Arisawa Mfg : Quarterly Report (The First Quarter of the 76th Term) From April 1, 2023 to June 30, 2023（491KB）

QUARTERLY REPORT

(The First Quarter of the 76th Term)

From April 1, 2023 to June 30, 2023

(TRANSLATION)

ARISAWA MFG. CO., LTD.

		TABLE OF CONTENTS
			Page Number
Cover Page
PART I. INFORMATION ON THE BUSINESS	1
I. General Conditions of Business	1
1.	Changes in Principal Management Indicators, etc	1
2.	Description of Business	1
II. Status of Business	2
1.	Business Risks, etc	2
2. Analyses of Consolidated Financial Position, Business Results and Cash Flows by the
		Corporate Managers	2
3.	Agreements with Managerial Implications, etc	3
III. Status of the Submitting Company	4
1.	Status of Shares, etc	4
(1) Total Number of Shares, etc	4
(2)	Status of Stock Acquisition Rights, etc	4
(3)	Status of Exercise of Moving Strike Convertible Bonds, etc	4
(4)	Changes in the Number of Shares Issued and Outstanding, Share Capital, etc	4
(5)	Status of Major Shareholders	4
(6)	Status of Voting Rights	5
2.	Status of Directors and Officers	5
IV. Status of Accounting	6
1.	Quarterly Consolidated Financial Statements	7
(1)	Quarterly Consolidated Balance Sheets	7
(2)	Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of
		Comprehensive Income	9
		[Quarterly Consolidated Statements of Income]	9
		[Quarterly Consolidated Statements of Comprehensive Income]	10
2.	Other	15
PART II. INFORMATION ON GUARANTY COMPANIES, ETC. OF THE
		SUBMITTING COMPANY	16

[Independent Auditors' Quarterly Review Report]

Cover Page

Document to be filed:	Quarterly Report
Statutory basis:	Article 24-4-7, paragraph 1 of the Financial Instruments and Exchange Act
Filing to:	Director-General of the Kanto Local Finance Bureau
Date of filing:	August 10, 2023
Quarterly accounting period:	The First Quarter of the 76th Term (From April 1, 2023 to June 30, 2023)
Company name (Japanese):	Kabushiki-Kaisha Arisawa Seisakusho
Company name (English):	Arisawa Mfg. Co., Ltd.
Name and title of representative:	Yuta Arisawa, President and Representative Director
Location of head office:	5-5,Minami-honcho1-chome,Joetsu-shi, Niigata
Telephone number:	[phone]
Contact person:	Shuichi Kubota, Operating Officer supervising Corporate Strategy
	Department
Place of contact:	5-5,Minami-honcho1-chome,Joetsu-shi, Niigata
Telephone number:	[phone]
Contact person:	Shuichi Kubota, Operating Officer supervising Corporate Strategy
	Department
Places where copies of this Quarterly Report are	Arisawa Mfg. Co., Ltd., Tokyo Head Office
made available for public inspection:	(12-5, Yanagibashi 2-chome,Taito-ku, Tokyo)
	Tokyo Stock Exchange, Inc.
	(2-1, Nihonbashi Kabutocho, Chuo-ku, Tokyo)

PART I. INFORMATION ON THE BUSINESS

I. General Conditions of Business

1. Changes in Principal Management Indicators, etc.

			75th term	76th term
		Term	consolidated cumulative	consolidated cumulative	75th term
			first quarter	first quarter
Accounting period	From April 1, 2022	From April 1, 2023	From April 1, 2022
to June 30, 2022	to June 30, 2023	to March 31, 2023
Net sales	(Millions of yen)	11,321	9,494	42,722
Ordinary profit (loss (△))	1,177	△172	2,717
	(Millions of yen)
Profit (loss (△)) attributable
to owners of parent	1,167	△201	2,856
		(Millions of yen)
Comprehensive income	1,479	205	2,578
		(Millions of yen)
Net assets	(Millions of yen)	46,173	44,336	47,107
Total assets		68,882	64,995	67,659
		(Millions of yen)
Basic earnings (loss (△)) per	35.11	△6.10	86.46
share		(Yen)
Diluted earnings per share	35.08	－	86.24
		(Yen)
Equity ratio	(%)	66.8	68.1	69.5

Note: 1. As Arisawa Mfg. Co., Ltd. (hereinafter referred to as either the "Company" or the "Submitting Company", as the case may be) prepares the quarterly consolidated financial statements, the changes in principal management indicators, etc. of the Submitting Company are not stated above.

2. Diluted earnings per share in the 76th consolidated cumulative first quarter is not stated above due to net loss per share, though potential share exists.

2. Description of Business

There was no material change in information regarding the business lines of our corporate group (the Company and its associated companies; hereinafter referred to as either the "Group" or "our Group", as the case may be) in the current consolidated cumulative first quarter.

No change of organization was made to any of the Company's principal associated companies.

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1. Status of Business

1. Business Risks, etc.

The current consolidated cumulative first quarter saw neither any new business risks, etc. emerging nor any significant change in the business risks, etc. stated in the Financial Report for the previous business year.

2. Analyses of Consolidated Financial Position, Business Results and Cash Flows by the Corporate Managers

Matters stated concerning the future in the text are based on judgments made as of the end of the current consolidated first quarter.

1. Financial Position and Operating Results

1. Operating Results

As for the Japanese economy in the current consolidated cumulative first quarter, the economic activity has been normalized due to COVID-19 infections under the Infectious Diseases Act being changed to be classified in the Class 5. On the other hand, the future prospects remained uncertain due to the persistent high energy and raw material prices caused by the prolonged situation in Ukraine, the rise in prices caused by global inflation in addition to economic downturn in China.

Under such circumstances, the results of operations of our Group (the Company, its consolidated subsidiaries and the companies accounted for under the equity method) for the current consolidated cumulative first quarter showed net sales of 9,494 million yen (representing a 16.1% decrease as compared with the year-earlier quarter) due to a decrease in sales of electronic materials, which is the main business field of our group, caused by the significant impact from the decrease in demand in the Chinese market, despite an increase in sales of industrial application structural materials. Due to soaring energy costs and raw material prices in addition to the impact of decrease in sales, the results in terms of profit and loss are as follows: an operating loss was 247 million yen (an operating profit of 705 million yen in the year-earlier quarter); an ordinary loss was 172 million yen (an ordinary profit of 1,177 million yen in the year-earlier quarter); and a loss attributable to owners of parent was 201 million yen (a profit attributable to owners of parent of 1,167 million yen in the year-earlier quarter).

Business results with respect to each segment are as follows.

a. Electronic materials segment

In the electronic materials segment, net sales were 5,408 million yen, representing a 30.4% decrease as compared with the year-earlier quarter, due to a decrease in sales of flexible printed circuit board materials (the amount of orders received decreased by 27.9%, and the production output decrease by 34.3%, as compared with the year-earlier quarter on a non-consolidated basis of the Submitting Company) and glass cloth for printed circuit board, while the segment profit or loss recorded a segment loss of 259 million yen (a segment profit of 715 million yen in the year-earlier quarter) caused by the impact from soaring energy costs and raw material prices in addition to decrease in sales.

b. Industrial application structural materials segment

In the industrial application structural materials segment, net sales were 2,653 million yen, representing a 51.8% increase as compared with the year-earlier quarter, due to an increase in sales of water treatment FRP pressure vessels and honey-comb panel for aircraft, while the segment profit or loss recorded a segment profit of 239 million yen (a 193.9% increase as compared with the year-earlier quarter).

c. Electrical insulating materials segment

In the electrical insulating materials segment, net sales were 583 million yen, representing a 6.8% decrease as compared with the year-earlier quarter, due to a decrease in infrastructure-related sales, while the segment profit or loss recorded a segment profit of 15 million yen (a 61.5% decrease as compared with the year- earlier quarter).

d. Display materials segment

In the display materials segment, net sales were 765 million yen, representing a 30.0% decrease as compared with the year-earlier quarter, due to a decrease in sales of 3D-related materials and polarization control optical components, while the segment profit or loss recorded a segment profit of 125 million yen (a

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