Closing Announcement of Fiscal Year Ended March 31, 2021
[Japanese Standards] (Consolidated)
May 6, 2021
Name of Listed Company:
Arisawa Mfg. Co., Ltd.
Code No.:
5208
Representative:
Representative Director and CEO:Contact Person:
Operating Officer, Corporate Planning Department:
Scheduled Date of Holding Ordinary General Meeting of Shareholders:June 25, 2021
Scheduled Date of Submitting Financial Report:
June 28, 2021
Whether supplementary explanation materials for the closing are prepared:
Whether explanation meeting is held for the closing:

Listed on the Tokyo Stock Exchange(URL http://www.arisawa.co.jp/)
Yuta Arisawa
Takeshi Masuda
TEL: 025-524-7101
Scheduled Date of Commencement of Dividend Payment:
June 28, 2021
None
Yes for analysts(Indicated by rounding off an amount less than 1 million yen)

1. Consolidated Results for Fiscal Year Ended March 31, 2021 (From April 1, 2020 to March 31, 2021)(1) Consolidated Operating Results(% indication shows the increase or decrease rate from the previous year)
Sales

Operating profit(million yen)

Fiscal Year Ended March 31, 2021
Fiscal Year Ended March 31, 2020
(Note)
Comprehensive income:%(million yen)(million yen)%

46,439
1.0
3,118
12.9
45,970
2.8
2,762
△11.5
Fiscal Year Ended March 31, 2021: 3,808 million yen (---%)
Fiscal Year Ended March 31, 2020: △117 million yen (---%)Net profit per
share

Fully diluted net
profit per share(Yen, Sen)

Fiscal Year Ended March 31, 2021
Fiscal Year Ended March 31, 2020
(Reference) Equity method investment income:Net profit attributable toowners of the parent

Ordinary profit
3,578
2,783

%

(million yen)

%

28.6
△35.2

2,160
212

915.4
△92.6

Ordinary profit
ratio of total assets

ROE(Yen, Sen)

Operating profit
ratio of sales

%

%

%

64.94
64.84
4.7
6.14
6.12
0.4
Fiscal Year Ended March 31, 2021: △46 million yen
Fiscal Year Ended March 31, 2020: △52 million yen

5.1
3.8

6.7
6.0

(2) Consolidated Financial Condition
Total assets

Net asset(million yen)

Fiscal Year Ended March 31, 2021
Fiscal Year Ended March 31, 2020
(Reference) Net worth:

Net worth ratio

Net asset per share(million yen)%

(Yen, Sen)

67,25747,44471,70949,018
Fiscal Year Ended March 31, 2021: 46,284 million yen
Fiscal Year Ended March 31, 2020: 46,137 million yen

68.8
64.3

1,388.50
1,387.76(3) Status of Consolidated Cash Flow
Cash flow fromoperating activities

Cash and cash
equivalents at the end of
the period

Cash flow fromfinancing activities(million yen)(million yen)(million yen)(million yen)

610
4,823

1,567
6,580

△5,703△4,431

11,48814,725

Fiscal Year Ended March 31, 2021
Fiscal Year Ended March 31, 2020

2.

Cash flow frominvesting activities

Status of Dividends
Annual dividends
End of 1stquarter

End of 2ndquarter

End of 3rdquarter

End ofyear

Annual(Yen, Sen)

(Yen, Sen)

(Yen, Sen)

Fiscal Year Ended March 31, 2020
Fiscal Year Ended March 31, 2021
Fiscal Year Ending March 31, 2022
(Forecast)

-----

0.00
0.00

---

---

Total
dividends(annual)Dividend
payout ratio(consolidated)

Ratio ofdividends to
net assets(consolidated)(Yen, Sen)

(Yen, Sen)(million yen)

%

%

-----

30.00
39.00

30.00
39.00

997
1,300

488.6
60.1

2.2
2.8

---

---

---

---

Dividends for the fiscal year ending March 31, 2022 have yet to be determined.

3.

Expected Consolidated Results for Fiscal Year Ending March 31, 2022
(From April 1, 2021 to March 31, 2022)(% indication shows the increase or decrease rate from the previous year for full-year andfrom the same quarter in the previous year for each quarter)
Sales(million yen)nd

2 quarter (cumulative)(Note)

Operating profit%(million yen)

Net profit
attributable toowners of the parent

Ordinary profit%(millionyen)%(millionyen)%

Net profit per
share(Yen, Sen)

21,800
1,400
1,400
850
--------25.50
44,400
2,800
3,000
1,800
54.00
--------“Accounting Standards for Revenue Recognition,” etc., has been applied from the beginning of the fiscal year ending March 31, 2022 andthe forecast is based on the Standards, etc. Therefore, the rate of increase or decrease from the actual results for the fiscal year ended March
31, 2021 before the application of the Standards is not stated.

* Notes(1) Changes in material subsidiaries during the year (changes in specified subsidiaries accompanying changes inscope of consolidation): None
New: --(Company Name:)
Exclusion: --(Company Name:)(2) Changes in accounting policy, changes in accounting estimates and restatement
1) Changes in accounting policy in connection with the amendment of accounting standards, etc.:
2) Changes in accounting policy other than 1) above:3) Changes in accounting estimate:4) Restatement:

None
None
None
None

(3) Number of outstanding shares (common stock)1) Number of outstanding shares at the end of the period (including treasury stock):
Fiscal Year Ended March 31, 2021: 34,470,524 shares,
Fiscal Year Ended March 31, 2020: 36,381,524 shares
2) Number of treasury stock at the end of the period:
Fiscal Year Ended March 31, 2021: 1,136,189 shares,
Fiscal Year Ended March 31, 2020: 3,135,830 shares
3) Average number of shares during the year
Fiscal Year Ended March 31, 2021: 33,271,733 shares,
Fiscal Year Ended March 31, 2020: 34,682,121 shares(Reference) Overview of Individual Business Results
Individual Results for Fiscal Year Ended March 31, 2021 (From April 1, 2020 to March 31, 2021)(% indication shows the increase or decrease rate from the previous year)(1) Individual Operating Results
Sales(million yen)

Fiscal Year Ended March 31, 2021
Fiscal Year Ended March 31, 2020

31,66831,635

Operating profit%(million yen)

0.1
8.1

1,215
1,627

Net profit per share

Ordinary profit
%

△25.3
6.1

(million yen)

1,932
2,365

△18.3
△9.1

(million yen)

%

△79.4
248.8

1,396
6,792

Fully diluted net profit per share(Yen, Sen)

(Yen, Sen)

41.98
195.8641.91
195.28

Fiscal Year Ended March 31, 2021
Fiscal Year Ended March 31, 2020

Net profit%(2) Individual Financial Condition
Total assets(million yen)

Net asset

Net worth ratio(million yen)

Fiscal Year Ended March 31, 2021
49,85951,595
Fiscal Year Ended March 31, 2020
(Reference) Net worth: Fiscal Year Ended March 31, 2021: 40,300 million yen
Fiscal Year Ended March 31, 2020: 38,765 million yen

40,48438,931

Net asset per share%(Yen, Sen)

80.8
75.1

1,208.98
1,166.03* The closing announcement is not subject to an audit by a certified public accountant or an audit corporation.
* Explanation about Appropriate Use of the Forecast of Business Results and other Matters to be Noted
Description regarding the future such as the forecast of business results stated in this material is based on information which theCompany has currently obtained and certain assumptions that the Company determines to be reasonable, although actual results
may significantly differ from the forecast depending on various factors.

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2021

○ Contents of Attached Materials
1. Summary of Business Results, etc. ................................................................................................................. 2(1) Summary of Business Results for the Current Year .................................................................................. 2(2) Summary of Financial Conditions for the Current Year ............................................................................ 2(3) Summary of Cash Flow for the Current Year ............................................................................................ 3(4) Future Outlook .......................................................................................................................................... 4
2. Basic Concept of Selection of Accounting Standards ..................................................................................... 4
3. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheet ...................................................................................................................... 5(2) Consolidated Profit and Loss Statement and Consolidated Statement of Comprehensive Income........... 7(Consolidated Profit and Loss Statement) .................................................................................................. 7(Consolidated Statement of Comprehensive Income) ................................................................................ 8(3) Consolidated Statements of Changes in Shareholders’ Equity and Other Net Assets ............................... 9(4) Consolidated Cash Flow Statement ........................................................................................................ 11(5) Notes Related to Consolidated Financial Statements .............................................................................. 13(Notes on Going Concern)........................................................................................................................ 13(Segment Information, etc.)...................................................................................................................... 13(Per Share Information) ............................................................................................................................ 18(Important Events after Closing the Accounts) ........................................................................................ 18-1-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2021

1.

Summary of Business Results, etc.
(1) Summary of Business Results for the Current Year
The Japanese economy in the current consolidated fiscal year (hereinafter referred to as “Current Year”)
suffered from very severe conditions due to economic stagnation as a result of the novel coronavirus (COVID19) pandemic. In addition, the outlook remains uncertain due to concerns that the impact on the economy will be
prolonged and the uncertainty surrounding the prospects of containing the COVID-19 pandemic.
Under such circumstances, as for the business results for the Current Year of the Company Group (theCompany, consolidated subsidiaries and companies to which the equity method is applied), sales were ¥46,439
million (an increase of 1.0% as compared with the previous year), operating profit was ¥3,118 million (an increaseof 12.9% as compared with the previous year), ordinary profit was ¥3,578 million (an increase of 28.6% ascompared with the previous year) and net profit attributable to owners of the parent was ¥2,160 million (anincrease of 915.4% as compared with the previous year).
Business results of each segment were as follows.
(Electronic materials)
Due to the steady progress in sales of flexible printed circuit board materials, sales were ¥31,650 million,
an increase of ¥1,885 million as compared with the previous year (6.3% as compared with the previous year).
Segment profit was, due to steady sales of flexible printed circuit board materials as well as improvement inbusiness performance of Satosen Co., Ltd., ¥2,981 million, an increase of ¥649 million as compared with theprevious year (27.9% as compared with the previous year).
(Industrial application structural materials)
Although sales of aircraft materials decreased as compared with the previous year, due to launch of salesof automotive materials, sales were ¥8,842 million, a decrease of ¥131 million as compared with the previous
year (△1.5% as compared with the previous year). Segment profit was, due to a decrease in sales of aircraftmaterials, ¥939 million, a decrease of ¥536 million as compared with the previous year (△36.3% as comparedwith the previous year).
(Electric insulation materials)
Due to a decrease in infrastructure-related sales, sales were ¥2,340 million, a decrease of ¥643 million ascompared with the previous year (△21.6% as compared with the previous year). Segment profit was, due toa decrease in sales, ¥192 million, a decrease of ¥174 million as compared with the previous year (△47.6% ascompared with the previous year).
(Display materials)
Due to a decrease in sales of 3D-related materials, sales were ¥2,820 million, a decrease of ¥607 million
as compared with the previous year (△17.7% as compared with the previous year). Segment profit was, due
to an improvement in revenues of ColorLink Japan, Ltd., etc., ¥221 million, a decrease of ¥13 million ascompared with the previous year (△5.9% as compared with the previous year).
(Other)Sales were ¥786 million, a decrease of ¥32 million as compared with the previous year (△4.0% ascompared with the previous year).

(2) Summary of Financial Conditions for the Current Year
Total assets at the end of the current consolidated fiscal year were ¥67,257 million, a decrease of ¥4,452
million as compared with the end of the previous consolidated fiscal year. This was mainly due to a decrease ininvestment securities of ¥3,541 million and other factors.
Total liabilities were ¥19,812 million, a decrease of ¥2,878 million as compared with the end of the previous-2-Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2021

consolidated fiscal year. This was mainly due to a decrease in corporate income tax, etc., payable of ¥3,150 million
and other factors.
Net assets were ¥47,444 million, a decrease of ¥1,573 million as compared with the end of the previous
consolidated fiscal year. This was mainly due to a decrease in capital surplus of ¥2,302 million in connection withadditional acquisition of the shares of ThinFlex Corporation, a subsidiary in Taiwan and other factors.

(3) Summary of Cash Flow for the Current Year
Cash and cash equivalents (hereinafter referred to as “Funds”) at the end of the current consolidated fiscal
year were ¥11,488 million, a decrease of ¥3,237 million as compared with the end of the previous consolidated
fiscal year.
(Cash Flow from Operating Activities)
Funds earned from operating activities were ¥610 million (a decrease of 87.4% as compared with the previousyear). Major factors for a decrease in funds were corporate income tax, etc., paid of ¥4,970 million, etc.
(Cash Flow from Investing Activities)
Funds earned from investing activities were ¥1,567 million (a decrease of ¥76.2% as compared with theprevious year). This was due to revenue from the sale of stocks of affiliated companies of ¥9,215 million recordedin the same period in the previous year and other factors.
(Cash Flow from Financing Activities)
Funds used for financing activities were ¥5,703 million (an increase of 28.7% as compared with the previousyear). This was mainly due to expenditure for acquisition of the shares of a subsidiary not accompanying a change
in the scope of consolidation of ¥4,323 million, etc.
(Reference) Transitions of Cash Flow related Index
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Net worth ratio (%)

69.3

64.3

68.8

Net worth ratio on a basis of market price (%)

39.3

37.2

49.6

Ratio of cash flow to interest bearing debt (year)

2.7

1.7

13.6

Interest coverage ratio (times)

34.2

76.5

3.7

(Note) Net worth ratio: Net worth / Total assets
Net worth ratio on a basis of market price: Total market value of shares / Total assets
Ratio of cash flow to interest bearing debt: Interest bearing debts / Cash flow from operating activities
Interest coverage ratio: Cash flow from operating activities / Interest paid
1. Each index is based on financial figures on a consolidated basis.
2. Total market value of shares is calculated by final share price at the end of the period × total number ofoutstanding shares at the end of the period (after deducting treasury stock).
3. As for operating cash flow, “Cash flow from operating activities” in the consolidated cash flow
statement is used.
4. Interest bearing debts cover all the debts that paid interest out of debts appropriated on the consolidatedbalance sheet. As for interest, “Interest paid” in the consolidated cash flow statement is used.

-3-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2021

(4) Future Outlook
For the future outlook of the economy, a great deal of uncertainty about the future remains as the novel
coronavirus infection continues to spread and the timing of convergence and the impact from the spread of theinfection are unpredictable.
Based on such circumstances, we expect sales of ¥44,400 million, operating profit of ¥2,800 million, ordinary
profit of ¥3,000 million and net profit attributable to owners of the parent of ¥1,800 million for the consolidated
business results for the year ending March 31, 2022.
2.

Basic Concept of Selection of Accounting Standards
For the time being, our Company Group will maintain the policy of preparing consolidated financial statements
in compliance with Japanese standards, considering the possibility of comparison of consolidated financial
statements for multiple periods and among companies.
In this regard, we will properly respond to application of the IFRS, considering the situations in Japan andoverseas.

-4-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2021

3.

Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheet(Unit: thousand yen)Previous consolidated fiscal year
(As of March 31, 2020)

AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable
Securities
Merchandise and finished goods
Work-in-progress
Raw materials and stores
Other
Allowance for doubtful accounts
Total Current Assets
Fixed Assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Buildings and structures (net)
Machinery, equipment anddelivery equipment
Accumulated depreciation
Machinery, equipment anddelivery equipment (net)Land
Construction in progress
Other
Accumulated depreciation
Other (net)Total tangible fixed assets
Intangible fixed assets
Investments and other assets
Investment securities
Long-term loans
Net defined benefit assets
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and otherassetsTotal Fixed Assets
Total Assets-5-

Current consolidated fiscal year
(As of March 31, 2021)

14,714,069
17,697,085
1,558,445
3,083,432
2,017,729
3,177,428
1,059,764△585,049
42,722,906

13,215,508
16,766,218
1,242,430
3,896,377
2,175,632
3,026,247
2,194,620△161,830
42,355,204

20,082,654△14,210,115
5,872,538

20,846,998△14,701,594
6,145,403

29,537,558

30,457,713△25,575,578△26,585,177

3,961,980

3,872,536

1,877,655
291,586
3,022,196△2,100,819
921,376
12,925,137
225,017

1,888,569
293,853
3,225,023△2,207,990
1,017,032
13,217,395
244,870

14,207,192
214,352
16,579861,196674,765△137,662

10,666,038
67,179--208,316
513,336△14,923

15,836,423

11,439,946

28,986,578
71,709,484

24,902,213
67,257,417

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2021
(Unit: thousand yen)Previous consolidated fiscal year
(As of March 31, 2020)
Liabilities
Current Liabilities
Notes and accounts payable
Bonds to be redeemed within a year
Short-term borrowings
Current portion of long-term borrowings
Lease liabilities
Corporate income tax, etc., payable
Reserve for bonuses
Reserve for officers’ bonuses
Other
Total Current Liabilities
Fixed Liabilities
Bonds
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Net defined benefit liabilities
Asset retirement obligations
Other
Total Fixed Liabilities
Total Liabilities
Net Assets
Shareholders’ equity
CapitalCapital surplus
Earned surplus
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on other securities
Deferred hedge profit/loss
Foreign currency translation adjustments
Accumulated adjustment for retirement
benefits
Total accumulated other comprehensive
incomeNew share subscription rights
Non-controlling interest
Total Net Assets
Total Liabilities and Net Assets-6-

Current consolidated fiscal
year(As of March 31, 2021)

6,916,079
36,8004,866,202
187,669
60,1383,428,200
570,517
4,793
2,355,419
18,425,820

6,657,426
36,8003,606,087
182,724
87,885
277,821535,756
3,870
2,729,887
14,118,258

91,2002,567,816
391,672
236,866
738,606
92,310147,024
4,265,495
22,691,316

54,4003,761,507
487,985593,992
607,032
89,46699,956
5,694,340
19,812,598

7,594,026
6,706,017
34,256,590△3,204,797
45,351,837

7,623,638
4,403,396
33,374,092△1,159,364
44,241,763

448,970△1,311
478,798

1,569,049△8,237486,242△141,260△3,959785,197

2,043,095

166,148
2,714,984
49,018,167
71,709,484

193,962
965,997
47,444,819
67,257,417

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2021

(2) Consolidated Profit and Loss Statement and Consolidated Statement of Comprehensive Income(Consolidated Profit and Loss Statement)(Unit: thousand yen)

Sales
Cost of Goods Sold
Gross Profit on Sales
Selling, General and Administrative
Expenses
Freight and packaging expenses
Wages and allowances
Transfer to reserve for bonuses
Transfer to reserve for officers’ bonuses
Transfer to reserve for retirement benefits
Transfer to allowance for doubtful
accounts
Other
Total Selling, General and Administrative
Expenses
Operating Profit
Non-Operating Income
Interest income
Dividend income
Foreign exchange profit
Subsidy income
Other
Total Non-Operating Income
Non-Operating Expenses
Interest expenses
Loss on redemption of investment
securities
Expenses for acquisition of the shares of
consolidated subsidiaries
Foreign currency exchange loss
Rent expenses
Other
Total Non-Operating Expenses
Ordinary Profit
Extraordinary Profits
Profit on sale of fixed assets
Profit on sale of investment securities
Other
Total Extraordinary Profits
Extraordinary Losses
Loss on impairment
Loss on impairment of goodwill
Loss on sale of investment securities
Valuation loss on investment securities
Other
Total Extraordinary Losses
Net profit before taxes, etc.
Corporate income tax, resident tax andbusiness tax payable
Adjustment of corporate income tax, etc.
Total corporate income tax, etc.
Net Profit
Net profit attributable to non-controlling

Previous consolidated fiscal year
(From April 1, 2019
to March 31, 2020)
45,970,001
38,224,015
7,745,986

Current consolidated fiscal year
(From April 1, 2020
to March 31, 2021)
46,439,548
38,501,052
7,938,496

718,576
1,524,596
128,247
4,793
76,213723,915
1,587,133
130,417
3,870
86,200

5,888

4,292

2,525,606

2,284,179

4,983,921

4,820,009

2,762,064

3,118,486

327,172
104,317--14,189
300,312745,991

271,61388,170206,698
147,490
210,578
924,550

97,422

110,687

138,830

50,675---49,024

134,442
93,113260,994
724,804
2,783,251--109,759
144,807464,954
3,578,083

265
1,294,172
16,422
1,310,859

515
323,156
27,550351,222475,811
175,447
2,894
293,587
23,934
971,674
3,122,437

69,684--313,624--29,331
412,640
3,516,666

3,698,729

456,889△1,020,085
2,678,644
443,792
231,000

461,375
918,2652,598,400
437,760-7-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2021
interests
Net profit attributable to owners of the parent

212,792-8-2,160,640

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2021

(Consolidated Statement of Comprehensive Income)(Unit: thousand yen)

Net profit
Other comprehensive income
Valuation difference on other securities
Deferred hedge profit/loss
Foreign currency translation adjustments
Adjustment for retirement benefits
Share of other comprehensive income ofcompanies to which equity method is applied
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to ownersof the parent
Comprehensive income attributable to noncontrolling interests

Previous consolidated fiscal year
(From April 1, 2019
to March 31, 2020)
443,792

Current consolidated fiscal year
(From April 1, 2020
to March 31, 2021)
2,598,400△296,163△1,755△134,015△27,799

1,120,090△6,925△42,333
137,301△101,311

1,721△561,044△117,251

1,209,853
3,808,254△307,229

3,418,538

189,977

389,715-9-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2021

(3) Consolidated Statements of Changes in Shareholders’ Equity and Other Net Assets
Previous consolidated fiscal year (From April 1, 2019 to March 31, 2020)(Unit: thousand yen)
Shareholders’ equity
CapitalBalance at the beginning of the period

Capital surplus

7,541,693

6,653,615

52,33352,402

Earned surplus

Treasury stock

35,130,363

Total shareholders’equity△4,76449,320,907

Changes during the period
Issue of new shares
Dividends of surplus

104,735△1,086,565△1,086,565

212,792

212,792

Net profit attributable to owners of
the parent
Acquisition of treasury stock△3,200,033△3,200,033

Retirement of treasury stock
Increase or decrease in the equity
interest by acquisition of the sharesof a consolidated subsidiary
Changes in items other thanshareholders’ equity during theperiod (net)Total changes during the period

52,33352,402△873,773△3,200,033△3,969,070

Balance at the end of the period

7,594,026

6,706,017

34,256,590△3,204,797

45,351,837

Accumulated other comprehensive income
Total
New share
NonForeign
Accumulated
Valuation
Deferredaccumulated
subscription controllingcurrency
adjustment
difference on
hedge
other
rightsinterest
translation for retirement
other securities profit/loss
comprehensive
adjustments
benefits
incomeBalance at the beginning of the period

745,120443

707,571△147,916

1,305,219

Total net
assets144,419 2,691,582 53,462,129

Changes during the period
Issue of new shares

104,735

Dividends of surplus△1,086,565

Net profit attributable to owners of
the parent

212,792△3,200,033

Acquisition of treasury stock
Retirement of treasury stock
Increase or decrease in the equity
interest by acquisition of the shares ofa consolidated subsidiary
Changes in items other thanshareholders’ equity during the period(net)△296,149△1,755△228,773

6,656△520,021

21,72923,401

Total changes during the period△296,149△1,755△228,773

6,656△520,021

21,72923,401 △4,443,961

Balance at the end of the period

448,970△1,311

478,798△141,260

785,197- 10 -△474,890

166,148 2,714,984 49,018,167

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2021

Current consolidated fiscal year (From April 1, 2020 to March 31, 2021)(Unit: thousand yen)
Shareholders’ equity
CapitalBalance at the beginning of the period

Capital surplus

7,594,026

6,706,017

29,612

29,612

Earned surplus

Total shareholders’equityTreasury stock

34,256,590△3,204,797

45,351,837

Changes during the period
Issue of new shares

59,224

Dividends of surplus△997,370△997,370

Net profit attributable to owners of
the parent

2,160,640

2,160,640

Acquisition of treasury stock△2,045,767

Retirement of treasury stock
Increase or decrease in the equity
interest by acquisition of the sharesof a consolidated subsidiary
Changes in items other thanshareholders’ equity during theperiod (net)

△334

△334

2,045,767---△2,332,233△2,332,233

Total changes during the period

29,612△2,302,621△882,498

2,045,433△1,110,073

Balance at the end of the period

7,623,638

4,403,396

33,374,092△1,159,364

44,241,763

Accumulated other comprehensive income
Total
New share
NonForeign
Accumulated
Valuation
Deferredaccumulated
subscription controllingcurrency
adjustment
difference on
hedge
other
rightsinterest
translation for retirement
other securities profit/loss
comprehensive
adjustments
benefits
incomeBalance at the beginning of the period

448,970△1,311

478,798△141,260

785,197

166,148

Total net
assets2,714,984 49,018,167

Changes during the period
Issue of new shares

59,224

Dividends of surplus△997,370

Net profit attributable to owners of
the parent

2,160,640

Acquisition of treasury stock△334

Retirement of treasury stock---

Increase or decrease in the equity
interest by acquisition of the shares ofa consolidated subsidiary
Changes in items other thanshareholders’ equity during the period(net)△2,332,233
1,120,078△6,925

7,444

137,301

1,257,897

27,814 △1,748,986

Total changes during the period

1,120,078△6,925

7,444

137,301

1,257,897

27,814 △1,748,986 △1,573,348

Balance at the end of the period

1,569,049△8,237486,242△3,9592,043,095

193,962- 11 -△463,274

965,997 47,444,819

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2021

(4) Consolidated Cash Flow Statement(Unit: thousand yen)Previous consolidated fiscal year
(From April 1, 2019
to March 31, 2020)

Current consolidated fiscal year
(From April 1, 2020
to March 31, 2021)

3,122,437
1,982,964
475,811
175,447
43,861
55,4023,516,666
2,107,827
69,684----73,411

79

△83

60,109△34,761

836△923

103,649

35,97571,72065,982△431,489--97,422---△359,784△147,490
110,687
29,048

10,569△229,332

52,281

46,062△1,291,341△9,532

293,587---

82,394

2,304

△265
6,637

△515
6,255

△16,422△27,550△1,561,941

985,325

1,034,154△799,651

799,562△283,709

201,531△163,601△332,592△159,878△114,813

353,207△5,185
4,916,408
619,083△63,256--5,185,625
410,659△162,805△634,236△4,970,454--4,837,999

147,490
610,515

Cash flow from operating activities
Net profit before taxes, etc.
Depreciation expense
Loss on impairment
Loss on impairment of goodwill
Amortization of goodwill
Stock compensation expenses
Increase/decrease in provision for productwarranties (△: decrease)
Increase/decrease in reserve for bonuses (△:decrease)
Increase/decrease in reserve for officers’
bonuses (△: decrease)
Increase/decrease in allowance for doubtful
accounts (△: decrease)
Increase/decrease in net defined benefit
liabilities (△: decrease)
Interest and dividend income
Subsidy income
Interest expenses
Bad debt loss
Foreign currency exchange profit/loss (△:profit)Investment profit/loss by equity method (△:profit)Profit/loss on sale of investment securities(△: profit)
Valuation profit/loss on investment securities(△: profit)
Profit/loss on redemption of investment
securities (△: profit)
Profit/loss on sale of fixed assets (△: profit)
Loss on retirement of tangible fixed assets
Profit on reversal of new share subscription
rightsIncrease/decrease in accounts receivable (△:increase)
Increase/decrease in inventories (△: increase)
Increase/decrease in trades payable (△:decrease)
Increase/decrease in consumption tax, etc.,
payable (△: decrease)
Increase/decrease in other assets (△: increase)
Increase/decrease in other liabilities (△:decrease)
Other
SubtotalInterest and dividends received
Interest paid
Corporate income tax, etc., paid or refund (△:paid)
Subsidy income received
Cash flow from operating activities- 12 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2021
(Unit: thousand yen)Previous consolidated fiscal year
(From April 1, 2019
to March 31, 2020)

Current consolidated fiscal year
(From April 1, 2020
to March 31, 2021)△200,000
210,000△200,000---△1,771,360
200,000△900,000
1,100,000△2,771,975△1,908,002

397

1,097

△105,378△75,825△1,032,333△672,081

1,421,883

5,610,543

9,215,040---△22,000
19,877△29,000
41,02044,677△29,040

6,580,188

1,567,351△548,879△1,281,546

1,908,898

1,681,977△1,223,318△478,069△52,153△64,882△115,173△99,170△36,800
87,484△3,200,033△1,085,016△166,575△36,800
50,032△334△995,340△155,966---△4,324,082

---

1,000

△4,431,566
20,680△5,703,182
287,618

7,007,302△3,237,696

7,718,682

14,725,985

14,725,985

11,488,288

Cash flow from investing activities
Expenditure for placement in term deposits
Revenue from refund of term deposits
Expenditure for acquisition of securities
Revenue from sale of securities
Expenditure for acquisition of tangible fixed
assets
Revenue from sale of tangible fixed assets
Expenditure for acquisition of intangible fixed
assetsExpenditure for acquisition of investment
securities
Revenue from sale of investment securities
Revenue from sale of stocks of affiliatedcompanies
Expenditure for lending
Revenue from collection of loans
Increase/decrease in investments and other assets(△: increase)
Cash flow from investing activities
Cash flow from financing activities
Net increase/decrease in short-term borrowings(△: decrease)
Revenue from long-term borrowings
Expenditure for repayment of long-termborrowings
Expenditure for repayment of lease liabilities
Expenditure for repayment of long-term accrued
amountExpenditure for redemption of bonds
Proceeds from stocks issued
Expenditure for acquisition of treasury stock
Dividends paid
Dividends paid to non-controlling interests
Expenditure for acquisition of the shares of a
subsidiary not accompanying a change in thescope of consolidation
Revenue from sale of the shares of a subsidiary
not accompanying a change in the scope of
consolidation
Cash flow from financing activities
Translation differences in cash and cash equivalents
Increase/decrease in cash and cash equivalents(△: decrease)
Cash and cash equivalents at the beginning of theperiodCash and cash equivalents at the end of the period- 13 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2021

(5) Notes Related to Consolidated Financial Statements(Notes on Going Concern)
No applicable matter.
(Segment Information, etc.)[Segment Information]
1. Outline of reportable segments
Reportable segments of the Company are those whose separate financial information is obtainable out of thecomposition units of the Company and the subject of periodical review by the board of directors in order to determine
distribution of business resources and evaluate performances.
The Company established the manufacturing and sales system by product and service at the head office anddevelops comprehensive strategies of the handling products and services for Japan and overseas and is developing
business activities.
Therefore, the Company is composed of segments by product and service based on the manufacturing and sales
system and adopts the four businesses of “electronic materials business,” “industrial application structural materials
business,” “electric insulation materials business” and “display materials business” as the reportable segments.
“Electronic materials business” produces materials for flexible and rigid printed circuit boards, etc. “Industrial
application structural materials business” produces FW molded products, honeycomb panels and prepregs foraircraft, pultrusion products, FRP ski sheets, etc. “Electric insulation materials business” produces glass cloth, glass
tapes, prepregs for electric insulation, etc. “Display materials business” produces 3D display filters, special opticalfilms, etc.
2. Method of calculation of the amount of sales, profit or loss, assets, liabilities and other items by reportablesegment
Accounting method of reported business segments is generally the same as the statement in “Substantial
Underlying Matters for Preparation of Consolidated Financial Statements.”
Profit in the reportable segments is based on operating profit (before amortization of goodwill).
Intersegment revenues and transfers are based on the actual market price.

- 14 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2021

3.

Information about the amount of sales, profit or loss, assets, liabilities and other items by reportable segment
Previous consolidated fiscal year (From April 1, 2019 to March 31, 2020)(Unit: thousand yen)
Reportable segment
Electronicmaterials

Industrial
application
structural
materials

29,765,050

8,974,588

2,984,156

Electric
insulationmaterials

Total

Other
(Note)

Total

3,427,412

45,151,206

818,794

45,970,001

Displaymaterials

Sales
Sales to externalcustomers
Intersegment sales ortransfers
Total

---

---

---

---

---

796,455

796,455

29,765,050

8,974,588

2,984,156

3,427,412

45,151,206

1,615,250

46,766,457

Segment profit

2,331,392

1,475,260

366,888

235,241

4,408,782

222,173

4,630,955

Segment assets

28,747,464

9,329,352

3,185,554

3,062,923

44,325,294

1,309,738

45,635,032

1,449,803

180,468

84,873

142,537

1,857,683

21,168

1,878,851

---

---

---

217,982

217,982---

217,982

1,548,869

193,481

142,372

219,016

2,103,740

2,636

2,106,376

Other
Depreciation
expenseInvestment incompanies to which
the equity method isappliedIncrease in tangible
fixed assets andintangible fixed
assets(Note) The category “Other” means business segments which are not included in the reportable segments andincludes related goods sales, logistics related businesses and other businesses, etc.
Current consolidated fiscal year (From April 1, 2020 to March 31, 2021)(Unit: thousand yen)
Reportable segment
Electronicmaterials

Industrial
application
structural
materials

31,650,346

8,842,592

2,340,444

2,820,157

45,653,540

Electric
insulationmaterials

Displaymaterials

Other(Note)

Total

Total

Sales
Sales to externalcustomers
Intersegment sales ortransfers
Total

---

---

---

---

---

31,650,346

8,842,592

2,340,444

2,820,157

45,653,540

Segment profit

2,981,124

939,199

192,241

221,311

4,333,877

Segment assets

30,226,999

8,632,419

2,746,374

3,197,787

44,803,580

1,491,153

255,026

88,710115,033

1,949,923

21,6801,971,604

---

---

---

173,640

173,640---

173,640

1,466,520

244,778

98,476

37,1101,846,886

74,567

1,921,453

786,008 46,439,548
836,354

836,354

1,622,363 47,275,903
243,688

4,577,566

1,280,605 46,084,186

Other
Depreciation expense
Investment incompanies to which
the equity method isappliedIncrease in tangible
fixed assets andintangible fixed
assets(Note) The category “Other” means business segments which are not included in the reportable segments andincludes related goods sales, logistics related businesses and other businesses, etc.

- 15 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2021

4.

Difference between the total amount of reportable segments and the amount shown in the consolidated financial
statements and major details for the difference (matters concerning difference adjustment)(Unit: thousand yen)
Sales

Previous consolidated fiscal year

Current consolidated fiscal year

Total of reportable segments

45,151,206

45,653,540

Sales in category “Other”

1,615,250

1,622,363

Elimination of intersegment transactions△796,455△836,354

Sales in consolidated financial statements

45,970,001

46,439,548

ProfitPrevious consolidated fiscal year

Current consolidated fiscal year

Total of reportable segments

4,408,782

4,333,877

Profit in category “Other”

222,173

243,688

Elimination of intersegment transactions△92,405

3,666

Amortization of goodwill△43,861---△1,707,227△1,440,791

Adjustment of inventories△25,396△21,954

Operating profit in consolidated financial statements

2,762,064

3,118,486(Unit: thousand yen)

Expenses of entire company (Note)

Note: Expenses of the entire company are mainly general and administrative expenses not attributable to reportablesegments.
(Unit: thousand yen)
AssetsPrevious consolidated fiscal year

Current consolidated fiscal year

Total of reportable segments

44,325,294

44,803,580

Assets in category “Other”
Elimination by setoff of the claims to
the administrative department of head office
Assets of entire company (Note)

1,309,738

1,280,605△673,953△782,751

26,773,801

21,977,937△25,396△21,954

71,709,484

67,257,417

Adjustment of inventories
Total assets in consolidated financial statements

Note: Assets of the entire company are mainly investment securities, etc., not attributable to reportable segments.

Other item

Total of reportablesegments

Other

Adjustment(Unit: thousand yen)Amount shown inconsolidated financial
statements

Previous
consolidated
fiscal year

Current
consolidated
fiscal year

Previous
consolidated
fiscal year

Current
consolidated
fiscal year

Previous
consolidated
fiscal year

Current
consolidated
fiscal year

Previous
consolidated
fiscal year

Current
consolidated
fiscal year

Depreciation expense

1,857,683

1,949,923

21,16821,680104,112136,223

1,982,964

2,107,827

Increase in tangible fixed
assets and intangible fixed
assets2,103,740

1,846,886

2,636

74,567

167,555

298,926

2,273,932

2,220,379

Note: Adjustment of increase in tangible fixed assets and intangible fixed assets is the capital investments in the assets
used for the common corporate purpose.

- 16 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2021

[Related Information]
Previous consolidated fiscal year (From April 1, 2019 to March 31, 2020)
1. Information by product and service(Unit: thousand yen)
Electronicmaterials
Sales to external customers

29,765,050

Industrial
application
structural
materials
8,974,588

Electric
insulationmaterials

Displaymaterials

Other

3,427,412

818,794 45,970,001

2,984,156

Total

2. Information by region(1) Sales(Unit: thousand yen)
Japan

China

19,588,099

13,572,138

Other Region
12,809,763

Total
45,970,001(Note) Sales are based on the location of customers and classified into a country or region.
(2) Tangible fixed assets(Unit: thousand yen)Japan

Taiwan9,289,124

3.

2,916,654

Other Region
719,358

Total
12,925,137

Information by major customer(Unit: thousand yen)
Name of Customer

Sales

Sumitomo Shoji Chemicals Co., Ltd.

Related segment name5,381,162

Electronic materials businessCurrent consolidated fiscal year (From April 1, 2020 to March 31, 2021)
1. Information by product and service(Unit: thousand yen)
Electronicmaterials
Sales to external customers

31,650,346

Industrial
application
structural
materials
8,842,592

Electric
insulationmaterials

Displaymaterials

Other2,820,157

786,008 46,439,548

2,340,444

Total

2. Information by region(1) Sales(Unit: thousand yen)
Japan

China

19,419,125

15,474,946

Other Region
11,545,477

Total
46,439,548(Note) Sales are based on the location of customers and classified into a country or region.
(2) Tangible fixed assets(Unit: thousand yen)Japan

Taiwan9,271,469

3.

3,191,195

Other Region754,730

Total
13,217,395

Information by major customer(Unit: thousand yen)
Name of Customer

Sales

Sumitomo Shoji Chemicals Co., Ltd.

Related segment name
4,986,141- 17 -

Electronic materials businessArisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2021

[Information about loss on impairment of fixed assets by reportable segment]
Previous consolidated fiscal year (From April 1, 2019 to March 31, 2020)
Electronicmaterials
Loss onimpairment
Loss onimpairment of
goodwillIndustrial
Electric insulation
applicationmaterials
structural materials

Displaymaterials

Other

Entirecompany/
Elimination

Total

369,122------

106,689------475,811

175,447

---

---

---

---

---

175,447

Current consolidated fiscal year (From April 1, 2020 to March 31, 2021)
Industrial
Electronic
Electric insulation
applicationmaterials
materials
structural materials
Loss onimpairment
Loss onimpairment of
goodwill

Displaymaterials

Other(Unit: thousand yen)
EntireTotal
company/
Elimination---

69,684

---

---

---

---

69,684

---

---

---

---

---

---

---

[Information about amortization of goodwill and unamortized balance by reportable segment]
Previous consolidated fiscal year (From April 1, 2019 to March 31, 2020)
Industrial
Electric insulation
Electronic
applicationmaterials
materials
structural materials
Amortization
Balance at theend of the period

Displaymaterials

Other(Unit: thousand yen)
Entirecompany/
Total
Elimination

43,861

---

---

---

---

---

43,861

---

---

---

---

---

---

---

Current consolidated fiscal year (From April 1, 2020 to March 31, 2021)
No applicable matter.
[Information about profit on negative goodwill by reportable segment]
No applicable matter.

- 18 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2021

(Per Share Information)
Previous consolidated fiscal year
(From April 1, 2019
to March 31, 2020)

Current consolidated fiscal year
(From April 1, 2020
to March 31, 2021)

Net asset per share¥1,387.76¥1,388.50

Net profit per share¥6.14¥64.94

Fully diluted net profit per share¥6.12¥64.84(Note) Net profit and fully diluted net profit per share are calculated on the basis of the following:
Previous consolidated fiscal year
(From April 1, 2019
to March 31, 2020)

Current consolidated fiscal year
(From April 1, 2020
to March 31, 2021)

212,792

2,160,640

---

---

212,792

2,160,640

34,682,121

33,271,733

Adjustment of net profit attributable to ownersof the parent (thousand yen)

---

---

Increase in number of common stock (shares)

103,772

52,798(103,772)(52,798)

Net profit per share
Net profit attributable to owners of the parent(thousand yen)Amounts that are not attributable to common
stockholders (thousand yen)
Net profit attributable to owners of the parent
for common stock (thousand yen)
Average number of shares during the year
(shares)

Fully diluted net profit per share(Of those, number of new share subscription
rights (shares))
The outline of potential shares not included in thecalculation of fully diluted net profit per share dueto the absence of dilutive effects

Eight types of new sharesubscription rights(1,116,800 shares)(Important Events after Closing the Accounts)
No applicable matter.

- 19 -

Eight types of new sharesubscription rights(1,270,500 shares)