Consolidated Financial Results for the Three Months Ended June 30, 2017
[Japanese GAAP]
Date: August 3, 2017
Name of listed company:
Arisawa Mfg. Co., Ltd.
Listed on the Tokyo Stock Exchange (First Section)
Securities code:
5208(Website: http://www.arisawa.co.jp/)
Name and title of representative: Yuta Arisawa, President and Representative Director
Name and title of contact person: Takeshi Masuda, Operating Officer supervising Corporate Planning Dept.
Telephone: +81-25-524-7101
Scheduled date of filing Quarterly Report: August 10, 2017
Scheduled date of commencing dividend payments: --Preparation of supplementary briefing materials on the quarterly financial results:
No
Holding of a briefing session on the quarterly financial results:
No(Amounts of less than one million yen have been truncated.)

1.

Financial results for the consolidated cumulative first quarter of the fiscal year ending March 31, 2018
(From April 1, 2017 to June 30, 2017)(1) Consolidated results of operations(Percentage figures represent changes from the year-earlier quarter.)
Net sales(Millions of yen)Three months ended
June 30, 2017
Three months ended
June 30, 2016
(Note)
Comprehensive income:Operating income(%)(Millions of yen)

Ordinary income(%)(Millions of yen)

Profit attributable toowners of the parent(%)(Millions of yen)

(%)

9,140

6.2

625

183.1

810

323.9

624

683.2

8,607

Δ7.1

220

Δ66.1

191

Δ79.1

79

∆91.4

649 million yen (--- %) for the three months ended June 30, 2017
Δ1,424 million yen (--- %) for the three months ended June 30, 2016
Net income per share

Three months ended
June 30, 2017
Three months ended
June 30, 2016

Fully diluted net income per share

(Yen)

(Yen)

17.49

17.38

2.24

2.24

(2) Consolidated financial conditions
Total assets

Net assets(Millions of yen)

Net assets per share
(%)

(Yen)

49,27449,28272.5
73.3

1,307.52
1,311.41

June 30, 2017
64,488March 31, 2017
63,808(Reference) Shareholders’ equity: 46,769 million yen as of June 30, 2017
46,782 million yen as of March 31, 20172.

Equity ratio(Millions of yen)

Dividends
1st quarter end

Dividend per share
3rd quarter end

2nd quarter end(Yen)

Fiscal year end(Yen)

Annual

(Yen)

(Yen)

Fiscal year ended March 31, 2017--0.00--20.00
Fiscal year ending March 31, 2018--Fiscal year ending March 31, 2018------(Forecast)(Note)
Revision of the most recently announced dividend forecast: No
No decision or forecast has hitherto been made regarding the dividend(s) for the fiscal year ending March 31, 2018.

20.00

3.

(Yen)

---

Forecast of consolidated results of operations for the fiscal year ending March 31, 2018
(From April 1, 2017 to March 31, 2018)
Net sales(Percentage figures represent changes from the year-earlier quarter.)Ordinary income
Profit attributable to
Net income
owners of the parent
per share

Operating income(Millions of yen)(%)

(Millions of yen)(%)

(Millions of yen)(%)

(Millions of yen)

(%)

(Yen)

Six months
endingSeptember 30,
201718,600

9.5

1,350

150.5

1,800

161.0

1,300

143.5

36.34

Full fiscal year

37,900

10.0

2,650

48.0

3,550

32.0

2,650

27.9

74.09

(Note)

Revision of the most recently announced forecast of the consolidated results of operations: Yes
For details, please refer to “Notice of Adjustment of Forecast of Business Results” announced today (August 3, 2017).

*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries entailing changes in thescope of consolidation): None
New companies: --- (Company name:)
Excluded companies: --- (Company name:)(2) Application of accounting treatments particular to preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policies and accounting estimates, retrospective restatements
1) Changes in accounting policies due to revisions of accounting standards, etc.: None
2) Changes in accounting policies other than those falling under item 1): None
3) Changes in accounting estimates: None
4) Retrospective restatements: None
(4) Number of shares issued and outstanding (Common stock)1) Number of shares issued and outstanding as of the most recent quarter end and fiscal year end (including
treasury stock)June 30, 2017
35,776,224 shares
March 31, 2017
35,679,624 shares
2)

Number of shares of treasury stock as of the most recent quarter end and fiscal year end
June 30, 2017
6,624 shares
March 31, 2017
6,536 shares

3)

Average number of shares during the most recent consolidated cumulative first quarters
Three months ended June 30, 201735,711,753 shares
Three months ended June 30, 2016
35,605,651 shares*This summary is not subject to quarterly review procedures.
*Proper Use of Forward-looking Statements and Other Matters to be Noted
Earnings forecasts and other forward-looking statements contained in this summary are based on information currently
available to Arisawa Mfg. Co., Ltd. (hereinafter referred to as the “Company”) and certain assumptions that the Company
deems to be reasonable. The actual business results, etc. may therefore differ materially from these statements for various
reasons.

Table of Contents
1.

2.

Qualitative Information Concerning Quarterly Financial Results ··········································· 2(1) Explanation Concerning Consolidated Results of Operations············································ 2(2) Explanation Concerning Financial Conditions ····························································· 2(3) Explanation Concerning Forecast of Consolidated Results of Operations ····························· 3
Quarterly Consolidated Financial Statements ·································································· 4(1) Quarterly Consolidated Balance Sheets ····································································· 4(2) Quarterly Consolidated Statements of Income andQuarterly Consolidated Statements of Comprehensive Income ······································· 6[Quarterly Consolidated Statements of Income] ························································· 6[Quarterly Consolidated Statements of Comprehensive Income] ····································· 7(3) Notes Related to Going Concern Assumption ······························································ 8(4) Notes Related to Significant Changes in the Amount of Shareholders’ Equity ························ 8(5) Particular Accounting Treatments
Applied in Preparation of Quarterly Consolidated Financial Statements····························· 8(6) Segment Information, etc. ···················································································· 8-1-1. Qualitative Information Concerning Quarterly Financial Results(1) Explanation Concerning Consolidated Results of Operations
The Japanese economy in the current consolidated cumulative first quarter, against the backdrop of thegovernment’s economic stimulus measures on the monetary and fiscal fronts, etc., remained on an overall
recovery track. Meanwhile, a sense of uncertainty regarding the economic outlook persisted due largely to thegeneral misgivings about the apparent deceleration of growth in most major emerging economies.
Under such circumstances, our group (the Company, its consolidated subsidiaries and the companies
accounted for under the equity method) saw a year-on-year upturn in both net sales and operating income as aresult of the stagnant demand for electronic materials for use primarily in multifunctional mobile terminals andefforts to improve the profitability of industrial application structural materials.
Consequently, our group’s results of operations for the current consolidated cumulative first quarter showed
net sales of 9,140 million yen (representing a 6.2% increase as compared with the year-earlier quarter), an
operating income of 625 million yen (representing a 183.1% increase as compared with the year-earlier quarter),an ordinary income of 810 million yen (representing a 323.9% increase as compared with the year-earlier
quarter) and a profit attributable to owners of the parent of 624 million yen (representing a 683.2% increase ascompared with the year-earlier quarter).
(2) Explanation Concerning Financial Conditions
Total assets as of the end of the current consolidated first quarter were 64,488 million yen (an increase of
680 million yen compared with the end of the fiscal year ended March 31, 2017). This was due largely to anincrease of 638 million yen in notes and accounts receivable-trade.
Total liabilities as of the end of the current consolidated first quarter were 15,213 million yen (an increaseof 687 million yen compared with the end of the fiscal year ended March 31, 2017). This was due largely to anincrease of 643 million yen in notes and accounts payable-trade.
Total net assets as of the end of the current consolidated first quarter were 49,274 million yen (a decrease of
7 million yen compared with the end of the fiscal year ended March 31, 2017). This was due largely to anincrease of 156 million yen in valuation difference on available-for-sale securities and a decrease of 139 million
yen in foreign currency translation adjustment and 93 million yen in retained earnings.

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(3) Explanation Concerning Forecast of Consolidated Results of Operations
On the basis of the first quarter results, the forecast of the consolidated results of operations for the cumulative
second quarter and the full fiscal year ending March 31, 2018 has been revised as follows.
Revisions of forecast of consolidated results of operations for the cumulative second quarter of the fiscal year
ending March 31, 2018 (From April 1, 2017 to September 30, 2017)
Net sales(Millions ofyen)OperatingincomeOrdinary
income(Millions ofyen)(Millions ofyen)Profit attributableto owners of theparent(Millions of yen)

Net income per
share
(Yen)

Previously announced
forecast (A)18,300

1,000

1,400

950

26.63

Revised forecast (B)18,600

1,350

1,800

1,300

36.34

Difference(B-A)

Percentage change (%)(Reference) Results for thesix months ended
September 30, 2016

300

350

400

350

1.6

35.0

28.6

36.8

16,984

539

689

533

14.99

Revisions of forecast of consolidated results of operations for the full fiscal year ending March 31, 2018
(From April 1, 2017 to March 31, 2018)
Net sales(Millions ofyen)OperatingincomeOrdinary
income(Millions ofyen)(Millions ofyen)Profit attributableto owners of theparent(Millions of yen)

Net income per
share
(Yen)

Previously announced
forecast (A)37,600

2,300

3,150

2,300

64.47

Revised forecast (B)37,900

2,650

3,550

2,650

74.09

300

350

400

350

0.8

15.2

12.7

15.2

34,451

1,790

2,690

2,072

Difference(B-A)

Percentage change (%)(Reference) Results for thefull fiscal year ended March
31, 2017

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58.20

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Thousands of yen)Previous consolidated
fiscal year
(As of March 31, 2017)

Current consolidated
first quarter(As of June 30, 2017)

AssetsCurrent assets
Cash and deposits

7,667,985

7,064,389

Notes and accounts receivable-trade12,618,700

13,257,309

797,550

1,032,759

Merchandise and finished goods

2,602,353

2,741,193

Work in process

1,301,381

1,354,875

Raw materials and supplies

2,095,419

2,623,206

Securities

Other

1,331,705

1,310,271

Allowance for doubtful accounts△127,077△130,756

Total current assets

28,288,018

29,253,249

11,065,403

10,812,767

Other

65,48664,236

Total intangible assets

65,48664,23623,864,265

23,703,106

707,162

844,912

Allowance for doubtful accounts△181,927△189,719

Total investments and other assets

24,389,500

24,358,298

Total non-current assets

35,520,391

35,235,302

Total assets

63,808,409

64,488,551

Non-current assets
Property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Other

-4-

(Thousands of yen)
Current consolidated
first quarter(As of June 30, 2017)

Previous consolidated
fiscal year
(As of March 31, 2017)
Liabilities
Current liabilities
Notes and accounts payable-trade

5,168,250

5,811,315

Short-term loans payable

2,908,630

3,188,538

Current portion of long-term loans payable

446,754448,424

Income taxes payable

362,974

203,459

Provision for bonuses

447,415712,214

Provision for directors' bonuses

3,573

1,376

Provision for product warranties

169

168

Other

2,341,381

1,937,878

Total current liabilities

11,679,149

12,303,374

Long-term loans payable

1,836,093

1,829,763

Net defined benefit liability

558,112563,825

Asset retirement obligations

57,44856,413

Other395,551

460,180

2,847,205

2,910,183

14,526,354

15,213,557

Capital stock

7,317,019

7,348,934

Capital surplus

6,429,038

6,460,952

Retained earnings

31,471,074

31,377,774

Treasury stock△3,891△3,96645,213,240

45,183,695

942,763

1,099,743

5,153

546

Non-current liabilities

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

808,002668,508

Remeasurements of defined benefit plans△187,018△183,171

Total accumulated other comprehensive income

1,568,901

1,585,626

Subscription rights to shares

143,292

140,319

Non-controlling interests

2,356,620

2,365,352

Total net assets

49,282,055

49,274,994

63,808,409

64,488,551

Total liabilities and net assets-5-(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income[Quarterly Consolidated Statements of Income][Consolidated cumulative first quarter](Thousands of yen)
Current consolidated
cumulative first quarter(From April 1, 2017
to June 30, 2017)

Previous consolidated
cumulative first quarter(From April 1, 2016
to June 30, 2016)
Net sales

8,607,601

9,140,478

Cost of sales

7,353,170

7,449,200

Gross profit

1,254,431

1,691,277

Selling, general and administrative expenses

1,033,439

1,065,640

220,991

625,637

Interest income

78,074

91,866

Dividends income
Share of profit of entities accounted for using equity
methodReversal of allowance for doubtful accounts

40,82443,872

11,937

97,103

157,906

99,014

Other

288,743

331,856

Operating income
Non-operating income

Total non-operating income
Non-operating expenses

13,451

14,792

Interest expenses

273,054

103,055

Foreign exchange losses

31,90328,702Other318,409

146,550

Total non-operating expenses

191,325

810,9433

49,876

Gain on sales of investment securities

413

9,462

Other

416

59,338

Ordinary income
Extraordinary income

Total extraordinary income
Extraordinary losses－

63,595

Loss on valuation of investment securities

4,990

2,264

Other

4,990

65,859Total extraordinary losses

186,752

804,422

Income before income taxes

101,811

152,317

Income taxes

84,941

652,105

Profit5,207

27,622

Profit attributable to non-controlling interests

79,733

624,482

8,607,601

9,140,478

Profit attributable to owners of the parent-6-

[Quarterly Consolidated Statements of Comprehensive Income][Consolidated cumulative first quarter](Thousands of yen)
Current consolidated
cumulative first quarter(From April 1, 2017
to June 30, 2017)

Previous consolidated
cumulative first quarter(From April 1, 2016
to June 30, 2016)
Profit84,941

652,105△867,014

157,080－△4,607△457,710△73,387

2,321

2,412

△187,377△83,664△1,509,780△2,165Comprehensive income△1,424,839

649,939(Breakdown)Comprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests△1,181,257

641,208△243,582

8,731

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income-7-(3) Notes Related to Going Concern Assumption
No applicable matter.
(4) Notes Related to Significant Changes in the Amount of Shareholders’ Equity
No applicable matter.
(5) Particular Accounting Treatments Applied in Preparation of Quarterly Consolidated Financial Statements<Calculation of tax expenses>
Tax expenses are calculated by multiplying the quarterly income before income taxes by an estimatedeffective tax rate. Such effective tax rate is reasonably estimated after applying tax effect accounting to theincome before income taxes for the consolidated fiscal year including the current consolidated first quarter.
(6) Segment Information, etc.
[Segment Information]
I Previous consolidated cumulative first quarter (From April 1, 2016 to June 30, 2016)
1. Information on the amount of net sales and income or loss with respect to each reportable segment(Thousands of yen)
Other
Total
(See Note)

Reportable segment

Net sales
Net sales toexternalcustomers
Inter-segment
sales ortransfers
Total

Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

4,916,077

2,034,161

756,526

649,966

8,356,732

250,869

8,607,601

－

－

－

－

－

183,897

183,897

4,916,077
2,034,161
756,526
649,966
8,356,732
434,767
8,791,499
Segment income△16,267
306,635
90,241
115,335
495,946
54,052549,999
or loss ()Note: The column “Other” represents business operations that do not fall under any of the reportable segments and includes therelated goods sales, the logistics-related operations and other businesses, etc.

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

495,946

Income in the category “Other”

54,052Elimination of inter-segment transactions△16,990

Amortization of goodwill△29

Unallocated corporate expenses (See Note)△293,972

Adjustment of inventories△18,014
Operating income shown on the quarterly
220,991
consolidated statements of income
Note: Unallocated corporate expenses are mostly general and administrative
expenses that are not attributable to any of the reportable segments.

3. Information on impairment loss on non-current assets or goodwill, etc. with respect to each reportablesegment
No applicable matter.

-8-

II Current consolidated cumulative first quarter (From April 1, 2017 to June 30, 2017)
1. Information on the amount of net sales and income or loss with respect to each reportable segment(Thousands of yen)
Other
Total
(See Note)

Reportable segment

Net sales
Net sales toexternalcustomers
Inter-segment
sales ortransfers
Total

Electronicmaterials

Industrial
application
structural
materials

Electricalinsulating
materials

Displaymaterials

Subtotal

5,903,691

1,651,770

787,716585,721

8,928,899

211,578

9,140,478

－

－

－

－

－

192,343

192,3435,903,691
1,651,770
787,716585,721
8,928,899
403,921
9,332,821
Segment income△95,764592,645
252,095
136,183
885,160
64,543
949,703or loss ()Note: The column “Other” represents business operations that do not fall under any of the reportable segments and includes therelated goods sales, the logistics-related operations and other businesses, etc.

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

885,160

Income in the category “Other”

64,543Elimination of inter-segment transactions△18,489

Unallocated corporate expenses (See Note)△284,024

Adjustment of inventories△21,553
Operating income shown on the quarterly
625,637
consolidated statements of income
Note: Unallocated corporate expenses are mostly general and administrative
expenses that are not attributable to any of the reportable segments.

3. Matters concerning changes in reportable segments, etc.
The categorization, introduced in the current consolidated cumulative first quarter, of reportable segments waschanged due to the liquidation of a subsidiary so that the “Related goods sales”, which was categorized as a reportablesegment, is incorporated into the “Other”.
In this regard, the segment information for the previous consolidated cumulative first quarter is reported on the basisof the reportable segments reflecting the said change in categorization.

4. Information on impairment loss on non-current assets or goodwill, etc. with respect to each reportablesegment
No applicable matter.

-9-