Closing Announcement of First Quarter of the Fiscal Year Ending March 31, 2020
[Japanese Standards] (Consolidated)
August 1, 2019
Name of Listed Company:
Code No.:
Representative:
Contact Person:

Arisawa Mfg. Co., Ltd.
5208
Representative Director and CEO:Operating Officer,
Corporate Planning Department:
Scheduled Date of Submitting Financial Report: August 9,2019
Scheduled Date of Commencement of Dividend Payment: --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

No
No(Indicated by rounding off an amount less than 1 million yen)

1.

Consolidated Results in First Quarter of the Fiscal Year Ending March 31, 2020
(From April 1, 2019 to June 30, 2019)(% indication shows the increase or decrease rate(1) Consolidated Operating Results (Cumulative)
from the previous year)
Sales

Operating profit(million yen)First Quarter of the Fiscal YearEnding March 31, 2020
First Quarter of the Fiscal Year
Ended March 31, 2019
(Note)
Comprehensive income:

10,547%

Net profit attributable toowners of the parent(million yen)%

Ordinary profit(million yen)%(million yen)

%

502

ᇞ40.3

594

ᇞ51.9

ᇞ3.8

10,961
19.9
842
34.7
1,237
52.6
First Quarter of the Fiscal Year Ending March 31, 2020: ᇞ178 million yen (457.2%)
First Quarter of the Fiscal Year Ended March 31, 2019: 49 million yen (ᇞ92.0%)
Net profit per share

ᇞ70.8

858

44.2

Fully diluted net profit per share(Yen, Sen)

(Yen, Sen)

6.91

6.89

23.80

23.58

First Quarter of the Fiscal YearEnding March 31, 2020
First Quarter of the Fiscal Year
Ended March 31, 2019

250(2) Consolidated Financial Conditions
Total assets(million yen)

Net assets(million yen)

Net worth ratio

First Quarter of the Fiscal YearEnding March 31, 2020
72,76252,229Fiscal Year Ended March 31, 201973,09653,462(Reference) Net worth: First Quarter of the Fiscal Year Ending March 31, 2020: 49,461 million yen
Fiscal Year Ended March 31, 2019: 50,626 million yen

2.

%

Net asset per share(Yen, Sen)

68.0
68.3

1,364.60
1,347.12

Status of Dividend
End of 1st quarter(Yen, Sen)-----

End of 2nd quarter(Yen, Sen)
0.00

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

Fiscal Year Ended March 31, 2019
Fiscal Year Ending March 31, 2020
Fiscal Year Ending March 31, 2020----(Forecast)(Note)
Existence of adjustment from the most recently announced dividend forecast: None

End of year
(Yen, Sen)
30.00
---

Annual(Yen, Sen)
30.00
---

Dividend for the fiscal year ending March 31, 2020 has yet to be determined.

3.

Expected Consolidated Results for Fiscal Year Ending March 31, 2020
(From April 1, 2019 to March 31, 2020)(% indication shows the increase or decrease rate from the previous year for full-year
and from the same quarter of previous year for each quarter)
Sales(million yen)

Operating profit%(million yen)

Net profit
attributable to ownersof the parent

Ordinary profit%(million yen)%(million yen)

Second Quarter(Cumulative)
22,650ᇞ0.3
1,400 ᇞ19.2
1,950 ᇞ24.7
Full Year
45,600
1.9
3,050
ᇞ2.2
4,100
ᇞ4.6
(Note)
Existence of adjustment from the most recently announced forecast of business results: None

1,250
2,750

Net profit per share%(Yen, Sen)

ᇞ29.6
ᇞ3.9

34.49
75.87

* 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(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.: Yes
2) Changes in accounting policy other than 1) above: None
3) Changes in accounting estimate: None
4) Restatement: None
(4) Number of outstanding shares (common stocks)
1) Number of outstanding shares at
1Q of Fiscal Yearthe end of year (including treasury Ending March 31,
2020:
stocks):1Q of Fiscal Year
2) Number of treasury stocks at theEnding March 31,
end of year:
2020:3) Average number of shares during
the year (cumulative quarter)

1Q of Fiscal YearEnding March 31,
2020:

36,254,024 sharesFiscal Year Ended
March 31, 2019:

sharesFiscal Year Ended
March 31, 2019:36,225,276 shares

1Q of Fiscal Year
Ended March 31,
2019:

7,450

36,226,224 shares

7,378

shares36,058,809 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 First Quarter of the Fiscal Year Ending March 31, 2020

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 Consolidated Statement of Comprehensive Income
Quarterly Consolidated Profit and Loss Statement
Consolidated Cumulative First Quarter
Quarterly Consolidated Statement of Comprehensive Income
Consolidated Cumulative First Quarter(3) 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 Consolidated Quarterly Financial Statements)(Changes in Accounting Policy)(Segment Information, etc.)(Notes Related to Business Combination, etc.)

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Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the First Quarter of the Fiscal Year Ending March 31, 2020

1. Qualitative Information concerning Current Quarterly Closing Announcement(1) Explanation about Business Results
The Japanese economy in the current first quarter consolidated cumulative period continued along a
gradual recovery, however, future uncertainty continues to linger due to increasing concerns about adeceleration in the global economy as a result of the effects of US-China trade friction and a slowdown
in Chinese economic growth.
Under such circumstances, for the business results in the current first quarter cumulative period of theCompany Group (the Company, consolidated subsidiaries and companies to which the equity method isapplied), sales were ¥10,547 million (a decrease of 3.8% as compared with the same period in theprevious year). For profit and loss, operating profit was ¥502 million (a decrease of 40.3% as comparedwith the same period in the previous year) and ordinary profit was ¥594 million (a decrease of 51.9% ascompared with the same period in the previous year) and the quarterly net profit attributable to ownersof the parent was ¥250 million (a decrease of 70.8% as compared with the same period in the previousyear).
Business results of each segment were as follows.
(Electronic materials)
While sales of flexible printed circuit board materials increased, due to a decrease in sales of rigid
printed circuit board materials, etc., sales were ¥6,550 million, a decrease of ¥310 million as comparedwith the same period in the previous year (4.5% as compared with the same period in the previous year).
(Industrial application structural materials)
While sales of pressure vessels for water treatment decreased, due to an increase in sales of aircraftmaterials, etc., sales were ¥2,174 million, an increase of ¥1 million as compared with the same period in
the previous year (0.1% as compared with the same period in the previous year).
(Electric insulation materials)
Due to a decrease in sales of electric insulation materials for heavy electric machinery, sales were¥767 million, a decrease of ¥37 million as compared with the same period in the previous year (4.6% ascompared with the same period in the previous year).
(Display materials)
Due to a decrease in sales of optical-related materials, sales were ¥849 million, a decrease of ¥87
million as compared with the same period in the previous year (9.4% as compared with the same period
in the previous year).
(Other)Sales were ¥205 million, an increase of ¥19 million as compared with the same period in the previous
year.
(2) Explanation about Financial Conditions
Total assets at the end of the current consolidated first quarter were ¥72,762 million, a decrease of¥333 million as compared with the end of the previous consolidated fiscal year. This was mainly due toa decrease in investment securities of ¥517 million, etc. Liabilities were ¥20,532 million, an increase of¥898 million as compared with the end of the previous consolidated fiscal year. This was mainly due toan increase in reserve for bonuses of ¥410 million, etc. Net assets were ¥52,229 million, a decrease of¥1,232 million as compared with the end of the previous consolidated fiscal year. This was due to adecrease in valuation difference on other securities of ¥216 million and a decrease in foreign currencytranslation adjustments of ¥146 million respectively.

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Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the First Quarter of the Fiscal Year Ending March 31, 2020

(3) Explanation about Future Forecast Information, including Forecast of Consolidated Business Results
As for the forecast of consolidated (cumulative) business results for the second quarter and theconsolidated business results for the full-year of the fiscal year ending March 31, 2020, there is nochange in the business results forecast as announced on May 10, 2019.

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Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the First Quarter of the Fiscal Year Ending March 31, 2020

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Unit: thousand yen)Previous Consolidated
Fiscal Year(As of March 31, 2019)
AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable
Securities
Merchandise and finished goods
Work-in-progress
Raw materials and stores
Other
Allowance for doubtful accounts
Total Current Assets
Fixed Assets
Tangible fixed assets
Intangible fixed assets
Goodwill
Other
Total 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
First Quarter(As of June 30, 2019)

8,193,697
16,127,374
1,401,188
4,012,943
1,941,748
3,378,698
1,190,214
ᇞ668,052
35,577,813

7,597,291
15,865,631
1,514,206
4,118,840
1,962,292
3,738,091
1,185,240
ᇞ610,714
35,370,880

11,998,454

13,060,664

219,309
175,923395,233

204,688
170,277
374,965

23,142,852
2,125,569
ᇞ143,823
25,124,598
37,518,286
73,096,100

22,625,091
1,512,329
ᇞ181,335
23,956,084
37,391,715
72,762,596

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the First Quarter of the Fiscal Year Ending March 31, 2020
(Unit: thousand yen)Previous Consolidated
Fiscal Year(As of March 31, 2019)
Liabilities
Current Liabilities
Notes and accounts payable
Bonds to be redeemed within a year
Short-term borrowings
Current portion of long-term borrowings
Corporate income tax, etc., payable
Reserve for bonuses
Reserve for officers’ bonuses
Other
Total Current Liabilities
Fixed Liabilities
Bonds payable
Long-term borrowings
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 or 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-5-

Current Consolidated
First Quarter(As of June 30, 2019)

6,105,195
36,8005,394,122
779,820
300,788
510,407
3,957
3,041,830
16,172,921

6,258,037
36,8005,705,552
658,972
384,250
831,294
1,226
2,906,435
16,782,567

128,000
1,265,465
626,885
92,502
1,348,196
3,461,049
19,633,971

109,600
1,248,172
633,343
92,541
1,666,453
3,750,111
20,532,678

7,541,693
6,653,615
35,130,363
ᇞ4,76449,320,907

7,553,077
6,665,000
34,294,172
ᇞ4,82848,507,421

745,120443
707,571ᇞ147,916
1,305,219
144,419
2,691,582
53,462,129
73,096,100

528,127
4,848
561,495
ᇞ139,950
954,521
154,415
2,613,558
52,229,917
72,762,596

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the First Quarter of the Fiscal Year Ending March 31, 2020

(2) Quarterly Consolidated Profit and Loss Statement and Consolidated Statement of Comprehensive Income(Quarterly Consolidated Profit and Loss Statement)(Consolidated Cumulative First 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
Investment profit by equity method
Foreign currency exchange profit
Other
Total Non-operating Income
Non-operating Expenses
Interest expenses
Investment loss by equity method
Other
Total Non-operating Expenses
Ordinary Profit
Extraordinary Profits
Profit on sale of investment securities
Profit on reversal of new share subscription rights
Other
Total Extraordinary Profits
Extraordinary Losses
Loss on retirement of fixed assets
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 First Quarter(From April 1, 2018
to June 30, 2018)
10,961,088
8,915,670
2,045,418
1,202,889
842,528

Current Consolidated
Cumulative First Quarter(From April 1, 2019
to June 30, 2019)10,547,117
8,797,552
1,749,564
1,246,618
502,945

79,254
46,179118,455
199,729
83,611
527,230

76,80952,165----74,288
203,263

20,495--111,908
132,404
1,237,355

23,01857,22331,207
111,449594,760

65,010956
6,544
72,511

--615
--615

1,412
l,412
1,308,454
366,659
941,795
83,503
858,291

2,098
2,098
593,277
286,910306,366
55,992
250,373-6-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the First Quarter of the Fiscal Year Ending March 31, 2020

(Quarterly Consolidated Statement of Comprehensive Income)(Consolidated Cumulative First 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 First Quarter(From April 1, 2018
to June 30, 2018)
941,795

Current Consolidated
Cumulative First Quarter(From April 1, 2019
to June 30, 2019)306,366

ᇞ223,080
ᇞ10,595
ᇞ518,282
6,763

ᇞ217,012
4,404
ᇞ292,254
8,563

ᇞ146,665

11,584

ᇞ891,861
49,933

ᇞ484,714
ᇞ178,348

153,284

ᇞ100,324

ᇞ103,350

ᇞ78,023-7-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the First Quarter of the Fiscal Year Ending March 31, 2020

(3) 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)
No applicable matter.
(Application of Accounting Particular to Preparation of Consolidated Quarterly 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 first 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 IFRS No. 16 (Lease))
Subsidiaries of the Company Group to which IFRS applies have applied IFRS No. 16 “Lease” (publishedin January 2016) (hereinafter referred to as “IFRS No. 16”) from the current consolidated first quarter. In
application of IFRS No. 16, we adopted the method of recognizing the cumulative impact by application ofthese Standards as of the date of commencement of application, which is permitted as a transitional measure.
For lease as a lessee which was previously classified into operating lease by applying IAS No. 17, right-ofuse assets and lease liabilities are recognized as of the date of commencement of application.
Some assets, which were included in other amount of investments and other assets were transferred toright-of-use assets.
In connection with application of these Standards, in the Quarterly Consolidated Balance Sheet, tangible
fixed assets of ¥392,797 thousand, other amount of current liabilities of ¥31,842 thousand and fixed liabilitiesof ¥317,720 thousand increased respectively and other amount of investments and other assets of ¥43,746
thousand decreased.
Impact by the above change on profit and loss for the current consolidated cumulative first quarter is minor.

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Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the First Quarter of the Fiscal Year Ending March 31, 2020

(Segment Information, etc.)[Segment Information]
I Previous consolidated cumulative first quarter (From April 1, 2018 to June 30, 2018)
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 1)

Total

Total

Sales
Sales to external customers
Intersegment sales ortransfers
Total
Segment profit

6,860,712

2,172,576

804,959

---

---

---

6,860,712

2,172,576

641,059

397,135

936,945 10,775,193

185,895

10,961,088---

191,602

191,602804,959

936,945 10,775,193

377,498

11,152,691

131,692

50,54253,804

1,274,235---

1,220,430(Note) 1. The category “Other” means business segments which are not included in the reportablesegments and includes related goods sales, logistics related businesses and other businesses, etc.
2. Segment profit shows the amount after being reflected in the material review of the initial
allocation of the acquisition cost as a result of determination of provisional accounting treatment
set forth in “Notes (Notes Related to Business Combination, etc.).”2. Difference between the total amount of profit/loss of reportable segments and the amount shown in thequarterly consolidated profit and loss statement and major details for the difference (matters concerning
difference adjustment)(Unit: thousand yen)
ProfitAmountTotal of reportable segments

1,220,430

Profit in category “Other”

53,804

Elimination of intersegment transactions

ᇞ22,499

Amortization of goodwill

ᇞ14,620

Expenses of entire company (Note)ᇞ366,916

Adjustment of inventories

ᇞ27,669

Operating profit in quarterly consolidated profit and loss
statement

842,528(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.

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Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the First Quarter of the Fiscal Year Ending March 31, 2020

II Current consolidated cumulative first quarter (From April 1, 2019 to June 30, 2019)
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
Intersegment sales ortransfers
Total
Segment profit

6,550,661

2,174,259

767,942

---

---

---

6,550,661

2,174,259

448,049

284,175

849,133 10,341,996

205,120

10,547,117---

186,713

186,713

767,942

849,133 10,341,996

391,833

10,733,830

72,70648,52255,350908,803---

853,453(Note) The category “Other” means business segments which are not included in the reportable segments
and includes related goods sales, logistics related businesses and other businesses, etc.
2. Difference between the total amount of profit/loss of reportable segments and the amount shown in thequarterly consolidated profit and loss statement and major details for the difference (matters concerning
difference adjustment)(Unit: thousand yen)
ProfitAmountTotal of reportable segments

853,453

Profit in category “Other”

55,350Elimination of intersegment transactions

ᇞ17,681

Amortization of goodwill

ᇞ14,620

Expenses of entire company (Note)ᇞ355,585

Adjustment of inventories

ᇞ17,970

Operating profit in quarterly consolidated profit and loss
statement

502,945(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.
(Notes Related to Business Combination, etc.)(Material review of the initial allocation of the acquisition cost in the comparative information)
Although provisional accounting treatment was carried out for the previous consolidated first quarter
related to business combination with Satosen Co., Ltd. which was conducted on November 30, 2017,
determination was made in the previous consolidated third quarter.
In connection with the determination of provisional accounting treatment, in the comparative information
included in the quarterly consolidated financial statements for the current consolidated cumulative first quarter,
material review was reflected in the initial allocation of the acquisition cost, and the provisionally calculated
amount of goodwill of ¥355,527 thousand decreased by ¥63,115 thousand after determination of accounting
and it was ¥292,412 thousand. A decrease in goodwill was due to an increase in other amount of intangible
fixed assets of ¥95,039 thousand and in other amount of fixed liabilities of ¥31,923 thousand respectively.
As a result, the impact on the Quarterly Consolidated Profit and Loss Statement for the previous
consolidated cumulative first quarter is minor.

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