QUARTERLY REPORT(The Second Quarter of the 76th Term)
From July 1, 2023 to September 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................................................................................. 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, Share Capital, etc. ............................ 5(5) Status of Major Shareholders......................................................................................................... 6(6) Status of Voting Rights.................................................................................................................. 8
2. Status of Directors and Officers ........................................................................................................ 8
IV. Status of Accounting .......................................................................................................................... 9
1. Quarterly Consolidated Financial Statements ................................................................................. 10(1) Quarterly Consolidated Balance Sheets....................................................................................... 10(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income............................................................................................................... 12[Quarterly Consolidated Statements of Income] ......................................................................... 12[Quarterly Consolidated Statements of Comprehensive Income] ............................................... 13(3) Quarterly Consolidated Statements of Cash Flows ..................................................................... 14
2. Other................................................................................................................................................ 21
PART II. INFORMATION ON GUARANTY COMPANIES, ETC. OF THE
SUBMITTING COMPANY ................................................................................................ 22[Independent Auditors’ Quarterly Review Report]

Cover Page
Document to be filed:

Quarterly Report

Statutory basis:

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

Filing to:

Director-General of the Kanto Local Finance Bureau

Date of filing:

November 14, 2023

Quarterly accounting period:

The Second Quarter of the 76th Term (From July 1, 2023 to September 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

75th term
consolidated cumulative
second quarter

Accounting period

From April 1, 2022
to September 30, 2022

76th term
consolidated cumulative
second quarter
From April 1, 2023
to September 30, 2023

22,994

19,89542,722

2,408

218

2,717

2,563

563

2,856

Net sales(Millions of yen)

Ordinary profit(Millions of yen)
Profit attributable to ownersof parent(Millions of yen)75th term
From April 1, 2022
to March 31, 2023

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

3,003

1,377

2,578

47,30844,875

47,107

Total assets (Millions of yen)

70,866

67,98367,659

77.37

17.02

86.46

77.23

17.00

86.24

66.6

66.0

69.5

1,559

703

3,471

4,214

1,102

508

△3,379△2,734△2,572

20,11018,206

18,535

Basic earnings per share(Yen)
Diluted earnings per share(Yen)
Equity ratio(%)
Cash flows from operating
activities (Millions of yen)
Cash flows from investing
activities (Millions of yen)
Cash flows from financing
activities (Millions of yen)
Cash and cash equivalents at
the end of period(Millions of yen)

Term
Accounting period

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

76th term
consolidated
second quarter
From July 1, 2023
to September 30, 2023

Basic earnings per share

42.28
23.10
(Yen)
Note: As Arisawa Mfg. Co., Ltd. (hereinafter referred to as either the “Company” or the “Submitting Company”, as the casemay be) prepares the quarterly consolidated financial statements, the changes in principal management indicators, etc. of
the Submitting Company are not stated above.

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

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

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

(1) Financial Position and Operating Results1) Operating Results
As for the Japanese economy in the current consolidated cumulative second quarter, the normalization of
economic activity has progressed further as the COVID-19 infections have been subsiding. Meanwhile,
looking overseas, the future prospects remained uncertain due to the persistent high energy and raw material
prices caused by the prolonged situation in Ukraine, global monetary tightening in addition to the economic
downturn in China, etc.
Under such circumstances, the operating results of our Group (the Company, its consolidated subsidiaries
and the companies accounted for under the equity method) for the current consolidated cumulative second
quarter showed net sales of 19,895 million yen (representing a 13.5% decrease as compared with the yearearlier quarter) due to a decrease in sales of electronic materials, which is the main business field, caused by
the significant impact from the decrease in demand in the Chinese market, despite an increase in sales ofindustrial application structural materials. Due to soaring energy costs and raw material prices in addition to
the impact of a decrease in sales, the results in terms of profit and loss are as follows: an operating profit was
169 million yen (representing a 90.9% decrease as compared with the year-earlier quarter); an ordinary profit
was 218 million yen (representing a 90.9% decrease as compared with the year-earlier quarter); and a profit
attributable to owners of parent was 563 million yen (representing a 78.0% decrease as compared with theyear-earlier quarter).
Operating results with respect to each segment are as follows.
a. Electronic materials segment
In the electronic materials segment, net sales were 11,725 million yen (a 23.8% decrease as compared withthe year-earlier quarter) due to a decrease in sales of flexible printed circuit board materials (the amount oforders received decreased by 18.2% and the production output decreased by 26.3% as compared with theyear-earlier quarter on a non-consolidated basis of the Submitting Company) and glass cloth for printed
circuit board, while segment loss was 209 million yen (the segment profit of 1,360 million yen in the yearearlier quarter) caused by the impact from soaring energy costs and raw material prices in addition to adecrease in sales.
b. Industrial application structural materials segment
In the industrial application structural materials segment, net sales were 5,101 million yen (a 27.2%
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 was 571 million yen (a 3.9%
decrease as compared with the year-earlier quarter).
c. Electrical insulating materials segment
In the electrical insulating materials segment, net sales were 1,232 million yen (a 1.7% decrease ascompared with the year-earlier quarter) due to a decrease in infrastructure-related sales, while the segment
profit was 113 million yen (a 116.3% increase as compared with the year-earlier quarter).
d. Display materials segment
In the display materials segment, net sales were 1,677 million yen (a 23.1% decrease as compared with theyear-earlier quarter) due to a decrease in sales of 3D-related materials and polarization control opticalcomponents, while the segment profit was 420 million yen (a 26.8% decrease as compared with the year-2-

earlier quarter).
e. Other (other businesses)
In other businesses, net sales were 157 million yen (a 2.9% decrease as compared with the year-earlier
quarter), while the segment profit was 99 million yen (a 9.9% increase as compared with the year-earlier
quarter).
2) Financial Position
Total assets as of the end of the current consolidated cumulative second quarter were 67,983 million yen,
an increase of 323 million yen compared with the end of the previous fiscal year. This was largely due toan increase of 1,966 million yen in notes and accounts receivable-trade, and contract assets, an increase of
899 million yen in property, plant and equipment, a decrease of 1,749 million yen in cash and deposits, adecrease of 583 million yen in merchandise and finished goods, and a decrease of 537 million yen in
investment securities, respectively.
Total liabilities as of the end of the current consolidated cumulative second quarter were 23,108 million
yen, an increase of 2,556 million yen compared with the end of the previous fiscal year. This was largely
due to an increase of 1,031 million yen in notes and accounts payable-trade, and an increase of 1,171 million
yen in long-term borrowings, respectively.
Total net assets as of the end of the current consolidated cumulative second quarter were 44,875 million
yen, a decrease of 2,232 million yen compared with the end of the previous fiscal year. This was largely due
to an increase of 969 million yen in foreign currency translation adjustment and a decrease of 3,088 million
yen in retained earnings, respectively.

(2) Status of Cash Flows
Cash and cash equivalents (hereinafter referred to as the “Funds”) as of the end of the current consolidated
second quarter amounted to 18,206 million yen, decreasing 1,904 million yen, or 9.5%, as compared withthe end of the previous consolidated second quarter.
The following is the status of each cash flow category during the current consolidated cumulative second
quarter and the key factors of such status.
(Cash flows from operating activities)
Funds earned from operating activities were 703 million yen (a 54.9% decrease as compared with the yearearlier quarter). This was due largely to an increase in the Funds comprising the postings of 855 million yen
in profit before income taxes, 1,104 million yen in depreciation, 890 million yen in increase in trade payables
as well as a decrease in the Funds comprising 1,538 million yen in increase in trade receivables and a decreasein the Funds comprising 656 million yen in gain on sales of short-term and long-term investment securities.
(Cash flows from investing activities)
Funds earned from investing activities were 1,102 million yen (a 73.9% decrease as compared with theyear-earlier quarter). This was due largely to an increase in the Funds comprising proceeds from withdrawalof time deposits of 1,653 million yen.
(Cash flows from financing activities)
Funds disbursed for financing activities were 2,734 million yen (a 19.1% decrease as compared with theyear-earlier quarter). This was due largely to a decrease in the Funds comprising the payment of 2,974 million
yen in cash dividends.

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

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

(5) Business and Financial Tasks to be Preferentially Addressed
There was no material change in business and financial tasks to be preferentially addressed by our Group-3-

in the current consolidated cumulative second quarter.

(6) Research and Development Activities
The Group’s total expenses for research and development activities incurred in the current consolidated
cumulative second quarter amounted to 987 million yen.
In this regard, there was no significant change in the status of research and development activities of ourGroup in the current consolidated cumulative second quarter.

3. Agreements with Managerial Implications, etc.
In the current consolidated second quarter, there was no decision made on, or execution of, agreements 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 second quarter(As of September 30, 2023)

Class

Number of shares issued andoutstanding as of the filingdate of this Quarterly Report(As of November 14, 2023)

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

Remarks

Common stock

33,550,424

33,550,424

Tokyo Stock Exchange(Prime Market)

Number of sharesconstituting one
full unit: 100

Total

33,550,424

33,550,424

---

---

Note: 1. The number of shares issued through the exercise of stock acquisition rights in the period from November 1, 2023 to
the filing date of this Quarterly Report is not included in the column “Number of shares issued and outstanding as of
the filing date of this Quarterly Report”.
2. The Company disposed of 41,477 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 July 1, 2023 to
September 30, 2023 (SeeNote)

Share capital(Thousands of yen)

Number of shares issued andoutstanding

Legal capital surplus(Thousands of yen)

ChangeBalance

ChangeBalance

ChangeBalance

2,500

33,550,424

1,362

7,853,189

1,362

6,965,180

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

-5-(5) Status of Major Shareholders

Full name or
corporate name

The Master Trust Bank of Japan,
Ltd. (Trust account)

Address

11-3, Hamamatsu-cho 2-chome,
Minato-ku, Tokyo

As of September 30, 2023
Ratio of the numberof shares held to thenumber of shares
Number ofissued andshares held
outstanding(excluding treasury
shares) (%)
3,815,800

11.48

INTERTRUST TRUSTEES（CAYMAN）LIMITED SOLELY ONE NEXUS WAY, CAMANA BAY GRAND
IN ITS CAPACITY AS TRUSTEE CAYMAN KY1-9005, CAYMAN ISLANDS
OF JAPAN-UP（Standing Proxy: (Shinagawa Intercity Tower A, 15-1, Konan 2Mizuho Bank Ltd. Settlement &chome, Minato-ku, Tokyo)
Clearing Services Department）

3,191,400

9.60

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

1,472,166

4.43

Custody Bank of Japan, Ltd. (Trustaccount)

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

1,079,700

3.25

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

743,903

2.23

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

530,536

1.59

Arisawa Kenko Ltd.

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

504,338

1.51

Sanji Arisawa

Shinjuku-ku, Tokyo

451,069

1.35

Nippon Life Insurance Company(Standing Proxy: The Master Trust
Bank of Japan, Ltd.)

6-6, Marunouchi 1-chome,
Chiyoda-ku, Tokyo(11-3, Hamamatsu-cho 2-chome,
Minato-ku, Tokyo)

388,822

1.17

Yoko Mori

Setagaya-ku, Tokyo

378,180

1.13

12,555,914

37.79

Total

---

Note: 1. The Company holds 330,907 shares of treasury shares, but it is excluded from the above major shareholders.
2. The ratio of the number of shares held to the total number of shares issued (except for treasury shares) is displayed with thenumbers truncating the numbers beyond the third decimal point. Treasury shares excluded from the total number of sharesissued and outstanding does not include 82,700 shares of the Company which a trust account for employee stock ownershipplan holds.
3. The number of shares held by Mitsubishi Gas Chemical Company, Inc. includes 966,306 shares that have been contributed
by Mitsubishi Gas Chemical Company, Inc. as the trust property of retirement benefit trust. The pertinent name in the
Company’s register of shareholders is “The Master Trust Bank of Japan, Ltd. (Retirement benefit trust account and
Mitsubishi Gas Chemical Company, Inc. account).”
4.Though it is described in the Amendment Report on Bulk Holding available for public inspection as of December 20, 2018that BlackRock Japan Co., Ltd. and a joint holder thereof hold the shares described below as of December 14, 2018, theCompany has confirmed no beneficial ownerships of the number of shares as of September 30, 2023. Therefore, such
number of shares is not included in above-mentioned Status of Major Shareholders. Details of the Report on Bulk Holding
are as follows:-6-Bulk Holders
Address: BlackRock Japan Co., Ltd. and one joint holder thereof: 8-3, Marunouchi 1 chome, Chiyoda-ku, Tokyo

Number of shareholdings etc.
: 1,259,700
Holding ratio of share certificates etc. : 3.48%
5. Though it is described in the Amendment Report on Bulk Holding available for public inspection as of December 21,
2018 that Sumitomo Mitsui Asset Management Company, Limited holds the shares described below as of December 14,
2018, the Company has confirmed no beneficial ownerships of the number of shares as of September 30, 2023. Therefore,such number of shares is not included in above-mentioned Status of Major Shareholders. Details of the Report on Bulk
Holding are as follows:
Bulk Holders
Address
Number of shareholdings etc.

: Sumitomo Mitsui Asset Management Company, Limited: 5-1, Atago 2 chome, Minato-ku, Tokyo: 1,090,300

Holding ratio of share certificates etc. : 3.01%
6. Though it is described in the Amendment Report on Bulk Holding available for public inspection as of October 2, 2020
that Nippon Value Investors KK holds the shares described below as of September 30, 2020, the Company has confirmed
no beneficial ownerships of the number of shares as of September 30, 2023. Therefore, such number of shares is notincluded in above-mentioned Status of Major Shareholders. Details of the Report on Bulk Holding are as follows:
Bulk Holders: Nippon Value Investors KK
Address
Number of shareholdings etc.

: 8-1 Marunouchi 1 chome, Chiyoda-ku, Tokyo: 1,421,500

Holding ratio of share certificates etc. : 3.91%
7. Though it is described in the Amendment Report on Bulk Holding available for public inspection as of October 4, 2023
that Strategic Capital, Inc. holds the shares described below as of September 27, 2023, the Company has confirmed nobeneficial ownerships of the number of shares as of September 30, 2023. Therefore, such number of shares is not includedin above-mentioned Status of Major Shareholders. Details of the Report on Bulk Holding are as follows:
Bulk Holders: Strategic Capital, Inc.
Address
Number of shareholdings etc.

: 14-15, Higashi 3 chome, Shibuya-ku, Tokyo: 3,527,500

Holding ratio of share certificates etc. : 10.51%-7-

(6) Status of Voting Rights
1) Shares issued and outstanding
As of September 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 33,121,100

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

Common stock

Number of shares issued and outstanding

330,900

331,211---

98,424------33,550,424

---

---

Total number of voting rights held by--331,211--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. 82,700 shares of the Company which a trust account for employee stock ownership plan holds included in the row“Shares with full voting rights (Other)”. 827 units of voting rights for shares with full voting rights of such trust accountare included in the column “Number of voting rights”.
3. 7 shares of treasury shares are included in the row “Shares constituting less than one full unit”.

2) Treasury Shares, etc.
As of September 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
name330,900

Under thenames ofothers---Total

330,900

Ratio of the number ofshares held to thenumber of sharesissued and outstanding
(%)
0.98

Total
--330,900--330,900
0.98
Note: 82,700 shares of the Company which a trust account for employee stock ownership plan holds are not included in thecolumn “Under own name”.

2. Status of Directors and Officers
No applicable matter.

-8-

IV. Status of Accounting
1.

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

2.

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

-9-

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

Current consolidated
second quarter(As of September 30, 2023)

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

20,545,580

5,525,035

4,941,657

Work in process

2,373,079

2,509,608

Raw materials and supplies

4,263,762

4,951,128

Other

1,541,170

933,546

Allowance for doubtful accounts△10,786△45,788

47,419,946

47,235,470

16,446,181

17,345,882

244,197

227,823

Investment securities

2,545,474

2,007,765

Other

1,049,896

1,212,196

Allowance for doubtful accounts△45,969△45,617

Total investments and other assets

3,549,401

3,174,344

Total non-current assets

20,239,780

20,748,050

Total assets

67,659,726

67,983,520

13,182,106

Total current assets

18,796,244*

15,149,073

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

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

Current consolidated
second quarter(As of September 30, 2023)

Liabilities
Current liabilities
Notes and accounts payable-trade

5,213,263

Current portion of bonds payable*

6,244,757

16,80019,200

Short-term borrowings

5,056,253

5,223,031

Current portion of long-term borrowings

1,843,441

1,297,329

Income taxes payable

658,615635,224

Provision for product warranties

42,18438,409Provision for bonuses

526,795

504,179

2,162

1,400

Provision for bonuses for directors (and other officers)
Other

2,917,188*

Total current liabilities

16,276,705

17,812,834

2,723,471

3,894,965

Provision for share awards

50,44957,428Retirement benefit liability

700,883

635,970

Asset retirement obligations

97,119100,282

Other

703,383

606,826

4,275,306

5,295,474

20,552,012

23,108,308

Share capital

7,847,873

7,853,189

Capital surplus

3,198,618

3,203,933

Retained earnings

34,293,471

31,205,178

Treasury shares△512,975△460,982

Total shareholders’ equity

44,826,987

41,801,318

Valuation difference on available-for-sale securities

466,417282,699

Deferred gains or losses on hedges△13,657－

Foreign currency translation adjustment

1,904,093

2,873,695

Remeasurements of defined benefit plans△127,370△112,723

Total accumulated other comprehensive income

2,229,483

3,043,671

51,24330,221

47,107,714

44,875,211

67,659,726

67,983,520

3,849,302

Non-current liabilities
Long-term borrowings

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

Accumulated other comprehensive income

Share acquisition rights
Total net assets
Total liabilities and net assets- 11 -

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income[Quarterly Consolidated Statements of Income][Consolidated cumulative second quarter](Thousands of yen)
Current consolidated
cumulative second quarter(From April 1, 2023
to September 30, 2023)

Previous consolidated
cumulative second quarter(From April 1, 2022
to September 30, 2022)
Net sales

22,994,013

19,895,480

Cost of sales

18,292,178

16,998,186

Gross profit

4,701,835

Selling, general and administrative expenses*

Operating profit

2,840,016

2,897,293*

2,727,479

1,861,818

169,81476,09353,404

Dividend income

40,147

19,635

Foreign exchange gains

425,868

80,385

Other

164,12276,025

Total non-operating income

706,232

229,451

Interest expenses
Share of loss of entities accounted for using equity
methodOther

65,18992,406－43,023

94,01645,432

Total non-operating expenses

159,205

180,8622,408,845

218,403461

781

1,305,241

656,042

Non-operating income
Interest income

Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Other

40,87019,454

1,346,572

676,277

Loss on retirement of non-current assets

5,407

33,003

Impairment losses

11,813

6,557

Other

55,867－

Total extraordinary losses

73,08739,560

Profit before income taxes

3,682,330

855,120

Income taxes

1,116,339

291,676

Profit2,565,990

563,4442,465－

2,563,524

563,444

Total extraordinary income
Extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent- 12 -

[Quarterly Consolidated Statements of Comprehensive Income][Consolidated cumulative second quarter]
Previous consolidated
cumulative second quarter(From April 1, 2022
to September 30, 2022)
Profit(Thousands of yen)
Current consolidated
cumulative second quarter(From April 1, 2023
to September 30, 2023)

2,565,990

563,444△819,279△183,718

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges△10,706

13,657

Foreign currency translation adjustment

1,240,050

978,884

2,885

14,64624,170△9,282

437,120814,187

3,003,110

1,377,632

3,022,253

1,377,632△19,142－

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
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 13 -

(3) Quarterly Consolidated Statements of Cash Flows(Thousands of yen)
Current consolidated
cumulative second quarter(From April 1, 2023
to September 30, 2023)

Previous consolidated
cumulative second quarter(From April 1, 2022
to September 30, 2022)
Cash flows from operating activities
Profit before income taxes

3,682,330

855,120

Depreciation

1,097,498

1,104,523

18,57721,999△40,870△19,4545,523

34,184

Increase ( decrease) in provision for bonuses

232,003△22,616

Increase ( decrease) in provision for product warranties
Increase ( decrease) in provision for bonuses for
directors (and other officers)
Increase ( decrease) in provision for share awards△44,999△6,855△3,095△762△41,035

11,071

Increase ( decrease) in retirement benefit liability△25,681△43,837

Loss ( gain) on redemption of investment securities△40,063－Interest and dividend income△116,241△73,039

Subsidy income△9,652△29,410

Interest expenses

65,18992,406△251,516△151,210△29,194

43,023△1,249,374△656,042

△461

△781

213

1,682

11,813

6,557

Loss on valuation of golf club membership－

175

Decrease ( increase) in trade receivables△197,010△1,538,621

Decrease ( increase) in inventories△1,813,237

90,251

Increase ( decrease) in trade payables

1,465,803

890,233

Increase ( decrease) in accrued consumption taxes△276,064

276,640

Decrease ( increase) in other assets△155,290

222,760

Increase ( decrease) in other liabilities

106,252△86,227

2,391,417

1,021,773

Interest and dividends received

176,560

99,527

Interest paid

△61,841△90,679

9,652

29,410

Income taxes refund (paid)△955,899△356,390

Net cash provided by (used in) operating activities

1,559,889

703,642

Share-based payment expenses
Gain on reversal of share acquisition rights
Increase ( decrease) in allowance for doubtful accounts

Foreign exchange losses ( gains)Share of loss ( profit) of entities accounted for using
equity method
Loss ( gain) on sale of short-term and long-term
investment securities
Loss ( gain) on sale of non-current assets
Loss on retirement of property, plant and equipment
Impairment losses

Subtotal

Subsidies received- 14 -

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

Previous consolidated
cumulative second quarter(From April 1, 2022
to September 30, 2022)
Cash flows from investing activities
Payments into time deposits△362,025△200,000

Proceeds from withdrawal of time deposits

132,390

1,653,392

Purchase of property, plant and equipment△1,954,579△1,383,741

461

1,068

Purchase of intangible assets△21,236△23,172

Purchase of investment securities△332,491－

Proceeds from sale of investment securities

6,780,340

824,135－

210,317△20,097－

4,305

23,810Decrease (increase) in investments and other assets△12,629△3,787

Net cash provided by (used in) investing activities

4,214,436

1,102,021

Net increase ( decrease) in short-term borrowings△903,394

16,776

Proceeds from long-term borrowings

2,587,765

2,141,828

Repayments of long-term borrowings△1,305,248△1,857,761

Repayments of lease liabilities△57,691△62,060

Redemption of bonds△18,400△8,400

Repayments of long-term accounts payable - other△4,709－Proceeds from issuance of shares

125,888

9,063△749,709△239△45,813－△2,998,210△2,974,133△9,589－△3,379,111△2,734,927

822,104

599,653

Net increase ( decrease) in cash and cash equivalents

3,217,319△329,609

Cash and cash equivalents at beginning of period

16,893,109

18,535,854

Proceeds from sale of property, plant and equipment

Proceeds from sale of shares of subsidiaries and associates
Loan advances
Proceeds from collection of loans receivable

Cash flows from financing activities

Purchase of treasury shares
Purchase of shares of subsidiaries not resulting in change
in scope of consolidation
Dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

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

20,110,428*

18,206,244

[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 second quarter.
(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.
(Thousands of yen)Previous consolidated fiscal year
(As of March 31, 2023)
Notes and accounts receivable-trade, and contract
assets
Notes and accounts payable-trade
Current liabilities and others (Notes payable-nonoperating, Electronically recorded obligations-nonoperating)*Current consolidated third quarter(As of September 30, 2023)－

37,571－44,067－

14,430(Notes Related to Quarterly Consolidated Statements of Income)
Major items under selling, general and administrative expenses and their respective amounts are as follows.
Previous consolidated
cumulative second quarter(From April 1, 2022
to September 30, 2022)(Thousands of yen)
Current consolidated
cumulative second quarter(From April 1, 2023
to September 30, 2023)

Salaries, benefits and bonuses

855,435

835,482

Provision for bonuses
Provision for bonuses for directors (andother officers)
Retirement benefit expenses
Provision of allowance for doubtful
accounts

175,655

111,626

1,407

1,400

32,90836,352

6,332

33,716- 16 -

(Notes Related to Quarterly Consolidated Statements of Cash Flows)* The correlation between the balance of cash and cash equivalents at the end of the current consolidated second
quarter and the amounts shown for the corresponding items on the quarterly consolidated balance sheets is asfollows.
Previous consolidated
cumulative second quarter(From April 1, 2022
to September 30, 2022)
Cash and deposits
Time deposits with a deposit term of
more than three months
Securities (Money management fund)Cash and cash equivalents

I(Thousands of yen)
Current consolidated
cumulative second quarter(From April 1, 2023
to September 30, 2023)

20,819,010

18,796,244△752,025△590,000

43,443－

20,110,428

18,206,244(Notes Related to Shareholders’ Equity, etc.)
Previous consolidated cumulative second quarter (From April 1, 2022 to September 30, 2022)
1. Dividends paid

(Resolution)

Class ofsharesOrdinary General
Meeting of
Shareholders ofJune 28, 2022

Common stock

Total amount ofdividends(Thousands ofyen)

Dividend
per share(Yen)

3,006,166

90.00

Record date

Effective
date

Source ofdividends

March 31, 2022

June 29, 2022

Retained earnings

Note: “Total amount of dividends” includes dividends of 7,974 thousand yen on the Company’s shares which atrust account for employee stock ownership plan holds.
2.

Significant changes in the amount of shareholders’ equity

The Company bought back 624,400 shares upon a resolution by the Board of Directors held on May 12, 2022. As a result,
the treasury shares increased 749,999 thousand yen in the current consolidated cumulative second quarter and amounted to
1,006,307 thousand yen as of the end of the current consolidated second quarter.

II Current consolidated cumulative second quarter (From April 1, 2023 to September 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.
2.

Dividends whose record date belongs to the current consolidated cumulative second quarter but
whose effective date is subsequent to the end of the current consolidated cumulative second quarter(Resolution)

Class ofsharesBoard of Directors’Meeting ofAugust 3, 2023

Common stock

Total amount ofdividends(Thousands ofyen)

Dividend
per share(Yen)

Record date

Effective
date

Source ofdividends

664,390

20.00

September 30,
2023

December 4,
2023

Retained earnings

Note: “Total amount of dividends” includes dividends of 1,654 thousand yen on the Company’s shares which atrust account for employee stock ownership plan holds.

- 17 -

(Segment Information, etc.)[Segment Information]
I Previous consolidated cumulative second quarter (From April 1, 2022 to September 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
Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

Sales
Sales to external
15,384,440
4,010,805
1,254,676
2,181,406
22,831,329
162,684
22,994,013
customers
Inter-segment
－
－
－
－
－
434,860
434,860
sales or transfers
Net sales
15,384,440
4,010,805
1,254,676
2,181,406
22,831,329
597,544
23,428,874
Segment profit or
1,360,339
595,00752,547574,404
2,582,299
90,346
2,672,646
loss ()Note:
The column “Other” represents business operations that do not fall under any of the reportable segments and includes
the related goods sales, the logistics-related operations and other businesses, etc.

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

2,582,299

Profit in the category “Other”

90,346

Elimination of inter-segment transactions

4,319

Unallocated corporate expenses (See Note)△748,729

Adjustment of inventories△66,417
Operating profit shown on the quarterly
1,861,818
consolidated statements of income
Note: Unallocated corporate expenses are mostly general and administrative expenses that are not attributable toany 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 its memorandum value and showed the relevant amount of its loss to extraordinary losses as
impairment losses.
In this regard, the amount of the relevant impairment losses shown in the current consolidated
cumulative second quarter is 11,813 thousand yen.

- 18 -

II Current consolidated cumulative second quarter (From April 1, 2023 to September 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
Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

Sales
Sales toexternal
11,725,893
5,101,193
1,232,897
1,677,607
19,737,592
157,888
19,895,480
customers
Inter-segment
sales or－－－－－
448,088
448,088transfers
Net sales
11,725,893
5,101,193
1,232,897
1,677,607
19,737,592
605,977
20,343,569
Segment profit△209,966
571,906
113,641
420,641
896,222
99,319995,541(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

896,222

Profit in the category “Other”

99,319Elimination of inter-segment transactions

3,271

Unallocated corporate expenses (See Note)△815,855

Adjustment of inventories△13,142
Operating profit shown on the quarterly
169,814consolidated 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 its memorandum value and showed the relevant amount of its loss to extraordinary losses as
impairment losses.
In this regard, the amount of the relevant impairment losses shown in the current consolidated
cumulative second quarter is 6,557 thousand yen.

- 19 -

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

Reportable segment

Goods transferred
at a point in time
Goods transferredover time
Revenue fromcontracts withcustomers
Other revenue
Net
sales
to
externalcustomers

Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

15,384,440

1,858,192

1,254,676

1,259,039

19,756,348

162,684

19,919,033－

2,152,612－

922,367

3,074,980－

3,074,980

15,384,440

4,010,805

1,254,676

2,181,406

22,831,329

162,684

22,994,013

－

－

－

－

－

－

－

15,384,440

4,010,805

1,254,676

2,181,406

22,831,329

162,684

22,994,013

Note: The column “Other” represents business operations that do not fall under any of the reportable segments andincludes the related goods sales, the logistics-related operations and other businesses, etc.
Current consolidated cumulative second quarter (From April 1, 2023 to September 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
Net
sales
to
externalcustomers

Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

11,725,893

2,641,895

1,232,897

1,015,897

16,616,583

157,888

16,774,472－

2,459,297－

661,710

3,121,008－

3,121,008

11,725,893

5,101,193

1,232,897

1,677,607

19,737,592

157,888

19,895,480

－

－

－

－

－

－

－

11,725,893

5,101,193

1,232,897

1,677,607

19,737,592

157,888

19,895,480

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

- 20 -

(Per Share Information)
The amounts of Basic earnings per share and diluted earnings per share with their respective bases of calculation
are as follows.
Previous consolidated
cumulative second quarter(From April 1, 2022
to September 30, 2022)(1) Basic earnings per share

Current consolidated
cumulative second quarter(From April 1, 2023
to September 30, 2023)

77.37 yen

17.02 yen

2,563,524

563,444－－2,563,524

563,444

33,132,891

33,104,555

77.23 yen

17.00 yen－－

58,87735,529(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) Diluted earnings 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 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: The Company’s shares which are shown as treasury share in shareholders’ equity and which a trust account for employee
stock ownership plan holds are included in the number of treasury share excluded in the calculation of the average number ofshares of common stock during the period when basic earnings (or loss) per share is calculated (88,392 shares for the previous
consolidated cumulative second quarter and 84,499 shares for the current consolidated cumulative second 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 August 3, 2023.
(1) Total amount of interim dividends

664,390 thousand 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. The above total amount of the interim dividends includes dividends of 1,654 thousand yen on the
Company’s shares which a trust account for employee stock ownership plan holds.

- 21 -

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

- 22 -

Independent Auditors’ Quarterly Review Report
November 14, 2023
To the Board of Directors of Arisawa Mfg. Co., Ltd.

Ernst & Young ShinNihon LLC
Niigata office
Yoshiyuki Sakuma
Designated Limited Liability Partner and Engagement Partner,

Certified Public Accountant
Ken Takahashi
Designated Limited Liability Partner and Engagement Partner,

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

Auditors make professional judgements and conduct the followings with an attitude of professional skepticism
through a quarterly review process in accordance with the quarterly review standards generally accepted in Japan.
・We principally make inquiries to the management, the persons responsible for financial and accounting matters,
etc. applying analytical procedures and conducting other quarterly review procedures. The quarterly review
procedures are less exhaustive than the procedures for annual financial statement audits conducted in accordancewith 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
are found to contain any matters that would lead one to believe that those are not fairly presented in accordancewith the standards for preparation of quarterly consolidated financial statements generally accepted in Japan basedon the evidence 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 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 dayof 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 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 thepresentation, structure, and contents of the quarterly consolidated financial statements including related notes aswell as the quarterly consolidated financial statements are found to contain any matters that would lead one tobelieve 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 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.