Closing Announcement of First Quarter of the Fiscal Year Ending March 31, 2021
[Japanese Standards] (Consolidated)
July 30, 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: August 12, 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 First Quarter of the Fiscal Year Ending March 31, 2021
(From April 1, 2020 to June 30, 2020)(% indication shows the increase or decrease rate(1) Consolidated Operating Results (Cumulative)
from the previous year)
Sales

Operating profit(million yen)First Quarter of the Fiscal YearEnding March 31, 2021
First Quarter of the Fiscal Year
Ended March 31, 2020
(Note)
Comprehensive income:%

10,5970.5

10,547△3.8(million yen)

748

Ordinary profit%(million yen)

48.9

732

502 △40.3%

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

23.2

428

594 △51.9

71.2

250 △70.8

First Quarter of the Fiscal Year Ending March 31, 2021: 727 million yen (---%)First Quarter of the Fiscal Year Ended March 31, 2020: △178 million yen (---%)Net profit per share

Fully diluted net profit per share(Yen, Sen)

(Yen, Sen)

12.89

12.87

6.91

6.89

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

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

Net assets(million yen)

Net worth ratio

First Quarter of the Fiscal YearEnding March 31, 2021
69,083
48,766
Fiscal Year Ended March 31, 2020
71,70949,018(Reference) Net worth: First Quarter of the Fiscal Year Ending March 31, 2021: 45,971 million yen
Fiscal Year Ended March 31, 2020: 46,137 million yen

2.

Net asset per share(Yen, Sen)

66.5
64.3

1,382.47
1,387.76

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

End of 2nd quarter(Yen, Sen)
0.00

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

Fiscal Year Ended March 31, 2020
Fiscal Year Ending March 31, 2021
Fiscal Year Ending March 31, 2021
0.00--(Forecast)(Note)
Existence of adjustment from the most recently announced dividend forecast: None3.

%

End of year
(Yen, Sen)
30.00

Annual(Yen, Sen)
30.00

28.00
to 32.00

28.00
to 32.00

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 year for full-year
and from the same quarter of previous year for each quarter)
Sales(million yen)

Second Quarter(Cumulative)
Full Year

Operating profit%(million yen)

Ordinary profit%(million yen)%

Net profit
attributable to owners of
the parent

Net profit
per share(million yen)

(Yen, Sen)%--21,900
△3.1
1,200
△9.2
1,200
△16.7
650
19.55
42,300
△8.0
1,450
△47.5
1,650
△40.7
900
322.9
27.07
to 46,100
to 0.3
to 2,100
to △24.0
to 2,300
to △17.4
to 1,350
to 534.4
to 40.61(Note)
Existence of adjustment from the most recently announced forecast of business results: Yes
For details of adjustment of Forecast of Consolidated Business Results, please refer to the “Notice of Adjustment of Forecast of Business Results,”
released as of this day (July 30, 2020).

* Notes(1) Changes in material subsidiaries during the current consolidated cumulative quarter (changes in specified
subsidiaries accompanying changes in scope of consolidation): None
New: --- (Company Name:)
Exclusion: --- (Company Name:)(2) Application of accounting particular to preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policy, changes in accounting estimates and restatement
1) Changes in accounting policy in connection with the amendment of accounting standards, etc.:
2) Changes in accounting policy other than 1) above:3) Changes in accounting estimate:4) Restatement:(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,
2021:
stocks):1Q of Fiscal Year
2) Number of treasury stocks at theEnding March 31,
end of year:
2021:
3) Average number of shares during
the year (cumulative quarter)

1Q of Fiscal YearEnding March 31,
2021:

None
None
None
None

36,389,024 sharesFiscal Year Ended
March 31, 2020:

36,381,524 shares

3,135,889

sharesFiscal Year Ended
March 31, 2020:

3,135,830

33,247,643 shares

1Q of Fiscal Year
Ended March 31,
2020:

36,225,276 sharesshares* The quarterly closing announcement is not subject to quarterly review by a certified public accountant or an audit
corporation.
* Explanation about Appropriate Use of the Forecast of Business Results and other Matters to be Noted
Description regarding the future such as the forecast of business results stated in this material is based on information which theCompany has currently obtained and certain assumptions that the Company determines to be reasonable, although actual results may
significantly differ from the forecast depending on various factors.

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the First Quarter of the Fiscal Year Ending March 31, 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 First Quarter
Quarterly Consolidated Statement of Comprehensive Income
Consolidated Cumulative First Quarter(3) Notes to Quarterly Consolidated Financial Statements(Notes to Assumptions on a Going Concern)(Explanatory Note in Case of Significant Changes in the Amount of Shareholders’ Equity)(Application of Accounting Particular to Preparationof Quarterly Consolidated Financial Statements)(Additional Information)(Segment Information, etc.)

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Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the First 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 first quarter consolidated cumulative period has been significantly
affected by the economic stagnation due to the novel coronavirus pandemic. In addition, while we are notcertain about the prospects for convergence of the novel coronavirus infections, future uncertainty has
increased and there is concern that the impact on business results will be prolonged.
Under such circumstances, the effects of the novel coronavirus on the Company Group (the Company,
consolidated subsidiaries and companies to which the equity method is applied) were limited to somesegments and for the business results in the current first quarter cumulative period, sales were ¥10,597
million (an increase of 0.5% as compared with the same period in the previous year). For profit and loss,
operating profit was ¥748 million (an increase of 48.9% as compared with the same period in the previousyear), ordinary profit was ¥732 million (an increase of 23.2% as compared with the same period in theprevious year) and the quarterly net profit attributable to owners of the parent was ¥428 million (anincrease of 71.2% as compared with the same period in the previous year).
Business results of each segment were as follows.
(Electronic materials)
Due to an increase in sales of flexible printed circuit board materials, etc., sales were ¥6,890 million,
an increase of ¥339 million as compared with the same period in the previous year (5.2% as comparedwith the same period in the previous year). Segment profit was ¥768 million, an increase of ¥320 million
as compared with the same period in the previous year (71.5% as compared with the same period in theprevious year) due to an increase in sales and profit improvement of rigid printed circuit board materials
by Satosen Co., Ltd.
(Industrial application structural materials)
Due to an increase in sales of aircraft materials and automotive materials, etc., sales were ¥2,231 million,
an increase of ¥56 million as compared with the same period in the previous year (2.6% as compared withthe same period in the previous year). Segment profit was ¥229 million, a decrease of ¥54 million ascompared with the same period in the previous year (△19.1% as compared with the same period in theprevious year) due to an increase in development cost of automotive materials, etc.
(Electric insulation materials)
Due to a decrease in sales of electric insulation materials for heavy electric machinery, sales were ¥625
million, a decrease of ¥142 million as compared with the same period in the previous year (△18.5% ascompared with the same period in the previous year). Segment profit was ¥47 million, a decrease of ¥25
million as compared with the same period in the previous year (△34.9% 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 ¥575
million, a decrease of ¥273 million as compared with the same period in the previous year (△32.3% ascompared with the same period in the previous year). Segment profit was ¥2 million, a decrease of ¥45
million as compared with the same period in the previous year (△94.6% as compared with the same period
in the previous year) due to a decrease in sales.
(Other)Sales were ¥275 million, an increase of ¥70 million as compared with the same period in the previous
year.
(2) Explanation about Financial Conditions
Total assets at the end of the current consolidated first quarter were ¥69,083 million, a decrease of¥2,625 million as compared with the end of the previous consolidated fiscal year. This was mainly due toa decrease in cash and deposits of ¥3,511 million, etc. Liabilities were ¥20,317 million, a decrease of¥2,373 million as compared with the end of the previous consolidated fiscal year. This was mainly due to-2-

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

a decrease in corporate income tax, etc., payable of ¥3,073 million, etc. Net assets were ¥48,766 million,a decrease of ¥252 million as compared with the end of the previous consolidated fiscal year. This wasdue to a decrease in earned surplus of ¥568 million, etc.
(3) Explanation about Future Forecast Information, including Forecast of Consolidated Business Results
As for the forecast of business results in the second quarter cumulative period in the fiscal year ending
March 31, 2021, we expect results will exceed the previous forecast, as the effects of the novel coronavirus
pandemic on the business results of the Company will be limited to some segments.
In this regard, as for the forecast of the consolidated business results for the full-year, we expect theeffects of the novel coronavirus will extend to all segments of the Company, but it is difficult to predictwhether the spread of infections will end at some point in the not too distant future or continue indefinitely,
therefore, we have determined to maintain the previous forecast in which business results were shown
between a certain range.
Adjustment of forecasted figures of consolidated (cumulative) business results for the second quarter of the fiscal
year ending March 31, 2021
(From April 1, 2020 to September 30, 2020)
Net profit
attributable toowners of theparent(million yen)Sales(million yen)

Operatingprofit(million yen)

Ordinary
profit(million yen)

Net profit per
share
(yen)

Previously announced
forecast (A)21,600

850

900

450

13.54

This forecast adjustment (B)21,900

1,200

1,200

650

19.55

Increase or decrease (B-A)

300

350

300

200

Increase or decrease ratio (%)

1.4

41.2

33.3

44.4

(Reference) Results of the 2nd
quarter of the previous year
(Fiscal Year Ended March 31,
2020)

22,599

1,321

1,440

△894

---

(Note) The above forecast of business results are based on information obtained by the Company and certain
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 First 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
First Quarter(As of June 30, 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

11,202,507
16,710,480
1,982,068
3,928,932
2,172,348
3,130,386
647,544△133,476
39,640,791

12,925,137
225,017

13,192,400
213,967

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

14,884,885
1,306,017△154,19416,036,708
29,443,075
69,083,867

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the First 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
First Quarter(As of June 30, 2020)

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

6,916,793
36,8005,016,050
185,524
355,081
839,9201,125
2,501,658
15,852,953

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

72,8002,793,666
730,40992,170775,750
4,464,796
20,317,749

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

7,597,105
6,709,097
33,687,857△3,204,847
44,789,212

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

1,018,839
106
286,336△123,024
1,182,257
177,976
2,616,670
48,766,117
69,083,867

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of the First 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 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
Other
Total Non-operating Income
Non-operating Expenses
Interest expenses
Loss on redemption of investment securities
Foreign currency exchange loss
Other
Total Non-operating Expenses
Ordinary Profit
Extraordinary Profits
Profit on reversal of stock acquisition rights
Total Extraordinary Profits
Extraordinary Losses
Loss on retirement of fixed assets
Total Extraordinary Losses
Net profit before taxes, etc.
Corporate income tax, etc.
Net profit
Net profit attributable to non-controlling interests
Net profit attributable to owners of the parent

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

Current Consolidated
Cumulative First Quarter(From April 1, 2020
to June 30, 2020)
10,597,738
8,661,599
1,936,138
1,187,234
748,904

76,80952,16574,288203,263

75,622
44,182
43,416
163,222

23,018412
3,025
84,992
111,449594,760

29,157
38,69758,851
52,740179,447
732,678

615
615

1,399
1,399

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

4,138
4,138
729,939
251,184
478,755
50,118428,636-6-

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

(Quarterly Consolidated Statement of Comprehensive Income)(Consolidated Cumulative First Quarter)(Unit: thousand yen)

Net profit
Other comprehensive income
Valuation difference on other securities
Deferred hedge profit or loss
Foreign currency translation adjustments
Adjustment for retirement benefits
Share of other comprehensive income ofcompanies to which equity method is applied
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of
the parent
Comprehensive income attributable to noncontrolling interests

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

Current Consolidated
Cumulative First Quarter(From April 1, 2020
to June 30, 2020)
478,755△217,012
4,404△292,254
8,563

569,862
1,417△338,533
18,235

11,584△2,353△484,714△178,348

248,628
727,383△100,324

825,697△78,023△98,313-7-

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

(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 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 first quarter and these arecalculated by multiplying the quarterly net profit before taxes by the estimated effective tax rate.
(Additional Information)(Accounting Estimate)
There was no material change in the assumptions, including the timing of the convergence of the novel
coronavirus infections etc., and accounting estimates, which were stated in the (additional information) ofFinancial Report for the previous consolidated fiscal year.
(Segment Information, etc.)[Segment Information]
I Previous consolidated cumulative first quarter (From April 1, 2019 to June 30, 2019)
1. Information about the amount of sales and profit/loss by reportable segment(Unit: thousand yen)

Electronicmaterials

Reportable segment
Industrial
Electric
application
Display
insulation
structural
materials
materials
materials

Total

Other
(Note 1)

Total

Sales
Sales to external customers
Intersegment sales ortransfers
Total
Segment profit

6,550,661

2,174,259

767,942

849,133 10,341,996

205,120

10,547,117

---

---

---

---

186,713

186,7136,550,661

2,174,259

767,942

849,133 10,341,996

391,833

10,733,830

448,049

284,175

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

853,453(Note) 1. The category “Other” means business segments which are not included in the reportable segments
and includes related goods sales, logistics related businesses and other businesses, etc.
2. Difference between the total amount of profit/loss of reportable segments and the amount shown in thequarterly consolidated profit and loss statement and major details for the difference (matters concerning
difference adjustment)(Unit: thousand yen)
ProfitAmountTotal of reportable segments

853,453

Profit in category “Other”

55,350Elimination of intersegment transactions△17,681

Amortization of goodwill△14,620

Expenses of entire company (Note)△355,585

Adjustment of inventories△17,970

Operating profit in quarterly consolidated profit and loss
statement

502,945(Note) Expenses of the entire company are mainly general and administrative expenses not
attributable to reportable segments.
3. Information about loss on impairment of fixed assets or goodwill, etc., by reportable segment
No applicable matter.

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

II Current consolidated cumulative first quarter (From April 1, 2020 to June 30, 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

Total

Other
(Note)

Total

Sales
Sales to external customers
Intersegment sales ortransfers
Total
Segment profit

6,890,091

2,231,013

625,577575,207 10,321,889

275,849

10,597,738

---

---

---

---

203,767

203,767

6,890,091

2,231,013

625,577575,207 10,321,889

479,616

10,801,506

768,601

229,779

47,32655,823

1,104,158

---

2,626

1,048,334(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

1,048,334

Profit in category “Other”

55,823Elimination of intersegment transactions

2,230

Expenses of entire company (Note)△334,670

Adjustment of inventories△22,814

Operating profit in quarterly consolidated profit and loss
statement

748,904(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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