QUARTERLY REPORT(The First Quarter of the 74th Term)
From April 1, 2021 to June 30, 2021

(TRANSLATION)

ARISAWA MFG. CO., LTD.

TABLE OF CONTENTS
Page Number
Cover Page
PART I.

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

I. General Conditions of Business ............................................................................................................ 1
1. Changes in Principal Management Indicators, etc. ........................................................................... 1
2. Description of Business..................................................................................................................... 1
II. Status of Business ................................................................................................................................ 2
1. Business Risks, etc. ........................................................................................................................... 2
2. Analyses of Consolidated Financial Position, Business Results and Cash Flows by the
Corporate Managers ...................................................................................................................... 2
3. Agreements with Managerial Implications, etc................................................................................. 3
III. Status of the Submitting Company ..................................................................................................... 4
1. Status of Shares, etc. ......................................................................................................................... 4(1) Total Number of Shares, etc. ......................................................................................................... 4(2) Status of Stock Acquisition Rights, etc. ........................................................................................ 4(3) Status of Exercise of Moving Strike Convertible Bonds, etc. ....................................................... 4(4) Changes in the Number of Shares Issued and Outstanding, Capital Stock, etc. ............................ 4(5) Status of Major Shareholders......................................................................................................... 4(6) Status of Voting Rights.................................................................................................................. 5
2. Status of Directors and Officers ........................................................................................................ 5
IV. Status of Accounting .......................................................................................................................... 6
1. Quarterly Consolidated Financial Statements ................................................................................... 7(1) Quarterly Consolidated Balance Sheets......................................................................................... 7(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income................................................................................................................. 9[Quarterly Consolidated Statements of Income] ........................................................................... 9[Quarterly Consolidated Statements of Comprehensive Income] ............................................... 10
2. Other................................................................................................................................................ 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 10, 2021

Quarterly accounting period:

The First Quarter of the 74th Term (From April 1, 2021 to June 30, 2021)

Company name (Japanese):

Kabushiki-Kaisha Arisawa Seisakusho

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

Name and title of representative:

Yuta Arisawa, President and Representative Director

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

Telephone number:(025) 524-5126

Contact person:

Shuichi Kubota, Operating Officer supervising, Accounting Department

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

Telephone number:(025) 524-5126

Contact person:

Shuichi Kubota, Operating Officer supervising, Accounting Department

Places where copies of this Quarterly Report are

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

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

73rd term
consolidated cumulative
first quarter
From April 1, 2020
to June 30, 2020

74th term
consolidated cumulative
first quarter
From April 1, 2021
to June 30, 2021

From April 1, 2020
to March 31, 2021

10,597

10,78546,439

732

1,060

3,578

428

777

2,160

727

807

3,808

48,766

46,47447,44469,08367,764

67,257(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)73rd term

12.89
23.31
64.94
Fully diluted net income per
12.87
23.28
64.84
share
(Yen)
Equity ratio
(%)
66.5
67.3
68.8
Note: 1. As Arisawa Mfg. Co., Ltd. (hereinafter referred to as either the “Company” or the “Submitting Company”, as the casemay be) prepares the quarterly consolidated financial statements, the changes in principal management indicators, etc.
of the Submitting Company are not stated above.
2. “Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan Statement No.29, March 31,2020), etc. have been applied from the beginning of the current consolidated fiscal first quarter. Principal Management
Indicators, etc. for the current consolidated cumulative first quarter are shown after application of the said AccountingStandards, etc.

2. Description of Business
There was no material change in information regarding the business lines of our corporate group (the Company
and its associated companies; hereinafter referred to as either the “Group” or “our Group”, as the case may be) in
the current consolidated cumulative 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.
“Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan Statement No.29,
March 31, 2020), etc. have been applied from the current consolidated fiscal first quarter.

(1) Financial Position and Operating Results1) Operating Results
The Japanese economy in the current consolidated cumulative first quarter has been greatly affected bystagnant economic activities due to the spreading of the new corona virus infection (COVID-19). Moreover,although vaccination has started as anti-COVID-19 measures, uncertainty about the future is strong amid thesituation where it is unable to predict the timing for the spread of the new corona virus infection to becontained, and it is concerned that the effect on corporate performance is prolonged.
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, due to a steady increase in sales of electronic materials, net sales of 10,785
million yen (representing a 1.8% increase as compared with the year-earlier quarter), an operating income of
1,032 million yen (representing a 37.9% increase as compared with the year-earlier quarter), an ordinary
income of 1,060 million yen (representing a 44.8% increase as compared with the year-earlier quarter) anda profit attributable to owners of the parent of 777 million yen (representing a 81.3% increase as comparedwith the year-earlier quarter).
Along with the application of Accounting Standard for Revenue Recognition, compared to a conventional
method, sales decreased by 1,030,756 thousand yen and operating income, ordinary income and income
before income taxes decreased by 14,706 thousand yen respectively. For details, refer to “IV. Status of
Accounting - 1. Quarterly Consolidated Financial Statements - [Notes] - (Changes in Accounting Policies)”.
Business results with respect to each segment are as follows.
Note that the method for measuring the income or loss of business segments was changed from the current
consolidated fiscal first quarter. For details, refer to “IV. Status of Accounting - 1. Quarterly Consolidated
Financial Statements - [Notes] - (Segment Information, etc.)”.
a. Electronic materials segment
In the electronic materials segment, net sales were 7,664 million yen, representing a 11.2% increase ascompared with the year-earlier quarter, due to a steady increase in sales of materials for flexible printed
circuit boards, etc. (the amount of orders received increased by 0.9%, and the production output increasedby 11.5%, as compared with the year-earlier quarter on a non-consolidated basis of the Submitting Company),
while the segment income or loss recorded a segment income of 959 million yen (a 24.8% increase ascompared 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 1,627 million
yen, representing a 27.0% decrease as compared with the year-earlier quarter, due to a decrease in sales ofmaterials for aircraft, while the segment income or loss recorded a segment income of 173 million yen (a24.7% 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 592 million yen, representing a 5.3% decrease as compared with the year--2-earlier quarter, due to a decrease in sales of insulating materials for heavy electrical machinery, while thesegment income or loss recorded a segment income of 54 million yen (a 14.6% increase as compared withthe 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 769 million yen, representing a 33.9% increase as compared with the year-earlier quarter, due to anincrease in sales of polarization control optical components of ColorLink Japan, Ltd., while the segment
income or loss recorded a segment income of 205 million yen (a segment income of 2 million yen for the
year-earlier quarter).
e. Other (other businesses)
In other businesses, net sales were 131 million yen, representing a 52.5% decrease as compared with theyear-earlier quarter, while the segment income or loss recorded a segment income of 55 million yen (a 0.9%
decrease as compared with the year-earlier quarter).
2) Financial Position
Total assets as of the end of the current consolidated cumulative first quarter were 67,764 million yen,
an increase of 507 million yen compared with the end of the previous year. This was due largely to anincrease of 489 million yen in merchandise and finished goods and an increase of 452 million yen in raw
materials and supplies, a decrease of 517 million yen in cash and deposits.
Total liabilities as of the end of the current consolidated cumulative first quarter were 21,290 million yen,
an increase of 1,478 million yen compared with the end of the previous year. This was due largely to anincrease of 574 million yen in short-term loans payable (including current portion of long-term loans
payable), an increase of 333 million yen in provision for bonuses and an increase of 224 million yen innotes and accounts payable - trade.
Total net assets as of the end of the current consolidated cumulative first quarter were 46,474 million yen,a decrease of 970 million yen compared with the end of the previous year. This was due largely to adecrease of 482 million yen in retained earnings and a decrease of 432 million yen in capital surplus.

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

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

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

(5) Research and Development Activities
The Group’s total expenses for research and development activities incurred in the current consolidated
cumulative first quarter amounted to 439 million yen.
In this regard, there was no significant change in the status of research and development activities of ourGroup in the current consolidated cumulative first quarter.

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

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

Total number of shares authorized to be issued

Common stock

130,000,000

Total

130,000,000

2) Shares issued and outstanding
Number of shares issued
and outstanding as of theend of the first quarter(As of June 30, 2021)

Class

Number of shares issued
and outstanding as of thefiling date of this Quarterly
Report(As of August 10, 2021)

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

Remarks

Common stock

34,490,324

34,490,324

Tokyo Stock Exchange(First Section)

Number of sharesconstituting one
full unit: 100

Total

34,490,324

34,490,324

---

---

Note: The number of shares issued through the exercise of stock acquisition rights in the period from August 1, 2021 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, 2021 toJune 30, 2021
(See Note 1)

Capital stock(Thousands of yen)

Number of shares issued andoutstanding

Legal capital surplus(Thousands of yen)

ChangeBalance

ChangeBalance

ChangeBalance

19,80034,490,324

6,276

7,629,915

6,276

6,741,906

Note: 1. The increases are due to the exercise of stock acquisition rights.

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

-4-(6) Status of Voting Rights
Since the “Status of Voting Rights” as of the end of the current first quarter cannot be stated herein as therelevant entries in the shareholder registry have yet to be confirmed, it is stated based on the shareholder
registry as of the most recent record date (March 31, 2021).
1) Shares issued and outstanding
As of June 30, 2021
Number of shares

Number of voting rights(Units)Remarks

Shares without voting rights

---

---

---

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

---

---

---

Shares with restricted voting rights (Other)

---

---

---

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

Common stock 1,136,100

---

---

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

Common stock 33,262,700

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

Common stock

Category

Number of shares issued and outstanding

332,627---

71,724------34,470,524

---

---

Total number of voting rights held by--332,627--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. 89 shares of treasury stock are included in the row "Shares constituting less than one full unit".

2) Treasury Stock, etc.
As of June 30, 2021
Name and address of shareholder

Number of shares held
Under thenames ofothersFull name or corporate
nameAddress

Arisawa Mfg. Co., Ltd.

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

1,136,100---

1,136,100

3.29

---

1,136,100---

1,136,100

3.29

Total

Under own
name

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

2. Status of Directors and Officers
No applicable matter.

-5-

Total

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, 2021 to June 30, 2021) and the current consolidated cumulative firstquarter (From April 1, 2021 to June 30, 2021) conducted by Ernst & Young ShinNihon LLC under the provisionsof Article 193-2, paragraph 1 of the Financial Instruments and Exchange Act.

-6-

1. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
Current consolidated
first quarter(As of June 30, 2021)

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

13,215,508

12,697,649

Notes and accounts receivable-trade

16,766,218－－

17,049,610

Securities

1,242,430

1,398,297

Merchandise and finished goods

3,896,377

4,385,793

Work in process

2,175,632

2,175,414

Raw materials and supplies

3,026,247

3,478,974

Income taxes receivable

1,415,974

1,415,974

Notes, accounts receivable-trade and contract assets

Other

778,645

706,182

Allowance for doubtful accounts△161,830△158,372

Total current assets

42,355,204

43,149,524

13,217,395

13,377,264

244,870

237,035

10,666,038

10,245,859

Other

788,832

769,857

Allowance for doubtful accounts△14,923△14,600

Total investments and other assets

11,439,946

11,001,117

Total non-current assets

24,902,213

24,615,417

Total assets

67,257,417

67,764,941

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

(Thousands of yen)Previous consolidated
fiscal year
(As of March 31, 2021)

Current consolidated
first quarter(As of June 30, 2021)

Liabilities
Current liabilities
Notes and accounts payable-trade

6,657,426

6,882,215

Current portion of bonds

36,80036,800

Short-term loans payable

3,606,087

3,792,537

Current portion of long-term loans payable

182,724

570,724

Income taxes payable

277,821425,335

Provision for bonuses

535,756

869,676

3,870

975

Other

2,817,772

2,878,159

Total current liabilities

14,118,258

15,456,423

54,40036,000Long-term loans payable

3,761,507

3,957,499

Net defined benefit liability

607,032

594,030

Asset retirement obligations

89,46691,312

Other

1,181,934

1,155,501

Total non-current liabilities

5,694,340

5,834,344

19,812,598

21,290,767

Capital stock

7,623,638

7,629,915

Capital surplus

4,403,396

3,971,325

Retained earnings

33,374,092

32,891,213

Treasury stock△1,159,364△1,159,372

Total shareholders’ equity

44,241,763

43,333,081

1,569,049

1,428,055

Provision for directors' bonuses

Non-current liabilities
Bonds payable

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges△8,237△8,115

Foreign currency translation adjustment

486,242825,948

Remeasurements of defined benefit plans△3,959△201

2,043,095

2,245,686

Subscription rights to shares

193,962

169,152

Non-controlling interests

965,997

726,252

47,444,819

46,474,173

67,257,417

67,764,941

Total accumulated other comprehensive income

Total net assets
Total liabilities and net assets-8-(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income[Quarterly Consolidated Statements of Income][Consolidated cumulative first quarter](Thousands of yen)
Current consolidated
cumulative first quarter(From April 1, 2021
to June 30, 2021)

Previous consolidated
cumulative first quarter(From April 1, 2020
to June 30, 2020)
Net sales

10,597,738

10,785,102

Cost of sales

8,661,599

8,449,150

Gross profit

1,936,138

2,335,951

Selling, general and administrative expenses

1,187,234

1,302,972

748,904

1,032,979

Interest income

75,62247,871Dividends income

44,182

36,273Gain on redemption of investment securities

4,368

34,309Other

39,04836,262

Total non-operating income

163,222

154,716

Interest expenses

29,15728,481

Foreign exchange losses

58,85145,474

Loss on redemption of investment securities

38,697－

Operating income
Non-operating income

Non-operating expenses

Other

52,74053,133

Total non-operating expenses

179,447

127,089732,678

1,060,606

－

1,478

Gain on reversal of share acquisition rights

1,399

37,409Total extraordinary income

1,399

38,887

4,138

4,166

Ordinary income
Extraordinary income
Gain on sales of non-current assets

Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses

4,138

4,166

Income before income taxes

729,939

1,095,327

Income taxes

251,184

268,535

Profit478,755

826,791

Profit attributable to non-controlling interests

50,11849,571

Profit attributable to owners of the parent

428,636

777,220-9-

[Quarterly Consolidated Statements of Comprehensive Income][Consolidated cumulative first quarter]
Previous consolidated
cumulative first quarter(From April 1, 2020
to June 30, 2020)
Profit(Thousands of yen)
Current consolidated
cumulative first quarter(From April 1, 2021
to June 30, 2021)

478,755

826,791

569,862△140,994

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

1,417

122

△338,533

108,914

18,235

3,757△2,353

9,194

248,628△19,005

Comprehensive income

727,383

807,786(Breakdown)Comprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests

825,697

979,812△98,313△172,025- 10 -

[Notes](Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition, etc.)“Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan Statement No.29,
March 31, 2020; hereinafter referred to as the “Revenue Recognition Accounting Standard”), etc. have been
applied from the beginning of the current consolidated fiscal first quarter and the Company recognizes revenue
at the amount expected to be received in exchange for goods or services when control of the promised goods orservices is transferred to customers.
As a result, for transactions where the role of the Company falls under an agent of sales of products tocustomers, the total amount of considerations received from customers have previously been recognized asrevenue, but the method has been changed to recognize revenue at the net amount, subtracting the amount paid
to third parties from the total amount of considerations. In addition, with regard to buy-sell transactions in which
the Company provides parts to suppliers with compensation and bears a repurchase obligation, the amountequivalent to the ending inventory of the provided parts retained by suppliers are recognized as liabilities
pertaining to buy-sell transactions. Furthermore, with regard to buy-sell transactions in which the Company
purchases parts from suppliers and bears a sell-back obligation, sales and cost of goods sold have previously
been recorded at the time of sell-back to suppliers of parts, but the method has been changed to recognize only
the net amount equivalent to processing cost as revenue. Moreover, for sales to some customers, in connection
with transfer of control over assets to customers over time, the method of recognizing revenue over time
according to the progress of manufacture was adopted.
For the application of the Revenue Recognition Accounting Standard, etc., the Company complies with thetransitional treatment set forth in the proviso of paragraph 84 of the Revenue Recognition Accounting Standard.
The cumulative effects resulting from retroactive application of the new accounting policy before the beginningof the current consolidated fiscal first quarter were added to or subtracted from retained earnings at the
beginning of the current consolidated fiscal first quarter and the new accounting policy has been applied fromthe beginning balance; provided, however, that by applying the method set forth in paragraph 86 of the Revenue
Recognition Accounting Standard, the new accounting policy has not been retroactively applied to contracts forwhich almost all revenue has been recognized in accordance with the previous treatment before the beginning of
the current consolidated fiscal first quarter. With respect to contract amendments which were made before thebeginning of the current consolidated fiscal first quarter, accounting treatment was made under the terms ofcontract after all contract amendments were reflected by applying the method set forth in paragraph 86, item (1)of the Revenue Recognition Accounting Standard and the cumulative effects were added to or subtracted fromretained earnings at the beginning of the current consolidated fiscal first quarter.
As a result, in the current consolidated cumulative first quarter, sales decreased by 1,030,756 thousand yen,cost of sales decreased by 1,016,049 thousand yen, and operating income, ordinary income and income before
income taxes decreased by 14,706 thousand yen respectively. The balance of retained earnings at the beginningof the current quarter increased by 39,939 thousand yen.
As the Revenue Recognition Accounting Standard, etc. have been applied, “notes and accounts receivable”
indicated in “current assets” in the consolidated balance sheet for the previous consolidated fiscal year ispresented in “notes receivable, accounts receivable and contract assets” from the current consolidated fiscal firstquarter. In accordance with the transitional treatment set forth in paragraph 89-2 of the Revenue Recognition
Accounting Standards, reclassification has not been made by the new presentation method regarding theprevious consolidated fiscal year. In addition, in accordance with the transitional treatment set forth in paragraph28-15 of the “Accounting Standard for Quarterly Financial Reporting” (Accounting Standards Board of Japan
Statement No. 12, March 31, 2020), the information related to the breakdown of the revenue from contracts withcustomers for the previous consolidated cumulative first quarter was not stated.
(Application of Accounting Standard for Fair Value Measurement, etc.)“Accounting Standard for Fair Value Measurement” (Accounting Standards Board of Japan Statement No. 30,
July 4, 2019; hereinafter referred to as the “Fair Value Measurement Standard”), etc. have been applied from the
beginning of the current consolidated fiscal first quarter. In accordance with the transitional treatment set forth inparagraph 19 of the Fair Value Measurement Standard and paragraph 44-2 of the “Accounting Standard for- 11 -

Financial Instruments” (Accounting Standards Board of Japan Statement No. 10, July 4, 2019), the new accounting
policy set forth in the Fair Value Measurement Standard, etc. was applied prospectively. There is no impact due tothis application.
(Particular accounting treatments applied in preparation of quarterly consolidated financial statements)<Calculation of tax expenses>
Tax expenses are calculated by multiplying the quarterly income before income taxes by an 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.
(Additional information)< Accounting estimates >There was no material change in assumptions and accounting estimates including the timing of the containmentof the new corona virus infection, etc. stated in the Financial Report for the previous business year.
(Notes Related to Quarterly Consolidated Statements of Cash Flows)
Quarterly consolidated statements of cash flows for the current consolidated cumulative first quarter were notprepared. In this regard, the amounts of depreciation (including amortization of intangible assets) for the previous
and current consolidated cumulative first quarters are as follows.
Previous consolidated
cumulative first quarter(From April 1, 2020
to June 30, 2020)
Depreciation(Thousands of yen)
Current consolidated
cumulative first quarter(From April 1, 2021
to June 30, 2021)

486,462

518,219(Notes Related to Shareholders’ Equity, etc.)
I Previous consolidated cumulative first quarter (From April 1, 2020 to June 30, 2020)
Dividends paid
(Resolution)

Class ofsharesOrdinary General
Meeting of
Shareholders ofJune 25, 2020

Common stock

Total amount ofdividends(Thousands ofyen)

Dividend
per share(Yen)

997,370

30.00

Record date

Effective
date

Source ofdividends

March 31, 2020

June 26, 2020

Retained earnings

II Current consolidated cumulative first quarter (From April 1, 2021 to June 30, 2021)
Dividends paid
(Resolution)

Class ofsharesOrdinary General
Meeting of
Shareholders ofJune 25, 2021

Common stock

Total amount ofdividends(Thousands ofyen)

Dividend
per share(Yen)

1,300,039

39.00- 12 -

Record date

Effective
date

Source ofdividends

March 31, 2021

June 28, 2020

Retained earnings

(Segment Information, etc.)[Segment Information]
I Previous consolidated cumulative first quarter (From April 1, 2020 to June 30, 2020)
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 toexternal customers
Inter-segment
sales or transfers
Total

Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

6,890,091

2,231,013

625,577575,207

10,321,889

275,849

10,597,738

－

－

－

－

－

203,767

203,767

6,890,091

2,231,013

625,577575,207

10,321,889

479,616

10,801,506

Segment income
Note:768,601
229,779
47,326
2,626
1,048,334
55,823
1,104,158
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 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

1,048,334

Income in the category “Other”

55,823Elimination of inter-segment transactions

2,230

Unallocated corporate expenses (See Note)△334,670

Adjustment of inventories△22,814

Operating income shown on the quarterly
748,904
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.

- 13 -

II Current consolidated cumulative first quarter (From April 1, 2021 to June 30, 2021)
1. Information on the amount of net sales and income or loss with respect to each reportable segment(Thousands of yen)
Other
Total
(See Note)

Reportable segment

Net sales
Net sales toexternalcustomers
Inter-segment
sales ortransfers
Total

Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

7,664,109

1,627,799

592,168

769,940

10,654,017

131,084

10,785,102

－

－

－

－

－

205,543

205,5437,664,109

1,627,799

592,168

769,940

10,654,017

336,627

10,990,645

Segment income

959,309
173,085
54,241205,851
1,392,488
55,305
1,447,793
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

1,392,488

Income in the category “Other”

55,305

Elimination of inter-segment transactions

4,426

Unallocated corporate expenses (See Note)△394,719△24,521
Operating income shown on the quarterly
1,032,979
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.
4. Information concerning changes, etc. in reportable segments
As stated in Changes in Accounting Policies, the Revenue Recognition Accounting Standard, etc. havebeen applied from the beginning of the current consolidated fiscal first quarter and the accounting method for
Revenue Recognition was changed. Accordingly, the method for measuring the income or loss of businesssegments was changed.
As a result, compared to a conventional method, sales of electronic materials decreased by 602,081
thousand yen, sales of industrial application structural materials decreased by 230,967 thousand yen, thesegment income or loss decreased by 17,572 thousand yen, sales of electrical insulating materials decreased
by 4,588 thousand yen, the segment income or loss increased by 4,666 thousand yen, sales of display
materials decreased by 193,118 thousand yen, and the segment income or loss decreased by 1,799 thousand yen.

- 14 -

(For Revenue Recognition)
Information on the breakdown of revenue from contracts with customers

Current consolidated cumulative first quarter (From April 1, 2021 to June 30, 2021)(Thousands of yen)
Other
Total
(See Note)

Reportable segment

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

Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

7,664,109

1,207,824

592,168

535,495

9,999,596

131,084

10,130,681－

419,975－

234,445654,421－654,4217,664,109

1,627,799

592,168

769,940

10,654,017

131,084

10,785,102

Subtotal

－
－
－
－
－
－
－
Net
sales
to
external
7,664,109
1,627,799
592,168
769,940
10,654,017
131,084
10,785,102
customers
Note: The column “Other” represents business operations that do not fall under any of the reportable segments and includes therelated goods sales, the logistics-related operations and other businesses, etc.

(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, 2020
to June 30, 2020)(1) Net income per share

Current consolidated
cumulative first quarter(From April 1, 2021
to June 30, 2021)

12.89 yen

23.31yen

428,636

777,220－－

428,636

777,220

33,247,643

33,340,548

12.87yen

23.28yen------

51,19047,689(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---

- 15 ----

(Significant Subsequent Events)(Cancellation of treasury stock)
The Company resolved to cancel treasury stock at the Board of Directors’ Meeting of July 29, 2021 under the provisions ofArticle 178 of the Companies Act.

1. The reason for the cancellation: enhancing shareholder returns and improving capital efficiency
2. Class of shares to be cancelled: the Company’s common stock
3. Number of shares to be cancelled: 900,000 shares (2.61% out of the total number of shares issued and outstanding
before the cancellation)
4. Scheduled date of the cancellation: August 31, 2021
(Note)The total number of shares issued and outstanding after the cancellation is 33,590,324 shares (including treasury stock).

2. Other
No applicable matter.

- 16 -

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

- 17 -

Independent Auditors’ Quarterly Review ReportAugust 10, 2021
To the Board of Directors of Arisawa Mfg. Co., Ltd.

Ernst & Young ShinNihon LLC
Niigata office

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
Conclusion of Auditors
We have conducted, under the provisions of Article 193-2, paragraph 1 of the Financial Instruments and ExchangeAct, a quarterly review of the quarterly consolidated financial statements of Arisawa Mfg. Co., Ltd. listed in the “Statusof Accounting” for the consolidated first quarter (From April 1, 2021 to June 30, 2021) and the consolidated cumulative
first quarter (From April 1, 2021 to June 30, 2021) of the consolidated fiscal year from April 1, 2021 to March 31,
2022, consisting of the quarterly consolidated balance sheets, quarterly consolidated statements of income, quarterly
consolidated statements of comprehensive income and notes.
In our quarterly review, no matter has come to our attention that causes us to believe that the above quarterly
consolidated financial statements do not fairly present, in any material respect, the financial conditions of Arisawa
Mfg. Co., Ltd. and its consolidated subsidiaries as of June 30, 2021 and the results of their operations in the
consolidated cumulative first quarter ended June 30, 2021 in accordance with the standards for preparation of quarterly
consolidated financial statements generally accepted in Japan.
Basis for the Conclusion of Auditors
We conducted our quarterly review in accordance with the quarterly review standards generally accepted in Japan.
Our responsibility in the quarterly review standards is stated in “The Responsibility of Auditors in the Quarterly
Review Report of the Quarterly Consolidated Financial Statements.” We are independent of the Company and its
consolidated subsidiaries and fulfill other ethical responsibilities as an auditor.in accordance with the code ofprofessional ethics in Japan. We believe that the evidence we have obtained provides a basis for our conclusion.
Responsibility of Management and Corporate Auditors and Board of Corporate Auditors for the Quarterly
Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the quarterly consolidated financial
statements in accordance with the standards for preparation of quarterly consolidated financial statements generally
accepted in Japan. This includes improvement and operation of such internal control as the management deems
necessary for the preparation and fair presentation of quarterly consolidated financial statements free from material
misstatement, whether due to fraud or error.
In preparing the quarterly consolidated financial statements, management is responsible for assessing whether it is appropriate
to prepare the quarterly consolidated financial statements based on the going concern assumption and disclosing the items regarding
the going concern assumption in accordance with the standards for preparation of quarterly 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 aquarterly review process in accordance with the quarterly review standards generally accepted in Japan.

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

Interest
There exists no special interest between the Company as well as its consolidated subsidiaries and this audit corporation or its
engagement partners which is required to be stated pursuant to the provisions of the Certified Public Accountants Act.
Note:

1. 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.