Aug 27st, 2019

Arisawa Mfg. Co., Ltd.

FY2019 Q1 Report

Arisawa Mfg. Co., Ltd.

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Contents■ FY2019 Q1 Review by consolidated basis□ FY2019 Forecast by consolidated basis

Arisawa Mfg. Co., Ltd.

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FY2019 Q1 Review

FY2019 Q1 Consolidated Performance（unit：Million Yen）

2019 / 3
Q1
Result2020 / 3
Q1
FCT

2020 / 3
Q1
Resultvs.
Prev. yearvs.
Forecast

Sales
Operating Income
Ordinary Income
Net Income

10,961
842
1,237
858

10,650600
850
550

10,547502594
250

-3.8%

-1.0%

-40.3%-16.3%-51.9%-30.1%-70.8%-54.5%

Exchange rate （Yen / $）110.54110.00107.79at end of period*FCT=Forecast as of 10 May

・Sales and Incomes decreased compared with Prev. year, as well as FCT.
・Operating Income decreased by 16.3% compared with FCT due to drop in profitability ratio in Electronics raw
materials and Industrial materials.
・Ordinary Income decreased by 30.1% compared with FCT due to exchange-rate loss and downturn in Equity method
income.
・Net Income decreased by 54.5% compared with FCT due to no Profit on sales of securities which happened last year.
Arisawa Mfg. Co., Ltd.

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FY2019 Q1 Review

Sales Breakdown by Segment（unit：Million Yen）

Sales

Electronics raw materials
Industrial materials
Insulation materials
Display materials
Related materials, others
Total2019 / 3
Q1
Result2020 / 3
Q1
FCT

2020 / 3
Q1
Resultvs.
Prev. year

vs.
Forecast

6,861
2,172
805
937
186
10,961

6,500
2,150
850
1,000
150
10,650

6,551
2,174
768
849
205
10,547

-4.5%

0.8%

0.1%

1.1%

-4.6%

-9.6%

-9.4%

-15.1%

10.2%

36.7%

-3.8%

-1.0%

*FCT=Forecast as of 10 May

・Compared with Prev. year, Sales decreased in Electronics raw materials, Insulation materials andDisplay materials.
・Compared with FCT, Insulation materials and Display materials were below FCT. Then, Total wasbelow FCT by 1.0%.

Arisawa Mfg. Co., Ltd.

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FY2019 Q1 Review

FY2019 Q1 vs. FY2018 Q1 Segment Comparison
Sales

Segment Profit

2019 / 3
Q1
Result2020 / 3
Q1
Result

6,861
2,172

6,551
2,174(310)

Insulation materials

805

Display materials
Related materials, others

Electronics raw materials
Industrial materials

Total（unit：Million Yen）

2019 / 3
Q1Result2020 / 3Q1
Result448
284(196)2644
397768(37)13273(59)937

849(88)5048(2)186205

195455

1

10,961 10,547(414)

1,277908(369)

Total cost(435)

(406)

842

502+/-

Operating income+/-

(113)

(340)

・Electronics raw materials : Sales and Profit decreased due to slowdown for Rigid Printed Circuit Boards andits materials.
・Industrial materials and Insulation materials : Profit decreased due to an increase in low-margin products
compared with Prev. year.
・Display materials : Sales decreased because deliveries of one shot orders were moved to Q2.
Arisawa Mfg. Co., Ltd.

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FY2019 Q1 Review

FY2019 Q1 Segment Comparison （vs. FCT ）Sales

Segment Profit

FCT as of
10 May1H2020 / 3
Q1
Result

6,500
2,150

6,551
2,174

51

Insulation materials

850

Display materials

Electronics raw materials
Industrial materials

Related materials, others
Total（unit：Million Yen）

FCT as of
10 May1H2020 / 3
Q1
Result448284(22)24470340768(82)12073(47)

1,000849(151)6048(12)

150

205

55

3055

2510,650 10,547(103)

1,020908(112)

Total cost

(420)

(406)

600

502+/-

Operating income+/-*FCT=Forecast

(56)

(98)

・Electronics raw materials : Profit decreased due to slowdown for Rigid Printed Circuit Boards and itsmaterials.
・Industrial materials and Insulation materials : Profit decreased due to an increase in low-margin products
compared with FCT.
・Display materials : Sales and Profit decreased because deliveries of one shot orders were moved to Q2.
Arisawa Mfg. Co., Ltd.

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Contents□ FY2019 Q1 Review by consolidated basis■ FY2019 Forecast by consolidated basisArisawa Mfg. Co., Ltd.

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FY2019 Outlook

Revised Forecast by selling shares of Polatechno Co.,Ltd.

（unit：Million Yen）

1H
Ordinary
Income
FCT as of 1 Aug

1,950Net
Income

1,250

Full year
Ordinary
Net
IncomeIncome

4,100

2,750

Increase factor

850

Profit on sale of the share (after Tax)
Decrease factor
Investment Profit by equity method

(200)

(200)

(500)

(1,550)Tax expense for retained earnings(500)(1,550)

Profit of consolidated subsidiary

(100)

(100)

(200)

(200)

FCT as of 27 Aug

1,650

(600)

3,400

1,350・Polatechno Co., Ltd. is an equity method affiliate of Arisawa Mfg. Co., Ltd.
・Tax expense for retained earnings is recognized based on the decision of selling shares of an equity
method affiliate.
・Investment profit by equity method which was expected will decrease.
Arisawa Mfg. Co., Ltd.

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FY2019 Outlook

FY2019 Sales and Profit Forecast（unit：Million Yen）

FCT as of 27 Aug
2019 / 3
1H
Result2019 / 3
2H
Result2019 / 3
Full year
Result2020 / 3
1H
FCTvs.
Prev.
year

2020 / 32HFCTSales
Operating Income
Ordinary Income
Net Income

22,707 22,021 44,728 22,650 -0.3% 22,950
1,732
1,387
3,119 1,400 -19.2% 1,650
2,589
1,708
4,297 1,650 -36.3% 1,750
1,950
1,772
1,089
2,861(600) -133.9%

Exchange rate （Yen / $）113.57at end of period

110.99110.06

vs.
Prev.
year

2020 / 3
Full year
FCT

vs.
Prev.
year

45,600 1.9%
19.0%
3,050 -2.4%
2.5%
3,400 -20.9%
79.1%
1,350 -52.8%
4.2%

108.00*FCT=Forecast

・We expect Sales increase due to an increase in Insulation materials and Display materials. However, due to the risein fixed-cost and variation of product mix in Electronics raw materials, Operating Income is expected to decrease.
・We expect Ordinary and Net Income decrease due to the recognition of tax expense for retained earnings anddecrease of equity method income by selling shares of Polatechno (Equity method affiliate).
Arisawa Mfg. Co., Ltd.

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FY2019 Outlook

FY2019 Sales Forecast by Segment（unit：Million Yen）

Forecast as of 27 Aug
2020 / 3
1H
FCTvs.
Prev.
year

2020 / 3
2H
FCTvs.
Prev.
year

2020 / 3
Full year
FCTvs.
Prev.
year

Electronics raw materials 14,699 14,071 28,770 14,350
4,257
4,138
8,395 4,300
Industrial materials
1,570
1,558
3,128 1,600
Insulation materials
1,802
1,898
3,700 2,000
Display materials
379
356
735400Related materials, others
22,707 22,021 44,728 22,650
Total

-2.4%

14,550
4,200
1,800
1,900
500
22,9501.4%

28,900
8,500
3,400
3,900
900
45,6000.5%

2019 / 3
1H
Result2019 / 3
2H
Result2019 / 3
Full year
Result

1.0%
1.9%
11.0%
5.5%
-0.3%

・Electronics raw materials : We expect a slight increase.

1.5%
15.5%
0.1%
40.4%
4.2%

1.3%
8.7%
5.4%
22.4%
1.9%

*FCT=Forecast

・Industrial materials : We expect an increase in Honey-comb panel for air-craft.
・Insulation materials : We expect an increase by one shot orders.
・Display materials : We expect an increase in products for healthcare and amusement.
Arisawa Mfg. Co., Ltd.

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FY2019 Outlook

FY2019 Sales and Profit Forecast by Segment （Full year）
Sales
2019 / 3
Full year
Result

FCT as of
27 AugFull year（unit：Million Yen）

Segment Profit
2019 / 3
Full year
Result

FCT as of
27 AugFull year

2,500
1,300(121)1052,621
1,393+/-*FCT=Forecast+/-Electronics raw materials
Industrial materials

28,770 28,900
8,395 8,500

Insulation materials

3,128

3,400

272

431400(31)

Display materials

3,700

3,900

200

115

250

135

735

900

165

192

200

8

44,728 45,600

872

4,752

4,650(102)

Related materials, others
Total

130

Total cost
Operating income(93)(1,633) (1,600)
3,119

3,050(69)・Electronics raw materials : We expect a decrease in Profit due to the rise in fixed-cost and slowdown for
Rigid Printed Circuit Boards.
・Industrial materials and Insulation materials : We expect a decrease in Profit due to an increase in lowmargin products.
・Display materials : We expect an increase in Sales and Profit by one shot orders.
Arisawa Mfg. Co., Ltd.

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FY2019 Outlook

FY2019 Sales and Profit Forecast by Segment （1st-half）
Sales
2019 / 3
1H
Result

FCT as of
27 Aug1H（unit：Million Yen）

Segment Profit
2019 / 3
1H
Result

FCT as of
27 Aug1H

1,150630

(242)

43

1,392742+/-*FCT=Forecast+/-Electronics raw materials
Industrial materials

14,699 14,350
4,257 4,300

Insulation materials

1,570

1,600

30231170(61)Display materials

1,802

2,000

19880

15070379400

21108100(8)22,707 22,650(57)2,553

2,200(353)

Total cost

(821)

(800)

Operating income

1,732

1,400

Related materials, others
Total

Arisawa Mfg. Co., Ltd.

(349)

(112)

(332)

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FY2019 Outlook

FY2019 Sales and Profit Forecast （vs. FCT）
FCT as of 10 May
2020 / 3
1H
FCT

2020 / 3
2H
FCT（unit：Million Yen）

FCT as of 27 Aug
2020 / 3
Full year
FCT

2020 / 3
1H
FCTvs.
FCT
10 May2020 / 3vs.
2HFCT
FCT
10 May2020 / 3Full year
FCTvs.
FCT
10 MaySales
Operating Income
Ordinary Income
Net Income

0.0% 22,950
0.0% 45,600
0.0%
22,650 22,950 45,600 22,650
0.0%
0.0%
0.0%
1,650
3,050
1,400 1,650
3,050 1,400
1,950 2,150
4,100 1,650 -15.4% 1,750 -18.6% 3,400 -17.1%
1,250 1,500
2,750(600) -148.0% 1,950 30.0% 1,350 -50.9%

Exchange rate （Yen / $）110.00at end of period

110.00110.06108.00*FCT=Forecast

・We expect Ordinary and Net Income decrease due to the recognition of tax expense for retained
earnings and decrease of equity method income by selling shares of Polatechno (Equity methodaffiliate).

Arisawa Mfg. Co., Ltd.

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The information and opinions in this presentation were prepared by Arisawa Manufacturing
Company, Ltd.（hereinafter called “Arisawa”） in preparing this presentation, we have relied
upon and assumed, without independent verification, the accuracy and completeness of all
information available from public sources or which was provided to Arisawa or which wasotherwise reviewed by Arisawa.
This presentation is for discussion purposes only and is incomplete without reference to, andshould be viewed solely in conjunction with, the oral briefing provided by Arisawa. Neither
this presentation nor any of its contents may be used for any other purpose without the priorwritten consent of Arisawa.

Arisawa Mfg. Co., Ltd.

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