Closing Announcement of Fiscal Year Ended March 31, 2020
[Japanese Standards] (Consolidated)
April 30, 2020
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, 2020
Scheduled Date of Submitting Financial Report:
June 26, 2020
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 26, 2020
Yes
Yes for analysts(Indicated by rounding off an amount less than 1 million yen)

1. Consolidated Results for Fiscal Year Ended March 31, 2020 (From April 1, 2019 to March 31, 2020)(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, 2020
Fiscal Year Ended March 31, 2019
(Note)
Comprehensive income:(million yen)%(million yen)%

45,970
2.8
2,762
△11.5
2,783
44,728
9.3
3,119
△14.0
4,297
Fiscal Year Ended March 31, 2020: △117 million yen (---%)
Fiscal Year Ended March 31, 2019: 2,200 million yen (△51.1%)

△35.2
6.3

212
2,861

△92.6
△17.2

%

Net profit per
share

%

Fully diluted net
profit per share(Yen, Sen)

Fiscal Year Ended March 31, 2020
Fiscal Year Ended March 31, 2019
(Reference) Equity method investment income:(million yen)

Net profit attributable toowners of the parent

Ordinary profit

Ordinary profit
ratio of total assets

ROE(Yen, Sen)

Operating profit
ratio of sales

%

%

%

6.14
6.12
0.4
79.15
78.70
5.7
Fiscal Year Ended March 31, 2020: △52 million yen
Fiscal Year Ended March 31, 2019: 558 million yen

3.8
5.9

6.0
7.0

(2) Consolidated Financial Condition
Total assets

Net asset(million yen)

Fiscal Year Ended March 31, 2020
Fiscal Year Ended March 31, 2019
(Reference) Net worth:

Net worth ratio

Net asset per share(million yen)%

(Yen, Sen)

71,70949,01873,09653,462
Fiscal Year Ended March 31, 2020: 46,137 million yen
Fiscal Year Ended March 31, 2019: 50,626 million yen

64.3
69.3

1,387.76
1,397.78(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)

4,823
2,893

6,594
△3,304△4,431△576

14,725
7,718

Fiscal Year Ended March 31, 2020
Fiscal Year Ended March 31, 20192.

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, 2019
Fiscal Year Ended March 31, 2020
Fiscal Year Ending March 31, 2021
(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
30.00

30.00
30.00

1,086
997

37.9
488.6

2.2
2.2

---

---

---

---

Dividends for the fiscal year ending March 31, 2021 have yet to be determined.

3.

Expected Consolidated Results for Fiscal Year Ending March 31, 2021
(From April 1, 2020 to March 31, 2021)(% 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)

Operating profit%(million yen)

Net profit
attributable toowners of the parent

Ordinary profit%(millionyen)%(million
yen)

△4.4
850
900
450
△35.7
△37.5
1,450
△47.5
1,650
900
△8.0
△40.7
Full year
to 2,100 to △24.0
to 2,300
to 1,350
to 0.3
to △17.4
For details, refer to ‘1. Summary of Business Results, etc., (4) Future Outlook’ on page 4 of the attached materials.
21,60042,300to 46,100

Net profit per
share

%

(Yen, Sen)--322.9
to 534.4

13.54
27.07
to 40.61

* 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:

Yes
None
None
None

(3) Number of outstanding shares (common stocks)
1) Number of outstanding shares at the end of the period (including treasury stocks):
Fiscal Year Ended March 31, 2020: 36,381,524 shares,
Fiscal Year Ended March 31, 2019: 36,226,224 shares
2) Number of treasury stocks at the end of the period:
Fiscal Year Ended March 31, 2020: 3,135,830 shares,
Fiscal Year Ended March 31, 2019: 7,378 shares
3) Average number of shares during the year
Fiscal Year Ended March 31, 2020: 34,682,121 shares,
Fiscal Year Ended March 31, 2019: 36,150,184 shares(Reference) Overview of Individual Business Results
Individual Results for Fiscal Year Ended March 31, 2020 (From April 1, 2019 to March 31, 2020)(% indication shows the increase or decrease rate from the previous year)(1) Individual Operating Results
Sales(million yen)

Fiscal Year Ended March 31, 2020
Fiscal Year Ended March 31, 2019

31,63529,269Operating profit%(million yen)

8.1
2.7

1,627
1,533

Net profit per share

Ordinary profit
%

6.1
△21.2

(million yen)

2,365
2,602

△9.1
6.2

(million yen)

%

6,792
1,947

248.8
△22.2

Fully diluted net profit per share(Yen, Sen)

(Yen, Sen)

195.8653.87

195.28
53.56

Fiscal Year Ended March 31, 2020
Fiscal Year Ended March 31, 2019

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

Net asset

Net worth ratio(million yen)

Fiscal Year Ended March 31, 2020
51,59545,688
Fiscal Year Ended March 31, 2019
(Reference) Net worth: Fiscal Year Ended March 31, 2020: 38,765 million yen
Fiscal Year Ended March 31, 2019: 36,427 million yen

38,931
36,571

Net asset per share%(Yen, Sen)

75.1
79.7

1,166.03
1,005.76* 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, 2020

○ 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(Changes in Presentation) ......................................................................................................................... 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, 2020

1.

Summary of Business Results, etc.
(1) Summary of Business Results for the Current YearFor the Japanese economy in the current consolidated fiscal year (hereinafter referred to as “Current Year”),
uncertainty about the future continues to linger due to the spread of the novel coronavirus infection from the
beginning of 2020 in addition to the impact from the ongoing trade friction originating from U.S. trade policies
and a slowdown in the Chinese economy, etc.
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 ¥45,970
million (an increase of 2.8% as compared with the previous year), operating profit was ¥2,762 million (a decreaseof 11.5% as compared with the previous year), ordinary profit was ¥2,783 million (a decrease of 35.2% ascompared with the previous year) and net profit attributable to owners of the parent was ¥212 million (a decreaseof 92.6% 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 ¥29,765 million,
an increase of ¥995 million as compared with the same period in the previous year (3.5% as compared withthe previous year). Segment profit was, due to a drop in unit prices of flexible printed circuit board materials
and deterioration in revenues of Satosen Co., Ltd., ¥2,331 million, a decrease of ¥289 million as comparedwith the same period in the previous year (△11.0% as compared with the previous year).
(Industrial application structural materials)
Due to an increase in sales of aircraft interior materials as compared with the previous year, sales were
¥8,974 million, an increase of ¥579 million as compared with the previous year (6.9% as compared with theprevious year). Segment profit was, due to an increase in sales amount, ¥1,475 million, an increase of ¥82
million as compared with the same period in the previous year (5.9% as compared with the previous year).
(Electric insulation materials)
Due to a decrease in infrastructure-related sales, sales were ¥2,984 million, a decrease of ¥143 million ascompared with the previous year (△4.6% as compared with the previous year). Segment profit was, due to adecrease in sales amount, ¥366 million, a decrease of ¥64 million as compared with the same period in theprevious year (△14.9% as compared with the previous year).
(Display materials)
While steady progress has been made in sales of 3D-related materials, due to a decrease in sales of devices
utilizing polarization by ColorLink Japan, Ltd., sales were ¥3,427 million, a decrease of ¥272 million ascompared with the previous year (△7.4% as compared with the previous year). Segment profit was, as a resultof offsetting the decrease in profit from devices utilizing polarization by profit from 3D-related materials,¥235 million, an increase of ¥120 million as compared with the same period in the previous year (104.8% ascompared with the previous year).
(Other)Sales were ¥818 million, an increase of ¥83 million as compared with the previous year (11.3% 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 ¥71,709 million, a decrease of ¥1,386
million as compared with the end of the previous consolidated fiscal year. This was mainly due to the transfer ofthe shares of Polatechno Co., Ltd., which was an affiliated company, and acquisition of treasury stock, etc.
-2-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2020

Total liabilities were ¥22,691 million, an increase of ¥3,057 million as compared with the end of the previous
consolidated fiscal year. This was mainly due to an increase in corporate income tax, etc., payable of ¥3,127
million and long-term borrowings of ¥1,302 million.
Net assets decreased by ¥4,443 million as compared with the end of the previous consolidated fiscal year. Thiswas mainly due to acquisition of treasury stock of ¥3,200 million, etc.

(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 ¥14,725 million, an increase of ¥7,007 million as compared with the end of the previous consolidated
fiscal year.
(Cash Flow from Operating Activities)
Funds earned from operating activities were ¥4,823 million (an increase of 66.7% as compared with the same
period in the previous year). Major factors for an increase in Funds were net profit before taxes, etc., of ¥3,122
million and depreciation expense of ¥1,968 million, etc.
(Cash Flow from Investing Activities)
Funds earned from investing activities were ¥6,594 million (use of ¥3,304 million in the same period in theprevious year). This was mainly due to revenue from the sale of stocks of affiliated companies of ¥8,981 million,etc.
(Cash Flow from Financing Activities)
Funds used for financing activities were ¥4,431 million (an increase of 668.3% as compared with the same
period in the previous year). This was mainly due to expenditure for acquisition of treasury stock of ¥3,200 million,
etc.
(Reference) Transitions of Cash Flow related Index
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Net worth ratio (%)

68.6

69.3

64.3

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

49.1

39.3

37.2

Ratio of cash flow to interest bearing debt (year)

3.3

2.7

1.7

Interest coverage ratio (times)

25.8

34.2

76.3

(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, 2020

(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.
As of the disclosure of this information, the impact from the novel coronavirus on the business environment of
the Company is still limited, and therefore, as for the consolidated business results for the cumulative second quarterof the fiscal year ending March 31, 2021 (from April 1, 2020 to September 30, 2020), we expect sales of ¥21,600
million, operating profit of ¥850 million, ordinary profit of ¥900 million and net profit attributable to owners of theparent of ¥450 million.
For the full-year forecast, taking into consideration the future impact from the spread of the novel coronavirus
infection, we disclose the forecast of consolidated business results for the fiscal year ending March 31, 2021 adopting
a range format.
We expect business results as follows, setting the upper limit of the range in a case where the impact from thenovel coronavirus converges at an early stage and setting the lower limit of the range in a case where the impact
from the novel coronavirus is prolonged.
Forecast of business results for the full-year of the fiscal year ending March 31, 2021
(From April 1, 2020 to March 31, 2021)
Sales¥423,000 million to ¥461,000 million(a decrease of 8.0% to an increase of 0.3% as compared with the previous year)
Operating profit¥1,450 million to ¥2,100 million(a decrease of 47.5% to a decrease of 24.0% as compared with the previous year)
Ordinary profit¥1,650 million to ¥2,300 million(a decrease of 40.7% to a decrease of 17.4% as compared with the previous year)
Net profit attributable¥900 million to ¥1,350 million
to owners of the parent (an increase of 322.9% to an increase of 534.4% as compared with the previous
year)
The above forecast of business results for the next fiscal year may be subject to change if the spread of the novel
coronavirus infection has a prolonged impact on economic activities into the future and the business results of theCompany are significantly affected.
We will announce the forecast figures of business results as soon as the forecast of business results becomes available.

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, 2020

3.

Consolidated Financial Statements and Major Notes(1) 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
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
Goodwill
Other
Total 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, 2020)

8,193,697
16,127,374
1,401,188
4,012,943
1,941,748
3,378,698
1,190,214△668,052
35,577,813

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

19,427,835△13,845,280
5,582,555

20,082,654△14,210,115
5,872,538

29,125,791

29,537,558△25,210,271△25,575,578

3,915,519

3,961,980

1,949,718
121,693
2,400,451△1,971,483
428,967
11,998,454

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

219,309
175,923395,233--225,017
225,017

23,142,852
218,024
15,289535,679
1,356,575△143,823

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

25,124,598

15,836,423

37,518,286
73,096,100

28,986,578
71,709,484

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended 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
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, 2020)

6,105,195
36,8005,394,122
779,820
17,535
300,788
510,407
3,957
3,024,295
16,172,921

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

128,000
1,265,465
13,201
1,074,271
626,885
92,502
260,723
3,461,049
19,633,971

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

7,541,693
6,653,615
35,130,363△4,76449,320,907

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

745,120443
707,571448,970△1,311
478,798△147,916△141,260

1,305,219

785,197

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

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

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2020

(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
Investment profit by equity method
Foreign exchange profit
Rent income
Other
Total Non-Operating Income
Non-Operating Expenses
Interest expenses
Loss on redemption of investment
securities
Foreign currency exchange loss
Rent 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 impairment
Loss on impairment of goodwill
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, 2018
to March 31, 2019)
44,728,243
36,607,194
8,121,049

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

713,508
1,407,937
104,273
3,957
69,002

718,576
1,524,596
128,247
4,793
76,21361,3115,888

2,641,496

2,525,606

5,001,486

4,983,921

3,119,562

2,762,064

336,000
101,318
558,090160,081
141,079
212,414
1,508,984

327,172
104,317----101,048
199,348
731,886

81,88097,42262,541

138,830--63,473

134,442
79,008

48,687

97,76074,307
330,890
4,297,655

163,233
710,698
2,783,251

33,71965,01014,374
113,104265
1,294,172
16,422
1,310,859

96,725--45,000
53,231
194,956
4,215,803

475,811
175,447
293,587
26,828
971,674
3,122,437

862,516

3,698,729

204,008
1,066,525
3,149,278
287,899△1,020,085
2,678,644
443,792
231,000-7-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2020
interests
Net profit attributable to owners of the parent

2,861,378-8-

212,792

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2020

(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, 2018
to March 31, 2019)
3,149,278

Current consolidated fiscal year
(From April 1, 2019
to March 31, 2020)
443,792△469,322
443△384,361
22,493△296,163△1,755△134,015△27,799△117,745△101,311△948,493
2,200,785△561,044△117,251

2,047,009△307,229

153,776

189,977-9-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2020

(3) Consolidated Statements of Changes in Shareholders’ Equity and Other Net Assets
Previous consolidated fiscal year (From April 1, 2018 to March 31, 2019)(Unit: thousand yen)
Shareholders’ equity
CapitalBalance at the beginning of the period

Capital surplus

7,458,242

6,570,209

83,45083,406

Earned surplus

Treasury stock

33,493,564

Total shareholders’equity△4,46747,517,548

Changes during the period
Issue of new shares
Dividends of surplus

166,857△1,224,579△1,224,579

2,861,378

2,861,378

Net profit attributable to owners of
the parent
Acquisition of treasury stock

△296

△296

Changes in items other thanshareholders’ equity during theperiod (net)Total changes during the period

83,45083,406

1,636,799△296

1,803,359

Balance at the end of the period

7,541,693

6,653,615

35,130,363△4,76449,320,907

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

1,214,473---

1,081,810△176,694

2,119,588

Total net
assets127,640 2,728,960 52,493,738

Changes during the period
Issue of new shares

166,857

Dividends of surplus△1,224,579

Net profit attributable to owners of
the parent

2,861,378△296

Acquisition of treasury stock
Changes in items other thanshareholders’ equity during the period(net)△469,352

443△374,238

28,778△814,369

16,778△37,378△834,968

Total changes during the period△469,352

443△374,238

28,778△814,369

16,778△37,378

968,390

Balance at the end of the period

745,120443

707,571△147,916

1,305,219

144,419 2,691,582 53,462,129- 10 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2020

Current 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

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
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- 11 -△474,890

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

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2020

(4) Consolidated Cash Flow Statement(Unit: thousand yen)Previous consolidated fiscal year
(From April 1, 2018
to March 31, 2019)

Current consolidated fiscal year
(From April 1, 2019
to March 31, 2020)

4,215,803
1,901,582
96,725--58,482
53,6383,122,437
1,968,859
475,811
175,447
43,861
55,402△82

79△87,853

60,109△1,999836

109,999

103,649

55,69371,720△437,318
81,880△431,489
97,422△21,172

10,569△558,090

52,281△64,987△1,291,341

3,876

---

45,000293,587△12,096

82,394△33,719
20,107△265
6,637△7,341△16,422

---

750

---

△5,935△7,033---△517,924△1,561,941△682,445

1,034,154△588,527

799,562

36,330201,531

135,546△332,592

44,988△114,813

3,839,063
603,579△84,622

4,902,303
619,083△63,256△1,460,756△634,236

87,807---

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
Interest expenses
Foreign currency exchange profit/loss (△:profit)Investment profit/loss by equity method (△:profit)Profit/loss on sale of investment securities(△: profit)
Loss on compensation for damages
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
rightsProfit/loss on liquidation of affiliated companies(△: profit)
Increase/decrease in reserve for investment
losses (△: decrease)
Profit/loss on changes in equity (△: profit)
Increase/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)
SubtotalInterest and dividends received
Interest paid
Corporate income tax, etc., paid or refund (△:paid)
Insurance benefits received- 12 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2020
△91,683
2,893,387

Amount paid for compensation for damages
Cash flow from operating activities- 13 ---4,823,894

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2020
(Unit: thousand yen)Previous consolidated fiscal year
(From April 1, 2018
to March 31, 2019)

Current consolidated fiscal year
(From April 1, 2019
to March 31, 2020)△100,000
3,000---△200,000
210,000△200,000△2,758,365△2,757,870

38,574397△43,057△105,378△1,929,842△1,032,333

1,476,584

1,655,788---

8,981,134△55,049
33,500△22,000
19,87730,46344,677△3,304,192

6,594,294

1,295,491△548,879

917,500

1,908,898△1,341,230△1,223,318△20,968△52,153△115,173△115,173△36,800
137,338△296△1,221,488△191,154△576,781△123,536△36,800
87,484△3,200,033△1,085,016△166,575△4,431,566
20,680△1,111,123

7,007,302

8,829,805

7,718,682

7,718,682

14,725,985

Cash flow from investing activities
Expenditure for placement in term deposits
Revenue from refund of term deposits
Expenditure for acquisition 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
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- 14 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2020

(5) Notes Related to Consolidated Financial Statements(Notes on Going Concern)
No applicable matter.
(Changes in Presentation)(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 current consolidated fiscal year. In applicationof IFRS No. 16, we adopted the method of recognizing the cumulative impact by application of these Standards asof 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-ofuse assets and lease 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 rightof-use assets.
In connection with application of these Standards, in the Consolidated Balance Sheet, tangible fixed assets of¥372,069 thousand, other amount of current liabilities of ¥31,077 thousand and other amount of fixed liabilities of¥302,416 thousand increased respectively and other amount of investments and other assets of ¥40,644 thousand
decreased.
Impact by the above change on the Consolidated Profit and Loss Statement is minor.
(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.

- 15 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2020

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, 2018 to March 31, 2019)(Unit: thousand yen)
Reportable segment
Electronicmaterials

Industrial
application
structural
materials

28,770,006

8,395,152

3,127,617

Electric
insulationmaterials

Total

Other
(Note)

Total

3,699,894

43,992,670

735,573

44,728,243

Displaymaterials

Sales
Sales to externalcustomers
Intersegment sales ortransfers
Total

---

---

---

---

---

774,757

774,757

28,770,006

8,395,152

3,127,617

3,699,894

43,992,670

1,510,331

45,503,001

Segment profit

2,620,863

1,393,245

430,901

114,841

4,559,852

192,791

4,752,643

Segment assets

28,191,582

8,187,279

3,224,618

11,269,843

50,873,325

1,229,002

52,102,328

1,397,503

170,987

83,532130,836

1,782,860

21,9991,804,859

---

---

---

8,021,428

8,021,428---

8,021,428

1,958,890

168,807

81,738144,156

2,353,593

6,703

2,360,296

Other
Depreciation
expenseInvestment incompanies to which
the equity method isappliedIncrease in tangible
fixed assets andintangible fixed
assetsNote: 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.
Current 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
assetsNote: 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.

- 16 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2020

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

43,992,670

45,151,206

Sales in category “Other”

1,510,331

1,615,250

Elimination of intersegment transactions△774,757△796,455

Sales in consolidated financial statements

44,728,243

45,970,001

ProfitPrevious consolidated fiscal year

Current consolidated fiscal year

Total of reportable segments

4,559,852

4,408,782

Profit in category “Other”

192,791

222,173

Elimination of intersegment transactions△105,450△92,405

Amortization of goodwill△58,482△43,861△1,443,860△1,707,227

Adjustment of inventories△25,287△25,396

Operating profit in consolidated financial statements

3,119,562

2,762,064(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

50,873,325

44,325,294

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

1,229,002

1,309,738△453,463△673,953

21,472,523

26,773,801△25,287△25,396

73,096,100

71,709,484

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

1,782,860

1,857,683

21,99921,16896,722

104,112

1,901,582

1,982,964

Increase in tangible fixed
assets and intangible fixed
assets2,353,593

2,103,740

6,703

2,636

183,553

167,5552,543,849

2,273,932

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.

- 17 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2020

[Related Information]
Previous consolidated fiscal year (From April 1, 2018 to March 31, 2019)
1. Information by product and service(Unit: thousand yen)
Electronicmaterials
Sales to external customers

28,770,006

Industrial
application
structural
materials
8,395,152

Electric
insulationmaterials

Displaymaterials

Other3,699,894

735,573 44,728,243

3,127,617

Total

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

China

20,775,148

13,236,723

Other Region
10,716,371

Total
44,728,243

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

Taiwan9,495,215

3.

1,759,191

Other Region
744,046

Total
11,998,454

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

Sales

Sumitomo Shoji Chemicals Co., Ltd.

Related segment name5,664,735

Electronic materials businessCurrent 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- 18 -

Electronic materials businessArisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2020

[Information about loss on impairment of fixed assets by reportable segment]
Previous consolidated fiscal year (From April 1, 2018 to March 31, 2019)
Electronicmaterials
Loss onimpairment
Loss onimpairment of
goodwillIndustrial
Electric insulation
applicationmaterials
structural materials

Displaymaterials

Other

Entirecompany/
Elimination

Total

---

---

---

96,725------96,725

---

---

---

---

---

---

---

Current consolidated fiscal year (From April 1, 2019 to March 31, 2020)
Industrial
Electronic
Electric insulation
applicationmaterials
materials
structural materials
Loss onimpairment
Loss onimpairment of
goodwill

Displaymaterials

Other(Unit: thousand yen)
EntireTotal
company/
Elimination

369,122------

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

175,447

---

---

---

---

---

175,447[Information about amortization of goodwill and unamortized balance by reportable segment]
Previous consolidated fiscal year (From April 1, 2018 to March 31, 2019)
Industrial
Electric insulation
Electronic
applicationmaterials
materials
structural materials

Displaymaterials

Other(Unit: thousand yen)
Entirecompany/
Total
Elimination

Amortization

58,482

---

---

---

---

---

58,482

Balance at theend of the period

219,309

---

---

---

---

---

219,309

Current 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(Note)

Displaymaterials

Other(Unit: thousand yen)
Entirecompany/
Total
Elimination

43,861

---

---

---

---

---

43,861

---

---

---

---

---

---

---

In electronic materials, impairment loss of goodwill of ¥175,447 thousand was recorded.

[Information about profit on negative goodwill by reportable segment]
No applicable matter.

- 19 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2020

(Per Share Information)
Previous consolidated fiscal year
(From April 1, 2018
to March 31, 2019)

Current consolidated fiscal year
(From April 1, 2019
to March 31, 2020)

Net asset per share¥1,397.78¥1,387.76

Net profit per share¥79.15¥6.14

Fully diluted net profit per share¥78.70¥6.12(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, 2018
to March 31, 2019)

Current consolidated fiscal year
(From April 1, 2019
to March 31, 2020)

2,861,378

212,792------

2,861,378

212,792

36,150,184

34,682,121

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

---

---

Increase in number of common stocks (shares)

208,623

103,772(208,623)(103,772)

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 stocks (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

Six types of new share subscription
rights (848,500 shares)(Important Events after Closing the Accounts)
No applicable matter.

- 20 -

Eight types of new sharesubscription rights(1,116,800 shares)