Closing Announcement of Third Quarter of the Fiscal Year Ending March 31, 2020
[Japanese Standards] (Consolidated)
February 6, 2020
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: February 14, 2020
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 Third Quarter of the Fiscal Year Ending March 31, 2020
(From April 1, 2019 to December 31, 2019)(1) Consolidated Operating Results(% indication shows the increase or decrease rate from the same period in the previous year)(million yen)%(million yen)%

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

2,077

△21.6

2,221

△39.0

△118

---

2,411

△9.2

Sales

Operating profit(million yen)
Third Quarter of the Fiscal YearEnding March 31, 2020
Third Quarter of the Fiscal Year
Ended March 31, 2019
(Note)
Comprehensive income:%△1.1

34,327

Ordinary profit

34,696
14.4
2,648
0.5
3,644
14.1
Third Quarter of the Fiscal Year Ending March 31, 2020: △22 million yen (--- %)Third Quarter of the Fiscal Year Ended March 31, 2019: 1,530 million yen (△67.5%)
Net profit per share

Fully diluted net profit per share(Yen, Sen)Third Quarter of the Fiscal YearEnding March 31, 2020
Third Quarter of the Fiscal Year
Ended March 31, 2019

(Yen, Sen)

△3.38

---

66.73

66.29

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

Net assets(million yen)

Net worth ratio

Third Quarter of the Fiscal YearEnding March 31, 2020
71,53749,091
Fiscal Year Ended March 31, 201973,09653,462(Reference) Net worth: Third Quarter of the Fiscal Year Ending March 31, 2020: 46,298 million yen
Fiscal Year Ended March 31, 2019: 50,626 million yen

2.

%

Net asset per share(Yen, Sen)

64.7
69.3

1,393.18
1,397.78

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

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

Annual dividends
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: Yes

End of year
(Yen, Sen)
30.00

Annual(Yen, Sen)
30.00

30.00

30.00

For details, please refer to the “Notice of Adjustment of the Full-year Dividend Forecast,” released as of this day (February 6, 2020).

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 period)
Sales(million yen)

Operating profit%(million yen)

Net profit
attributable to ownersof the parent

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

Net profit per share%

Full Year
45,7002.2
2,750 △11.8
2,800 △34.8
450 △84.3(Note)
Existence of adjustment from the most recently announced forecast of business results: Yes
For details, please refer to the “Notice of Adjustment of Forecast of Consolidated Business Results for the Full Year,” released as of this day(February 6, 2020).

(Yen, Sen)

13.54

* Notes(1) Changes in material subsidiaries during the current consolidated cumulative period (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:None3) Changes in accounting estimate:None4) Restatement:
None(4) Number of outstanding shares (common stocks)
1) Number of outstanding shares at
3Q of Fiscal Yearthe end of year (including treasury Ending March 31,
2020:
stocks):3Q 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)

3Q of Fiscal YearEnding March 31,
2020:

36,367,924 sharesFiscal Year Ended
March 31, 2019:

3,135,820

sharesFiscal Year Ended
March 31, 2019:35,159,633 shares

3Q of Fiscal Year
Ended March 31,
2019:36,226,224 shares

7,378

shares36,134,606 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 Third 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 Third Quarter
Quarterly Consolidated Statement of Comprehensive Income
Consolidated Cumulative Third 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)(Changes in the Scope of Consolidation or Scope of Application of the Equity Method)(Application of Accounting Particular to Preparationof Consolidated Quarterly Financial Statements)(Changes in Accounting Policy)(Segment Information, etc.)

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

1. Qualitative Information concerning Current Quarterly Closing Announcement(1) Explanation about Business Results
For the Japanese economy in the current consolidated cumulative third quarter, uncertainties continue
to linger due to the ongoing trade friction brought on by trade policy in the U.S., concerns over monetary
policy, and a slowdown in the Chinese economy, etc.
Under such circumstances, for the business results in the current third quarter cumulative period of theCompany Group (the Company, consolidated subsidiaries and companies to which the equity method isapplied), sales were 34,327 million (a decrease of 1.1% as compared with the same period in the previousyear). For profit and loss, operating profit was ¥2,077 million (a decrease of 21.6% as compared with thesame period in the previous year) and ordinary profit was ¥2,221 million (a decrease of 39.0% ascompared with the same period in the previous year) and the quarterly net loss attributable to owners of
the parent was ¥118 million (quarterly net profit attributable to owners of the parent of ¥2,411 million in
the same period in the previous year).
Quarterly net loss attributable to owners of the parent was due to recorded current third quarter tax
expenses for sale of the shares of Polatechno Co., Ltd., which was an affiliated company to which theequity method was applied, and in addition, due to recorded loss on impairment of ¥624 million as
extraordinary losses in the electronic materials and display materials segments.
In the electronic materials segment, as profitability lowered in connection with changes in the market
and business environment for the rigid printed circuit boards business, which are manufactured and soldby Satosen Co., Ltd., a consolidated subsidiary, future expected earnings were reviewed based on the mostrecent business plan, and as a result, loss was recorded due to the book value of fixed assets being reduced
to a recoverable value. Impairment of goodwill was also recorded.
In the display materials segment, as the formation of a market for new business, which was expectedin the field of devices utilizing polarization by ColorLink Japan, Ltd., a consolidated subsidiary, hasdeveloped more slowly than expected and profitability has lowered, future expected earnings werereviewed based on the most recent business plan, and as a result, loss was recorded due to the book valueof fixed assets being reduced to a recoverable value.
Business results of each segment were as follows.
(Electronic materials)
While steady progress has been made in sales of flexible printed circuit board materials, due to adecrease in sales of rigid printed circuit boards by Satosen Co., Ltd., etc., sales were ¥22,477 million, adecrease of ¥154 million as compared with the same period in the previous year (0.7% as compared withthe same period in the previous year). Operating profit was, due to a decrease in sales of rigid printed
circuit boards, ¥1,935 million, a decrease of ¥304 million as compared with the same period in theprevious year (13.6% as compared with the same period in the previous year).
(Industrial application structural materials)
While steady progress has been made in sales of aircraft materials, due to a decrease in sales of pressure
vessels for water treatment, etc., sales were ¥6,457 million, a slight increase of ¥166 million as comparedwith the same period in the previous year (2.7% as compared with the same period in the previous year).
Operating profit was, due to a decrease in sales of pressure vessels for water treatment, ¥962 million, adecrease of ¥77 million as compared with the same period in the previous year (7.5% as compared withthe same period in the previous year).
(Electric insulation materials)
Due to a decrease in infrastructure-related sales, sales were ¥2,269 million, a decrease of ¥137 million
as compared with the same period in the previous year (5.7% as compared with the same period in theprevious year). Operating profit was, due to a decrease in sales, ¥248 million, a decrease of ¥96 million-2-

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

as compared with the same period in the previous year (27.9% as compared with the same period in theprevious year).
(Display materials)
While steady progress has been made in sales of 3D-related materials, due to a decrease in sales ofdevices utilizing polarization by ColorLink Japan, Ltd., sales were ¥2,573 million, a decrease of ¥213
million as compared with the same period in the previous year (7.6% as compared with the same period
in the previous year). Operating profit was, as a result of offsetting the decrease in profit from devices
utilizing polarization by profit from 3D-related materials, ¥150 million, an increase of ¥57 million ascompared with the same period in the previous year (61.8% as compared with the same period in theprevious year).
(Other)Sales were ¥549 million, a decrease of ¥30 million as compared with the same period in the previous
year (5.3% as compared with the same period in the previous year). Operating profit was ¥146 million, adecrease of ¥5 million as compared with the same period in the previous year (3.3% as compared withthe same period in the previous year).
(2) Explanation about Financial Conditions
Total assets at the end of the current consolidated third quarter were ¥71,537 million, a decrease of¥1,559 million as compared with the end of the previous consolidated fiscal year. This was mainly due tothe transfer of the shares of Polatechno Co., Ltd., which was an affiliated company, and acquisition oftreasury stock, and cash and deposits increased by ¥5,897 million and investment securities decreased by¥8,047 million. Liabilities were ¥22,445 million, an increase of ¥2,811 million as compared with the endof the previous consolidated fiscal year. This was mainly due to an increase in corporate income tax, etc.,
payable of ¥3,016 million. Net assets were ¥49,091 million, a decrease of ¥4,370 million as comparedwith the end of the previous consolidated fiscal year. This was mainly due to acquisition of treasury stockof ¥3,200 million and a decrease in earned surplus of ¥1,205 million, etc.
(3) Explanation about Future Forecast Information, including Forecast of Consolidated Business Results
Forecast of business results for the full-year of the fiscal year ending March 31, 2020, which wasannounced on November 7, 2019, shall be adjusted as follows.
Adjustment of forecasted figures of consolidated business results for the full-year of the fiscal year ending
March 31, 2020
(From April 1, 2019 to March 31, 2020)
Net profit
Operating Ordinary
attributable to Net profit
Sales
profitprofitowners of the per share(million(million(millionparent
yen)
(yen)
yen)
yen)
(million yen)Previously announced forecast (A)45,600

3,050

3,200

1,050

30.56

This forecast adjustment (B)45,700

2,750

2,800

450

13.54

Increase or decrease (B-A)

100

△300

△400

△600

Increase or decrease ratio (%)

0.2

△9.8

△12.5

△57.1

44,728

3,119

4,297

2,861

(Reference) Results of the previous
year(Fiscal Year Ended March 31, 2019)

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79.15

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

For consolidated business results for the full-year of the fiscal year ending March 31, 2020, we expect
that, while sales will progress about the same as the previous forecast, as profit of Satosen Co., Ltd., aconsolidated subsidiary, is deteriorating in the electronic materials segment, operating profit and ordinary
profit will be lower than the previous forecast. We also expect that net profit attributable to owners of theparent will be lower than the previous forecast due to a recorded loss on impairment of two consolidated
subsidiaries (Satosen Co., Ltd. and ColorLink Japan, Ltd.) in the current third quarter.
As the impact from the novel coronavirus on business results is uncertain at present, this has not been
included in this forecast of business results.
(Note) The above forecast of business results are based on information obtained by the Company andcertain assumptions determined to be reasonable, although actual results may vary significantly
depending on various factors in the future.

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Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third 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-5-

Current Consolidated
Third Quarter(As of December 31, 2019)

8,193,697
16,127,374
1,401,188
4,012,943
1,941,748
3,378,698
1,190,214△668,052
35,577,813

14,091,061
17,429,954
1,487,631
3,167,019
2,103,815
3,284,280
1,173,460△623,707
42,113,516

11,998,454

12,940,964

219,309
175,923395,233--204,538
204,538

23,142,852
2,125,569△143,823
25,124,598
37,518,286
73,096,100

15,095,000
1,198,456△15,446
16,278,010
29,423,512
71,537,028

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third 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
Short-term borrowings
Current portion of long-term borrowings
Bonds to be redeemed within a year
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-6-

Current Consolidated
Third Quarter(As of December 31, 2019)

6,105,195
5,394,122
779,820
36,800300,788
510,407
3,957
3,041,830
16,172,921

6,409,212
5,501,509
189,81436,8003,316,797
272,688
4,093
3,055,110
18,786,025

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

91,2001,962,785
644,434
91,858869,355
3,659,633
22,445,659

7,541,693
6,653,615
35,130,363△4,76449,320,907

7,588,111
6,700,102
33,925,105△3,204,787
45,008,532

745,120443
707,571△147,916
1,305,219
144,419
2,691,582
53,462,129
73,096,100

981,306--396,277△87,770
1,289,813
156,001
2,637,021
49,091,369
71,537,028

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third 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 Third 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
Other
Total Non-operating Income
Non-operating Expenses
Interest expenses
Foreign currency exchange loss
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
Other
Total Extraordinary Profits
Extraordinary Losses
Loss on impairment
Loss on impairment of goodwill
Compensation for damages
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 or net loss
attributable to owners of the parent (△)

Previous Consolidated
Cumulative Third Quarter(From April 1, 2018
to December 31, 2018)
34,696,479
28,307,028
6,389,450
3,740,685
2,648,765

Current Consolidated
Cumulative Third Quarter(From April 1, 2019
to December 31, 2019)34,327,306
28,415,924
5,911,381
3,833,508
2,077,873

247,878
97,087538,963399,547
1,283,475

239,325
100,368--222,510
562,204

62,692--85,712
139,597
288,001
3,644,240

71,12993,450--253,589
418,168
2,221,909

34,12565,01013,546112,681262
1,271,030
14,244
1,285,537----91,683
48,759140,4433,616,478
982,186
2,634,291
223,144448,357
175,447--31,753
655,558
2,851,888
2,796,074
55,813
174,506

2,411,146△118,692-7-

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

(Quarterly Consolidated Statement of Comprehensive Income)(Consolidated Cumulative Third 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 Third Quarter(From April 1, 2018
to December 31, 2018)
2,634,291

Current Consolidated
Cumulative Third Quarter(From April 1, 2019
to December 31, 2019)55,813△913,898
1,707△188,103
20,289236,177△443△227,935
25,690△24,089△111,385△1,104,094
1,530,197△77,897△22,083

1,374,383△134,097

155,813112,014-8-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third 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)
The Company acquired treasury stock of 3,128,300 shares by a resolution of the Board of Directors held asof August 27, 2019. As a result, treasury stock increased by ¥3,199,887 thousand in the current consolidated
cumulative third quarter, and treasury stock was ¥3,204,787 thousand at the end of the current consolidated
cumulative third quarter.
(Changes in the Scope of Consolidation or Scope of Application of the Equity Method)(Material Changes in the Scope of Application of the Equity Method)
As all the shares of Polatechno Co., Ltd. were sold in the current cumulative third quarter, the said company
was excluded from the scope of application of the equity method.
(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 third 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” (published in
January 2016) (hereinafter referred to as “IFRS No. 16”) from the consolidated first quarter. In application of
IFRS No. 16, we adopted the method of recognizing the cumulative impact by application of these Standards asof 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 to rightof-use assets.
In connection with application of these Standards, in the Quarterly Consolidated Balance Sheet, tangible
fixed assets of ¥363,384 thousand, other amount of current liabilities of ¥32,919 thousand and fixed liabilities of¥292,273 thousand increased respectively and other amount of investments and other assets of ¥39,675 thousand
decreased.
Impact by the above change on profit and loss for the current consolidated cumulative third quarter is minor.

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

(Segment Information, etc.)[Segment Information]
I. Previous consolidated cumulative third quarter (From April 1, 2018 to December 31, 2018)
1. Information about the amount of sales and profit/loss by reportable segment(Unit: thousand yen)

Electronicmaterials
Sales
Sales to externalcustomers
Intersegment sales ortransfers
Total
Segment profit

Reportable segment
Industrial
Electric
application
Display
insulation
structural
materials
materials
materials

Other(Note)

Total

Total

22,632,723

6,291,123

2,406,831

2,786,181

34,116,860

579,619

34,696,479

---

---

---

---

---

594,710594,710

22,632,723

6,291,123

2,406,831

2,786,181

34,116,860

1,174,330

35,291,190

2,240,316

1,040,188344,258

93,0683,717,831

151,577

3,869,408

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 in thequarterly consolidated profit and loss statement and major details for the difference (matters concerning
difference adjustment)(Unit: thousand yen)
ProfitAmountTotal of reportable segments

3,717,831

Profit in category “Other”

151,577

Elimination of intersegment transactions△81,160

Amortization of goodwill△43,861

Expenses of entire company (Note)△1,071,575

Adjustment of inventories△24,045

Operating profit in quarterly consolidated profit and loss
statement

2,648,765

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 Third Quarter of the Fiscal Year Ending March 31, 2020

II. Current consolidated cumulative third quarter (From April 1, 2019 to December 31, 2019)
1. Information about the amount of sales and profit/loss by reportable segment(Unit: thousand yen)

Electronicmaterials
Sales
Sales to externalcustomers
Intersegment sales ortransfers
Total
Segment profit

Reportable segment
Industrial
Electric
application
Display
insulation
structural
materials
materials
materials

Other(Note)

Total

Total

22,477,949

6,457,995

2,269,187

2,573,141

33,778,273

549,032

34,327,306

---

---

---

---

---

594,321594,321

22,477,949

6,457,995

2,269,187

2,573,141

33,778,273

1,143,353

34,921,627

1,935,317

962,654248,190

150,617

3,296,780

146,501

3,443,281

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 in thequarterly consolidated profit and loss statement and major details for the difference (matters concerning
difference adjustment)(Unit: thousand yen)
ProfitAmountTotal of reportable segments

3,296,780

Profit in category “Other”

146,501

Elimination of intersegment transactions△65,556

Amortization of goodwill△43,861

Expenses of entire company (Note)△1,227,826

Adjustment of inventories△28,163

Operating profit in quarterly consolidated profit and loss
statement

2,077,873

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(Material Loss on Impairment of Fixed Assets)
In the “Electronic Materials” segment, for the assets (including goodwill) in which investment
cannot be expected to be recovered due to a decrease in profitability, the book value was reduced to arecoverable value and the decrease was recorded in extraordinary losses as loss on impairment.
In the “Display Materials” segment, for assets for which profit and loss from operating activities
continues to be negative, the book value was reduced to the memorandum value and the decrease wasrecorded in extraordinary losses as loss on impairment.
In this regard, the recorded amount of loss on impairment was ¥539,702 thousand in the “Electronic
Materials” segment and ¥84,101 thousand in the “Display Materials” segment in the current consolidated
cumulative third quarter.
(Material Changes in the Amount of Goodwill)In the “Electronic Materials” segment, as loss on impairment of goodwill was recorded, the amountof goodwill decreased. In this regard, the decrease in goodwill due to the above event was ¥175,447
thousand in the current consolidated cumulative third quarter.

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