Arisawa Mfg : Securities Report for the 75th Term (from April 1, 2022 to March 31, 2023) （2.03MB）

FINANCIAL REPORT

(Report under Article 24, paragraph 1 of the Financial Instruments and Exchange Act)

Business Year from April 1, 2022 to March 31, 2023

(The 75th Term)

(TRANSLATION)

ARISAWA MFG. CO., LTD.

E01152

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.	History	3
3.	Description of Business	5
4.	Status of Subsidiaries and Affiliated Companies	7
5.	Status of Employees	9
II. Status of Business	11
1.	Management Policy, Management Environment and Tasks to be Addressed	11
2.	Views and Initiatives on Sustainability	17
3.	Business Risks, etc	17
4.	Analyses of Consolidated Financial Position, Business Results
	and Cash Flows by the Corporate Managers	18
5.	Agreements with Managerial Implications, etc	24
6.	Research and Development Activities	24
III. Status of Facilities	26
1.	Outline of Capital Investment	26
2.	Status of Major Facilities	26
3.	Plans for Installation and Retirement, etc. of Facilities	28
IV. Status of the Submitting Company	29
1.	Status of Shares, etc	29
	(1) Total Number of Shares, etc	29
	(2)	Status of Stock Acquisition Rights, etc	30
	(3)	Status of Exercise of Moving Strike Convertible Bonds, etc	31
	(4)	Changes in the Number of Shares Issued and Outstanding, Share Capital, etc	32
	(5)	Status of Shareholder Categories	33
	(6)	Status of Major Shareholders	34
	(7)	Status of Voting Rights	36
	(8)	Director and Employee Stock Ownership Plan	36
2.	Status of Acquisition of Treasury Shares, etc	38
3.	Dividend Policy	39
4.	Status of Corporate Governance, etc	40
	(1)	Outline of Corporate Governance	40
	(2)	Status of Directors and Officers	46
	(3)	Status of Audit	51
	(4)	Remuneration, etc. of Directors and Corporate Auditors	53
	(5)	Status of Shareholding	55
V. Status of Accounting	62
1.	Consolidated Financial Statements, etc	63
	(1)	Consolidated Financial Statements	63
	(2)	Other	111
2.	Financial Statements, etc	112
	(1)	Financial Statements	112
	(2)	Details of Major Assets and Liabilities	127
	(3)	Other	127
VI. Outline of Share Handling of the Submitting Company	127
VII. Reference Information on the Submitting Company	128
	1. Information on Parent Company, etc. of Submitting Company	128
	2. Other Reference Information	128
PART II. INFORMATION ON GUARANTY COMPANIES, ETC.
OF THE SUBMITTING COMPANY	129
[Independent Auditors' Report]

Cover Page

Document to be filed:

Statutory basis:

Filing to:

Date of filing:

Business year:

Company name (Japanese):

Company name (English):

Name and title of representative:

Location of head office:

Telephone number:

Contact person:

Place of contact:

Telephone number:

Contact person:

Places where copies of this Financial Report are made available for public inspection:

Financial Report

Article 24, paragraph 1 of the Financial Instruments and Exchange Act

Director-General of the Kanto Local Finance Bureau

June 30, 2023

The 75th Term (From April 1, 2022 to March 31, 2023)

Kabushiki-Kaisha Arisawa Seisakusho

Arisawa Mfg. Co., Ltd.

Yuta Arisawa, President and Representative Director

5-5,Minami-honcho1-chome,Joetsu-shi, Niigata

[phone]

Shuichi Kubota, Operating Officer supervising Corporate Strategy Department

5-5,Minami-honcho1-chome,Joetsu-shi, Niigata

[phone]

Shuichi Kubota, Operating Officer supervising Corporate Strategy Department

Arisawa Mfg. Co., Ltd., Tokyo Branch Office

(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.

(1) Consolidated Management Indicators, etc.

	Term		71st term	72nd term	73rd term	74th term	75th term
Closing month	March 2019	March 2020	March 2021	March 2022	March 2023
Net sales	(Millions of yen)	44,728	45,970	46,439	43,089	42,722
Ordinary profit or loss (Δ)	4,297	2,783	3,578	4,204	2,717
	(Millions of yen)
Profit or loss (Δ) attributable
to owners of parent		2,861	212	2,160	3,911	2,856
	(Millions of yen)
Comprehensive income	2,200	△117	3,808	4,530	2,578
	(Millions of yen)
Net assets	(Millions of yen)	53,462	49,018	47,444	47,965	47,107
Total assets		73,096	71,709	67,257	68,689	67,659
	(Millions of yen)
Net assets per share	(Yen)	1,397.78	1,387.76	1,388.50	1,434.46	1,422.43
Basic earnings or loss (Δ) per	79.15	6.14	64.94	117.40	86.46
share		(Yen)
Diluted earnings per share	78.70	6.12	64.84	117.32	86.24
		(Yen)
Equity ratio	(%)	69.3	64.3	68.8	69.6	69.5
Return on equity	(%)	5.7	0.4	4.7	8.3	6.0
Price earnings ratio	(Times)	10.0	130.7	15.4	8.2	14.5
Cash flows from operating	2,893	4,837	610	5,901	3,471
activities	(Millions of yen)
Cash flows from investing	△3,304	6,580	1,567	2,869	508
activities	(Millions of yen)
Cash flows from financing	△576	△4,431	△5,703	△4,042	△2,572
activities	(Millions of yen)
Cash and cash equivalents at
the end of period		7,718	14,725	11,488	16,893	18,535
	(Millions of yen)
Number of employees
(Parenthesized figures	1,432	1,454	1,433	1,425	1,458
indicate the average number
(313)	(294)	(290)	(316)	(282)
of temporary employees not
included in the total)

Note: "Accounting Standard for Revenue Recognition" (Accounting Standards Board of Japan Statement No.29, March 31, 2020), etc. have been applied from the beginning of the 74th term. Principal Management Indicators, etc. from the 74th term onward are shown after application of the said Accounting Standard, etc.

- 1 -

(2) Management Indicators, etc. of the Submitting Company

	Term			71st term	72nd term	73rd term	74th term	75th term
Closing month		March 2019	March 2020	March 2021	March 2022	March 2023
Net sales	(Millions of yen)	29,269	31,635	31,668	26,648	25,752
Ordinary profit or loss (Δ)	2,602	2,365	1,932	2,852	2,365
	(Millions of yen)
Profit or loss (Δ)			1,947	6,792	1,396	2,348	2,673
	(Millions of yen)
Share capital	(Millions of yen)	7,541	7,594	7,623	7,643	7,847
Number of shares issued and
outstanding				36,226	36,381	34,470	33,614	33,541
(Thousands of shares)
Net assets	(Millions of yen)	36,571	38,931	40,484	41,016	39,573
Total assets	(Millions of yen)	45,688	51,535	49,859	50,225	49,365
Net assets per share		(Yen)	1,005.76	1,166.03	1,208.98	1,226.75	1,194.67
Dividend per share		(Yen)
(Parenthesized figures indicate	30.00	30.00	39.00	95.00	90.00
the amount of interim dividend	(－)	(－)	(－)	(5.00)	(－)
per share included in the total)
Basic earnings or loss (Δ)	53.87	195.86	41.98	70.49	80.94
per share			(Yen)
Diluted earnings per share (Yen)	53.56	195.28	41.91	70.44	80.73
Equity ratio			(%)	79.7	75.2	80.8	81.4	80.1
Return on equity		(%)	5.4	18.1	3.5	5.8	6.7
Price earnings ratio	(Times)	14.7	4.1	23.8	13.6	15.5
Dividend payout ratio		(%)	55.7	15.3	92.9	134.8	111.2
Number of employees
(Parenthesized figures indicate	602	614	606	599	599
the average number of temporary
(119)	(134)	(99)	(90)	(104)
employees not included in the
total)
Shareholders' gross yield	(%)
(Comparative Indicator:		83.5	87.4	111.5	116.7	156.0
dividend-included TOPIX	(95.0)	(85.9)	(122.1)	(124.6)	(131.8)
(Tokyo Stock Price Index))
Highest share price		(Yen)	1,350	1,148	1,118	1,072	1,438
Lowest share price		(Yen)	655	680	738	844	885

Note: 1. "Highest share price" and "Lowest share price" are recorded in Tokyo Stock Exchange (First section).

2. "Accounting Standard for Revenue Recognition" (Accounting Standards Board of Japan Statement No.29, March 31, 2020), etc. have been applied from the beginning of the 74th term. Principal Management Indicators, etc. from the 74th term onward are shown after application of the said Accounting Standard, etc.

- 2 -