Closing Announcement of Fiscal Year Ended March 31, 2018
[Japanese GAAP]May 9, 2018
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 28, 2018
Scheduled Date of Submitting Financial Report: June 29, 2018
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 29, 2018
No
Yes for analysts(Indicated by rounding off an amount less than 1 million yen)

1. Consolidated Results for Fiscal Year Ended March 31, 2018 (From April 1, 2017 to March 31, 2018)(1) Consolidated Operating Results(% indication shows the increase or decrease rate from the previous year)
Sales

Operating profit

Ordinary profit(million yen)(million yen)(million yen)%%
40,90918.7
3,627
102 .6
4,044
34,451
ᇞ7.5
1,790
ᇞ39.5
2,690
Fiscal Year Ended March 31, 2018: 4,497 million yen (146.9%)
Fiscal Year Ended March 31, 2017: 1,821 million yen (70.6%)

Fiscal Year Ended March 31, 2018
Fiscal Year Ended March 31, 2017
(Note)
Comprehensive income:Net profit per
share

Fully diluted net
profit per share(Yen, Sen)

%
50.3
ᇞ23.4

Net profit attributable toowners of the parent(million yen)
%
3,452
69.5
2,037
ᇞ24.6

Ordinary profit
ratio of total assets

ROE(Yen, Sen)%

Fiscal Year Ended March 31, 2018
96.31
95.48
7.2
57.20
57.06
4.5
Fiscal Year Ended March 31, 2017
(Reference) Equity method investment income: Fiscal Year Ended March 31, 2018: 463 million yen
Fiscal Year Ended March 31, 2017: 400 million yen

Operating profit
ratio of sales

%

%

5.9
4.3

8.9
5.2

(2) Consolidated Financial Condition
Total assets

Net asset

Net worth ratio(million yen)(million yen)
72,64452,49263,80848,551
Fiscal Year Ended March 31, 2018: 49,635 million yen
Fiscal Year Ended March 31, 2017: 46,051 million yen

Fiscal Year Ended March 31, 2018
Fiscal Year Ended March 31, 2017
(Reference) Net worth:

Net asset per share
%
68.3
72.2

(Yen, Sen)
1,378.12
1,290.93(3) Status of Consolidated Cash Flow
Cash flow fromoperating activities(million yen)
2,181
3,419

Fiscal Year Ended March 31, 2018
Fiscal Year Ended March 31, 20172.

Cash flow frominvesting activities

Cash flow fromfinancing activities(million yen)
ᇞ471
ᇞ1,671(million yen)ᇞ59
419

Cash and cash
equivalents at the end of
the period(million yen)
8,829
7,026

Status of Dividends
Annual dividends
End of 1stquarter

End of 2ndquarter

End of 3rdquarter

End ofyear

AnnualTotal
dividends(annual)Dividend
payout ratio(consolidated)(Yen, Sen) (Yen, Sen) (Yen, Sen) (Yen, Sen) (Yen, Sen) (million yen)--0.00--20.00
20.00
713--0.00--34.00
34.00
1,224

Fiscal Year Ended March 31, 2017
Fiscal Year Ended March 31, 2018
Fiscal Year Ending March 31, 2019
(Forecast)

---

---

---

---

Ratio ofdividends to
net assets(consolidated)

%

%

35.0
35.3

1.5
2.5

---

---

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 year for full-year andfrom the same quarter in the previous year for each quarter)Sales

2nd quarter (cumulative)
Full year

Operating profit

Net profit
attributable toowners of the parent

Ordinary profit

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

(Yen, Sen)

23,40047,700

21.2
16.6

2,000
4,250

26.1
17.2

2,550
5,450

17.0
34.8

1,650
3,600

6.0
4.3

45.81
99.95

* Notes(1) Changes in material subsidiaries during the year (changes in specified subsidiaries accompanying changes inscope of consolidation): Yes
New: 1 company(Company Name: Satosen Co., Ltd.)
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:

None
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, 2018: 36,024,124 shares,
Fiscal Year Ended March 31, 2017: 35,679,624 shares
2) Number of treasury stocks at the end of the period:
Fiscal Year Ended March 31, 2018: 7,084 shares,
Fiscal Year Ended March 31, 2017: 6,536 shares
3) Average number of shares during the year
Fiscal Year Ended March 31, 2018: 35,846,832 shares,
Fiscal Year Ended March 31, 2017: 35,614,798 shares(Reference) Overview of Individual Business Results
Individual Results for Fiscal Year Ended March 31, 2018 (From April 1, 2017 to March 31, 2018)(% indication shows the increase or decrease rate from the previous year)(1) Individual Operating Results
Fiscal Year Ended March 31, 2018
Fiscal Year Ended March 31, 2017

Sales
(million yen)
28,503
23,410

%
21.8
ᇞ9.2

Operating profit(million yen)
%
1,944
232.6
ᇞ58.2
584

Net profit per share
Fiscal Year Ended March 31, 2018
Fiscal Year Ended March 31, 2017

Ordinary profit(million yen)
%
2,451
29.1
ᇞ25.3
1,898

Net profit(million yen)
%
2,503
65.0
ᇞ31.7
1,516

Fully diluted net profit per share(Yen, Sen)

(Yen, Sen)

69.83
42.59

69.22
42.48

(2) Individual Financial Condition
Total assets
Net asset(million yen)(million yen)
Fiscal Year Ended March 31, 201846.49636,13842,64333,852
Fiscal Year Ended March 31, 2017
(Reference) Net worth: Fiscal Year Ended March 31, 2018: 36,010 million yen
Fiscal Year Ended March 31, 2017: 33,708 million yen

Net worth ratio
%
77.4
79.0

Net asset per share(Yen, Sen)
999.83944.94* 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, 2018

○ 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 .......................................................................................................................................... 3
2. Basic Concept of Selection of Accounting Standards ..................................................................................... 4
3. Consolidated Financial Statements and Major Notes ..................................................................................... 5(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(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, 2018

1.

Summary of Business Results, etc.
(1) Summary of Business Results for the Current Year
The Japanese economy in the current consolidated fiscal year (hereinafter referred to as “Current Year”)
continued along a recovery trend due to an increase in exports and improvements in corporate profits, etc.,
against the backdrop of a recovery in the global economy. On the other hand, there are concerns about US
protectionist policies and monetary policy, etc., and uncertainties have continued to linger.
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 ¥40,909
million (an increase of 18.7% as compared with the previous year), operating profit was ¥3,627 million (anincrease of 102.6% as compared with the previous year), ordinary profit was ¥4,044 million (an increase of
50.3% as compared with the previous year) and net profit attributable to owners of the parent was ¥3,452
million (an increase of 69.5% as compared with the previous year).
Sales of each segment were as follows.
(Electronic materials)
Due to the steady advancements in sales of flexible printed circuit board materials, etc., sales were¥26,758 million, an increase of ¥6,451 million as compared with the previous year (31.8% as comparedwith the previous year).
(Industrial application structural materials)
While sales of interior materials for aircraft increased from the previous year, due to a decrease in salesof pressure vessels for water treatment, net sales were ¥7,220 million, a decrease of ¥98 million ascompared with the previous year (1.4% as compared with the previous year).
(Electric insulation materials)
Due to a slight increase in sales from the infrastructure business, sales were ¥3,228 million, an increaseof ¥110 million as compared with the previous year (3.6% as compared with the previous year).
(Display materials)
Due to an increase in sales of 3D-related materials, sales were ¥2,988 million, an increase of ¥185
million as compared with the previous year (6.6% as compared with the previous year).
(Other)Sales were ¥713 million, a decrease of ¥191 million as compared with the previous year (21.2% 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 ¥72,644 million, an increase of ¥8,835
million as compared with the end of the previous consolidated fiscal year. This was mainly due to an increase innotes and accounts receivable of ¥3,328 million and cash and deposits of ¥1,455 million.
Total liabilities were ¥20,151 million, an increase of ¥4,894 million as compared with the end of theprevious consolidated fiscal year. This was mainly due to an increase in short-term borrowings (including
current portion of long-term borrowings) of ¥1,751 million, notes and accounts payable of ¥1,626 million andcorporation income tax, etc., payable of ¥567 million.
Net assets increased by ¥3,941 million as compared with the end of the previous consolidated fiscal year.
This was mainly due to an increase in earned surplus of ¥2,752 million from recording of net profit attributableto owners of the parent.

-2-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2018(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 ¥8,829 million, an increase of ¥1,803 million as compared with the end of the previous consolidated
fiscal year.
(Cash Flow from Operating Activities)
Funds earned from operating activities were ¥2,181 million (a decrease of 36.2% as compared with the same
period in the previous year). Major factors for an increase in Funds were net profit before taxes, etc., of ¥4,745
million and depreciation expense of ¥1,712 million, etc., and the major factor for a decrease in Funds was anincrease in trades receivable of ¥2,663 million, etc.
(Cash Flow from Investing Activities)
Funds used for investing activities were ¥471 million (a decrease of 71.8% as compared with the same
period in the previous year). This was mainly due to revenues from the sale of investment securities of ¥2,987
million, expenditures for acquisition of tangible fixed assets of ¥1,700 million and expenditures for acquisitionof investment securities of ¥1,418 million, etc.
(Cash Flow from Financing Activities)
Funds used for financing activities were ¥59 million (an increase of ¥419 million in the same period in theprevious year). This was mainly due to net increase in short-term borrowings of ¥911 million, revenues fromlong-term borrowings of ¥690 million, expenditures for repayment of long-term borrowings of ¥913 million,
dividends paid of ¥712 million, etc.
(Reference) Transitions of Cash Flow related Index
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2018

Net worth ratio (%)

73.8

72.2

68.3

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

33.6

43.7

48.9

Ratio of cash flow to interest bearing debt (year)

0.9

1.5

3.2

Interest coverage ratio (times)

46.6

70.5

28.5

(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 numberof outstanding 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
consolidated balance sheet. As for interest, “Interest paid” in the consolidated cash flow statement isused.

(4) Future Outlook
Although it is necessary to take into consideration global economic trends and fluctuations in exchange rates,
we expect a gradual economic recovery will continue for the foreseeable future.
Based on such circumstances, we expect sales of ¥47,700 million, operating profit of ¥4,250 million, ordinary
profit of ¥5,450 million and net profit attributable to owners of the parent of ¥3,600 million for the consolidated
business results for the year ending March 31, 2019.

-3-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 20182.

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, 20183.

Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheet(Unit: thousand yen)Previous consolidated fiscal year
(As of March 31, 2017)

Current consolidated fiscal year
(As of March 31, 2018)

7,667,985
12,618,700
797,550
2,602,353
1,301,381
2,095,419
383,814
947,890
ᇞ127,077
28,288,018

9,123,877
15,947,189
1,180,101
3,915,375
1,898,096
2,951,263
584,907
1,328,865
ᇞ562,185
36,367,491

18,970,204
ᇞ13,153,475
5,816,729

17,659,504
ᇞ11,882,630
5,776,874

28,118,092

27,201,403

ᇞ24,769,585

ᇞ23,705,331

3,348,507

3,496,072

1,449,574
58,001
2,234,282
ᇞ1,841,690
392,591
11,065,403

1,836,200
95,9962,339,902
ᇞ1,909,391
430,511
11,635,655

65,48665,486

418,631418,631

23,864,265
210,592--122,604
373,965
ᇞ181,927
24,389,500
35,520,391
63,808,409

23,365,824
218,734
11,731200,976
602,142ᇞ176,835
24,222,574
36,276,860
72,644,352

AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable
Securities
Merchandise and finished goods
Work-in-progress
Raw materials and stores
Deferred tax assets
Other
Allowance for doubtful accounts
Total Current Assets
Fixed Assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Buildings and structures (net)
Machinery, equipment and delivery
equipment
Accumulated depreciation
Machinery, equipment and delivery
equipment (net)Land
Construction in progress
Other
Accumulated depreciation
Other (net)Total tangible fixed assets
Intangible fixed assets
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 other assets
Total Fixed Assets
Total Assets-5-Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2018
(Unit: thousand yen)Previous consolidated fiscal year
(As of March 31, 2017)

Current consolidated fiscal year
(As of March 31, 2018)

5,168,250
2,908,630
446,754
17,086362,974
25,281
447,415
3,573
169--2,299,014
11,679,149

6,794,393
4,242,472
864,130
18,230930,52985
598,261
5,956
125
36,8002,491,601
15,982,585--1,836,093
53,973
1,008,732
558,11257,44863,5993,577,960
15,257,109

164,800
1,642,485
33,691
1,274,507
603,556
92,837357,334
4,169,212
20,151,797

7,317,019
6,429,038
30,740,318
ᇞ3,891
44,482,485

7,458,242
6,570,209
33,492,381
ᇞ4,46747,516,364

942,763
5,153
808,002
ᇞ187,018
1,568,901
143,292
2,356,620
48,551,300
63,808,409

1,214,473--1,081,810
ᇞ176,694
2,119,588
127,640
2,728,960
52,492,554
72,644,352

Liabilities
Current Liabilities
Notes and accounts payable
Short-term borrowings
Current portion of long-term borrowings
Lease liabilities
Corporate income tax, etc., payable
Deferred tax liabilities
Reserve for bonuses
Reserve for officers’ bonuses
Provision for product warranties
Bonds to be redeemed within a year
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 income
New share subscription rights
Non-controlling interest
Total Net Assets
Total Liabilities and Net Assets-6-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2018

(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
Transfer to provision for product warranties
Other
Total Selling, General and Administrative
Expenses
Operating Profit
Non-Operating Income
Interest income
Dividend income
Investment profit by equity method
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
Insurance benefit income
Other
Total Extraordinary Profits
Extraordinary Losses
Loss on impairment
Loss on sale of investment securities
Valuation loss on investment securities
Other
Total Extraordinary Losses
Net profit before taxes, etc.
Corporate income tax, resident tax and business tax
payableAdjustment of corporate income tax, etc.
Total corporate income tax, etc.
Net Profit
Net profit attributable to non-controlling interests
Net profit attributable to owners of the parent

Previous consolidated fiscal year
(From April 1, 2016
to March 31, 2017)34,451,696
28,557,289
5,894,406

Current consolidated fiscal year
(From April 1, 2017
to March 31, 2018)
40,909,534
32,730,617
8,178,916

579,862
1,172,723
88,9503,573
44,5298,281
1192,205,991

707,496
1,293,438
113,3885,956
55,16952,607--2,323,500

4,104,031

4,551,558

1,790,375

3,627,358

335,426
93,573400,006
169,072
255,606
1,253,685

310,701
92,786463,698
159,403
176,539
1,203,130

48,478
16,200129,510
98,591--60,939
353,720
2,690,339

76,46684,446
170,966
83,031
311,796
59,534786,241
4,044,247--13,513
129,723
9,542
152,779

3,268
743,019--105,523
851,812--4,236
1,350
30,55636,1432,806,975

26,02840,202
63,59520,886
150,712
4,745,347

653,576

1,199,341

ᇞ61,839591,737
2,215,238
178,025
2,037,212

ᇞ204,047
995,293
3,750,053
297,508
3,452,544-7-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2018

(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 owners of
the parent
Comprehensive income attributable to noncontrolling interests

Previous consolidated fiscal year
(From April 1, 2016
to March 31, 2017)
2,215,238

Current consolidated fiscal year
(From April 1, 2017
to March 31, 2018)
3,750,053

295,6875,153
ᇞ478,630
ᇞ75,362271,773
ᇞ5,153491,0532,861

ᇞ140,791

ᇞ13,356

ᇞ393,944
1,821,294

747,179
4,497,232

1,846,012

4,003,231

ᇞ24,718

494,001-8-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2018

(3) Consolidated Statements of Changes in Shareholders’ Equity and Other Net Assets
Previous consolidated fiscal year (From April 1, 2016 to March 31, 2017)(Unit: thousand yen)
Shareholders’ equity
CapitalBalance at the beginning of the period

Capital surplus

7,294,347

6,406,366

22,672

22,672

Earned surplus

Treasury stock

29,522,018

Total shareholders’equityᇞ3,67043,219,062

Changes during the period
Issue of new shares

45,344

Dividends of surplus

ᇞ818,912

ᇞ818,912

2,037,212

2,037,212

Change in scope of consolidation
Changes in scope of equity method
Net profit attributable to owners of
the parent
Acquisition of treasury stock

ᇞ221

ᇞ221

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

22,672

22,672

1,218,299

ᇞ221

1,263,423

Balance at the end of the period

7,317,019

6,429,038

30,740,318

ᇞ3,891

44,482,485

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

647,068---

1,204,968

ᇞ91,934

1,760,101

117,201

Total net
assets2,506,066 47,602,431

Changes during the period
Issue of new shares

45,344

Dividends of surplus

ᇞ818,912

Change in scope of consolidation
Changes in scope of equity method
Net profit attributable to owners of
the parent

2,037,212
ᇞ221

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

295,695

5,153

ᇞ396,965

ᇞ95,083

ᇞ191,200

26,091

ᇞ149,445

ᇞ314,554

Total changes during the period

295,695

5,153

ᇞ396,965

ᇞ95,083

ᇞ191,200

26,091

ᇞ149,445

948,868

Balance at the end of the period

942,763

5,153

808,002

ᇞ187,018

1,568,901

143,292

2,356,620 48,551,300-9-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2018

Current consolidated fiscal year (From April 1, 2017 to March 31, 2018)(Unit: thousand yen)
Shareholders’ equity
CapitalBalance at the beginning of the period

Capital surplus

7,317,019

6,429,038

141,222

141,170

Earned surplus

Treasury stock

30,740,318

Total shareholders’equityᇞ3,891

44,482,485

Changes during the period
Issue of new shares

282,393
ᇞ713,461

ᇞ713,461

Change in scope of consolidation

ᇞ4,320

ᇞ4,320Changes in scope of equity method

17,30017,300Net profit attributable to owners of
the parent

3,452,544

3,452,544

Dividends of surplus

Acquisition of treasury stock

ᇞ576

ᇞ576

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

141,222

141,170

2,752,062

ᇞ576

3,033,879

Balance at the end of the period

7,458,242

6,570,209

33,492,381

ᇞ4,46747,516,364

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

942,763

5,153

808,002

ᇞ187,018

1,568,901

143,292

Total net
assets2,356,620 48,551,300

Changes during the period
Issue of new shares

282,393

Dividends of surplus

ᇞ713,461
ᇞ4,320Change in scope of consolidation
ᇞ17,300

Changes in scope of equity method

ᇞ17,300

0

Net profit attributable to owners of
the parent

3,452,544
ᇞ576

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

271,709

ᇞ5,153291,107

10,324567,987

ᇞ15,651

372,339924,675

Total changes during the period

271,709

ᇞ5,153273,807

10,324550,686

ᇞ15,651

372,339

3,941,254

Balance at the end of the period

1,214,473---

1,081,810

ᇞ176,694

2,119,588

127,640- 10 -

2,728,960 52,492,554

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2018

(4) Consolidated Cash Flow Statement(Unit: thousand yen)Previous consolidated fiscal year
(From April 1, 2016
to March 31, 2017)

Current consolidated fiscal year
(From April 1, 2017
to March 31, 2018)

2,806,975
1,678,117--89
44,725

4,745,347
1,712,330
26,028
17,776
42,636119

ᇞ44

ᇞ15,200

131,882

ᇞ3,1342,383

ᇞ70,227

352,842

7,081

---

27,59936,012

ᇞ428,999
ᇞ828
ᇞ129,723
48,47827,679ᇞ400,006

ᇞ403,488----76,466
ᇞ81,697
ᇞ463,698

ᇞ9,276

ᇞ702,816

1,350

63,595

11,407

---

515

---

ᇞ78,205

42,556--8,812
ᇞ8,714-----

ᇞ3,2687,299
ᇞ2,054
ᇞ46,229
ᇞ49,932

ᇞ1,037,746

ᇞ2,663,182

886,484
ᇞ33,473

ᇞ2,152,410
1,375,862

ᇞ85,945

ᇞ35,911

ᇞ286,709
56,101
3,017,346
605,179
129,723
ᇞ31,765
ᇞ260,947--ᇞ40,000
3,419,536

66,227
277,9312,372,440
562,878--ᇞ84,476
ᇞ726,094
57,240--2,181,988

Cash flow from operating activities
Net profit before taxes, etc.
Depreciation expense
Loss on impairment
Amortization of goodwill
Stock compensation expenses
Increase/decrease in provision for productwarranties (ᇞ: decrease)
Increase/decrease in reserve for bonuses(ᇞ: decrease)
Increase/decrease in reserve for officers’ bonuses(ᇞ: decrease)
Increase/decrease in allowance for doubtful
accounts (ᇞ: decrease)
Increase/decrease in other allowance (ᇞ: decrease)
Increase/decrease in net defined benefit liabilities(ᇞ: decrease)
Interest and dividend income
Profit/loss on combined share extinction (ᇞ: profit)
Insurance benefit income
Interest expenses
Foreign currency exchange profit/loss (ᇞ: profit)
Investment profit/loss by equity method (ᇞ: profit)
Profit/loss on sale of investment securities(ᇞ: profit)
Valuation profit/loss on investment securities(ᇞ: profit)
Profit/loss on sale of membership rights (ᇞ: profit)
Profit/loss on sale of golf membership rights (ᇞ:profit)Profit/loss on redemption of investment securities(ᇞ: profit)
Profit/loss on sale of fixed assets (ᇞ: profit)
Loss on retirement of tangible fixed assets
Profit on reversal of new share subscription rights
Profit/loss on changes in equity (ᇞ: profit)
Other extraordinary profit/loss (ᇞ: profit)
Increase/decrease in accounts receivable(ᇞ: increase)
Increase/decrease in inventories (ᇞ: increase)
Increase/decrease in trades payable (ᇞ: decrease)
Increase/decrease in consumption tax, etc., payable(ᇞ: decrease)
Increase/decrease in other assets (ᇞ: increase)
Increase/decrease in other liabilities (ᇞ: decrease)
SubtotalInterest and dividends received
Insurance benefits received
Interest paid
Corporate income tax, etc., paid or refund (ᇞ: paid)
Other revenue
Amount paid for loss on litigation
Cash flow from operating activities- 11 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2018
(Unit: thousand yen)Previous consolidated fiscal year
(From April 1, 2016
to March 31, 2017)

Current consolidated fiscal year
(From April 1, 2017
to March 31, 2018)

ᇞ289,287
421,921
ᇞ1,291,804-----226,918
ᇞ1,700,551
6,392

ᇞ21,501

ᇞ29,580

ᇞ1,666,784

ᇞ1,418,992

1,377,993--ᇞ210,813
8,000

2,987,494
31,096
ᇞ172,342
156,772---

ᇞ549,365---

ᇞ9,302392
ᇞ1,671,883--ᇞ471,462

305,034

911,1072,350,244

690,400

ᇞ1,310,505

ᇞ913,848

ᇞ19,410

ᇞ22,156---

ᇞ116,665

35,423
ᇞ221
ᇞ816,582
ᇞ124,727
419,255
ᇞ54,341

226,159
ᇞ576
ᇞ712,054
ᇞ121,662
ᇞ59,296
262,416

2,112,566

1,913,646

4,901,124

7,026,200

12,508------

ᇞ110,040

7,026,200

8,829,805

Cash flow from investing activities
Expenditure for placement in term deposits
Revenue from refund of term deposits
Expenditure for acquisition of tangible fixed assets
Revenue from sale of tangible fixed assets
Expenditure for acquisition of intangible fixed
assetsExpenditure for acquisition of investment
securities
Revenue from sale of investment securities
Revenue from liquidation of subsidiaries
Expenditure for lending
Revenue from collection of loans
Expenditure for acquisition of shares of a
subsidiary accompanying the change in scope of
consolidation
Increase/decrease in investments and other assets(ᇞ: increase)
Other revenue
Cash flow from investing activities
Cash flow from financing activities
Net increase/decrease in short-term borrowings(ᇞ: decrease)
Revenue from long-term borrowings
Expenditure for repayment of long-termborrowings
Expenditure for repayment of lease liabilities
Expenditure for repayment of long-term accrued
amountProceeds from stocks issued
Expenditure for acquisition of treasury stock
Dividends paid
Dividends paid to non-controlling interests
Cash flow from financing activities
Translation differences in cash and cash equivalents
Increase/decrease in cash and cash equivalents(ᇞ: decrease)
Cash and cash equivalents at the beginning of theperiodIncrease in cash and cash equivalents in connection
with merger
Decrease in cash and cash equivalents in connection
with exclusion from consolidation
Cash and cash equivalents at the end of the period- 12 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2018(5) Notes Related to Consolidated Financial Statements(Notes on Going Concern)
No applicable matter.
(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 todetermine 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 andsales 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 reportablesegments.
“Electronic materials business” produces materials for flexible and rigid printed circuit boards, etc.
“Industrial application structural materials business” produces FW molded products, honeycomb panels andprepregs for aircraft, 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 optical films, etc.
In this regard, from the current consolidated fiscal year, the Company reviewed the reportable segments
triggered by the liquidation of subsidiaries, and “Related goods sales,” a previous reportable segment was included
in “Other.” In connection therewith, reportable segment information for the previous consolidated fiscal year was
prepared based on the reportable segment after the change.
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.

- 13 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 20183.

Information about the amount of sales, profit or loss, assets, liabilities and other items by reportable segment
Previous consolidated fiscal year (From April 1, 2016 to March 31, 2017)(Unit: thousand yen)
Reportable segment
Electronicmaterials

Industrial
application
structural
materials

20,306,830

7,319,538

Displaymaterials

Total

Other
(Note)

3,117,177

2,802,618

33,546,164

905,531 34,451,696

Electric
insulationmaterials

Total

Sales
Sales to externalcustomers
Intersegment sales ortransfers
Total

---

---

---

---

---

20,306,830

7,319,538

3,117,177

2,802,618

33,546,164

Segment profit/loss (ᇞ)

1,850,067

568,401

570,337

ᇞ172,492

2,816,313

Segment assets

20,110,482

7,487,433

3,220,313

10,387,071

41,205,300

1,064,184

189,227

96,292

203,593

1,553,297

29,826

1,583,124

---

---

---

7,338,578

7,338,578---

7,338,578

1,163,852

121,440

21,837

100,805

1,407,934

8,635

1,416,569

753,598

753,598

1,659,130 35,205,294
196,884

3,013,198

1,131,072 42,336,373

Other
Depreciation expense
Investment 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 andincludes related goods sales, logistics related businesses and other businesses, etc.
Current consolidated fiscal year (From April 1, 2017 to March 31, 2018)(Unit: thousand yen)
Reportable segment
Electronicmaterials

Industrial
application
structural
materials

26,758,514

7,220,625

Displaymaterials

Total

Other
(Note)

Total

3,228,116

2,988,521

40,195,778

713,755

40,909,534

Electric
insulationmaterials

Sales
Sales to externalcustomers
Intersegment sales ortransfers
Total

---

---

---

---

---

843,096

843,096

26,758,514

7,220,625

3,228,116

2,988,521

40,195,778

1,556,851

41,752,630

Segment profit/loss (ᇞ)

3,116,093

1,109,805

608,213

ᇞ55,614

4,778,498

240,672

5,019,170

Segment assets

27,044,184

7,974,313

3,416,151

10,924,722

49,359,372

1,454,461

50,813,833

1,195,443

175,801

78,369145,435

1,595,048

25,512

1,620,561

---

---

---

7,713,250

7,713,250---

7,713,250

894,521

136,411

36,20149,642

1,116,776

11,103

1,127,879

Other
Depreciation expense
Investment 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 andincludes related goods sales, logistics related businesses and other businesses, etc.

- 14 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 20184.

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

33,546,164

40,195,778

Sales in category “Other”

1,659,130

1,556,851

Elimination of intersegment transactions

ᇞ753,598

ᇞ843,096

Sales in consolidated financial statements

34,451,696

40,909,534

ProfitPrevious consolidated fiscal year

Current consolidated fiscal year

Total of reportable segments

2,816,313

4,778,498

Profit in category “Other”

196,884

240,672

Elimination of intersegment transactions

ᇞ70,080

ᇞ98,443

ᇞ89

ᇞ17,776

ᇞ1,134,823

ᇞ1,239,914

Adjustment of inventories

ᇞ17,829

ᇞ35,678

Operating profit in consolidated financial statements

1,790,375

3,627,358(Unit: thousand yen)Amortization of goodwill
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

41,205,300

49,359,372

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

1,131,072

1,454,461

ᇞ578,925

ᇞ694,241

22,068,791

22,560,438

ᇞ17,829

ᇞ35,678

63,808,409

72,644,352

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

1,553,297

1,595,048

29,82625,512

94,993

91,768

1,678,117

1,712,330

Increase in tangible fixed
assets and intangible fixed
assets1,407,934

1,116,776

8,635

11,103

184,71295,706

1,601,282

1,223,586

Note: Adjustment of increase in tangible fixed assets and intangible fixed assets is the capital investments in theassets used for the common corporate purpose.

- 15 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2018

[Related Information]
Previous consolidated fiscal year (From April 1, 2016 to March 31, 2017)
1. Information by product and service(Unit: thousand yen)
Electronicmaterials
Sales to external customers

20,306,830

Industrial
application
structural
materials
7,319,538

Electric
insulationmaterials

Displaymaterials

Other2,802,618

905,531 34,451,696

3,117,177

Total

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

China

16,252,218

7,451,964

Other Region
10,747,513

Total
34,451,696

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

Taiwan8,591,956

3.

1,688,748

Other Region
784,699

Total
11,065,403

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

Sales

Sumitomo Shoji Chemicals Co., Ltd.

Related segment name4,695,595

Electronic materials businessCurrent consolidated fiscal year (From April 1, 2017 to March 31, 2018)
1. Information by product and service(Unit: thousand yen)
Electronicmaterials
Sales to external customers

26,758,514

Industrial
application
structural
materials
7,220,625

Electric
insulationmaterials

Displaymaterials

Other

Total

2,988,521

713,755

40,909,534

3,228,116

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

China

18,823,232

12,452,111

Other Region
9,634,189

Total
40,909,534

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

Taiwan9,104,933

3.

1,759,963

Other Region
770,758

Total
11,635,655

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

Sales

Sumitomo Shoji Chemicals Co., Ltd.

Related segment name
6,185,199- 16 -

Electronic materials businessArisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2018

[Information about loss on impairment of fixed assets by reportable segment]
Previous consolidated fiscal year (From April 1, 2016 to March 31, 2017)
No applicable matter.
Current consolidated fiscal year (From April 1, 2017 to March 31, 2018)
Industrial
Electronic
Electric insulation
applicationmaterials
materials
structural materials
Loss onimpairment

---

---

---

Displaymaterials

Other26,028---(Unit: thousand yen)
EntireTotal
company/
Elimination---

26,028[Information about amortization of goodwill and unamortized balance by reportable segment]
Previous consolidated fiscal year (From April 1, 2016 to March 31, 2017)
Industrial
Electric insulation
Electronic
applicationmaterials
materials
structural materials

Displaymaterials

Other(Unit: thousand yen)
Entirecompany/
Total
Elimination

Amortization

---

---

---

89

---

---

89

Balance at theend of the period

---

---

---

---

---

---

---

Current consolidated fiscal year (From April 1, 2017 to March 31, 2018)
Industrial
Electronic
Electric insulation
applicationmaterials
materials
structural materials

Displaymaterials

Other(Unit: thousand yen)
EntireTotal
company/
Elimination

Amortization

17,776

---

---

---

---

---

17,776

Balance at theend of the period

337,751

---

---

---

---

---

337,751

Note: Balance at the end of the period of ¥337,751 thousand in electronic materials is the amount tentatively
calculated as allocation of acquisition costs was not completed.
[Information about profit on negative goodwill by reportable segment]
No applicable matter.

- 17 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2018

(Per Share Information)
Previous consolidated fiscal year
(From April 1, 2016
to March 31, 2017)

Current consolidated fiscal year
(From April 1, 2017
to March 31, 2018)

Net asset per share¥1,290.93¥1,378.12

Net profit per share¥57.20¥96.31

Fully diluted net profit per share¥57.06¥95.48

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, 2016
to March 31, 2017)

Current consolidated fiscal year
(From April 1, 2017
to March 31, 2018)

2,037,212

3,452,544

---

---

2,037,212

3,452,544

35,614,798

35,846,832

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

---

---

Increase in number of common stocks (shares)

85,295314,832(85,295)(314,832)

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

Four types of new sharesubscription rights (602,800 shares)(Important Events after Closing the Accounts)
No applicable matter.

- 18 -

Four types of new sharesubscription rights (567,700 shares)