INTEGRATED REPORT 2023
Arisawa Mfg. Co., Ltd.

ARISAWA INTEGRATED REPORT

About Arisawa

Value Creation

Corporate Philosophy

Management Policy

Sustainability

Company Overview

About Arisawa
Corporate Philosophy ……………………………… 1

Arisawa as a business came into being in 1909 with the production of Battenberg lace,

Policies ………………………………………………… 3

where it cultivated expertise that would later attain a new height with the epochal introduction of glass ﬁber.

Global Business Operations ……………………… 4

What followed was a string of novel materials from Arisawa featuring unheard-of properties,

Message from Representative Director ……… 5

to which the company went on to apply innovative technologies.

Value Creation

This process enabled Arisawa to build up coherent production systems and a unique technical edge integrating the"weaving, coating, and molding" elements while consistently fulﬁlling users' needs.

History of Value Creation ………………………… 11

Arisawa's current offerings include, among others, electronic materials for use in PCs,

Value Creation Process …………………………… 13

mobile phones, etc., industrial application structural materials

Management Capital for Value Creation ……… 15
Sources of Value Creation (Business Model)… 17(e.g. honeycomb sandwich panels for use in aircraft interiors), electrical insulating materials, and display materials,

New Initiatives for Value Creation ……………… 18

all of which contribute to the development of various industries.
We at Arisawa Mfg. Co., Ltd. have our mind set on opening a vista for the future as we remain proactive

Management Policy

in our efforts to develop innovative materials.

CIC"Create, Innovate, and Challenge"

Better today than yesterday
better tomorrow than today~ Take a step forward to create a better future ~Sustainability Management ……………………… 19
Mid-Term Management Plan …………………… 21
Businesses / Overview of Each Segment ……… 23
ｰ Electronic Material Segment …………………… 25
ｰ Industrial Structural Material andElectrical Insulating Material Segment ……… 27
ｰ Display Material Segment ……………………… 29
Editorial policy
Since the ﬁrst issuance of an environmental report in
FY2005, the Arisawa Group has provided information
about its social contribution activities through businessin its mid-term management plan and initiatives on
climate change (disclosure based on the framework of
TCFD recommendations).
This integrated report is intended to provide newopportunities for dialogue by presenting stakeholders,
including shareholders and investors, with the company's
initiatives toward the improvement of its corporate value
over the medium to long term.

Sustainability
Environmental Management ……………… 33
EThis report covers Arisawa Mfg. Co., Ltd. and its
domestic and overseas group companies and afﬁliates. In
this report, "Arisawa", "we", "us", or "our" means Arisawa
Mfg. Co., Ltd., and "our group" means the entire Arisawa
Group.

The coverage period is from April 1, 2022, to March 31,
2023, but note that some descriptions may include
activities before and after this period when necessary.

Response to Climate Change …………… 35
Promotion of Circular Economy ………… 37
Human Resource Management ………… 39

Scope of the report

Coverage period of the report1

Financial Strategy …………………………………… 31

S

Occupational Safety and Health ………… 41
Supply Chain Management ……………… 42
Quality Improvement Initiatives ………… 43
Corporate Governance …………………… 45

G

Board of Directors ………………………… 47
List of Ofﬁcers ……………………………… 51

Other reference information

Company Overview

For technical terms, such as our group's products
mentioned in this report, see our website (Technology/Products > Glossary).

Company Proﬁle …………………………………… 53
Stock Overview ……………………………………… 54

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ARISAWA INTEGRATED REPORT

About Arisawa

Value Creation

Management Policy

Sustainability

Company Overview

About Arisawa
Policies

Global Business Operations (As of March 31, 2023)
Sales

Number of employees

Management Policy
On the basis of the motto "Create, Innovate and Challenge", we pledge to:(I) create new values and enhance customer satisfaction.
(II) discover customer demands and create new businesses with our creativetechnologies.

10％

13％

China & Taiwan¥8.6 billion

20％

China & Taiwan
345

FY ended
March 2023

¥42.7
billion(III) strengthen corporate structure by improving our quality and productivity.
(IV)contribute to solving the social and environmental issues, and realize thesustainable growth.

Europe & U.S.
144

Europe & U.S.
¥5.3 billion

24％

Arisawa¥24.4 billion

FY ended
March 2023

41％

1,458

57％

Domestic subsidiaries¥4.4 billion

Our Action Guideline

Arisawa
599

Domestic subsidiaries
370

10％

25％

(I) We compare what we are today with what we were yesterday, rather thancomparing ourselves with others.
(II) We do a job to be proud of in the future as a professional manufacturer with

Global Ofﬁces

a strong will and a humble heart.
(III) We take a step forward to challenge, instead of looking for an excuse ofcannot to do.
(IV)We give the highest priority to safety, and fulﬁll our own roles and responsibilities for zero accidents

Protec Arisawa Europe, S.A.
Protec Arisawa America, Inc.

TopFlex Corporation

ESG Policy

Environmental Policy

In all aspects of our business activities, we actively addresses a variety of issues related toenvironment, society and governance and aims toachieve sustainable growth.

We strive to reduce environmental loads, promote
environmental conservation, and help solve socialand environmental issues in our whole businessactivities, from development and design to manufacturing of electronic materials, industrial structural materials, electrical insulating materials, anddisplay materials, to achieve sustainable growth.

CSR Procurement Policy

Quality Policy

We procure materials in compliance with laws andinternal policies and based on the mutual understanding and trust with our suppliers.

We pledge to supply the high quality product thatmeets the reliability and needs of the customer bystanding in the customer's viewpoint.

ThinFlex Corporation

Arisawa Mfg. Co., Ltd.
(Joetsu Head Ofﬁce and Factories)
Arisawa Fiber Glass Co., Ltd.
Arisawa Sogyo Co., Ltd.
ColorLink Japan, Ltd.
Arisawa Mfg. Co., Ltd.(Tokyo Head Ofﬁce)
Arisawa Jushi Kogyo Co., Ltd.

Arisawa Mfg. Co., Ltd.(Kansai Sales Ofﬁce)
Satosen Co., Ltd.

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ARISAWA INTEGRATED REPORT

About Arisawa

Value Creation

Management Policy

Sustainability

Company Overview

About Arisawa
Message from Representative Director

Being a company that keeps evolving by passing down
the knowledge and technologies cultivated since its
founding to the next generations
Representative Director and CEO

Yuta Arisawa

Background of Issuing
the Integrated Report

Impetus for the Growth of Arisawa

Arisawa as a business came into being in 1909 withSince our foundation, we have developed and offeredtheproductionofBattenberg

lace,

where

it

cultivated expertise that would later attain a newheight with the epochal introduction of glass ﬁber.
Since then, we have produced new products throughresearchanddevelopment

andtechnologicalinnovation to materi-alize our dreams while living up

products and services through trial and error while
listening to the opinions of customers to exceed their
expectations even a little bit. Our mission is topersistently surprise and delight customers by going
above expectations.
We repeatedly attempt to integrate our knowledge

to customers' expec-tations.
Our core technologies are "weaving, coating, andand technologies cultivated since our foundation tomolding", and we thoroughly pursue the correspond-

technologies are something like tacit knowledge, suching

manufacturing,

formulation,

andprovide them as services. Most of these knowledge andprocessing

as experiences and instincts, which is hard to put into

technologies. We have manufacturing sites in Taiwan,

words. However, we itemized and organized all of them

China, European countries, and the U.S. and use

and prepared manuals including speciﬁed manufactur-

various technologies at them to meet worldwide

ing conditions. By sharing this stored explicit knowl-customers' needs.

edge among related departments, we have improved

This is our ﬁrst attempt to issue a periodic integrated report. The ﬁrst issue introduces the sources of

our work environment for all members to appropriately
carry out their tasks.

our corporate culture and our long-term goals andManufacturing and development require patience.

also provides our stakeholders with information about

To address customers' demands, we have conducted

our group's initiatives for the sustainable growth ofsteady experiments. Developing products that fulﬁllsocial contribution and corporate value.

their expectations also requires us to search forvarious possibilities, which may result in unexpectedby-products.These can be called induced accidents.
The reason why we have grown and developed for morethan 100 years must be that we have placed importance on "tacit knowledge" and "induced accidents".

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ARISAWA INTEGRATED REPORT

About Arisawa

Value Creation

Management Policy

Sustainability

Company Overview

About Arisawa
Message from Representative Director
A corporate culture that allows
employees to keep developing
unique technologies

stagnates and begins to lose ground once it is satisﬁed

For 10 years since I became the Representative Director

and encouraging each other based on the spirit of "Betterand CEO of Arisawa, I have managed the company with afocus on "succession and evolution". To keep us surviving
and growing, I always ask all of our employees for somewith the current situation and stops taking steps forward.
Each employee's step is small but when put together will bea huge driving force for the entire company.
If we move forward with all employees working hard
today than yesterday better tomorrow than today", we willkeep evolving towards further prosperity over the next
100 years.

favors.
First, I want them to keep trying new things in theirwork without being afraid of failure. If they fail, theyshould learn from the failure by investigating the cause orreason and do better next time.
Second, they must never stop taking steps forward.
We have a corporate value of "Better today than yesterday
better tomorrow than today". It means that employees
should not compare themselves to others but think thatthey can do better than yesterday, one day at a time. That
is why it is important to repeat trial and error and learn
from failure. Maintaining this corporate culture that allows
for failure can lead us to achieve CIC ("Create, Innovate,
and Challenge")̶the basic motto of our management
policy.
As a river stagnates when it stops ﬂowing, a company

Reaching out for new demands
Regardingthesocialenvironment

surroundingus,

economic activities have been resumed by easing restrictions on people's activities during the spread of COVID-19
infections. However, there is still an uncertain outlook forthe economy due to the continued high prices of energy
and raw materials amid the prolonged Ukrainian crisis andthe weaker yen, global inﬂation, and demand decline in the
Chinese market.
Especially, electronic materials, one of our group's
main business ﬁelds, have been affected by the downturnin demand for PCs and smartphones since the latter half of
FY2022 partly due to the rebound of stay-at-homedemand. Meanwhile, the slump of the aircraft industry due

markets where our technologies can be leveraged forto the COVID-19 crisis hit the bottom, and the demand forfurther expansion.

honeycomb sandwich panels for use in aircraft interiors is
beginning to pick up again.

By regarding environmental issues as important, we
will also drive initiatives for the renewable and new energy

In the electronic material ﬁeld, smartphones are

ﬁelds and increase the percentage of products thatgetting wider and thinner and gaining improvements suchcontribute to saving energy and resources. To achieve ouras a longer battery life. Other features are also expectedannounced goals (Scope 1 and 2) of carbon neutrality by

to be available in the future, such as faster communica-

2030, we promote the procurement of green energy,

tions, IoT devices, and touch-free operation devices. To

energy-saving equipment, and the use of solar energy

address such demand, we are working hard to be the ﬁrst

generation (onsite PPA).

in the industry to develop high-grade products.

The update and replacement timings of existing

Looking at the global market trend in the medium tosystems are business opportunities for us. To quickly

long term, we assume that the demand is highly likely torespond to new demand from customers and predictrise. We will increase our presence not only in the informa-potentially increasing demand, we need to improve exist-

tion device ﬁeld, which has a short life cycle of producting products and always sow the seeds of new products. I

models, but also in the next-generation mobility ﬁeld,

tell the research and development team members to spend

including electric vehicles, for long-term and stable

15 percent of their working hours studying what they like.

growth. Regarding an entry to the next-generation mobili-Free study stimulates employees' intellectual curiosity,

ty ﬁeld, the same process of using obtained information

hopefully leading to innovation. For example, if there isfor material development is applicable, so I believe that we

one good idea out of 50 ideas submitted, I think it iscan leverage our experience and knowledge. However,enough.

since this ﬁeld requires more endurance and reliability

Another means of company growth is M&A. M&A

than the information device ﬁeld, we will consider theallows us to offer new lineups of technologies andentry after strengthening collaboration with businessproducts for continued growth as a group. Whether topartners and receiving advice from them.

implement M&A or not relies the most on the existence of

For aircraft materials, we are developing ones to be"a synergistic effect with the strengths of our business".

certiﬁed as next-generation aircraft materials. As well as

The important thing is not to bring us short-term proﬁts

developing and offering lighter and stronger materials

but to improve our corporate value in the long term. Newly

while in compliance with strict safety standards, we will

joined group companies ThinFlex and Protec have steadilyurge not only large but also small and medium-sizedshown a synergistic effect and supported the growth ofaircraft manufacturers to adopt the materials.

our group, which I am conﬁdent are examples of M&A

Even in the life science ﬁeld, which continues strong

success.

growth, such as water treatment, we will tap into new
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ARISAWA INTEGRATED REPORT

About Arisawa

Value Creation

Management Policy

Sustainability

Company Overview

About Arisawa
Message from Representative Director
Growing for the next 100 years"seriousness" or "honesty," but everyone must have a
different impression. If I am asked to describe Arisawa in aWith support from various stakeholders, including clients,
suppliers, shareholders, and local community members, aswell as the efforts made by our predecessors, we havedeveloped and supplied materials required in the times,
contributing to society. Consequently, we have grown insize to a company listed on the Prime Market with over
1,400 employees in total as a group. This is due entirely tothe cooperation of many people involved in our businesses. Let me sincerely thank all of them again.
The environment surrounding us was not entirely
smooth sailing. Our executives and employees are serious,
sincere, honest, patient, and hungry for challenges. I
would say that a strong relationship of mutual trust
between executives, employees, and stakeholders helped
us overcome various crises to survive in the industry. We
are a technology-based company with long-cultivatedunique technologies of "weaving, coating, and molding" ascore competencies. In the competitor value chain ofelectronic and industrial structural materials, nothing cantake the place of the current relationship, where we are
ﬁrst provided with demand and proposal of new materials
for prototyping from clients and for development frommaterial manufacturing partners. To maintain this healthybusiness cycle, it is crucial for us to keep investing inresearch and development and human resources even in
tough times.
For investment in human resources, which is important as well as research and development, we provide
frameworks and opportunities that encourage employees
to be more ambitious. A key factor could be increased
engagement, such as creating a better work environment
where the curiosity of employees is respected to maximize
their capabilities and stimulating internal communication.
We will invigorate the entire workplace by actively hiringexperienced personnel and having women play more
active roles while cherishing traditionally good things.
We take pride in selling not only "products" but also"reliability". Selling "reliability" means that we deliver"relief" along with "products" to customers. "Relief" meansthat we ﬁrst continuously provide the promised performance (speciﬁcations) and then stably supply the quantity needed by customers whenever needed. Keeping doing
such simple and basic things faithfully makes "products"
and "reliability" inseparable, resulting in the safe delivery
9of "relief". I believe this is what the Arisawa brand offers.
Together with our employees, I would like to secure thetrust of customers, continuously receive orders fromthem, and keep offering high-quality products to them.
Last of all, let me speak about our governance. To
strengthen the management monitoring, we have appointed a new Board of Directors with a majority of independent
outside directors. Five of six Nomination and Compensation Advisory Committee members are also independent
outside directors, and even the chairperson is an independent outside director. We chose persons who can complement the skills our executives do not have according to the
published skill matrix. The skill matrix revealed our need toenhance the knowledge of ﬁnancial markets, so we spent
three years to ﬁnd a new director who is familiar withﬁnance. She started serving as a director this ﬁscal year(2) Implications of the word "Pieces"

I asked myself what our predecessors have made. My

word, I would not be able to ﬁnd the right one for a while.

answer is that they have created value for customers. The

To contemplate our brand again internally, we launched aengineering division creates new value, the manufacturing

rebranding project, by taking advantage of the senses anddivision materializes that value, and the technical divisionintellectual abilities of young employees, who will playprovides the value to customers. This is what we haveactive roles in the company in the years to come.

persistently done for more than 100 years. I had theThis year marked the 114th anniversary of Arisawa.

project team members come up with a new slogan thatIn these long years of history, we posted an unconsolidat-

expresses the mission of passing this tradition down to theed operating loss for the ﬁfth straight ﬁscal year. Howev-

next generations. It is "Where Future Pieces Arise".

er, we overcame such a crisis situation and have conduct-

This slogan represents that unique pieces (materials

ed corporate activities with vitality. This could be attribut-

and parts) are born and raised in this company and shaped

ed to our corporate culture persistently established by our

into high-tech products that support a better future. It

predecessors, unique technologies, and high-quality

also implies huge responsibilities attached to us as the

products, all of which are built on our underlying motto

front-runner of product-making and our commitment tocalled CIC ("Create, Innovate, and Challenge") - some-the continued advancement of technology.

thing like our DNA. This DNA, which has supported ourThis logo renewal is only the beginning of ourhistory of more than 100 years, must be passed down torebranding. The logo is a tool and just one piece ofthe next generations.

rebranding us. It is not easy to have our new brand pene-

Society is ever-changing, and we need to change,

trate the market. The important thing is that we help makeaccordingly. To rebrand the company, we ﬁgured out

people's lives better through our daily work. The pieces we"what should not be changed" and "what should bemade are built into various end products, such as aircraftchanged". In the end, we decided to change brand expres-interiors, smartphones, and tablets. Our products aresion while maintaining our long-inherited CIC spirit. The

rarely recognized by users. Therefore, another purpose ofrenewal of our corporate logo is just one of the approach-

our rebranding project is to let our employees take pride in

es for rebranding, hopefully leading to the establishment

doing behind-the-scenes jobs as "unsung heroes".

and widespread of our brand image sooner or later.

and has already provided us with valuable opinions. The
enhanced monitoring allows management with a sense ofserious purpose.
I am sure that we will have a bumpy road ahead. Our
products must become the foundation of advanced
technology, contributing to creating a better future. To
keep our business activities growing permanently over the
next 100 years as a public entity of society, we will makefurther efforts to aim higher.

About rebranding
We renewed our corporate logo on April 1, 2023. (SeeRebranding on page 16.)(1) "What should not be changed" and"what should be changed" There was

There was an opportunity to think about what is themost characteristic of the Arisawa brand. It may be
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