Summary of Consolidated Financial Results
for the Three Months Ended June 30, 2023
(Based on Japanese GAAP)
Company Name:
Arisawa Mfg. Co., Ltd.
Stock code:
5208
Representative:
Representative Director and CEO:Inquiries:
Director and Senior Managing Operating Officer:
Scheduled date to file quarterly securities report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:Stock exchange listing: Tokyo(URL https://www.arisawa.co.jp/)
Yuta Arisawa
Takeshi Masuda
August 10, 2023
--Yes
No

August 3, 2023

TEL: 025-524-7101(Amounts less than one million yen are rounded down)

1.

Consolidated financial results for the three months ended June 30, 2023
(from April 1, 2023 to June 30, 2023)(1) Consolidated operating results (cumulative)

Three months ended June 30, 2023
Three months ended June 30, 2022
(Note) Comprehensive income:(Percentages indicate year-on-year changes)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen%
Millions of yen%
Millions of yen%
Millions of yen%
9,494 △16.1△247--△172--△201--11,321
5.0
705 △31.7
1,177 11.0
1,167 50.2
Three months ended June 30, 2023: 205 million yen (△86.1%)
Three months ended June 30, 2022: 1,479 million yen (83.1%)
Earnings per share

Three months ended June 30, 2023
Three months ended June 30, 2022

(2) Consolidated financial position
As of June 30, 2023
As of March 31, 2023
(Reference) Total equity:2.

Diluted earnings per share
Yen--35.08

Yen
△6.10
35.11

Total assets
Millions of yen
64,99567,659As of June 30, 2023: 44,286 million yen

Cash dividends
1st quarter-end
Yen
-----

Year ended March 31, 2023
Year ending March 31, 2024
Year ending March 31, 2024
(Forecast)

Net assets
Equity ratio
Millions of yen%
44,33668.1
47,107
69.5
As of March 31, 2023: 47,056 million yen

Net asset per share
Yen
1,338.33
1,422.43

Annual dividends per share
2nd quarter-end
3rd quarter-end
Fiscal year-end
Yen
Yen
Yen
0.00
--90.00
20.00

---

Total

25.00

Yen
90.00
45.00

(Note) Revisions to dividend projections most recently announced: No

3.

Forecast of consolidated financial results for the year ending March 31, 2024
(from April 1, 2023 to March 31, 2024)
Net sales

Six months ending
September 30, 2023
Full Year

Operating profit

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen

20,300

△11.7

300

△83.9

200

45,300

6.0

2,100

△5.7

2,100

(Percentages indicate year-on-year changes)
Profit attributable toEarnings
per shareowners of the parent%

Millions of yen

%

Yen

△91.7

100

△96.1

3.01

△22.7

(Note) Revisions to projections of consolidated financial results most recently announced: No

1,800

△37.0

54.26

* Notes(1) Changes in significant subsidiaries during the three months ended June 30, 2023
(changes in specified subsidiaries resulting in the changes in scope of consolidation): No
New: --(Company Name:)
Exclusion: --(Company Name:)(2) Application of special accounting methods for preparing quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial
statements
1) Changes in accounting policies due to revisions to accounting standards and other regulations:
No2) Changes in accounting policies due to other reasons:No3) Changes in accounting estimates:
No4) Restatement of prior period financial statements:
No(4) Number of issued shares (common shares)
1) Total number of issued shares at theend of the period (including treasury
shares):2) Number of treasury shares at the end of
the period:3) Average number of shares during theperiod (cumulative from the beginningof the fiscal year):(Note)

As of June 30,
2023:

33,547,924 shares

As of March 31,2023:

As of June 30,2023:

456,917 shares

As of March 31,
2023:

Three months
ended June 30,
2023:

33,087,297 shares

Three months
ended June 30,
2022:

33,541,124 shares459,279

shares33,245,408 shares

The shares of the Company (84,600 shares in 1Q of the year ended March 31, 2024 and 87,100 shares in the year ended March 31,2023) held by Custody Bank of Japan, Ltd. (Trust Account) as the trust assets of the “Employee Stock Ownership Plan” are includedin the number of treasury shares at the end of the period.
The shares of the Company held by Custody Bank of Japan, Ltd. (Trust Account) are included in the treasury shares to be deductedin calculation of the average number of shares during the year (85,430 shares in 1Q of the year ended March 31, 2024 and 88,575
shares in 1Q of the year ended March 31, 2023).

* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an
audit corporation.
* Notes regarding the proper use of projections of the results and other matters

Projections of results and future developments are based on information available to the Company at the current time, as well as
certain assumptions judged by the Company to be reasonable. Various factors could cause actual results to differ materially fromthese projections.

Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023

Contents of Attached Materials
1. Qualitative Information Concerning Current Quarterly Closing Announcement(1) Explanation About Operating Results(2) Explanation About Financial Position(3) Explanation About Future Forecast Information,
Including Forecast of Consolidated Business Results
2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(2) Quarterly Consolidated Statements of Income
and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
Consolidated Cumulative First Quarter
Quarterly Consolidated Statement of Comprehensive Income
Consolidated Cumulative First Quarter(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)(Notes in the Case of Significant Changes in Shareholders’ Equity)(Application of Special Accounting Methods for Preparing Quarterly Consolidated
Financial Statements)(Additional Information)(Segment Information, etc.)(Significant Subsequent Events)

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Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023

1. Qualitative Information Concerning Current Quarterly Closing Announcement(1) Explanation About Operating Results
As for the Japanese economy in the current consolidated cumulative first quarter, the economic activity has
been normalized due to COVID-19 infections under the Infectious Diseases Act being changed to be classified
in the Class 5. On the other hand, the future prospects remained uncertain due to the persistent high energy andraw material prices caused by the prolonged situation in Ukraine, the rise in prices caused by global inflationin addition to economic downturn in China.
Under such circumstances, the results of operations of our group for the current consolidated cumulative
first quarter showed net sales of 9,494 million yen (a decrease of 16.1% year-on-year) due to a decrease in salesof electronic materials, which is the main business field of our group, caused by the significant impact fromthe decrease in demand in the Chinese market, despite an increase in sales of industrial application structural
materials. Due to soaring energy costs and raw material prices in addition to the impact of decrease in sales,
the results in terms of profit and loss are as follows: an operating loss was 247 million yen (an operating profitof 705 million yen year-on-year); an ordinary loss was 172 million yen (an ordinary profit of 1,177 million yen
year-on-year); and a loss attributable to owners of parent was 201 million yen (a profit attributable to ownersof parent of 1,167 million yen year-on-year).
Business results with respect to each segment are as follows.
(Electronic materials)
Net sales were 5,408 million yen (a decrease of 30.4% year-on-year) due to a decrease in sales of flexible
printed circuit board materials and glass cloth for printed circuit board, while segment loss was 259 million
yen (the segment profit of 715million yen year-on-year) caused by the impact from soaring energy costs andraw material prices in addition to decrease in sales.
(Industrial application structural materials)
Net sales were 2,653 million yen (an increase of 51.8% year-on-year) due to an increase in sales of water
treatment FRP pressure vessels and honey-comb panel for aircraft, while the segment profit was 239 million
yen (an increase of 193.9% year-on-year).
(Electric insulation materials)
Net sales were 583 million yen (a decrease of 6.8% year-on-year) due to a decrease in infrastructure-related
sales, while the segment profit was 15 million yen (a decrease of 61.5% year-on-year).
(Display materials)
Net sales were 765 million yen (a decrease of 30.0% year-on-year) due to a decrease in sales of 3D-relatedmaterials and polarization control optical components, while the segment profit was 125 million yen (a decreaseof 52.2% year-on-year).
(Other)Net sales were 83 million yen (a decrease of 5.5% year-on-year).

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Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023

(2) Explanation About Financial Position
Total assets as of the end of the current consolidated cumulative first quarter were 64,995 million yen, adecrease of 2,663 million yen compared with the end of the previous fiscal year. This was largely due to anincrease of 515 million yen in raw material and supplies, a decrease of 2,700 million yen in cash and deposits
and a decrease of 496 million yen in merchandise and finished goods, respectively.
Total liabilities were 20,659 million yen, an increase of 107 million yen compared with the end of theprevious fiscal year. This was largely due to an increase of 378 million yen in notes and accounts payable-trade,an increase of 252 million yen in provision for bonuses, and a decrease of 384 million yen in income taxes
payable, respectively.
Total net assets were 44,336 million yen, a decrease of 2,770 million yen compared with the end of theprevious fiscal year. This was largely due to a decrease of 3,187 million yen in retained earnings.
(3) Explanation About Future Forecast Information, Including Forecast of Consolidated Business Results
As for the forecast of business results for the cumulative second quarter and full-year of the fiscal year ending
March 31, 2024, there is no change in the forecast of consolidated business results which was announced on
May 12, 2023.

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Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Thousands of yen)Previous Consolidated
Fiscal Year(As of March 31, 2023)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, andcontract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-

Current Consolidated
First Quarter(As of June 30, 2023)

20,545,580

17,844,727

13,182,106

13,266,855

5,525,035
2,373,079
4,263,762
1,541,170△10,786
47,419,946

5,029,018
2,492,437
4,779,129
906,541△11,89744,306,811

16,446,181
244,197

16,815,102
238,630

2,545,474
1,049,896△45,9693,549,401
20,239,780
67,659,726

2,637,864
1,043,189△45,718
3,635,335
20,689,069
64,995,880

Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023

(Thousands of yen)Previous Consolidated
Fiscal Year(As of March 31, 2023)
Liabilities
Current liabilities
Notes and accounts payable-trade
Current portion of bonds payable
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for product warranties
Provision for bonuses
Provision for bonuses for directors (andother officers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Asset retirement obligations
Provision for share awards
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeShare acquisition rights
Total net assets
Total liabilities and net assets-5-

Current Consolidated
First Quarter(As of June 30, 2023)

5,213,263
16,8005,056,253
1,843,441
658,615
42,184
526,795

5,591,394
19,2005,031,148
1,653,223
274,463
39,337
778,927

2,162

665

2,917,188
16,276,705

3,278,077
16,666,438

2,723,471
700,883
97,11950,449703,383
4,275,306
20,552,012

2,539,545
663,551
97,37253,513
638,679
3,992,662
20,659,100

7,847,873
3,198,618
34,293,471△512,975
44,826,987

7,851,826
3,202,571
31,106,458△510,821
41,650,035

466,417556,610△13,657
1,904,093△127,370△11,2122,211,297△120,047

2,229,483

2,636,648

51,243
47,107,714
67,659,726

50,09544,336,779
64,995,880

Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated Cumulative First Quarter)(Thousands of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss (△))
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using
equity method
Other
Total non-operating expenses
Ordinary profit (loss (△))
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Other
Total extraordinary losses
Profit (loss (△)) before income taxes
Income taxes
Profit (loss (△))
Profit attributable to non-controlling interests
Profit (loss (△)) attributable to owners of parent

Previous Consolidated
Cumulative First Quarter(From April 1, 2022
to June 30, 2022)
11,321,623
9,215,011
2,106,611
1,400,776
705,835

Current Consolidated
Cumulative First Quarter(From April 1, 2023
to June 30, 2023)
9,494,400
8,333,617
1,160,782
1,408,554△247,772

41,93040,106
378,779
62,894
523,710

20,42019,59788,06830,801
158,888

30,554

43,387－28,55821,64752,202
1,177,344

11,877
83,823△172,707

461
506,977
1,479
508,917685
28,101－
28,786781－
51,22352,004
1,634,257
464,423
1,169,834
2,465
1,167,368

24,695
3,181－
27,877△171,798
30,009△201,807－△201,807-6-

Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023

(Quarterly Consolidated Statement of Comprehensive Income)(Consolidated Cumulative First Quarter)

Profit (loss (△))
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests(Thousands of yen)Previous Consolidated
Cumulative First Quarter(From April 1, 2022
to June 30, 2022)
1,169,834

Current Consolidated
Cumulative First Quarter(From April 1, 2023
to June 30, 2023)△201,807△92,785

90,192

2,633
391,234
1,442

2,445
308,806
7,323

6,762

△1,602309,287
1,479,121

407,164
205,357

1,498,263

205,357△19,142－-7-

Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023

(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
No applicable matter.
(Notes in the Case of Significant Changes in Shareholders’ Equity)
No applicable matter.
(Application of Special Accounting Methods for Preparing Quarterly Consolidated Financial Statements)(Calculation of Tax Expenses)
Tax expenses are calculated by multiplying the quarterly profit before income taxes by an estimatedeffective tax rate. Such effective tax rate is reasonably estimated after applying tax effect accounting to the profit
before income taxes for the consolidated fiscal year including the current consolidated first quarter.
(Additional Information)(Accounting Estimates)
There was no material change in assumptions and accounting estimates including the timing of thecontainment of the new corona virus infection, etc. stated in the Financial Report for the previous business year.

-8-Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023

(Segment Information, etc.)[Segment Information]
I Previous consolidated cumulative first quarter (From April 1, 2022 to June 30, 2022)
1. Information on the amount of net sales and profit or loss with respect to each reportable segment

Electronicmaterials

Reportable segment
Industrial
Electric
application
Display
insulation
structural
materials
materials
materials(Thousands of yen)
Other
(See Note)

Subtotal

Total

Sales
Sales to external customers
Inter-segment sales ortransfers
Net sales
Segment profit

Note:7,765,809

1,748,413

625,759

---

---

---

7,765,809

1,748,413

625,759715,289

81,65540,254

1,093,658 11,233,642

87,981

11,321,623---

219,208219,208

1,093,658 11,233,642

307,189

11,540,831

47,304

1,147,437--262,934

1,100,132

The column “Other” represents business operations that do not fall under any of the reportablesegments and includes the related goods sales, the logistics-related operations and other businesses, etc.

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

ProfitAmountTotal of reportable segments

1,100,132

Profit in the category “Other”

47,304

Elimination of inter-segment transactions

2,411

Unallocated corporate expenses (See Note)△382,296

Adjustment of inventories△61,716

Operating profit shown on the quarterly consolidated statements ofincome705,835

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.

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Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023

II Current consolidated cumulative first quarter (From April 1, 2023 to June 30, 2023)
1. Information on the amount of net sales and profit or loss with respect to each reportable segment
Other(See Note)

Reportable segment(Thousands of yen)
Total

Electronicmaterials

Industrial
application
structural
materials

Electric
insulationmaterials

Displaymaterials

5,408,544

2,653,900

583,178765,632

9,411,257

83,1439,494,400

Subtotal

Sales
Sales to external customers
Inter-segment sales ortransfers
Net sales

---

---

---

---

---

209,705

209,705

5,408,544

2,653,900

583,178765,632

9,411,257

292,848

9,704,105

Segment profit (loss (△))

△259,867

239,947

15,494

125,596

121,171

49,224

170,395

Note:

The column “Other” represents business operations that do not fall under any of the reportablesegments and includes the related goods sales, the logistics-related operations and other businesses,
etc.

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

ProfitAmountTotal of reportable segments

121,171

Profit in the category “Other”

49,224

Elimination of inter-segment transactions

3,544

Unallocated corporate expenses (See Note)△412,487

Adjustment of inventories△9,225

Operating loss (△) shown on the quarterly consolidated statements
of incomeNote:△247,772

Unallocated corporate expenses are mostly general and administrative expenses that are not
attributable to any of the reportable segments.

3. Information on impairment loss on non-current assets or goodwill, etc. with respect to each reportablesegment(Significant impairment losses on non-current assets)
In the industrial application structural materials segment, with respect to the assets in whichinvestments could not be expected to recover due to a downturn in profitability, the Company devalued
their carrying amount to memorandum value and showed the relevant amount of loss to extraordinary losses
as impairment losses.
In this regard, the amount of the relevant impairment losses shown in the current consolidated
cumulative first quarter is 3,181 thousand yen.
(Significant Subsequent Events)
No applicable matter.

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