Closing Announcement of First Quarter of the Fiscal Year Ending March 31, 2019
[Japanese Standards] (Consolidated)
August 2, 2018
Name of Listed Company:
Code No.:
Representative:
Contact Person:

Arisawa Mfg. Co., Ltd.
5208
Representative Director and COO:
Operating Officer,
Corporate Planning Department:
Scheduled Date of Submitting Financial Report: August 10, 2018
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 ArisawaTakeshi Masuda

TEL: 025-524-7101

NoNo(Indicated by rounding off an amount less than 1 million yen)

1.

Consolidated Results in First Quarter of the Fiscal Year Ending March 31, 2019
(From April 1, 2018 to June 30, 2018)(% indication shows the increase or decrease rate from the previous year)(1) Consolidated Operating Results
Sales

Operating profit(million yen)First Quarter of the Fiscal YearEnding March 31, 2019
First Quarter of the Fiscal Year
Ended March 31, 2018
(Note)
Comprehensive income:%

Ordinary profit

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

%

842

34.6

1,237

52.6

857

44.0

9,140
6.2
625 183.1
810 323.9
First Quarter of the Fiscal Year Ending March 31, 2019: 48 million yen (Δ92.1%)
First Quarter of the Fiscal Year Ended March 31, 2018: 620 million yen (--- %)

595

610.2

10,961

19.9

Net profit per share

Fully diluted net profit per share(Yen, Sen)

(Yen, Sen)

23.77

23.54

16.67

16.57

First Quarter of the Fiscal YearEnding March 31, 2019
First Quarter of the Fiscal Year
Ended March 31, 2018(2) Status of Consolidated Cash Flow
Total assets(million yen)

Net assets(million yen)

Net worth ratio(million yen)First Quarter of the Fiscal YearEnding March 31, 201971,196
51,413Fiscal Year Ended March 31, 201872,29052,492(Reference) Net worth: First Quarter of the Fiscal Year Ending March 31, 2019: 48,669 million yen
Fiscal Year Ended March 31, 2018: 49,635 million yen

2.

Net asset per share(million yen)

68.4
68.7

1,347.05
1,378.12

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

End of 2nd quarter(Yen, Sen)
0.00

Annual dividendEnd of 3rd quarter(Yen, Sen)---

Fiscal Year Ended March 31, 2018
Fiscal Year Ending March 31, 2019
Fiscal Year Ending March 31, 2019--(Forecast)(Note)
Existence of adjustment of the dividend forecast most recently announced: None---

End of year
(Yen, Sen)
34.00
---

Annual(Yen, Sen)
34.00
---

Dividend for the fiscal year ending March 31, 2019 has yet to be determined.

3.

Expected Consolidated Results for Fiscal Year Ending March 31, 2019
(From April 1, 2018 to March 31, 2019)(% indication shows the increase or decrease rate from the previous year for full-year
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%

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

(Yen, Sen)

Second Quarter(Cumulative)
23,400
21.2
2,000
26.1
2,550
Full Year
47,700
16.6
4,250
17.2
5,450
(Note)
Existence of adjustment of the dividend forecast most recently announced: None

17.0
34.8

1,650
3,600

6.0
4.3

45.81
99.95

* Notes(1) Changes in material subsidiaries during the year (changes in specified subsidiaries accompanying changes inscope of consolidation): 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.: None
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,
2019:stocks):
1Q of Fiscal Year
2) Number of treasury stocks at theEnding March 31,
end of year:
2019:3) Average number of shares during
the year (cumulative quarter)

1Q of Fiscal YearEnding March 31,
2019:36,137,524 sharesFiscal Year Ended
March 31, 2018:

sharesFiscal Year Ended
March 31, 2018:36,058,809 shares

1Q of Fiscal Year
Ended March 31,
2018:

7,114

36,024,124 shares

7,084

shares35,711,753 shares* The quarterly closing announcement is not subject to quarterly review by a certified public accountant or an auditcorporation.
* 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, 2019

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 QuarterQuarterly 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)(Additional Information)(Segment Information, etc.)-1-222233556777777

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the First Quarter of the Fiscal Year Ending March 31, 2019

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 trend against the backdrop of a steady global economy. On the other hand, there areconcerns about US protectionist policies and monetary policy, etc., and uncertainties continue to linger.
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 ¥10,961 million (an increase of 19.9% as compared with the same period in theprevious year). For profit and loss, operating profit was ¥842 million (an increase of 34.6% as comparedwith the same period in the previous year) and ordinary profit was ¥1,237 million (an increase of 52.6%
as compared with the same period in the previous year) and the quarterly net profit attributable to ownersof the parent was ¥857 million (an increase of 44.0% as compared with the same period in the previousyear).
Business results of each segment were as follows.
(Electronic materials)
Due to the steady advancements in sales of flexible printed circuit board materials, etc., sales were
¥6,860 million, an increase of ¥957 million as compared with the same period in the previous year (16.2%
as compared with the same period in the previous year).
(Industrial application structural materials)
Due to the steady advancements in sales of pressure vessels for water treatment, etc., sales were ¥2,172
million, an increase of ¥520 million as compared with the same period in the previous year (31.5% ascompared with the same period in the previous year).
(Electric insulation materials)
Due to a slight increase in infrastructure-related sales, sales were ¥804 million, an increase of ¥17
million as compared with the same period in the previous year (2.2% as compared with the same period
in the previous year).
(Display materials)
Due to the steady advancements in sales of 3D-related materials, sales were ¥936 million, an increaseof ¥351 million as compared with the same period in the previous year (60.0% as compared with the same
period in the previous year).
(Other)Sales were ¥185 million, a decrease of ¥25 million as compared with the same period in the previousyear.
(2) Explanation about Financial Conditions
Total assets at the end of the current consolidated fiscal period were ¥71,196 million, a decrease of
1,094 million as compared with the end of the previous consolidated fiscal year. This was mainly due toa decrease in cash and deposits of ¥1,414 million. Liabilities were ¥19,783 million, a decrease of ¥15
million as compared with the end of the previous consolidated fiscal year. This was mainly due to adecrease in short-term borrowings of ¥410 million. Net assets were ¥51,413 million, a decrease of ¥1,078
million as compared with the end of the previous consolidated fiscal year. This was due to a decrease inforeign currency translation adjustments of ¥479 million and a decrease in valuation difference on othersecurities of ¥223 million respectively.
(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, 2019, there is no change
in the business results forecast as announced on May 9, 2018.

-2-Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the First Quarter of the Fiscal Year Ending March 31, 2019

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Unit: thousand yen)Previous Consolidated
Fiscal Year(As of March 31, 2018)
AssetsCurrent Assets
Cash and deposits
Notes and accounts receivableSecurities
Merchandise and finished goodsWork-in-progress
Raw materials and stores
Other
Allowance for doubtful accounts
Total Current Assets
Fixed Assets
Tangible fixed assets
Intangible fixed assets
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-3-Current Consolidated
First Quarter(As of June 30, 2018)

9,123,877
15,947,189
1,180,101
3,915,375
1,898,096
2,951,263
1,328,865
Δ562,185
35,782,583

7,709,848
16,071,038
1,070,794
4,063,3621,831,006
3,391,973
1,258,313
Δ621,297
34,775,040

11,635,655

11,711,398

418,631418,631408,659
408,659

23,365,824
1,264,902
Δ176,835
24,453,891
36,508,177
72,290,761

23,204,115
1,279,868
Δ182,370
24,301,613
36,421,671
71,196,711

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the First Quarter of the Fiscal Year Ending March 31, 2019
(Unit: thousand yen)Previous Consolidated
Fiscal Year(As of March 31, 2018)
Liabilities
Current Liabilities
Notes and accounts payable
Bonds to be redeemed within a yearShort-term borrowings
Current portion of long-term borrowings
Corporate income tax, etc., payable
Reserve for bonuses
Reserve for officers’ bonuses
Provision for product warranties
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-4-

Current Consolidated
First Quarter(As of June 30, 2018)

6,794,393
36,8004,242,472
864,130
930,529598,261
5,956
125
2,509,831
15,982,499

6,966,519
36,8003,831,539
857,136
433,093
909,4841,446
432,637,811
15,673,875

164,800
1,642,485
603,556
92,837
1,312,028
3,815,706
19,798,206

146,400
1,921,144
610,867
91,188
1,339,587
4,109,188
19,783,064

7,458,242
6,570,209
33,492,381
Δ4,46747,516,364

7,511,317
6,623,243
33,124,909
Δ4,50647,254,964

1,214,473--1,081,810
Δ176,694
2,119,588
127,640
2,728,960
52,492,554
72,290,761

991,364
Δ10,595
601,992
Δ168,180
1,414,581
118,491
2,625,610
51,413,647
71,196,711

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the First Quarter of the Fiscal Year Ending March 31, 2019(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
OtherTotal Non-operating Income
Non-operating Expenses
Interest expenses
Profit/loss on redemption of investment securities
Foreign currency exchange loss
Transfer to allowance for doubtful accounts
OtherTotal Non-operating Expenses
Ordinary ProfitExtraordinary Profits
Profit on sale of investment securities
OtherTotal Extraordinary Profits
Extraordinary Losses
Loss on retirement of fixed assets
Valuation loss on investment securities
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 First Quarter(From April 1, 2017
to June 30, 2017)
9,140,478
7,449,200
1,691,277
1,065,640
625,637

Current Consolidated
Cumulative First Quarter(From April 1, 2018to June 30, 2018)
10,961,088
8,915,670
2,045,418
1,203,075
842,342

91,86643,872
97,103--99,014
331,856

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

14,792300
103,055--28,402
146,550
810,943

20,49530,596--57,755
23,557
132,404
1,237,169

49,876
9,462
59,33865,0107,501
72,511

2,226
63,59538
65,859804,422
181,519
622,903
27,622595,2811,412----1,412
1,308,268
367,657
940,61183,503
857,108-5-Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the First Quarter of the Fiscal Year Ending March 31, 2019

(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 ofthe parent
Comprehensive income attributable to noncontrolling interestsPrevious Consolidated
Cumulative First Quarter(From April 1, 2017
to June 30, 2017)
622,903

Current Consolidated
Cumulative First Quarter(From April 1, 2018
to June 30, 2018)
940,611

157,080
Δ4,607
Δ73,387
2,412

Δ223,080
Δ10,595
Δ518,282
6,763

Δ83,664

Δ146,665

Δ2,165
620,737

Δ891,861
48,750612,006

152,100

8,731

Δ103,350-6-Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the First Quarter of the Fiscal Year Ending March 31, 2019(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 arecalculated by multiplying the quarterly net profit before taxes by the estimated effective tax rate.
(Additional Information)(Application of “Partial Amendment of the ‘Accounting Standards for Tax Effect Accounting,’” etc.)“Partial Amendment of the ‘Accounting Standards for Tax Effect Accounting’” (Accounting Standards for
Business Enterprises No.28, February 16, 2018), etc., has been applied from the beginning of the current firstquarter consolidated fiscal period. Accordingly, deferred tax assets are indicated in the category of investments
and other assets and deferred tax liabilities are indicated in the category of fixed liabilities.
(Segment Information, etc.)[Segment Information]
I Previous consolidated cumulative first quarter (From April 1, 2017 to June 30, 2017)
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
TotalSegment profit or loss ()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

592,645

252,095

136,183

95,764

885,160

64,543

949,703

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 financial statements and major details for the difference (matters concerning
difference adjustment)
ProfitAmountTotal of reportable segments885,160

Profit in category “Other”

64,543Elimination of intersegment transactions

18,489

Expenses of entire company (Note)284,024

Adjustment of inventories

21,553

Operating profit in quarterly consolidated financialstatements

625,637

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.
-7-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the First Quarter of the Fiscal Year Ending March 31, 2019II Current 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)

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

644,029

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

1,277,205---

1,223,400

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 financial statements and major details for the difference (matters concerning
difference adjustment)
ProfitAmountTotal of reportable segments

1,223,400

Profit in category “Other”

53,804

Elimination of intersegment transactions

22,499

Amortization of goodwill

17,776

Expenses of entire company (Note)366,916

Adjustment of inventories

27,669

Operating profit in quarterly consolidated financial
statements

842,342

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.

-8-