Closing Announcement of Fiscal Year Ended March 31, 2019
[Japanese Standards] (Consolidated)
May 10, 2019
Name of Listed Company:
Arisawa Mfg. Co., Ltd.
Code No.:
5208
Representative:
Representative Director and CEO:Contact Person:
Operating Officer, Corporate Planning Department:
Scheduled Date of Holding Ordinary General Meeting of Shareholders:June 27, 2019
Scheduled Date of Submitting Financial Report:
June 28, 2019
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
Scheduled Date of Commencement of Dividend Payment:
June 28, 2019No
Yes for analysts(Indicated by rounding off an amount less than 1 million yen)

1. Consolidated Results for Fiscal Year Ended March 31, 2019 (From April 1, 2018 to March 31, 2019)(1) Consolidated Operating Results(% indication shows the increase or decrease rate from the previous year)
Sales

Operating profit(million yen)

Fiscal Year Ended March 31, 2019
Fiscal Year Ended March 31, 2018
(Note)
Comprehensive income:(million yen)%(million yen)%

44,728
9.3
3,119
ᇞ14.0
4,297
40,909
18.7
3,627
102.6
4,044
Fiscal Year Ended March 31, 2019: 2,200 million yen (ᇞ51.1%)
Fiscal Year Ended March 31, 2018: 4,498 million yen (147.0%)

6.3
50.3

2,861
3,453

ᇞ17.2
69.5

%

Net profit per
share(million yen)

Net profit attributable toowners of the parent

Ordinary profit%

Fully diluted net
profit per share(Yen, Sen)Ordinary profit
ratio of total assets

ROE(Yen, Sen)%

Fiscal Year Ended March 31, 2019
79.15
78.70
5.7
96.35
95.51
7.2
Fiscal Year Ended March 31, 2018
(Reference) Equity method investment income: Fiscal Year Ended March 31, 2019: 558 million yen
Fiscal Year Ended March 31, 2018: 463 million yen

Operating profit
ratio of sales

%

%

5.9
5.1

7.0
8.9

(Note) In the consolidated third quarter in the year ended March 31, 2019, determination of provisional accounting treatment related to business combination was carriedout, and for each figure in the year ended March 31, 2018, determination of provisional accounting treatment was reflected.

(2) Consolidated Financial Condition
Total assets

Net asset(million yen)

Fiscal Year Ended March 31, 2019
Fiscal Year Ended March 31, 2018
(Reference) Net worth:

Net worth ratio

Net asset per share(million yen)

73,09653,462
72,38252,493Fiscal Year Ended March 31, 2019: 50,626 million yen
Fiscal Year Ended March 31, 2018: 49,637 million yen%(Yen, Sen)

69.3
68.6

1,397.78
1,378.16(Note) In the consolidated third quarter in the year ended March 31, 2019, determination of provisional accounting treatment related to business combination was carriedout, and for each figure in the year ended March 31, 2018, determination of provisional accounting treatment was reflected.

(3) Status of Consolidated Cash Flow
Cash flow fromoperating activities

Cash and cash
equivalents at the end of
the period

Cash flow fromfinancing activities(million yen)(million yen)(million yen)(million yen)

2,893
2,181

ᇞ3,304
ᇞ471

ᇞ578
ᇞ59

7,718
8,829

Fiscal Year Ended March 31, 2019
Fiscal Year Ended March 31, 20182.

Cash flow frominvesting activities

Status of Dividends
Annual dividends
End of 1stquarter

End of 2ndquarter

End of 3rdquarter

End ofyear

Annual(Yen, Sen)

(Yen, Sen)

(Yen, Sen)

Fiscal Year Ended March 31, 2018
Fiscal Year Ended March 31, 2019
Fiscal Year Ending March 31, 2020
(Forecast)

-----

0.00
0.00

---

---

Total
dividends(annual)Dividend
payout ratio(consolidated)

Ratio ofdividends to
net assets(consolidated)(Yen, Sen)

(Yen, Sen)(million yen)

%

%

-----

34.00
30.00

34.00
30.00

1,224
1,086

35.3
37.9

2.5
2.2

---

---

---

---

Dividends for the fiscal year ending March 31, 2020 have yet to be determined.

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 year for full-year andfrom the same quarter in the previous year for each quarter)Sales

2nd quarter (cumulative)
Full year(million yen)

22,65045,600Operating profit
%

ᇞ0.3
1.9

Net profit
attributable toowners of the parent

Ordinary profit

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

(Yen, Sen)

1,400
3,050

ᇞ19.2
ᇞ2.2

1,950
4,100

ᇞ24.7
ᇞ4.6

1,250
2,750

ᇞ29.6
ᇞ3.9

34.51
75.93

* 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) 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:

None
None
None
None

(3) Number of outstanding shares (common stocks)
1) Number of outstanding shares at the end of the period (including treasury stocks):
Fiscal Year Ended March 31, 2019: 36,226,224 shares,
Fiscal Year Ended March 31, 2018: 36,024,124 shares
2) Number of treasury stocks at the end of the period:
Fiscal Year Ended March 31, 2019: 7,378 shares,
Fiscal Year Ended March 31, 2018: 7,084 shares
3) Average number of shares during the year
Fiscal Year Ended March 31, 2019: 36,150,184 shares,
Fiscal Year Ended March 31, 2018: 35,846,832 shares(Reference) Overview of Individual Business Results
Individual Results for Fiscal Year Ended March 31, 2019 (From April 1, 2018 to March 31, 2019)(% indication shows the increase or decrease rate from the previous year)(1) Individual Operating Results
Sales(million yen)

Fiscal Year Ended March 31, 2019
Fiscal Year Ended March 31, 201829,26928,503Operating profit%(million yen)

2.7
21.8

1,533
1,944

Net profit per share

Ordinary profit
%

ᇞ21.2
232.6

(million yen)

2,602
2,451

6.2
29.1

(million yen)

1,947
2,503

%

ᇞ22.2
65.0

Fully diluted net profit per share(Yen, Sen)

(Yen, Sen)

53.87
69.83

53.56
69.22

Fiscal Year Ended March 31, 2019
Fiscal Year Ended March 31, 2018

Net profit%(2) Individual Financial Condition
Total assets(million yen)

Net asset

Net worth ratio

Net asset per share(million yen)%

(Yen, Sen)

Fiscal Year Ended March 31, 2019
45,68836,571
46,392
36,138
Fiscal Year Ended March 31, 2018
(Reference) Net worth: Fiscal Year Ended March 31, 2019: 36,427 million yen
Fiscal Year Ended March 31, 2018: 36,010 million yen

79.7
77.6

1,005.76
999.83* The closing announcement is not subject to an audit 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 Fiscal Year Ended March 31, 2019

○ Contents of Attached Materials
1. Summary of Business Results, etc. ................................................................................................................. 2(1) Summary of Business Results for the Current Year .................................................................................. 2(2) Summary of Financial Conditions for the Current Year ............................................................................ 2(3) Summary of Cash Flow for the Current Year ............................................................................................ 3(4) Future Outlook .......................................................................................................................................... 3
2. Basic Concept of Selection of Accounting Standards ..................................................................................... 4
3. Consolidated Financial Statements and Major Notes ..................................................................................... 5(1) Consolidated Balance Sheet ...................................................................................................................... 5(2) Consolidated Profit and Loss Statement and Consolidated Statement of Comprehensive Income........... 7(Consolidated Profit and Loss Statement) .................................................................................................. 7(Consolidated Statement of Comprehensive Income) ................................................................................ 8(3) Consolidated Statements of Changes in Shareholders’ Equity and Other Net Assets ............................... 9(4) Consolidated Cash Flow Statement ........................................................................................................ 11(5) Notes Related to Consolidated Financial Statements .............................................................................. 13(Notes on Going Concern)........................................................................................................................ 13(Changes in Presentation) ......................................................................................................................... 13(Notes Related to Business Combination, etc.) ........................................................................................ 13(Segment Information, etc.)...................................................................................................................... 13(Per Share Information) ............................................................................................................................ 19(Important Events after Closing the Accounts) ........................................................................................ 19-1-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 20191.

Summary of Business Results, etc.
(1) Summary of Business Results for the Current Year
The Japanese economy in the current consolidated fiscal year (hereinafter referred to as “Current Year”)
continued along a recovery trend due to improvements in corporate profits and the employment environment,
etc. On the other hand, uncertainty about the future has intensified due to ongoing trade friction originating from
U.S. trade policies, concerns about monetary policy, a slowdown in the Chinese economy and the Brexit crisis.
Under such circumstances, as for the business results for the Current Year of the Company Group (theCompany, consolidated subsidiaries and companies to which the equity method is applied), sales were ¥44,728
million (an increase of 9.3% as compared with the previous year), operating profit was ¥3,119 million (adecrease of 14.0% as compared with the previous year), ordinary profit was ¥4,297 million (an increase of 6.3%
as compared with the previous year) and net profit attributable to owners of the parent was ¥2,861 million (adecrease of 17.2% as compared with the previous year).
Sales of each segment were as follows.
(Electronic materials)
Due to an increase in sales of flexible printed circuit board materials, contribution of sales from new
consolidated companies, etc., sales were ¥28,770 million, an increase of ¥2,011 million as compared withthe previous year (7.5% as compared with the previous year).
(Industrial application structural materials)
Due to an increase in sales of aircraft interior materials and pressure vessels for water treatment, etc., net
sales were ¥8,395 million, an increase of ¥1,174 million as compared with the previous year (16.3% ascompared with the previous year).
(Electric insulation materials)
Due to a decrease in sales from the infrastructure business, sales were ¥3,127 million, a decrease of¥100 million as compared with the previous year (ᇞ3.1% as compared with the previous year).
(Display materials)
Due to an increase in sales of 3D-related materials, etc., sales were ¥3,699 million, an increase of ¥711
million as compared with the previous year (23.8% as compared with the previous year).
(Other)Sales were ¥735 million, an increase of ¥21 million as compared with the previous year (3.1% ascompared with the previous year).

(2) Summary of Financial Conditions for the Current Year
Total assets at the end of the current consolidated fiscal year were ¥73,096 million, an increase of ¥773
million as compared with the end of the previous consolidated fiscal year. This was mainly due to an increase in
raw materials and stores of ¥427 million and notes and accounts receivable of ¥180 million.
Total liabilities were ¥19,633 million, a decrease of ¥195 million as compared with the end of the previous
consolidated fiscal year. This was mainly due to a decrease in notes and accounts payable of ¥689 million andcorporate income tax, etc., payable of ¥629 million.
Net assets increased by ¥968 million as compared with the end of the previous consolidated fiscal year. Thiswas mainly due to an increase in earned surplus of ¥1,636 million from recording of net profit attributable toowners of the parent.

-2-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2019(3) Summary of Cash Flow for the Current Year
Cash and cash equivalents (hereinafter referred to as “Funds”) at the end of the current consolidated fiscal
year were ¥7,718 million, a decrease of ¥1,111 million as compared with the end of the previous consolidated
fiscal year.
(Cash Flow from Operating Activities)
Funds earned from operating activities were ¥2,893 million (an increase of 32.6% as compared with thesame period in the previous year). Major factors for an increase in Funds were net profit before taxes, etc., of¥4,215 million and depreciation expense of ¥1,901 million, etc., and the major factor for a decrease in Funds
was corporate income tax, etc., paid of ¥1,460 million, etc.
(Cash Flow from Investing Activities)
Funds used for investing activities were ¥3,304 million (an increase of 600.8% as compared with the same
period in the previous year). This was mainly due to expenditures for acquisition of tangible fixed assets of¥2,758 million and expenditures for acquisition of investment securities of ¥1,929 million, etc.
(Cash Flow from Financing Activities)
Funds used for financing activities were ¥576 million (an increase of 872.7% as compared with the same
period in the previous year). This was mainly due to net increase in short-term borrowings of ¥1,295 million,
revenues from long-term borrowings of ¥917 million, expenditures for repayment of long-term borrowings of¥1,341 million, dividends paid of ¥1,221 million, etc.
(Reference) Transitions of Cash Flow related Index
Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Net worth ratio (%)

72.2

68.6

69.3

Net worth ratio on a basis of market price (%)

43.7

49.1

39.3

Ratio of cash flow to interest bearing debt (year)

1.5

3.2

2.6

Interest coverage ratio (times)

70.5

28.5

35.3

(Note) Net worth ratio: Net worth / Total assets
Net worth ratio on a basis of market price: Total market value of shares / Total assets
Ratio of cash flow to interest bearing debt: Interest bearing debts / Cash flow from operating activities
Interest coverage ratio: Cash flow from operating activities / Interest paid
1. Each index is based on financial figures on a consolidated basis.
2. Total market value of shares is calculated by final share price at the end of the period × total numberof outstanding shares at the end of the period (after deducting treasury stock).
3. As for operating cash flow, “Cash flow from operating activities” in the consolidated cash flow
statement is used.
4. Interest bearing debts cover all the debts that paid interest out of debts appropriated on the
consolidated balance sheet. As for interest, “Interest paid” in the consolidated cash flow statement isused.

(4) Future Outlook
For the future outlook of economy, uncertainty about the future is expected to remain as in the Current Yeardue to ongoing trade friction originating from U.S. trade policies, concerns about monetary policy, a slowdown in
the Chinese economy and the Brexit crisis.
Based on such circumstances, we expect sales of ¥45,600 million, operating profit of ¥3,050 million, ordinary
profit of ¥4,100 million and net profit attributable to owners of the parent of ¥2,750 million for the consolidated
business results for the year ending March 31, 2020.

-3-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 20192.

Basic Concept of Selection of Accounting Standards
For the time being, our Company Group will maintain the policy of preparing consolidated financial
statements in compliance with Japanese standards, considering the possibility of comparison of consolidated
financial statements for multiple periods and among companies.
In this regard, we will properly respond to application of the IFRS, considering the situations in Japan andoverseas.

-4-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 20193.

Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheet(Unit: thousand yen)Previous consolidated fiscal year
(As of March 31, 2018)

Current consolidated fiscal year
(As of March 31, 2019)

9,123,877
15,947,189
1,180,101
3,915,375
1,898,096
2,951,263
1,328,865
ᇞ562,185
35,782,583

8,193,697
16,127,374
1,401,188
4,012,943
1,941,748
3,378,698
1,190,214
ᇞ668,052
35,577,813

19,379,174
ᇞ13,602,300
5,776,874

19,427,835
ᇞ13,845,280
5,582,555

28,849,087

29,125,791

ᇞ25,353,015

ᇞ25,210,271

3,496,072

3,915,519

1,836,200
95,9962,350,493
ᇞ1,919,982
430,511
11,635,655

1,949,718
121,693
2,400,451
ᇞ1,971,483
428,967
11,998,454

277,791
172,949
450,740

219,309
175,923395,233

23,365,824
218,734
11,731
491,956
602,142ᇞ176,835
24,513,554
36,599,950
72,382,533

23,142,852
218,024
15,289535,679
1,356,575
ᇞ143,823
25,124,598
37,518,286
73,096,100

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
Buildings and structures
Accumulated depreciation
Buildings and structures (net)
Machinery, equipment and delivery
equipment
Accumulated depreciation
Machinery, equipment and delivery
equipment (net)Land
Construction in progress
Other
Accumulated depreciation
Other (net)Total tangible fixed assets
Intangible fixed assets
Goodwill
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Long-term loans
Net defined benefit assets
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total Fixed Assets
Total Assets-5-Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2019
(Unit: thousand yen)Previous consolidated fiscal year
(As of March 31, 2018)

Current consolidated fiscal year
(As of March 31, 2019)

6,794,393
36,8004,242,472
864,130
18,230930,529598,261
5,956
2,491,726
15,982,499

6,105,195
36,8005,394,122
779,820
17,535
300,788
510,407
3,957
3,024,295
16,172,921

164,800
1,642,485
33,691
1,011,591
603,556
92,837357,334
3,906,295
19,888,795

128,000
1,265,465
13,201
1,074,271
626,885
92,502
260,723
3,461,049
19,633,971

7,458,242
6,570,209
33,493,564
ᇞ4,46747,517,548

7,541,693
6,653,615
35,130,363
ᇞ4,76449,320,907

1,214,473--1,081,810
ᇞ176,694
2,119,588
127,640
2,728,960
52,493,738
72,382,533

745,120443
707,571ᇞ147,916
1,305,219
144,419
2,691,582
53,462,129
73,096,100

Liabilities
Current Liabilities
Notes and accounts payable
Bonds to be redeemed within a year
Short-term borrowings
Current portion of long-term borrowings
Lease liabilities
Corporate income tax, etc., payable
Reserve for bonuses
Reserve for officers’ bonuses
Other
Total Current Liabilities
Fixed Liabilities
Bonds
Long-term borrowings
Lease liabilities
Deferred tax liabilities
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/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-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2019(2) Consolidated Profit and Loss Statement and Consolidated Statement of Comprehensive Income(Consolidated Profit and Loss Statement)(Unit: thousand yen)

Sales
Cost of Goods Sold
Gross Profit on Sales
Selling, General and Administrative Expenses
Freight and packaging expenses
Wages and allowances
Transfer to reserve for bonuses
Transfer to reserve for officers’ bonuses
Transfer to reserve for retirement benefits
Transfer to allowance for doubtful accounts
Other
Total Selling, General and Administrative
Expenses
Operating Profit
Non-Operating Income
Interest income
Dividend income
Investment profit by equity method
Foreign exchange profit
Other
Total Non-Operating Income
Non-Operating Expenses
Interest expenses
Loss on redemption of investment securities
Foreign currency exchange loss
Rent expenses
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
Retirement loss on fixed assets
Loss on sale of investment securities
Valuation loss on investment securities
Other
Total Extraordinary Losses
Net profit before taxes, etc.
Corporate income tax, resident tax and business tax
payableAdjustment of corporate income tax, etc.
Total corporate income tax, etc.
Net Profit
Net profit attributable to non-controlling interests
Net profit attributable to owners of the parent

Previous consolidated fiscal year
(From April 1, 2017
to March 31, 2018)
40,909,534
32,730,617
8,178,916

Current consolidated fiscal year
(From April 1, 2018
to March 31, 2019)
44,728,243
36,607,194
8,121,049

707,496
1,293,438
113,3885,956
55,16952,6072,323,315

713,508
1,407,937
104,273
3,957
69,002
61,3112,641,496

4,551,372

5,001,486

3,627,543

3,119,562

310,701
92,786463,698--335,942
1,203,130

336,000
101,318
558,090160,081353,494
1,508,984

76,46684,446
170,966
83,031
311,796
59,534786,241
4,044,433

81,88062,541--63,473
48,68774,307
330,890
4,297,655

3,268
743,019
105,523
851,81233,71965,01014,374
113,104

26,028
13,57940,202
63,5957,307
150,712
4,745,532

96,72553,231--45,000--194,956
4,215,803

1,199,341

862,516

ᇞ205,044
994,296
3,751,236
297,508
3,453,727

204,008
1,066,525
3,149,278
287,899
2,861,378-7-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2019

(Consolidated Statement of Comprehensive Income)(Unit: thousand yen)

Net profit
Other comprehensive income
Valuation difference on other securities
Deferred hedge profit/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 fiscal year
(From April 1, 2017
to March 31, 2018)
3,751,236

Current consolidated fiscal year
(From April 1, 2018
to March 31, 2019)
3,149,278

271,773
ᇞ5,153491,0532,861

ᇞ469,322
443
ᇞ384,361
22,493

ᇞ13,356

ᇞ117,745

747,179
4,498,416

ᇞ948,493
2,200,785

4,004,414

2,047,009

494,001

153,776-8-

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2019(3) Consolidated Statements of Changes in Shareholders’ Equity and Other Net Assets
Previous consolidated fiscal year (From April 1, 2017 to March 31, 2018)(Unit: thousand yen)
Shareholders’ equity
CapitalBalance at the beginning of the period

Capital surplus

7,317,019

6,429,038

141,222

141,170

Earned surplus

Treasury stock

30,740,318

Total shareholders’equityᇞ3,891

44,482,485

Changes during the period
Issue of new shares

282,393
ᇞ713,461

ᇞ713,461

Change in scope of consolidation

ᇞ4,320

ᇞ4,320Changes in scope of equity method

17,30017,300Net profit attributable to owners of
the parent

3,453,727

3,453,727

Dividends of surplus

Acquisition of treasury stock

ᇞ576

ᇞ576

Changes in items other thanshareholders’ equity during theperiod (net)Total changes during the period

141,222

141,170

2,753,245

ᇞ576

3,035,062

Balance at the end of the period

7,458,242

6,570,209

33,493,564

ᇞ4,46747,517,548

Accumulated other comprehensive income
Total
New share
NonForeign
Accumulated
Valuation
Deferredaccumulated
subscription controllingcurrency
adjustment
difference on
hedge
other
rightsinterest
translation for retirement
other securities profit/loss
comprehensive
adjustments
benefits
incomeBalance at the beginning of the period

942,763

5,153

808,002

ᇞ187,018

1,568,901

143,292

Total net
assets2,356,620 48,551,300

Changes during the period
Issue of new shares

282,393

Dividends of surplus

ᇞ713,461
ᇞ4,320Change in scope of consolidation
Changes in scope of equity method

ᇞ17,3000

ᇞ17,300

Net profit attributable to owners of
the parent

3,453,727
ᇞ576

Acquisition of treasury stock
Changes in items other thanshareholders’ equity during the period(net)

271,709

ᇞ5,153291,107

10,324567,987

ᇞ15,651

372,339924,675

Total changes during the period

271,709

ᇞ5,153273,807

10,324550,686

ᇞ15,651

372,339

3,942,437

Balance at the end of the period

1,214,473---

1,081,810

ᇞ176,694

2,119,588

127,640-9-2,728,960 52,493,738

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2019

Current consolidated fiscal year (From April 1, 2018 to March 31, 2019)(Unit: thousand yen)
Shareholders’ equity
CapitalBalance at the beginning of the period

Capital surplus

7,458,242

6,570,209

83,45083,406

Earned surplus

Treasury stock

33,493,564

Total shareholders’equityᇞ4,46747,517,548

Changes during the period
Issue of new shares

166,857
ᇞ1,224,579

Dividends of surplus

ᇞ1,224,579

Change in scope of consolidation---

Changes in scope of equity method---

Net profit attributable to owners of
the parent

2,861,378

Acquisition of treasury stock

2,861,378
ᇞ296

ᇞ296

Changes in items other thanshareholders’ equity during theperiod (net)Total changes during the period

83,45083,406

1,636,799

ᇞ296

1,803,359

Balance at the end of the period

7,541,693

6,653,615

35,130,363

ᇞ4,76449,320,907

Accumulated other comprehensive income
Total
New share
NonForeign
Accumulated
Valuation
Deferredaccumulated
subscription controllingcurrency
adjustment
difference on
hedge
other
rightsinterest
translation for retirement
other securities profit/loss
comprehensive
adjustments
benefits
incomeBalance at the beginning of the period

1,214,473---

1,081,810

ᇞ176,694

2,119,588

Total net
assets127,640 2,728,960 52,493,738

Changes during the period
Issue of new shares

166,857

Dividends of surplus

ᇞ1,224,579

Change in scope of consolidation---

Changes in scope of equity method---

Net profit attributable to owners of
the parent

2,861,378
ᇞ296

Acquisition of treasury stock
Changes in items other thanshareholders’ equity during the period(net)ᇞ469,352

443

ᇞ374,238

28,778

ᇞ814,369

16,778

ᇞ37,378ᇞ834,968

Total changes during the period

ᇞ469,352

443

ᇞ374,238

28,778

ᇞ814,369

16,778

ᇞ37,378

968,390

Balance at the end of the period

745,120443

707,571ᇞ147,916

1,305,219

144,419 2,691,582 53,462,129- 10 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2019(4) Consolidated Cash Flow Statement(Unit: thousand yen)Previous consolidated fiscal year
(From April 1, 2017
to March 31, 2018)

Current consolidated fiscal year
(From April 1, 2018
to March 31, 2019)

4,745,532
1,715,300
26,028
14,62042,6364,215,803
1,901,582
96,72558,482
53,638

ᇞ44

ᇞ82

131,882

ᇞ87,8532,383

ᇞ1,999352,842

109,999

36,012

55,693

ᇞ403,488
76,466
ᇞ81,697
ᇞ463,698

ᇞ437,318
81,880
ᇞ21,172ᇞ558,090

ᇞ702,816

ᇞ64,987

---

3,876

63,59545,00042,556

ᇞ12,096

ᇞ3,2687,299
ᇞ2,054
ᇞ46,229
ᇞ49,932

ᇞ33,719
20,107
ᇞ7,341
ᇞ7,033---

ᇞ2,663,182

ᇞ517,924

ᇞ2,152,410
1,375,862

ᇞ682,445
ᇞ588,527

ᇞ35,91136,33066,227
277,9312,372,440
562,878
ᇞ84,476
ᇞ726,094----57,240
2,181,988

135,546
44,9883,839,063
603,579
ᇞ84,622
ᇞ1,460,756
87,807
ᇞ91,683--2,893,387

Cash flow from operating activities
Net profit before taxes, etc.
Depreciation expense
Loss on impairment
Amortization of goodwill
Stock compensation expenses
Increase/decrease in provision for productwarranties (ᇞ: decrease)
Increase/decrease in reserve for bonuses(ᇞ: decrease)
Increase/decrease in reserve for officers’ bonuses(ᇞ: decrease)
Increase/decrease in allowance for doubtful
accounts (ᇞ: decrease)
Increase/decrease in net defined benefit liabilities(ᇞ: decrease)
Interest and dividend income
Interest expenses
Foreign currency exchange profit/loss (ᇞ: profit)
Investment profit/loss by equity method (ᇞ: profit)
Profit/loss on sale of investment securities(ᇞ: profit)
Loss on compensation for damages
Valuation profit/loss on investment securities(ᇞ: profit)
Profit/loss on redemption of investment securities(ᇞ: profit)
Profit/loss on sale of fixed assets (ᇞ: profit)
Loss on retirement of tangible fixed assets
Profit on reversal of new share subscription rights
Profit/loss on changes in equity (ᇞ: profit)
Other extraordinary profit/loss (ᇞ: profit)
Increase/decrease in accounts receivable(ᇞ: increase)
Increase/decrease in inventories (ᇞ: increase)
Increase/decrease in trades payable (ᇞ: decrease)
Increase/decrease in consumption tax, etc., payable(ᇞ: decrease)
Increase/decrease in other assets (ᇞ: increase)
Increase/decrease in other liabilities (ᇞ: decrease)
SubtotalInterest and dividends received
Interest paid
Corporate income tax, etc., paid or refund (ᇞ: paid)
Insurance benefits received
Amount paid for compensation for damages
Other revenue
Cash flow from operating activities- 11 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2019
(Unit: thousand yen)Previous consolidated fiscal year
(From April 1, 2017
to March 31, 2018)

Current consolidated fiscal year
(From April 1, 2018
to March 31, 2019)--226,918
ᇞ1,700,551
6,392

ᇞ100,000
3,000
ᇞ2,758,365
38,574

ᇞ29,580

ᇞ43,057

ᇞ1,418,992

ᇞ1,929,842

2,987,494
31,096
ᇞ172,342
156,772

1,476,584--ᇞ55,049
33,500ᇞ549,365---

ᇞ9,302

30,463

ᇞ471,462

ᇞ3,304,192

911,107

1,295,491

690,400

917,500

ᇞ913,848

ᇞ1,341,230

ᇞ22,156

ᇞ20,968ᇞ116,665

ᇞ115,173--226,159
ᇞ576
ᇞ712,054
ᇞ121,662
ᇞ59,296
262,416

ᇞ36,800
137,338
ᇞ296
ᇞ1,221,488
ᇞ191,154
ᇞ576,781
ᇞ123,536

1,913,646

ᇞ1,111,123

7,026,200

8,829,805

ᇞ110,040---

8,829,805

7,718,682

Cash flow from investing activities
Expenditure for placement in term deposits
Revenue from refund of term deposits
Expenditure for acquisition of tangible fixed assets
Revenue from sale of tangible fixed assets
Expenditure for acquisition of intangible fixed
assetsExpenditure for acquisition of investment
securities
Revenue from sale of investment securities
Revenue from liquidation of subsidiaries
Expenditure for lending
Revenue from collection of loans
Expenditure for acquisition of shares of a
subsidiary accompanying the change in scope of
consolidation
Increase/decrease in investments and other assets(ᇞ: increase)
Cash flow from investing activities
Cash flow from financing activities
Net increase/decrease in short-term borrowings(ᇞ: decrease)
Revenue from long-term borrowings
Expenditure for repayment of long-termborrowings
Expenditure for repayment of lease liabilities
Expenditure for repayment of long-term accrued
amountExpenditure for redemption of bonds
Proceeds from stocks issued
Expenditure for acquisition of treasury stock
Dividends paid
Dividends paid to non-controlling interests
Cash flow from financing activities
Translation differences in cash and cash equivalents
Increase/decrease in cash and cash equivalents(ᇞ: decrease)
Cash and cash equivalents at the beginning of theperiodDecrease in cash and cash equivalents in connection
with exclusion from consolidation
Cash and cash equivalents at the end of the period- 12 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2019(5) Notes Related to Consolidated Financial Statements(Notes on Going Concern)
No applicable matter.
(Changes in Presentation)(Changes in connection with application of “Partial Amendment of the ‘Accounting Standards for Tax EffectAccounting,’”)“Partial Amendment of the ‘Accounting Standards for Tax Effect Accounting’” (Accounting Standards for
Business Enterprises No.28, February 16, 2018; hereinafter referred to as “Partial Amendment of Tax EffectAccounting Standards”) has been applied from the beginning of the current consolidated fiscal year. Accordingly,
the presentation method was changed as deferred tax assets are indicated in the category of investments and otherassets and deferred tax liabilities are indicated in the category of fixed liabilities.
As a result, in the consolidated balance sheet in the previous consolidated fiscal year, “Deferred tax assets” in“Current assets” of ¥584,907 thousand are included in “Deferred tax assets” in “Investments and other assets” of¥491,956 thousand and “Deferred tax liabilities” in “Current liabilities” of ¥85 thousand are included in“Deferred tax liabilities” in “Fixed liabilities” of ¥1,011,591 thousand.

1.

(Notes Related to Business Combination, etc.)
Determination of provisional accounting treatment related to business combination
Although provisional accounting treatment was carried out for the previous consolidated fiscal year related tobusiness combination with Satosen Co., Ltd. which was conducted on November 30, 2017, determination wasmade in the current consolidated fiscal year.
In connection with the determination of provisional accounting treatment, in the comparative information
included in the consolidated financial statements for the current consolidated fiscal year, material review wasreflected in the initial allocation of the acquisition cost.
As a result, the provisionally calculated amount of goodwill of ¥355,527 thousand, decreased by ¥63,115
thousand after determination of accounting treatment and it was ¥292,412 thousand. A decrease in goodwill was
due to an increase in other amount of intangible fixed assets of ¥95,039 thousand and in other amount of fixedliabilities of ¥31,923 thousand respectively.

(Segment Information, etc.)[Segment Information]
1.
Outline of reportable segments
Reportable segments of the Company are those whose separate financial information is obtainable out of thecomposition units of the Company and the subject of periodical review by the board of directors in order todetermine distribution of business resources and evaluate performances.
The Company established the manufacturing and sales system by product and service at the head office anddevelops comprehensive strategies of the handling products and services for Japan and overseas and is developing
business activities.
Therefore, the Company is composed of segments by product and service based on the manufacturing andsales system and adopts the four businesses of “electronic materials business,” “industrial application structural
materials business,” “electric insulation materials business” and “display materials business” as the reportablesegments.
“Electronic materials business” produces materials for flexible and rigid printed circuit boards, etc.
“Industrial application structural materials business” produces FW molded products, honeycomb panels andprepregs for aircraft, pultrusion products, FRP ski sheets, etc. “Electric insulation materials business” produces
glass cloth, glass tapes, prepregs for electric insulation, etc. “Display materials business” produces 3D display
filters, special optical films, etc.
2.
Method of calculation of the amount of sales, profit or loss, assets, liabilities and other items by reportablesegment
Accounting method of reported business segments is generally the same as the statement in “Substantial
Underlying Matters for Preparation of Consolidated Financial Statements.”- 13 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2019

Profit in the reportable segments is based on operating profit (before amortization of goodwill).
Intersegment revenues and transfers are based on the actual market price.
In this regard, segment information in the previous consolidated fiscal year shows the amount after beingreflected in the material review of the initial allocation of the acquisition cost as a result of determination ofprovisional accounting treatment related to business combination.

- 14 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 20193.

Information about the amount of sales, profit or loss, assets, liabilities and other items by reportable segment
Previous consolidated fiscal year (From April 1, 2017 to March 31, 2018)(Unit: thousand yen)
Reportable segment

Sales
Sales to externalcustomers
Intersegment sales ortransfers
Total
Segment profit/loss (ᇞ)
Segment assets
Other
Depreciation
expenseInvestment incompanies to which
the equity method isappliedIncrease in tangible
fixed assets andintangible fixed
assetsElectronicmaterials

Industrial
application
structural
materials

26,758,514

Electric
insulationmaterials

Displaymaterials

Total

Other
(Note)

Total

7,220,625

3,228,116

2,988,521

40,195,778

713,755

40,909,534

---

---

---

---

---

843,096

843,096

26,758,514

7,220,625

3,228,116

2,988,521

40,195,778

1,556,851

41,752,630

3,113,123

1,109,805

608,213

ᇞ55,614

4,775,528

240,672

5,016,201

27,026,311

7,974,210

3,413,591

10,924,722

49,338,835

1,454,461

50,793,297

1,195,443

175,801

78,369145,435

1,595,048

25,512

1,620,561

---

---

---

7,713,250

7,713,250---

7,713,250

894,521

136,411

36,20149,642

1,116,776

11,103

1,127,879

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.
Current consolidated fiscal year (From April 1, 2018 to March 31, 2019)(Unit: thousand yen)
Reportable segment
Electronicmaterials

Industrial
application
structural
materials

28,770,006

8,395,152

Displaymaterials

Total

Other
(Note)

Total

3,127,617

3,699,894

43,992,670

735,573

44,728,243

Electric
insulationmaterials

Sales
Sales to externalcustomers
Intersegment sales ortransfers
Total

---

---

---

---

---

774,757

774,757

28,770,006

8,395,152

3,127,617

3,699,894

43,992,670

1,510,331

45,503,001

Segment profit/loss (ᇞ)

2,620,863

1,393,245

430,901

114,841

4,559,852

192,791

4,752,643

Segment assets

28,191,582

8,187,279

3,224,618

11,269,843

50,873,325

1,229,002

52,102,328

1,397,503

170,987

83,532130,836

1,782,860

21,9991,804,859

---

---

---

8,021,428

8,021,428---

8,021,428

1,958,890

168,807

81,738144,156

2,353,593

6,703

2,360,296

Other
Depreciation expense
Investment incompanies to which
the equity method isappliedIncrease in tangible
fixed assets andintangible fixed
assetsNote: 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.

- 15 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 20194.

Difference between the total amount of reportable segments and the amount shown in the consolidated financial
statements and major details for the difference (matters concerning difference adjustment)(Unit: thousand yen)
Sales

Previous consolidated fiscal year

Current consolidated fiscal year

Total of reportable segments

40,195,778

43,992,670

Sales in category “Other”

1,556,851

1,510,331

Elimination of intersegment transactions

ᇞ843,096

ᇞ774,757

Sales in consolidated financial statements

40,909,534

44,728,243

ProfitPrevious consolidated fiscal year

Current consolidated fiscal year

Total of reportable segments

4,775,528

4,559,852

Profit in category “Other”

240,672

192,791

Elimination of intersegment transactions

ᇞ98,443

ᇞ105,450

Amortization of goodwill

ᇞ14,620

ᇞ58,482

ᇞ1,239,914

ᇞ1,443,860

Adjustment of inventories

ᇞ35,678

ᇞ25,287

Operating profit in consolidated financial statements

3,627,543

3,119,562(Unit: thousand yen)

Expenses of entire company (Note)

Note: Expenses of the entire company are mainly general and administrative expenses not attributable to reportablesegments.
(Unit: thousand yen)
AssetsPrevious consolidated fiscal year

Current consolidated fiscal year

Total of reportable segments

49,338,835

50,873,325

Assets in category “Other”
Elimination by setoff of the claims to
the administrative department of head office
Assets of entire company (Note)

1,454,461

1,229,002

ᇞ694,241ᇞ453,463

22,319,156

21,472,523

ᇞ35,678

ᇞ25,287

72,382,533

73,096,100

Adjustment of inventories
Total assets in consolidated financial statements

Note: Assets of the entire company are mainly investment securities, etc., not attributable to reportable segments.

Other item

Total of reportablesegments

Other

Adjustment(Unit: thousand yen)Amount shown inconsolidated financial
statements

Previous
consolidated
fiscal year

Current
consolidated
fiscal year

Previous
consolidated
fiscal year

Current
consolidated
fiscal year

Previous
consolidated
fiscal year

Current
consolidated
fiscal year

Previous
consolidated
fiscal year

Current
consolidated
fiscal year

Depreciation expense

1,595,048

1,782,860

25,512

21,99991,76896,722

1,712,330

1,901,582

Increase in tangible fixed
assets and intangible fixed
assets

1,116,776

2,353,593

11,103

6,703

95,706

183,553

1,223,586

2,543,849

Note: Adjustment of increase in tangible fixed assets and intangible fixed assets is the capital investments in theassets used for the common corporate purpose.

- 16 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2019

[Related Information]
Previous consolidated fiscal year (From April 1, 2017 to March 31, 2018)
1. Information by product and service(Unit: thousand yen)
Electronicmaterials
Sales to external customers

26,758,514

Industrial
application
structural
materials
7,220,625

Electric
insulationmaterials

Displaymaterials

Other2,988,521

713,755 40,909,534

3,228,116

Total

2. Information by region(1) Sales(Unit: thousand yen)
Japan

China

18,823,232

12,452,111

Other Region
9,634,189

Total
40,909,534

Note: Sales are based on the location of customers and classified into a country or region.
(2) Tangible fixed assets(Unit: thousand yen)Japan

Taiwan9,104,933

3.

1,759,963

Other Region
770,758

Total
11,635,655

Information by major customer(Unit: thousand yen)
Name of Customer

Sales

Sumitomo Shoji Chemicals Co., Ltd.

Related segment name
6,185,199

Electronic materials businessCurrent consolidated fiscal year (From April 1, 2018 to March 31, 2019)
1. Information by product and service(Unit: thousand yen)
Electronicmaterials
Sales to external customers

28,770,006

Industrial
application
structural
materials
8,395,152

Electric
insulationmaterials

Displaymaterials

Other

Total

3,699,894

735,573

44,728,243

3,127,617

2. Information by region(1) Sales(Unit: thousand yen)
Japan

China

20,775,148

13,236,723

Other Region
10,716,371

Total
44,728,243

Note: Sales are based on the location of customers and classified into a country or region.
(2) Tangible fixed assets(Unit: thousand yen)Japan

Taiwan9,495,215

3.

1,759,191

Other Region
744,046

Total
11,998,454

Information by major customer(Unit: thousand yen)
Name of Customer

Sales

Sumitomo Shoji Chemicals Co., Ltd.

Related segment name5,664,735- 17 -

Electronic materials businessArisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2019

[Information about loss on impairment of fixed assets by reportable segment]
Previous consolidated fiscal year (From April 1, 2017 to March 31, 2018)
Electronicmaterials
Loss onimpairment---

Industrial
Electric insulation
applicationmaterials
structural materials---

Displaymaterials

Other

Entirecompany/
Elimination

26,028

---

---

---

Total
26,028Current consolidated fiscal year (From April 1, 2018 to March 31, 2019)
Industrial
Electronic
Electric insulation
applicationmaterials
materials
structural materials
Loss onimpairment

---

---

Displaymaterials

Other96,725------(Unit: thousand yen)
EntireTotal
company/
Elimination---

96,725[Information about amortization of goodwill and unamortized balance by reportable segment]
Previous consolidated fiscal year (From April 1, 2017 to March 31, 2018)
Industrial
Electric insulation
Electronic
applicationmaterials
materials
structural materials

Displaymaterials

Other(Unit: thousand yen)
Entirecompany/
Total
Elimination

Amortization

14,620

---

---

---

---

---

14,620

Balance at theend of the period

277,791

---

---

---

---

---

277,791

Current consolidated fiscal year (From April 1, 2018 to March 31, 2019)
Industrial
Electronic
Electric insulation
applicationmaterials
materials
structural materials

Displaymaterials

Other(Unit: thousand yen)
EntireTotal
company/
Elimination

Amortization

58,482

---

---

---

---

---

58,482

Balance at theend of the period

219,309

---

---

---

---

---

219,309[Information about profit on negative goodwill by reportable segment]
No applicable matter.

- 18 -

Arisawa Mfg. Co., Ltd. (5208) Closing Announcement of Fiscal Year Ended March 31, 2019

(Per Share Information)
Previous consolidated fiscal year
(From April 1, 2017
to March 31, 2018)

Current consolidated fiscal year
(From April 1, 2018
to March 31, 2019)

Net asset per share¥1,378.16¥1,397.78

Net profit per share¥96.35¥79.15

Fully diluted net profit per share¥95.51¥78.70Note: Net profit and fully diluted net profit per share are calculated on the basis of the following:
Previous consolidated fiscal year
(From April 1, 2017
to March 31, 2018)

Current consolidated fiscal year
(From April 1, 2018
to March 31, 2019)

3,453,727

2,861,378

---

---

3,453,727

2,861,378

35,846,832

36,150,184

Adjustment of net profit attributable to ownersof the parent (thousand yen)

---

---

Increase in number of common stocks (shares)

314,832

208,623(314,832)(208,623)

Net profit per share
Net profit attributable to owners of the parent(thousand yen)Amounts that are not attributable to common
stockholders (thousand yen)
Net profit attributable to owners of the parent
for common stocks(thousand yen)
Average number of shares during the year
(shares)

Fully diluted net profit per share(Of those, number of new share subscription
rights (shares))
The outline of potential shares not included in thecalculation of fully diluted net profit per share dueto the absence of dilutive effects

Four types of new sharesubscription rights (567,700 shares)(Important Events after Closing the Accounts)
No applicable matter.

- 19 -

Six types of new share subscription
rights (848,500 shares)