Closing Announcement of Second Quarter of the Fiscal Year Ending March 31, 2020
[Japanese Standards] (Consolidated)
November 7, 2019
Name of Listed Company:
Code No.:
Representative:
Contact Person:

Arisawa Mfg. Co., Ltd.
5208
Representative Director and CEO:Operating Officer,
Corporate Planning Department:
Scheduled Date of Submitting Financial Report: November 14, 2019
Scheduled Date of Commencement of Dividend Payment: --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

No
Yes (for analysts)(Indicated by rounding off an amount less than 1 million yen)

1.

Consolidated Results in Second Quarter of the Fiscal Year Ending March 31, 2020
(From April 1, 2019 to September 30, 2019)(1) Consolidated Operating Results (Cumulative)(% indication shows the increase or decrease rate from the same period in the previous year)
Net profit attributable toOperating profit
Ordinary profit
owners of the parent(million yen)%(million yen)%(million yen)%(million yen)%
Sales

Second Quarter of the Fiscal YearEnding March 31, 2020
Second Quarter of the Fiscal Year
Ended March 31, 2019

(Note)

22,599

ᇞ0.5

1,321

ᇞ23.7

1,440

ᇞ44.4

ᇞ894

---

22,707

17.6

1,732

9.2

2,590

18.8

1,775

14.0

Comprehensive income: Second Quarter of the Fiscal Year Ending March 31, 2020: ᇞ1,196 million yen (--- %)Second Quarter of the Fiscal Year Ended March 31, 2019: 1,310 million yen (ᇞ31.4 %)Net profit per share

Fully diluted net profit per share(Yen, Sen)

Second Quarter of the Fiscal YearEnding March 31, 2020
Second Quarter of the Fiscal Year
Ended March 31, 2019

(Yen, Sen)

ᇞ24.81

---

49.16

48.77

(2) Consolidated Financial Conditions
Total assets(million yen)

Net assets(million yen)

Net worth ratio

Second Quarter of the Fiscal YearEnding March 31, 2020
74,184
49,109Fiscal Year Ended March 31, 201973,09653,462(Reference) Net worth: Second Quarter of the Fiscal Year Ending March 31, 2020: 46,404 million yen
Fiscal Year Ended March 31, 2019: 50,626 million yen

2.

%

Net asset per share(Yen, Sen)

62.6
69.3

1,350.59
1,397.78

Status of Dividends

Fiscal Year Ended March 31, 2019
Fiscal Year Ending March 31, 2020
Fiscal Year Ending March 31, 2020
(Forecast)(Note)End of 1st quarter(Yen, Sen)-----

End of 2nd quarter(Yen, Sen)
0.00
0.00

Annual dividends
End of 3rd quarter(Yen, Sen)---

End of year
(Yen, Sen)
30.00

---

---

Annual(Yen, Sen)
30.00
---

Existence of adjustment from the most recently announced dividend forecast: None

Dividends for the fiscal year ending March 31, 2020 have yet to be determined.

3.

Forecast of Consolidated Business Results for Fiscal Year Ending March 31, 2020
(From April 1, 2019 to March 31, 2020)(% indication shows the increase or decrease rate from the previous period)
Sales

Full Year

(Note)

Operating profit

Net profit
attributable to ownersof the parent

Ordinary profit

Net profit per share(million yen)%(million yen)%(million yen)%(million yen)%

(Yen, Sen)

45,600

1.9

3,050

ᇞ2.2

3,200

ᇞ25.5

1,050

ᇞ63.3

30.56

Existence of adjustment from the most recently announced forecast of business results: Yes

For details, refer to ‘1. Qualitative Information concerning Current Quarterly Closing Announcement (3) Explanation about Future Forecast
Information, including Forecast of Consolidated Business Results’ on page 3 of the attached materials.

* Notes(1) Changes in material subsidiaries during the current consolidated cumulative period (changes in specified
subsidiaries accompanying changes in scope of consolidation): None
New: --- (Company Name:)
Exclusion: --- (Company Name:)(2) Application of accounting particular to preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policy, changes in accounting estimates and restatement
1) Changes in accounting policy in connection with the amendment of accounting standards, etc.: Yes
2) Changes in accounting policy other than 1) above:None3) Changes in accounting estimate:None4) Restatement:
None(4) Number of outstanding shares (common stocks)
1) Number of outstanding shares at
2Q of Fiscal Yearthe end of year (including treasury Ending March 31,
2020:
stocks):2Q of Fiscal Year
2) Number of treasury stocks at theEnding March 31,
end of year:
2020:3) Average number of shares during
the year (cumulative quarter)

2Q of Fiscal YearEnding March 31,
2020:

36,326,524 sharesFiscal Year Ended
March 31, 2019:

1,967,700

sharesFiscal Year Ended
March 31, 2019:36,032,251 shares

2Q of Fiscal Year
Ended March 31,
2019:36,226,224 shares

7,378

shares36,110,689 shares* The quarterly closing announcement is not subject to quarterly review 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.
(How to Obtain Materials for the Closing Explanation Meeting)
The Company is scheduled to hold an explanation meeting for analysts on Friday, November 8, 2019. Presentation materials for the
explanation meeting will be posted on the website of the Company immediately after holding the meeting.

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2020

Contents of Attached Materials
1. Qualitative Information concerning Current Quarterly Closing Announcement(1) Explanation about Business Results(2) Explanation about Financial Conditions(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 Profit and Loss Statement
and Consolidated Statement of Comprehensive Income
Quarterly Consolidated Profit and Loss Statement
Consolidated Cumulative Second Quarter
Quarterly Consolidated Statement of Comprehensive Income
Consolidated Cumulative Second Quarter(3) Quarterly Consolidated Cash Flow Statement(4) Notes to Quarterly Consolidated Financial Statements(Notes to Assumptions on a Going Concern)(Explanatory Note in Case of Significant Changes in the Amount of Shareholders’ Equity)(Application of Accounting Particular to Preparationof Quarterly Consolidated Financial Statements)(Changes in Accounting Policy)(Segment Information, etc.)(Notes Related to Business Combination, etc.)(Important Events after Closing the Accounts)

-1-

2
2
3
3
4
4
6
6
7
8
10
10
10
10
10
11
12
13

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2020

1. Qualitative Information concerning Current Quarterly Closing Announcement(1) Explanation about Business Results
For the Japanese economy in the current second quarter consolidated cumulative period, uncertainties
continue to linger due to the impact on the global economy from ongoing trade friction between the
United States and China and the overall slowdown of the Chinese economy, etc.
Under such circumstances, for the business results in the current second quarter cumulative period of
the Company Group (the Company, consolidated subsidiaries and companies to which the equity
method is applied), sales were ¥22,599 million (a decrease of 0.5% as compared with the same period in
the previous year). For profit and loss, operating profit was ¥1,321 million (a decrease of 23.7% ascompared with the same period in the previous year), ordinary profit was ¥1,440 million (a decrease of
44.4% as compared with the same period in the previous year) and quarterly net loss attributable toowners of the parent was ¥894 million (net profit of ¥1,775 million in the same period in the previousyear). This loss was mainly due to recording in the second quarter tax expenses of ¥1,584 million related
to the sale of shares of Polatechno, which is scheduled for the third quarter.
Business results of each segment were as follows.
(Electronic materials)
While sales of flexible printed circuit board materials increased, due to a decrease in sales of rigid
printed circuit board materials, etc., sales were ¥14,453 million, a decrease of ¥245 million as comparedwith the same period in the previous year (1.7% as compared with the same period in the previous year).
(Industrial application structural materials)
While sales of pressure vessels for water treatment decreased, due to an increase in sales of aircraftmaterials, etc., sales were ¥4,334 million, an increase of ¥76 million as compared with the same period
in the previous year (1.8% as compared with the same period in the previous year).
(Electric insulation materials)
Due to a decrease in sales of electric insulation materials for heavy electric machinery, sales were¥1,553 million, a decrease of ¥42 million as compared with the same period in the previous year (1.1%
as compared with the same period in the previous year).
(Display materials)
Due to the steady advancements in sales of 3D-related materials, sales were ¥1,867 million, an
increase of ¥461 million as compared with the same period in the previous year (3.7% as compared withthe same period in the previous year).
(Other)Sales were ¥391 million, an increase of ¥12 million as compared with the same period in the previous
year.

-2-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2020

(2) Explanation about Financial Conditions
Total assets at the end of the current consolidated second quarter were ¥74,184 million, an increase of¥1,088 million as compared with the end of the previous consolidated fiscal year. This was mainly due
to an increase in tangible fixed assets of ¥1,316 million. Liabilities were ¥25,074 million, an increase of¥5,440 million as compared with the end of the previous consolidated fiscal year. This was mainly due
to an increase in short-term borrowings of ¥3,353 million. Net assets were ¥49,109 million, a decreaseof ¥4,352 million as compared with the end of the previous consolidated fiscal year. This was mainly
due to a decrease in earned surplus of ¥1,980 million and a decrease of ¥1,963 million due to acquisitionof treasury stock.
(3) Explanation about Future Forecast Information, including Forecast of Consolidated Business Results
As for the business results for the full-year of the fiscal year ending March 31, 2020, the consolidated
business results forecast announced on August 27, 2019 shall be corrected as follows based on the
consolidated business results in the current cumulative second quarter.

Adjustment of forecast of consolidated business results for the full-year of the fiscal year ending March 31,
2020(From April 1, 2019 to March 31, 2020)
Sales(millionyen)

Operatingprofit(millionyen)

Ordinary
profit(millionyen)

Net profit
attributable toowners of theparent(million yen)

Net profit
per share(yen)Previously announced forecast (A)45,600

3,050

3,400

1,350

37.24

This forecast adjustment (B)45,600

3,050

3,200

1,050

30.56

Increase or decrease (B-A)

---

---

ᇞ200

ᇞ300

Increase or decrease ratio (%)

---

---

ᇞ5.9

ᇞ22.2

3,119

4,297

2,861

(Reference) Results of the previous year
(Fiscal Year Ended March 31, 2019)

44,728-3-

79.15

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2020

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Unit: thousand yen)Previous Consolidated
Fiscal Year(As of March 31, 2019)
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
Intangible fixed assets
Goodwill
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total Fixed Assets
Total Assets-4-

Current Consolidated
Second Quarter(As of September 30, 2019)

8,193,697
16,127,374
1,401,188
4,012,943
1,941,748
3,378,698
1,190,214
ᇞ668,052
35,577,813

8,756,255
16,266,512
1,538,322
3,305,089
2,039,559
3,646,523
1,747,005
ᇞ600,508
36,698,759

11,998,454

13,314,867

219,309
175,923395,233

190,067
204,021394,089

23,142,852
2,125,569
ᇞ143,823
25,124,598
37,518,286
73,096,100

22,412,487
1,545,184
ᇞ180,725
23,776,947
37,485,904
74,184,664

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2020
(Unit: thousand yen)Previous Consolidated
Fiscal Year(As of March 31, 2019)
Liabilities
Current Liabilities
Notes and accounts payable
Bonds to be redeemed within a year
Short-term borrowings
Current portion of long-term borrowings
Corporate income tax, etc., payable
Reserve for bonuses
Reserve for officers’ bonuses
Other
Total Current Liabilities
Fixed Liabilities
Bonds payable
Long-term borrowings
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 or 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-5-

Current Consolidated
Second Quarter(As of September 30, 2019)

6,105,195
36,8005,394,122
779,820
300,788
510,407
3,957
3,041,830
16,172,921

6,119,850
36,8008,748,226
657,972
679,867
638,484
2,915
2,978,649
19,862,765

128,000
1,265,465
626,885
92,502
1,348,196
3,461,049
19,633,971

109,600
1,197,759
639,950
91,783
3,172,838
5,211,931
25,074,697

7,541,693
6,653,615
35,130,363
ᇞ4,76449,320,907

7,570,716
6,682,708
33,149,684
ᇞ1,968,516
45,434,592

745,120443
707,571653,518
1,721
434,530

ᇞ147,916

ᇞ119,617

1,305,219

970,152

144,419
2,691,582
53,462,129
73,096,100

147,200
2,558,021
49,109,966
74,184,664

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2020
(2) Quarterly Consolidated Profit and Loss Statement and Consolidated Statement of Comprehensive Income(Quarterly Consolidated Profit and Loss Statement)(Consolidated Cumulative Second Quarter)(Unit: thousand yen)

Sales
Cost of Goods Sold
Gross Profit on Sales
Selling, General and Administrative Expenses
Operating Profit
Non-operating Income
Interest income
Dividend income
Investment profit by equity method
Foreign currency exchange profit
Other
Total Non-operating Income
Non-operating Expenses
Interest expenses
Loss on redemption of investment securities
Transfer to allowance for doubtful accounts
Other
Total Non-operating Expenses
Ordinary Profit
Extraordinary Profits
Profit on sale of fixed assets
Profit on sale of investment securities
Profit on reversal of new share subscription rights
Other
Total Extraordinary Profits
Extraordinary Losses
Loss on retirement of fixed assets
Valuation loss on investment securities
Other
Total Extraordinary Losses
Net profit before taxes, etc.
Corporate income tax, etc.
Net profit or net loss (ᇞ)
Net profit attributable to non-controlling interests
Net profit attributable to owners of the parent or net
loss attributable to owners of the parent (ᇞ)

Previous Consolidated
Cumulative Second Quarter(From April 1, 2018
to September 30, 2018)
22,707,154
18,496,710
4,210,443
2,477,449
1,732,994

Current Consolidated
Cumulative Second Quarter(From April 1, 2019
to September 30, 2019)
22,599,910
18,771,640
3,828,270
2,506,776
1,321,493

163,334
50,256360,187
295,978
212,129
1,081,887

155,386
56,811----154,975
367,172

41,176
31,592
95,88755,883
224,541
2,590,340

47,116
61,160--139,886
248,163
1,440,502

441
65,0106,601
6,790
78,843----14,229--14,2297,435----7,435
2,661,748
740,349
1,921,399
146,165

5,146
9,287
2,894
17,3281,437,402
2,202,543
ᇞ765,140
128,973

1,775,233

ᇞ894,114-6-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2020
(Quarterly Consolidated Statement of Comprehensive Income)(Consolidated Cumulative Second Quarter)(Unit: thousand yen)

Net profit or net loss (ᇞ)
Other comprehensive income
Valuation difference on other securities
Deferred hedge profit or 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 owners of
the parent
Comprehensive income attributable to noncontrolling interests

Previous Consolidated
Cumulative Second Quarter(From April 1, 2018
to September 30, 2018)
1,921,399

Current Consolidated
Cumulative Second Quarter(From April 1, 2019
to September 30, 2019)
ᇞ765,140

ᇞ26,288
ᇞ7,057
ᇞ488,849
13,526

ᇞ91,6211,277
ᇞ258,975
17,126

ᇞ102,046

ᇞ98,834

ᇞ610,714
1,310,684

ᇞ431,026
ᇞ1,196,167

1,336,467

ᇞ1,229,181

ᇞ25,782

33,014-7-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2020
(3) Quarterly Consolidated Cash Flow Statement(Unit: thousand yen)Previous Consolidated
Cumulative Second Quarter(From April 1, 2018
to September 30, 2018)
Cash flow from operating activities
Net profit before taxes, etc.
Depreciation expense
Amortization of goodwill
Stock compensation expenses
Profit on reversal of new share subscription rights
Increase/decrease in allowance for doubtful
accounts (ᇞ: decrease)
Increase/decrease in reserve for bonuses(ᇞ: decrease)
Increase/decrease in provision for productwarranties (ᇞ: decrease)
Increase/decrease in reserve for officers’ bonuses(ᇞ: decrease)
Increase/decrease in net defined benefit liabilities(ᇞ: decrease)
Profit/loss on redemption of investment securities(ᇞ: profit)
Interest and dividend income
Interest expenses
Foreign currency exchange profit/loss (ᇞ: profit)
Investment profit/loss by equity method (ᇞ: profit)
Profit/loss on changes in equity (ᇞ: profit)
Profit/loss on sale of securities and investment
securities (ᇞ: profit)
Valuation profit/loss on investment securities(ᇞ: profit)
Profit/loss on liquidation of affiliated companies(ᇞ: profit)
Profit/loss on sale of fixed assets (ᇞ: profit)
Loss on retirement of tangible fixed assets
Increase/decrease in accounts receivable(ᇞ: increase)
Increase/decrease in inventories (ᇞ: increase)
Increase/decrease in trades payable (ᇞ: decrease)
Increase/decrease in consumption tax, etc., payable(ᇞ: decrease)
Increase/decrease in other assets (ᇞ: increase)
Increase/decrease in other liabilities (ᇞ: decrease)
SubtotalInterest and dividends received
Interest paid
Corporate income tax, etc., paid
Cash flow from operating activities-8-

Current Consolidated
Cumulative Second Quarter(From April 1, 2019
to September 30, 2019)

2,661,748
902,319
29,241
23,965
ᇞ6,601

1,437,402
961,595
29,241
26,820
ᇞ14,229

100,835

ᇞ24,410

ᇞ3,549128,076

ᇞ82

39

ᇞ3,097

ᇞ1,041

23,20737,707

ᇞ13,698

40,413

ᇞ213,591
41,176
ᇞ137,454
ᇞ360,187
ᇞ6,790ᇞ212,197
47,116
26,894
16,672---

ᇞ65,010

2,894

---

9,287

---

750

ᇞ619
2,426

ᇞ63
1,359

ᇞ946,055

ᇞ368,380

ᇞ86,007ᇞ262,819

254,274
83,394

141,268

78,096

ᇞ108,761
ᇞ30,059
1,681,802
293,018
ᇞ42,011
ᇞ848,043
1,084,766

ᇞ287,353
ᇞ124,340
2,150,019
309,747
ᇞ45,422
ᇞ195,569
2,218,775

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2020
(Unit: thousand yen)Previous Consolidated
Cumulative Second Quarter(From April 1, 2018
to September 30, 2018)
Cash flow from investing activities
Expenditure for placement in term deposits
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
Expenditure for lending
Revenue from collection of loans
Increase/decrease in investments and other assets(ᇞ: increase)
Other revenue
Cash flow from investing activities
Cash flow from financing activities
Net increase/decrease in short-term borrowings(ᇞ: decrease)
Revenue from long-term borrowings
Expenditure for repayment of long-term borrowings
Expenditure for repayment of lease liabilities
Expenditure for redemption of bonds
Expenditure for repayment of long-term accrued
amountProceeds from stocks issued
Expenditure for acquisition of treasury stock
Dividends paid
Dividends paid to non-controlling interests
Cash flow from financing activities
Translation differences in cash and cash equivalents
Increase/decrease in cash and cash equivalents(ᇞ: decrease)
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of quarter-9-

Current Consolidated
Cumulative Second Quarter(From April 1, 2019
to September 30, 2019)--ᇞ1,075,368
1,758

ᇞ106,000
ᇞ1,294,806---

ᇞ25,113

ᇞ50,250

ᇞ1,315,662

ᇞ194,899

890,254
ᇞ20,000
33,760380,724--8,510

---

8,109

55,672
ᇞ1,454,698--ᇞ1,248,612

ᇞ211,650

3,495,808

441,600
ᇞ542,270
ᇞ10,830
ᇞ18,400

994,000
ᇞ1,147,154
ᇞ10,063
ᇞ18,400

ᇞ57,586

ᇞ57,586

115,765
ᇞ175
ᇞ1,220,470
ᇞ191,154
ᇞ1,695,171
ᇞ39,20948,306
ᇞ2,285,268
ᇞ1,083,648
ᇞ166,575
ᇞ230,582
ᇞ80,727

ᇞ2,104,313

658,853

8,832,805
6,728,492

7,718,682
8,377,536

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2020
(4) Notes to Quarterly Consolidated Financial Statements(Notes to Assumptions on a Going Concern)
No applicable matter.
(Explanatory Note in Case of Significant Changes in the Amount of Shareholders’ Equity)
No applicable matter.
(Application of Accounting Particular to Preparation of Quarterly Consolidated Financial Statements)(Calculation of tax expenses)
For tax expenses, the effective tax rate is reasonably estimated after application of tax effect accounting for net profit before
taxes in the consolidated fiscal year including the current consolidated second quarter and these are calculated by multiplying thequarterly net profit before taxes by the estimated effective tax rate.
(Changes in Accounting Policy)(Application of IFRS No. 16 (Lease))
Subsidiaries of the Company Group to which IFRS applies have applied IFRS No. 16 “Lease” (published in January 2016)(hereinafter referred to as “IFRS No. 16”) from the consolidated first quarter. In application of IFRS No. 16, we adopted themethod of recognizing the cumulative impact by application of these Standards as of the date of commencement of application,
which is permitted as a transitional measure.
For lease as a lessee which was previously classified into operating lease by applying IAS No. 17, right-of-use assets andlease liabilities are recognized as of the date of commencement of application.
Some assets, which were included in other amount of investments and other assets were transferred to right-of-use assets.
In connection with application of these Standards, in the Quarterly Consolidated Balance Sheet, tangible fixed assets of¥372,024 thousand, other amount of current liabilities of ¥31,850 thousand and fixed liabilities of ¥299,701 thousand increased
respectively and other amount of investments and other assets of ¥41,461 thousand decreased.
Impact by the above change on profit and loss for the current consolidated cumulative second quarter is minor.

- 10 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2020
(Segment Information, etc.)[Segment Information]
I Previous consolidated cumulative second quarter (From April 1, 2018 to September 30, 2018)
1. Information about the amount of sales and profit/loss by reportable segment(Unit: thousand yen)
Reportable segment
Electronicmaterials

Industrial
application
structural
materials

Electric
insulationmaterials

Displaymaterials

14,698,956

4,257,503

1,569,732

1,801,587 22,327,780

---

---

---

14,698,956

4,257,503

1,569,732

1,385,729

742,434

230,980

Other(Note)

Total

Total

Sales
Sales to external customers
Intersegment sales ortransfers
Total
Segment profit(Note)

379,374

22,707,154---

396,797396,797

1,801,587 22,327,780

776,171

23,103,952

108,260

2,547,513---

80,1092,439,252

1. The category “Other” means business segments which are not included in the reportable segments and includes
related goods sales, logistics related businesses and other businesses, etc.
2. Segment profit shows the amount after being reflected in the material review of the initial allocation of theacquisition cost as a result of determination of provisional accounting treatment set forth in “Notes (Notes
Related to Business Combination, etc.).”2. Difference between the total amount of profit/loss of reportable segments and the amount shown in the quarterly
consolidated profit and loss statement and major details for the difference (matters concerning difference adjustment)(Unit: thousand yen)
ProfitAmountTotal of reportable segments

2,439,252

Profit in category “Other”

108,260

Elimination of intersegment transactions

ᇞ54,424

Amortization of goodwill

ᇞ29,241

Expenses of entire company (Note)ᇞ703,377

Adjustment of inventories

ᇞ27,476

Operating profit in quarterly consolidated profit and loss
statement

1,732,994

Note: Expenses of the entire company are mainly general and administrative expenses not attributable to reportablesegments.
3. Information about loss on impairment of fixed assets or goodwill, etc., by reportable segment
No applicable matter.

- 11 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2020
II Current consolidated cumulative second quarter (From April 1, 2019 to September 30, 2019)
1. Information about the amount of sales and profit/loss by reportable segment(Unit: thousand yen)
Reportable segment
Electronicmaterials

Industrial
application
structural
materials

Electric
insulationmaterials

Displaymaterials

Total

14,453,033

4,334,451

1,553,213

1,867,634

22,208,333

391,577

22,599,910

---

---

---

---

---

389,894

389,894

14,453,033

4,334,451

1,553,213

1,867,634

22,208,333

781,471

22,989,804

1,110,657

621,995

173,715150,172

2,056,540

108,274

2,164,814

Other(Note)

Total

Sales
Sales to external customers
Intersegment sales ortransfers
Total
Segment profit

Note: The category “Other” means business segments which are not included in the reportable segments and includes related
goods sales, logistics related businesses and other businesses, etc.
2. Difference between the total amount of profit/loss of reportable segments and the amount shown in the quarterly
consolidated profit and loss statement and major details for the difference (matters concerning difference adjustment)(Unit: thousand yen)
ProfitAmountTotal of reportable segments

2,056,540

Profit in category “Other”

108,274

Elimination of intersegment transactions

ᇞ40,173

Amortization of goodwill

ᇞ29,241

Expenses of entire company (Note)ᇞ747,694

Adjustment of inventories

ᇞ26,212

Operating profit in quarterly consolidated profit and loss
statement

1,321,493

Note: Expenses of the entire company are mainly general and administrative expenses not attributable to reportablesegments.
3. Information about loss on impairment of fixed assets or goodwill, etc., by reportable segment
No applicable matter.
(Notes Related to Business Combination, etc.)
Material review of the initial allocation of the acquisition cost in the comparative information
Although provisional accounting treatment was carried out for the previous consolidated second quarter related to businesscombination with Satosen Co., Ltd. which was conducted on November 30, 2017, determination was made in the previous
consolidated third quarter.
In connection with the determination of provisional accounting treatment, in the comparative information included in thequarterly consolidated financial statements for the current consolidated cumulative second quarter, material review was reflectedin the initial allocation of the acquisition cost, and the provisionally calculated amount of goodwill of ¥355,527 thousand
decreased by ¥63,115 thousand after determination of accounting and it was ¥292,412 thousand. A decrease in goodwill was due
to an increase in other amount of intangible fixed assets of ¥95,039 thousand and in other amount of fixed liabilities of ¥31,923
thousand respectively.
As a result, the impact on the quarterly consolidated profit and loss statement for the previous consolidated cumulative
second quarter is minor.

- 12 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2020
(Important Events after Closing the Accounts)(Transfer of Shares of the Affiliated Company to which the Equity Method is Applied)
The Company entered into a tender offer subscription agreement with Nippon Kayaku Co., Ltd. (hereinafter referred to as“Tender Offeror”) as of August 27, 2019 and the Company subscribed all 9,280,000 shares of Polatechno Co., Ltd., the affiliatedcompany of the Company to which the equity method is applied, for a tender offer carried out by the Tender Offeror for the tender
offer period from August 28, 2019 to October 10, 2019.
The tender offer was concluded upon expiration of the tender offer period as of October 10, 2019 and the settlement of thetender offer was completed as of October 18, 2019. Accordingly, Polatechno Co., Ltd., will be excluded from affiliated companiesof the Company to which the equity method is applied.
Number of shares transferred:
Transfer price:
Profit on sale of investment securities:

9,280,000 shares¥9,215,040 thousand¥1,253,012 thousand- 13 -