of the end of the current consolidated cumulative third quarter were 46,843 million yen,a decrease of 601 million yen compared with the end of the previous year. This was due largely to a decreaseof 1,399 million yen in capital surplus.

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

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

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

(5) Research and Development Activities
The Group’s total expenses for research and development activities incurred in the current consolidated
cumulative third quarter amounted to 1,421 million yen.
In this regard, there was no significant change in the status of research and development activities of ourGroup in the current consolidated cumulative third quarter.

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

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

Total number of shares authorized to be issued

Common stock

130,000,000

Total

130,000,000

2) Shares issued and outstanding
Number of shares issued
and outstanding as of theend of the third quarter(As of December 31, 2021

Class

Number of shares issued
and outstanding as of thefiling date of this Quarterly
Report(As of February 14, 2022)

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

Remarks

Common stock

33,590,324

33,590,324

Tokyo Stock Exchange(First Section)

Number of sharesconstituting one
full unit: 100

Total

33,590,324

33,590,324

---

---

Note: 1 The number of shares issued through the exercise of stock acquisition rights in the period from February 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 23,435 shares of treasury stock for restricted stock compensation as of July 21, 2021
upon a resolution by the Board of Directors on June 25, 2021.3 23,435 shares out of shares issued and outstanding
as of the filing date of this Quarterly Report are by contribution in kind (20,997 thousand yen of monetarycompensation 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.
PeriodCapital stock(Thousands of yen)

Number of shares issued andoutstanding

Legal capital surplus(Thousands of yen)

ChangeBalance

ChangeBalance

ChangeBalance－

33,590,324－

7,629,915－

6,741,906

From October 1, 2021 to
December 31, 2021

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

(6) Status of Voting Rights
Since the “Status of Voting Rights” as of the end of the current third quarter cannot be stated herein as therelevant entries in the shareholder registry have yet to be confirmed, it is stated based on the shareholder
registry as of the most recent record date (September 30, 2021).

-4-1) Shares issued and outstanding
As of December 31, 2021
Number of shares

Number of voting rights(Units)Remarks

Shares without voting rights

---

---

---

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

---

---

---

Shares with restricted voting rights (Other)

---

---

---

---

---

Category

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

Common stock

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

Common stock 33,306,000

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

Common stock

Number of shares issued and outstanding

212,900

333,060---

71,424------33,590,324

---

---

Total number of voting rights held by--333,060--shareholders
Note: 1. 88,900 shares of the Company which a trust account for employee stock ownership plan holds (the number of voting
rights: 889 units) and 500 shares held in the name of Japan Securities Depository Center, Inc. (the number of voting
rights: 5 units) are included in the row “Shares with full voting rights (Other)”.
2. 9 shares of treasury stock are included in the row “Shares constituting less than one full unit”.

2) Treasury Stock, etc.
As of December 31, 2021
Name and address of shareholder
Full name or corporate
nameAddress

Arisawa Mfg. Co., Ltd.

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

Number of shares held
Under own
name212,900

Under thenames ofothers---Total

212,900

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

Total
--212,900--212,900
0.63
Note: 88,900 shares of the Company which a trust account for employee stock ownership plan holds are not included in thecolumn “Under own name”.

2. Status of Directors and Officers
No applicable matter.

-5-

IV. Status of Accounting
1.

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

2.

Certification of Audit
The Company received a quarterly review of its quarterly consolidated financial statements for the current
consolidated third quarter (From October 1, 2021 to December 31, 2021) and the current consolidated cumulative
third quarter (From April 1, 2021 to December 31, 2021) conducted by Ernst & Young ShinNihon LLC under theprovisions of Article 193-2, paragraph 1 of the Financial Instruments and Exchange Act.

-6-

1. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
Current consolidated
third quarter(As of December 31, 2021)

Previous consolidated
fiscal year
(As of March 31, 2021)
AssetsCurrent assets
Cash and deposits

13,215,508

Notes and accounts receivable-trade

16,766,218

*

－

－

*

17,211,833

Notes, accounts receivable-trade and contract assets

13,461,083

Securities

1,242,430

1,889,441

Merchandise and finished goods

3,896,377

4,699,638

Work in process

2,175,632

1,954,714

Raw materials and supplies

3,026,247

4,331,690

Income taxes receivable

1,415,974

－

Other

778,645

1,300,061

Allowance for doubtful accounts△161,830△11,756

Total current assets

42,355,204

44,836,707

13,217,395

13,634,962

244,870

290,022

10,666,038

9,073,810

Other788,832

912,729

Allowance for doubtful accounts△14,923△79,674

Total investments and other assets

11,439,946

9,906,865

Total non-current assets

24,902,213

23,831,850

Total assets

67,257,417

68,668,558

Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Investment securities-7-

(Thousands of yen)
Current consolidated
third quarter(As of December 31, 2021)

Previous consolidated
fiscal year
(As of March 31, 2021)
Liabilities
Current liabilities
Notes and accounts payable-trade

6,657,426*

6,381,266

Current portion of bonds

36,80026,800

Short-term loans payable

3,606,087

4,818,853

Current portion of long-term loans payable

182,724

808,461

Income taxes payable

277,821957,993

Provision for bonuses

535,756

266,456

3,870

3,537

Provision for directors' bonuses
Other2,817,772*

Total current liabilities

14,118,258

16,626,524

54,40027,6003,761,507

3,504,412－

24,645Net defined benefit liability

607,032

567,453

Asset retirement obligations

3,363,155

Non-current liabilities
Bonds payable
Long-term loans payable
Provision for share-based remuneration

89,466

91,702

Other

1,181,934

983,106

Total non-current liabilities

5,694,340

5,198,920

19,812,598

21,825,445

Capital stock

7,623,638

7,629,915

Capital surplus

4,403,396

3,003,598

Retained earnings

33,374,092

33,996,990

Treasury stock△1,159,364△299,684

Total shareholders’ equity

44,241,763

44,330,820

1,569,049

1,266,027

Deferred gains or losses on hedges△8,237△3,902Foreign currency translation adjustment

486,2421,024,006

Remeasurements of defined benefit plans△3,9597,314

2,043,095

2,293,445

Subscription rights to shares

193,962

192,131

Non-controlling interests

965,997

26,71547,444,819

46,843,113

67,257,417

68,668,558

Total liabilities
Net assets
Shareholders’ equity

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

Total accumulated other comprehensive income

Total net assets
Total liabilities and net assets-8-(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income[Quarterly Consolidated Statements of Income][Consolidated cumulative third quarter](Thousands of yen)
Current consolidated
cumulative third quarter(From April 1, 2021
to December 31, 2021)

Previous consolidated
cumulative third quarter(From April 1, 2020
to December 31, 2020)
Net sales

34,606,706

32,663,855

Cost of sales

28,818,193

25,842,854

Gross profit

5,788,512

6,821,001

Selling, general and administrative expenses

3,564,820

4,017,995

Operating income

2,223,692

2,803,005

218,168

142,089

Non-operating income
Interest income
Dividends income

87,69473,901

Other

253,781376,757

Total non-operating income

559,645592,748

Non-operating expenses
Interest expenses

82,09588,509Rent expenses

66,33262,424Foreign exchange losses

192,813－

Other

151,744

89,161

Total non-operating expenses

492,985

240,0942,290,351

3,155,659

515

7,471

Gain on sales of securities

320,704

737,947

Other

26,62845,919Total extraordinary income

347,848

791,337

12,01828,500Ordinary income
Extraordinary income
Gain on sales of non-current assets

Extraordinary losses
Loss on retirement of non-current assets
Provision for share-based remuneration
Loss on sales of investment securities
Other

－

14,098313,624

－

－

4,053

Total extraordinary losses

325,642

46,653

Income before income taxes

2,312,556

3,900,344

655,999

839,254

1,656,557

3,061,089

276,254

89,9201,380,302

2,971,168

Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of the parent-9-[Quarterly Consolidated Statements of Comprehensive Income][Consolidated cumulative third quarter](Thousands of yen)
Current consolidated
cumulative third quarter(From April 1, 2021
to December 31, 2021)

Previous consolidated
cumulative third quarter(From April 1, 2020
to December 31, 2020)
Profit1,656,557

3,061,089

611,662△302,971

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

2,865

4,334

△179,795△430,880

54,707

11,273

139

16,643

489,579△701,600

Comprehensive income

2,146,137

2,359,489(Breakdown)Comprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests

1,967,198

3,221,518

178,938△862,029- 10 -

[Notes](Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition, etc.)“Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan Statement No.29,
March 31, 2020; hereinafter referred to as the “Revenue Recognition Accounting Standard”), etc. have been
applied from the beginning of the current consolidated fiscal first quarter and the Company recognizes revenue
at the amount expected to be received in exchange for goods or services when control of the promised goods orservices is transferred to customers.
As a result, for transactions where the role of the Company falls under an agent of sales of products tocustomers, the total amount of considerations received from customers have previously been recognized asrevenue, but the method has been changed to recognize revenue at the net amount, subtracting the amount paid
to third parties from the total amount of considerations. In addition, with regard to buy-sell transactions in which
the Company provides parts to suppliers with compensation and bears a repurchase obligation, the amountequivalent to the ending inventory of the provided parts retained by suppliers are recognized as liabilities
pertaining to buy-sell transactions. Furthermore, with regard to buy-sell transactions in which the Company
purchases parts from suppliers and bears a sell-back obligation, sales and cost of goods sold have previously
been recorded at the time of sell-back to suppliers of parts, but the method has been changed to recognize only
the net amount equivalent to processing cost as revenue. Moreover, for sales to some customers, in connection
with transfer of control over assets to customers over time, the method of recognizing revenue over time
according to the progress of manufacture was adopted.
For the application of the Revenue Recognition Accounting Standard, etc., the Company complies with thetransitional treatment set forth in the proviso of paragraph 84 of the Revenue Recognition Accounting Standard.
The cumulative effects resulting from retroactive application of the new accounting policy before the beginningof the current consolidated fiscal first quarter were added to or subtracted from retained earnings at the
beginning of the current consolidated fiscal first quarter and the new accounting policy has been applied fromthe beginning balance; provided, however, that by applying the method set forth in paragraph 86 of the Revenue
Recognition Accounting Standard, the new accounting policy has not been retroactively applied to contracts forwhich almost all revenue has been recognized in accordance with the previous treatment before the beginningof the current consolidated fiscal first quarter. With respect to contract amendments which were made before
the beginning of the current consolidated fiscal first quarter, accounting treatment was made under the terms ofcontract after all contract amendments were reflected by applying the method set forth in paragraph 86, item
(1) of the Revenue Recognition Accounting Standard and the cumulative effects were added to or subtracted
from retained earnings at the beginning of the current consolidated fiscal first quarter.
As a result, in the current consolidated cumulative third quarter, sales decreased by 2,818,100 thousand yen,cost of sales decreased by 2,806,768 thousand yen, and operating income, ordinary income and income before
income taxes decreased by 11,331 thousand yen respectively. The balance of retained earnings at the beginningof the current quarter increased by 39,939 thousand yen.
As the Revenue Recognition Accounting Standard, etc. have been applied, “notes and accounts receivable”
indicated in “current assets” in the consolidated balance sheet for the previous consolidated fiscal year ispresented in “notes receivable, accounts receivable and contract assets” from the current consolidated fiscal
first quarter. In accordance with the transitional treatment set forth in paragraph 89-2 of the Revenue
Recognition Accounting Standards, reclassification has not been made by the new presentation method
regarding the previous consolidated fiscal year. In addition, in accordance with the transitional treatment set
forth in paragraph 28-15 of the “Accounting Standard for Quarterly Financial Reporting” (AccountingStandards Board of Japan Statement No. 12, March 31, 2020), the information related to the breakdown of therevenue from contracts with customers for the previous consolidated cumulative third quarter was not stated.
(Application of Accounting Standard for Fair Value Measurement, etc.)“Accounting Standard for Fair Value Measurement” (Accounting Standards Board of Japan Statement No.
30, July 4, 2019; hereinafter referred to as the “Fair Value Measurement Standard”), etc. have been applied
from the beginning of the current consolidated fiscal first quarter. In accordance with the transitional treatment
set forth in paragraph 19 of the Fair Value Measurement Standard and paragraph 44-2 of the “AccountingStandard for Financial Instruments” (Accounting Standards Board of Japan Statement No. 10, July 4, 2019),
the new accounting policy set forth in the Fair Value Measurement Standard, etc. was applied prospectively.
There is no impact due to this application.

- 11 -

(Particular accounting treatments applied in preparation of quarterly consolidated financial statements)<Calculation of tax expenses>
Tax expenses are calculated by multiplying the quarterly income before income taxes by an estimatedeffective tax rate. Such effective tax rate is reasonably estimated after applying tax effect accounting to theincome before income taxes for the consolidated fiscal year including the current consolidated third quarter.
(Additional information)< Accounting estimates >There was no material change in assumptions and accounting estimates including the timing of thecontainment of the new corona virus infection, etc. stated in the Financial Report for the previous business year.
(Notes Related to Quarterly Consolidated Balance Sheets)* Notes, etc. maturing at the end of the consolidated third quarter
For accounting treatment of notes, electronically recorded monetary claims and electronically recorded
obligations maturing at the end of the consolidated third quarter, settlement is made as of the clearing date ofeach note or as of the settlement date of each electronically recorded monetary claim and electronically recorded
obligation, as the case may be. As the end of the current consolidated third quarter falls on a bank holiday, thefollowing notes, electronically recorded monetary claims and electronically recorded obligations maturing at
the end of the consolidated third quarter are included in their respective balances as of the end of theconsolidated third quarter.
Previous consolidated fiscal year
(As of March 31, 2021)
Notes, accounts receivable-trade and contract assets
Notes and accounts payable-trade
Current liabilities and others (Notes payable - nonoperating, Electronically recorded obligations-nonoperating)- 12 -(Thousands of yen)
Current consolidated third quarter(As of December 31, 2021)－－

38,310152,336－

10,008

(Notes Related to Quarterly Consolidated Statements of Cash Flows)
Quarterly consolidated statements of cash flows for the current consolidated cumulative third quarter were notprepared. In this regard, the amounts of depreciation (including amortization of intangible assets) for the previous
and current consolidated cumulative third quarters are as follows.
Previous consolidated
cumulative third quarter(From April 1, 2020
to December 31, 2020)
Depreciation(Thousands of yen)
Current consolidated
cumulative third quarter(From April 1, 2021
to December 31, 2021)

1,537,612

1,599,527(Notes Related to Shareholders’ Equity, etc.)
I Previous consolidated cumulative third quarter (From April 1, 2020 to December 31, 2020)
1. Dividends paid
(Resolution)

Class ofsharesOrdinary General
Meeting of
Shareholders ofJune 25, 2020

Common stock

Total amount ofdividends(Thousands ofyen)

Dividend
per share(Yen)

997,370

30.00

Record date

Effective
date

Source ofdividends

March 31, 2020

June 26, 2020

Retained earnings

2. Significant changes in the amount of shareholders’ equity
The Company terminated 2,000,000 shares upon a resolution by the Board of Directors held on October 29,
2020. As a result, the retained earnings and the treasury stock decreased by 2,045,767 thousand yen respectively inthe current consolidated cumulative third quarter, and the retained earnings amounted to 32,593,755 thousand yen
and the treasury stock to 1,159,226 thousand yen as of the end of the current consolidated third quarter.
II Current consolidated cumulative third quarter (From April 1, 2021 to December 31, 2021)
1. Dividends paid
Total amount ofdividends(Thousands ofyen)

Dividend
per share(Yen)

Common stock

1,300,039

Common stock

166,887(Resolution)

Class ofsharesOrdinary General
Meeting of
Shareholders ofJune 25, 2021
Board of Directors’Meeting of
October 28, 2021

Record date

Effective
date

Source ofdividends

39.00

March 31, 2021

June 28, 2021

Retained earnings

5.00

September 30,
2021

December 2,
2021

Retained earnings

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

- 13 -

(Segment Information, etc.)[Segment Information]
I Previous consolidated cumulative third quarter (From April 1, 2020 to December 31, 2020)
1. Information on the amount of net sales and income or loss with respect to each reportable segment(Thousands of yen)
Reportable segment
Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

Other(See Note)

Total

Net sales
Net sales toexternal
23,752,728
6,451,804
1,732,151
2,042,551
33,979,235
627,470
34,606,706
customers
Inter-segment
sales or
619,086
619,086－－－－－transfers
Total
23,752,728
6,451,804
1,732,151
2,042,551
33,979,235
1,246,556
35,225,792
Segment income
2,197,614
639,393
121,293
123,054
3,081,355
174,727
3,256,082
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

3,081,355

Income in the category “Other”

174,727

Elimination of inter-segment transactions

2,707

Unallocated corporate expenses (See Note)△1,016,334

Adjustment of inventories△18,763
Operating income shown on the quarterly
2,223,692
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.
II Current consolidated cumulative third quarter (From April 1, 2021 to December 31, 2021)
1. Information on the amount of net sales and income or loss with respect to each reportable segment(Thousands of yen)
Reportable segment
Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

Other(See Note)

Total

Net sales
Net sales toexternal
22,831,479
5,210,840
1,949,002
2,358,326
32,349,648
314,207
32,663,855
customers
Inter-segment
sales or628,951
628,951－－－－－transfers
Total
22,831,479
5,210,840
1,949,002
2,358,326
32,349,648
943,158
33,292,807
Segment income
2,373,950
659,374
242,033
629,568
3,904,926
132,062
4,036,988
Note: The column “Other” represents business operations that do not fall under any of the reportable segments and includes the- 14 -

related goods sales, the logistics-related operations and other businesses, etc.

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

3,904,926

Income in the category “Other”

132,062

Elimination of inter-segment transactions

11,305

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

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

3. Information on impairment loss on non-current assets or goodwill, etc. with respect to each reportablesegment
No applicable matter.
4. Information concerning changes, etc. in reportable segments
As stated in Changes in Accounting Policies, the Revenue Recognition Accounting Standard, etc. havebeen applied from the beginning of the current consolidated fiscal first quarter and the accounting method for
Revenue Recognition was changed. Accordingly, the method for measuring the income or loss of businesssegments was changed.
As a result, compared to a conventional method, sales of electronic materials decreased by 1,707,382
thousand yen, sales of industrial application structural materials decreased by 486,471 thousand yen, thesegment income or loss decreased by 36,146 thousand yen, sales of electrical insulating materials decreasedby 12,193 thousand yen, sales of display materials decreased by 612,053 thousand yen, and the segment
income or loss increased by 24,814 thousand yen.
(For Revenue Recognition)
Information on the breakdown of revenue from contracts with customers
Current consolidated cumulative third quarter (From April 1, 2021 to December 31, 2021)(Thousands of yen)
Other
Total
(See Note)

Reportable segment

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

Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

22,831,479

2,351,906

1,949,002

1,473,843

28,606,230

314,207

28,920,438－

2,858,934－

884,482

3,743,417－

3,743,417

22,831,479

5,210,840

1,949,002

2,358,326

32,349,648

314,207

32,663,855

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

- 15 -

(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 third quarter(From April 1, 2020
to December 31, 2020)(1) Net income per share

Current consolidated
cumulative third quarter(From April 1, 2021
to December 31, 2021)

41.50 yen

89.18 yen

1,380,302

2,971,168－－

1,380,302

2,971,168

33,258,817

33,317,569

41.43 yen

89.13 yen

---

---

55,761

17,843(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(Thousandsof 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 numberof shares of common stock during the period when net income (or loss) per share is calculated (- shares for the previous
consolidated cumulative third quarter and 45,972 shares for the current consolidated cumulative third quarter).

(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 October28, 2021.
(1) Total amount of interim dividends

166,887 thousand yen(2) Interim dividends per share

5.00 yen(3) Effective date and payment commencement date

December 2, 2021

Note: 1. Payment was made to the shareholders listed or recorded on the shareholder registry as of September 30, 2021.
2. The above total amount of the interim dividends includes dividends of 444 thousand yen on the Company’s shares
which a trust account for employee stock ownership plan holds.

- 16 -

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

- 17 -

Independent Auditors’ Quarterly Review ReportFebruary 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
Eishi Daikoku
Designated Limited Liability Partner and Engagement Partner,

Certified Public Accountant
Conclusion of Auditors
We have conducted, under the provisions of Article 193-2, paragraph 1 of the Financial Instruments and ExchangeAct, a quarterly review of the quarterly consolidated financial statements of Arisawa Mfg. Co., Ltd. listed in the “Statusof Accounting” for the consolidated third quarter (From October 1, 2021 to December 31, 2021) and the consolidated
cumulative third quarter (From April 1, 2021 to December 31, 2021) of the consolidated fiscal year from April 1, 2021
to March 31, 2022, consisting of the quarterly consolidated balance sheets, quarterly consolidated statements of income,quarterly consolidated statements of comprehensive income and notes.
In our quarterly review, no matter has come to our attention that causes us to believe that the above quarterly
consolidated financial statements do not fairly present, in any material respect, the financial conditions of Arisawa
Mfg. Co., Ltd. and its consolidated subsidiaries as of December 31, 2021 and the results of their operations in the
consolidated cumulative third quarter ended December 31, 2021 in accordance with the standards for preparation ofquarterly consolidated financial statements generally accepted in Japan.
Basis for the Conclusion of Auditors
We conducted our quarterly review in accordance with the quarterly review standards generally accepted in Japan.
Our responsibility in the quarterly review standards is stated in “The Responsibility of Auditors in the Quarterly
Review Report of the Quarterly Consolidated Financial Statements.” We are independent of the Company and its
consolidated subsidiaries and fulfill other ethical responsibilities as an auditor in accordance with the code ofprofessional ethics in Japan. We believe that the evidence we have obtained provides a basis for our conclusion.
Responsibility of Management and Corporate Auditors and Board of Corporate Auditors for the Quarterly
Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the quarterly consolidated financial
statements in accordance with the standards for preparation of quarterly consolidated financial statements generally
accepted in Japan. This includes improvement and operation of such internal control as the management deems
necessary for the preparation and fair presentation of quarterly consolidated financial statements free from material
misstatement, whether due to fraud or error.
In preparing the quarterly consolidated financial statements, management is responsible for assessing whether it isappropriate to prepare the quarterly consolidated financial statements based on the going concern assumption anddisclosing the items regarding the going concern assumption in accordance with the standards for preparation ofquarterly consolidated financial statements generally accepted in Japan if such items are required to be disclosed.
Responsibility of Corporate Auditors and Board of Corporate Auditors is to monitor the execution of Directors’
duties in the improvement and operation of the financial reporting process.
The Responsibility of Auditors in the Quarterly Review Report of the Quarterly Consolidated Financial Statements.
Responsibility of auditors is to express a conclusion on the quarterly consolidated financial statements from an
independent standpoint in the quarterly review report based on our quarterly review.
Auditors make professional judgements and conduct the followings with an attitude of professional skepticism
through a quarterly review process in accordance with the quarterly review standards generally accepted in Japan.
・We principally make inquiries to the management, the persons responsible for financial and accounting matters,
etc. applying analytical procedures and conducting other quarterly review procedures. The quarterly review procedures
are less exhaustive than the procedures for annual financial statement audits conducted in accordance with the audit

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

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