QUARTERLY REPORT(The First Quarter of the 72nd Term)
From April 1, 2019 to June 30, 2019

(TRANSLATION)

ARISAWA MFG. CO., LTD.

TABLE OF CONTENTS
Page Number
Cover Page
PART I.

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

I. General Conditions of Business ............................................................................................................ 1
1. Changes in Principal Management Indicators, etc. ........................................................................... 1
2. Description of Business..................................................................................................................... 1
II. Status of Business ................................................................................................................................ 2
1. Business Risks, etc. ........................................................................................................................... 2
2. Analyses of Consolidated Financial Position, Business Results and Cash Flows by the
Corporate Managers ...................................................................................................................... 2
3. Agreements with Managerial Implications, etc................................................................................. 4
III. Status of the Submitting Company ..................................................................................................... 5
1. Status of Shares, etc. ......................................................................................................................... 5(1) Total Number of Shares, etc. ......................................................................................................... 5(2) Status of Stock Acquisition Rights, etc. ........................................................................................ 5(3) Status of Exercise of Moving Strike Convertible Bonds, etc. ....................................................... 5(4) Changes in the Number of Shares Issued and Outstanding, Capital Stock, etc. ............................ 5(5) Status of Major Shareholders......................................................................................................... 5(6) Status of Voting Rights.................................................................................................................. 6
2. Status of Directors and Officers ........................................................................................................ 6
IV. Status of Accounting .......................................................................................................................... 7
1. Quarterly Consolidated Financial Statements ................................................................................... 8(1) Quarterly Consolidated Balance Sheets......................................................................................... 8(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income............................................................................................................... 10[Quarterly Consolidated Statements of Income] ......................................................................... 10[Quarterly Consolidated Statements of Comprehensive Income] ............................................... 11
2. Other................................................................................................................................................ 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:

August 9, 2019

Quarterly accounting period:

The First Quarter of the 72nd Term (From April 1, 2019 to June 30, 2019)

Company name (Japanese):

Kabushiki-Kaisha Arisawa Seisakusho

Company name (English):Arisawa Mfg. Co., Ltd.

Name and title of representative:

Yuta Arisawa, President and Representative Director

Location of head office:5-5, Minami-honcho 1-chome, Joetsu-shi, Niigata

Telephone number:(025) 524-5126

Contact person:

Shuichi Kubota, General Manager, Accounting Department

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

Telephone number:(025) 524-5126

Contact person:

Shuichi Kubota, General Manager, Accounting Department

Places where copies of this Quarterly Report are

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

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

71th term
consolidated cumulative
first quarter
From April 1, 2018
to June 30, 2018

72nd term
consolidated cumulative
first quarter
From April 1, 2019
to June 30, 2019

From April 1, 2018
to March 31, 2019

10,961

10,54744,728

1,237

594

4,297

858

250

2,861

49

△178

2,200

51,41652,22953,462

71,22972,76273,096(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)71th term

23.80
6.91
79.15
Fully diluted net income per
23.58
6.89
78.70
share
(Yen)
Equity ratio
(%)
68.3
68.0
69.3
Note: 1. As Arisawa Mfg. Co., Ltd. (hereinafter referred to as either the “Company” or the “Submitting Company”, as the casemay be) prepares the quarterly consolidated financial statements, the changes in principal management indicators, etc.
of the Submitting Company are not stated above.
2. Consumption tax, etc. are not included in the amount of net sales.
3. The provisional accounting treatment for business combinations, which were conducted in the previous consolidated
first quarter, was finalized during the previous consolidated third quarter. As a result, figures as of previous consolidated
first quarter reflect the important revision of the initially allocated amounts of acquisition price.

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

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

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

(1) Financial Position and Operating Results1) Operating Results
The Japanese economy in the current consolidated cumulative first quarter, remained on a moderate overall
recovery track. Meanwhile, concerns of a slowdown of the global economy increased and a sense of
uncertainty regarding the economic outlook persisted due largely to the influence of trade conflicts between
US and China, as well as stagnation of economic growth 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 10,547 million yen (representing a 3.8% decrease as comparedwith the year-earlier quarter), an operating income of 502 million yen (representing a 40.3% decrease ascompared with the year-earlier quarter), an ordinary income of 594 million yen (representing a 51.9%
decrease as compared with the year-earlier quarter) and a profit attributable to owners of the parent of 250
million yen (representing a 70.8% decrease as compared with 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 6,550 million yen, representing a 4.5% decrease ascompared with the year-earlier quarter and consisting mainly of the sales of our mainstay product, i.e.
materials for flexible printed circuit boards (the amount of orders received increased by 5.1%, and the
production output increased by 12.6%, as compared with the year-earlier quarter on a non-consolidated basisof the Submitting Company), while the segment income or loss recorded a segment income of 448 million
yen (a 30.1% decrease as compared with the year-earlier quarter).
b. Industrial application structural materials segment
In the industrial application structural materials segment, net sales (consisting mainly of the sales offilament winding molded products as well as honeycomb panels and prepregs for aircraft) were 2,174 million
yen, representing an 0.1% increase as compared with the year-earlier quarter, while the segment income orloss recorded a segment income of 284 million yen (a 28.4% decrease as compared with the year-earlier
quarter).
c. Electrical insulating materials segment
In the electrical insulating materials segment, net sales (consisting mainly of the sales of prepregs and glass
cloth for electrical insulation) were 767 million yen, representing a 4.6% decrease as compared with the yearearlier quarter, while the segment income or loss recorded a segment income of 72 million yen (a 44.8%
decrease as compared with the year-earlier quarter).
d. Display materials segment
In the display materials segment, net sales (consisting mainly of the sales of 3D imaging-related materials)
were 849 million yen, representing a 9.4% decrease as compared with the year-earlier quarter, while thesegment income or loss recorded a segment income of 48 million yen (a 4.0% decrease as compared withthe year-earlier quarter).
e. Other (other businesses)
In other businesses, net sales were 205 million yen, representing a 10.3% increase as compared with theyear-earlier quarter, while the segment income or loss recorded a segment income of 55 million yen (a 2.9%
increase as compared with the year-earlier quarter).

-2-

It should also be noted that the amounts of net sales, orders received, etc. stated in this section do not include consumption
tax, etc.

2) Financial Position
Total assets as of the end of the current consolidated cumulative first quarter were 72,762 million yen, adecrease of 333 million yen compared with the end of the previous year. This was due largely to an increaseof 1,062 million yen in property, plant and equipment, a decrease of 613 million yen in "Other” in“Investments and other assets”, a decrease of 596 million yen in cash and deposits and a decrease of 517
million yen in "Investment securities" in “Investments and other assets”.
Total liabilities as of the end of the current consolidated cumulative first quarter were 20,532 million yen,
an increase of 898 million yen compared with the end of the previous year. This was due largely to anincrease of 320 million yen in provision for bonuses and an increase of 318 million yen in "Other" in "Noncurrent liabilities".
Total net assets as of the end of the current consolidated cumulative first quarter were 52,229 million yen,a decrease of 1,232 million yen compared with the end of the previous year. This was due largely to adecrease of 836 million yen in retained earnings and a decrease of 216 million yen in valuation difference
on available-for-sale securities.

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

(3) Business and Financial Tasks to be Addressed
There was no significant change in the tasks to be addressed by our Group in the current consolidated
cumulative first quarter.
In this regard, the Company has a basic policy in place as to how the persons controlling the Company’s
financial and business policymaking shall act, and the contents, etc. of such basic policy (the matters set forthin Article 118, item 3 of the Ordinance for Enforcement of the Companies Act) are as follows.
1) Contents of the basic policy and the efforts toward the realization of the basic policy (including, but
not limited to, effective utilization of the assets of the Company and formation of an appropriate
corporate group)
The Company, ever since its initiation in 1909, has been working on technological innovations andproduct development to build up unique technologies that integrate the “weaving, coating and molding”
elements of its expertise while consistently fulfilling users’ needs, thereby increasing its corporate
value under favorable labor-management climate. The Company’s Board of Directors believes that theCompany is obligated to adhere to such time-honored principle of nurturing technologicalaccumulation and also to understand, foster and enhance the said corporate value in the long run.
In light of the above, our Group stands on a management policy centering on the motto “Creation,
Innovation and Challenge” as we aim to create corporate value and enhance shareholder value of theCompany by means of enhancing customer satisfaction, accelerating new product development andimproving profitability through thorough cost reduction..
2) Efforts to prevent inappropriate persons from controlling the Company’s financial and business
policymaking
The Company decided not to continue the protective measures (Takeover defensive measures) as ofthe end of the 71st Ordinary General Meeting of Shareholders held on June 27, 2019. However, if any
acquisition of large block shares of the Company is made, we will strive to gather necessary andsufficient information which may enable the shareholders to make an appropriate judgement on the pros
and cons of such acquisition of large block shares, and seek to secure time and information required forthe shareholders' considering by disclosing opinions of the Board of Directors, etc.

-3-(4) Research and Development Activities
The Group’s total expenses for research and development activities incurred in the current consolidated
cumulative first quarter amounted to 510 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.

-4-

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

Total number of shares authorized to be issued

Common stock

130,000,000

Total

130,000,000

2) Shares issued and outstanding
Number of shares issued
and outstanding as of theend of the first quarter(As of June 30, 2019)

Class

Number of shares issued
and outstanding as of thefiling date of this Quarterly
Report(As of August 9, 2019)

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

Remarks

Common stock

36,254,024

36,283,924

Tokyo Stock Exchange(First Section)

Number of sharesconstituting one
full unit: 100

Total

36,254,024

36,283,924

---

---

Note: The number of shares issued through the exercise of stock acquisition rights in the period from August 1, 2019 to thefiling date of this Quarterly Report is not included in the column “Number of shares issued and outstanding as of the filingdate of this Quarterly Report”.

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

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

(4) Changes in the Number of Shares Issued and Outstanding, Capital Stock, etc.
PeriodFrom April 1, 2019 toJune 30, 2019
(See Note 1)

Capital stock(Thousands of yen)

Number of shares issued andoutstanding

Legal capital surplus(Thousands of yen)

ChangeBalance

ChangeBalance

ChangeBalance27,80036,254,024

11,384

7,553,077

11,384

6,665,000

Note: 1. The increases are due to the exercise of stock acquisition rights.
2. In the period from July 1, 2019 to July 31, 2019, the number of shares issued and outstanding increased by 29,900 shares,
and the amount of capital stock and that of legal capital surplus increased by 914 thousand yen and 887 thousand yen
respectively, all through 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.

-5-(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, 2019).
1) Shares issued and outstanding
As of June 30, 2019
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 36,137,800

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

Common stock

Number of shares issued and outstanding

7,300

361,378---

81,124------36,226,224

---

---

Total number of voting rights held by--361,378--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. 78 shares of treasury stock are included in the row "Shares constituting less than one full unit".

2) Treasury Stock, etc.
As of June 30, 2018
Name and address of shareholder

Number of shares held

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

Full name or corporate
nameAddress

Under own
name

Under thenames ofothers

Total

Arisawa Mfg. Co., Ltd.

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

7,300

---

7,300

0.02

---

7,300

---

7,300

0.02

Total

2. Status of Directors and Officers
No applicable matter.

-6-

IV. Status of Accounting
1.

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

2.

Certification of Audit
The Company received a quarterly review of its quarterly consolidated financial statements for the current
consolidated first quarter (From April 1, 2019 to June 30, 2019) and the current consolidated cumulative firstquarter (From April 1, 2019 to June 30, 2019) conducted by Ernst & Young ShinNihon LLC under the provisionsof Article 193-2, paragraph 1 of the Financial Instruments and Exchange Act.

-7-

1. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Thousands of yen)Previous consolidated
fiscal year
(As of March 31, 2019)

Current consolidated
first quarter(As of June 30, 2019)

AssetsCurrent assets
Cash and deposits

8,193,697

Notes and accounts receivable-trade*1

16,127,374

7,597,291*1

15,865,631

Securities

1,401,188

1,514,206

Merchandise and finished goods

4,012,943

4,118,840

Work in process

1,941,748

1,962,292

Raw materials and supplies

3,378,698

3,738,091

Other

1,190,214

1,185,240

Allowance for doubtful accounts△668,052△610,714

Total current assets

35,577,813

35,370,880

11,998,454

13,060,664

Goodwill

219,309

204,688

Other

175,923

170,277

Total intangible assets

395,233

374,965

Investment securities

23,142,852

22,625,091

Other

2,125,569

1,512,329

Allowance for doubtful accounts△143,823△181,335

Total investments and other assets

25,124,598

23,956,084

Total non-current assets

37,518,286

37,391,715

Total assets

73,096,100

72,762,596

Non-current assets
Property, plant and equipment
Intangible assets

Investments and other assets-8-

(Thousands of yen)
Current consolidated
first quarter(As of June 30, 2019)

Previous consolidated
fiscal year
(As of March 31, 2019)
Liabilities
Current liabilities
Notes and accounts payable-trade*1

6,105,195*1

6,258,037

Current portion of bonds

36,80036,800

Short-term loans payable

5,394,122

5,705,552

Current portion of long-term loans payable

779,820

658,972

Income taxes payable

300,788384,250

Provision for bonuses

510,407831,294

3,957

1,226

Provision for directors' bonuses
Other

*1

Total current liabilities

3,041,830*12,906,435

16,172,921

16,782,567

128,000

109,600

Long-term loans payable

1,265,465

1,248,172

Net defined benefit liability

626,885

633,343

Asset retirement obligations

92,502

92,541Other

1,348,196

1,666,453

Total non-current liabilities

3,461,049

3,750,111

19,633,971

20,532,678

Capital stock

7,541,693

7,553,077

Capital surplus

6,653,615

6,665,000

Retained earnings

35,130,363

34,294,172

Treasury stock△4,764△4,82849,320,907

48,507,421

745,120

528,127

Non-current liabilities
Bonds payable

Total liabilities
Net assets
Shareholders’ equity

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

443

4,848

Foreign currency translation adjustment

707,571

561,495

Remeasurements of defined benefit plans△147,916△139,950

Total accumulated other comprehensive income

1,305,219

954,521

Subscription rights to shares

144,419

154,415

Non-controlling interests

2,691,582

2,613,558

Total net assets

53,462,129

52,229,917

73,096,100

72,762,596

Total liabilities and net assets-9-(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income[Quarterly Consolidated Statements of Income][Consolidated cumulative first quarter](Thousands of yen)
Current consolidated
cumulative first quarter(From April 1, 2019
to June 30, 2019)

Previous consolidated
cumulative first quarter(From April 1, 2018
to June 30, 2018)
Net sales

10,961,088

10,547,117

Cost of sales

8,915,670

8,797,552

Gross profit

2,045,418

1,749,564

Selling, general and administrative expenses

1,202,889

1,246,618

842,528

502,945

Interest income

79,25476,809Dividends income
Share of profit of entities accounted for using equity
methodForeign exchange gains

46,17952,165

118,455－

199,729－

Other

83,611

74,288

Total non-operating income

527,230

203,263

20,49523,018－57,223Operating income
Non-operating income

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodProvision of allowance for doubtful accounts

57,755－

Other54,15331,207

Total non-operating expenses

132,404

111,449

1,237,355

594,760

65,010－Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on reversal of share acquisition rights

956

615

Other

6,544

－

Total extraordinary income

72,511

615

Loss on retirement of non-current assets

1,412

2,098

Total extraordinary losses

1,412

2,098

Income before income taxes

Extraordinary losses

1,308,454

593,277

Income taxes

366,659

286,910

Profit941,795

306,366

Profit attributable to non-controlling interests

83,50355,992

Profit attributable to owners of the parent

858,291

250,373- 10 -

[Quarterly Consolidated Statements of Comprehensive Income][Consolidated cumulative first quarter]
Previous consolidated
cumulative first quarter(From April 1, 2018
to June 30, 2018)
Profit(Thousands of yen)
Current consolidated
cumulative first quarter(From April 1, 2019
to June 30, 2019)

941,795

306,366△223,080△217,012

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges△10,595

4,404

Foreign currency translation adjustment△518,282△292,254

6,763

8,563

△146,665

11,584Remeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income△891,861△484,714

Comprehensive income

49,933△178,348(Breakdown)Comprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests

153,284△100,324△103,350△78,023- 11 -

[Notes](Changes in Accounting Policies)<Application of IFRS 16 (Lease)>
IFRS 16 "Lease" (Published in January, 2016) (hereinafter, "IFRS 16") has been applied to the IFRS-applied
subsidiaries of our Group since the current consolidated first quarter. In applying IFRS 16, we adopted the method
allowed as Provisional measures where cumulative influence of application of this Standards is recognized on thecommencement date of such application.
Regarding the lease on the side of lessee which was classified into operating lease by applying IAS 17 in thepast, right-of-use assets and lease liability were recognized on the commencement date of such application.
A part of assets included in "Other” in “Investments and other assets” is transferred to right-of-use assets.
Along with the application of this Standard, Quarterly Consolidated Balance Sheets show that “Property, plantand equipment”, “Other” in “Current liabilities” and “Other” in “Non-current liabilities” increased respectively
by 392,797 thousand yen, 31,842 thousand yen and 317,720 thousand yen, while “Other” in“Investments andother assets” decreased by 43,746 thousand yen.
The influence on gain and loss in the current cumulative consolidated first quarter due to these changes was
slight.
(Particular accounting treatments applied in preparation of quarterly consolidated financial statements)<Calculation of tax expenses>
Tax expenses are calculated by multiplying the quarterly income before income taxes by an estimatedeffective tax rate. Such effective tax rate is reasonably estimated after applying tax effect accounting to the income
before income taxes for the consolidated fiscal year including the current consolidated first quarter.

*(Notes Related to Quarterly Consolidated Balance Sheets)
Notes, etc. maturing at the end of the consolidated first quarter
For accounting treatment of notes, electronically recorded monetary claims and electronically recorded
obligations maturing at the end of the consolidated first 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 first quarter falls on a bank holiday, thefollowing notes, electronically recorded monetary claims and electronically recorded obligations maturing at
the end of the consolidated first quarter are included in their respective balances as of the end of the consolidated
first quarter.
Previous consolidated fiscal year
(As of March 31, 2019)

Notes and accounts receivable-trade
Notes and accounts payable-trade
Current liabilities and others (Notes payable-facilities,
Electronically recorded obligations-non-operating)(Thousands of yen)
Current consolidated third quarter(As of June 30, 2019)

66,950130,679

36,177
113,436

51,206

46,243(Notes Related to Quarterly Consolidated Statements of Cash Flows)
Quarterly consolidated statements of cash flows for the current consolidated cumulative first quarter were notprepared. In this regard, the amounts of depreciation (including amortization of intangible assets except for
goodwill), amortization of goodwill and amortization of negative goodwill for the previous and current
consolidated cumulative first quarters are as follows.
Previous consolidated
cumulative first quarter(From April 1, 2018
to June 30, 2018)
Depreciation
Amortization of goodwill

439,992
14,620- 12 -(Thousands of yen)
Current consolidated
cumulative first quarter(From April 1, 2019
to June 30, 2019)469,317
14,620I(Notes Related to Shareholders’ Equity, etc.)
Previous consolidated cumulative first quarter (From April 1, 2018 to June 30, 2018)
Dividends paid

(Resolution)

Class ofsharesOrdinary General
Meeting of
Shareholders ofJune 28, 2018

Common stock

Total amount ofdividends(Thousands ofyen)

Dividend
per share(Yen)

1,224,579

34.00

Record date

Effective
date

Source ofdividends

March 31, 2018

June 29, 2018

Retained earnings

II Current consolidated cumulative first quarter (From April 1, 2019 to June 30, 2019)
Dividends paid
(Resolution)

Class ofsharesOrdinary General
Meeting of
Shareholders ofJune 27, 2019

Common stock

Total amount ofdividends(Thousands ofyen)

Dividend
per share(Yen)

1,086,565

30.00- 13 -

Record date

Effective
date

Source ofdividends

March 31, 2019

June 28, 2019

Retained earnings

(Segment Information, etc.)[Segment Information]
I Previous consolidated cumulative first quarter (From April 1, 2018 to June 30, 2018)
1. Information on the amount of net sales and income or loss with respect to each reportable segment(Thousands of yen)
Other
Total
(See Note 1)

Reportable segment

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

Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

6,550,661

2,174,259

767,942

849,133

10,341,996

205,120

10,547,11
7

－

－

－

－

－

186,713

186,7136,550,661

2,174,259

767,942

849,133

10,341,996

391,833

10,733,83
0Segment income

448,049
284,175
72,70648,522
853,453
55,350908,803
Note: 1 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 Segment income is calculated according to the monetary amount reflecting the important revision, which is stated in“Notes（business combinations etc.), of initially allocated amount of acquisition price following the finalization of theprovisional accounting”.

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

1,220,430

Income in the category “Other”

53,804

Elimination of inter-segment transactions△22,499

Amortization of goodwill△14,620

Unallocated corporate expenses (See Note)△366,916

Adjustment of inventories△27,669

Operating income shown on the quarterly
842,528
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.

- 14 -

II Current consolidated cumulative first quarter (From April 1, 2019 to June 30, 2019)
1. Information on the amount of net sales and income or loss with respect to each reportable segment(Thousands of yen)
Other
Total
(See Note)

Reportable segment

Net sales
Net sales toexternalcustomers
Inter-segment
sales ortransfers
Total

Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

6,550,661

2,174,259

767,942

849,133

10,341,99
6

－

－

－

－

－

6,550,661

2,174,259

767,942

849,133

10,341,99

Subtotal

205,120

10,547,117

186,713

186,713391,833

10,733,830

6
Segment income

448,049
284,175
72,70648,522
853,453
55,350908,803
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

853,453

Income in the category “Other”

55,350Elimination of inter-segment transactions△17,681

Amortization of goodwill△14,620

Unallocated corporate expenses (See Note)△355,585△17,970
Operating income shown on the quarterly
502,945
consolidated statements of income
Note: Unallocated corporate expenses are mostly general and administrative expenses
that are not attributable to any of the reportable segments.
Adjustment of inventories

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

- 15 -

(Business Combinations)
Important revision of initially allocated amount of acquisition price in the comparison information
Provisional accounting was conducted in the previous consolidated first quarter for the business combination
with Satosen Co., Ltd., which was effected on November 30, 2017. Such provisional accounting has been finalized
in the previous consolidated third quarter. Due to such finalization of the provisional accounting, important
revision of the initially allocated amount of acquisition price is reflected on the comparative information describedin Quarterly Consolidated Financial Statements for the current cumulative consolidated first quarter.
As a result, the amount of goodwill which was calculated provisionally is revised, due to the said finalizationof accounting, from 355,527 thousand yen to 292,412 thousand yen, a decrease of 63,115 thousand yen. Suchdecrease of goodwill is due to the respective increases of 95,039 thousand yen in "Other" of "Intangible assets",and of 31,923 thousand yen in "Other" of "Non-current assets".
As a result, the influence on Quarterly Consolidated Statements of Income for the previous cumulative
consolidated first quarter is slight.
(Per Share Information)
The amounts of net income per share and fully diluted net income per share with their respective bases ofcalculation are as follows.
Previous consolidated
cumulative first quarter(From April 1, 2018
to June 30, 2018)(1) Net income per share

Current consolidated
cumulative first quarter(From April 1, 2019
to June 30, 2019)23.80 yen

6.91yen858,291

250,373－－858,291

250,373

36,058,809

36,225,276

23.58yen

6.89yen------346,680

114,527(Basis of calculation)
Profit attributable to owners of the parent(Thousands of yen)Amount not attributable to common
stockholders (Thousands of yen)
Profit attributable to owners of the parent
pertaining to common stock(Thousands of yen)
Average number of shares of common stockduring the period(2) Fully diluted net income per share(Basis of calculation)
Adjustment of profit attributable to ownersof the parent (Thousands of yen)
Increase in the number of shares of common
stockOutline of dilutive shares that were not includedin the calculation of fully diluted net income pershare due to a lack of dilutive effect and also
underwent a significant change after the end of
the previous consolidated fiscal year---

(Significant Subsequent Events)
No applicable matter.

2. Other
No applicable matter.

- 16 ----

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

- 17 -

Independent Auditors’ Quarterly Review ReportAugust 9, 2019
To the Board of Directors of Arisawa Mfg. Co., Ltd.

Ernst & Young ShinNihon LLC
Akira Igarashi[Seal]

Designated Limited Liability Partner and Engagement Partner,

Certified Public Accountant
Eishi Daikoku[Seal]

Designated Limited Liability Partner and Engagement Partner,

Certified Public Accountant
We have conducted, under the provisions of Article 193-2, paragraph 1 of the Financial Instruments and ExchangeAct, a quarterly review of the quarterly consolidated financial statements of Arisawa Mfg. Co., Ltd. listed in the “Statusof Accounting” for the consolidated first quarter (From April 1, 2019 to June 30, 2019) and the consolidated cumulative
first quarter (From April 1, 2019 to June 30, 2019) of the consolidated fiscal year from April 1, 2019 to March 31,
2020, consisting of the quarterly consolidated balance sheets, quarterly consolidated statements of income, quarterly
consolidated statements of comprehensive income and notes.
Responsibility of Management for the Quarterly Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the quarterly consolidated financial
statements in accordance with the standards for preparation of quarterly consolidated financial statements generally
accepted in Japan. This includes improvement and operation of such internal control as the management deems
necessary for the preparation and fair presentation of quarterly consolidated financial statements free from material
misstatement, whether due to fraud or error.
Responsibility of Auditors
Our responsibility is to express a conclusion on the quarterly consolidated financial statements from an independent
standpoint based on our quarterly review. We conducted our quarterly review in accordance with the quarterly review
standards generally accepted in Japan.
A quarterly review consists principally of making inquiries to the management and the persons responsible forfinancial and accounting matters, etc., applying analytical procedures and conducting other quarterly review procedures.
The quarterly review procedures are less exhaustive than the procedures for annual financial statement audits
conducted in accordance with the audit standards generally accepted in Japan.
We believe that the evidence we have obtained provides a basis for our conclusion.
Conclusion of Auditors
In our quarterly review, no matter has come to our attention that causes us to believe that the above quarterly
consolidated financial statements do not fairly present, in any material respect, the financial conditions of Arisawa
Mfg. Co., Ltd. and its consolidated subsidiaries as of June 30, 2019 and the results of their operations in the
consolidated cumulative first quarter ended June 30, 2019 in accordance with the standards for preparation of quarterly
consolidated financial statements generally accepted in Japan.
Interest
There exists no special interest between the Company and this audit corporation or its engagement partners whichis required to be stated pursuant to the provisions of the Certified Public Accountants Act.
Note:

1. All the matters stated above have been electronically copied from the matters stated in the original quarterly review report. The
original quarterly review report is separately archived by the Company (the company submitting the Quarterly Report).
2. XBRL data are not included in the subject of the quarterly review.