Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2023
(Based on Japanese GAAP)
November 9, 2023
Company Name:
Arisawa Mfg. Co., Ltd.
Stock code:
5208
Representative:
Representative Director and CEO:Inquiries:
Director and Senior Managing Operating Officer:
Scheduled date to file quarterly securities report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results briefing:

Stock exchange listing: Tokyo(URL https://www.arisawa.co.jp/)
Yuta Arisawa
Takeshi Masuda
Telephone: 025-524-7101
November 14, 2023
December 4, 2023
Yes
Yes (for analysts)(Amounts less than one million yen are rounded down)

1.

Consolidated financial results for the six months ended September 30, 2023
(from April 1, 2023 to September 30, 2023)(1) Consolidated Operating Results (Cumulative)(Percentages indicate year-on-year changes)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Six months ended
Millions of yen%
Millions of yen%
Millions of yen%
Millions of yen%
September 30, 2023
19,895 △13.5
169 △90.9
218 △90.9
563 △78.0
September 30, 2022
2,408
22,994
5.7
1,861 △9.1
5.3
2,563
46.8
(Note)
Comprehensive income:For the six months ended September 30, 2023: 1,377 million yen (△54.1%)
For the six months ended September 30, 2022: 3,003 million yen (67.0%)
Earnings per share
Six months ended
September 30, 2023
September 30, 2022

Diluted earnings per share

Yen
17.02
77.37

Yen
17.00
77.23

(2) Consolidated financial position
Total assets
As of
September 30, 2023
March 31, 2023
(Reference) Total equity:2.

Net assets

Equity ratio

Millions of yen
Millions of yen
44,87567,98367,65947,107
As of September 30, 2023: 44,844 million yen
As of March 31, 2023:
47,056 million yen

Net asset per share
%
66.0
69.5

Yen
1,353.33
1,422.43

Cash dividends
Annual dividendstnd

End of 1 quarterEnd of 3rd quarterEnd of 2 quarter

Yen
-----

Yen
0.00
20.00

Year ended March 31, 2023
Year ending March 31, 2024
Year ending March 31, 2024
(Forecast)(Note)
Existence of adjustment from the most recently announced dividend forecast: None3.

End of year

Annual

Yen
---

Yen
90.00

Yen
90.00

---

25.00

45.00

Forecast of consolidated financial results for the year ending March 31, 2024
(from April 1, 2023 to March 31, 2024)(Percentages indicate year-on-year changes)
Net sales

Full-Year

Millions of yen
42,600Operating profit%△0.3

Millions of yen
1,250

%
△43.9

Ordinary profit
Millions of yen
1,250

%
△54.0

Profit attributable toowners of the parent
Millions of yen
1,350

%
△52.7

Earnings
per share
Yen
40.78

(Note) Revisions to projections of consolidated financial results most recently announced: Yes
For revisions to the full-year forecasts of consolidated financial results, please refer to the “Notice Concerning Differences Between Consolidated
Financial Forecast and Actual Results for the Six Months Ended September 30, 2023, and Revisions to Full-Year Consolidated Financial Forecasts”
disclosed today (November 9, 2023).

* Notes(1 ) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the changes incope of consolidation): None
Newly included: --- (Company Name:)
Excluded: --(Company Name:)(2) Application of special accounting methods for preparing quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement
1) Changes in accounting policies due to revisions to accounting standards and other regulations: None
2) Changes in accounting policies due to other reasons: None
3) Changes in accounting estimates: None
4) Restatement: None
(4) Number of issued shares (common shares)
1) Total number of issued shares at the endof the period (including treasury shares):
2) Number of treasury shares at the end of
the period:3) Average number of shares during theperiod (cumulative from the beginningof the fiscal year):(Note)

As of September
30, 2023:
As of September
30, 2023:
As of September
30, 2023:

33,550,424 sharesFiscal Year Ended
March 31, 2023:

sharesFiscal Year Ended
March 31, 2023:

33,104,555 shares

2Q of Fiscal Year
Ended March 31,
2023:

413,607

33,541,124 shares459,279

shares33,132,891 shares

The shares of the Company (82,700 shares in 2Q of the year ended March 31, 2024 and 87,100 shares in the year ended March 31,2023) held by Custody Bank of Japan, Ltd. (Trust Account) as the trust assets of the “Employee Stock Ownership Plan” are includedin the number of treasury shares at the end of the period.
The shares of the Company held by Custody Bank of Japan, Ltd. (Trust Account) are included in the treasury shares to be deductedin calculation of the average number of shares during the year (84,498 shares in 2Q of the year ended March 31, 2024 and 88,392
shares in 2Q of the year ended March 31, 2023).

* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an
audit corporation.
* Notes regarding the proper use of projections of the results and other matters
Projections of results and future developments are based on information currently available to the Company and certain
assumptions judged by the Company to be reasonable. Various factors could cause actual results to differ materiallyfrom these projections.

Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Six Months Ended September 30, 2023

Contents of Attached Materials
1. Qualitative Information Concerning Current Quarterly Closing Announcement(1) Explanation about Operating Results(2) Explanation about Financial Position(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 Statements of Income
and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
Consolidated Cumulative Second Quarter
Quarterly Consolidated Statement of Comprehensive Income
Consolidated Cumulative Second Quarter(3) Quarterly Consolidated Cash Flows Statement(4) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)(Notes in the Case of Significant Changes in Shareholders’ Equity)(Application of Special Accounting Methods
for Preparing Quarterly Consolidated Financial Statements)(Segment Information, etc.)(Significant Subsequent Events)

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Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Six Months Ended September 30, 2023

1. Qualitative Information Concerning Current Quarterly Closing Announcement(1) Explanation about Operating Results
As for the Japanese economy in the current consolidated cumulative second quarter, the normalization of
economic activity has progressed further as the COVID-19 infections have been subsiding. Meanwhile, looking
overseas, the future prospects remained uncertain due to the persistent high energy and raw material prices
caused by the prolonged situation in Ukraine, global monetary tightening in addition to the economic downturnin China, etc.
Under such circumstances, the operating results of our group for the current consolidated cumulative second
quarter showed net sales of 19,895 million yen (a decrease of 13.5% year-on-year) due to a decrease in salesof electronic materials, which is the main business field, caused by the significant impact from the decrease indemand in the Chinese market, despite an increase in sales of industrial application structural materials. Due
to soaring energy costs and raw material prices in addition to the impact of a decrease in sales, the results interms of profit and loss are as follows: an operating profit was 169 million yen (a decrease of 90.9% year-onyear); an ordinary profit was 218 million yen (a decrease of 90.9% year-on year); and a profit attributable toowners of parent was 563 million yen (a decrease of 78.0% year-on year).

Operating results with respect to each segment are as follows.
(Electronic materials)
Net sales were 11,725 million yen (a decrease of 23.8% year-on-year) due to a decrease in sales of flexible
printed circuit board materials and glass cloth for printed circuit board, while segment loss was 209 million
yen (the segment profit of 1,360million yen year-on-year) caused by the impact from soaring energy costs andraw material prices in addition to a decrease in sales.
(Industrial application structural materials)
Net sales were 5,101 million yen (an increase of 27.2% year-on-year) due to an increase in sales of water
treatment FRP pressure vessels and honey-comb panel for aircraft, while the segment profit was 571 million
yen (a decrease of 3.9% year-on-year).
(Electric insulation materials)
Net sales were 1,232 million yen (a decrease of 1.7% year-on-year) due to a decrease in infrastructure-related
sales, while the segment profit was 113 million yen (an increase of 116.3% year-on-year).
(Display materials)
Net sales were 1,677 million yen (a decrease of 23.1% year-on-year) due to a decrease in sales of 3D-relatedmaterials and polarization control optical components, while the segment profit was 420 million yen (a decreaseof 26.8% year-on-year).
(Other)Net sales were 157 million yen (a decrease of 2.9% year-on-year).

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Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Six Months Ended September 30, 2023

(2) Explanation about Financial Position
Total assets as of the end of the current consolidated cumulative second quarter were 67,983 million yen, an
increase of 323 million yen compared with the end of the previous fiscal year. This was largely due to anincrease of 1,966 million yen in notes and accounts receivable - trade, and contract assets, an increase of 899
million yen in property, plant and equipment, a decrease of 1,749 million yen in cash and deposits, a decreaseof 583 million yen in merchandise and finished goods, and a decrease of 537 million yen in investment
securities, respectively.
Total liabilities were 23,108 million yen, an increase of 2,556 million yen compared with the end of theprevious fiscal year. This was largely due to an increase of 1,031 million yen in notes and accounts payable trade, and an increase of 1,171 million yen in long-term borrowings, respectively.
Total net assets were 44,875 million yen, a decrease of 2,232 million yen compared with the end of theprevious fiscal year. This was largely due to an increase of 969 million yen in foreign currency translation
adjustment and a decrease of 3,088 million yen in retained earnings, respectively.
(3) Explanation about Future Forecast Information, including Forecast of Consolidated Business Results
The Company has revised the consolidated financial forecasts for the fiscal year ending March 31, 2024
considering the recent performance trends. For more information, please refer to the “Notice Concerning
Differences Between Consolidated Financial Forecast and Actual Results for the Six Months Ended September
30, 2023, and Revisions to Full-Year Consolidated Financial Forecasts” disclosed today (November 9, 2023).

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Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Six Months Ended September 30, 2023

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Thousands of yen)Previous Consolidated
Fiscal Year(As of March 31, 2023)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, andcontract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-

Current Consolidated
Second Quarter(As of September 30, 2023)

20,545,580

18,796,244

13,182,106

15,149,073

5,525,035
2,373,079
4,263,762
1,541,170△10,786
47,419,946

4,941,657
2,509,608
4,951,128
933,546△45,788
47,235,470

16,446,181
244,197

17,345,882
227,823

2,545,474
1,049,896△45,9693,549,401
20,239,780
67,659,726

2,007,765
1,212,196△45,617
3,174,344
20,748,050
67,983,520

Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Six Months Ended September 30, 2023

(Thousands of yen)Previous Consolidated
Fiscal Year(As of March 31, 2023)
Liabilities
Current liabilities
Notes and accounts payable-trade
Current portion of bonds payable
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for product warranties
Provision for bonuses
Provision for bonuses for directors (andother officers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for share awards
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeShare acquisition rights
Total net assets
Total liabilities and net assets-5-

Current Consolidated
Second Quarter(As of September 30, 2023)

5,213,263
16,8005,056,253
1,843,441
658,615
42,184
526,795

6,244,757
19,2005,223,031
1,297,329
635,224
38,409504,179

2,162

1,400

2,917,188
16,276,705

3,849,302
17,812,834

2,723,471
50,449700,883
97,119703,383
4,275,306
20,552,012

3,894,965
57,428635,970
100,282
606,826
5,295,474
23,108,308

7,847,873
3,198,618
34,293,471△512,975
44,826,987

7,853,189
3,203,933
31,205,178△460,982
41,801,318

466,417282,699△13,657
1,904,093△127,370－
2,873,695△112,723

2,229,483

3,043,671

51,243
47,107,714
67,659,726

30,22144,875,211
67,983,520

Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Six Months Ended September 30, 2023

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated Cumulative Second Quarter)(Unit: thousand yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using
equity method
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

Previous Consolidated
Cumulative Second Quarter(From April 1, 2022
to September 30, 2022)
22,994,013
18,292,178
4,701,835
2,840,016
1,861,818

Current Consolidated
Cumulative Second Quarter(From April 1, 2023
to September 30, 2023)
19,895,480
16,998,186
2,897,293
2,727,479
169,81476,09340,147425,868
164,122706,232

53,404
19,63580,38576,025229,451

65,18992,406－43,023

94,016
159,205
2,408,845

45,432
180,862
218,403461
1,305,241
40,8701,346,572

781
656,042
19,454676,277

5,407
11,81355,86773,087
3,682,330
1,116,339
2,565,990
2,465
2,563,524

33,003
6,557－
39,560855,120
291,676
563,444－563,444-6-

Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Six Months Ended September 30, 2023

(Quarterly Consolidated Statement of Comprehensive Income)(Consolidated Cumulative Second Quarter)(Thousands of yen)

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests

Previous Consolidated
Cumulative Second Quarter(From April 1, 2022
to September 30, 2022)
2,565,990

Current Consolidated
Cumulative Second Quarter(From April 1, 2023
to September 30, 2023)
563,444△819,279△183,718△10,706
1,240,050

13,657
978,884

2,885

14,64624,170△9,282

437,120
3,003,110

814,187
1,377,632

3,022,253

1,377,632△19,142－-7-

Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Six Months Ended September 30, 2023

(3) Quarterly Consolidated Cash Flows Statement(Thousands of yen)Previous Consolidated
Cumulative Second Quarter(From April 1, 2022
to September 30, 2022)
Cash flows from operating activities
Profit before income taxes
Depreciation
Share-based payment expenses
Gain on reversal of share acquisition rights
Increase (△decrease) in allowance for doubtful
accounts
Increase (△ decrease) in provision for bonuses
Increase (△ decrease) in provision for productwarranties
Increase (△ decrease) in provision for bonuses for
directors (and other officers)
Increase (△ decrease) in provision for shareawardsIncrease (△ decrease) in retirement benefit liability
Loss (△ gain) on redemption of investment
securities
Interest and dividend income
Subsidy income
Interest expenses
Foreign exchange losses (△ gains)Share of loss (△ profit) of entities accounted forusing equity method
Loss (△ gain) on sale of short-term and long-term
investment securities
Loss (△ gain) on sale of non-current assets
Loss on retirement of property, plant andequipment
Impairment losses
Loss on valuation of golf club membership
Decrease (△ increase) in trade receivables
Decrease (△ increase) in inventories
Increase (△ decrease) in trade payables
Increase (△ decrease) in accrued consumption
taxes
Decrease (△ increase) in other assets
Increase (△ decrease) in other liabilities
SubtotalInterest and dividends received
Interest paid
Subsidies received
Income taxes refund (paid)
Net cash provided by (used in) operating activities-8-

Current Consolidated
Cumulative Second Quarter(From April 1, 2023
to September 30, 2023)

3,682,330
1,097,498
18,577△40,870

855,120
1,104,523
21,999△19,4545,523

34,184232,003△22,616△44,999△6,855△3,095△762△41,035

11,071△25,681△43,837△40,063－△116,241△9,652
65,189△251,516△73,039△29,410
92,406△151,210△29,194

43,023△1,249,374△656,042

△461

△781

213

1,682

11,813－△197,010△1,813,237
1,465,803

6,557
175
△1,538,621
90,251
890,233△276,064

276,640△155,290
106,252
2,391,417
176,560△61,841
9,652△955,899
1,559,889

222,760△86,227
1,021,773
99,527△90,679
29,410△356,390
703,642

Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Six Months Ended September 30, 2023

(Thousands of yen)Previous Consolidated
Cumulative Second Quarter(From April 1, 2022
to September 30, 2022)
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from sale of shares of subsidiaries andassociates
Loan advances
Proceeds from collection of loans receivable
Decrease (△increase) in investments and otherassetsNet cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (△ decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities
Redemption of bonds
Repayments of long-term accounts payable - other
Proceeds from issuance of shares
Purchase of treasury shares
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (△ decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-9-

Current Consolidated
Cumulative Second Quarter(From April 1, 2023
to September 30, 2023)△362,025
132,390△1,954,579△200,000
1,653,392△1,383,741

461

1,068

△21,236△332,491
6,780,340△23,172－
824,135－

210,317△20,097
4,305－
23,810△12,629△3,7874,214,436

1,102,021△903,394
2,587,765△1,305,248△57,691△18,400△4,709125,888△749,709

16,7762,141,828△1,857,761△62,060△8,400
－
9,063
△239

△45,813－△2,998,210△9,589△3,379,111△2,974,133－△2,734,927

822,104

599,653

3,217,319△329,609

16,893,109
20,110,428

18,535,854
18,206,244

Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Six Months Ended September 30, 2023

(4) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
No applicable matter.
(Notes in the Case of Significant Changes in Shareholders’ Equity)
No applicable matter.
(Application of Special Accounting Methods for Preparing Quarterly Consolidated Financial Statements)(Calculation of tax expenses)
Tax expenses are calculated by multiplying the quarterly profit before income taxes by an estimated effective
tax rate. Such effective tax rate is reasonably estimated after applying tax effect accounting to the profit before
income taxes for the consolidated fiscal year including the current consolidated second quarter.

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Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Six Months Ended September 30, 2023

(Segment Information, etc.)[Segment Information]
I Previous consolidated cumulative second quarter (From April 1, 2022 to September 30, 2022)
1. Information on the amount of net sales and profit or loss with respect to each reportable segment(Thousands of yen)

Electronicmaterials

Reportable segment
Industrial
Electric
application
Display
insulation
structural
materials
materials
materials

Other(See Note)

Subtotal

Total

Sales
Sales to external customers 15,384,440
Inter-segment sales or--transfers
Net sales
15,384,440
Segment profit

1,360,339

4,010,805

1,254,676

2,181,406

22,831,329

162,684

22,994,013

---

---

---

---

434,860

434,860

4,010,805

1,254,676

2,181,406

22,831,329

597,544

23,428,874

595,00752,547574,404

2,582,299

90,346

2,672,646

Note: The column “Other” represents business operations that do not fall under any of the reportable segments
and includes the related goods sales, the logistics-related operations and other businesses, etc.
2. Difference between the aggregate amount of profit or loss of reportable segments and the pertinent
amount shown on the quarterly consolidated statements of income as well as the key components of suchdifference (Matters concerning difference adjustment)(Thousands of yen)
ProfitAmountTotal of reportable segments

2,582,299

Profit in the category “Other”

90,346

Elimination of inter-segment transactions

4,319

Unallocated corporate expenses (See Note)△748,729

Adjustment of inventories△66,417

Operating profit shown on the quarterly consolidated statements ofincome1,861,818

Note: Unallocated corporate expenses are mostly general and administrative expenses that are not
attributable to any of the reportable segments.
3. Information on impairment loss on non-current assets or goodwill, etc. with respect to each reportablesegment(Significant impairment losses on non-current assets)
In the industrial application structural materials segment, with respect to the assets in which investments
could not be expected to recover due to a downturn in profitability, the Company devalued their carrying
amount to its memorandum value and showed the relevant amount of its loss to extraordinary losses as
impairment losses. In this regard, the amount of the relevant impairment losses shown in the current
consolidated cumulative second quarter is 11,813 thousand yen.

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Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Six Months Ended September 30, 2023

II Current consolidated cumulative second quarter (From April 1, 2023 to September 30, 2023)
1. Information on the amount of net sales and profit or loss with respect to each reportable segment(Thousands of yen)

Electronicmaterials

Reportable segment
Industrial
Electric
application
Display
insulation
structural
materials
materials
materials

Other(See Note)

Subtotal

Total

Sales
Sales to external customers 11,725,893
Inter-segment sales or--transfers
Net sales
11,725,893
Segment profit (loss (△))

Note:

△209,966

5,101,193

1,232,897

1,677,607

19,737,592

157,888

19,895,480

---

---

---

---

448,088

448,088

5,101,193

1,232,897

1,677,607

19,737,592

605,977

20,343,569

571,906

113,641

420,641

896,222

99,319995,541

The column “Other” represents business operations that do not fall under any of the reportablesegments and includes the related goods sales, the logistics-related operations and other businesses,
etc.

2. Difference between the aggregate amount of profit or loss of reportable segments and the pertinent
amount shown on the quarterly consolidated statements of income as well as the key components of suchdifference (Matters concerning difference adjustment)(Thousands of yen)
ProfitAmountTotal of reportable segments

896,222

Profit in the category “Other”

99,319Elimination of inter-segment transactions

3,271

Unallocated corporate expenses (See Note)△815,855

Adjustment of inventories△13,142

Operating profit shown on the quarterly consolidated statements ofincome169,814

Note:

Unallocated corporate expenses are mostly general and administrative expenses that are not
attributable to any of the reportable segments.

3. Information on impairment loss on non-current assets or goodwill, etc. with respect to each reportablesegment(Significant impairment losses on non-current assets)
In the industrial application structural materials segment, with respect to the assets in which investments
could not be expected to recover due to a downturn in profitability, the Company devalued their carrying
amount to its memorandum value and showed the relevant amount of its loss to extraordinary losses as
impairment losses. In this regard, the amount of the relevant impairment losses shown in the current
consolidated cumulative second quarter is 6,557 thousand yen.

(Significant Subsequent Events)
No applicable matter.

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