ARISAWA INTEGRATED REPORT

About Arisawa

Value Creation

Management Policy

Sustainability

Company Overview

Value Creation
History of Value Creation
Arisawa has contributed to society for 114 years by developing its unique technologies of "weaving, coating, and molding".
1900

1950
●1909 Tomitaro Arisawa establishes company making Battenberg lace.
●1919 Renames Company to Nihon Braid Co. Ltd.

Starting "weaving" technology

Arisawa at the time of its foundation

Battenberg lace

●2002 Arisawa Mfg. Co., Ltd. stock is listed in the 1st Section of the Tokyo Stock Exchange.

●1961 Stock is listed on the 2nd Section of the Tokyo Stock Exchange.

Nihon Braid Co. Ltd. is reorganized to
become Arisawa Seisakusho, a privately
managed ﬁrm owned by Tomitaro Arisawa.

●1931 Launches production ofelectrical insulating tape.

●1934 Launches mass

production of fastener tape.

Weaving

Second foundation
From "weaving" to "coating" and then to "molding"In 1949, Arisawa Seisakusho became Arisawa Mfg. Co., Ltd. andintroduced the glass cloth manufacturing equipment, which became a major
turning point for the company. After entering the glass tape fabric market,
the company started testing the production of glass cloths for laminates in1951. This helped the company develop its "weaving" technology.
The company launched the testing of "coating" technology around thesame time and started the mass production of glass cloth products withsilicone rubber applied in 1958, which it can be said was the beginning of its
full-scale coating business.
In 1961, immediately after being listed on the 2nd Section of theTokyo Stock Exchange, the company started producing not only impregnated paper for decorative boards and ski sheets but also products made by
applying its "molding" technology such as ﬁlament winding and pultrusion.
The company also launched the prototyping of reﬂective aluminum screensat the request of Sony and started their shipments in 1972. They became
the company's primary business, which deﬁned one of its key moments.
By not only improving the basic technologies of "weaving, coating, andmolding" but also integrating them and even introducing another technologyof "combining", the company has produced products that meet the requirements of the times. The major products include polarizing ﬁlms, materials for
ﬂexible printed circuit boards, honeycomb sandwich panels for aircraft,
Fresnel lenses, and 3D ﬁlters.

●1946 Expands electrical insulating tape production facilities.
●1949 Begins technological development activities for the production of glass cloths.
●1950 Launches production of glass and synthetic ﬁber cloths.
●1951 Launches test weaving of glass cloths for laminates.

Second foundation

The history of Arisawa began in 1909 with the production and sales ofBattenberg lace. As it is said that more than 7,000 people of about 27,000
people of Takada City (presently part of Joetsu City) were engaged inBattenberg lace making, this company's foundation coincided with thetrend.
In the same year, the company was renamed Nihon Braid Co. Ltd.,
which inspired the company's original logo "NB". In 1910, the company
established Toyo Braid, a joint-stock company that domestically produces
braids (fabric tapes)−the basic material for Battenberg lace−which were
imported before then, leading to the invention of "weaving" technology.
The company had 800 weaving machines and 600 artisans at its peak andwas renamed again to Nihon Braid in 1919.
Affected by the aftermath of the Great Depression, Nihon Braid wasforced to be reorganized due partially to the rise of low-priced Chinese
Battenberg lace. When Nihon Braid was reorganized to become a privately
managed ﬁrm, Arisawa Seisakusho, in 1930, Japanese industries were at
the bottom.However, as the encouragement policy set by the Japanese
government for such domestic products as electrical insulating tapes
provided a supportive backdrop, the company gained top-rating clients,
such as Toshiba and Mitsubishi, and established the foundation of what
Arisawa is today. There was also a time when the company was boosted by
fastener tapes --other narrow woven fabrics.
During World War II, the company shifted its main production toelectrical insulating tapes and fabrics for military use to get through thetough times.

●1949 Company becomes Arisawa Mfg. Co., Ltd. Tadaichi Arisawa becomes President.

●1930

First foundation

First foundation

2000●1967 Builds glass cloth processing factory.

●1954 Sets up resin processing department; and begins research of silicone rubber processing technology.
●2008 Opens new facilities for 3D ﬁlter X-pol.
●1958 Expands production facilities for glass cloth silicone rubber and glass tubes.
●1959 Launches mass production of prepregs and varnished clothes.
●2020●1981 Launches production of materials for ﬂexible printed circuit boards.
Launches mass
●1965 Launches mass production of impregnated paper for decorative boards.
production of titanium
foil with ultra-thin●1975 Launches production of mica tape for heat-resistant/ﬁreproof electric wires.
lubricant applied.
●1980 Launches production of polarizing ﬁlms.

Coating●1953 Launches research activities for the production of skis using reinforced plastic.
●1957 Announce trial production of glass ﬁber skis.
●1984 Launches mass production of honeycomb sandwich panels for aircraft.
●1985 Establishes screen manufacturing factory for Fresnel lens production.
●1969 Launches ﬁlament winding operations.
●1998 Establishes new facilities for the production of optical lens sheets.
●1971 Launches production of ski sheets.
●1972 Launches production of pultrusion moldings.

Launches mass production of reﬂective aluminum screens.

Molding●1978 Launches research activities for carbon ﬁber composite materials.

History of the major afﬁliates
ThinFlex / TopFlex 2009
Satosen 2017
Arisawa Fiber Glass 2000
Protec Arisawa Europe / Protec Arisawa America 2010
Arisawa Sogyo 1974
Arisawa Jushi Kogyo 1966
Polatechno 1991

Glass cloth warping factory

Transition of sales

2019
ColorLink Japan 2007

Honeycomb sandwich panels(In 100 millions of yen)

Yuta Arisawa
becomes President

700
600
500

President Tadaichi Arisawa
reorganizes to Arisawa Mfg. Co., Ltd.

Eiichi Arisawa
becomes President

Sanji Arisawa
becomes President

400
Shuichi Minowa
becomes President

300
200
100
0

11

1950

1960

1970

1980

1990

2000

2010

2020

12

ARISAWA INTEGRATED REPORT

About Arisawa

Value Creation

Value Creation

Arisawa started its business with the making of one braid about 100
years ago. We at Arisawa have supported various kinds ofproduct-making by developing products using glass ﬁber and othernew materials and innovating technologies in response to the needsof the times. With responsibility and pride as a company involved in
the initial stage of product-making, we will move forward moresmoothly and actively to change product-making around the world
for the better in the next 100 years.
Our group's current major product segments include electronicmaterials, industrial structural materials, electrical insulating
materials, and display materials. Through value-creation activities tosupport these segments, we offer products and services that help
people have richer lives. We are committed to creating social andeconomic values by tackling the four issues "contribution to a
decarbonized society", "development of diversiﬁed human resources
and improvement in job satisfaction", "promotion of circular
economy", and "enhancement of governance" through activities to bea strong company that can achieve sustainable growth.

-Climate change -Resource depletion -Ecosystem collapse-Tightening of regulations -Diversiﬁcation of values and lifestyles-Aging society -Divisions of the supply chain-Exposure of human rights issues -Mobility of workplaces-Progress of innovation -Exposure of geopolitics and cyber risks

Manufactured
capital

P.15〜16

Manufacturing and processing
facilities covering from productionof many models in small quantities
to mass production
A global production system

データ待ち

Financial capitalRaw materials such as chemicalmaterials and organic solvents(amount of purchased materials)[FY2022: 9,009 t]

Stable andhigh-level dividends

Contribution to a
decarbonized society

Employees

Better today than yesterday

Stable cash ﬂow
generation capability

Material processing technologies
with the basics of"weaving, coating, and molding"A relationship of trustwith customers based on records

An in-house control systemand control know-how
Tacit knowledge transferred
across departments
and products

Social & relationshipcapitalHuman capital
Consolidated numberof employees 1,458
A persistent corporate
culture with achallenging spirit

A network with about
1,000 suppliers with abroader range of service

Financial
perspectives

・Improvementin addedvalue
・Improvement
in corporate
value

Environmental
perspectives

Improvement incustomers' productivity

・Realization of adecarbonized andrecycling-basedsociety・Maintenanceof biodiversity

Our sustainable growth・Super smart
society×+ Achievement ofwell-being for employees

・Commercialization of next-generation mobility

Appropriate evaluationand treatment based on
performance
Stable livelihood
Relief for future

Contribution to
innovation forcustomers' products

Solving social andenvironmental issues

Socialperspectives

Skill learning andimprovement
opportunities(growth opportunities)

CI C"Create, Innovate,

Customers

・Development ofcustomers'
businesses

Easy-to-work andworker-friendly
workplaces

Enhancementof governance・Networking society that connects all people
・Vigorous community andsafe and sanitary living

Local and international societies

Naturalenvironment
Realization of
next-generationenergy contributing
to decarbonization
Environmental loads
due to unrecyclable
waste(negative effects)

Contribution to local economies
through employment and procurement

Development of local society through tax payment
Vitalization of intra-community exchanges
and improvement in local brand value
Safe and secure water and less burdenof medical expenses on patientsand Challenge"

better tomorrow than today❸Products contributing
to a sustainable future（Output）

A robust balance sheet

Intellectual capital

Improvement inshareholder value

Promotion of
circular economy

Natural capital
Energy (crude oil equivalent)[FY2022: 15,432 kL]

Stable and continuous transactions

Shareholders
and investors

P.19〜20❶Management Capital（Input）

Company Overview

Added value generated only throughcollaboration with us❺Materiality / ESG Policy

Development of diversiﬁed
human resources andimprovement in job satisfaction

Sustainability

Suppliers❹ Value Provision（Outcome）

External environments (social issues)

Value Creation Process

Management Policy❷ Competitive advantages
and business model evolution
A mastered processing
production that integrates"weaving, coating,and molding"■Independence from therelated manufacturer
groupsA centralized system
to allow quick response

Next-generation
mobility

Smartphones and tablets

Support for EVs,
FCVs, and self-driving

Fast communications

Aircraft weight saving

Contribution to
IoT society

Contribution to
next-generationtransportation devices

Life science■Development andmanufacturing functions
centralized for quick
integration

Flexible
response toenvironmental ■Integrated production of"weaving, coating,change■An integrated processing
and molding" withproduction of "weaving,
fast feedback to eachcoating, and molding" toprocess
enable compound development■Quick decisionmaking
and manufacturing
by top executive

Existing businesses utilizing＋
competitive advantages

Information
deviceMedical ﬁeld displays

Structural materials forwater processing
and disaster measures

New energy for decarbonization

New challenge
for environmental
changeInnovative new businesses
based on the CIC spirit

Evolution of the mid-term model● Evolution into a proposal-based business through active discovery of needs● Evolution into an industry front-runner leading toward a decarbonized society● Evolution into "weaving, coating, and molding" + "combining"● Evolution into a global manufacturer from Joetsu to the world

13

14

ARISAWA INTEGRATED REPORT

About Arisawa

Value Creation

Management Policy

Sustainability

Company Overview

Value Creation
Management Capital to Support Value Creation

Social capital

Natural capital

Based on the relationship of trust with suppliers, we grasp the

In the manufacturing process, we introduce renewable aenergy,

advanced procurement of risk materials. We have also diversiﬁed

resource use, and waste disposal.

circumstances of each industry and take such measures asWith the capital built up through repeated growth as our foundation, we will further increase our competitive advantages.
While evolving the value creation process through business strategy management and active initiatives on ESG issues, weraise our corporate value.

procurement with respect for human rights, labor rights, and theenvironment while ensuring material quality and stable supply
allows high-quality and stable product-making. With the importance placed on continuous partnership with suppliers based on

Financial capital

Manufactured capitaltrust, we conduct procurement for mutual sustainable growth.

We have not only working capital but also ﬁnancial capital that

We use facilities that can produce many models in small quanti-

weaving technology, we sincerely focused on prototype-making

allows stable and ﬂexible operation to implement capital investment, M&A, and DX investment for growth as necessary. Major

ﬁnancial resources are ﬂexibly gained from cash ﬂow fromoperating activities and borrowings from ﬁnancial institutions.

We set an ROIC goal of 6 % in our mid-term management

plan, aiming for proﬁtability enhancement and capital efﬁciency

improvement. Speciﬁcally, we ﬁrst maintain a healthy cash ﬂow
through business and secure ﬁnancial soundness, and thenactively allocate the capital to new business investment andresearch and development investment for further growth. We will
return the resulting surplus appropriately to our stakeholders.

At the time of our entry into the FRP ﬁeld, when we only hadties to better cater to various customers' needs. With facilities

to materialize requests while being given technical advice by

expansion of the scale of customers' businesses and an integrat-a strong relationship of trust with clients. A person from a trading

inspection, we deliver advanced quality control and stable

ment store of prototypes." We would like to cherish the relation-

production facilities achieves production efﬁciency improvement

prototyping phase, which is a great asset to us.

that can handle medium to mass production to respond to theheavy electric manufacturers. These experiences helped us build

ed production system, from earlier and post-processes tocompany once told me, "Mr. Arisawa, your company is a depart-

supply. In addition, in-house development of a control system forSince our foundation, we have improved our core technologies of"weaving, coating, molding", and "combining" through trial anderror to fulﬁll customers' needs.We have many experienced

engineers who have been involved in development to highly
integrate these technologies and optimize the functions.

Our unique technologies made through research anddevelopment with new innovations based on the experiences

50

2.4

25.0

30

17.5

21.6

21.4

22.6

5.3
1.5

6.9

8.2

16.5

14.0

12.0

10.8

2018

2019

2020

2021

0.7

0.8

6.9
0.9

20
10
0

■ Arisawa

0.5
2.0■ Domestic subsidiaries

1.0

2.6

■ Taiwan & China

24.1

2022

process and incorporating our core technologies cultivated oversupported more than 100 years of our history. By integrating

engaged in development can spend 15 percent of their working

hours studying what they like, and also set up a program calledby step through trial and error, we have offered highly reliable
products to customers.

We have multi-skilled operators who can handle various

new products. We will continue to improve the environment so

employed. Turning tacit knowledge into explicit knowledge helps

Research and development costs

1,500

1,432
105

110

1,200

352

367

20
15
10

2.3
2.0

2.1
2.0

15.4

0.4

16.2

19.1
0.2
2.5
1.5

14.9

19.2

19.9

2.6
1.3

2.5
1.4

0.2

15.1

0.7

15.3

5
0

900

■ Arisawa

2019

2020

■ Domestic subsidiaries

2021■ Taiwan & China

2022■ Europe & U.S.

1,454

1,433

1,425

1,458

108

115

144

358

353

345

136.9

2018

2020

2022

■ Surface water■ Underground water

LOGO
Before（ 〜2023.03 ）After（ 2023.04〜 ）"NB" is the design logo of its

The triangle is designed like "A" of Arisawa.

The company stayed long withcore technologies of "weaving, coating, andformer company Nihon Braid.

Its three sides represent the company's

this logo for about 100 years.

molding", and its three colors represent

0"cherry blossoms", "sky and sea", and"mountains and ﬁelds" of Joetsu City.

We put our thoughts into the logo,

hoping to produce something new andunique to Joetsu based on these threetechnologies.

CORPORATE MESSAGE
The value of a great invention or a great product serving our daily life may vary signiﬁcantly, depend-ing on the comprising material or parts. The responsibility of a player in the ﬁrst stage of manufacturing is huge and heavy. Arisawa is fully aware of this.

We manufacture a variety of pieces of material and parts for ﬁnished products that are not visible

Where Future
Pieces Ariseup the continuing advancement of technology, by providing the basis for cutting-edge technology andthe footing for further technological development. Arisawa, in a way, is the ﬁrst runner in a relay of
manufacturing who helps blaze a path to the future.

Such future-oriented pieces will be produced here and form distinctive shapes.

Weaving, coating and molding. That is what we basically do to manufacture our products. While

boosting technological innovation, we strive to be a corporation that pays keen attention to the

373

3363

361

358

370

realization of a society friendly to people and the earth. When the ﬁrst step of manufacturing becomes

602

614

606

599

599

the beauty of nature, Arisawa will continue producing original pieces, dreaming forward to the

2018

2019

2020

2021

2022

600
300

2018

153.6

to many consumers. But they certainly exist as indispensable part of our daily life. Our products shore

Number of employees

25

20.7

0

186.2

The company produces and develops "future pieces" to create its own value.

us build a stronger human network.
(Billions of yen）

0.3

100

171.0

On April 1, 2023, Arisawa renewed its logo and announced the brand message shown below.

development specialists, and many of them have been long(Billions of yen）

20.0

226.9

200

knowledge and technologies cultivated since our foundation step

products, trained operators with adapting capabilities, andthat more new products and businesses are born.

307.9

241.4

honest, patient, and hungry for challenges, which we can say has"the new product development award", which is one of the
incentives to employees who contribute to the development ofRebranding■ Europe & U.S.

Our executives and employees are traditionally serious, sincere,

We established a "15 % culture", where employees

300

0.8

customers' businesses. By understanding the characteristics of

the years, we proceed with obtaining an optimized design.

380.5

44.8

Human capital

products required by customers and the in-house manufacturing

427.6

400

Capital expenditure(Billions of yen）

passed down from senior employees to junior employees are
positioned as important assets that contribute to the growth ofship with clients who contact us ﬁrst in the consideration or

Water resource use
（k㎥）
500

and cost reduction.

40

Intellectual capital

15

suppliers to establish a stable supply chain. Promoting CSR

improve energy use efﬁciency, and reduce CO2 emissions, water

advanced, the world of manufacturing will undergo vast changes.

Located at Takada in Joetsu City, an area under severe winter weather but otherwise blessed with

■ Arisawa■ Domestic subsidiaries■ Taiwan & China

exciting future.

■ Europe & U.S.

16

ARISAWA INTEGRATED REPORT

About Arisawa

Value Creation

Management Policy

Sustainability

Company Overview

Value Creation
Sources of Value Creation (Business Model)
We aim to create a sustainable society and ensure its growth by creating a business model with originality while tackling social issues andthen providing various values to our stakeholders.

Initiatives toward business model evolution
Improvement in sustainable corporate value

Promotion of human resource strategy

To efﬁciently operate business portfolio management for further

To keep offering products and services that exceed the expecta-

scious management with ROIC set as an indicator. As it is import-

strategy that encourages, supports, and nudges motivatedtions of customers and society, we deploy a human resource

improvement in corporate value, we focus on capital cost-con-employees for their growth. We also promote a comprehensive

ant that our management direction is properly understood and

New Initiatives for Value Creation

ARISAWAINNOVATES!
With eyes on the next 100 years

organizational strategy so that employees can work lively under

empathized by our stakeholders, we also provide opportunities

the new Arisawa brand.

for active dialogue.

Enhancement of competitiveness for value creation

Quality improvement

We enhance our competitiveness by creating new value throughUtilizing know-how cultivated through APS (our production

activities targeting new growing markets.

including ones in new ﬁelds.

management system), we will improve our services and quality

the active promotion of carbon neutrality and development

The Innovation Center is scheduled
for completion in December 2024
toward growth for 100 years to comeOur Innovation Center aims to be a base for open innovation where unprecedented newvalue is created through the integration and co-creation of technologies with otherNew value creation and challenge for new ﬁelds through co-creation

Promotion of coexistence and shared prosperity with the environment

We will create new value through co-creation by ﬁnding more

Toward long-term coexistence and shared prosperity withpartners who can share the same empathy through open innova-

society, we promote eco-friendly product and technology

tion. We will also expand our business into new ﬁelds to increasedevelopment to actively create new value.

value proposition for further expansion of corporate value.

companies and research institutes. To achieve this goal, we introduced a design that
stimulates more communication throughout the company.
For example, the ofﬁce ﬂoor for the engineering division is located on the circulation to our cafeteria. To share ideas immediately, a workshop space is installed next to thelaboratory. This center with an open and connected space is designed in the image of an
igloo. By breaking down silos to share one space with people from different departments
and ﬁelds, we create a place where people and ideas come and go.

Direction of business model evolution
We expand the areas of proposal-based business through the active discovery of needs by leveraging the experiences in the existing

business ﬁelds with competitive advantages. We develop needs with our innovative proposals and high-quality product-making based on
the CIC spirit to create new businesses.

Existing
businesses
leveraging
competitive
advantages＋

Innovative

Evolution

new businessesof the mid- to

based on thelong-term

CIC spiritmodel● Evolution into a proposal-based business through active discovery of needs● Evolution into an industry front-runner leading toward a decarbonized society● Evolution into "weaving, coating, and molding" + "combining"● Evolution into a global manufacturer from Joetsu to the world

Perspective drawing of the exterior of the Innovation Center (above-ground 3-story building)1718