Arisawa Mfg : FY2023 Overview in Full year（520KB）

Securities Code 5208 https://www.arisawa.co.jp

FY2023 Overview in Full Year

Arisawa Mfg. Co., Ltd.

May 9th, 2024

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Contents

■ FY2023 Review by Consolidated Basis □ FY2024 Forecast by Consolidated Basis □ Appendix

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■ FY2023 Consolidated Performance

			(Million Yen)
	FY2022	FY2023	FY2023	vs.
	result	FCT	result	Prev.	vs. FCT
		(Feb. 8)		year
Sales	42,722	42,600	42,114	-1.4%	-1.1%
Operating Profit	2,228	1,250	1,483	-33.4%	18.6%
Operating Margin	5.2%	2.9%	3.5%
Ordinary Profit	2,717	1,250	1,488	-45.2%	19.0%
Net Profit	2,856	1.350	1,639	-42.6%	21.4%
Earnings per share(Yen)	86.46	40.77*	49.51	-42.7%	21.4%
Dividend (Yen)	90.00	Total 45.00	Total 60.00	--	--
Exchange rate (Yen / $)	131.62	140.67	140.67
average for the period	--	--
at end of period	133.53	142.00	151.41

*Calculated by the number of shares as of Dec. 31

Year-on-year

・Consolidated sales decreased by 608 million yen (1.4% YoY) due to decreases in those of electronic and display materials, despite an increase in those of industrial structural materials.

・Operating profit decreased by 33.4% due to a decrease in sales and an associated decrease in production.

・Ordinary profit decreased by 45.2% due to a decrease in foreign exchange gains.

・Net profit decreased by 42.6% due to a decrease in gain on sale of securities.

Versus the forecast as of Feb. 8

・Consolidated sales decreased by 486 million yen (1.1% vs. FCT) due to a decrease in those of all segments.

・Operating profit increased by 18.6% due to improved product mix.

・Ordinary profit increased by 19.0% due to the exchange rate being almost in line with the forecast. Net profit also increased by 21.4%.

FY2023 Review

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■ Balance Sheet

			(Million Yen)
	As of	As of	Change
	Mar. 2023	Mar. 2023
(Assets)
Current assets	47,420	47,097	-323	Accounts receivable increased by 3,333.
Cash and deposits decreased by 2,383.
Property, plant and equipment, and intangible assets	16,690	18,345	+1,655	Capital investment
Investment securities	2,545	2,327	-218	Sale of cross-shareholdings
Other assets	1,004	1,047	+43
Total assets	67,659	68,816	+1,157
(Liabilities)	16,277	19,423	+3,146	Short-term borrowings increased by 1,522.
Current liabilities
				Accounts payable increased by 1,801.
Non-current liabilities	4,275	3,147	-1,128	Long-term borrowings decreased by 757.
Total liabilities	20,552	22,570	+2,018
Shareholder's equity	44,826	42,867	-1,959	Retained earnings decreased by 2,040.
Other comprehensive income and share acquisition rights	2,281	3,379	+1,098	Foreign currency translation
adjustment increased by 967.
Total net assets	67,659	68,816	+1,157

FY2023 Review

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■ FY2023 Segment Comparison (vs. FY2022)

	Sales (Million Yen )		Segment Profit (Million Yen )
	FY2022	FY2023	change	FY2022	FY2023	change
	result	result	result	result
Electronic materials	26,554	25,105		-1,449	1,224	260	-964
FPC materials (Arisawa)	14,526	13,814		-712
FPC materials (ThinFlex)	8,565	7,852		-713
ICGC, Prepreg	1,495	1,741		246
Printed Wiring Board (Satosen)	1,958	1,698		-260
Industrial structural materials	9,128	10,602		1,474	1,315	1,476	161
Honey-comb panel	846	1,818		972
FRP pressure vessels for water	5,559	6,044		485
treatment
Others	2,723	2,740		17
Electrical insulating materials	2,582	2,533		-49	185	315	130
Display materials	4,163	3,535		-628	1,024	940	-84
Related materials, others	305	339		34	148	199	51
Total	42,722	42,114		-608	3,896	3,190	-706
		Corporate Expenses	-1,668	-1,707
		Operating Profit	2,228	1,483	-745

・Consolidated sales decreased by 608 million yen (1.4% YoY) due to decreases in those of electronic and display materials, despite an increase in those of industrial structural materials.

・Operating profit decreased by 33.4% YoY due to a decrease in sales and production in electronic materials resulted from reducing inventory in response to a decrease in demand.

・The sales of electronic materials decreased by 5.4% YoY due to a continued stagnant demandfor semiconductors used in PCs and smartphones.

・ The sales of industrial structural materials increased by 16.1% YoY due to strong demand for the FRP vessels for water treatment recovery trend in the aircraft industry.

・ The sales of display materials decreased by 15.1% YoY.

FY2023 Review

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■ FY2023 Segment Comparison (vs. FCT as of Feb. 8)

	Sales (Million Yen )		Segment Profit (Million Yen )
	FY2022	FY2023		vs.	FY2022	FY2023	vs.
	FCT		Prev.	FCT	Prev.
	result		result
	(Feb. 8)		year	(Feb. 8)	year
Electronic materials	25,300	25,105		-195	250	260	10
FPC materials (Arisawa)	13,800	13,814		14
FPC materials (ThinFlex)	8,000	7,852		-148
ICGC, Prepreg	1,800	1,741		-59
Printed Wiring Board (Satosen)	1,700	1,698		-2
Industrial structural materials	10,800	10,602		-198	1,500	1,476	-24
Honey-comb panel	1,850	1,818		-32
FRP pressure vessels for water	6,100	6,044		-56
treatment
Others	2,850	2,740		-110
Electrical insulating materials	2,600	2,533		-67	250	315	65
Display materials	3,600	3,535		-65	750	940	190
Related materials, others	300	339		39	200	199	-1
Total	42,600	42,114		-486	2,950	3,190	240
					-1,700	-1,707
		Operating Profit	1,250	1,483	233

・Sales decreased by 486 million yen (1.1% vs. FCT) which was slightly below the forecast.

・Operating profit increased by 233 million yen (18.7% vs. FCT) due to improved product mix.

・In electronics material field, the sales of FPC materials (ThinFlex) did not achieve the forecast due to the slow recovery of Chinese market.

・In industrial structural materials, the sales of each products and ordinary profit were almost in line with the forecast.

・Operating profits in display materials exceeded the forecast due to improved product mix.

FY2023 Review

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■ Overview in FY2023 - Electronic materials

Sales of electronic materials

Printed Wiring Board (Satosen)

ICGC, Prepreg

FPC materials (ThinFlex)

FPC materials (Arisawa)

Segment Profit

(Million Yen)

Market

・Stagnant demand for semiconductors used in PCs and smartphones is continued, which became apparent

from the second half of FY2022. Although there are signs of bottoming out in recent days, it has not yet come to a full-fledged recovery.

Performance year-on-year

26,544

1,958

1,495

8,565

14,526

1,224

FY2022

25,300	25,105
1,700	1,698
1,800	1,741
8,000	7,852
13,800	13,814
250	260

FY2023 FY2023

FCT(Feb. 8)

・Sales decreased by 1,439 million yen (5.4%) due to decreases in those of FPC materials, printed wiring boards, and ICGC and prepreg.

・Sales of FPC materials (Arisawa) decreased by 4.9% due to a decrease in demand for semiconductor applications, etc.

・Sales of FPC materials (ThinFlex) decreased by 8.3% due to a decrease in demand for Chinese smartphones.

・Sales of ICGC and prepreg increased by 16.5%. ・Sales of Printed wiring board decreased by 13.3%.

・Segment profit also decreased by 964 million yen due to a decrease in sales and production resulted from reducing inventory in response to a decrease in demand.

Performance versus forecast as of Feb. 8

・Sales decreased by 195 million yen (0.8% vs. FCT) which was almost in line with forecast despite continued stagnant demand from the second half of 2022.

・ Segment profit increased by 10million yen.

FY2023 Review

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■ Overview in FY2023 - Industrial structural materials

Sales of industrial structural materials

Others

In-vehicle materials

FRP pressure vessels for water treatment

Honey-comb panel

Segment Profit

(Million Yen)

	10,800	10,602
9,128	850	815
781	2,000	1,925
1,942
	6,100	6,044
5,559
1,315	1,500	1,476
846	1,850	1,818
FY2022	FY2023	FY2023
	FCT(Feb. 8)

Market

・In addition to the strong performance of water treatment materials for drinking and industrial water etc., due to the increase in global demand for water, the aircraft industry has begun to recover with economic normalization after the COVID-19 pandemic, and the production of aircraft materials has been on an increasing trend.

Also, the development of new energy sources to reduce environmental impact is also becoming more active, and the number of development projects is increasing for the company.

Performance year-on-year

・ Sales of honey-comb panels for aircraft increased by 115.0％.

・ Sales of FRP pressure vessel for water purification continued to be strong from the previous FY, with sales increasing by 8.7% due to production capacity expansion, foreign exchange impact, etc.

・ Sales of in-vehicle materials was the same level as the previous period term due to the converged production adjustment (decreased by 0.9%).

・Segment profit increased by 161 million yen due to an increase in sales of honey comb panels.

Performance versus forecast as of Feb. 8

・Both the sales and segment profit were almost as expected.

FY2023 Review

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■ Overview in FY2023 - Display materials

Sales of display materials

Others

Polarization control optical components 3D-related materials

Segment Profit

(Million Yen)

4,163

351	3,600	3,535
	500	511
2,230
	1,600	1,638
1024	750	940
1,582
1,500	1,386
FY2022	FY2023	FY2023
	FCT(Feb. 8)

Performance year-on-year

・Sales of 3D-related materials decreased by 12.4%.

・Sales of polarization control optical components decreased by 26.5％. ・Segment profit decreased by 84 million yen due to decrease in sales.

Performance versus forecast as of Feb. 8

・Sales were almost as expected. Segment profit increased due to improved product mix.

FY2023 Review

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Contents

□ FY2023 Review by Consolidated Basis ■ FY2024 Forecast by Consolidated Basis □ Appendix

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