March 12, 2018

Financial Review for the Year
Ended January 31, 2018
Company name:

RYOYO ELECTRO CORPORATION
Headquarters address:
12-22 Tsukiji 1-chome, Chuo-ku, Tokyo 104-8408 Japan
URL:
http://www.ryoyo.co.jp
Stock exchange listing:Tokyo Stock Exchange 1st Section
Code number:
8068
Company representative:
Takayoshi Oouchi, President
Inquiries:
Kiyoshi Waki, Director and Senior Executive Officer
Tel: +81-3-3543-7710
E-mail: irmanager@ryoyo.co.jp
Due date of annual shareholders meeting: April 26, 2018
Due date of starting delivery of dividends: April 27, 2018
Due date of submitting of financial statement: April 26, 2018
Supplementary materials for the quarterly financial results: Yes
Investor conference for the quarterly financial results（for security analysts and institutional investors）: Yes
Note: Figures are rounded down to the nearest million yen.
１．Financial highlights for the year ended January 31, 2018（2/1/2017-1/31/2018）（１）Consolidated operating results
Note: Percentages indicated changes from the same period of previous year.
Net sales

Operating income

Millions of yen％

Millions of yen

Year ended 1/31/18

92,234(6.3)

Year ended 1/31/17

98,417(12.4)

Ordinary income％

Millions of yen％

251(81.7)

432(72.0)

1,373

56.6

1,545

41.0

Note: Comprehensive income
Year ended 1/31/18:
Year ended 1/31/17:

772

1,998 million yen

Profitattributable toowners of parent
Millions of yen

million yen％

Net income
per share(-61.3%)
(

－%)

Fully
diluted
net income
per share

Yen

Return on
equityOrdinary
income tototal
assetsOperatingincome tonet sales

Yen

％

％

％

Year ended 1/31/18

212(74.1)

8.68

8.65

0.3

0.6

0.3

Year ended 1/31/17

822

10.7

33.54

33.40

1.3

2.0

1.4

(Reference) Investment profit/loss on equity method:Year ended 1/31/18:－ million yen

Year ended 1/31/17:－ million yen

1（２）Consolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen％

Yen

As of 1/31/18

78,11164,40482.4

2,625.66

As of 1/31/17

77,97364,85983.1

2,644.10

Equity ratio

Net assets per share(Reference) Equity
Year ended 1/31/18:

64,344 million yen

Year ended 1/31/17:

64,799 million yen（３）Consolidated cash flows
Cash flows fromoperatingactivities

Cash flows frominvestingactivities

Cash flows fromfinancing
activities

Cash and cash
equivalents at theend of the period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Year ended 1/31/18

3,074(7,236)(1,224)

13,893

Year ended 1/31/17

6,675

198

(1,058)19,343

２．Dividends
Cash dividends per shareSixmonths
ended

Year
ended

Yen

(Base date)

Total

Yen

Yen

Total
dividends
Paid(Full Year)

Payoutratio

Millions of yen

Dividends onequity％％Year ended 1/31/17

20.00

20.00

40.00

980

119.2

1.5

Year ended 1/31/18

30.00

30.00

60.00

1,470

691.0

2.3

Year ending 1/31/19 (Estimate)

30.00

30.00

60.00

―

183.8

―

３．Financial forecast for the year ending January 31,2019（2/1/2018-1/31/2019）
Note: Percentages indicated changes from the same period of previous year.
Net sales
Millions of yen％

OperatingincomeOrdinary income

Profitattributable toowners of parent

Millions of yen ％Millions of yen ％Millions of yen％

Net income per
share
Yen

Six months ending
7/31/18

47,0002.1

500(27.5)

600(27.3)

400(30.4)

16.32

Year ending
1/31/19

93,000

0.8

1,000

297.7

1,200

177.5

800

276.0

32.64

2

４．Others（1）Important changes in subsidiaries(Change on specific subsidiaries with changes in scope of consolidation): None
Newly added: －Excluded: －（2）Changes in principles, procedures and method of presentation for consolidated financial statements① Changes in accounting policies: None
② Other changes: None
③ Change in accounting estimate: None
④ Restatement of revisions: None
（3）Number of shares outstanding (common stock)① Number of shares of common stock issued as of:(Including treasury stock)
January 31,2018: 26,800,000 shares
January 31,2017: 27,600,000 shares② Number of shares of treasury stock:
January 31,2018: 2,293,760 shares
January 31,2017: 3,092,672 shares③ Average number of shares outstanding as of:January 31,2018: 24,506,765 shares
January 31,2017: 24,526,133 shares

3

(Reference) Non-consolidated financial review
1.Financial highlights for the year ended January 31,2018 (2/1/2017-1/31/2018)（１）Operating results
Note: Percentages indicated changes from the same period of previous year.
Net sales
Millions of yen

Operating income

Ordinary income％

Millions of yen％

Millions of yen％

Year ended 1/31/18

83,744(5.0)

106(90.8)

247(81.4)

Year ended 1/31/17

88,187(11.3)

1,163

71.9

1,326

48.8

Net income
Millions of yen

Fully diluted
net income per share

Net income per share
％

Yen

Yen

Year ended 1/31/18

65(89.9)

2.66

2.64

Year ended 1/31/17

645

10.3

26.33

26.22

（２）Financial position
Total assets

Net assets

Millions of yen

Millions of yen

Equity ratio

Net assets per
share

％

Yen

As of 1/31/18

72,32759,61882.3

2,430.33

As of 1/31/17

72,74260,21382.7

2,454.51(Reference) Equity
Year ended 1/31/18:

59,558 million yen

Year ended 1/31/17:

60,153 million yen

Indication regarding the implementation status of auditing procedure
This Financial Review is not subject to audit procedure under the Financial Instruments and Exchange
Act.
Caution on estimates for the year ending January 31,2019
The above forecast was made based on the information available as of the date of this release. Actual
results could significantly differ from the above forecast due to a variety of factors.

※

This financial review is only the translation of Japanese version.

4

Consolidated Balance Sheets（Millions of yen）
As of

As of

January 31, 2017

January 31, 2018

AmountAmount（ Assets）
Current Assets
Cash and deposits

19,517

14,040Notes and accounts
receivable-trade29,291

25,912

Securities

1,000

649

Merchandise and finished goods

10,582

10,857

291

497

1,247

1,378

(5)

(2)

61,92553,332Tools, furniture and fixtures, net

92

81

Land

5

5

Other, net

6376

Total property, plant and equipment

161

163

Intangible assets

630

454

Investment securities

13,36821,930Net defined benefit asset

1,216

1,458

Other

716

1,152

Allowance for doubtful accounts

(44)

(381)

15,25624,160Total noncurrent assets

16,04824,778

Total assets

77,973

78,111

Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment

Investments and other assets

Total investments and other assets

5Consolidated Balance Sheets（Millions of yen）
As of

As of

January 31, 2017

January 31, 2018

AmountAmount（ Liabilities）
Current liabilities

9,633

9,653

Income taxes payable

205

419

Accrued consumption taxes

25

87

Provision for bonuses

186

205

Other

910

716

10,961

11,082

778

790

1,162

1,429

211

405

2,153

2,624

13,114

13,706

Capital stock

13,672

13,672

Capital surplus

13,336

13,336

Retained earnings

38,24436,287

Treasury stock(3,649)(2,707)

Total shareholders’ equity

61,60260,588

2,446

3,013

Deferred gains or losses on hedges

(0)

(0)

Foreign currency translation adjustment

528

430

Remeasurements of defined benefit plans

222

313

3,197

3,756

Subscription rights to shares

59

59

Total net assets

64,85964,404

Total liabilities and net assets

77,973

78,111

Notes and accounts payable-trade

Total current liabilities
Noncurrent liabilities
Net defined benefit liability
Deferred tax liabilities
Other
Total noncurrent liabilities
Total liabilities（Net assets）
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on
available-for-sale securities

Total accumulated other comprehensive
income6

Consolidated Statements of Income and Consolidated Comprehensive Statements of Income(Consolidated Statement of Income)（Millions of yen）
Year ended
January 31, 2017

Year ended
January 31, 2018

AmountAmountNet sales

98,417

92,234

Cost of sales

90,31884,643Gross profit

8,099

7,591

Selling, general and administrative expenses
Provision of allowance for doubtful accounts

7229

Salaries and bonuses

2,750

2,900

Provision for bonuses

187

205

Retirement benefit expenses

136

119

Rent expenses

334

345

Depreciation

249

224

Other

3,059

3,314

Total selling, general and administrative expenses

6,726

7,339

1,373

251

Interest income

65

73

Dividend income

111

157

Purchase discounts

108

Gain on valuation of investment securities

66－

Gain on investments in partnership

71

55

Other

28

19

Total non-operating income

353

313

Operating income
Non-operating income

Non-operating expenses
Sales discounts

4

7

Loss on redemption of securities

50－

Foreign exchange losses

108

99

Commission fee

11

9Loss on abandonment of noncurrent assets

0

12

Other

5

3

180

132

1,545

432

Gain on sales of investment securities

105

242

Total extraordinary income

105

242

Loss on sales of investment securities

100

33

Loss on valuation of investment securities

104

28

Loss on valuation of shares of subsidiaries and associates

99－

Loss on liquidation of subsidiaries and associates

－

124

Other

4

－

309

186

1,341

488

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary losses

Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current

396

507

Income taxes-deferred

122

(231)

Total income taxes

519

275

Profit822

212

Profit attributable to owners of parent

822

212

7

Consolidated Statements of Income and Consolidated Comprehensive Statements of Income(Consolidated Comprehensive Statement of Income)

Profit attributable to owners of parent（Millions of yen）
Year ended
January 31, 2017

Year ended
January 31, 2018

AmountAmount

822

212

1,360
(9)
(214)
38
1,175
1,998

567
(0)
(98)
91
559
772

1,998

772

－

－

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income(Details)
Comprehensive income attributable to ownersof the parent
Comprehensive income attributable tonon-controlling interests

8Consolidated Statements of Changes in Net Assets
Previous period ( From

February 1, 2016 to January 31, 2017 )（Millions of yen）

Shareholders’ equity

Capital stock

Balance at the beginningof current period
Changes of items during
the period

13,672

CapitalRetained

Treasury

surplusearnings

stock

13,33638,997

Total
shareholders’equity（4,178）61,827

Dividends from surplus

（859）

（859）

Profit attributableto owners of parent
Purchase of treasury
stock
Retirement oftreasury stock
Exercise subscription
rights to shares
Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period

822

822
(200)

（200）

(703)

703

－

(13)

25

12
－

－

－

(753)

13,672

13,33638,244528（3,649）(224)
61,602

Accumulated other comprehensive income
Valuationdifference on
available-for-sale
securities
Balance at the beginningof current period
Changes of items during
the period

Deferred
gains orlosses on
hedge

1,085

9

Subscription

Foreigncurrencytranslation
adjustment

Remesurementsof defined
benefit plans

743

183

rights to

Total net

sharesassets72

63,921Dividends from surplus（859）

Profit attributableto owners of parent
Purchase of treasury
stock
Retirement oftreasury stock
Exercise subscription
rights to shares
Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period

822
（200）
－
12
1,360

(9)

(214)

38

(12)

1,162

1,360

(9)

(214)

38

(12)

937

2,446

(0)

528

222

59

64,8599

Consolidated Statements of Changes in Net Assets
Current period ( From

February 1, 2017 to January 31, 2018 )（Millions of yen）

Shareholders’ equity

Capital stock

Balance at the beginningof current period
Changes of items during
the period

13,672

CapitalRetained

Treasury

surplusearnings

stock

13,33638,244

Total
shareholders’equity（3,649）61,602

Dividends from surplus（1,225）（1,225）

Profit attributableto owners of parent
Purchase of treasury
stock
Disposal of treasury
stock
Retirement oftreasury stock
Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period

212

212
(2)

（2）

0

0

0
(944)

944

－
－

－

－

(1,956)942(1,014)

13,672

13,33636,287（2,707）60,588

Accumulated other comprehensive income
Valuationdifference on
available-for-sale
securities
Balance at the beginningof current period
Changes of items during
the period

2,446

Deferred
gains orlosses on
hedge
(0)

Subscription

Foreigncurrencytranslation
adjustment

Remesurementsof defined
benefit plans

528

222

rights to

Total net

sharesassets59

64,859Dividends from surplus（1,225）

Profit attributableto owners of parent
Purchase of treasury
stock
Disposal of treasury
stock
Retirement oftreasury stock
Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period

212
（2）
0
－
567

(0)

(98)

91

－

559

567

(0)

(98)

91

－

(454)

3,013

(0)

430

313

59

64,40410

Consolidated Statements of Cash Flows（Millions of yen）
Year ended

Year ended

January 31, 2017

January 31, 2018

AmountAmountI. Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Loss (gain) on sales and retirement of noncurrent assets

1,341

488

249

226

1

12

Loss (gain) on investments in partnership

(71)

(55)

Foreign exchange losses (gains)

(10)

(17)

Increase (decrease) in provision

66

253

Increase (decrease) in net defined benefit liability

(24)

0

Interest and dividends income

(176)

(230)

Loss (gain) on redemption of securities

50－

Loss (gain) on sales of investment securities

(4)

(208)

Loss (gain) on valuation of investment securities

38

28

Loss on valuation of shares of subsidiaries and associates

99－

Loss on liquidation of subsidiaries and associates

－

124

3,879

3,308

Decrease (increase) in inventories

486

(291)

Increase (decrease) in notes and accounts payable-trade

381

92

Decrease (Increase) in notes and accounts receivable-trade

Increase (decrease) in accrued consumption taxes

1962

Other, net

569

(604)

Subtotal

6,894

3,189

Interest and dividends income received

190

231

Income taxes refund（paid）

(409)

(346)

6,675

3,074

Payments into time deposits(1,180)(1,028)Proceeds from withdrawal of time deposits

1,015

1,050

Net cash provided by (used in) operating activities
Ⅱ. Cash flows from investing activities

Purchase of securities

－

(552)

Proceeds from redemption of securities

1,470

2,000

Purchase of property, plant and equipment and intangible assets
Proceeds from sales of property, plant and equipment and intangible assets

(193)

(81)

0

0

Purchase of investment securities(3,149)(12,876)

Proceeds from sales of investment securities

1,801

4,080

Proceeds from redemption of investment securities

300－

Payments of loans receivable from subsidiaries and associates

(33)

(72)

Collection of loans receivable from subsidiaries and affiliates－

99

Proceeds from distribution of investment in partnerships

169

153

Purchase of insurance funds

(3)

(39)

Other, net

1

28

198

(7,236)

Cash dividends paid

(857)

(1,222)

Purchase of treasury stock

(201)

(2)

Net cash provided by (used in) investing activities
Ⅲ. Cash flows from financing activities

Proceeds from sales of treasury stock
Net cash provided by (used in) financing activities
Ⅳ. Effect of exchange rate changes on cash and cash equivalents－

0(1,058)(1,224)(8)(62)

Ⅴ. Net increase (decrease) in cash and cash equivalents

5,807(5,449)Ⅵ. Cash and cash equivalents at beginning of period

13,535

19,343

Ⅶ. Cash and cash equivalents at end of period

19,343

13,89311

Consolidated Sales by Product(Millions of yen)
Year ended

Year ended

January 31, 2017

January 31, 2018

Increase(Decrease)

AmountComposition(%)

AmountComposition(%)

Semiconductors/Devices

58,40959.3

50,92555.2(7,484)

ICT/Solutions

40,00840.7

41,309

44.8

1,301

Total

98,417100.0

92,234100.0(6,183)12