Closing Announcement of Third Quarter of the Fiscal Year Ending March 31, 2019
[Japanese Standards] (Consolidated)
February 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: February 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
No(Indicated by rounding off an amount less than 1 million yen)

1.

Consolidated Results in Third Quarter of the Fiscal Year Ending March 31, 2019
(From April 1, 2018 to December 31, 2018)(1) Consolidated Operating Results(% indication shows the increase or decrease rate from the same period in the previous year)(million yen)%(million yen)%

Net profit attributable toowners of the parent(million yen)
%

2,648

0.5

3,644

14.1

2,411

ᇞ9.2

2,655

79.6

Sales

Operating profit(million yen)
Third Quarter of the Fiscal YearEnding March 31, 2019
Third Quarter of the Fiscal Year
Ended March 31, 2018
(Note)
Comprehensive income:

34,696%
14.4

Ordinary profit

30,32517.7
2,636 129.0
3,193
58.6
Third Quarter of the Fiscal Year Ending March 31, 2019: 1,530 million yen (ᇞ67.5%)
Third Quarter of the Fiscal Year Ended March 31, 2018: 4,708 million yen (--- %)Net profit per share

Fully diluted net profit per share(Yen, Sen)

(Yen, Sen)

66.73

66.29

74.18

73.52

Third Quarter of the Fiscal YearEnding March 31, 2019
Third Quarter of the Fiscal Year
Ended March 31, 2018

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

Net assets(million yen)

Net worth ratio

Net asset per share(Yen, Sen)%Third Quarter of the Fiscal YearEnding March 31, 201972,03752,75669.3
1,379.91
Fiscal Year Ended March 31, 2018
72,32252,49368.6
1,378.16(Reference) Net worth: Third Quarter of the Fiscal Year Ending March 31, 2019: 49,928 million yen
Fiscal Year Ended March 31, 2018: 49,637 million yen(Note)In the consolidated third quarter in the year ending March 31, 2019, determination of provisional accounting treatment related to businesscombination was carried out, and for each figure in the year ended March 31, 2018, determination of provisional accounting treatment wasreflected.

2.

Status of Dividends
End of 1st quarter(Yen, Sen)-----

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

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

Fiscal Year Ended March 31, 2018
Fiscal Year Ending March 31, 2019
Fiscal Year Ending March 31, 2019
(Forecast)(Note)
Existence of adjustment from the most recently announced dividend forecast: None

End of year
(Yen, Sen)
34.00
---

Annual(Yen, Sen)
34.00
---

Dividends for the fiscal year ending March 31, 2019 have yet to be determined.

3.

Expected Consolidated Results for Fiscal Year Ending March 31, 2019
(From April 1, 2018 to March 31, 2019)(% indication shows the increase or decrease rate from the previous period)
Sales(million yen)

Operating profit%(million yen)

Net profit
attributable to ownersof the parent

Ordinary profit%(million yen)%(million yen)

Net profit per share%

Full Year
44,8009.5
3,200 ᇞ11.8
4,300
6.3
2,770
ᇞ19.8
(Note)
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.

(Yen, Sen)

76.56

* 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.: None
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
3Q of Fiscal Yearthe end of year (including treasury Ending March 31,
2019:
stocks):3Q of Fiscal Year
2) Number of treasury stocks at theEnding March 31,
end of year:
2019:3) Average number of shares during
the year (cumulative quarter)

3Q of Fiscal YearEnding March 31,
2019:36,189,524 sharesFiscal Year Ended
March 31, 2018:

sharesFiscal Year Ended
March 31, 2018:36,134,606 shares

3Q of Fiscal Year
Ended March 31,
2018:

7,304

36,024,124 shares

7,084

shares35,802,682 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.

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third Quarter of the Fiscal Year Ending March 31, 2019

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 Third Quarter
Quarterly Consolidated Statement of Comprehensive Income
Consolidated Cumulative Third Quarter(3) 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 Consolidated Quarterly Financial Statements)(Additional Information)(Segment Information, etc.)(Notes Related to Business Combination, etc.)

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Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third Quarter of the Fiscal Year Ending March 31, 2019

1. Qualitative Information concerning Current Quarterly Closing Announcement(1) Explanation about Business Results
The Japanese economy in the current consolidated cumulative third quarter continued along arecovery trend due to improvements in corporate profits and the employment environment, etc. On theother hand, future uncertainty has intensified due to ongoing trade friction originating from U.S. trade
policies, concerns about monetary policy, slowing of the Chinese economy and the matter of Brexit.
Under such circumstances, for the business results in the current third quarter cumulative period of
the Company Group (the Company, consolidated subsidiaries and companies to which the equity
method is applied), sales were ¥34,696 million (an increase of 14.4% as compared with the same period
in the previous year). For profit and loss, operating profit was ¥2,648 million (an increase of 0.5% ascompared with the same period in the previous year) and ordinary profit was ¥3,644 million (an increaseof 14.1% as compared with the same period in the previous year) and the quarterly net profit attributableto owners of the parent was ¥2,411 million (a decrease of 9.2% as compared with the same period in theprevious year).
Business results of each segment were as follows.
(Electronic materials)
Due to the steady advancements in sales of flexible printed circuit board materials, etc., sales were
¥22,632 million, an increase of ¥2,735 million as compared with the same period in the previous year
(13.8% as compared with the same period in the previous year).
(Industrial application structural materials)
Due to the steady advancements in sales of pressure vessels for water treatment, etc., sales were
¥6,291 million, an increase of ¥964 million as compared with the same period in the previous year
(18.1% as compared with the same period in the previous year).
(Electric insulation materials)
Due to a slight decrease in infrastructure-related sales, sales were ¥2,406 million, a decrease of ¥19
million as compared with the same period in the previous year (0.8% 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 ¥2,786 million, an
increase of ¥675 million as compared with the same period in the previous year (32.0% as comparedwith the same period in the previous year).
(Other)Sales were ¥579 million, an increase of ¥14 million as compared with the same period in the previous
year (2.5% as compared with the same period in the previous year).
(2) Explanation about Financial Conditions
Total assets at the end of the current consolidated third quarter were ¥72,037 million, a decrease of¥284 million as compared with the end of the previous consolidated fiscal year. This was mainly due toa decrease in cash and deposits of ¥2,230 million. Liabilities were ¥19,281 million, a decrease of ¥547
million as compared with the end of the previous consolidated fiscal year. This was mainly due to adecrease in corporate income tax, etc., payable of ¥597 million. Net assets were ¥52,756 million, an
increase of ¥262 million as compared with the end of the previous consolidated fiscal year. This was
mainly due to an increase in earned surplus of ¥1,186 million.

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Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third Quarter of the Fiscal Year Ending March 31, 2019(3) Explanation about Future Forecast Information, including Forecast of Consolidated Business Results
Forecast of business results for the full-year of the fiscal year ending March 31, 2019, which wasannounced on May 9, 2018, shall be adjusted as follows.

Adjustment of forecasted figures of consolidated business results for the full-year of the fiscal year ending
March 31, 2019
(From April 1, 2018 to March 31, 2019)
Net profit
Operating OrdinarySales
attributable to Net profit
profitprofitowners of the per share(million(million(millionparent
yen)
(yen)
yen)
yen)
(million yen)Previously announced forecast (A)47,700

4,250

5,450

3,600

99.95

This forecast adjustment (B)44,800

3,200

4,300

2,770

76.56

Increase or decrease (B-A)

ᇞ2,900ᇞ1,050ᇞ1,150ᇞ830

Increase or decrease ratio (%)

ᇞ6.1

ᇞ24.7

ᇞ21.1

ᇞ23.1

40,909

3,627

4,044

3,453

(Reference) Results of the previous
year(Fiscal Year Ended March 31, 2018)96.35

For consolidated business results for the full-year of the fiscal year ending March 31, 2019, because itis expected that demand for electronic materials in the fourth quarter will decrease more than expected,
we expect that sales, operating profit, ordinary profit, and net profit attributable to owners of the parent
will all be lower than the previous forecast.
(Note) The above forecast of business results are based on information obtained by the Company andcertain assumptions determined to be reasonable, although actual results may vary significantly
depending on various factors in the future.

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Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third Quarter of the Fiscal Year Ending March 31, 2019

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Unit: thousand yen)Previous Consolidated
Fiscal Year(As of March 31, 2018)
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
Third Quarter(As of December 31, 2018)

9,123,877
15,947,189
1,180,101
3,915,375
1,898,096
2,951,263
1,328,865
ᇞ562,185
35,782,583

6,893,523
16,637,582
1,174,690
3,357,063
1,870,712
3,712,662
1,336,484
ᇞ650,273
34,332,448

11,635,655

12,226,022

277,791
172,949
450,740

233,929
183,792
417,721

23,365,824
1,264,902
ᇞ176,835
24,453,891
36,540,287
72,322,870

23,152,535
2,090,653
ᇞ181,493
25,061,695
37,705,439
72,037,888

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third Quarter of the Fiscal Year Ending March 31, 2019
(Unit: thousand yen)Previous Consolidated
Fiscal Year(As of March 31, 2018)
Liabilities
Current Liabilities
Notes and accounts payable
Short-term borrowings
Current portion of long-term borrowings
Bonds to be redeemed within a year
Corporate income tax, etc., payable
Reserve for bonuses
Reserve for officers’ bonuses
Provision for product warranties
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 income
New share subscription rights
Non-controlling interest
Total Net Assets
Total Liabilities and Net Assets-5-

Current Consolidated
Third Quarter(As of December 31, 2018)

6,794,393
4,242,472
864,130
36,800930,529598,261
5,956
125
2,509,831
15,982,499

6,580,570
4,490,719
901,652
36,800333,347
273,356
4,082
42
3,221,474
15,842,046

164,800
1,642,485
603,556
92,837
1,342,953
3,846,632
19,829,132

128,000
1,239,958
613,755
93,103
1,364,549
3,439,366
19,281,412

7,458,242
6,570,209
33,493,564
ᇞ4,46747,517,548

7,529,099
6,641,022
34,680,132
ᇞ4,703
48,845,550

1,214,473--1,081,810
ᇞ176,694
2,119,588
127,640
2,728,960
52,493,738
72,322,870

300,543
1,707
932,205
ᇞ151,631
1,082,824
134,479
2,693,620
52,756,475
72,037,888

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third Quarter of the Fiscal Year Ending March 31, 2019(2) Quarterly Consolidated Profit and Loss Statement and Consolidated Statement of Comprehensive Income(Quarterly Consolidated Profit and Loss Statement)(Consolidated Cumulative Third 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
Other
Total Non-operating Income
Non-operating Expenses
Interest expenses
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
Other
Total Extraordinary Profits
Extraordinary Losses
Loss on retirement of fixed assets
Valuation loss on investment securities
Compensation for damages
Other
Total Extraordinary Losses
Net profit before taxes, etc.
Corporate income tax, etc.
Net profit
Net profit attributable to non-controlling interests
Net profit attributable to owners of the parent

Previous Consolidated
Cumulative Third Quarter(From April 1, 2017
to December 31, 2017)
30,325,502
24,382,712
5,942,789
3,306,235
2,636,553

Current Consolidated
Cumulative Third Quarter(From April 1, 2018
to December 31, 2018)
34,696,479
28,307,028
6,389,450
3,740,685
2,648,765

237,864
88,389382,051
340,889
1,049,193

247,878
97,087538,963399,547
1,283,475

50,522
329,049
112,652
492,224
3,193,522

62,69285,712
139,597
288,001
3,644,240

2,960
507,155
10,904
521,020

34,12565,01013,546112,681

7,898
63,595--69
71,562
3,642,980
759,050
2,883,929
228,230
2,655,699

48,759--91,683--140,443
3,616,478
982,186
2,634,291
223,1442,411,146-6-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third Quarter of the Fiscal Year Ending March 31, 2019

(Quarterly Consolidated Statement of Comprehensive Income)(Consolidated Cumulative Third Quarter)(Unit: thousand yen)

Net profit
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 Third Quarter(From April 1, 2017
to December 31, 2017)
2,883,929

Current Consolidated
Cumulative Third Quarter(From April 1, 2018
to December 31, 2018)
2,634,291

1,574,004
ᇞ5,153
288,0247,238

ᇞ913,898
1,707
ᇞ188,103
20,289

ᇞ39,705

ᇞ24,089

1,824,407
4,708,337

ᇞ1,104,094
1,530,197

4,346,209

1,374,383

362,127

155,813-7-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third Quarter of the Fiscal Year Ending March 31, 2019(3) 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 Consolidated Quarterly Financial Statements)(Calculation of tax expenses)
For tax expenses, the effective tax rate is reasonably estimated after application of tax effect accounting fornet profit before taxes in the consolidated fiscal year including the current consolidated third quarter and these
are calculated by multiplying the quarterly net profit before taxes by the estimated effective tax rate.
(Additional Information)(Application of “Partial Amendment of the ‘Accounting Standards for Tax Effect Accounting,’” etc.)“Partial Amendment of the ‘Accounting Standards for Tax Effect Accounting’” (Accounting Standards for
Business Enterprises No. 28, February 16, 2018), etc., has been applied from the beginning of the first quarter
consolidated fiscal period. Accordingly, deferred tax assets are indicated in the category of investments andother assets and deferred tax liabilities are indicated in the category of fixed liabilities.
(Segment Information, etc.)[Segment Information]
I. Previous consolidated cumulative third quarter (From April 1, 2017 to December 31, 2017)
1. Information about the amount of sales and profit/loss by reportable segment(Unit: thousand yen)

Electronicmaterials
Sales
Sales to externalcustomers
Intersegment sales ortransfers
Total
Segment profit or loss (ᇞ)

Reportable segment
Industrial
Electric
application
Display
insulation
structural
materials
materials
materials

19,896,877

5,326,627

2,425,983

---

---

---

19,896,877

5,326,627

2,425,983

2,332,550

804,644455,288

Other(Note)

Total

2,110,567 29,760,055

Total

565,446

30,325,502---

625,277625,277

2,110,567 29,760,055

1,190,723

30,950,779

181,340

3,662,070---

ᇞ111,752

3,480,730(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 thequarterly consolidated profit and loss statement and major details for the difference (matters concerning
difference adjustment)(Unit: thousand yen)
ProfitAmountTotal of reportable segments

3,480,730

Profit in category “Other”

181,340

Elimination of intersegment transactions

ᇞ68,191

Expenses of entire company (Note)ᇞ931,336

Adjustment of inventories

ᇞ25,988

Operating profit in quarterly consolidated profit and loss
statement

2,636,553

Note: Expenses of the entire company are mainly general and administrative expenses not
attributable to reportable segments.

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Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third Quarter of the Fiscal Year Ending March 31, 2019

3. Information about loss on impairment of fixed assets or goodwill, etc., by reportable segment(Material Changes in the Amount of Goodwill)
For “Electronic Materials,” in connection with acquisition of the shares of Satosen Co., Ltd., thecompany has been included in the scope of consolidation from the consolidated third quarter. The
increased amount in goodwill due to the above event was ¥292,412 thousand in the current consolidated
cumulative third quarter. In this regard, the amount of goodwill shows the amount after being reflected in
the material review of the initial allocation of the acquisition cost as a result of determination ofprovisional accounting treatment set forth in “Notes (Notes Related to Business Combination, etc.).”II. Current consolidated cumulative third quarter (From April 1, 2018 to December 31, 2018)
1. Information about the amount of sales and profit/loss by reportable segment(Unit: thousand yen)

Electronicmaterials
Sales
Sales to externalcustomers
Intersegment sales ortransfers
Total
Segment profit

Reportable segment
Industrial
Electric
application
Display
insulation
structural
materials
materials
materials

Other(Note)

Total

Total

22,632,723

6,291,123

2,406,831

2,786,181

34,116,860

579,619

34,696,479

---

---

---

---

---

594,710594,710

22,632,723

6,291,123

2,406,831

2,786,181

34,116,860

1,174,330

35,291,190

2,240,316

1,040,188344,258

93,0683,717,831

151,577

3,869,408

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 thequarterly consolidated profit and loss statement and major details for the difference (matters concerning
difference adjustment)(Unit: thousand yen)
ProfitAmountTotal of reportable segments

3,717,831

Profit in category “Other”

151,577

Elimination of intersegment transactions

ᇞ81,160

Amortization of goodwill

ᇞ43,861
ᇞ1,071,575

Expenses of entire company (Note)
Adjustment of inventories

ᇞ24,045

Operating profit in quarterly consolidated profit and loss
statement

2,648,765

Note: Expenses of the entire company are mainly general and administrative expenses not
attributable to reportable segments.
3. Information about loss on impairment of fixed assets or goodwill, etc., by reportable segment
No applicable matter.
(Notes Related to Business Combination, etc.)(Determination of provisional accounting treatment related to business combination and 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 third quarter
related to business combination with Satosen Co., Ltd. which was conducted in the previous consolidated
third quarter, determination was made in the current consolidated third quarter.
In connection with the determination of provisional accounting treatment, in the comparative
information included in the quarterly consolidated financial statements for the current consolidated-9-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third Quarter of the Fiscal Year Ending March 31, 2019

cumulative third quarter, material review was reflected in the initial allocation of the acquisition cost.
As a result, 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 amountof fixed liabilities of ¥31,923 thousand respectively.

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