Arisawa Mfg : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023 (Based on Japanese GAAP)（291KB）

Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023 (Based on Japanese GAAP)

Company Name:	Arisawa Mfg. Co., Ltd.	Stock exchange listing: Tokyo	August 3, 2023
Stock code:	5208	(URL https://www.arisawa.co.jp/)
Representative:	Representative Director and CEO:	Yuta Arisawa
Inquiries:	Director and Senior Managing Operating Officer:	Takeshi Masuda	TEL: [phone]
Scheduled date to file quarterly securities report:	August 10, 2023
Scheduled date to commence dividend payments:	---
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended June 30, 2023

(from April 1, 2023 to June 30, 2023)

(1) Consolidated operating results (cumulative)

(Percentages indicate year-on-year changes)

	Net sales				Operating profit			Ordinary profit	Profit attributable to
						owners of parent
Three months ended June 30, 2023	Millions of yen		%		Millions of yen		%	Millions of yen	%	Millions of yen	%
9,494		16.1		247	---			172	---		201	---
Three months ended June 30, 2022	11,321	△	5.0			△705		31.7	1,177	11.0	1,167	50.2
(Note) Comprehensive income:				△				△
Three months ended June 30, 2023: 205 million	yen (	86.1%)
							△
	Three months ended June 30, 2022: 1,479 million yen (83.1%)
									△
	Earnings per share			Diluted earnings per share
Three months ended June 30, 2023				Yen					Yen
				6.10				---	35.08
Three months ended June 30, 2022				35.11
				△

(2) Consolidated financial position
		Total assets		Net assets	Equity ratio	Net asset per share
As of June 30, 2023		Millions of yen		Millions of yen	%	Yen
	64,995		44,336	68.1	1,338.33
As of March 31, 2023		67,659		47,107	69.5	1,422.43
(Reference) Total equity:	As of June	30, 2023: 44,286 million yen		As of March 31, 2023: 47,056 million yen

2.	Cash dividends
			Annual dividends per share
		1st quarter-end	2nd quarter-end	3rd quarter-end		Fiscal year-end	Total
		Yen	Yen	Yen		Yen	Yen
Year ended March 31, 2023	---	0.00	---		90.00	90.00
Year ending March 31, 2024	---
Year ending March 31, 2024		20.00	---		25.00	45.00
(Forecast)

(Note) Revisions to dividend projections most recently announced: No

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

(Percentages indicate year-on-year changes)

	Net sales			Operating profit			Ordinary profit	Profit attributable to	Earnings
					owners of the parent	per share
Six months ending	Millions of yen			%	Millions of yen			%	Millions of yen	%	Millions of yen	%	Yen
20,300			11.7	300		83.9	200	91.7	100	96.1	3.01
September 30, 2023
		△			△				△22.7		△37.0
Full Year	45,300		6.0	2,100		5.7	2,100	1,800	54.26
						△			△		△

(Note) Revisions to projections of consolidated financial results most recently announced: No

• Notes

1. Changes in significant subsidiaries during the three months ended June 30, 2023

(changes in specified subsidiaries resulting in the changes in scope of consolidation): No

New: ---	(Company Name:	)
Exclusion: ---	(Company Name:	)

1. Application of special accounting methods for preparing quarterly consolidated financial statements: Yes
2. Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

1)	Changes in accounting policies due to revisions to accounting standards and other regulations:		No
2)	Changes in accounting policies due to other reasons:					No
3)	Changes in accounting estimates:						No
4)	Restatement of prior period financial statements:					No
(4) Number of issued shares (common shares)
1) Total number of issued shares at the	As of June 30,			As of March 31,
	end of the period (including treasury	33,547,924	shares	33,541,124	shares
	2023:	2023:
	shares):
2)	Number of treasury shares at the end of	As of June 30,	456,917	shares	As of March 31,	459,279	shares
	the period:	2023:	2023:
3)	Average number of shares during the	Three months			Three months
	period (cumulative from the beginning	ended June 30,	33,087,297	shares	ended June 30,	33,245,408	shares
	of the fiscal year):	2023:			2022:
(Note)	The shares of the Company (84,600 shares in 1Q of the year ended March 31, 2024 and 87,100 shares in the year ended March 31,
	2023) held by Custody Bank of Japan, Ltd. (Trust Account) as the trust assets of the "Employee Stock Ownership Plan" are included

in the number of treasury shares at the end of the period.

The shares of the Company held by Custody Bank of Japan, Ltd. (Trust Account) are included in the treasury shares to be deducted in calculation of the average number of shares during the year (85,430 shares in 1Q of the year ended March 31, 2024 and 88,575 shares in 1Q of the year ended March 31, 2023).

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Notes regarding the proper use of projections of the results and other matters
  Projections of results and future developments are based on information available to the Company at the current time, as well as certain assumptions judged by the Company to be reasonable. Various factors could cause actual results to differ materially from these projections.

Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023

Contents of Attached Materials
1. Qualitative Information Concerning Current Quarterly Closing Announcement	2
(1)	Explanation About Operating Results	2
(2)	Explanation About Financial Position	3
(3)	Explanation About Future Forecast Information,
	Including Forecast of Consolidated Business Results	3
2. Quarterly Consolidated Financial Statements and Major Notes	4
(1)	Quarterly Consolidated Balance Sheet	4
(2)	Quarterly Consolidated Statements of Income
	and Quarterly Consolidated Statements of Comprehensive Income	6
	Quarterly Consolidated Statements of Income
	Consolidated Cumulative First Quarter	6
	Quarterly Consolidated Statement of Comprehensive Income
	Consolidated Cumulative First Quarter	7
(3)	Notes to Quarterly Consolidated Financial Statements	8
	(Notes on Going Concern Assumption)	8
	(Notes in the Case of Significant Changes in Shareholders' Equity)	8
	(Application of Special Accounting Methods for Preparing Quarterly Consolidated
	Financial Statements)	8
	(Additional Information)	8
	(Segment Information, etc.)	9
	(Significant Subsequent Events)	10

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Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023

1. Qualitative Information Concerning Current Quarterly Closing Announcement

(1) Explanation About 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 for the current consolidated cumulative first quarter showed net sales of 9,494 million yen (a decrease of 16.1% year-on-year) 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 year-on-year); an ordinary loss was 172 million yen (an ordinary profit of 1,177 million yen year-on-year); and a loss attributable to owners of parent was 201 million yen (a profit attributable to owners of parent of 1,167 million yen year-on-year).

Business results with respect to each segment are as follows.

(Electronic materials)

Net sales were 5,408 million yen (a decrease of 30.4% year-on-year) due to a decrease in sales of flexible printed circuit board materials and glass cloth for printed circuit board, while segment loss was 259 million yen (the segment profit of 715million yen year-on-year) caused by the impact from soaring energy costs and raw material prices in addition to decrease in sales.

(Industrial application structural materials)

Net sales were 2,653 million yen (an increase of 51.8% year-on-year) due to an increase in sales of water treatment FRP pressure vessels and honey-comb panel for aircraft, while the segment profit was 239 million yen (an increase of 193.9% year-on-year).

(Electric insulation materials)

Net sales were 583 million yen (a decrease of 6.8% year-on-year) due to a decrease in infrastructure-related sales, while the segment profit was 15 million yen (a decrease of 61.5% year-on-year).

(Display materials)

Net sales were 765 million yen (a decrease of 30.0% year-on-year) due to a decrease in sales of 3D-related materials and polarization control optical components, while the segment profit was 125 million yen (a decrease of 52.2% year-on-year).

(Other)

Net sales were 83 million yen (a decrease of 5.5% year-on-year).

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Arisawa Mfg. Co., Ltd. (5208) Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023

(2) Explanation About Financial Position

Total assets as of the end of the current consolidated cumulative first quarter were 64,995 million yen, a decrease of 2,663 million yen compared with the end of the previous fiscal year. This was largely due to an increase of 515 million yen in raw material and supplies, a decrease of 2,700 million yen in cash and deposits and a decrease of 496 million yen in merchandise and finished goods, respectively.

Total liabilities were 20,659 million yen, an increase of 107 million yen compared with the end of the previous fiscal year. This was largely due to an increase of 378 million yen in notes and accounts payable-trade, an increase of 252 million yen in provision for bonuses, and a decrease of 384 million yen in income taxes payable, respectively.

Total net assets were 44,336 million yen, a decrease of 2,770 million yen compared with the end of the previous fiscal year. This was largely due to a decrease of 3,187 million yen in retained earnings.

(3) Explanation About Future Forecast Information, Including Forecast of Consolidated Business Results

As for the forecast of business results for the cumulative second quarter and full-year of the fiscal year ending March 31, 2024, there is no change in the forecast of consolidated business results which was announced on May 12, 2023.

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