Closing Announcement of Third Quarter of the Fiscal Year Ending March 31, 2021
[Japanese Standards] (Consolidated)
January 28, 2021
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 12, 2021
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, 2021
(From April 1, 2020 to December 31, 2020)(1) Consolidated Operating Results (Cumulative)(% 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)
%

Sales

Operating profit(million yen)
Third Quarter of the Fiscal YearEnding March 31, 2021
Third Quarter of the Fiscal Year
Ended March 31, 2020

(Note)%

Ordinary profit

34,606

0.8

2,223

7.0

2,290

3.1

1,380

---

34,327

△1.1

2,077

△21.6

2,221

△39.0

△118

---

Comprehensive income: Third Quarter of the Fiscal Year Ending March 31, 2021: 2,146 million yen (--- %)Third Quarter of the Fiscal Year Ended March 31, 2020: △22 million yen (--- %)Net profit per share

Fully diluted net profit per share(Yen, Sen)

(Yen, Sen)

41.50

41.43

Third Quarter of the Fiscal YearEnding March 31, 2021
Third Quarter of the Fiscal Year
Ended March 31, 2020

△3.38

---

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

Net assets(million yen)

69,55371,70950,06349,018

Third Quarter of the Fiscal YearEnding March 31, 2021
Fiscal Year Ended March 31, 2020

Net worth ratio%

Net asset per share(Yen, Sen)

67.8
64.3

1,415.87
1,387.76(Reference) Net worth: Third Quarter of the Fiscal Year Ending March 31, 2021: 47,137 million yen
Fiscal Year Ended March 31, 2020: 46,137 million yen

2.

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

Fiscal Year Ended March 31, 2020
Fiscal Year Ending March 31, 2021
Fiscal Year Ending March 31, 2021
(Forecast)(Note)

3.

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

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

End of year
(Yen, Sen)
30.00

Annual(Yen, Sen)
30.00

34.00

34.00

Existence of adjustment from the most recently announced dividend forecast: None

Expected Consolidated Results for Fiscal Year Ending March 31, 2021
(From April 1, 2020 to March 31, 2021)(% indication shows the increase or decrease rate from the previous period)
Sales
Full Year

(Note)

Operating profit

Net profit
attributable to ownersof the parent

Ordinary profit

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

(Yen, Sen)

45,800

△0.4

2,600

△5.9

2,800

0.6

1,600

651.9

48.06

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

For details, please refer to “1. Qualitative Information concerning Current Quarterly Closing Announcement (3) Explanation about Future Forecast
Information, including Forecast of Consolidated Business Results” on page 3 of the attached materials.

* 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.: None
2) Changes in accounting policy other than 1) above:None3) Changes in accounting estimate:None4) Restatement:
None(4) Number of outstanding shares (common stock)1) Number of outstanding shares at
3Q of Fiscal Yearthe end of year (including treasury Ending March 31,
2021:
stock):
3Q of Fiscal Year
2) Number of treasury stock at the end Ending March 31,
of year:
2021:
3) Average number of shares during
3Q of Fiscal YearEnding March 31,
the year (quarterly cumulative
2021:
period):34,428,424 sharesFiscal Year Ended
March 31, 2020:

36,381,524 shares

1,136,053

Fiscal Year Ended
March 31, 2020:

3,135,830

shares33,258,817 shares

3Q of Fiscal Year
Ended March 31,
2020:

shares35,159,633 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, 2021

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 on Going Concern Assumption)(Explanatory Note in Case of Significant Changes in the Amount of Shareholders’ Equity)(Application of Accounting Particular to Preparationof Quarterly Consolidated Financial Statements)(Additional Information)(Segment Information, etc.)

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3
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4
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6
6
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Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third Quarter of the Fiscal Year Ending March 31, 2021

1. Qualitative Information concerning Current Quarterly Closing Announcement(1) Explanation about Business Results
The Japanese economy in the current consolidated cumulative third quarter suffered from very severe
conditions due to economic stagnation as a result of the novel coronavirus (COVID-19). In addition, theoutlook remains uncertain due to concerns that the impact on the economy will be prolonged and theuncertainty surrounding the prospects of containing the COVID-19 pandemic.
Under such circumstances, for the business results in the current cumulative third quarter of theCompany Group (the Company, consolidated subsidiaries and companies to which the equity method isapplied), sales were ¥34,606 million (an increase of 0.8% as compared with the same period in theprevious year). For profit and loss, operating profit was ¥2,223 million (an increase of 7.0% as comparedwith the same period in the previous year) and ordinary profit was ¥2,290 million (an increase of 3.1% ascompared with the same period in the previous year) and the quarterly net profit attributable to owners of
the parent was ¥1,380 million (quarterly net loss attributable to owners of the parent of ¥118 million in
the same period in the previous year).
Business results of each segment were as follows.
(Electronic materials)
Due to steady progress in sales of flexible printed circuit board materials, sales were ¥23,752 million,
an increase of ¥1,274 million as compared with the same period in the previous year (5.7% as comparedwith the same period in the previous year). Segment profit was ¥2,197 million, an increase of ¥262 million
as compared with the same period in the previous year (13.6% as compared with the same period in theprevious year) due to an increase in sales.
(Industrial application structural materials)
Although sales of aircraft materials decreased, due to launch of sales of automotive materials, sales
were ¥6,451 million, a decrease of ¥6 million as compared with the same period in the previous year(▲0.1% as compared with the same period in the previous year). Segment profit was ¥639 million, adecrease of ¥323 million as compared with the same period in the previous year (▲33.6% as comparedwith the same period in the previous year) due to a decrease in sales of aircraft materials, etc.
(Electric insulation materials)
Due to a decrease in sales of insulation materials for heavy electric machinery, sales were ¥1,732
million, a decrease of ¥537 million as compared with the same period in the previous year (▲23.7% ascompared with the same period in the previous year). Segment profit was ¥121 million, a decrease of¥126 million as compared with the same period in the previous year (▲51.1% as compared with the same
period in the previous year) due to a decrease in sales.
(Display materials)
Due to a decrease in sales of devices utilizing polarization by ColorLink Japan, Ltd., sales were ¥2,042
million, a decrease of ¥530 million as compared with the same period in the previous year (▲20.6% ascompared with the same period in the previous year). Segment profit was ¥123 million, a decrease of ¥27
million as compared with the same period in the previous year (▲18.3% as compared with the same
period in the previous year) due to a decrease in sales.
(Other)Sales were ¥627 million, an increase of ¥78 million as compared with the same period in the previous
year (14.3% as compared with the same period in the previous year). Segment profit was ¥174 million,
an increase of ¥28 million as compared with the same period in the previous year (19.3% as comparedwith the same period in the previous year).

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Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third Quarter of the Fiscal Year Ending March 31, 2021

(2) Explanation about Financial Conditions
Total assets at the end of the current consolidated third quarter were ¥69,553 million, a decrease of¥2,156 million as compared with the end of the previous consolidated fiscal year. This was mainly due toa decrease in investment securities of ¥4,034 million. Liabilities were ¥19,489 million, a decrease of ¥321
million as compared with the end of the previous consolidated fiscal year. This was mainly due to adecrease in corporate income tax, etc., payable of ¥3,238 million. Net assets were ¥50,063 million, an
increase of ¥1,047 million as compared with the end of the previous consolidated fiscal year. This was
mainly due to an increase in valuation difference on other securities of ¥611 million, etc.
(3) Explanation about Future Forecast Information, including Forecast of Consolidated Business Results
As for the forecast of business results for the full-year of the fiscal year ending March 31, 2021, which
was announced on October 29, 2020, although uncertainty regarding the containment of the COVID-19
pandemic will continue through the fourth quarter, based on the business results in the current cumulative
third quarter, we expect operating profit, ordinary profit and net profit attributable to owners of the parent
will exceed those of the previously announced forecast.
Adjustment of forecasted figures of consolidated business results for the full-year of the fiscal year ending
March 31, 2021
(From April 1, 2020 to March 31, 2021)
Net profit
Operating OrdinarySales
attributable to Net profit
profitprofitowners of the per share(million(million(millionparent
yen)
(yen)
yen)
yen)
(million yen)Previously announced forecast (A)45,300

2,400

2,600

1,500

45.09

This forecast adjustment (B)45,800

2,600

2,800

1,600

48.06

Increase or decrease (B-A)

500

200

200

100

Increase or decrease ratio (%)

1.1

8.3

7.7

6.7

45,970

2,762

2,783

212

(Reference) Results of the previous year
(Fiscal Year Ended March 31, 2020)

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6.14

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third Quarter of the Fiscal Year Ending March 31, 2021

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Unit: thousand yen)Previous Consolidated
Fiscal Year(As of March 31, 2020)
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
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total Fixed Assets
Total Assets-4-

Current Consolidated
Third Quarter(As of December 31, 2020)

14,714,069
17,697,085
1,558,445
3,083,432
2,017,729
3,177,428
1,059,764△585,049
42,722,906

16,041,174
17,262,247
945,933
3,351,412
2,215,073
3,274,045
1,916,964△146,462
44,860,388

12,925,137
225,017

13,232,961
229,919

14,207,192
1,766,893△137,662
15,836,423
28,986,578
71,709,484

10,172,811
1,206,530△149,390
11,229,951
24,692,832
69,553,221

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third Quarter of the Fiscal Year Ending March 31, 2021
(Unit: thousand yen)Previous Consolidated
Fiscal Year(As of March 31, 2020)
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
Stock acquisition rights
Non-controlling interest
Total Net Assets
Total Liabilities and Net Assets-5-

Current Consolidated
Third Quarter(As of December 31, 2020)

6,916,079
36,8004,866,202
187,669
3,428,200
570,517
4,793
2,415,558
18,425,820

6,743,172
36,8004,685,748
182,724
189,231
261,540
3,375
2,956,874
15,059,466

91,2002,567,816
738,606
92,310775,563
4,265,495
22,691,316

54,4002,828,791
709,787
91,498745,7544,430,232
19,489,698

7,594,026
6,706,017
34,256,590△3,204,797
45,351,837

7,609,595
6,721,586
32,593,755△1,159,226
45,765,711

448,970△1,311
478,798△141,260
785,197
166,148
2,714,984
49,018,167
71,709,484

1,060,667
1,553
396,425△86,553
1,372,093
181,736
2,743,982
50,063,523
69,553,221

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third Quarter of the Fiscal Year Ending March 31, 2021

(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
Subsidy income
Other
Total Non-operating Income
Non-operating Expenses
Interest expenses
Foreign currency exchange loss
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
Loss on sale of 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 or net loss
attributable to owners of the parent (△)

Previous 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

Current Consolidated
Cumulative Third Quarter(From April 1, 2020
to December 31, 2020)
34,606,706
28,818,193
5,788,512
3,564,820
2,223,692

239,325
100,368
12,499210,010562,204

218,168
87,694
119,592
134,189
559,645

71,12993,450253,589
418,168
2,221,909

82,095
192,813
218,076492,985
2,290,351

262
1,271,030
14,244
1,285,537

515
320,704
26,628347,848448,357
175,447
2,894
28,859655,558
2,851,888
2,796,074
55,813
174,506----313,624
12,018
325,642
2,312,556
655,999
1,656,557
276,254△118,692

1,380,302-6-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third Quarter of the Fiscal Year Ending March 31, 2021

(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, 2019
to December 31, 2019)55,813Current Consolidated
Cumulative Third Quarter(From April 1, 2020
to December 31, 2020)
1,656,557

236,177△443△227,935
25,690611,662
2,865△179,795
54,707△111,385

139△77,897△22,083

489,579
2,146,137△134,097

1,967,198

112,014

178,938-7-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third Quarter of the Fiscal Year Ending March 31, 2021

(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
No applicable matter.
(Explanatory Note in Case of Significant Changes in the Amount of Shareholders’ Equity)
The Company cancelled treasury stock of ¥2,000,000 shares as of November 30, 2020 based on the
resolution of the Board of Directors’ meeting held on October 29, 2020. As a result, earned surplus and treasury
stock decreased by ¥2,045,767 thousand, respectively, in the current cumulative third quarter, and earned surplus
was ¥32,593,755 thousand and treasury stock was ¥1,159,226 thousand at the end of the current third quarter.
(Application of Accounting Particular to Preparation of Quarterly Consolidated Financial Statements)(Calculation of tax expenses)
For tax expenses, the effective tax rate is reasonably estimated after application of tax effect accounting fornet profit before taxes in the consolidated fiscal year including the current consolidated third quarter and these
are calculated by multiplying the quarterly net profit before taxes by the estimated effective tax rate.
(Additional Information)(Accounting Estimate)
As for assumptions regarding the impact from COVID-19, which were stated in the Additional Informationof Financial Report for the previous consolidated fiscal year, we based our assumptions by setting a range
including the case where infections will be contained at an early stage (end of September 2020). Based on thestatus of infections thereafter, however, we changed part of our assumptions as the impact will continue at least
during the current consolidated fiscal year. In this regard, there are no material changes in the accounting
estimates for the current consolidated cumulative third quarter due to the change above.

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Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third Quarter of the Fiscal Year Ending March 31, 2021

(Segment Information, etc.)[Segment Information]
I. Previous 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 previous
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 previous consolidated cumulative third quarter.

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Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the Third Quarter of the Fiscal Year Ending March 31, 2021

II Current consolidated cumulative third quarter (From April 1, 2020 to December 31, 2020)
1. Information about the amount of sales and profit/loss by reportable segment(Unit: thousand yen)

Electronicmaterials

Reportable segment
Industrial
Electric
application
Display
insulation
structural
materials
materials
materials

Other(Note)

Total

Total

Sales
Sales to external customers
Intersegment sales ortransfers
Total
Segment profit

23,752,728

6,451,804

1,732,151

---

---

---

23,752,728

6,451,804

1,732,151

2,197,614

639,393

121,2932,042,551 33,979,235

627,470

34,606,706---

619,086

619,086

2,042,551 33,979,235

1,246,556

35,225,792

174,727

3,256,082---

123,054

3,081,355(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

3,081,355

Profit in category “Other”

174,727

Elimination of intersegment transactions

2,707

Expenses of entire company (Note)△1,016,334

Adjustment of inventories△18,763

Operating profit in quarterly consolidated profit and loss
statement

2,223,692(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.
(Important Events after Closing the Accounts)(Tender Offer for Shares of ThinFlex Corporation)
From December 8, 2020, the Company implemented a tender offer for the shares of ThinFlex Corporation,a consolidated subsidiary of the Company, under Taiwanese laws (hereinafter referred to as “Taiwanese Tender
Offer”). The subscription period for the Taiwanese Tender Offer ended on January 26, 2021, and the terms andconditions for the Taiwanese Tender Offer have been satisfied. We are proceeding with the acquisition procedure by
conducting the tender offer for the subscribed shares as planned.
In this regard, the impact from additional acquisition of the shares of the subsidiary on the consolidated businessresults for the fiscal year ending March 31, 2021 will be immaterial.

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