Closing Announcement of Second Quarter of the Fiscal Year Ending March 31, 2022
[Japanese Standards] (Consolidated)
October 28, 2021
Name of Listed Company:
Code No.:
Representative:
Contact Person:

Arisawa Mfg. Co., Ltd.
5208
Representative Director and CEO:Senior Operating Officer,
Corporate Planning Department:
Scheduled Date of Submitting Financial Report: November 12, 2021
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:
No
December 2, 2021
Yes (for analysts)(Indicated by rounding off an amount less than 1 million yen)

1.

Consolidated Results in Second Quarter of the Fiscal Year Ending March 31, 2022
(From April 1, 2021 to September 30, 2021)(1) Consolidated Operating Results (Cumulative)(% indication shows the increase or decrease rate from the same period in the previous year)
Net profit attributable toSales
Operating profit
Ordinary profit
owners of the parent(million yen)%(million yen)%(million yen)%(million yen)%
Second Quarter of the Fiscal YearEnding March 31, 2022
Second Quarter of the Fiscal Year
Ended March 31, 2021

(Note)---

21,744

2,048

---

---

1,754

---

22,203 △1.8
1,375
4.1
1,347 △6.4
853
Comprehensive income: Second Quarter of the Fiscal Year Ending March 31, 2022: 1,798 million yen (39.2 %)Second Quarter of the Fiscal Year Ended March 31, 2021: 1,291 million yen (--- %)---Net profit per share

2,287

Fully diluted net profit per share(Yen, Sen)

(Yen, Sen)

Second Quarter of the Fiscal YearEnding March 31, 2022
52.38
52.34
Second Quarter of the Fiscal Year
Ended March 31, 2021
25.67
25.63
From the beginning of the year ending March 31, 2022, the “Accounting Standard for Revenue Recognition”, etc., have been applied. Therefore, therate of increase or decrease from the actual figures before the application of this Standard, etc., is not stated.

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

Net assets(million yen)

Net worth ratio

Second Quarter of the Fiscal YearEnding March 31, 2022
68,82847,407
Fiscal Year Ended March 31, 2021
47,444
67,257(Reference) Net worth: Second Quarter of the Fiscal Year Ending March 31, 2022: 46,536 million yen
Fiscal Year Ended March 31, 2021: 46,284 million yen

2.

%

Net asset per share(Yen, Sen)

67.6
68.8

1,397.98
1,388.50

Status of Dividends

Fiscal Year Ended March 31, 2021
Fiscal Year Ending March 31, 2022
Fiscal Year Ending March 31, 2022
(Forecast)(Note)End of 1st quarter(Yen, Sen)-----

End of 2nd quarter(Yen, Sen)
0.00
5.00

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

End of year
(Yen, Sen)
39.00

Annual(Yen, Sen)
39.00

48.00

53.00

---

Existence of adjustment from the most recently announced dividend forecast: Yes(Note) Breakdown of dividends at the end of second quarter in the year ending March 31, 2022: Special Dividend: 5 yen 00 sen
For dividends at the end of second quarter, and year-end, please refer to the “Notice of Adjustment of Forecast of Business Results for the Full-year,
Determination of Interim Dividend and Adjustment of Forecast of Year-end Dividend” which was disclosed on this day (October 28, 2021).

3.

Forecast of Consolidated Business Results for Fiscal Year Ending March 31, 2022
(From April 1, 2021 to March 31, 2022)(% indication shows the increase or decrease rate from the previous period)
Operating profit

Sales
Full Year

(Note)Net profit
attributable to ownersof the parent

Ordinary profit

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

(Yen, Sen)

43,400

---

3,300

---

3,700

---

2,700

---

81.11

Existence of adjustment from the most recently announced forecast of business results: Yes

From the beginning of the year ending March 31, 2022, the “Accounting Standard for Revenue Recognition”, etc., have been applied. Therefore, therate of increase or decrease from the actual figures before the application of this Standard, etc., is not stated.
For details of adjustment of Forecast of Business Results for the Full-year, please refer to the “Notice of Adjustment of Forecast of Business Results for
the Full-year, Determination of Interim Dividend and Adjustment of Forecast of Year-end Dividend” which was disclosed on this day (October 28,2021).

* Notes(1) Changes in material subsidiaries during the current consolidated cumulative quarter (changes in specified
subsidiaries accompanying changes in scope of consolidation): None
New: --- (Company Name:)
Exclusion: --- (Company Name:)(2) Application of accounting particular to preparation of quarterly consolidated financial statements: Yes(Note) For details, please refer to “2. Quarterly Consolidated Financial Statements and Major Notes (4) Notes to Quarterly
Consolidated Financial Statements (Application of Accounting Particular to Preparation of Quarterly Consolidated Financial
Statements)” on page 10 in the attached materials.

(3) Changes in accounting policy, changes in accounting estimates and restatement
1) Changes in accounting policy in connection with the amendment of accounting standards, etc.:
2) Changes in accounting policy other than 1) above:3) Changes in accounting estimate:4) Restatement:(4) Number of outstanding shares (common stocks)
1) Number of outstanding shares at
2Q of Fiscal Yearthe end of year (including treasury Ending March 31,
2022:
stocks):2Q of Fiscal Year
2) Number of treasury stocks at theEnding March 31,
end of year:2022:3) Average number of shares during
the year (cumulative quarter):2Q of Fiscal YearEnding March 31,
2022:

Yes
None
None
None

Fiscal Year Ended
March 31, 2021:

34,470,524 sharessharesFiscal Year Ended
March 31, 2021:

1,136,189

33,332,128 shares

2Q of Fiscal Year
Ended March 31,
2021:

33,251,980 shares

33,590,324 shares

301,809

shares* The quarterly closing announcement is not subject to quarterly review by a certified public accountant or an audit
corporation.
* Explanation about Appropriate Use of the Forecast of Business Results and other Matters to be Noted
Description regarding the future such as the forecast of business results stated in this material is based on information which theCompany has currently obtained and certain assumptions that the Company determines to be reasonable, although actual results may
significantly differ from the forecast depending on various factors.

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2022

Contents of Attached Materials
1. Qualitative Information concerning Current Quarterly Closing Announcement(1) Explanation about Business Results(2) Explanation about Financial Conditions(3) Explanation about Future Forecast Information,
including Forecast of Consolidated Business Results
2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(2) Quarterly Consolidated Profit and Loss Statement
and Quarterly Consolidated Statement of Comprehensive Income
Quarterly Consolidated Profit and Loss Statement
Consolidated Cumulative Second Quarter
Quarterly Consolidated Statement of Comprehensive Income
Consolidated Cumulative Second Quarter(3) Quarterly Consolidated Cash Flow Statement(4) Notes to Quarterly Consolidated Financial Statements(Notes to Assumptions on a Going Concern)(Explanatory Note in Case of Significant Changes in the Amount of Shareholders’ Equity)(Application of Accounting Particular to Preparationof Quarterly Consolidated Financial Statements)(Changes in Accounting Policy)(Additional Information)(Segment Information, etc.)(Important Events after Closing the Accounts)

-1-

2
2
3
3
4
4
6
6
7
8
10
10
10
10
10
11
12
14

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2022

1. Qualitative Information concerning Current Quarterly Closing Announcement(1) Explanation about Business Results
The Japanese economy in the current consolidated cumulative second quarter remained under severe
conditions as the state of emergency was extended due to the impact from the spread of COVID-19
infections and economic activities were restrained. Regarding the outlook, while there are bright signs
due to the increase in the rate of vaccinations and the lifting of the state of emergency, uncertainty remains
as a result of the increasing downside risk on business performance and results of the Company such as
the soaring prices of crude oil and raw materials, etc.
Under such circumstances, for the Company Group (the Company, consolidated subsidiaries and thecompanies to which the equity method is applied), although sales of industrial application structural
materials decreased, sales of electronic materials have been steady, and therefore, for the business resultsin the current cumulative second year, sales were ¥21,744 million (a decrease of 2.1% as compared withthe same period in the previous year*). For profit and loss, operating profit was ¥2,048 million (an increaseof 49.0% of the same*), ordinary profit was ¥2,287 million (an increase of 69.7% of the same*) andquarterly net profit attributable to owners of the parent was ¥1,745 million (an increase of 104.5% of thesame*).
Business results of each segment were as follows.
(Electronic materials)
Due to the steady progress in sales of flexible printed circuit board materials, etc., sales were ¥15,342
million (an increase of 2.9% of the same*) and segment profit was ¥1,839 million (an increase of 37.5%of the same*).
(Industrial application structural materials)
Due to a decrease in sales of aircraft materials, etc., sales were ¥3,368 million (a decrease of 22.5% of
the same*) and segment profit was ¥362 million (a decrease of 24.0% of the same*).
(Electric insulation materials)
Due to an increase in sales of insulation materials for heavy electric machinery, sales were ¥1,244
million (an increase of 7.6% of the same*) and segment profit was ¥138 million (an increase of 103.7%of the same*).
(Display materials)
Due to an increase in sales of devices utilizing polarization by ColorLink Japan, Ltd., etc., sales were
¥1,571 million (an increase of 17.9% of the same*) and segment profit was ¥366 million (an increase of
612.0% of the same*).
(Other)Sales were ¥218 million (a decrease of 52.0% of the same*).

* From the beginning of the current fiscal year ending March 31, 2022, the “Accounting Standard for
Revenue Recognition”, etc., have been applied. The rate of increase or decrease in parentheses showsa simple comparison between the actual results in the current period and those in the previous period
before application of the “Accounting Standard for Revenue Recognition”, etc.

-2-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2022

(2) Explanation about Financial Conditions
Total assets at the end of the current consolidated second quarter were ¥68,828 million, an increase of¥1,570 million as compared with the end of the previous consolidated fiscal year. This was mainly due toincreases in merchandise and finished goods of ¥1,082 million and in raw materials and stores of ¥1,026
million, etc. Liabilities were ¥21,420 million, an increase of ¥167 million as compared with the end of
the previous consolidated fiscal year. This was mainly due to increases in notes and accounts payable of¥661 million and corporate income tax, etc., payable of ¥542 million, etc. Net assets were ¥47,407 million,a decrease of ¥37 million as compared with the end of the previous consolidated fiscal year.
(3) Explanation about Future Forecast Information, including Forecast of Consolidated Business Results
Due to the expected profit from sales of investment securities, etc., we adjusted the forecast of
consolidated business results for the full-year as set forth below.

Adjustment of forecast of consolidated business results for the full-year of the fiscal year ending March 31,
2022(From April 1, 2021 to March 31, 2022)
Sales(millionyen)

Operatingprofit(millionyen)

Ordinary
profit(millionyen)

Net profit
attributable toowners of theparent(million yen)

Net profit
per share(yen)Previously announced forecast (A)43,900

3,300

3,500

2,100

62.96

This forecast adjustment (B)43,400

3,300

3,700

2,700

81.11

Increase or decrease (B-A)

△500

0

200

600

Increase or decrease ratio (%)

△1.1

0

5.7

28.6

46,439

3,118

3,578

2,160

(Reference) Results of the previous year
(Fiscal Year Ended March 31, 2021)

64.94(Note)
The above forecast of business results are based on information currently obtained by the Company
and certain assumptions determined to be reasonable, although actual results may vary significantly dependingon various factors in the future.

-3-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2022

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Unit: thousand yen)Previous Consolidated
Fiscal Year(As of March 31, 2021)
AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable
Notes receivable, accounts receivable andcontract assets
Securities
Merchandise and finished goods
Work-in-progress
Raw materials and stores
Accrued refunded corporation tax, etc.
Other
Allowance for doubtful accounts
Total Current Assets
Fixed Assets
Tangible fixed assets
Intangible fixed assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total Fixed Assets
Total Assets-4-

Current Consolidated
Second Quarter(As of September 30, 2021)

13,215,508
16,766,218

13,161,073
---

---

17,196,140

1,242,430
3,896,377
2,175,632
3,026,247
1,415,974
778,645△161,830
42,355,204

2,284,767
4,978,459
2,234,270
4,052,756--800,839△132,083
44,576,224

13,217,395
244,870

13,306,093
253,356

10,666,038
788,832△14,923
11,439,946
24,902,213
67,257,417

9,839,819
868,126△15,539
10,692,406
24,251,856
68,828,080

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2022
(Unit: thousand yen)Previous Consolidated
Fiscal Year(As of March 31, 2021)
Liabilities
Current Liabilities
Notes and accounts payable
Bonds to be redeemed within a year
Short-term borrowings
Current portion of long-termborrowings
Corporate income tax, etc., payable
Reserve for bonuses
Reserve for officers’ bonuses
Other
Total Current Liabilities
Fixed Liabilities
Bonds payable
Long-term borrowings
Provision for share-based
remuneration
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
incomeValuation difference on othersecurities
Deferred hedge profit or loss
Foreign currency translation
adjustments
Accumulated adjustment for
retirement benefits
Total accumulated othercomprehensive income
Stock acquisition rightNon-controlling interest
Total Net Assets
Total Liabilities and Net Assets

Current Consolidated
Second Quarter(As of September 30, 2021)

6,657,426
36,8003,606,087
182,724

7,318,910
36,8003,905,621
182,724

277,821535,756
3,870
2,817,772
14,118,258

819,885
655,909
2,178
2,642,601
15,564,629

54,4003,761,507---

36,0004,008,647
19,452607,032
89,466
1,181,934
5,694,340
19,812,598

581,242
91,324
1,119,124
5,855,791
21,420,421

7,623,638
4,403,396
33,374,092△1,159,364
44,241,763

7,629,915
3,971,325
32,938,543△299,919
44,239,864

1,569,049

1,337,445△8,237486,242△4,254960,189△3,9593,556

2,043,095

2,296,936

193,962
965,997
47,444,819
67,257,417

183,373
687,484
47,407,659
68,828,080-5-Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2022

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

Sales
Cost of Goods Sold
Gross Profit on Sales
Selling, General and Administrative Expenses
Operating Profit
Non-operating Income
Interest income
Dividend income
Profit on redemption of investment securities
Other
Total Non-operating Income
Non-operating Expenses
Interest expenses
Rent expenses
Other
Total Non-operating Expenses
Ordinary Profit
Extraordinary Profits
Profit on sale of fixed assets
Profit on sale of investment securities
Other
Total Extraordinary Profits
Extraordinary Losses
Loss on retirement of fixed assets
Provision for reserve for share-based remuneration
Other
Total Extraordinary Losses
Net profit before taxes, etc.
Corporate income tax, etc.
Net profit
Net profit attributable to non-controlling interests
Net profit attributable to owners of the parent

Previous Consolidated
Cumulative Second Quarter(From April 1, 2020
to September 30, 2020)
22,203,695
18,486,327
3,717,368
2,342,126
1,375,241

Current Consolidated
Cumulative Second Quarter(From April 1, 2021
to September 30, 2021)
21,744,712
17,055,141
4,689,570
2,640,857
2,048,713

148,698
50,91021,199124,004
344,812

94,14539,520101,189
149,092
383,946

54,14744,313273,895
372,355
1,347,698

56,44841,64847,461
145,558
2,287,101----26,431
26,431

1,298
226,398
43,094
270,791

6,793----6,793
1,367,336
411,729955,607
101,942853,665

12,246
14,0984,053
30,3982,527,494
713,386
1,814,108
68,273
1,745,834-6-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2022

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

Net profit
Other comprehensive income
Valuation difference on other securities
Deferred hedge profit or loss
Foreign currency translation adjustments
Adjustment for retirement benefits
Share of other comprehensive income ofcompanies to which equity method is applied
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of
the parent
Comprehensive income attributable to noncontrolling interests

Previous Consolidated
Cumulative Second Quarter(From April 1, 2020
to September 30, 2020)
955,607

Current Consolidated
Cumulative Second Quarter(From April 1, 2021
to September 30, 2021)
1,814,108

533,739
3,287△237,964
36,471△231,595
3,982
191,193
7,515

568

13,210336,103
1,291,711△15,693
1,798,415

1,297,997

1,999,675△6,286△201,260-7-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2022
(3) Quarterly Consolidated Cash Flow Statement(Unit: thousand yen)Previous Consolidated
Cumulative Second Quarter(From April 1, 2020
to September 30, 2020)
Cash flow from operating activities
Net profit before taxes, etc.
Depreciation expense
Stock compensation expenses
Profit on reversal of stock acquisition rights
Increase/decrease in allowance for doubtful
accounts (△: decrease)
Increase/decrease in reserve for bonuses(△: decrease)
Increase/decrease in provision for productwarranties (△: decrease)
Increase/decrease in reserve for officers’ bonuses(△: decrease)
Increase/decrease in provision for share-based
remuneration(△: decrease)
Increase/decrease in net defined benefit liabilities(△: decrease)
Profit/loss on redemption of investment securities(△: profit)
Interest and dividend income
Subsidy income
Interest expenses
Foreign currency exchange profit/loss (△: profit)
Investment profit/loss by equity method (△: profit)
Profit/loss on sale of securities and investment
securities (△: profit)
Profit/loss on sale of fixed assets (△: profit)
Loss on retirement of tangible fixed assets
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
Subsidy income received
Corporate income tax, etc., paid or refund (△: paid)
Cash flow from operating activities-8-

Current Consolidated
Cumulative Second Quarter(From April 1, 2021
to September 30, 2021)

1,367,336
1,001,911
32,393△26,4312,527,494
1,052,170
25,092△43,094

13,859△21,682△43,022

120,153△1△39△2,543△1,692---

19,452

34,592△14,975

24,209△199,608--54,147
86,00439,991△99,764△133,665△28,226
56,448△61,162△238----712△222,344△1,2986,645

696,277△991,765△77,199

333,086△2,233,961
496,080△222,039△193,353
32,2591,627,729
215,039△90,224--△3,233,587△1,481,043△17,51370,968△204,433
1,623,501
148,501△70,130
28,226
1,137,813
2,867,912

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2022
(Unit: thousand yen)Previous Consolidated
Cumulative Second Quarter(From April 1, 2020
to September 30, 2020)
Cash flow from investing activities
Expenditure for placement in term deposits
Revenue from refund of term deposits
Expenditure for acquisition of securities
Revenue from sale 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
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-term borrowings
Expenditure for repayment of lease liabilities
Expenditure for redemption of bonds
Expenditure for repayment of long-term accrued
amountProceeds from stocks issued
Expenditure for acquisition of treasury stock
Expenditure for acquisition of the shares of a
subsidiary not accompanying a change in the scopeof consolidation
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 beginning of year
Cash and cash equivalents at end of quarter-9-

Current Consolidated
Cumulative Second Quarter(From April 1, 2021
to September 30, 2021)△478,489
200,000△900,000
900,000△788,318-----1,460,600----△882,873
1,298△36,720△36,602△497,421
458,033△19,000
4,510△102,918
1,455,717--4,510

2,571△1,154,833△10,324
1,889,408△141,144
593,706△384,452△32,815△18,400

126,916
519,377△476,362△39,858△18,400△52,988
12,360△173△31,094
10,612△82,836--△992,745△155,966△1,172,618△66,199△779,045△1,293,664△68,154△2,132,510
238,997△3,874,695
14,725,985
10,851,289

2,863,808
11,488,288
14,352,096

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2022

(4) Notes to Quarterly Consolidated Financial Statements(Notes to Assumptions on a Going Concern)
No applicable matter.
(Explanatory Note in Case of Significant Changes in the Amount of Shareholders’ Equity)
The Company carried out retirement of treasury stocks of ¥900,000 shares as of August 31, 2021, based on
the resolution of the board of directors’ meeting held on July 29, 2021. As a result, retained earnings and treasury
stocks decreased by ¥918,310 thousand respectively during the current consolidated cumulative second quarterand retained earnings were ¥32,938,543 thousand and treasury stocks were ¥299,919 thousand at the end of thecurrent consolidated second quarter.
(Application of Accounting Particular to Preparation of Quarterly Consolidated Financial Statements)(Calculation of tax expenses)
For tax expenses, the effective tax rate is reasonably estimated after application of tax effect accounting fornet profit before taxes in the consolidated fiscal year including the current consolidated second quarter and these
are calculated by multiplying the quarterly net profit before taxes by the estimated effective tax rate.
(Changes in Accounting Policy)(Application of the Accounting Standard for Revenue Recognition, etc.)“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020; hereinafterreferred to as the “Revenue Recognition Accounting Standard”), etc., have been applied from the beginning of
the consolidated first quarter and the Company recognizes revenue at the amount expected to be received in
exchange for goods or services when control of the promised goods or services is transferred to the customer.
As a result, for transactions where the role of the Company falls under an agent of sales of products tocustomers, total amount of considerations received from customers have previously been recognized as revenue,
but the method has been changed to recognize revenue at the net amount, subtracting the amount paid to third
parties from the total amount of considerations. In addition, with regard to transactions of providing parts to
suppliers with compensation for which the Company bears a repurchase obligation, the amount equivalent to theending inventory of those parts retained by suppliers are recognized as liabilities. Further, with regard totransactions related to purchasing parts from suppliers for which the Company bears a sell-back obligation, sales
and cost of goods sold have previously been recorded at the time of sell-back to suppliers of parts, but the method
was changed to recognize only the net amount equivalent to processing cost as revenue. Further, for sales to somecustomers, in connection with transfer of control over assets to customers for a certain period, the method ofrecognizing revenue for a certain period according to the progress of manufacture was adopted.
For application of the Revenue Recognition Accounting Standard, etc., the Company complies with thetransitional treatment prescribed in the Revenue Recognition Accounting Standard, paragraph 84, proviso. The
cumulative effects resulting from retroactive application of the new accounting policy before the beginning of
the consolidated first quarter are added to or subtracted from earned surplus at the beginning of the consolidated
first quarter and the new accounting policy has been applied from the balance at the beginning of the period;
provided, however, that by applying the method prescribed in the Revenue Recognition Accounting Standard,paragraph 86, the new accounting policy has not been retroactively applied to contracts for which almost all
revenue has been recognized in accordance with the previous accounting before the beginning of the consolidated
first quarter. With respect to contract amendments which were made before the beginning of the consolidated firstquarter, accounting was made under the terms of contract after reflecting all contract amendments by applying
the method prescribed in the Revenue Recognition Accounting Standard, paragraph 86, (1) and the cumulative
effects were added to or subtracted from earned surplus at the beginning of the consolidated first quarter.
As a result, in the current second quarter consolidated cumulative period, sales decreased by ¥1,980,305
thousand and cost of goods sold decreased by ¥1,949,532 thousand and operating profit, ordinary profit and net
profit before taxes, etc., decreased by ¥30,773 thousand respectively. The balance of earned surplus at the
beginning of the current quarter increased by ¥39,939 thousand.
As the Revenue Recognition Accounting Standard, etc., have been applied, “notes and accounts receivable”
indicated in “current assets” in the consolidated balance sheet for the previous consolidated fiscal year are
included in “notes receivable, accounts receivable and contract assets” from the consolidated first quarter.
According to the transitional treatment prescribed in the Revenue Recognition Accounting Standards, paragraph89-2, reclassification has not been made by the new indication method regarding the previous consolidated fiscal
year. In addition, in accordance with the transitional treatment prescribed in the “Accounting Standard for- 10 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2022

Quarterly Financial Reporting” (ASBJ Statement No. 12, March 31, 2020), paragraph 28-15, the information
related to the disaggregation of the revenue accruing from contracts with customers for the previous consolidated
cumulative second quarter was not stated.
(Application of Accounting Standard for Fair Value Measurement, etc.)“Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019; hereinafterreferred to as the “Fair Value Measurement Standard”), etc., have been applied from the beginning of theconsolidated first quarter. In accordance with the transitional treatment prescribed in the Fair Value Measurement
Standard, paragraph 19 and the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July4, 2019), paragraph 44-2, the new accounting policy prescribed in the Fair Value Measurement Standard, etc., isapplied into the future. There is no impact due to this application.
(Additional Information)(Accounting Estimate)
There was no material change in the assumptions, including the timing of the convergence of the novel
coronavirus infections etc., and accounting estimates, which were stated in the Financial Report for previous
business year.

- 11 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2022

(Segment Information, etc.)[Segment Information]
I Previous consolidated cumulative second quarter (From April 1, 2020 to September 30, 2020)
1. Information about the amount of sales and profit/loss by reportable segment(Unit: thousand yen)

Electronicmaterials

Reportable segment
Industrial
Electric
application
Display
insulation
structural
materials
materials
materials

Other(Note)

Total

Total

Sales
Sales to external customers 14,915,327
Intersegment sales or--transfers
Total
14,915,327
Segment profit

1,337,718

4,343,397

1,156,852

---

---

4,343,397

1,156,852

476,594

67,945

1,333,137 21,748,714

454,981

22,203,695---

417,951

417,951

1,333,137 21,748,714

872,932

22,621,646

134,753

2,068,419---

51,407

1,933,666(Note) 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.
2. Difference between the total amount of profit/loss of reportable segments and the amount shown inthe quarterly consolidated profit and loss statement and major details for the difference (mattersconcerning difference adjustment)(Unit: thousand yen)
ProfitAmountTotal of reportable segments

1,933,666

Profit in category “Other”

134,753
49

Elimination of intersegment transactions
Expenses of entire company (Note)△666,686

Adjustment of inventories△26,540

Operating profit in quarterly consolidated profit and loss statement

1,375,241(Note) Expenses of the entire company are mainly general and administrative expenses not
attributable to reportable segments.
3. Information about loss on impairment of fixed assets or goodwill, etc., by reportable segment
No applicable matter.

- 12 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2022

II Current consolidated cumulative second quarter (From April 1, 2021 to September 30, 2021)
1. Information related to the amount of sales and profit/loss by reportable segment(Unit: thousand yen)

Electronicmaterials

Reportable segment
Industrial
Electric
application
Display
insulation
structural
materials
materials
materials

Other(Note)

Total

Total

Sales
Sales to external customers 15,342,174
Intersegment sales or--transfers
Total
15,342,174
Segment profit

1,839,473

3,368,208

1,244,599

---

---

3,368,208

1,244,599

362,226

138,434

1,571,438 21,526,420

218,291

21,744,712---

415,842

415,842

1,571,438 21,526,420

634,134

22,160,555

95,6132,801,763---

366,016

2,706,150(Note) 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.
2. Difference between the total amount of profit/loss of reportable segments and the amount shown inthe quarterly consolidated profit and loss statement and major details for the difference (mattersconcerning difference adjustment)(Unit: thousand yen)
ProfitAmountTotal of reportable segments

2,706,150

Profit in category “Other”

95,613Elimination of intersegment transactions

8,095

Expenses of entire company (Note)△736,930

Adjustment of inventories△24,214

Operating profit in quarterly consolidated profit and loss statement

2,048,713(Note) Expenses of the entire company are mainly general and administrative expenses not
attributable to reportable segments.
3. Information about loss on impairment of fixed assets or goodwill, etc., by reportable segment
No applicable matter.
4. Information about changes, etc., in reporting segment
As stated in the changes in accounting policy, the Accounting Standard for Revenue Recognition,etc., have been applied from the beginning of the consolidated first quarter to change the accountingof revenue recognition, measurement method of profit or loss of business segment was changed in asimilar manner.
As a result, as compared with the previous method, sales of electronic materials decreased by¥1,254,869 thousand, sales of industrial application structural materials decreased by ¥639,898
thousand, segment profit decreased by ¥37,855 thousand, sales of electronic insulation materials
decreased by ¥6,762 thousand, segment profit increased by ¥7 thousand, sales of display materials
decreased by ¥78,774 thousand and segment profit increased by ¥7,074 thousand.

- 13 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Second Quarter of the Fiscal Year Ending March 31, 2022

(Important Events after Closing the Accounts)(Material Capital Investment)
The Company adopted a resolution at the board of directors’ meeting held on October 28, 2021 that ThinFlex
Corporation in Taiwan (hereinafter refer to as ThinFlex), a consolidated subsidiary of the Company, would
make an investment at its China base to enhance facilities.
1. Overview of Capital Investment
In order to capture the growth of the flexible printed circuit board business in Asia, mainly in Greater
China, a new production line will be established at TopFlex Corporation in China, a wholly-owned
subsidiary of ThinFlex.
The new production line will start operations in the second half of 2023 and we will enhance production
facilities incrementally.
2. Amount of Capital Investment
Amount of investment will be ¥2,200 million in 2022 and the total will be ¥3,500 million, together with
future enhancement.
3. Future Outlook
in the second half of 2023, and the impact on the business results in the year ending March 31, 2022 will
be minor.

- 14 -